Roughrider Project Community Visits November 2013 Brochet, MB: Barren Lands First Nations & Brochet Community Public Meeting Thursday Nov 7, 2013

In Attendance: Rio Tinto: Jay Fredericks, External Relations; Sharon Singh, Community Relations; Richard Snider, Environment. Recorder: Gill Gracie, Aurora Communications Ltd. Community: Approximately 25 people. Translation available, equipment not used.

Chief Michael Sewap started the meeting at 2:52 pm.

Opening Prayer

Jay Fredericks thanked the audience for coming out, saying it’s a pleasure to be here on the traditional lands of the Barren Lands First Nation, and to have a chance to talk to you about the Roughrider Project and what we’re hoping to do there. He went through the presentation outline and asked people to save their opinions and suggestions and questions for the end please.

Safety Share: Safety while working on ice.

Presentation: Jay Fredericks, Richard Snider, Sharon Singh (PowerPoint Presentation) Jay Fredericks About Rio Tinto  Rio Tinto has been mining for more than 100 years. We’re a fairly old mining company with a lot of experience in different parts of the world (map). We produce a variety of metals - aluminum, copper, iron ore, borax, diamonds, uranium and coal. We operate two uranium mines, in Namibia and the Ranger mine in northern Australia.  We own the Diavik diamond mine in the NWT, which is a good example of the relationships Rio Tinto has developed with local communities. We have a number of agreements in place with the local communities in the vicinity of that mine.  In Australia we are the largest employer of aboriginal people.  Working with local communities is taken very seriously at every mine where we develop mineral resources. It’s very important to the company and our future. The Exploration Process  To give you a sense of just how few properties make it from exploration to mining, if we start with all the properties we’re working at around the world and go through the different stages of exploration, somewhere around 0.03% of the projects we start with will ever develop into a mine.

1  If we start off with 10,000 projects where we’re looking for minerals, only three will ever develop into a mine. There are a lot of hurdles we have to get over before we decide if it’s worthwhile to develop. Roughrider is in the exploration process, and we have a long way to go. Exploration does not guarantee mining. Location  The location is by Points North (located on a map relative to other projects) about 70 km in a straight line from Hatchet Lake. The Project  There are three ore zones – the West Zone is 220m down, the East Zone 280m, and the Far East Zone 350m. At that depth, it’s hard to hit specific deep targets, so we’re proposing to go underground and get closer to the ore to get more detailed knowledge of the ore and some other characteristics. Richard Snider Advanced Exploration  We came to the community in August and talked about Rio Tinto. We said we may do an advanced exploration project, and now we’re getting into more detail. This meeting is to give you information about what we are proposing to do, what the impacts will be, how we’re going to reduce those impacts, and get your comments and concerns on that project.  We are looking at excavating a shaft straight down, then two horizontal drifts; then we drill into the ore zones. It’s easier to hit a target from closer. We’re not mining; this is exploration; it will help us determine if we should mine in the future.  Right now we’re going through the environmental assessment process; we have to get approval from the province of before we go forward. We also have to get our own internal Rio Tinto approvals.  What will we get from this program? We would like to get more information on groundwater, and how much groundwater might go into the mine. That’s very important; some uranium mines in Saskatchewan have had issues with water inflows, and managing that water. Cigar Lake was delayed for years because of a water inflow that flooded the mine. Everybody was safe, the environment protected, but it delayed the project. We want to avoid that if we do decide to mine.  We know we have three orebodies; we want to find out if there are any more, and make sure we have a good understanding of those orebodies if we decide to mine. We will also look at things like what is the ground like, what kind of ground support will you need, what is the groundwater quality. We’ve done a lot of studies on groundwater, but it’s always better if you can develop the drifts and see what actually flows into the mine. Community Engagement  Brochet was included in the key communities. We identified early in the project who we should talk to about the Roughrider Project as a whole, who we should talk to as part of the exploration program. We identified a few communities, including Brochet, , Kinoosao, Southend, Hatchet Lake, , Black Lake, Stony Rapids and Fond du Lac. We were looking at who’s in the area, whose traditional lands we are on, how could we impact the communities through environmental factors like water flow, air direction. Health, Safety, Environment and Community Policies  We have a health and safety and environment and community policy statement that we use to determine what we should be doing to protect our people, to engage with the communities and make sure we understand and address the concerns, and what we should to for and how should be protect the environment. Environmental Baseline Studies  One of the first things you do when planning a project is look at what’s there – what animals live there, what plants are there, what disturbance might we cause, and will that be acceptable or not. We had an Aboriginal-owned consulting form, CanNorth, do an environment baseline (showed maps of study area). They looked at the land and the water.

