Saskatchewan Exploration and Development Highlights 2016 Miscellaneous Report 2016 4

Saskatchewan Exploration and Development Highlights 2016 PDAC Edition (March 2017) Compiled by Staff of the Saskatchewan Ministry of the Economy

Miscellaneous Report 2016-4 Saskatchewan Exploration and Development Highlights Updates October 11, 2016 – February 10, 2017

• Uranium production in 2016 from Saskatchewan’s three operations totaled

36.4 million (M) pounds (lb) triuranium octoxide (U3O8) including 18 M lb U3O8, from the McArthur River mine - Key Lake mill, 17.3 M lb U3O8, from the Cigar Lake mine – McLean Lake mill and 1.1 M lb U3O8 from Rabbit Lake operation which was put in care and maintenance in April 2016. Production for 2017 is

forecasted to be 36 M lb U3O8 with 18 M lb coming from each of the two active operations.

• The southwest part of the Athabasca Basin is the focus of several substantive winter exploration programs including: o Nexgen Energy Ltd.’s 35 000 metre (m) drill program at its Rook 1 property, designed to further delineate the extents of the Arrow deposit; o Fission Uranium Corp. has planned over 19 000 m of drilling at its Patterson Lake South property where the company will continue to delineate the Triple R deposit as well as explore high-priority regional exploration targets; and, o Purepoint Uranium Group Inc. (partners AREVA Resources Canada Inc. (AREVA) and Cameco Corp. (Cameco)) is undertaking approximately 12 000 m of drilling at its Hook Lake project where the company is delineating the Spitfire zone.

• Uranium exploration programs are also occurring on the east side of the basin including: o at the Wheeler River Joint Venture project where Denison Mines Corp. (with partners Cameco and Japan-Canada Uranium Exploration Company Limited (JCU)) is conducting more over 45 000 m of infill and exploration drilling designed to confirm and expand uranium mineralization at or near the Gryphon deposit; and, o at the Christie Lake project where UEX Corporation and partner JCU are undertaking a 12 000 m drill program with the aims of growing resources in the known deposit and exploration of a new segment of the Yalowega trend.

• North Arrow Minerals Inc. closed a property purchase agreement with Stornoway Diamond Corp. and now holds a 100% interest in the Pikoo diamond project.

• Alto Ventures Ltd. has started a drilling program on its GEFA claims, located immediately east of the Pikoo diamond project, to test targets identified from a 2015 high-resolution aeromagnetic survey that are up-ice from KIM dispersion trains.

• Gold (Au) producer Silver Standard Resources Inc. reported total 2016 production of 77,640 ounces (oz) Au for its Seabee mining operation from 312,679 tonnes of ore grading 7.91 grams Au per tonne. This is a new annual production record for the operation, surpassing its previous record of 75,748 oz in 2015. Production guidance for the operation in 2017 is set at 72,000-82,000 oz.

• Murchison Minerals Ltd. is undertaking a 5000 m drill campaign on its Brabant- McKenzie zinc copper property with the aim of testing newly identified geophysical conductors.

• After enduring a year of lower realized sales values, Saskatchewan’s potash producers are anticipating a more positive market in 2017.

• The Mosaic Company announced it will acquire Vale Fertilizantes, which will include Brazilian phosphate and potash operations, as well as the Kronau potash exploration project in Saskatchewan.

• Agrium Inc. and Potash Corporation of Saskatchewan provided an update on their proposed merger, advising that the Ontario Superior Court has approved the ‘merger of equals’ transaction to be implemented by way of a plan of arrangement under the Canada Business Corporations Act. Shareholders of both companies had already overwhelmingly voted to approve the proposed merger. The companies will still be required to provide supplemental information to the Canadian Competition Bureau and the United States Federal Trade Commission, but expect the transaction to close mid-2017.

Saskatchewan Exploration and Development Highlights 2016 Compiled by Staff of the Saskatchewan Ministry of the Economy

1. GENERAL OVERVIEW The value of mineral sales in Saskatchewan was Value of 2015 Mineral Sales = $8.2 B approximately $8.2 billion (B) in 2015 (Figure 1), compared to the $7.3 B realized in 2014 and $7.1 B in 2013. The increase can primarily be attributed to large potash sales volumes, as well as relatively $1.8 $0.3 strong sales in uranium. Other minerals produced included gold, coal, salt, silica sand, copper, zinc, bentonite, as well as sodium and potassium sulphate. Natural Resources Canada (NRCan) estimated that the value of Saskatchewan’s mineral production in 2015 accounted for approximately 20% $6.1 of Canada’s total, second only to Ontario. Potash Uranium Other NRCan reported that Saskatchewan continued to lead all provinces and territories in 2015, with intended capital investments of $3.6 B in the mineral Figure 1 – Value of mineral sales in Saskatchewan for 2015. extraction sector, representing 34% of national expenditures.

