Boucherville, January 17, 2011 Benoît Taillon Pierre Mercier Chairman

Boucherville, January 17, 2011 Benoît Taillon Pierre Mercier Chairman Chairman Federal Review Panel - South (COFEX-S) Provincial Review Panel (COMEX) 1141 Route de l'Église, 2nd Floor Marie-Guyart Building, 6th Floor, Box 83 Quebec Regional Office 675 René-Lévesque Blvd. East Quebec City, Quebec G1V 4B8 Quebec City, Quebec G1R 5V7 Re: Additional Comments – Matoush Uranium Exploration Project Dear Sirs, Pursuant to the application for an underground exploration licence for the Matoush uranium project and as a follow-up to the public hearings, we wish to submit additional comments in support of our application. 1) Cree Nation of Mistissini We have read the submission of the Cree Nation of Mistissini, which was finalized after the public hearings (see Appendix A). It contains repeated assertions that Strateco failed to properly inform the Mistissini community on uranium-related matters and the relative risks of the Matoush project. Yet, we met with members of the Mistissini community and James Bay territory residents on more than 200 occasions between 2006 and 2010 (see Appendix B). We have used a wide range of strategies (information pages in the newspapers, door-to-door, information leaflets, information meetings, etc.) to explain uranium exploration and mining, a topic that, we admit, is by nature complex. We are therefore extremely surprised that none of our initiatives is mentioned or even acknowledged by the authors of the Cree Nation of Mistissini’s submission. In our view, the election in August 2010 of a new band council has had a major impact on the Cree Nation of Mistissini’s stance on the Matoush project. We met with the former band council and former Mistissini chief on many occasions (see Appendix B). Based on the collaboration established and the discussions held, we believed that our efforts and initiatives were not only respected, but were also on the right track. In fact, on its own accord, the former band council organized a visit by four Dene chiefs of the First Nations of Saskatchewan in May 2010 to meet with Mistissini residents and speak about their experience living near uranium mines. Everyone agreed that this meeting, which was attended by more than 100 people from Mistissini, was a great success. Indeed, it was one of the key factors in the positive position on the Matoush project taken by elected officials of the James Bay territory. Yet, in its submission, the Cree Nation of Mistissini makes no mention of the visit by the four chiefs of the First Nations of Saskatchewan. Clearly, the submission’s authors have elected not to consider any of the information efforts made by the promoter or any of the information received from the Saskatchewan chiefs or the various guest scientists. All the information in support of uranium exploration and mining has been dismissed outright. On the other hand, the authors of the Cree Nation of Mistissini’s submission claim that the Matoush exploration project fails to respect Cree principles and traditional teachings. By principles and teachings, we understand them to be primarily referring to the special relationship they have with Page 1 of 4 their environment. Yet, we have demonstrated through our environmental impact study that the underground exploration program respects these principles. The studies conducted for the underground exploration licence application were professionally done. They were reviewed by experts from the Ministry of sustainable development, environment and parks (MDDEP), the Canadian Environmental Assessment Agency (CEAA) and the Canadian Nuclear Safety Commission (CNSC). Many of these studies were amended and supplemented; they meet the strictest known standards for exploration projects. During the public hearings, most of the presentations relating to the environmental impact study referred to the initial data provided and did not take into account the huge amount of work done by Strateco and its consultants to expand on or supplement some of the earlier information in order to meet the extremely stringent criteria of the regulatory agencies. The authors of the Cree Nation of Mistissini’s submission do not appear to take into account the final data, which shows that the work done in the context of the exploration program does not go against their traditional principles. On the contrary, their submission is almost solely based on Dr. Dubé’s analysis of the draft version of the environmental impact study. We would suggest that issuing a certificate of compliance for our environmental impact study, as the BAPE does, would have avoided any serious consideration being given to the questioning of our environmental impact study by individuals who may not have the required competency. The Matoush project also respects traditional Cree values in that it develops the only mass source of energy that can control the global warming caused by the rapid industrialization of emerging countries like China and India. A 2°C increase in the temperature of the earth would threaten 30% of plant and animal species with extinction (see Appendix C). 2) Claims Strateco holds the claims required to explore for and eventually mine the mineral resources found there. The Matoush project claims lie on Category III land, which is Quebec public land, as recognized by the Cree Nation under the James Bay and Northern Quebec Agreement signed in 1975. Strateco enjoys the considerable support of the tallymen and the Cree families whose trap lines lie in the vicinity of the Matoush project. Although minimized by our opponents, this support is essential for the development of the Matoush project, particularly as it includes the support of the Coonishish family, whose trap line covers the Matoush project facilities and deposit. 3) Social Acceptability Since Strateco first acquired the Matoush project claims, the notion of social acceptability has gained traction in the political landscape. This notion does not, however, appear in the Mining Act and, as far as we know, does not have an agreed-upon definition. Nevertheless, Strateco has always acted to gain the acceptance of the communities involved. Supported by our opponents, the authors of the Cree Nation of Mistissini’s submission claim that we have failed to be transparent, and that we are not trustworthy. The activities, interview, information documents, meetings, site visits, etc. prove otherwise. Since 2007, Strateco has invested considerable energy, time and money in publicising both its project and uranium-related issues. The public pre-consultations in December 2008 served to identify the main concerns of Mistissini and James Bay territory residents. The information meetings held in May 2010 and the public hearings held in November 2010 should normally have allowed residents to Page 2 of 4 obtain a clear response to their concerns. However, the chosen format of the public hearing did not allow for this, but rather provided a platform for individuals and groups known for their anti-nuclear stance and their systematic opposition to mining projects. Unfortunately, the experts invited by COMEX, COFEX and Strateco did not have the opportunity to respond to the public’s questions or the many erroneous, irrelevant assertions that in general had no relation whatsoever to the Matoush project. Strateco considers that the chosen format penalized us. It is true that the format was changed for the public hearings in Chibougamau, which at least allowed some unfounded statements to be corrected. However, most of the erroneous statements could not be corrected by the experts, and were taken as credible facts by the public, mainly in Mistissini. While for the moment we do not have the official support of the Cree Nation of Mistissini, we feel that we received substantial support at the public hearings. We consider the support of the James Bay territory, representing over 14,000 residents, and of the tallymen and trap line families, as well certain members of the Cree community, to be considerable. While we object to a large proportion of the arguments made by the authors of the Cree Nation of Mistissini’s submission, we continue to believe that close collaboration is essential for the development of the Matoush project. Consequently, we are redoubling our efforts to re-establish a relationship of trust and meet their requirements. We are very confident that we can find an approach that works for everyone. The implementation of the communication plan proposed by the Cree Mineral Exploration Board and accepted by Strateco (see Appendix D) and the creation of an advisory board with members of the Mistissini Cree community and the James Bay territory will help achieve this goal. In conclusion, we feel that we deserve a positive recommendation from COFEX and COMEX for the licence needed for the Matoush project underground exploration program because: • We have demonstrated, with the help of detailed studies, that the project will have a negligible impact on the environment and health; • We have shown that the Matoush deposit has strong potential; • We have demonstrated the importance of the economic and social benefits; • We have considerable support within the James Bay territory as well as from some trap line families and tallymen; • We firmly believe that we can re-establish a relationship of trust with the Cree Nation of Mistissini. Refusal to support the project would not only cause major financial prejudice to Strateco’s employees, suppliers in Mistissini and the James Bay territory and Strateco shareholders, it would also mean acknowledging

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