2  We had two options for where to discharge our treated effluent (water that has had contaminants removed). Two main options: o going north into the Smith Creek system, which goes to Hatchet Lake and then through the Fond du Lac system into Lake Athabasca and ultimately into the Arctic Ocean, or o discharge into Collins Creek which goes by the McClean Lake mine and into Wollaston Lake. Wollaston Lake flows into the by Lac Brochet and Brochet, and into and the Churchill River. We studied both options in terms of what impacts it would cause in these systems. We looked at water, what lives in the water (plants, bugs, fish sediment) to understand what the impact of the project might be. (showed maps)  We look at the flow of the water, how much is moving; we look at lake levels and depths to understand what the volume is like; we look at water quality through sampling in all the lakes and streams, plankton, sediment – basically what lives in the water, the sediment and what’s in the sediment, and fish because they are the ultimate receptors of contaminants so we want to make sure we’re protecting the fish.  Generally in water there’s low levels of metals; some metals were naturally elevated, as is often the case.  We found 10 large-bodies fish species, and six small-bodies fish species. The most common large- bodied fish were pike, white sucker and lake whitefish. Smith Bay of Hatchet Lake had the most fish species, North McMahon Lake (the lake that we are bordering) had the highest number of fish captured.  On the land we looked for rare or endangered plants; what type of trees or brush, what grows on the land and what type of habitat might that provide. Is it good moose or caribou habitat – you call that ecosite classification, saying what’s there - swamps, wetlands etc. We did amphibian surveys – looking for frogs; aerial and ground bird surveys; large mammal surveys (predators like wolf, coyote), moose and caribou; small mammals; and soils and vegetation.  We found five rare plant species, all of which we think we can avoid; five bird species that have setback distances so we have to stay away from the nests. We found two bird species at risk – the flycatcher and the nighthawk. When we develop the project we have to keep an eye out for these species and make sure we’re not impacting their nests. We found 14 moose, 9 caribou tracks (no caribou), and lots of furbearers – beaver, muskrat, fisher, marten, lynx, red fox and weasel.  We looked for heritage or archaeological sites, and found none. Project Timelines  Timelines are dependent on getting the necessary approvals from the province and internal approvals from Rio Tinto. We’re in the environmental assessment process now, so we have to go to the communities, explain the project and get feedback. We have to prepare an environmental impact statement (EIS) that outlines the environmental baseline, what we will do as a project, what impacts we may have and how we’re going to reduce those impacts. Then the province will decide if that is acceptable.  If that is completed in early 2014, we will apply for regulatory approval for site preparation work. We would build a camp first, and upgrade the access trail to a road. We would also do site clearing activities like clearing of trees and soils, and construction of some concrete foundations and some of the buildings.  In 2015 we would start constructing the shaft, which will take a little under two years. Once the shaft is sunk, we would develop the drifts, then do exploration drilling. Hopefully all goes well, we get good results and we decide we’re going to be mining. It will all happen in a stepwise manner – do we feel we know enough about the ore body to make a decision to mine. (Referred to plan on wall).  There will a 550-metre shaft, and a building on top of the shaft; two main drifts coming out; a freeze plant - this will be a concrete-lined shaft, but while we’re constructing it we’re going to sink wells around it and freeze the ground along the shaft to stop water flowing in. It’s an important safety feature, and it reduces the amount of water we have to treat and discharge to the environment. We’ll