For the second year in a row, In the Fraser Institute’s 2015 survey of mining companies, Saskatchewan ranked first in Canada and second overall out of 109 jurisdictions for Investment Attractiveness. The Investment Attractiveness Index is a composite of the survey’s Best Practices Mineral Potential Index (i.e., geologic attractiveness) and Policy Perception Index, which measures the effects of government policy on attitudes toward exploration investment. The rating for Investment Attractiveness is based 60% on geological potential and 40% on composite policy factors.

A preliminary estimate by NRCan indicated that Saskatchewan will account for about 16.4% of Canadian exploration expenditures in 2016, ranking second only behind Ontario. Another key metric revealed in the NRCan data is the dramatic decrease in mineral exploration spending in Canada, from a record $4,227 million (M) in 2011 down to an estimated $1,400 M in 2016.

Despite the prolonged downturn in mineral commodity prices, an initial estimate is that $226 M will be spent on mineral exploration in Saskatchewan in 2016 (Table 1). This compares to actual expenditures of $211 M in 2015, $216 M in 2014, $236 M in 2013 and $323 M in 2012. Most of the 2015 expenditures were planned for uranium and potash projects, with lesser expenditures planned for diamonds, gold and base metals. Exploration expenditures in the province remain well above historical levels, with over $3.4 B spent since 2003.

Saskatchewan’s unique geology—which includes thick Phanerozoic cover in the southern two thirds of the province, and the exposed Precambrian Shield and the Athabasca Basin in the north—has given the province a rich and diverse mineral endowment of a variety of metallic, non-metallic and industrial mineral deposits, as well as petroleum and natural gas reserves. It is this diversity that has allowed the province’s mining and energy industries to continue to thrive even through times of slumping commodity prices.

As of October 31, 2016 active mineral dispositions, issued pursuant to The Mineral Tenure Registry Regulations, totalled about 8.04 M hectares (ha). In comparison, 7.79 M ha were under disposition in 2015 and 9.08 M ha were disposed in 2014. Also as of the end of October 2016, 2.9 M ha issued pursuant to The Subsurface Mineral Tenure Regulations were under disposition for potash. This is down from the 4.36 M ha under disposition in 2015 and the 4.37 M ha under disposition in 2015.

Saskatchewan Exploration and 1 Saskatchewan Geological Survey Development Highlights 2016 Saskatchewan Ministry of the Economy Also as of the end of October 2016, 0.09 M ha were disposed for coal compared to 0.14 M ha in 2015 and 0.15 M ha in 2014.

Table 1 – Mineral exploration expenditures in Saskatchewan. Data in the histogram compare actual historical expenditures to estimates (e) for 2016, compiled from the annual survey of exploration expenditures by the Saskatchewan Geological Survey. Tabulated data are from the same survey. All values are in millions of Canadian dollars ($M).

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e Uranium 199.2 204.4 108.6 103.2 101.2 115.8 143.8 138.7 136.1 133.2 Diamonds 76.6 73.2 10.9 17.3 7.9 5.2 4.2 3.6 17.3 14.5 Gold 15.3 8.9 3.0 9.5 10.5 13.1 6.3 6.0 2.2 3.7 Base Metals/PGM 1,3 11.6 6.8 3.0 6.5 13.3 13.0 7.8 2.9 3.8 1.2 Industrial Minerals 2 22.6 180.7 151.2 184.0 160.3 176.5 74.3 64.6 51.5 73.7

Total 325.3 473.9 276.6 320.5 293.2 323.6 236.4 215.7 211.0 226.3 1 Platinum group metals 2 Includes rare earth elements, potash and clays. 3 Base metals and platinum group metals combined to maintain confidentiality standards.

According to the World Nuclear Association (WNA), Saskatchewan remained the world’s second largest supplier of primary uranium in 2015, contributing 22% (34.6 million pounds (M lb) U3O8) of the global total. The vast majority of the production came from the world’s two most prolific uranium operations: McArthur River mine/Key Lake mill (19.1 M lb U3O8); and Cigar Lake mine/McClean Lake mill (11.3 M lb U3O8). The balance was produced from the Eagle Point mine at the Rabbit Lake Operation (4.2 M lb U3O8). Forecasts for 2016 suggest production will rise modestly to 35.1 M lb U3O8. Production from McArthur River/Key Lake and Cigar Lake/McClean Lake will again dominate (forecasted at 18 and 16 M lb U3O8, respectively) with an additional 1.1 M lb from Eagle Point. With major exploration programs in the southwestern Athabasca Basin, in the Patterson Lake area, and in the eastern part of the Basin at Wheeler River and Christie Lake, exploration expenditures are expected to be similar in 2016 ($133.2 M estimated) to those in 2015 ($136.1 M).

