Meadow Lake Bioenergy Center

MLTC RESOURCE DEVELOPMENT LP

Ben Voss, P.Eng – President & Chief Executive OfficerT. 306 242 0545E. ben.voss@mltcii.com

INTRODUCTIONMLTC Resource Development LP (“MLTC RDI”) is leading the development of a biomass powergeneration project in Saskatchewan.

MLTC RDI has executed a 36 MW power purchase agreement (25yr) with SaskPower (June’12)

MLTC RDI is a founding partner in the First Nations Power Authority (FNPA)

MLTC RDI, as project owner, provides development funding, fuel, site, licensing and permitting.

EPC negotiations have been completed to secure a firm fixed price for the cost to build the projectwith strong performance features

MTLC RDI has selected a partner (confidential) with extensive experience operating biomass powerplants in North America

MLBC has advanced extensive investments for LNTP and EPC negotiations, environmental permitfinalization and site preparation

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LOCATION

The Meadow Lake Bioenergy Centre (MLBC) is a 36 MWbiomass power plant that will be located adjacent to theNorSask sawmill, east of Meadow Lake.

Proximity to Norsask sawmill, fibre supply, utilities andtransmission will facilitate the efficient construction andoperation of MLBC.

PROJECT TEAMMLTC RDI has assembled an “A-team” to develop and build the project

MLTC RDI controls the project and has taken a leadership role as it has evolved.

Key milestone was the PPA, which was signed in June ‘12

Team includes subject matter experts and experienced power industry professionals, leadingprofessional firms

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FIBRE SUPPLYProject fuel requirements will be met through a long term fixed price contract held exclsively by MLTC tosupply all fuel needs for the life of the project

MLTC RDI believes it has one of the most unique and low-risk biomass fuel plans in North America

Mistik and Sakaw FMA areas offer substantial opportunity to access “waste” biomass in the form of millresidues, roadside debris and other biomass suitable for energy.

The region offers access to several diversified forestry mills, legacy biomass sites, and a wide range ofother forest biomass resources.

A key pillar in the MLTC RDI fuel strategy is the substantial forestry experience, political influence andoperating history in the region.

MLTC RDI looks at fuel supply obligations over the entire life of the project and considers all risk scenariosto always provide an uninterrupted, reliable and consistent biomass fuel supply.

Even in the worst case scenario, averaged over the entire project life, fuel supply economics are viable.

NorSask is a key pillar of the fuel supply plan and has expanded recently to operating levels which providethe vast majority of the fuel for the project in the form of non-lumber products (hog fuel, other)

FNPA COLLABORATIONPower development is a long-term, highly intensive process

FNPA and MLTC have been strong partners, helping each other and sharing knowledge

Confidential details regarding the development process for MLBC have been shared with FNPA to supportdeveloping future projects for other First Nations

FNPA’s team supports project negotiations with SaskPower and is involved in the partner selection processand regulatory applications

Win-Win Scenario

- MLTC gains the support and expertise of FNPA to help the MLBC project be successful- FNPA accesses knowledge and experience from the MLBC project to develop pathways for future

projects

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PERMITTING AND ENVIRONMENTAL• Site owned by MLTC RDI, is being subdivided and conveyed to project (MLBC LP)• Site reconnaissance complete along with environmental and geotechnical review• Project description document completed and submitted to MOE• Interconnect logistics and implications, technical engagement with SaskPower

underway with no indications of concerns for interconnection or site• Public and First Nations consultation: Led by MLTC

• MLTC has a built-in model for consultation and Duty to Consult through its unique ownership model

• A project of this magnitude requires evidence of community consultation to obtain approval from MOE & SaskPower

• Strong accommodation benefits for First Nations through ownership• Project design ensures net improvement to the Environment through elimination of

incineration and burning of biomass from mills and harvesting• Total utilization ensures a renewable, sustainable system

TECHNICAL DESIGN - OVERVIEW36 MW (net) facility template represents a multi-year evolution of designs:• Previous evaluations included 5, 10, 20, 30 and 33 MW designs• Technologies included gasifiers, step/rotating grate boiler, stoker boiler and BFB/CFB• 36 MW is arguably the “sweet spot” when considering availability of fiber, haul radius, andtechnical economies of scale in Western Canada•Technology review indicates economic upside to 40 MW to maximize PPAPROVEN technology:

– Comprehensive evaluation of North American andEuropean boilers, used widely in North America(Wellons , B&W, Indeck, EPI, FSE, Andritz and Metso)

– Hundreds of steam turbines in operation in Canada– Detailed engineering evaluations of various boiler vendors

36 MW general arrangement includes, conceptually:• Biomass boiler, 1200 psi, 950°F (base case)• Electrostatic precipitator to 90 mg/m3 (guaranteed Not To Exceed)• Steam turbine/generator, 40 to 44 MW gross, ~36 to 39.6 MW net• Fuel supply building for up to 40,000 m3 of storage• Air cooled condenser for increased efficiency• Water treatment package• Estimated 94%-98% availability• ~200,000 bone dry tons equivalent (BDT) per year fuel consumption (25 BDt/hour)• Small footprint power island (< 10 acres)

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EPC SELECTIONMLTC has selected an experienced EPC provider to offer a fixed price turnkey solutionKey terms and requirements for a proposed EPC contract includes:

• full turnkey wrap contract• progress payment based • customary limits of liability• customary liquidated damage provisions for performance, must perform within 3% for

output and heat rate, damages linked to NPV impact• customary liquidated damage and bonus provisions for delay, damages tied to NPV

impact• total liquidated damages cap of over 20% of contract value• Substantial Completion provisions linked to PPA and Lien Act provisions• limit of liability of 100% of contract value backed by performance bond and vendor

balance sheet guarantee

EPC Contractor has agreed to enable MLTC to manage local procurement subcontracts and to facilitate a project labor agreement to maximize local labor as well a First Nations / Aboriginal employment during construction

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OPERATIONS & MAINTENANCE (O&M) SELECTIONMLTC has selected an experienced utility company as partner to participate in ownership as well as provide O&M capabilities to project

Operations will require a staff of up to 25 employees on site for 24-7 operation

Several maintenance sub-contracts will be setup for the plant

- Ash sales and distribution

- Boiler & steam systems maintenance

- Turbine maintenance

- Emissions systems maintenance

- Electrical and controls maintenance

- Wood / fuel yard

Local companies will be offered opportunities to develop specialized expertise

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MLTC AS FOUNDER

• MLTC RDI’s goal is to maximize its economic interest in the MLBC over the project life.• MLTC RDI, as project founder and manager, provides development funding, fuel, site,

licensing and permitting• MLTC RDI, as owner, provides ongoing management of administration, accounting and

oversight of EPC and O&M Contractors in addition to all local interfaces and relationships together with its partner

• MLTC RDI to provide initial working capital funding for fuel inventory

• Power project triggers major new business plans for MLTC group of companies to de-risk Power project:• Expansion of Norsask to maintain low cost producer position• Expansion of trucking & forestry division for efficiencies in harvesting and transport

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TIMELINE AND MILESTONES

With the PPA finalized, all major contracts underway, project timeline anticipates project start by July 2014 and COD by Nov 2016

Procurement of construction sub-contracts will begin in summer 2014

Major labor recruitment required for 2015/16

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APPENDIX:

• Background on MLTC

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MLTC RESOURCE DEVELOPMENT LIMITEDPARTNERSHIPMLTC Resource Development has a vision to be one of the largest First Nations owned developers, leading projects and creating long-term value

We provide development solutions for major industrial projects, infrastructure and regional natural resource activities

MLTC works with all levels of government (Federal, Provincial, Municipal) to develop, plan and execute projects (Government Solution Provider)• Recent achievements such as the First Nations Power Authority, the Meadow Lake

Bioenergy Center PPA, and forestry diversification

Saskatchewan is a center for major industrial expansion, particularity in remote and northern regions for Uranium, Oil & Gas, Base Metals and Forestry• First Nations play a major role in development and MLTC is a recognized leader in

facilitation and implementation

MLTC has assembled an experienced development team with industry and functional expertise to develop and execute these initiatives

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MLTC RESOURCE DEVELOPMENT LIMITEDPARTNERSHIPMLTC Resource Development (MLTC RDI) is a First-Nations owned limited Partnership and one of Saskatchewan’s largest Private Equity investment managers

With a portfolio of 8 operating subsidiaries, 3 wholly owned asset divisions, 1 mega project & employing more than 2,400 people, we are a large economic contributor in Saskatchewan

MLTC RD has been given a mandate by its 9 shareholders to develop profitable businesses which can accomplish several goals, all within a vision of improving the economic wealth position of the 9 First Nations communities and their people

MLTC RD undertook steps to carefully plan and execute on several new business opportunities, including re-organizing into a modern governance structure and recruiting new management, external directors and advisors

MLTC RD has now secured several opportunities and is pursuing financing arrangements than can maximize shareholder objectives

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MLTC BACKGROUNDAlliance of 9 first nations located in a large territory in North-West Saskatchewan

5 Cree First Nation bands4 Dene First Nation bands

~ 13,000 members

Very young population

One of the most successful tribal council organizations in North America

Region is rich in natural resource activities (Forestry, Uranium, Oilsands, Natural Gas, Heavy Oil, Agriculture, Base Metals, Diamonds)

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MLTC: 9 FIRST NATIONS, WORKING UNDER ASINGLE UNIFIED APPROACHAgreed in the 1980’s to work in close cooperation

Operate several non-profit programs and services for its members by administrating funds from the Federal and Provincial Government

Health, education, training, self-government, political negotiation

BUSINESS has been a major priority, which has evolved to clearly delineate business and political functions

MLTC Resource Development is a separate legal and governed limited partnership, ensuring stability and integrity.

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MLTC: 25 YEARS OF BUSINESS SUCCESS

2009: MLTC Resource Development Limited Partnership is created, re-organizing the governance and shareholder structure to position for aggressive and substantial growth

2011: MLTC RD leads a major new initiative with the Province of Saskatchewan: The First Nations Power Authority (FNPA), new 36 MW Biomass Power Project announced Oct 3rd

1988: MLTC is invited to be a minority equity partner in a consortium of management, union and forestry companies to buy a failed government owned sawmill from receivership

1998: MLTC completed leveraged buyout ($40M) with Scotia Capital to buyout all shareholders, expand mill

2008: MLTC owns a portfolio of investments in 8 subsidiary companies

FNPA ANNOUNCEMENTS

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