PROJECT DESCRIPTION DETAILED EXECUTIVE SUMMARY GOLIATH GOLD PROJECT, TREASURY METALS INC. November 26, 2012

Submitted to: Canadian Environmental Assessment Agency Ministry of Northern Development and Mines

EXECUTIVE SUMMARY Treasury Metals Incorporated (Treasury, TML or the proponent) is a public gold exploration and development company focused on its 100% owned Goliath Gold Project (Project) located in the Kenora Mining District in northwestern Ontario. The Project is a newly discovered gold resource with an NI 43-101 compliant resource of 1.6 million ounces of gold with an additional 5 million ounces silver by-product in the Inferred and Indicated categories combined. The Project is based approximately 8 km northwest of the village of Wabigoon or 20 km east of the city of Dryden, within the Eagle-Wabigoon-Manitou greenstone belt and 2 km from the Trans-Canada Highway 17. The district is also home to a number of other major gold deposits. The Project proposes the development, construction, operation and closure of a gold mine that would process 2,500 tonnes per day of gold bearing rock and any of the associated infrastructures. The processing method will be a front end gravity circuit followed by a Carbon In Leach (CIL) circuit. In total, the footprint of the Project will be approximately 300 hectares. In accordance with the Canadian Environmental Assessment Act of 2012 (the Act) Treasury is submitting this Project Description (PD) to the Canadian Environmental Assessment Agency (CEAA) to initiate the environmental assessment (EA) process under the Act. This PD will also be submitted to the Ministry of Mines and Northern Development (MNDM) to initiate the provincial environmental and permitting requirements. The PD describes the overall scope of the project including mining and processing methods, a general overview of the current physical and biological conditions of the project site, any land uses associated with the area, a record of consultation to date and a summary of the regulatory process. This executive summary is being submitted to both CEAA and MNDM as part of the PD and will be used for public consultation purposes.

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Figure 1 - Regional Map

CORPORATE ADDRESS OF PROPONENT Treasury Metals Inc. Mr. Martin Walter, President and Chief Executive Officer 130 King St West, Suite 3680, P.O. Box 99 Toronto, Ontario M5X 1B1 Tel: (416) 214-4654 E-mail: [email protected]

CONTACT FOR EA PURPOSE Treasury Metals Inc. – Goliath Project Mr. Norm Bush, Vice President, Goliath Project P.O. Box 783 Dryden, Ontario Canada, P8N 2Z4 Tel: (807) 938-6961 E-mail: [email protected]

REGULATIONS DESIGNATING PHYSICAL ACTIVITIES In accordance with the Canadian Environmental Assessment Act of 2012, the proposed project, at 2,500 tonnes per day (tpd), will fall under the Section 15(c), for a gold mine, other than a placer mine, with an ore production capacity of 600 tpd or more. Treasury anticipates that no other sections in the Act will apply. Other Relevant Information Treasury understands that the Project will be subject to Class EAs at the provincial level. Permits are also required at the provincial level for the development of the Project. The Project covers an area that is part of the Dryden Forest Management Plan. Through consultation with CEAA, MOE and MNR it was found that there are no other known regional environmental studies within the Project area. A list of anticipated Federal authorizations can be found in Table 1 - Federal Authorizations.

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Agency

Act / Regulation

Canadian Environmental Assessment Agency

Canadian Environmental Assessment Act

Environment Canada

Metal Mining Effluent Regualtions

Fisheries and Oceans Canada Fisheries and Oceans Canada

Fisheries Act Fisheries Act

Fisheries and Oceans Canada; Environment Canada

Fisheries Act

Environment Canada Transport Canada TSSA

Permit / Approval

EA approval

Fisheries Compensation Agreement Fisheries Act Authorization Deposition of a Deleterious Substance to Natural Waters Frequented by Fish Alternatives Assessment for Mine Waste Disposal

Transportation of Dangerous Goods Act Sec.31, TDG Regs Pt Permits of Equivalent Level of Safety 14 Technical and Safety Standards

Applicability to Project (Trigger)

Anticipated Requirement for the Project (Yes/Uncertain)

gold mine producing >600t/day is 'designated project'

Yes

regulatory requirements

Yes

replacement of lost fish habitat fish habitat disturbance

Yes Yes

effluent disposal to waterbodies

Yes

selection of tailings facility

Yes

compliance; transportation of dangerous goods

Yes

fuel handling and storage

Yes

Table 1 - Federal Authorizations

PHYSICAL WORKS OF THE PROJECT The major physical features of the Project are shown in Table 2 - Major Physical Features of the Project and Figure 2 - Site Layout below and subsequently described in more detail. Open Pit One open pit will be constructed with three distinct pit bottoms over an approximate 5 year period. The combined pits will cover a total area of approximately 400,000 m2 and have depths of between 130 and 180 metres. The pit bottoms will be mined in sequence to create opportunities for the backfill of waste material from previous pit material once the final pit bottom has been reached. Approximately 25,000 tpd of both ore and waste will be moved from the pit. The mine will require pit dewatering during mine operations from surface and ground water inflows. Where possible, this water will be used for Plant processing.

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Project Component

Open Pit Mining

Underground Mining

Ore Stockpiles

Comments

Included in Regulations Designating Physical Activities by CEAA

Alternatives

Yes - Section 15(c) - The construction, One primary pit , approx. 130-180m in operation, decommissioning and depth, 1.5 km on strike, 46 million abandonment of a gold mine with a tonnes production of 600 t/d or more

None

Yes - Section 15(c) - The construction, operation, decommissioning and abandonment of a gold mine with a production of 600 t/d or more

None

No

None

No

None

Yes - Section 15(c) - The construction, operation, decommissioning and abandonment of a gold mine with a production of 600 t/d or more

None

Ramp access with portal location to minimize footprint, truck haulage to surface, longhole stoping

Adjacent to Processing Plant to minimize footprint, 1.8 million tonnes, 62,500 m2 footprint

Waste Rock Storage Area

Directly north of open pit, 25 million tonnes with 675,000 m2 footprint

Processing Plant Site

South of open pit, 18,000 m2 footprint, 2,500 tpd, Gravity C.I.L.

Tailings Storage Facility

600,000 m2, Blackwater Creek Tributary #3

Explosives Manufacturing and Storage Facility

Intersection of Norman's and Tree Nursery Roads

Yes - Section 15(c) - The construction, Yes - Several Options operation, decommissioning and detailed in Alternatives abandonment of a gold mine with a Section of report production of 600 t/d or more No

Yes - Location to be confirmed

Makeup Water Intake and Pipeline Insulated pipeline from Thunder Lake

No

None

Site Power

Electrical Substation from HydroOne M2D line

No

None

Project Access Roads

Tree Nursery Rd. via Anderson Rd.