The Seabee mining operation, comprising the Seabee mine and the Santoy mining complex, was the province’s lone gold producer in 2015. The operation is now run by Silver Standard Resources Inc., which acquired Claude Resources Inc. in May of 2016. After producing a record 62,984 ounces of gold (oz Au) in 2014, the Seabee operation surpassed that total in 2015, with an output of 75,748 oz from 277 638 tonnes (t) of ore grading 8.82 grams/tonne gold (g/t Au). For the first three quarters of 2016, production totalled 58,338 oz Au, which is on track with the 2016 annual production guidance for the operation of 65,000 to 72,000 oz Au.

Saskatchewan Exploration and 2 Saskatchewan Geological Survey Development Highlights 2016 Saskatchewan Ministry of the Economy The Star-Orion South kimberlite project, operated by Shore Gold Inc. (Shore) remains the most advanced diamond play in Saskatchewan. Shore released an updated valuation of diamond parcels and a revised Mineral Resources Estimate for the project, and, in 2016, the company conducted an NQ core-drilling program with the aim of expanding Resources and Reserves. North Arrow Minerals Inc. continues to explore its Pikoo property in the Deschambault Lake area. In the past year the company reported the discovery of new diamond-bearing kimberlites, increasing the number of discrete kimberlite occurrences in the project area to 10. In 2016, a new area for diamond exploration opened up in the northwestern Athabasca Basin. In early 2016, CanAlaska Uranium Ltd. (CanAlaska) staked approximately 75 kimberlite-style geophysical targets based on a high-resolution airborne geophysical survey undertaken in 2010 by the Saskatchewan Geological Survey and the Geological Survey of Canada. Subsequently, CanAlaska entered into an Option-Participation Agreement with De Beers Canada Inc. The possibility of a large, underexplored region prospective for kimberlites was sufficient to trigger a staking rush by a number of companies, resulting in over half a million hectares of land being disposed in the area.

Table 2 – Statistical summary of major Saskatchewan resource industries – minerals. Value in millions of dollars (CAD) unless otherwise noted. Data compiled by the Saskatchewan Ministry of the Economy unless otherwise noted. Major Saskatchewan Resource Industries Statistical Summary – Minerals

(millions of dollars unless otherwise noted) POTASH 2011 2012 2013 2014 2015 Production (thousand tonnes KCl) 16,997 14,469 15,964 16,843 18,238 Value of sales $ 6,714 $ 5,972 $ 5,609 $ 5,700 $ 6,097 Royalty/Tax (See Note 1) $ 438.40 $ 364.50 $ 346.00 $ 546.30 $ 566.40 Direct employment 4,753 4,995 5,277 4,921 5,118 Capital spending $ 2,629 $ 2,973 $ 3,701 $ 2,977 $ 2,898 URANIUM 2011 2012 2013 2014 2015

Production (million pounds U3O8) 34.6 Value of sales $ 1,789.20 Royalty/Tax (See Note 1) See Note 2 $ 152.80 Direct employment 3,904 Capital spending $ 448.10 SALT 2011 2012 2013 2014 2015 Production (thousand tonnes) 1,283 1,280 1,330 1,395 1,388 Value of sales $ 30.30 $ 30.50 $ 24.70 $ 26.90 $ 26.40 Royalty/Tax (See Note 1) $ 1.30 $ 1.30 $ 1.30 $ 1.40 $ 1.40 Direct employment 132 129 130 130 130 Other (See Note 2) 2011 2012 2013 2014 2015 Production (million tonnes) 9.8 9.6 9.1 8.8 9.3 Value of sales $ 1,371.20 $ 1,448.00 $ 1,485.00 $ 1,612.00 $ 324.50 Royalty/Tax (See Note 1) $ 147.80 $ 146.90 $ 97.40 $ 127.30 $ 46.60 Direct employment (See Note 3) 4,284 4,359 4,200 4,250 350 Capital spending n/a n/a n/a n/a n/a

Note 1: Royalty/Tax are reported for fiscal year, remaining entries are calendar year. Note 2: Confidentiality requirements pursuant to The Crown Mineral Act do not permit commodity-specific information to be released where there are fewer than three producing companies. This information is aggregated and presented in the “Other" category, which includes bentonite, quarriable materials, coal, sodium sulphate, uranium and precious and base metals. Note 3: Approximately 300 additional Saskatchewan residents are employed at the Hudbay operations in Flin Flon, Manitoba. Non-Ministry Data Sources: Employment data was derived from information from the Ministry of Labour Relations and Workplace Safety (annual average). Some capital spending figures were derived from Natural Resources Canada Expenditure Survey.

