Waterpower Development on the Vermilion River A Presentation to the City of Greater Sudbury

September 23, 2010

By Mark Holmes, President Marlyn Consulting, in Association with

Ontario 1713399 and 1713400 and in partnership with Xeneca Power

Development Inc.

Building a greener Ontario through clean, renewable energy

Reason for Meeting

• To provide to City of Sudbury an overview of Vermilion River green

energy projects and project proponents.

• To provide the City with an overview of Ontario’s green electricity

development policies and objectives.

• To provide Project history and status updates.

• Outline next steps and timelines in Project development.

Patrick Gillette, BA, MES, MPA, President/COO

President & Owner - Xeneca Power Development Inc.

$400 million Energy Project Financing

1000 MW of Project Development experience

Co-founder Canadian Renewable Energy Corp. (CREC)

Uwe Roeper, M.Sc., P.Eng, CEO

President - Ortech Energy, Ortech Environmental

Co-founder of CREC

Xeneca Power Development

Mark Holmes, VP Corporate Affairs

Over 15 years resource use and management experience

Six years energy sector consulting

Extensive resource use experience in forestry, mining and wildlife conservation

25 years Regulatory, Government Relations, Communications background

Edmond Laratta, M.Eng., P.Eng., Manager , Environmental Affairs

Over 35 years of diverse environmental assessment, regulation compliance and

program implementation practice

Extensive background of training including: risk management, waterpower geology,

groundwater contamination transport and hazardous waste management

Xeneca Power Development

Xeneca Power Development Well capitalized and experienced partners and investors in the

renewable energy field. Business run by an experienced

management team with a proven record of success.

Xeneca Structure

Firelight Infrastructure

Partners

OP Trust

Dundee Realty

Corporation

Directors / Executive Team

Jason Lester, COO Dundee Realty Corporation / Director Xeneca

Gavin Ingram, OPTrust / Director Xeneca

Uwe Roeper, CEO / Director Xeneca

Patrick Gillette, President / COO / Director Xeneca

Xeneca’s Senior

Management Uwe Roeper Patrick Gillette

Mark Holmes Arnold Chan

Xeneca LP

XENECA

Provincial Profile

• 130 MW of Ontario projects submitted to

the Ontario Power Authority’s Feed-In

Tariff (FIT) program.

• 72 MW representing 19 projects,

including four projects on the Vermilion

and one of the Wahnapitae near

Kilarney, have been approved for FIT

contracts. Another 14 projects are

awaiting assessment for connection to

the electricity grid.

• With FIT Contract there is a five year

window for development. Projects need

to move quickly and concurrently

through several approval processes.

Why waterpower?

Currently, Ontario has a

surplus of base load power,

but lacks peaking power

production, and, as such,

efforts are being made to

increase availability of “stored

power.” Waterpower is an

excellent means to balance the

supply mix. Water can be

stored behind dams in

reservoirs, or simply

redirected when needed to

generate power, and, unlike

fossil fuels and biomass, there

are no emissions.

Current Public Policy

• Government and Power

Authorities recognize need for

local generation which is strongly

encouraged via public policy.

• Green Energy Act (GEA) dovetails

with Ontario Power Authority

power purchase agreements and

MOE’s Environmental Approval

process.

• MNR revamping its site release

policy to merge with GEA.

Current Public Policy – cont.

• Federal policy also strongly

encourages the development

of green, renewable energy.

• Helps achieve goal of

reducing atmospheric

emissions.

• Several Federal programs

including Green Energy Fund

in place to facilitate green

energy development.

Why the Vermilion River?

Long distance transmission,

and infrastructure is costly to

build and maintain. Power

produced and used locally is

more economical and

environmentally sound.

Vermilion River has good flow

regimes and adequate head…

the two main factors in making

waterpower development

practical and economical.

Impacts on Sudbury

and area?

• Hydrology and topography show the

Vermilion sites have good

generation potential with a total

installed capacity of about 11.8 MW.

• Sites known as Wabageshik, At Soo

Crossing, Cascade Falls and

McPherson Falls and are upstream

from existing Vale Inco

developments at Wabageshik Lake.

• Supports development of renewable

energy.

Vermilion River upstream projects

Economic Impacts

Approximate economic

activity (direct) to build in

Ontario is $5 million per MW.

Direct job creation

(construction only) 10,000

person hours per MW. Indirect

jobs multiply by 1.5.

Local/Regional economic

boost of $2.5 million per MW.

Economic Impacts – cont.

Broad based economic stimulus (engineering, consulting, legal,

goods & services).

First Nations participation incentives.

Revenue to Ontario (GRC) downloads to municipalities. City of

Greater Sudbury may want to open discussion with Ministry of

Municipal Affairs and Housing.

Provincial and Federal Income taxes.

May assist mining companies by providing more reliable power

with some potential cost savings.

The Vermilion River Projects

• Work progressing since 2008.

• Potential for about just over

11 MW.

• Transmission lines

connecting at Larchwood

and/or Espanola TS .

• More economic opportunity

associated with construction

of transmission.

Project Status

• Land ownership determined

and agreements with mining

companies, City of Greater

Sudbury are being sought.

• Engineering review of

hydrology.

• Environmental field studies

have begun.

• LiDAR digital aerial survey

completed and accurate

within 2-4 cm.

• FIT Contract Awarded

April 8, 2010.

Outlet Kap Lake

• First Nations discussions

initiated with some Communities.

MNR identifies and provides

notification, proponent duty to

consult and work toward B 2 B

arrangements.

• Stakeholder consultation under

way with newspaper

advertisements of Notice of

Commencement.

• Public Information sessions

being organized.

Project Status - cont.

At Soo Crossing Project

• Existing rapids/falls on

Vermilion River ±70 m

upstream of existing

railway bridge, ±2.6 km

downstream of Highway

17.

• Concrete spillway dam

and fill embankments

Penstock and

powerhouse.

• ±1.5 km new access road

to existing Hwy 55.

• Xeneca requests City

input and support.

Cascade Falls Project

• Existing rapids/falls on

Vermilion River ±400 m

downstream of hydro

corridor, ±4.4 km

upstream of Highway 17.

• Concrete spillway dam,

intake channel and

Powerhouse,

transformer station.

• ±1.5 km new access road

to existing Hwy 55.

• Xeneca requests City

input and support.

McPherson Falls Project

• Existing rapids/falls on

Vermilion River ±8 km

upstream of Highway 17.

• Concrete spillway dam

Intake channel and

Powerhouse,

transformer station.

• ±3.5 km new access road

to existing local road.

• Xeneca requests City

input and support.

Wabageshik Project

• Existing rapids/falls on

Vermilion River

approximately ±400 m

downstream of existing

road, approximately

±600 m downstream of

Wabageshik Lake.

• Concrete spillway dam,

Powerhouse,

transformer station, ±500

m new access road to

existing local road.

• Xeneca requests City

input and support.

Next Steps

• Agency coordination meetings,Q4, 2010

• Data collection Q2-Q4, 2010 and possible Q1 and Q2, 2011

• Public information centres Q4, 2010

• Addressing agency input Q1-Q2, 2011

• EA completion Q2-Q3, 2011

• Equipment order Q4, 2011

• Approvals and permitting Q3, 2011-Q3, 2012

• Detail design Q1–Q4, 2012

• Construction Q1, 2013–Q4, 2014

• Testing and commissioning 2015

Thank You

Questions….. Discussion