No

None

Table 2 - Major Physical Features of the Project

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Figure 2 - Site Layout

Underground Mine An underground (UG) mine will be developed during the initial years of open pit operations and once in operation will have a mine life of approximately 7 years. It is intended that all mobile equipment access will be via a portal and ramp to a final UG mining depth at 600 m below surface. Mining will be done by conventional mining methods such as long-hole stoping with cemented backfill. Ventilation raises will also be driven during the mine development with the associated fans and fixed equipment on surface to support the underground operations. Approximately 1,800 tpd of rock will be hauled to surface using a dedicated fleet of underground trucks. Some open pit waste may be backhauled underground for use as backfill. Processing Plant The plant site is to include an ore processing plant and ancillary support facilities such as an electrical substation, an assay laboratory, a small warehouse, mine dry facilities and administrative offices. The daily production rate of the Processing Plant will be in the order of 2,500 tpd. A Jaw crusher including the associated ore bin will act as the primary crusher followed by a Semi-Autogenous Grinding Mill (SAG Mill) and a Ball Mill. All of the crushing systems will include enclosures and dust suppression systems. The succeeding plant process will be an initial front end gravity circuit to recover free gold followed by a standard Carbon In Leach (CIL) system using direct cyanidation. The general footprint of the plant site will be approximately 18,000 m2. As a final product, a gold and silver concentrate will be smelted to produce a Dore bar and shipped off-site by truck for further refining. All tailings material will be treated by a cyanide destruction process prior to transport to the tailings storage facility. Ore Stockpiles and Waste Rock Storage Areas In order to maintain a consistent Run of Mine (ROM) feed to the process plant, a low-grade stockpile (LGS) with a capacity of 1.8 million tonnes will be created. The LGS will be maintained throughout the initial years of mining and will be used to blend with underground

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material until it is wholly consumed and fed to the process plant in Year 10. Up to three additional, separate temporary stockpiles of varying grade will also be used to feed the process plant. As noted, these stockpiles will be temporary in nature with constant replacement/turnover. They will collectively, have a total capacity of approximately 15-30 days or 37,500 tonnes. A waste rock storage area will be built directly to the north of the proposed open pit. It will have a capacity of approximately 12.8 million m3 or 26 million tonnes and have a footprint of 675,000 m2 with a height of approximately 20 m. This will account for approximately 60% of the waste rock produced during mining. The additional 40% of waste rock removed will be backfilled to the open pit area. Design slopes have been set at 3:1 ratios to create a more natural appearance and total heights will be kept as low as possible to reduce the potential visual impact for neighboring residents, in particular, the residents on the west side of Thunder Lake. Progressive reclamation will also commence as early as possible in the development of the WRSA. This will not only be an advantage from an environmental perspective, but will also help to create a natural looking landscape. Tailings Storage Facility The Tailings Storage Facility (TSF) will have an approximate total volume of 10 million m3 and an approximate final footprint of 600,000 m2. Due to the flat nature of the terrain, a compound style dam – one which will have a primary dam structure on the downstream side with a secondary dam containing the upstream flooding to create a deeper TSF with a subsequently smaller footprint – will be constructed with the area gradually sloping to the south. The base case location of the TSF is in the watershed of Blackwater Creek. There is one watercourse that crosses the TSF, a small creek where only seasonal flow occurs. A pipeline will also be constructed for the transport of Process tailings from the Plant site to the TSF. The pipeline will be approximately 1.3 km in length and will be constructed generally parallel to the current Tree Nursery Road.

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Makeup Water Pipeline Where possible, plant process water will be sourced from recycled water or taken from mine dewatering operations. However, it is possible that additional water will be required for continued operation of the process plant. If makeup water is required, it will be obtained from either ground water wells close to the plant site or via a pipeline that will be constructed for the transport of this water from Thunder Lake to the process plant. Site Power Treasury intends to construct an electrical substation to obtain power from the 115 kV Hydro One power line that runs past the Project site. No additional power lines are to be constructed. Natural Gas Pipeline It is anticipated that the Project will use natural gas primarily for the heating of mine air for the underground operations. A pipeline is proposed from a connection point at the TransCanada pipeline, which runs in parallel to Highway 17, to the project site. The proposed route is to follow Anderson Road and Tree Nursery Road to the Project. Project Access Roads Access to the project will be Tree Nursery Road via Anderson Road. These municipally controlled roads have been designed for industrial use, therefore no road upgrades are proposed. The final 2.5 km northern section of Tree Nursery Road will be closed to public use at the mine entrance security gate. Two mine access roads, approximately 2.5 km each, will be constructed surrounding the open pit and TSF for light duty use. No water crossings will be required for these two access roads. Other Associated Infrastructure A fuel farm, warehouse facility, mobile equipment maintenance shop, an explosives magazine, sewage treatment facility and a laydown facility will be constructed to support mining

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operations. All administration will be managed from the current Project Office and where possible, the current warehousing facilities and laydown areas at the Project Office will be used.

EMISSIONS, DISCHARGES AND WASTE There will be two primary types of atmospheric emissions due to the development of the Project. Dust will be created by construction and mining activities such as drilling and blasting or material transportation or dust will be raised by wind blowing across the mine site, atmospheric emissions in the form of greenhouse gases will be produced by the combustion of fossil fuels in engines associated with mining equipment, light vehicles and stationary surface equipment and activities such as the process plant equipment, mine blasting as well as natural gas heaters for mine intake air among others. An air dispersion model will be developed to more clearly define the sources and types of atmospheric contaminants for both the Environmental Assessment and for any applicable Environmental Certificate of Approval (ECA) applications for air emissions through the Ontario Ministry of Environment (MOE). The liquid discharges for the Project will be treated water from the TSF and site runoff water. Any water from site runoff that does not meet regulatory qualities will be collected and managed, as per a surface water management plan, using a series of catchments, ditches and culvert drainages and treatment before the safe release into the natural environment. It is anticipated that this runoff water will report to the TSF for said treatment. Water discharge from the TSF will be treated accordingly before the safe release into the natural environment. It is anticipated that this discharge will be directed away from any Thunder Lake watershed, principally to the Blackwater Creek watershed. The water bodies/courses that fall within the watershed for the site runoff management plan are Blackwater Creek – which flows into Wabigoon Lake – and several Thunder Lake tributaries on the east side of Thunder Lake. These can be seen in Figure 6 - Local Watershed.

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Sewage Management will be accomplished by both a potential sewage treatment facility to be constructed onsite and by storage at the current septic system before transport to an offsite disposal facility. Solid, non-recyclable, non-hazardous waste and recyclable material will be stored at a dedicated temporary facility before transport to an offsite landfill facility. Hazardous waste, such as used oils and lubricants or hydraulic fluids, will be temporarily stored onsite before transport for disposal at a government approved offsite facility.