Saskatchewan Exploration and 3 Saskatchewan Geological Survey Development Highlights 2016 Saskatchewan Ministry of the Economy In 2015, Saskatchewan remained the world’s leading potash-producing jurisdiction, accounting for 27%1 of global potash production. The province commonly accounts for approximately one third of global production and trade. The province’s three potash miners—Potash Corporation of Saskatchewan, The Mosaic Company, and Agrium Inc.— produced a combined 18.2 M t KCl in 2015, with sales valued at approximately $6.1 B. Saskatchewan’s potash mining companies have confidence in the long-term fundamentals of the industry, as they continue to press ahead with upgrades and expansions at existing facilities, at an estimated collective cost of over $13 B. In addition to the 10 existing mining operations, K+S Potash Canada GP has nearly completed construction of the Legacy solution mine, which will be the province’s first new potash mine in over 40 years.

A number of other potash exploration and development projects have continued over the past year, with companies advancing projects ranging from early exploration to advanced development and pre-construction. Properties held by BHP Billiton Ltd. (Jansen project), Yancoal Canada Resources Co. Ltd. (Southey project), Rio Tinto/North Atlantic Potash Inc. joint venture (Albany project), Western Potash Corp. (Milestone project), Karnalyte Resources Inc. (Wynyard project), North Atlantic Potash Inc. (Foam Lake project), Encanto Potash Corp. (Muskowekwan project), and Canada Golden Fortune Potash Corp. (Broadview project), are at various stages of evaluation and development.

2. INTRODUCTION This report is a review of current activity only. Geology, and Mineral and Petroleum Resources of Saskatchewan (Saskatchewan Geological Survey, 2003) provides a more comprehensive summary of the economic geology of the province, including historical reserve and production data. For up-to-date information on all Saskatchewan mineral occurrences, refer to the Saskatchewan Geological Atlas (http://www.infomaps.gov.sk.ca/website/ SIR_Geological_Atlas/viewer.htm) and the Saskatchewan Mineral Deposits Index (http://www.economy.gov.sk.ca/SMDI).

All information contained in this document is from publicly available sources. Exploration expenditure forecasts are compiled from an annual survey conducted by the Saskatchewan Geological Survey, Saskatchewan Ministry of the Economy. Actual annual expenditures for previous years are from the same survey. Grade, tonnage, reserve and resource data reported herein are from a variety of public sources including published reports, public records, corporate websites, securities filings and Saskatchewan Mining Association fact sheets. These data may not necessarily conform to the current CIM and NI 43-101 standards required by Canadian securities regulators for publicly reporting companies. Although the contained information has been carefully compiled, the Saskatchewan Ministry of the Economy and the Government of Saskatchewan do not accept liability for any errors, omissions or inaccuracies that may be included in, or derived from, this report. Nor does the Saskatchewan Ministry of the Economy and the Government of Saskatchewan recommend or endorse any of the projects described in this document.

This document is an attempt to capture relevant information current as of October 11, 2016. Information released after this date may, or may not, be present in the document. Only active exploration and development projects are included. Due to the current rapid pace of exploration, it is inevitable that significant new activities have occurred since printing.

Tables 3 and 4 contain data on the current mineable reserves and geologic resources for the active uranium and gold properties, respectively. Table 6 contains potash fiscal year production totals. The last page is a colour map, showing the locations of properties discussed herein. The map also outlines the general areas of mineral and hydrocarbon potential and shows the lithotectonic elements of the Precambrian Shield in northern Saskatchewan.

3. THE ENERGY AND MINERALS SECTOR The mining and petroleum extraction sectors are critical components of the Saskatchewan economy, accounting for 20.9% of the provincial gross domestic product (GDP) ($59 B) in 2015 (Figure 2). The share of the provincial GDP attributed to natural resources has increased annually from 2010 (13.3% of the provincial GDP) to 21.8% in 2014,

1 Percentage of global production and sales derived from Fertecon Ltd., fertilizer information specialists (https://fertecon.agra-net.com/).

