Baffinland Iron Mines Corporation (Baffinland) is a Canadian mining company that operates the Mary
River iron ore mine, located in the Qikiqtani Region of Nunavut on Baffin Island. The Project is
authorized to mine up to 22.2 million tonnes per annum (mtpa) of iron ore and to transport up to 18
mtpa of iron ore to market by the Southern Transportation Corridor and Shipping Route and to
transport up to 4.2 mtpa of iron ore to market by the Northern Transportation Corridor via the Northern
Shipping Route (from Milne Inlet to Baffin Bay) during the open-water season (July to October).

In 2016, production and transportation of ore at the Mary River site allowed the shipment of 2.7 mt of
iron ore through the Northern Shipping Route. In order to improve on the 2016 production, additional
ore haul trucks and trailers will be required prior to open water in the spring of 2017 to increase the
fleet at the site. Baffinland proposes to complete a Winter Sealift using an icebreaking bulk carrier to
bring the trucks as well as seacans of spare parts and tires to the site. If possible, the MV Nunavik will
also carry several sea containers of supplies for Pond Inlet.

It is anticipated that the icebreaking carrier will enter the region near Pond Inlet around March 20 and
enter Milne Inlet around March 22. Following a two-day period for off-loading cargo, the carrier will
enter the region near Pond Inlet on its return trip around March 25, and depart the area on March 28.
The actual shipping dates will be adjusted to adapt to fluctuations in weather and ice conditions.

Baffinland has consulted with the communities of Pond Inlet and Arctic Bay in regards to shipping
through ice since 2014. Most recently, community meetings were held in Pond Inlet on December 6,
2016 related to the Winter Sealift to listen to concerns about the sealift from Hamlet council, the
Hunters and Trappers Organization (HTO) and the community. Concerns raised by the community will be
addressed using mitigation and monitoring programs developed in cooperation with Pond Inlet.

To allow the safe passage of local travelers across the broken ice left by the vessel, an ice bridge will be
installed along the broken ice near Pond Inlet. Route markers as well as signage in English and Inuktitut
will also be installed to identify the path left by the vessel so areas of thin ice are highlighted to local
travelers.

Baffinland will work with SmartICE and Ikaarvik: Barriers to Bridges, both community research
organizations based in Pond Inlet, to develop and deliver the community-based monitoring program.
The proposed monitoring activities are intended to address concerns of community members and to
build capacity for such monitoring activities within the community. A workshop will be held in Pond Inlet
prior to the sealift to discuss potential impacts, mitigation measures, community safety and the plans
for the sealift. The proposed monitoring activities will assess physical ice impacts, impacts on seals, noise
and community socio-economic impacts.

The complete project proposal along with supporting community consultation documents has been attached.