PROJECT DEVELOPMENT SCHEDULE The Project is effectively broken into 4 phases: site preparation, construction, operation and reclamation. In total, site preparation should be completed over a four to six month period, project construction will be completed over a twelve to sixteen month period, mine operations are currently scheduled for a ten to twelve year mine life, and, the reclamation phase should take no more than two years to complete, but will be further defined in the closure plan. All activities during the site preparation phase will be carried out with a high attention to appropriate environmental practices as defined by an environmental management plan. Administration duties for all phases will be conducted using the current Project office. For the site preparation phase, all access will be via Tree Nursery Road; therefore, limited access roads or electrical power upgrades will need to be constructed. There will be a small amount of clearing and grubbing of trees and overburden removal on the mine, processing plant and TSF areas. This material will be placed and stored in a separate location for the possible future use in site reclamation. Several rudimentary access roads will be constructed to allow access of the heavy forestry machinery in this phase. It is anticipated at this time that these roads will not require any water crossings. It will be during this phase that engineering design will be completed and long lead time items will be purchased. Directly following the respective activities of site preparation and upon receipt of the applicable permits and approvals, Treasury will begin the project construction phase of the Goliath Project. Access to the Project office will remain via Tree Nursery Road in its current form. Two small “ring” access roads, surrounding both the open pit and the TSF, will be required to be built

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during the construction phase. An electrical substation will be built adjacent to the proposed plant site, approximately 400 m from the main line. Several buildings will be constructed, including: structures; to house the mine crusher system, ball mill and associated conveyor systems; truck shop for mobile mine equipment; warehouse; mine rescue/ambulance station; and, a cold storage/laydown area. An initial dam structure will be built for the TSF during the construction phase of the Project. This dam will be located to the east of Tree Nursery Road and south of Norman’s Road and will be approximately 500 metres in length and 7.0 metres in height. Blasting will be required for the underground portal construction and will be done using typical techniques. During the construction phase, a sewage waste management facility and fuel farm will be built. A natural gas pipeline will be constructed for use in future production operations. This pipeline will be overland and is being designed in conjunction with Union Gas, which is the sole provider of natural gas in the Dryden area. Initial mining in the production phase will begin by open pit methods with underground development activities starting immediately. The process plant will process a total of approximately 4,500,000 tonnes of open pit material over the first 5 years and an additional 4,500,000 tonnes of UG material over the 10+ year mine life. The three pits will be mined in sequence to allow for maximum backfill to be placed within the final pit bottoms. Throughout the open pit mine life, the 1.8 million tonne low grade stockpile will remain active for both storage and a blend material for the process plant. Once open pit operations have finished, the low-grade stockpile will be used as a blend with underground material to feed the mill until the stockpile has been completely exhausted. All underground access will be via ramp decline from the portal. Based on industry standards, it is anticipated that initial ramp and lateral development will last approximately 2 years. Underground development will also include vertical raises to be used for a combined purpose of ventilation and emergency egress. These ventilation raises will be complete with all associated high horsepower ventilation fans and natural gas mine air heaters.

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Underground production will begin in approximately Year 3 immediately following ramp and lateral development for access to the ore body and continue for the subsequent seven years until the end of the mine life. The waste rock storage pile will be maintained throughout the mine life with approximately 60% of the total waste rock stored at a surface facility, while the remaining 40% will be backfilled to the completed pits. Progressive reclamation of the waste rock storage area will be ongoing and it is anticipated that it will be complete before the end of the underground mine life. Reclamation will be done by covering the waste rock with previously stored overburden and biomass to create natural looking features while letting the completed open pit fill naturally with water. All mobile and stationary mine and mill equipment will be disassembled and either sold or transported offsite for disposal. At the end of underground mine operations, the mine will be closed, including removal of all hazardous materials and equipment including mine dewatering equipment and surface ventilation equipment, and blocking the portal to prevent all access. Prior to construction and operation, a closure plan will be defined and certified as per Ontario Regulation (O.Reg.) 240/00 as amended by O.Reg. 194/06 “Mine Development and Closure under Part VII of the Mining Act” and “Mine Rehabilitation Code of Ontario”.

PROJECT LOCATION The Goliath Gold Project is located in northwestern Ontario, approximately 8 km northwest of the village of Wabigoon or 20 kilometres east of the city center of Dryden and 2 kilometres north of Trans-Canada Highway 17, within the Kenora Mining District. The Project area includes sections of both Hartman and Zealand townships. The coordinates of the proposed Project are approximately centered on 49°45’25” N by 92°36’30” W. The Project lies on the east side of Thunder Lake. The closest residents are those of East Thunder Lake Road and Harris Crescent. Approximately 30 seasonal and fulltime residents are

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located on Thunder Lake Road with an additional 20 on Harris Crescent. The closest of these residents are approximately 800 metres and 3000 metres from the Project site respectively. The Project Area consists of two historic properties, the “Thunder Lake Property” and the “Laramide Property”, both within the Kenora Mining Division. The Goliath Gold Project includes a total area of approximately 4976 hectares, comprising 4064 hectares of 137 unpatented land claims and 20 patented land claims for the remainder. Treasury holds the entire project subject to specific royalties on 13 of the patented land parcels. These specific royalties are generally in the form of a Net Smelter Royalty (NSR), with some of the patented land parcels receiving an advanced royalty. Treasury also owns the former MNR tree nursery property. The property for the Project is not currently being used for any traditional purposes by local aboriginal peoples. The closest aboriginal groups to the project are the Wabigoon Lake Ojibway Nation and the Eagle Lake First Nation. These reserves are located approximately 10 km and 30 km from the Project site respectively. The Wabigoon Lake Ojibway Nation currently continues the practise of wild rice harvesting. The location of both groups and the known harvest areas are shown in Figure 3 - Regional First Nations and Figure 4 - Wild Rice Harvest Areas. The closest known location of wild rice harvesting is approximately 4,500 metres from the Project site.

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Figure 3 - Regional First Nations

Figure 4 - Wild Rice Harvest Areas

GOVERNMENT FUNDING AND INVOLVEMENT No federal funding will be required for this Project. It is anticipated that a Federal EA will be required for the Project with authorizations expected for the Metal Mining and Effluent Regulations under the Fisheries Act and the Explosives Act. No federal land will be required for the Project. No airfields will be constructed as part of the Project and no pipeline or international power transmission line greater than 40 km, which fall under the regulations of the National Energy Board (NEB), will be constructed. A schedule 2 amendment of the Fisheries Act may be required for the authorization for destruction of fish habitat. An explosives manufacturing facility will be constructed for the purpose of supporting production mining. A license from Natural Resources Canada (NRCan) will be required under paragraph 7(1) of the Explosives Act. The magazine will also require consent of the Director of Operations of the Canadian Transportation Agency under the Canada Transportation Act Section 6(1) for the construction of a storage facility with a capacity of less than 200 tons. It is unclear at this time whether this will be the responsibility of Treasury or the responsibility of an external contractor that will be in charge of supply, delivery, storage and firing of explosives. It is anticipated that the Project will be subject to Provincial Class EAs and will be subject to several regulatory and permitting requirements under the Province of Ontario including a Permit to Take Water and an Environmental Compliance Approval. A full list of permitting requirements will be developed in conjunction with the applicable provincial agencies throughout the EA process. The anticipated list of permitting requirements is found below.

