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For immediate release
December 12, 2002

DE BEERS AND ATTAWAPISKAT FIRST NATION FORMALIZE AGREEMENT
FOR VICTOR PROJECT

Toronto, 12 December 2002 — At a community event in Attawapiskat this week De Beers Canada and the Attawapiskat First Nation formally signed the Feasibility Partnering Agreement, which was reached in October. This agreement replaces the Memorandum of Understanding which was terminated in July and provides the framework for addressing environmental monitoring, health and safety issues on site, permitting, and business opportunities for the community.

In terms of this agreement the Attawapiskat First Nation will support the current winter programme at Victor and the feasibility study, which will commence in January and conclude at the end of 2003.

De Beers has agreed to provide $600 000 towards the cost of constructing a training centre in the community and is prepared to assist the community in their applications for further funding for the centre. The company has proposed that the training centre be built using modular construction, comprising three classrooms, including a computer laboratory and workshop, a library, daycare facility for children, offices and accommodation for training centre staff and a central meeting area.

In terms of the agreement De Beers is providing $50 000 of the cost to run an education upgrading or bridging programme. The Mushkegowuk Council is expected to cover the remaining $30 000 of the cost. The programme is aimed at upgrading students to grade 12 in math, science and literacy so that they are equipped for apprenticeship programmes or further education.

Speaking at the event Mr Richard Molyneux, President and CEO of De Beers Canada said “Educational upliftment and capacity building is a cornerstone of De Beers’ social investment policy and part of our wider commitment to sustainable development.”

In addition, De Beers has agreed to provide $150 000 to the Attawapiskat First Nation to promote economic and social development amongst their members. It has also been agreed that the First Nation will build the winter access road from the community to the project site. This contract is worth approximately $250 000.

At the signing ceremony, Chief Theresa Hall said, “The signing of this agreement represents the foundation upon which we can build our relationship with De Beers into the future.”

“Approximately 80 to 90 percent of the Attawapiskat First Nation is living on welfare. This is not a situation we wish to see continue. The possibility of a mine at Victor presents our young people with something to aim for in furthering their education and an incentive to lift themselves out of dependence on welfare,” said Chief Hall.

The signing ceremony was followed by series of community meetings in Attawapiskat. In these meetings the company provided details of work being carried out as part of the winter programme and proposals for access logistics to the Victor project site.

“De Beers believes that meaningful consultation and transparent communication is an essential component of the success of our projects. This consultation and communication forms the basis of our relationships with the communities in which we operate,” said Molyneux.

The decision on whether or not to construct a mine at Victor will be made after the completion of a positive feasibility study, the successful negotiation of an Impact Benefit Agreement (IBA), issuing of the necessary permits, and the provision of funding by the De Beers Board. Both parties have committed to begin negotiations on an IBA in January 2003.


- Ends -


For further information contact:
Linda Dorrington
Manager - Public and Corporate Affairs
De Beers Canada
Email: linda.dorrington@ca.debeersgroup.com
Tel: (416) 645-1710 ext 412 / (905) 849-0619

Thomas Tookate
Councillor - Attawapiskat First Nation
General Manager - Attawapiskat Development Corporation
Email: tookate@onlink.net
Tel: (705) 997-2375
Fax: (705) 997-3422



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