Understanding the Green Energy and Green Economy Act & Regulations

1. Understanding the Green Energyand Green Economy Act & Regulations Presented in Toronto by Joe Gaboury Chief Executive Officer Five Nations Energy Inc. April 7, 2010

2. Presentation to focus on the following: • History of Five Nations Energy Inc. (FNEI) • First Nations and Energy Development • Community support • Potential Opportunities • Constraints facing communities who support development

3. What is Five Nations Energy Inc • FNEI is a not-for-profit company licensed by the Ontario Energy Board and is one of four high voltage electricity transmission companies in Ontario • We are owned by 3 partners – Attawapiskat Power Corporation, Kashechewan Power Corporation & Fort Albany Power Corporation • The Power Corporations are owned by their respective local Band council

4. What is Five Nation Energy Inc • Initially, FNEI owned 190 km of high voltage transmission line from 80 km north of Moosonee to Attawapiskat, plus 3 transformer stations – one in each community • Recently we will added another 170 km of high voltage transmission line for a new total of 360 km, plus 1 new transformer station • These additions were the result of the De Beers Victor Diamond Mine

5. Five Nation Energy Inc The Beginning • Three member communities, Attawapiskat, Kashechewan, and Fort Albany were remote from the grid and were serviced by diesel generators • Increased consumption and environmental concerns from diesel generators were causing concerns • Communities growth was limited by size of diesel generators • Chiefs of communities came up with the original concept • Business case put forward to extend power transmission line from Moosonee

6. Five Nation Energy Inc The Beginning • Support from local Chiefs and Mushkegowuk was very important is moving the concept forward • Perseverance – Many people were skeptical and did not expect the line to ever be built. The Chiefs and original project team worked hard to bring the concept to reality • Foresight from community leaders and a willingness for the communities to work together created the success story that has benefited the communities to this day

7. Support for Energy Development • Historical legacy of energy development in the province does impact the support the First Nations communities have towards energy development • Overall, there is a positive trend towards business develop within the First Nation communities • Support varies among communities and within communities • The larger the project the more uncertainty • The ownership structure can have an effect on support

8. Support for Energy Development • An ownership/equity stake is almost required to get support • Successful projects provide assurance to communities looking at potential energy development • If a community is undecided, the process to gain support can be very lengthy, and requires educating the communities on the merits of any potential development

9. Community Approval • Every community has own process for community support • Dependant on the size of the project • If project is large with many impacts on the community, it is recommended that support be received through a community referendum • Role of elders very important within First Nation communities • First communication should be with Chief and Council

10. Community Approval • Chief and Council may sign an MOU or letter of intent describing the conditions of continued support • Next steps would be community meetings and information sessions • Having separate meetings with elders is usually beneficial to the approval process • Community may/will require technical, environment, and business support to assist them in the decision making process

11. Community Approval • Once all information has been provided to community, a vote on support of the project may be required • Support of the elders vital to many large projects • Some proponents have been successful in gaining community support without going through the process just described • Cannot stress how important it is to be thorough during the approval process

12. Potential Opportunities • The Green Energy Act has created many opportunities for First Nation communities • Immediate opportunities are in generation, including wind, solar, and hydroelectric • Future opportunity in the building of power transmission lines, both enabler lines and lines required for other economic developments

13. Constraints to Development • Access to capital is still a constraint to energy development within First Nation communities • Geography, or distance from transmission lines. There is not a lot of opportunity for communities close to the grid. The far north has the most opportunity, but distance from the grid adds costs that make many potential developments not economically viable • Capacity within our communities. This is slowly changing, as there are communities that have capacity, but the majority of communities still lack internal capacity

14. Constraints to Development • Past projects that failed to live up to the expectation of the community • Requirements/policies required by other government ministries

15. The Future for our First Nation Communities • Our communities will have a say in any new develop or redevelopment within the electricity system in Ontario • For those communities that support development, they will have the opportunity to move from being a stakeholder to shareholder • Managing the expectations of the opportunities presented will be a very important part of the changes taking place in Ontario

16. The Future for our First Nation Communities • First Nations with experience in the industry need to assist our other communities who are looking at potential projects • Five Nations Energy Inc. has shared our experiences with other communities and will continue to do so in the future.

17. Meegwetch