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Agency

Act / Regulation

Permit / Approval

Hazardous Waste Inventory Network

Environmental Generator Registration Protection Act, O.Reg. Number 347/90

Ministry of Labour

Occupational Health and Safety Act, O.Reg. 854/90

Ministry of Labour

Occupational Health and Safety Act, O.Reg. 213/91, Sec 23(2)

Applicability to Project (Trigger)

storage, disposal of hazardous wastes

Safety and procedures Pre-development review review prior to project process deleopment

Anticipated Requirement for the Project (Yes/No/Uncertain) Yes

Yes

MNR

MNR MNR

Notice of Project

required to operate

Yes

Ministry of Labour

Regulations for Mines and Mining Plants

mine and processing site; compliance

Yes

Ministry of Labour

Common Core Training

mine employees; compliance

Yes

Notification of Exploives use of explosives Use

Yes

Ministry of Labour

Regulations for use of designated Substances Designated substances under the OH&S Act

Yes

Ministry of Labour

Diamond Drilling - Notice

any diamond drilling operations

Yes

Ministry of Labour

Reportable Incident/Accident

workplace accident

Yes

Ministry of Labour

WSIB Requirements

labour

Yes

Ministry of Labour

Agency

Act / Regulation

Lake and Rivers Improvement Act, Sec.14,16

Notice of Installation of Portable Crusher

Ministry of Labour

Registration and Notice construction of Construction Projects operations

Ministry of Tourism & Culture

Ontario Heritage Act Pt IV: Conservation of Resources of Archaeological Value

Ministry of Tourism & Culture

crushing rock for construction

Uncertain

Yes

Archaeological assessment

part of EA process; required for all areas of surface disturbance

Yes

Permit for disturbance of property of historical/achaeological value

surface disturbance of sites identified by archaeological assessment

Uncertain

advanced exploration or mining; required for permit approval; involves FN & public consultation, financial assurance; progressive rehabilitation

Yes

MNDM

Mining Act Sec. 140,141, O.Reg. 240/00

Mine Closure Plan with financial assurance

MNDM

Mining Act

mining lease; mining Mining Tenure - Lease or patent; surface rights Patent lease

Yes

MNR

Fish and Wildlife Authorization Conservation Act Pt VI

MNR

Forest Fires Prevention Burn Permit Act, O.Reg. 207/96

MNR

Environmental Assessment Act Pt II.1: Class EAs

MNR

Lake and Rivers Improvement Act, Sec.14,16

Mining Act

authorization to Licence of Occupation occupy tenured land Mining for mining

Yes

MNDM

Mining Act

Notice of Project Status mine opening; closure

Yes

Public Notice

Yes

MNDM

Progressive Rehabilitation Report

report required for progressive rehabilitation of site

Yes

MNDM

Minister's Consent Destruction of Rehabilitation Works

alteration/destruction of mine rehabilitation works

Yes

MNDM

Mining Act

Requirement of Annually underground mines; Update Mine Plans compliance

MNDM

MNDM

Domestic Processing

MNDM

ML / ARD Assessment

processing and PK management

included in EA

MNR

Public Lands Act, O.Reg.973/00

Land Use Permit; also Easement Permit

use/occupation of Corwn land for project

Uncertain

MNR

Public Lands Act, Sec.20

Licence of Occupation

occupation of Crown land for project

Uncertain

MNR

Public Lands Act, Work Permit O.Reg.975/90, 453/96

MNR

Lake and Rivers Improvement Act, Sec.14,16

Authorization for Water Crossings

MNR

Lake and Rivers Improvement Act,

Work Permit

infrastructures constructed on Crown land - roads, water crossings, buildings, camp; surface water crossings; realignment of watercourses; lake dewatering

Treasury Metals Inc.

project infrastructures constructed on Crown land; disposition of Crown lands

Uncertain

Structures Approval Tailings Dam

construction of tailings dam

Yes

Licence to Collect Fish for Scientific Purposes (Scientific Collector's Permit)

collection of fish specimens for environmental monitoring

Yes

Yes

Uncertain

MOE

Environmental Environmental Protection Act, O.Reg. Compliance Approval 346/90, 337/90 Air and Noise

air and noise emissions, dust, exhaust

Yes

MOE

Environmental Environmental Protection Act Sec.27, Compliance Approval O.Reg. 347/90 Waste Management

construction of landfill or incinerator

Yes

MOE

Environmental Protection Act Sec.47(3), Ontario Water Resources Act Sec.53

sewage treatment, tailings management; dewatering; settling ponds

Yes

MOE

Environmental Metal Mining Effluent Protection Act, O.Reg. Monitoring and Effluent 560/90,561/94; Clean Limits Water Regulation

>50 000 L/day effluent discharged

Yes

MOE

MOE

Screening Level EA Power Generation

Environmental Compliance Approval Industrial Sewage Works

required spill Environmental Environmental Penalties identification and Protection Act, O.Reg. and Spill Prevention and response plans; 222/07,224/07 Contingency Plans requires approval Safe Drinking Water Approval of Works potable water system Act, O.Reg. Potable Water Supplies for camp complex 170/03,248/03

Safe Drinking Water Act, O.Reg. 170/03,248/03

MOE + MNR + Conservation Authority of Ontario MTO

Environmental Assessment Act Pt II.1: Class EAs

MTO

Public Transportation and Highway Improvement Act

Environmental Compliance Approval Industrial Works

Yes

fuel farm for operations; oil/water separators construction, Water - Wells maintenance, Regulation abandonment of water wells abnormal discharge Spiils - Requirement to into natural Notify and to Clean Up environment (spills, leaks) incinerator use; Approval of Air portable crushers for Emissions quarry operations alteration of Cut and Fill Permit waterways, shoreline stabilization for provincial road Class EA for Provincial upgrades; not Transportation Facilities applicable to on-site roads Commercial Signage Permit

signage for mine within 400m of highway

Fire Protection and required to meet fire Fire Code Requirements Prevention Act, Sec.12 code

Local Municipality

Planning Act, Sec.34(10)

Local Municipality

Uncertain

Regional Health Unit

Yes

Yes

Local Municipality Uncertain

Yes

Environmental Compliance Approval Municipal and Nonpotable water system municipal Drinking-water for camp complex Systems (Drinking Water Works Permit)

pipeline or transmission line Approval of Pipelines installation; and Transmission Lines water/tailings/effluent pipeline Leave to Construct a road / conveyor Transportation Line construction

Ontario Energy Board

Regional Health Unit bridge construction over waterway; work on / near shoreline

Uncertain

Class EA for MNR Resource Stewardship and Facility Development Projects

power generation facility 1-5 MW

Ontario Energy Board

Yes

for burning of wood debris

Environmental Assessment Act, O.Reg. 116/01

MOE

Yes

Uncertain

MOE

MOE

Yes

Yes Uncertain

Taking >50 000 L/dayfor domestic water; dewatering; construction/process water; pond dewatering

MOE

Yes

presence or potential for listed species requirements determined by consultation with MNR and by baseline study results

Yes

Ontario Water Resources Act, Permit to Take Water Sec.34, O.Reg 387/04

MOE required prior to commencement of new mining project

clearing Crown timber for construction

Anticipated Requirement for the Project (Yes/No/Uncertain)

MOE

MOE

MNDM

Applicability to Project (Trigger)

Location Approval and retaining dams; tailings Plans and Specifications dams Approval

Forest Resource Crown Forest Licence - Cutting Permit Sustainability Act Pt III for Timber Endangered Species Permits and Act Sec.16-20 Agreements

MNR

Ministry of Labour

Permit / Approval

if project falls within jurisdiction of municipal zoning Building Code Act, Building Permit construction of Sec.8 Municipality buildings Health Protection and opening of Promotion Act, O.Reg. Notice of Camp Opening camp/accommodation 554/90 s complex Small Sewage System camp sewage Approval Changes to Zoning Bylaws

