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Six Nations Equity Investment in Grand Renewable Energy Park Announcement

This community update announces Six Nations' equity investment in Grand Renewable Wind LP and Grand Renewable Solar LP, detailing project benefits, updates, and milestones. The agreement secures lease revenue and a historic partnership. Community engagement, project background, and financial comparisons are highlighted.

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Six Nations Equity Investment in Grand Renewable Energy Park Announcement

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  1. COMMUNITY UPDATE OCTOBER 23, 2013

  2. Purpose of this Meeting Formally announce Six Nations equity investment in both Grand Renewable Wind LP and Grand Renewable Solar LP Provide a summary of the project benefits to Six Nations Provide important updates to the community

  3. Grand Renewable Energy Park GREP 150MW Wind 100MW Solar FACT Grand Renewable Energy Park is scheduled to be operational in 2014

  4. GREP: Two Projects 150 Megawatts of Wind 100 Megawatts of Solar Sponsor: Grand Renewable Wind LP Parties: Samsung C&T Pattern Energy Group LP Six Nations (7539223 Canada Ltd) Sponsor: Grand Renewable Solar LP Parties: Samsung C&T Conner Clark & Lunn Infrastructure Six Nations (8490341 Canada Ltd) FACT Grand Renewable Energy Park has a combined investment cost of $1 Billion

  5. GREP Development Area FACT The development is located within the Haldimand Tract

  6. Province of Ontario: Land Accommodation On May 27, 2013, the Province of Ontario agreed to a historic land lease revenue assignment in favour of Six Nations as follows: Ontario assigns 100% of the Lease Revenue to Six Nations. • Revenue estimated at $9.0 million over 20 years • In total, 729.5 acres of ORC lands are being used • The remainder of land is privately held This land accommodation will not jeopardize any existing or future land claims. FACT This is a historic and precedent setting agreement

  7. Community Engagement Summary In total, 10 community meetings were held in various locations throughout the community between March 5, 2012 to April 3, 2012 • 354 attendees • 135 written comments received • 70% supported the project • 15% opposed to the project • 15% were undecided FACT All meetings were heavily advertised through flyers, radio, direct mail, and in community papers

  8. Project Background Due to positive community feedback, on April 5, 2012 the Six Nations Elected Council passed a motion to support the Grand Renewable Energy Park; Authorized the Director of Economic Development to proceed with due diligence to assess the benefits of partnering in Grand Renewable Wind Limited Partnership and Grand Renewable Solar Limited Partnership. After completing 16 months of comprehensive due diligence, on August 27, 2013, Six Nations Elected Council approved a 10% equity investment in Samsung’s Grand Renewable Energy Park. FACT Six Nations has been in discussion/ negotiation with Samsung since June 2009

  9. Grand Renewable WIND Project Location Wind Turbine locations: FACT Grand Renewable Wind LP will have 67 wind turbines

  10. WIND – Updated Benefit Comparison Updated 2013 As at 2012 Net Cash flow $38,800,000 (20 years) Net Cash flow $38,000,000+ (20 years) - vs - FACT No material change in the estimated net cash flow

  11. WIND – Updated Benefit Comparison Royalty (Non owner) Equity (Owner) $38,000,000 (20 years) $22,200,000 (20 years) - vs - FACT Equity generates $15.8MM of additional financial benefit.

  12. Grand Renewable WIND LP: Ownership 100% funds borrowed from RBC Investment $6.799 MM Legal $0.054 Due Diligence $0.120 Closing Costs $0.0425 TOTAL $7.015MM EQUITY OPTION FACT As an equity holder, Six Nations is an owner of the assets. Any future contracts to sell energy will trigger future revenue to Six Nations.

  13. WIND Project Milestones The project is currently at the following stage: • Financial Close: September 11, 2013 • Wind Job Fair will be announced by October 31, 2013 • Archeological stage 4 work to be complete by December 2013 • Construction is expected to begin: December 2013 • Expected date the projectCommercial Operation: September 2014

  14. Grand Renewable SOLAR Project location Solar Farm location: FACT Grand Renewable Solar LP will house 445,000 solar panels

  15. Solar Project Site Project is located in the County of Haldimand bounded by Mount Olivet Road to the west, Meadows Road to the north, Sutor Road to the east, and Haldimand Road 20 to the south for most of the site, with a small portion extending south of Haldimand Road 20. The Project will consist of solar modules, inverters, step up transformers, electrical collector lines, a transformer substation, transmission line access roads and construction staging areas.

  16. Solar Park Map

  17. SOLAR – Updated Benefit Comparison Updated 2013 As at 2012 Net Cash flow $9,500,000 (20 years) Net Cash flow $27,000,000+ (20 years) - vs -

  18. SOLAR - Updated Benefit Comparison Royalty (Non Owner) Equity (Owner) $27,000,000+ (20 years) $13,480,000 (20 years) - vs - FACT Equity generates $13.52MM of additional financial benefit.

  19. Grand Renewable SOLAR LP: Ownership 100% funds borrowed from RBC Investment $2.874 MM Legal $0.054 Due Diligence $0.060 Closing Costs $0.023 TOTAL $3.011MM EQUITY OPTION FACT As an equity holder, Six Nations is an owner of the assets. Any future contracts to sell energy will trigger future revenue to Six Nations.

  20. SOLAR Project Milestones The project is currently at the following stage: • Financial Close: September 24, 2013 • Wind Job Fair is plannedfor November 6, 2013 • Archeological stage 4 is now complete • Construction is expected to begin: November 2013 • Expected date the project Commercial Operation: Q1 2015

  21. Summary of Financial Benefits for Six Nations Equity ownership in the projects will yield the following estimated Economic Benefits to the community: Equity Investment of: $10.030 MM (debt) Generates: Net Revenue from Equity: $65M+ Add: Revenue from Leases: $9.0M TOTAL MONETARY VALUE: $74.0 M over 20 years FACT Actual revenue will be derived from wind and solar production volume in the future

  22. Summary of Ancillary Benefits for Six Nations Direct • Employment and Training opportunities • $400,000 in post secondary scholarships ($20,000 per year) Indirect • Trigger future partnership opportunities • Precedent setting lease assignment from Ontario • Positive impact on environment

  23. Solar Job Fair NOVEMBER 6, 2013 Six Nations Community Hall 2pm to 8pm Contact: Grand River Employment and Training or Six Nations Economic Development

  24. Contact Us Matt Jamieson, Director Economic Developmentmattjamieson@sixnations.ca Nicole Kohoko, Departmental Assistant nkohoko@sixnations.ca 519-753-1950 www.sixnationsfuture.com

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