3 have a water treatment plant to make sure we treat all contaminants in any of the site runoff and any of the water that comes out of the underground workings. We’ll have ponds to capture runoff, and ponds where we can put the treated water and test it to make sure it’s acceptable before we discharge it to the environment. A concrete batch plant will make concrete for the shaft and the building foundations. We’d use the nearby gravels and rocks to make the concrete.  The rock that comes out of the shaft and the drifts will be piled on surface. There would be two piles: one with rock with low levels of contaminants that are low risk and that we can leave on surface, and another for special rock that poses a high enough risk that we will have it on a lined pad, and when we’re done we’ll place it back underground.  We don’t have electricity at the site, so we’ll have power generators for the exploration program, and we’ll have a 130-person camp with water/sewage works and potentially a landfill.  We will knock out some curves and straighten our existing trail to become our road. (Showed map showing North and South McMahon Lakes). Site Map  Detail of site layout: showed the different areas including ponds; we want to make sure we have lots of water storage capacity in case of inflows. The red dashed line is a buffer so we do not construct major facilities within 100m of the lakes.  Diagram of shaft and drifts. We may have a couple of smaller drifts lower down to drill further down. Potential Environmental Impacts  We will have equipment operating; roads will have dust emissions; there will be emissions from our generators and from a sewage treatment lagoon if we do one.  All the water we discharge will be treated; we discharge to surface waters. We will be digging a hole in the ground so we could change groundwater levels and flows.  We’ll also have surface disturbance – rock piles, roads, buildings etc. We’ll have noise: equipment running, fans running to pump the air into the underground; also there will be increased traffic on Highway 905.  For the rock that’s placed on surface, most will have very low concentrations of uranium and will be safe to store on surface. Some rock will be used in backfill if we can. Rocks still contain heavy metals, and if they’re not managed properly they can get into the water, or the streams, or produce radon gas, or dust, so we will have a mine rock management plan to make sure that we segregate our rock so we know what is the riskier and what the safe rock when we place it on surface. We’ll have a storage pad about 200 x 110 metres x 10 metres high. That’s about 125,000 cubic metres. We’ve assumed about 25% of that rock will require special handling and be on a double-lined pad.  Air emissions: We’ll have radon, equipment exhaust, and dust and particulates. We’ll have air from the underground mine, diesel generator exhaust, particulates from the site and development rock, radon from surface stored rock, and air emissions from our sewage treatment facility.  We have been monitoring baseline air quality; we’re looking at the amount of particulates in the air and the amount of radon, and we’ll continue that throughout the project. We’ve also done modeling of our proposed activities and could that impact people onsite and offsite and in the surrounding area? That included looking at sulphur dioxide and nitrogen dioxide from the burning of hydrocarbons. The modeling has shown is that all levels are predicted to be well below any levels that would cause concern or cause impact to the surrounding environment or the public. It’s important for us to follow up on this modeling and continue to monitor as we develop to make sure the air quality out modelling shows us we should have is actually what we have.  Surface disturbance will be reduced by planning. We will try to minimize the footprint of our area. There will be a 100-metre buffer; early in the planning process we decided that, to reduce the risk to the surrounding lakes, because uncontrolled runoff could introduce sediment into the lakes. We established this 100-metre buffer around the site to protect during construction and operations should anything happen like a vehicle rollover that spills gas or diesel. Access

4  We will make maximum use of the existing access trail so no new areas will be disturbed for the road.  For waste management, we will reduce/reuse/recycle our waste as much as possible, so we don't have a large landfill.  We heard from all communities in July that when we are done, we must make sure we reclaim and decommission the area in a very timely manner. If we decide not to mine, people don't want to see the infrastructure sit there for years. Noise  We’ve looked at different strategies; one is timing of construction, another is placement of facilities, to minimize noise to the surrounding environment and to any other users in the area. Traffic  Most of our traffic will be during construction – equipment, materials and supplies coming up to the site. We’re looking at how we spread out that construction window to reduce the amount of traffic. We plan to have discussions with the Ministry of Highways and Infrastructure about the increased traffic and what that means for their road maintenance. Groundwater  We’ve done a lot of groundwater sampling, looking at levels and quality and will continue that process to make sure we don’t impact the groundwater. We will freeze the shaft to reduce the amount of groundwater coming into the mine, and also to reduce the amount of water we’re treating and discharging to the environment.  All water on site will be treated and then discharged. We will have ponds that capture site runoff, and ponds that capture water that flows into the mine from surface; those will all be directed to the water treatment plant. Then we’ll have holding ponds that will hold water after treatment so we can test it before we discharge it.