Project Description – Detailed Executive Summary

Yes

Yes

Uncertain

Yes

Uncertain

Yes

Yes

Uncertain Yes

Uncertain Uncertain Yes Uncertain

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ENVIRONMENTAL SETTING AND POSSIBLE EFFECTS The development of the Goliath project and operation of the mine will have a number of potentially significant effects upon the local communities, and local First Nation peoples. Knowledge of community profiles and infrastructure capacities are critical aspects to understanding the baseline social, economic, cultural, and health aspects of the surrounding communities and the potential changes to them. Based on the 2011 census data the City of Dryden has seen a 7.1% drop in population from the 2006 census. The downturn of the forest industry has likely reduced the permanent population numbers. It is anticipated that the Project will employ approximately 200 people over the 2-year construction and development period and 150 full time workers during the 10 year mine life. Using a 4:1 multiplier for indirect to direct employment, the region could see an increase of 1,000 jobs due to the Project development. The Project site is characterized by low slopes, rolling hills and is marked by a low occurrence of streams, ponds, and marsh lands. Vegetation in the area is sparse to dense and consists primarily of conifer stands, with mixed forest as well as muskeg areas or bogs, which are common to the region. Relatively flat, silt clay glaciolacustrine deposits from postglacial Lake Agassiz make up over 60% of the Local Study Area (LSA) and 45% of the Regional Study Area. Treasury is currently measuring surface water for both flow and quality. The Project has a limited number of small creeks and streams within the general footprint, several of which exhibit only seasonal flow. The water quality is generally good with results that illustrate water bodies that are consistent with the boreal forest and Canadian Shield waters. Surface flows from the Project generally go in the direction of Wabigoon Lake or Thunder Lake. Wabigoon Lake is a large, relatively shallow and productive lake for a number of fish species with waters that are relatively warm and turbid compared to many other lakes in northwestern Ontario. Kelpyn Bay, in Wabigoon Lake, is south of the Blackwater Creek outlet and provides calm littoral water for juvenile fish. This bay has limited vegetation cover. Thunder Lake is oligotrophic with cool, clear, nutrient poor waters, with potential spawning habitat for lake trout, northern pike, whitefish, and walleye. These watersheds are seen in Figure 5 and Figure 6.

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Figure 5 - Regional Watershed

Figure 6 - Local Watershed

Fish studies and fish habitat assessments were conducted throughout the area to be affected by the Project. Fish species caught were generally bait fish with very limited amounts of larger fish species near the Project site, while larger predatory species were caught on Thunder and Wabigoon Lakes. No fish species at risk were found within the Study area. The taxa richness found during Benthic studies is relatively low (7 to 15 taxa) and is likely related to the slow moving, turbid, and soft bottomed nature of the streams with the majority of the total specimens consisting of chironomids (non-biting midges). Effects to fish species due to the project will be in the form of possible loss of habitat by developing the project, specifically in the areas of the open pit and TSF. Water discharged to the environment will meet all regulatory requirements. A total of 120 bird species were found during baseline studies, the number of migratory bird species that may be affected is in the order of 100, and 7 species at risk birds were confirmed in the Study area, although 3 species were flyovers, and it is probable that the species were migrating. Twenty different mammal species have been observed in the local study area, none of which were included in the list of species at risk. Effects to these species are related to habitat loss. Due to the relative proximity to the village of Wabigoon and the city of Dryden, among other industrial infrastructure, no significant effects on either bird species or mammal species are anticipated. Atmospheric emissions caused by the Project will be in the form of dust and emissions produced by the combustion of fossil fuels in engines associated with mining equipment, light vehicles and stationary surface equipment and activities. A detailed breakdown of anticipated quantities of each will be produced as part of the detailed engineering and environmental impact statement. Treasury is currently conducting a detailed study of ground water flows. The initial results show a possible moderately permeable rock that may be associated with a fault zone at depth while the host rock is anticipated to be of low permeability. A series of additional deep and shallow boreholes to be drilled will confirm the ground water flow and the subsequent drawdown of groundwater that will be created by mining; and, the effect on nearby residential well holes. Treasury is currently planning the study of background noise levels at the Project area and will continue to monitor these conditions as the project progresses. Treasury Metals Inc.

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The following table outlines the possible effects of the Project as related to the specific components: Physical Activity / Infrastructure

Anticipated Effect of Development - Potential loss of habitat and habitat suitability for potential species within area. - Potential loss of suitable habitat for potential SAR and migratory species as defined in MBCA. - Potential of discharge to Blackwater Creek Tributary #1. Open Pit - Potential of HADD of fish and fish habitat as associated with changes to Blackwater Tributary #1. - Potential of water quality changes associated with discharge to Blackwater Creek Tributary #1. - Potential emissions, dust and noise effects. - Potential loss of habitat and habitat suitability for potential species within area. Underground Mining - Potential loss of suitable habitat for potential SAR and migratory species as defined in MBCA. - Potential emissions, dust and noise effects. - Potential loss of habitat and habitat suitability for potential species within area. Ore Stockpiles - Potential loss of suitable habitat for potential SAR and migratory species as defined in MBCA. - Potential loss of habitat and habitat suitability for potential species within area. - Potential loss of suitable habitat for potential SAR and migratory species as defined in MBCA. Waste Rock Stockpiles - Potential of discharge to Blackwater Tributary #1, and Blackwater Creek. - Potential of HADD of fish and fish habitat as associated with changes to Blackwater Tributary #1 and Blackwater Creek. - Potential loss of habitat and habitat suitability for potential species within area. Overburden Stockpiles - Potential loss of suitable habitat for potential SAR and migratory species as defined in MBCA. - Potential loss of habitat and habitat suitability for potential species within area. Processing Plant - Potential loss of suitable habitat for potential SAR and migratory species as defined in MBCA. - Potential emissions, dust and noise efffects. - Potential loss of habitat and habitat suitability for potential species within area. - Potential loss of suitable habitat for potential SAR and migratory species as defined in MBCA. - Potential loss and change to Blackwater Tributary #2 and Blackwater Creek. - Potential of HADD of fish and fish habitat as associated with changes to Blackwater Tributary #2 and Tailings Storage Option Area #1 Blackwater Creek. - Potential of water quality changes associated with discharge to Blackwater Tributary #2 and Blackwater Creek. - Potential for HADD events as defined by the FA entering Wabigoon Lake. - Potential loss of habitat and habitat suitability for potential species within area. Mobile Equipment Storage Area - Potential loss of suitable habitat for potential SAR and migratory species as defined in MBCA. - Potential loss of habitat and habitat suitability for potential species within area. Warehouse and Inventory Storage Area - Potential loss of suitable habitat for potential SAR and migratory species as defined in MBCA. - Potential loss of habitat and habitat suitability for potential species within area. - Potential loss of suitable habitat for potential SAR and migratory species as defined in MBCA. Fuel Farm - Potential for HADD of fish and fish habitat as defined by the FA to Blackwater Creek, and Blackwater Creek Tributaries. - Potential loss of habitat and habitat suitability for potential species within area. - Potential loss of suitable habitat for potential SAR and migratory species as defined in MBCA. Natural Gas Pipeline - Potential for HADD of fish and fish habitat as defined by the FA to Blackwater Creek, and Blackwater Creek Tributaries. - Potential loss of habitat and habitat suitability for potential species within area. Makeup Water Pipeline - Potential loss of suitable habitat for potential SAR and migratory species as defined in MBCA. - Potential for HADD of fish and fish habitat as defined by the FA to Thunder Lake. - Potential loss of habitat and habitat suitability for potential species within area. - Potential loss of suitable habitat for potential SAR and migratory species as defined in MBCA. Project Roads - Potential for HADD of fish and fish habitat as defined by the FA to Hughes Creek, Blackwater Creek, Blackwater Creek Tributaries and Hoffstrom's Bay Creek. - Potential loss of habitat and habitat suitability for potential species within area. Explosives Plant - Potential loss of suitable habitat for potential SAR and migratory species as defined in MBCA. - Potential loss of habitat and habitat suitability for potential species within area. Electrical Substation - Potential loss of suitable habitat for potential SAR and migratory species as defined in MBCA. MBCA – Migratory Bird Convention Act, FA – Fisheries Act, SAR – Species at Risk, HADD – Harmful, Alteration, Disruption or Destruction

