Whitehorse – FaroMay, 2018

BMC Minerals (No.1) LTD (incorporated in Canada BC1014247)

Overview

Summary of Kudz Ze Kayah Work Programs in 2017 and Planned Programs for 2018

Environmental and Socio-economic Assessment Update

Proposed Kudz Ze Kayah Mine Plan (Refresher)

Follow-up on Frequently Asked Questions from Previous Community Meetings

Permitting Process: Next Steps

Project Location

• Located in the traditional territory of the Kaska First Nations

• 160 km2 of Mineral Claims• 24 km Tote Road access from the

Robert Campbell Highway

Programs Completed in 2017

Drilled approximately 4800 m of diamond drilling and approximately 100 m of rotary drilling.

Ground geophysics, soil sampling, geological mapping and metallurgical studies continued.

$10.7 M invested (project wide) with approximately $4.23 M to Yukon businesses and local wages.

Completed 11 km of 2D seismic data acquisition.

Ongoing environmental programs and reclamation research.

NI 43-101 Compliant Prefeasibility Study for KZK.

Scholarship Program.

Programs Planned for 2018 Electromagnetic surveys, surface mapping,

soil sampling, seismic surveys.

Further exploration drilling (approximately 5000 m).

Additional geotechnical investigations.

Reclamation of exploration disturbance.

Continue environmental surveys.

Finalize Feasibility Study.

Prepare Quartz Mining Licence Application.

Prepare Water Licence Application.

Earth works for camp expansion and new septic system.

Ongoing Scholarship Program.

Environmental and Socio-economic Assessment Process

KZK Project Proposal was

Submitted to Yukon

Environmental and Socio-

economic Assessment Board

in March 2017.

Hard copies are at the band

offices and 2 YESAB offices for

review.

YESAB declared the Project

Proposal Adequate in January

2018.

Seeking Views and Information

Stage of the Assessment

began in January 2018.

The first public comment

period ended March 16 2018.

YESAB issued Information

Request #3 on April 9 2018

Kudz Ze Kayah Project Proposal Layout

Kudz Ze Kayah Proposed Project Scope

Copper, lead, gold, silver, zinc project.

Existing Tote Road will be upgraded along existing alignment.

Concentrate will be hauled to Stewart via Watson Lake.

Max traffic 26 trucks per day.

Crews transported via Finlayson Lake Airstrip.

Power will be LNG.

80% open pit and 20% underground.

Dry stack tailings and three classes of waste rock.

5500 tonne per day process plant.

250 person camp.

Water treatment plant.

Progressive reclamation.

Construction Features

ABM Open Pit & Underground

Overburden stockpile

Conventional flotation mill

Camp

Class C material – used for Class A buttress, ore pad, haul roads, and

general construction

Year 10 of Operations

ABM Open Pit & Underground

Camp

Overburden stockpile

Conventional flotation mill

Class C material – used for Class A buttress, ore pad, haul roads, and general construction

Active Closure

Pit begins infilling

Reclamation includes surface compaction and revegetation

Water treatment plant remains until no longer necessary Fault Creek reintroduced

to original channel

Roads reclaimed, buildings removed

Post Closure

Geona Creek returned to pre-mining conditions

Fully reclaimed rock storage facilities

Constructed wetlands

Estimated Mine Expenditures and EmploymentConstruction Phase (2 years):

Estimated between $370-$400 million to build the Project

over a two year construction period;

Approximately 250 full-time-equivalent jobs each year.

Operations Phase (10 years):

Estimated annual site expenditures + concentrate haul

approximately $175-$185 million/year;

Approximately 300 jobs per year.

Frequently Asked Questions and Comments from Communities

Socio-economic

Surface Water Quality

Tailings and Waste Rock ManagementWildlife

Aquatic Ecosystems and Resources

Culture, Traditional Knowledge and

Land Use

Consultation and Engagement

Consultation and EngagementWould like to be meaningfully consulted.

Would like to be involved.

Would like a third party review of

environmental studies.

Culture, Traditional Knowledge and Land UseWould like a ceremony before mining starts.

Access is open to guide outfitters but not Kaska.

Would like Kaska Environmental Monitors and Guardianship.

Would like a committee with the Kaska Elders.

A traditional knowledge study should be conducted.

RRDC Chief and Council and the Elders have completed a land

use plan that has mitigation measures that you should

implement.

Socio-economicsWhat if you sell the project? How will your commitments to

us hold up?

Do you have financing?

Will your project withstand a downturn?

How many jobs will there be?

Will you hire locally?

Socio-economicsWill there be training and job retention programs?

There is a concern that BMC’s drug and alcohol policies

hinder job opportunities.

After completion of mining, there is concern that the

government will have to clean it up.

Socio-economic Participation Agreement (SEPA) is dated.

Will it be reviewed and amended?

Tailings and Waste Rock ManagementAre other projects using dry stack tailings?

Will the tailings be covered and sealed?

How will dust be mitigated from the tailings facility?

Why not use the Wolverine mill and tailings facility?

Will it be like Faro?

Surface Water Quality and Quantity Is selenium an issue?

Will the mine impact the creeks?

Will the ABM Lake at closure need treatment?

What is the current water quality at the site?

Aquatic Ecosystems and ResourcesWhat is a fish offsetting plan?

Wildlife and VegetationHow will moose and caribou

habitat be protected given the

lack of management by YG?

How will the site be reclaimed

(local seeds and seedlings?)

Are there invasive species along

the road?

Permitting Process: Next Steps

Yukon Environmental and Socio-economic Assessment Act

• Seeking Views and Information • Draft Screening Report • Second Public Comment Period • Final Screening Report and Recommendations • Decision Process (including a third public comment period)

Yukon Quartz Mining Act• Quartz Mining Licence: Part 1 Mine

Development• Quartz Mining Licence Operations: Part 2

Mine Construction, Operation

Ongoing Consultation and Social-licence to Operate

Ancillary PermitsYukon Waters Act

• Amended Type B Water Licence• Type A Water Licence

BMC Minerals (No.1) LTD (incorporated in Canada BC1014247)