ENVIRONMENT

• 2016 Annual Water Quality Report
• 2016 Kemess South Fish Monitoring
• 2016 Kemess Mine MLARD and Reclamation Report
• 2016 Provincial Environmental Effects Monitoring
• 2016 Selenium Assessment in Aquatic Ecosystems

Economic Prosperity without Compromising the Environment

We seek to minimize the KUG Project’s environmental footprint through implementing industry leading, environmentally responsible practices in all phases of the mining life cycle. We view effective management of the environmental effects from our operation that are developed in collaboration with and respectful of Tse Keh Nay First Nations and other Indigenous peoples' rights, culture and way of life and their traditional knowledge as critical to our success as an organization.

1. Sound environmental practices based on adaptive environmental management, sustainable development, the precautionary principle, ecosystem-based approach, and incorporation of Indigenous peoples’ traditional knowledge are considered to be a core element in our operations.
2. We are committed to allocating the resources, with ongoing training and learning from our respective experiences, knowledge and awareness, necessary to help achieve our stated objectives.
3. We believe that we can reduce our impact on the environment by working collaboratively with Tse Keh Nay First Nations and other Indigenous peoples to design and implement strategies to avoid or mitigate the impacts of our operations.
4. We continuously look to reduce energy and fuel consumption.
5. We will take all necessary precautions to avoid and minimize the environmental impact of our operations and we will develop controls collaboratively with Tse Keh Nay First Nations and other Indigenous peoples and/or communities to mitigate environmental risks.
6. We establish measurable key performance indicators that comply with globally recognized standards that are applicable to our projects, adopting best applicable practices, best available technologies, adaptive environmental management, progressive mine rehabilitation/restoration of the environment and safe disposal of waste byproducts.
7. We regularly review our performance and report the outcomes annually against globally recognized standards.
8. We are committed to addressing the environmental aspects of our operations and ensuring that the environment is protected and/or rehabilitated by reducing and/or mitigating impacts so that traditional uses may continue for future generations.
9. We respect the jurisdictions in which we operate, and abide by local laws, permits and license conditions.
10. We maintain a high level of emergency preparedness.

The project has received the required Environmental Assessment approval for the Company's wholly-owned Kemess Underground Project ("the Project"). On March 15, 2017, the Canadian Environmental Assessment Agency ("CEAA") issued a positive Decision Statement and the British Columbia Environmental Assessment Office ("EAO") granted an Environmental Assessment Certificate for the Project. These decisions conclude the Project's environmental assessment review process and there are no further major provincial or federal environmental assessments or approvals required aside from regular course permitting.

The EAO managed the Environmental Assessment for the Kemess Underground Project in a Substituted Process on behalf of British Columbia and CEAA, the latter of which is on behalf of the Federal Government of Canada.