Table 3 - Possible effects of the Project

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ABORIGINAL CONSULTATION Treasury understands that Aboriginal consultation represents not only a requirement in the permitting and EA process but also a great opportunity to engage and prepare the local Aboriginal communities as potential future employees and business associates. It is seen as a great benefit for all parties to engage in training programs that will allow for development of Aboriginal youth and others to develop skills that will enable them to participate as employees directly in the Project. It is also important to understand any potential impact the Project may have on traditional uses of the land and areas of cultural significance. In this regard, Treasury began the discussion and consultation process as early as 2008 and is presently continuing to reach out to the various local Aboriginal groups. It is Treasury’s intention to be actively engaged in the consultation process throughout all phases of the mine life from development to closure and reclamation. The Wabigoon Lake Ojibway Nation (WLON), the Eagle Lake First Nation (ELFN) and the Métis Nation of Ontario (MNO) have been the principal groups with whom Treasury has focused its consultation efforts. The criteria to identify these groups include: Aboriginal groups that are in closest proximity to the proposed mine site, attend school in the Wabigoon/Dryden area, do their primary shopping in the immediate area and use Wabigoon and Dryden as their primary source of medical and other services. The other First Nations groups considered were Lac Seul First Nation and Wabauskang First Nation. The Wabauskang First Nation was not consulted due to their relative distance from the Project and closer proximity to other communities such as Red Lake. In the case of Lac Seul, it would appear that this band is more closely associated with the community and area of Sioux Lookout. Treasury Metals did participate in a career fair on the Frenchmen’s Head reserve at the request of Lac Seul First Nation on April 12, 2012. Given their expressed interest in possible future employment at the mine site, Treasury Metals would intend to keep these First Nations informed of job opportunities as they arise.

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While no formal agreements have been made with WLON, Treasury is very interested in continuing discussion with WLON and has requested the help of the Ministry of Northern Development and Mines to facilitate this process. WLON has expressed concern that the Project will take place on traditional lands and has requested access fees for drilling on these lands. The Project is in its early stages and although significant issues remain, the company expects that these will be resolved through the consultation discussions with the First Nations and government agencies in the EA process. Consultation began with Eagle Lake First Nation in August of 2011 and has been positive to date. Eagle Lake First Nation has been very receptive to the development of training programs as well as various other initiatives to boost community involvement in the mining industry. Treasury has met with the MNO for the introductory of a series of meetings in the consultation process. At this meeting, MNO gave a brief presentation on the history, values and governing structure of the MNO and Treasury partook in the opportunity to give an overview of the Project. Treasury has continued interest in meeting with MNO and will continue to accommodate meetings between the parties. Effects to local Aboriginal peoples, specifically First Nations and Métis, related to the project are anticipated to be largely socio-economic. These impacts would be in the form of jobs and business opportunities that would result from the exploration activities and the opening of a mining operation. Treasury is very interested in having a workforce that is inclusive and generally represents the demographics of the local Wabigoon/Dryden area. The hiring of local Aboriginal peoples as the project develops and the mine operation opens, would represent a key opportunity for all involved. Treasury is also interested in and supportive of local services or businesses provided by Aboriginal bands or companies, assuming that quality and cost competitiveness requirements are met. With appropriate qualifications, local Aboriginal peoples will have an important opportunity for further employment within the communities. To date, WLON is the only First Nations band to state that the Project will take place on in their traditional lands. Eagle Lake First Nations has indicated that there are approximately 30

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members of their band that live in the municipality of Wabigoon, which puts them in close proximity of the proposed mine site. Although this may not be considered ELFN traditional lands, their members may be impacted by the operation of a mine. Treasury will have further dialogue with ELFN on this subject in the EA process. The Métis Nation of Ontario has also indicated that the area of the proposed mine site is part of their traditional land use area. A first consultation meeting has been held with the MNO and further meetings will be held to understand what these traditional uses are or have been. Although verbal comments have been made by local Aboriginal communities that the project may have effects on them, Treasury has not been made aware any specific effects at this time. It is expected that future consultation meetings will provide more clarity on this subject.

PUBLIC CONSULTATION Treasury realizes that public consultation is a very important part of the Environmental Assessment process. It is essential for a project to have the support of the local community to responsibly comprehend and develop the project as an overall benefit to all parties involved. There are key stakeholder groups with whom Treasury must consult. For the purposes of the Project, three principle groups have been identified. These include government (federal, provincial, municipal), local communities (local community groups, local First Nations, land owners, natural resource users) and the public in general (interested individuals and nongovernmental organizations). Treasury has made several presentations to the municipal councils of both Dryden and Wabigoon and has been in direct contact with applicable government agencies such as the Canadian Environmental Assessment Agency (CEAA), the Department of Fisheries and Oceans (DFO), the Ministry of Northern Development and Mines (MNDM), the Ministry of Natural Resources (MNR) and the Ministry of Environment (MOE). To date, these proactive consultations have shown to be extremely beneficial, and Treasury intends to utilize these government resources wherever possible. A summary of these discussions can be found in the following tables:

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Primary Department/Agency and Type of Consultation Department/Agency Names Involved in Activity Involved Consultation Activity

Date of Consultation Activity

Name(s) of Specific Representative(s) for TML

Purpose of Consultation Activity

Key Issues Raised/Subjects Discussed

20/01/2012

Mac Potter (TML), Ashley Martin (TML), Laura Ritchie (DST Consulting)

CEAA

CEAA - Steve Woolfenden

Teleconference

Information regarding permitting process

Discussed the stages of premitting in regards to project description, and future permitting needs.

13/07/2012

Mark Wheeler (TML)

CEAA

CEAA - Steve Woolfenden

Meeting - in person

Information Regarding EA

Discussed the stages of premitting in regards to project description, and future permitting needs.

07/08/2012

Mac Potter, Mark Wheeler (TML), Laura Ritchie

CEAA

CEAA

Teleconference

Information regarding new regulations

Teleconference with Ontario representatives regarding new regulations and changes to CEAA Act.

10/08/2012

Mac Potter, Mark Wheeler, Norm Bush

CEAA

CEAA - Steve Woolfenden, CEAA Amiel Blajchman

Teleconference

Project Description and future permitting requirements

Teleconference with CEAA representatives regarding information and details of PD, and future EIS requirements.

27/08/2012

Mark Wheeler, Norm Bush, Mac Potter, Martin Walter

CEAA

CEAA - Amiel Blajchman, CEAA - Anjala Puvananathan

Email

Draft PD

Draft PD delievered for preliminary comments.

