Mineral Exploration

S pring 20 17 5 $476 million in annual payments to government (down from a high of $9.9 billion in revenues and $674 million in payments to governments in 2011). 3 Modern mines are powerful economic engines that the province can't a¤ord not to replace. Mineral exploration, of course, is a risky and speculative business that does not generate operating revenues in the near term. As a result, investment in early- stage exploration tends to lag behind other mining investment when markets are risk averse, as they have been in recent years. In addition, as the regulatory, environmental and stakeholder hurdles facing mineral explorers and developers increase, it takes more funds than ever to make and advance a mineral discovery. Tax incentives, such as the flow- through share tax credit and the B.C. mining exploration tax credit, which have been renewed by the province through 2017 and December 2019, 4 respectively, and the recent $10 million in new funding for Geoscience BC over two years that boosts mineral, coal, and oil and gas exploration investment in the province, will assist the exploration business. 3 pwc.com/ca/en/industries/mining/publications/ mining-industry-british-columbia.html 4 news.gov.bc.ca/releases/2017PREM0010-000125 But to attract, grow and retain investment, we must demonstrate that exploration and development projects in B.C. can be advanced e¤iciently, without undue roadblocks. There remain certain inconsistencies and unpredictability in British Columbia's regulatory and permitting regime for exploration and development – in particular, with respect to the rights of mineral claim holders and government e¤orts to negotiate agreements with First Nations. If unresolved, these issues could well diminish the proportion of total mineral exploration expenditure that B.C. attracts. AME will be working hard this year with government on behalf of our members to ensure that regulations are clarified and adhered to in order to provide the long-term stability that our industry requires. We will also continue to work with the province's First Nations people to support the types of partnerships that have made Canada's minerals industry the No. 1 employer of First Nations people in the country. With a provincial election upcoming in May, B.C. and its policies will be under the spotlight in 2017. AME will be working with the Mining Association of BC and others to keep positive, investor-friendly policies front and centre with candidates over the next few months. Our industry remains a vital and committed part of rural economic development in the province, bringing well-paid jobs and opportunities to local communities and First Nations alike, and delivering benefits to all British Columbians. We invite you to join our e¤orts to ensure that the political landscape is positive and welcoming for the minerals sector and our investors now and in the future. It is still too early in the year to determine how many of B.C.'s 259 exploration projects will be funded in 2017. However, with capital markets and outlooks for commodities improving, we have every hope that 2017 will be a year of renewed growth and success for our business. I thank you, our members, for your enthusiasm and support as we enter a pivotal year for mineral explorers in B.C., and wish you the best for a productive and successful 2017 field season. Government must clearly and publicly rea'irm that the province is open for mineral investment. " " Reinforce Relationships Created at Roundup All Year Long in CONTACT Alexander Sugden 604.473.0358 mineralexploration@canadawide.com

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