September 23, 2015

LaTisha Gietzen

10/6/15 PLM / POM 2

Hoyt Lakes ★

Saint Paul ✪

About PolyMet Mining •  Minnesota based •  Publicly traded (PLM / POM) •  Single project – NorthMet •  Open pit mine and mill

–  32,000 tpd production

•  20-year permit application •  Polymetallic resource:

–  copper –  nickel –  cobalt –  platinum group metals (PGMs)

10/6/15 PLM / POM 3

PolyMet Mining History

10/6/15 PLM / POM 4

• Duluth Complex discovered 1940s

• NorthMet discovery (US Steel) 1969

• Acquires US Steel mining lease 1989

• Acquires idle Erie Plant 2005

PolyMet’s mission

To permit, safely and responsibly build and operate a mining enterprise that produces essential metals, sustains and improves our way of life, protects our natural surroundings and returns value to those who have a stake in us.

10/6/15 PLM / POM 5

Life without mining…

The question isn’t “if” we mine – BUT – “Where and how” do we mine?

10/6/15 PLM / POM 6

Metals are essential for our way of life

Metals have to be mined - recycling is not enough

Essential metals for modern society

10/6/15 PLM / POM 7

Copper Nickel Cobalt

Platinum Palladium Gold

Electric Cars Medical Instruments Joint Replacements

Catalytic Converters Cancer Treatment Computer Components

Essential metals for green energy

10/6/15 PLM / POM 8

Taconite Ridge, Virginia, MN

•  Up to 10,000 lbs. Cu in a single wind turbine

•  Avg. 2,300 lbs. Cu each in electric buses, trolleys, subway cars

•  64 lbs. Cu in a Toyota Prius

10/6/15 PLM / POM 9

•  Mine where the resource is located

•  World class mineral resource

•  Domestic source

•  Established mining district

•  Proud MN mining history and culture

NorthMet deposit – potential •  20 year mine plan = 3.6 billion pounds

copper equivalent 

•  Measured & indicated resource = 10.3 billion pounds copper equivalent

•  Global resource = 15.4 billion pounds copper equivalent

10/6/15 PLM / POM 10

Economic benefits and job creation

$515 million annual economic benefit

1000 jobs direct and spinoff

2 million hours construction labor - PLA

10/6/15 PLM / POM 11

Source: NorthMet Economic Impact 2011 Update University Of Minnesota Duluth

Labovitz School of Business and Economics

Annual wage comparison

$14,

396

$23,

249

$68,

531

$0

$20,000

$40,000

$60,000

$80,000

Accomodation, food services

Retail Mining, oil/gas

Mining supports families and strong communities

10/6/15 PLM / POM 12

$37,523**

*Annual salary data from Positively Minnesota – DEED **Living Wage data in St. Louis County from MIT – livingwage.mit.edu

*

*

*

Living Wage

Project investment since 2006

10/6/15 PLM / POM 13

$ 44 million wages and consulting

88 million environmental (permitting)

111 million other (mine plan, mill, mineral rights, etc.)

243 million total

What’s the plan?

10/6/15 PLM / POM 14

Open new mine in mining zone

10/6/15 PLM / POM 15 PLANT SITE

FLOTATION

TAILINGS BASIN

MINE SITE

Embarrass River

Partr

i dge

Riv

er

Wym

an

Cre

ek

Seco

nd

C

reek

Spring

Min

e

Cre

ek

Longnose

Creek

T

rimb

leCre

ek

S tubbleC

reek

South Branch Partridge River

Wetle

gs

Cre

ek

Mud LakeC

re

ek

Rid

ge

Cre

ek

Ste

ph

en

sC

reek

Colv

inC

reek

YelpCreek

Fir

stC

reek

Unna

med

Cre

ek

Bea

r Cre

ek

Heikkilla

Creek

Second

Cre

e

k

Part

ridge R

iver

Unnamed Creek

135

456721

Barr

Foo

ter:

Arc

GIS

10.

3, 2

015-

02-1

9 11

:39

File

: I:\C

lient

\Pol

yMet

_Min

ing\

Wor

k_O

rder

s\A

genc

y_P

refe

rred

_Alte

rnat

ive\

Map

s\M

ISC

\Clie

nt_R

eque

sts\

2015

_02_

19\P

roje

ct S

ite.m

xd U

ser:

arm

2

Project AreasProposed Project Features2013 DNR Mining FeaturesDunka RoadExisting Private Railroad

PROJECT SITENorthMet Project

Poly Met Mining Inc.Hoyt Lakes, MN

I0 1 20.5

Miles

Reuse existing infrastructure

10/6/15 PLM / POM 16

Project status What’s next?

10/6/15 PLM / POM 17

Environmental Review

10/6/15 PLM / POM 18

ENVIRONMENTAL PROTECTION AGENCY

U.S. ARMY CORPS OF ENGINEERS U.S. FOREST SERVICE U.S. FISH

AND WILDLIFE

TRIBAL GOVERNMENTS EIS

MN DEPARTMENT OF NATURAL RESOURCES

MN POLLUTION CONTROL AGENCY

MN DEPARTMENT OF HEALTH

FEDERAL STATE

COOPERATING CO-LEAD CO-LEAD CONSULTING

COOPERATING

LEAD CONSULTING CONSULTING

Positive EPA letter (June 22 PFEIS)

•  Aug 5, EPA letter states: “ The PFEIS reflects many improvements to the project, and to the clarity and completeness of the environmental review.” “ Our extensive discussions with the co-lead and cooperating agencies have helped to resolve virtually all of our previous comments..”

10/6/15 PLM / POM 19

Path Forward: Complete Environmental Review and Permitting

10/6/15 PLM / POM 20

DNR (MEPA Review)

• FEIS (Nov 2015)

• Adequacy Decision (Feb 2016)

USFS

• FEIS (Nov 2015)

• Record of Decision

• Execute Land Exchange

USACE

• FEIS (Nov 2015)

• Record of Decision

• Issue CWA 404 Wetland Permit

Major State Permits

10/6/15 PLM / POM 21

Permit to Mine

Wetlands

DNR

Air

NPDES/SDS

401 Wetland Certificate

MPCA