04/09/2012

Mark Wheeler, Norm Bush, Mac Potter

CEAA

CEAA - Amiel Blajchman, CEAA - Stephanie Davis, Patick Barnes (MNDM)

Email

Draft PD comments

Draft PD comments received.

04/09/2012

Mark Wheeler (TML)

CEAA

CEAA - Amiel Blajchman

Phone Call

Draft PD comments

Update on Draft PD

14/09/2012

Mark Wheeler, Norm Bush

CEAA

CEAA - Amiel Blajchman

Teleconference

Draft PD comments

Clarification on Aboriginal Consultation

24/09/2012

Mark Wheeler (TML)

CEAA

CEAA - Amiel Blajchman

Phone Call

Draft PD comments

Update on Draft PD

24/10/2012

Norm Bush, Mark Wheeler (TML)

CEAA

CEAA - Amiel Blajchman

Phone Call

Draft PD comments

Clarification on comments

Table 4 - Consultation (Canadian Environmental Assessment Agency)

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Date of Consultation Activity

Location of Consultation Activity

20/01/2012 - Current

Name(s) of Specific Representative(s) for TML

Primary Department/Agency Involved

Department/Agency and Names Involved in Consultation Activity

Type of Consultation Activity

Purpose of Consultation Activity

Key Issues Raised/Subjects Discussed

Mac Potter, Norm Bush, Rory Krocker, Mark Wheeler

MNR

MNR - Dorothy Brunner, MNR - Lisa Eddy, MNR - Matt Bensen, MNR Marlene Rhyner, MNR - Colin Langford, MNR - Wanda Thickner

Email

Information sharing and details

Data sharing agreement details, scheduling, baseline review, and information requests.

31/01/2012

MNR Office, Dryden, ON

Mac Potter

MNR

MNR - Dorothy Brunner

Meeting - in person

Information request

Requested the lake files for the area, and looked over the details the MNR has of the project area.

23/03/2012

MNR Office, Dryden, ON

Mac Potter, Norm Bush

MNR

MNR - Dorothy Brunner, MNR - Matt Bensen

Meeting - in person

Data sharing Agreement

Met to discuss Data Sharing Agreement, and sign accordingly.

04/09/2012

MNR Office, Dryden, ON Mac Potter, Kyle Rodgers

MNR

MNR - Lisa Eddy

Meeting - in person

Fisheries Program

Met to discuss needed components of fisheries work and plan details in accordance with MNR needs.

Table 5 - Consultation (Ministry of Natural Resources)

Date

Name(s) of Specific Representative(s) for TML

Department/Agency and Names Involved

Type of Consultation Activity

Purpose of Consultation Activity

Key Issues Raised/Subjects Discussed

11/07/2012

Mark Wheeler, Mac Potter, Norm Bush

DFO - Neville Ward

Email

Introduction

Name raised in MNDM meetings, email to correspond and introduce company to DFO.

11/07/2012 - Current

Mark Wheeler, Mac Potter, Norm Bush

DFO - Neville Ward, DFO - Tom Kleinboeck

Email

Information, Baseline Overview

Draft KCB baseline data passed on and reviewed for content.

16/07/2012

Mark Wheeler (TML)

DFO - Neville Ward

Phone Call

Information regarding changes to Fisheries Act

14/08/2012

Mac Potter, Rory DFO - Neville Wartd, Tom Kleinboeck, MNR Krocker, Norm Bush, Dorothy Brunner Mark Wheeler

Site Visit

Site Visit

Email correspondence regarding permitting and rehabiliation plan details. Discussion of Fisheries Act Changes. Visual inspection of facilities and areas.

Table 6 - Consultation (Department of Fisheries and Oceans)

Date of Consultation Activity

Location of Consultation Activity

Name(s) of Specific Representative(s) for TML

Department/Agency and Names Involved in Consultation Activity

Type of Consultation Activity

Purpose of Consultation Activity

Key Issues Raised/Subjects Discussed

22/03/2012

Dryden Project Office

Mark Wheeler, Norm Bush, Mac Potter

Shawn Burr

Meeting - in person

Introduction

Site visit by Shawn Burr to explain Treasury and show him the site.

02/05/2012

Dryden Project Office

Mark Wheeler, Norm Bush, Mac Potter

Shawn Burr, Paula Spencer, Heather Nelson, Alisdair Brown

Meeting - in person

Pre-Consultation for Advanced Exploration

Meeting between Treasury and MOE to discuss permitting going forward. Ministry given water quality data for review.

25/08/2012

N/A

Mark Wheeler

Shawn Burr

Letter

Cancellation of Advanced Exploration

Due to positive metallurgy results, Treasury formally rescinds Adv Ex permit.

28/06/2012

N/A

Mark Wheeler

Shawn Burr

Letter

Request for consultation meeting.

Treasury requests consultation meeting for EA, MOE responds by helping to coordinate a meeting between parties, including MNDM.

09/08/2012

N/A

Mark Wheeler

Shawn Burr

Phone Call

Questions regarding EA

Phone call to discuss specific questions regarding provincial EA.

05/09/2012

N/A

Mark Wheeler

Shawn Burr

Email

Guidance

MOE sends Ground Water Monitoring Guidance documents for help in continuing baseline.

05/09/2012

N/A

Mark Wheeler

Shawn Burr, Michelle Whitmore

Email

Environmental Studies

Question regarding any Regional Environmental studies associated with the Project area.

Table 7 - Consultation (Ministry of Environment)

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Department/Agency and Location of Consultation Name(s) of Specific Names Involved in Consultation Activity Representative(s) for TML Activity

Date

03/03/2011 Current

03/03/2011

Type of Consultation Activity

Various

Mike Grant (MNDM), Patrick Barnes (MNDM), Bryce Barker (MNDM), Melanie Mathieson (MNDM), Ian Johnson (MNDM)

Email

Scott Jobin-Bevans (TML)

Melanie Mathieson (MNDM)

Letter

Purpose of Consultation Activity

Key Issues Raised/Subjects Discussed

Correspondence

Emails have been exchanged in various capacties regarding current events, and questions reagrding the MOU dicussions and meetings, the one-window appoarch, and current issues affecting the project. MNDM recognizing that TML has been engaging WLON in a positive manner.

12/01/2012

WLON

Adam Larsen (TML), Norm Bush (TML)

Ian Johnson (MNDM), Melanie Mathieson (MNDM)

Meeting - in person and teleconference

Agenda

Information shared regarding agenda and consultation demands. Prior correspondence with MNDM in regards to consultation.

06/03/2012

Sheraton Hotel, Toronto, ON

Norm Bush, Greg Ferron (TML),Chief Ruben Cantin (WLON), Tyson Gardner (WLON)

Mike Grant (MNDM), Patrick Barnes (MNDM), Bryce Barker (MNDM)

Meeting - in person

MOU Discussion

MNDM aided Treasury in the scheduling and meeting to discuss the MOU and its consustations

03/05/2012

TML Goliath Project Site

Mark Wheeler, Norm Bush, Bryce Barker, Pat Barnes

Pat Barnes (MNDM), Bryce Barker (MNDM)

Meeting - in person

Current happenings and MOU discussion

MNDM visited site for a tour of the project and a meeting to discuss current events and dealing with the First Nations

10/07/2012

MNDM Offices, Thunder Bay, ON

Mac Potter (TML), Mark Wheeler (TML), Norm Bush, Doug Steele (TBT), Laura Ritchie (DST), Kris Tuuttila (DST)

Mike Grant (MNDM), Patrick Barnes (MNDM), Bryce Barker (MNDM)

Meeting - in person and teleconference

Introduction to project

Introduction to the Goliath Project and environmental baseline.