Saskatchewan Exploration and 4 Saskatchewan Geological Survey Development Highlights 2016 Saskatchewan Ministry of the Economy before dipping slightly to 20.8% in 2015. Increased production levels have allowed energy and mineral extraction’s share of GDP to stay steady in the face of decreasing prices.

The oil and gas industry in Saskatchewan is the largest contributor among primary industries to the provincial GDP at an estimated 15.8%. In 2015, the oil and gas industry in Saskatchewan accounted for approximately 36,000 direct and indirect jobs, $4.4 B in capital investment and over $600 M in provincial revenues.

Saskatchewan produced 177.6 million barrels of crude oil in 2015, which makes it the fifth largest producer of crude oil in North America, behind only Texas, Alberta, North Dakota and California. A total of 1831 oil wells were drilled in 2015, of which 1608 were horizontal.

Saskatchewan is the third largest producer of natural gas in Canada, behind Alberta and British Columbia. In 2015 Saskatchewan produced 205.8 billion cubic feet of natural gas.

The majority of Saskatchewan mineral production in 2015 was potash and uranium; other minerals Figure 2 – 2015 percentage of GDP by sector ($59 B, that were produced included gold, and minor copper, CANSIM Table 379-0030, Statistics Canada, 2016). zinc and silver as well as a variety of industrial minerals including, silica sand, salt and sodium sulphate, bentonite, clay and coal. The value of non-renewable resource production in 2015 totalled just over $16.5 B (Figure 3).

Oil and gas Industrial Minerals $M8,300 Figure 3 – Value of non-renewable $M6,097 resources ($M, Saskatchewan Ministry of the Economy).

Other Minerals $M2,140

The mines of the Athabasca Basin in northern Saskatchewan and the Prairie Evaporite Formation in the Western Canada Sedimentary Basin of southern Saskatchewan continue to be among the world’s most important suppliers of uranium and potash, respectively. In 2015, Saskatchewan produced 100% of Canada’s uranium from three operations, and accounted for over 22% of world output. The province also produced approximately 95% of Canada’s potash from 10 facilities, accounting for nearly 30% of world production. Market fundamentals indicate strong future demand for both commodities. Companies involved in Saskatchewan potash and uranium sectors have responded by investing billions of dollars in expansions and the development of new operations. With more investments planned, both sectors are positioned to increase production over the next 10 years.

The energy and minerals sectors have increased prosperity in Saskatchewan by creating high-paying direct and indirect jobs (over 30,000 in mineral production and 36,000 in oil and gas) and contributing over $1.35 B in royalties in 2015. These sectors will continue to make significant contributions to the Saskatchewan economy for many generations.

Saskatchewan Exploration and 5 Saskatchewan Geological Survey Development Highlights 2016 Saskatchewan Ministry of the Economy 4. URANIUM According to the World Nuclear Association Saskatchewan produced 22% of the world’s primary uranium supply in 2015. Production came from three operations in the Athabasca Basin operated by Cameco Corporation (Cameco). The McArthur River mine remained the world’s largest uranium producer, yielding 19.1 M lb U3O8 in 2015. The Cigar Lake mine, now the world’s second-largest uranium producer, exceeded forecasts (6 to 8 M lb U3O8) to produce 11.3 M lb U3O8 in 2015. The Eagle Point mine at Rabbit Lake added an additional 4.2 M lb U3O8, bringing Saskatchewan’s total production to 34.6 M lb U3O8 in 2015. Expected production in 2016 is 35.1 M lb U3O8, with the bulk of that coming from McArthur River and Cigar Lake.

Table 3 – Published Ni 43-101–compliant Reserves and Resources for uranium deposits in Saskatchewan.

Reserves Grade Production2 1 Owner(s) Property/Deposit (M lb U3O8) (% U3O8) (M lb U3O8)

