- NWT Exploration & Mining Prospects 2012 -

1. - 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) Ekati (diamonds) Meadowbank (gold) Diavik (diamonds) Snap Lake (diamonds)

4. Value of Mineral Production, 2011 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

6. Courageous (gold) Howard’s Pass (YT) (base metals) NICO (gold, cobalt, bismuth) Prairie Creek (base metals, silver) Ormsby (gold) Nechalacho (rare earths) Gahcho Kue (diamonds) Pine Point (base metals) NWT: What’s “in the wings”

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. • 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 • 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 Base metals, silver Gold Copper Copper, gold Gold Gold Diamonds Copper, nickel, cobalt Nickel Lithium

11. NRCan March 2012 We must attract more exploration • 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.