 For the camp sewage, we haven’t decided yet; we would most likely have a lagoon, but we might have a mechanical treatment plant. That also requires treatment before discharge to the environment. The province has specifications for sewage discharge to the environment – what the retention time is to be, and what the quality is to be. For the site itself (effluent), we’ll have to meet both federal and provincial requirements.  We’ve done this modeling and looked at different treatment plant options; right now our predicted effluent quality will be well below any federal or provincial requirements, now, or for any proposed changes that we’re aware of. We have to meet these, no question. We also went beyond that and looked at modeling to say, here’s our discharge numbers, here’s how much we’re going to discharge, what will that mean for the surrounding environment.  Map of Roughrider site, with creeks flowing to North McMahon Lake up the Smith Creek system to Hatchet Lake and to the Fond du Lac. The other options was Collins Creek, flowing to Wollaston Lake. From Wollaston Lake, 85% of the water goes through the Cochrane River, about 15% into the Fond du Lac River.  From our consultations with communities this summer, and from our consultation with the local trapper in the area, and a group of northern representatives called the Environmental Quality Committee, the overwhelming preference was the Smith Creek system. It doesn't receive any effluent right now from any of the operating mines; all the other mines eventually discharge into Wollaston Lake. We are proposing going into the Smith Creek system. None of the effluent would go towards these communities. That’s subject to provincial approval – they could tell us for some reason they want us to discharge into Collins Creek, but that is our preference right now.  We know there will be dust, particulates in the air; we know we’re going to discharge water, we’re going to meet all those criteria – that’s a given, we have to meet those criteria. We also look at what that means for the environment, what it really means for the fish and the animals that live in that area. What does it mean for the people that might live off those animals? It’s important to model it and ask what might happen to the fish, the animals.

5  We look at air emissions, wind, what’s going into the lakes, animals eating plants and drinking the water, the fish taking contaminants from the sediment, and figure out what’s going to happen with them. Richard explained how the pathways diagram works, and referred people to the big chart on the wall. The moose for example, will take up stuff from the sediment, drink the water, eat aquatic vegetation and browse; it’s all going into that moose. We look at what that means to the moose. Same thing with all the other species.  For the water, we looked at the bugs that live in the water, the fish that live off the bugs, the predator fish that eat the smaller fish, and aquatic birds and animals.  For the terrestrial, we looked at the birds that live on land, and terrestrial animals (mammals that live on land).  We look at the humans – many different scenarios. We looked at people living in nearby communities. One of the most conservative one was an adult and a child trapping on Smith Creek (where we’re proposing to discharge our water) for 2-3 months of the year, then living in their downstream community. Other scenarios included cooks and people working in other areas like Hatchet Lake Lodge, Points North Landing. We also included a person living in Lac Brochet and Brochet in the modeling.  We found that there will be minimal change in the radiation dose to humans as a result of our advanced exploration program. The same with other contaminants like metals - no negative impacts. Put the two together, and we don't anticipate any negative impact on human health for people living nearby. We’re much more confident for Brochet/Lac Brochet.  Water quality guidelines will be met in North McMahon Lake and in the Smith Creek watershed. We know we will have water quality in that system that federal and provincial governments say is pretty safe water. Reclamation and Decommissioning  If at the end of the exploration program we decide we can't mine for any reason – too much water, not safe or economic to mine – we would have to decommission the site. We have to have Financial Assurance, which means we give the province money, and the province holds that money to make sure that if Rio Tinto goes bankrupt, the province has the money to complete the decommissioning. We will post that in the beginning stages of the project, and ensure it’s adequate to decommission the site.  We would transport all the buildings off site, remove and dispose of all site infrastructure, look for reuse or recycling of that infrastructure, put all the special rock underground, either cover or backfill the shaft, and recontour and revegetate the site as soon as feasible.  After that, in order to return the land to the province, we have to demonstrate that it’s completely safe in order to do that. After we decommission we give the province money to monitor and maintain that site, and have to demonstrate through monitoring that the site is safe for the long term. (Slide of concrete cap in Beaverlodge area).

Economic Opportunities: S. Singh: You have heard things we think are important to the communities, particularly protection of the environment. There are also benefits from mining and exploration. Supplier opportunities  We are using a lot of local suppliers – more than 80% last year was spent with northern suppliers. A lot of the companies we use are owned by Aboriginal businesses. With advanced exploration we are also hoping to ensure that the use of local suppliers continues. Currently no people from here are working or supplying anything on our site, and Chief and Council have said there’s some really good talent here that might be able to supply us. We’re happy to work with you to see if we can make that happen. We are using local suppliers from near our project where possible; where it’s not, that’s when we go outside. We want to continue that in the advanced exploration stage. We’re happy to hear from you as to how you think you could supply us – it could be construction or other things.