3 RESERVES 2014 2015 (e) AREVA Resources Canada Inc. – Denison Mines Corp. – OURD McClean Lake 0.76 0.38 – – (Canada) Co. Ltd. ore stockpile Cameco Corporation Eagle Point 11.9 0.59 4.2 1.1 Cameco Corporation – AREVA Resources Canada Inc. Key Lake 0.7 0.50 – – McArthur River 336.5 10.94 19.1 18.0 Cameco Corporation – AREVA Resources Canada Inc. – Idemitsu Cigar Lake 221.6 16.70 11.3 16.0 Uranium Exploration Canada – TEPCO Resources Inc. Measured & Indicated Grade Inferred Grade RESOURCES (M lb U3O8) (% U3O8) (M lb U3O8) (% U3O8) AREVA Resources Canada Inc. – Denison Mines Corp. – OURD Caribou 2.7 3.13 – – (Canada) Co. Ltd. McClean North 12.5 2.75 0.1 0.79 Midwest 42.9 5.50 0.4 0.80 Midwest A 5.8 0.57 4.3 21.23 Sue D 2.8 1.05 0.2 0.39 Sue E 7.3 0.69 AREVA Resources Canada Inc. – UEX Corporation Anne 24.8 1.99 2.6 0.88 Colette 5.7 0.79 7.8 0.72 Kianna 34.8 1.53 16.9 1.36 58B 2.4 0.77 0.9 0.51 Cameco Corporation – AREVA Resources Canada Inc. – Idemitsu Uranium Exploration Canada – TEPCO Resources Inc. Cigar Lake 3.3 7.41 103.1 16.43 Cameco Corporation Eagle Point 26.7 0.86 33.7 0.58 Cameco Corporation – AREVA Resources Canada Inc. McArthur River 5.6 3.80 58.6 7.72 Cameco Corporation – JCU Exploration (Canada) Co., Ltd. Millennium 75.9 2.39 29.0 3.19 Cameco Corporation – AREVA Resources Canada Inc. – JCU Tamarack 4.42 1.0 1.02 Exploration (Canada) Co., Ltd. 17.9 Denison Mines Corp. – Korea Waterbury Uranium Limited Partnership J Zone 12.8 2.00 – – Denison Mines Corp. – Cameco Corporation – JCU Exploration Phoenix deposit 70.2 19.13 1.1 5.80 (Canada) Co., Ltd. Gryphon deposit 43.0 2.30 Fission Uranium Corp. Triple R 81.1 1.83 27.2 1.57 NexGen Energy Ltd. Arrow 201.9 2.68 4 Rio Tinto PLC Roughrider 17.2 1.98 40.7 11.5 5 Skyharbour Resources Ltd. Fraser Lakes Zone B − − 6.96 0.03 UEX Corporation Horseshoe 22.9 0.203 1.05 0.17 Raven 12.2 0.107 1.7 0.09 West Bear 1.579 0.91 – –

Notes: 1. Operator first. Deposits in the Reserve and Resource sections are sorted alphabetically based on ownership breakdown, and then by deposit name. 2. 2015 and 2016 production figures and estimates are from company releases; e, estimated. 3. Total Reserves (Proven and Probable) are reported. Measured and Indicated Resources have been combined and are reported separately from Inferred Resources. Both Reserves and Resources reflect the U3O8 content of the ore body. Reserve and Resource data are from company releases. 4. Originally published by Hathor Exploration in 2010. 5. Originally published by JNR Resources in 2012.

Saskatchewan Exploration and 6 Saskatchewan Geological Survey Development Highlights 2016 Saskatchewan Ministry of the Economy OPERATIONS McArthur River Mine–Key Lake Mill McArthur River mine: Cameco Corporation, operator (69.805%) and AREVA Resources Canada Inc. (30.195%). Key Lake mill: Cameco Corporation, operator (83%) and AREVA Resources Canada Inc. (17%). The McArthur River mine/Key Lake Mill has been the world’s largest uranium producer for several years and will likely remain so in 2016. After producing 19.1 M lb U3O8 in 2015, production for 2016 was originally forecast at 20 M lb U3O8 before being downgraded to 18 M lb U3O8 due to weak prices and demand. Despite producing over 290 M lb U3O8 since commissioning in late 1999, the McArthur River mine had a Proven and Probable Reserve that contained 336.5 M lb U3O8 at a grade of 10.94% U3O8 at the end of 2015 (Table 3).

Although production has been curtailed in 2016, Cameco announced that both the McArthur River mine and the Key Lake milling operation are now licensed to produce 25 M lb U3O8 annually, allowing for expansion of the operation once prices improve.

In order to maintain the high level of production at the operation, the mill at Key Lake has undergone upgrades in 2016, and a new calciner circuit has been installed to accommodate an annual production increase. Reliability issues with the new circuit have caused commissioning to be suspended as market demands preclude an increase to the new maximum annual production. When the mine does increase production, new mining areas will be accessed and, to that end, the electrical infrastructure has been upgraded in order to facilitate freezing of other parts of the ore body.

