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ATTAWAPISKAT RATIFIES THE VICTOR PROJECT IMPACT BENEFIT AGREEMENT

In a ratification vote held on June 21, 2005 involving both on-reserve and off-reserve members of the First Nation, 85.5% voted in support of the agreement. Shirley Gagnon, a community member who was the Head Negotiator for Attawapiskat was pleased with the turnout. "We tried very hard to ensure that our members had sufficient information to make an informed choice. While it proved a real challenge to track down the off-reserve members, both the on and off-reserve turnout exceeded our expectations."

The company and the First Nation began negotiations for the IBA early in 2003 and reached an agreement in principle late in December 2004. De Beers Canada agreed that the project would only proceed with community support. The ratified Impact Benefit Agreement constitutes community approval for the project to proceed.

"We have worked very closely with Attawapiskat for a number of years now and formed strong bonds with the community," said Jeremy Wyeth, VP of the Victor Project. "It means a great deal both to me personally, and to the company, that through this agreement the Attawapiskat community will have a variety of opportunities for business, employment and training which could all help the community members to improve their quality of life."

The Impact Benefit Agreement sets out the benefits the community will receive from the project and details how the impacts will be mitigated. The IBA is a comprehensive document which sets out the commitments of both De Beers and Attawapiskat. It includes commitments from the company regarding training and education, employment and business opportunities, environmental management, social and cultural issues and financial compensation.

Commenting on the agreement, the Chief of the Attawapiskat First Nation, Mike Carpenter, said: "Our people have had a great deal to consider in the negotiation and ratification process for this agreement. We wanted to ensure that we had a sound and fair agreement which would provide long-term benefits for our First Nation. While there are still concerns over the impact of the project, the people have decided that the significant long term benefits for our community and our children outweigh the risks."

"True partnerships underpin our approach to business and this is evident in therelationship we have developed with Attawapiskat since we first began work in the area in the 1980s. We have completed a range of agreements with different Aboriginal communities widely across Canada but this is our first IBA. The nature of this agreement is such that it eclipses those previously completed in terms of the major longterm benefits which Attawapiskat will receive throughout the life cycle of the mine," said Richard Molyneux, President and CEO of De Beers Canada Inc.

In May the company received conditional approval for the $982 million dollars to build the mine. De Beers has already spent $140 million, much of this directly in Northern Ontario, to develop the project and plans to begin construction of the mine early in 2006. The mine will employ about 600 people during construction and 400 permanent positions will be created during operations.

Funding for the project is conditional upon completion of the environmental assessment (EA) which has been ongoing for three years. The Canadian Environmental Assessment Agency recently released the Comprehensive Study Report (CSR) presenting the outcomes of the environmental assessment process, and the public has until July 11, 2005 to submit final comments on the CSR. Federal Government approval of the EA will provide the community the assurance that the regulators are satisfied with the steps outlined in this assessment to address the environmental issues. Following EA approval, the IBA will be signed by the community and De Beers Canada. Both parties are hopeful that the EA will be approved in time for construction to begin in January 2006.

Chief Mike Carpenter summarized the community's decision in this way, "We see this IBA as strengthening the existing relationship with De Beers Canada to create a longerterm partnership which will be beneficial to both our community and the company. We are hopeful that the project and the benefits it will bring will help us address the many challenges we have in our community."

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