6 Employment opportunities  Although we don't have approval, we have an indication of how many people will be required to work on the project. Most of these people will be contractors, because we first have to construct what we need for the underground exploration. It could be that the contractor that we hire hires other people. There will be opportunities for a whole series of jobs, such as site clearing, environmental assistant, etc. We now have Hatchet Lake employees working on site. We want to make sure we continue to have local people working on site. It will be difficult with Brochet and Lac Brochet because of distance and infrastructure issues – we’d be happy to hear other ideas from you on how that could work. We will send job opportunities to the band office, and you are welcome to apply. It makes sense to employ as many local people as possible, not just to keep the communities happy, but local people live in the area, they know the land better than most people, and because they are going to continue living in the area. It’s a reliable source of employment, and of a workforce for us.

 A lot of information has been presented to you. We told you who we were as a company – we are a global company, we mine in other areas, we mine uranium, we have a history in of over 100 years, but we don't mine in or Saskatchewan.  The Roughrider project has been doing exploration drilling, and now wants to do underground exploration drilling. Richard told you about the various studies we’ve done to understand what the environment is like now. We did other modeling to understand, if we do get approval from the government and our company to go ahead, what impact there will be to water, land, animals etc.  We’d like to hear your concerns. Last time you wanted translation; this time we have translation available. You mentioned the environment; we did more modeling on that to make sure we were doing things properly. We’d like to understand more about the issues that you face and you want us to consider, good or bad. Please feel free to ask questions or to give us comments. If there’s something you didn’t understand, say so and we’ll go over it again.  The toll free number and email address go to Sharon.

Discussion Councillor Robert Merasty: Can you define decommissioning and reclamation? Response: R. Snider: (From an exploration and advanced exploration point of view). Decommissioning and reclamation is a fancy term for removing all buildings, to reclaim and make the site comparable to what it was before we started work. We will contour rock piles to blend into the natural topography; move all buildings offsite; we have a hole in the ground that we would either fill with rock or put a cap on top. Right now we have just surface exploration – tents, and core stored on surface. We have to remove the tents, and reclaim the area. The province requires us to keep the core on site so that if someone else decides to develop the property it’s there for them to look at. For the advanced exploration it’s more surface disturbance, more buildings, there’s more involved in taking that material away. We would break up and dispose of concrete foundations, move buildings and trailers offsite. Basically it’s trying to leave the site and turn it back to forested area. Response: S. Singh: If we stop exploration tomorrow, we would remove buildings and try to put the vegetation and trees back in, so it returns it as closely as possible to its natural state. It won't look exactly the same, but that’s the aim. Response: J. Fredericks: It’s all part of federal and provincial government requirements. It’s important to understand we are planning for reclamation and returning the site back to natural conditions at the same time we’re planning for development activities, to make sure that how we develop the site gives us the best possible way to return it back to natural conditions if we don't go ahead with mining. Even if we do go ahead, at the end of the mine life we’d still return it as closely as possible to the natural conditions that existed there before the mine. Also, under the regulations of the province of Saskatchewan, before we go