Cigar Lake Mine–McClean Lake Mill Cigar Lake mine: Cameco Corporation, operator (50.025%); AREVA Resources Canada Inc. (37.100%); Idemitsu Uranium Exploration Canada (7.875%); and TEPCO Resources Inc. (5.0%). McClean Lake mill: AREVA Resources Canada Inc., operator (70%); Denison Mines Corp. (22.5%); and OURD (Canada) Co. Ltd. (7.5%).

The Cigar Lake mine produced 11.3 M lb U3O8 in 2015, considerably more than was originally forecast (6 to 8 M lb). The higher than expected total elevated the Cigar Lake mine to the world’s second largest uranium producer. Expected production of 16 M lb U3O8 in 2016 will be second only to the 18 M lb U3O8 produced at McArthur River. The Cigar Lake uranium deposit remains the Athabasca region’s second largest, hosting a Proven and Probable Reserve that contains 211.6 M lb U3O8 at a grade of 16.70% U3O8.

Milling for Cigar Lake ore takes place at AREVA Resources Canada Inc.’s (AREVA) McClean Lake mill. The mill has been undergoing modifications and expansion in order to accommodate peak production at the mine (18 M lb U3O8), which is planned for 2017. An additional $50 M (CAD) will be required to complete upgrades to the tailings neutralization area. In addition, the annual production limit at the mill has been increased to 24 M lb U3O8 from 13 M lb U3O8, in order to meet production targets in 2016 and 2017.

Eagle Point Mine–Rabbit Lake Mill Cameco Corporation, operator (100%).

The Eagle Point mine produced 4.2 M lb U3O8 from the Rabbit Lake mill in 2015 and production was forecast at 3.6 M lb U3O8 for 2016. Plans changed abruptly in April 2016, however, as production was suspended due to poor market conditions after yielding 1.1 M lb U3O8. The Rabbit Lake operation was placed under care and maintenance until market conditions improve. A workforce of 120 people will be maintained in order to maintain the facilities, and sustain environmental monitoring and reclamation activities.

MAJOR DEPOSITS Triple R Deposit Fission Uranium Corp. (100%). Fission Uranium Corp. (Fission) continued exploration and expansion of the Triple R deposit in southwestern Athabasca Basin since publishing a maiden Resource estimate and a Preliminary Economic Assessment for the project in 2015. Drilling has expanded the Triple R deposit’s footprint and extended it to a depth greater than 350 m, indicating that the Resource, which currently contains 81.1 M lb U3O8 (1.83% U3O8) in the Indicated category and

Saskatchewan Exploration and 7 Saskatchewan Geological Survey Development Highlights 2016 Saskatchewan Ministry of the Economy 27.2 M lb U3O8 (1.57% U3O8) in the Inferred category, is likely to expand. Fission’s ability to explore and develop that Patterson Lake South property has been enhanced by a strategic investment by the Chinese company CGN Mining Company Limited (CGN) through the purchase of over 96 M shares of Fission. The gross proceeds of over $82 M will be used to further develop the property. Part of the transaction is an offtake agreement through which CGN will purchase 20% of the annual uranium production at the project after commercial production commences, with an option to purchase an additional 15%.

Arrow Deposit NexGen Energy Ltd. (100%) NexGen Energy Ltd.’s (NexGen) Arrow deposit lies about 5 km northeast of Fission’s in the Patterson Lake corridor of the Athabasca Basin. It currently has a surface footprint of about 870 m by 280 m. NexGen has been exploring deep into the mineralized structures and has encountered uranium intersections at depths below 900 m, hundreds of metres below the Athabasca Basin’s basal unconformity. NexGen announced a maiden Resource estimate in March 2016. The Inferred Resource comprised 3.48 M t of ore containing 201.9 M lb U3O8 at a grade of 2.68% (cut-off grade of 0.25% U3O8). The deposit contains a high-grade core (13.26% U3O8) that contains over 120 M lb U3O8.

Wheeler River Property Denison Mines Corp. (60%); Cameco Corporation (30%); and JCU Exploration (Canada) Co., Ltd. (10%) Denison Mines Corp. (Denison) has continued work on the Wheeler River property southwest of McArthur River. The Wheeler River property hosts the Phoenix deposit, which lies about 400 m below the surface, at the basal Athabasca unconformity. Phoenix comprises an Indicated Resource of 70.2 M lb U3O8 grading 19.1%, which represents the highest grade Resource in Saskatchewan. An additional 1.1 M lb U3O8 (5.80% U3O8) resides in an Inferred Resource. Denison has now defined another uranium deposit 3 km northwest of Phoenix, called Gryphon. A Resource estimate for Gryphon, which is hosted by basement rocks nearly 200 m below the Athabasca unconformity, was published in 2016 and the deposit contains 43 M lb U3O8 grading 2.3%, all in the Inferred category.