Mac Potter, Mark Wheeler, Norm Bush, John Chulick, Rory Krocker, Martin Walter

Mike Grant (MNDM), Patrick Barnes (MNDM), Bryce Barker (MNDM)

Email

Letter of intent to enter one-window process

Letter to MNDM to enter letter of intent.

Norm Bush, Mac Potter, Mark Wheeler

Pat Barnes (MNDM), Bryce Barker (MNDM), Amiel Blajchman (CEAA), Shawn Burr (MOE), Carrie Hutchison (MOE), Cory Argue (MNR) Dorothy Brunner (MNR), Michelle Whitmore (MOE), Kelly Russel (MNR), Joseph Muller (MTCS) Penny Young (MTCS), Brad Dragan (MNDM)

One Window meeting

Provincial EA discussion

Treasury Project presentation, Discussion over Class vs Individual EA

11/07/2012

25/10/2012

Telecoference from Various Ontario Government offices

Table 8 - Consultation (MNDM)

In addition to the Federal and Provincial consultations listed above, Treasury has been actively engaging the local communities. Treasury has presented information to the surrounding communities in in a transparent fashion through such mediums as television, radio and presenting Project updates to both Wabigoon and Dryden town councils. Most recently, on October 30, 2012, Treasury gave two presentations to the general public at the Dryden Centre outlining the Project and the path going forward. Both presentations had a strong community presence with a total of over 200 community members attending. A link to media coverage of this meeting can be seen on Treasury`s website: www.treasurymetals.com. Table 9 - Community Consultation shows the consultation activities to date for the general public.

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Group

City of Dryden

Date

Location of Consultation Activity

Purpose of Consultation Activity

Key Issues Raised/Subjects Discussed

23/02/2012

Treasury Metals Goliath Project

Greg Rickford, Mayor Nuttal, Norm Bush

Meeting - in person

Information sharing

Project Update and question period.

06/03/2012

Treasury Metals Goliath Project

Howard Hampton, Norm Bush

Meeting - in person

Information sharing

Project Update and question period.

19/03/2012

City Council Meeting, Dryden, ON

City of Dryden Council, Norm Bush, Rory Krocker, Mark Wheeler

Meeting - in person

Information sharing

Project Update and question period.

21/03/2012

Chamber of Commerce Meeting, Dryden, ON

Dryden District Chamber of Commerce, Norm Bush, Mac Potter, Adam Larsen

Meeting - in person

Information sharing

Project Update and question period.

28/03/2012

Best Western, Dryden, ON

Dryden Development Corporation, Norm Bush

Meeting - in person

Information sharing

Local buisness workshop.

03/05/2012

Nuttal Residence, Dryden, ON

Mayor Nuttal, Norm Bush

Meeting - in person

Information sharing

Project Update and question period.

24/10/2012

TML Site

Martin Walter, Greg Ferron, Norm Bush, Rory Krocker, Mac Potter, Mark Wheeler

Meeting - in person

Information sharing

30/10/2012

Dryden Learning Centre

Norm Bush, Mark Wheeler, Mac Potter

Meeting - in person

Information sharing

09/05/2012

Wabigoon Hall, Wabigoon, ON

Wabigoon Local Services Board, Norm Bush

Meeting - in person

Information sharing

Project update and question period.

19/07/2012

Goliath Project Site

Rory Krocker, Wabigoon Local Fire Services

Meeting, Project Site

Introduction Meeting

Gave overview of the Project office and site layout.

13/02/2011

Confederation College, Dryden, ON

Norm Bush, President of Confederation College

Meeting - in person

Information and training initatives

Discuss future plans and program possibilities.

23/04/2012

The Center, Dryden, ON

Norm Bush, Keewain Patricia District School Board

Meeting - in person

Information and training initatives

Discuss future plans and program possibilities.

20/04/2012 15/08/2012

Email, Telephone

Hydro One, Mark Wheeler

General, email and telephone

Initiate process for power connection

Received initial highlevel support for a possible 10 MW hookup to the M2D line.

09/11/2012

TML Corporate Offices

Ontario Power Authority, Mark Wheeler

Meeting, TML offices

Introduction Meeting

Gave overview of the Project for long term electricity planners

28/06/2012 24/08/2012

Email, Telephone

Union Gas, Mark Wheeler

General, email and telephone

Initiate process for natural gas connection

Received info on permitting for natural gas connection and sales.

Village of Wabigoon

Educational

Utilities

Name(s) of Specific Representative(s) Type of Consultation Activity

Gave represntatives of local businesses tour of site with an overview of the Project Community Presentation outlining Project

Table 9 - Community Consultation

For ongoing consultation, Treasury will continue to give regular updates to the local municipal councils as these opportunities reach the greatest audience (for example, broadcasts over local television, and local radio and media coverage). Treasury is also in the planning stages to begin regular community updates in a public forum such as meetings and presentations in local community halls. Treasury values public opinion and comment, and will maintain an open door policy for public comment. Key comments to date have related to environmental effects of the project as well as any economic changes that the Project may bring forth. In specific, concerns to date have related to any visual or audible effects the project may have on Thunder Lake residents, any changes to the well water of neighbouring residents, effects on the housing requirements for Dryden and how the municipalities may aid Treasury to advance the Project smoothly. In general, Wabigoon and Dryden both show interest to help develop the Project while ensuring that Treasury maintains a high standard of environmental responsibility.

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Treasury Metals has been, and will continue to be, proactive in its approach to informing the communities and stakeholders of advancements at the Goliath Gold Project. Treasury Metals Incorporated, as a publicly traded company (TSX:TML), files all public documents on SEDAR. Information is also available on the Company’s website, www.treasurymetals.com.

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LIST OF ACRONYMS AND ABBREVIATIONS the Act CEAA CIL DFO EA ECA ELFN FA HADD LGS LSA MBCA MNDM MNO MNR MOE NEB NSR NRCan PD ROM RSA SAG TEK TK TML tpd TSF UG WLON

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Canadian Environmental Assessment Act, 2012 Canadian Environmental Assessment Agency Carbon In Leach Department of Fisheries and Oceans Environmental Assessment Environmental Compliance Approval Eagle Lake First Nation Fisheries Act Harmful Alteration, Disruption or Destruction Low Grade Stockpile Local Study Area Migratory Bird Convention Act Ministry of Northern Development and Mines Métis Nation of Ontario Ministry of Natural Resources Ministry of Environment National Energy Board Net Smelter Royalty Natural Resources Canada Project Description Run Of Mine Regional Study Area Semi-Autogenous Grinding Traditional Ecological Knowledge Traditional Knowledge Treasury Metals Incorporated tonnes per day Tailings Storage Facility Underground Wabigoon Lake Ojibway Nation