7 ahead with development we have to post financial assurance (money) with the province that would cover the cost of decommissioning and reclamation, so just in case something happened to Rio Tinto that money is there to pay for the work to be done . There’s a lot of protection and defence in depth to make sure the mistakes of the past aren't repeated where companies disappeared after mining was finished and didn’t do that reclamation and decommissioning. Now there are laws and regulations in place to make sure the money will be there. R. Snider showed the photo of the Beaverlodge cap again as an example of a decommissioned site; at the time there were buildings all around. Photo taken in 2004. What are you mining for and what is uranium? Response: J. Fredericks: if it goes ahead, it would be a uranium mine. The Athabasca basin is one of the best places in the world to find uranium deposits – all the mines there are uranium mines, including Rabbit Lake, Cigar Lake, McArthur River, andMcClean Lake. At the Roughrider site we have found uranium and are trying to find more. Uranium is a type of metal, radioactive (which means that over time, the uranium atoms keep splitting apart until they reach stable lead, the most stable state that uranium eventually changes into). That splitting apart releases energy. When we mine uranium, it has relatively low radioactivity (not splitting very fast). It can be put into a nuclear reactor, and through the interaction in the reactor it splits faster and releases a lot of energy for a small amount of uranium. That energy is converted to electricity. Canada has reactors in Ontario and New Brunswick; the one in Quebec is being shut down. In the US there are more than 100 reactors producing electricity. Currently, uranium from the Athabasca Basin supplies electricity to one of every nine or 10 homes in the US. You talk about special waste – development rock that has higher levels of contaminants in it - do you have something protecting the land from it? Response: J. Fredericks: The special waste rock that has higher levels of contaminants will be sitting on a lined pad. Response: R. Snider: We have a buffer around the site to protect the lakes; there will also be also ditching around all the infrastructure so runoff is captured and goes to one of the ponds. We anticipate two types of rock, some that we think will be safe to store on surface long-term, and rock that might not be safe; that goes on a double-lined pad. All the water goes to the water treatment plant. The main mine rock pile, which is safer rock will still have ditching around it, and that water goes to the water treatment plant, but there’s no liner underneath; it should not require a liner and containment in the long term. When finished we will reslope it; we might have to cap it, depending on how much water would get into the pile. Or we might just compact it, recontour it and leave it there. We will make sure we monitor that rock to make sure it’s safe for the long term. Question about tailings: Response: J. Fredericks: Tailings are produced as ore is processed. It goes as sand-sized material into a pit or holding area on surface. We’re talking about exploration, so we are not processing or removing uranium except what’s in small drill core, so we have no mill to process the uranium, and no tailings facility. We will have water pumps collecting underground and surface water, and all will be treated to remove metals or other elements to allow it to meet government standards for release. Once we can show it meets the standards, it would be released into Smith Creek. At this stage there’s no tailings facility. If we develop a mine and mill rather than use a mill at one of the other mines, we would have to develop a tailings facility. There are special types of tailings facilities developed for uranium mines to be safer than tailings for other types of mines because they are in pits in the ground. This provides a stable structure for the tailings. There are no tailings dams that can fail; they are surrounded by natural rock; tailings compact down so it becomes very stable and there’s very little contamination that can move out. A lot of work and science goes into the design. For this project, there’s no tailings facility. If it develops into a

8 mine and we decide to build a mill, we would have to look at options: haul ore to an existing mill, or build a new mill. Are the tailings just chemicals? Response: J. Fredericks: They are essentially sand-sized particles, containing all the materials that were in the rock with the uranium removed. Response: R. Snider: They have contaminants in them, so it’s really important to manage them properly. Have you gone to the other places? Response: S. Singh: We’ve been engaging with the communities since 2012. We’ve gone to every community; Southend and Kinoosao are together. We were in Hatchet Lake yesterday, will be going to Lac Brochet right after this, and next week the other Athabasca communities. We’re all connected. Are you coming to communities because the lakes are all interconnected? Will there be a final decision coming from the communities? Response: S. Singh: Last time we asked for preferences as to where the treated water should go. There’s a clear preference from the communities for Smith Creek. In the communities we always try to listen to what you say, take the information back and make sure we consider it. If we can’t for some reason such as engineering considerations, we’ll come back and explain why not. That’s how community input gets taken into account. We just met with chief and council; we will come up with a community protocol agreement for the exploration stage that can develop into more of an agreement if we proceed into mining. That will cover how we engage, how regularly etc. We want to have sure the communities know what’s going on. We try to engage, listen, and where we can't do something you say, come back and explain why not. Response: R. Snider: We heard from communities, the local trapper, the nearest community (Hatchet Lake), and the EQC (reps from northern communities, who go to the sites and are involved in reviewing applications). That group actually scored it. The overwhelming response was Smith Creek, so that’s what we’re proposing. The province could still tell us no, do Collins Creek that fees into Wollaston and comes this way. Response: J. Fredericks: We will indicate to the province the preference of the communities for Smith Creek. The other input that communities have is, as part of the Saskatchewan EA process, there is a period for public consultation and public review of the EIS. People can put forward their views, or communities a common view, on the project to the Government of Saskatchewan, and they look at those opinions in making their decision whether or not to give the project environmental approval. Sharon invited people to ask questions privately.

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