- NWT Exploration & Mining Prospects 2012 -

Presentation to NWT Chamber of Commerce AGM Yellowknife – April 3, 2012

2

Discussion Items

• Industry update • Our challenges • Encouraging signs • How you can help

3

Current NWT Mineral Production

CanTung (tungsten)

Snap Lake(diamonds)

Ekati(diamonds)

Meadowbank(gold)

Diavik(diamonds)

4

Value of Mineral Production, 2011

NWT, Nunavut and Yukon Mining Production

$653 $682$779

$874

$1,667

$2,112

$1,790

$1,638

$1,831

$2,123

$1,507

$2,045$2,144

$349 $385$321

$272

$35 $35 $4 $32 $35 $13 $0

$317$414

$0

$500

$1,000

$1,500

$2,000

$2,500

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011(p)

$C M

illio

ns

NWT

Nunavut

Yukon

Natural Resources Canada – March 2012

• Diamonds are up by $40 million over last year, and tungsten is up by $55 million. • Benefits to date: 17,000+ person-years employment; $9+ billion northern business• Important that we take actions to help sustain and even grow this production.

5

Future of NWT Mines

• Find ways to sustain our mines• Attract investment in new mines and exploration to sustain benefits

Mine lives - years1997 2000 2003 2006 2009 2012 2015 2018 2021 2024 2027 2030

Ekati

Diavik

Snap Lake

Cantung

6

NWT: What’s “in the wings”

Howard’s Pass (YT)(base metals)

Prairie Creek (base metals, silver)

Gahcho Kue(diamonds)

Nechalacho(rare earths)

Ormsby (gold)

NICO(gold, cobalt, bismuth)

Pine Point (base metals)

Courageous(gold)

7

6 New NWT Mining Opportunities

PROVISO: This data is taken from public information that represents best case scenarios. Actual project timing and opportunities are subject to market prices & conditions, regulatory approvals and timing, investor approval, etc.

2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036

Prairie Creek

Gahcho Kue

Nechalacho

Tyhee

NICO

Pine Point

• NWT has 6 mining proposals advancing. • They are not slam dunks, but we are optimistic • Could help fill the void when diamond mines decline & close

8

Total value of 6 proposed new NWT mines

• Capital investment – about $1.8 billion • Annual operating expenditures – about $700 million• Jobs at peak – about 1,400 • Total person years employment – more than 25,000• Total expenditures over life – more than $14 billion

9

But, need for more exploration

Mining Project Name (Operator) Commodity Expected

ProductionExpected

JobsExpected Capital Costs

($C millions)

Yellowknife Gold Project (Tyhee) Gold 2014 238 $ 170

NICO (Fortune)

Gold, Copper, Cobalt, Bismuth 2013 150 $ 200

Thor Lake(Avalon Rare Metals) Rare Earth Metals 2014 200+ $ 228+313

Prairie Creek (Canadian Zinc) Silver, Zinc, Lead, Copper 2013-14 220 $ 60

Gahcho Kue(De Beers, Mtn. Province) Diamonds 2015 360 $650

Pine Point(Tamerlane) Zinc, Lead 2013 225 $ 135

TOTAL 1,400 jobs $ 1.8 billion

EKATI mine Diamonds 1,229 jobs

• If all 6 NWT projects become mines, the direct jobs will just equal jobs at the Ekati mine. Five years after Ekati, Diavik is slated to close.

• We need more exploration.

10

Grassroots Exploration: building the future

Base metals, diamonds

DiamondsGold

Gold

Base metals, silver

Gold

Lithium

Copper

Copper, nickel, cobalt

Copper, gold

Nickel

11

We must attract more exploration

NWT, Nunavut and Yukon Mineral Exploration

$0

$100

$200

$300

$400

$500

$600

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$C M

illio

ns

NWTNunavutYukon

NRCan March 2012

• Languishing NWT exploration investment (compare Yukon and NU). • Upside? We created this, therefore we can change this.

12

The NWT Challenges

• Maturing industry – Ekati to close in 2019– Requires many new mines to replace world class Ekati and Diavik

• Languishing exploration • Regulatory complexity

– complex and outdated MVRMA; significant public concern sending small grassroots projects to EA

• Access to land – Protected Areas Strategy – $25m with no balancing Economic

Development strategy has helped conservation bias • Aboriginal consultation & participation

– consultation requirements not clear, Akaitcho Exploration Agreements, unsettled land claims

13

Encouraging Signs

• 6 new mines proposed • Small upturn in exploration investment• Regulatory certainty – legislation being modernized

by Federal government • GNWT Priority – NWT Mineral Development Strategy

• Aboriginal support

– Akaitcho MOU, Tli Cho’s Kwe Beh Working Group – Pan Territorial Training Strategy

14

How you can help

• You are all leaders who have influence • Get to know your mining neighbours

– Think and work creatively with them • Offer your support through:

– Chamber of Mines, Commerce, Construction Assoc.– Your land claim organizations – Government leaders and officials

• Strength in working together– We can create our own Opportunities

15

Why it matters

Courtesy Diavik Diamond Mines Inc.