Fox Lake Deposit Cameco Corporation, operator (78.24%); AREVA Resources Canada Inc. (21.76%) Cameco announced a new Mineral Resource in its 2015 year-end Management Discussion and Analysis. The Fox Lake deposit, about 10 km west of the McArthur River mine, contains 68.1 M lb U3O8 grading 7.99% in the Inferred Resource category. The deposit lies at the Athabasca unconformity over 700 m below surface, along an east- trending conductive trend called C-10.

EXPLORATION OVERVIEW In spite of difficult economic times, uranium exploration remains robust in the province, with anticipated spending for 2016 of $133.2 M. Major programs have continued in both the eastern and southwestern Athabasca Basin. In the Patterson Lake area, in southwestern part of the basin, several uranium discoveries have been made by Fission, NexGen, and Purepoint Uranium Group Inc. (Purepoint) and partners within the northeast-trending Patterson structural corridor. At its Patterson Lake South project, Fission is exploring other mineralized zones along a trend that has now been expanded to a strike length of 2.63 km. At the northeastern end of the trend, the shallow (<200 m), high-grade R1620E zone has been expanded to a strike length of 225 m, and now a gap of only 270 m lies between it and the footprint of the Triple R deposit. At the southwestern end of the trend, the R600W and R840W have been merged (both are now referred to as R840W) via drilling, creating a new, land-based zone (Triple R is beneath Patterson Lake) 495 m west of Triple R. The strike length of the new deposit is now 465 m. Like the R1620E zone, R840W has not been included in the previous Resource estimate.

Since publishing its Resource estimate, NexGen has continued to report mineralization at Arrow. The company aims to expand the size of the deposit and to add the necessary definition control to move some of the deposit into the Inferred Resource category. In addition, the company has reported a new zone of mineralization 180 m southwest of Arrow. Northeast of Arrow, NexGen has intersected three more zones of mineralization, named (from west to east) Cannon, Bow and Harpoon. Bow was discovered under the northeast part of Patterson Lake in 2015 near a historical uranium occurrence intersected in drillcore (Saskatchewan Mineral Deposit Index #4739). The Cannon zone was discovered in April of 2016, about 1.3 km northeast of Arrow. Like Arrow, Cannon is hosted by shear zones in the

Saskatchewan Exploration and 8 Saskatchewan Geological Survey Development Highlights 2016 Saskatchewan Ministry of the Economy crystalline rocks below the Athabasca Basin. The most recent intersection was announced in August 2016. The mineralized zone, nicknamed Harpoon, is also in the basement to the Athabasca Basin and lies near the northeast boundary of NexGen’s Rook I property.

A few hundred metres to the northeast of the Harpoon discovery, Purepoint has expanded the Spitfire zone on its Hook Lake joint venture with Cameco and AREVA. New drilling hoped to connect the discontinuous pods that are now termed the Spitfire South and Upper Spitfire zones. The company continues to encounter promising drill intersections, including 53.3% U3O8 over 1.3 m within a 10 m interval that graded 10.3% U3O8. That intersection was only 220 m below surface, just below the basal Athabasca unconformity.

In the eastern Athabasca Basin, Denison continues to test new targets at or near the Gryphon deposit. Drilling at Gryphon in 2016 has defined two mineralized lenses that will further expand the deposit. Denison is also exploring other structures about 200 m to the north and northwest of Gryphon, and the company is working to define mineralization in the basement-hosted, D-series lenses. In addition, new basement mineralization has been found 500 m west of Gryphon along the K-West conductor.

Cameco and CanAlaska Uranium Ltd. (CanAlaska) signed a joint-venture agreement for CanAlaska’s West McArthur property, which contains the extension of the C-10 conductive trend that hosts the Fox Lake deposit. Drilling on the project commenced in March. Although no mineralization was intersected, a basement structure with prospective alteration was. Elsewhere in the eastern Athabasca Basin, UEX Corporation (UEX) reinitiated exploration at the historical Ken Pen and Paul Bay deposits 9 km northeast of McArthur River, via an option agreement with JCU Exploration (Canada) Co., Ltd. Drilling at the deposit has confirmed the high-grade nature of the deposits, hosted in the basement below the Athabasca unconformity.

5. GOLD The Seabee mining operation remained the sole gold producer in Saskatchewan in 2016. The operation is now owned by Silver Standard Resources Inc. (Silver Standard) after it acquired the previous owner, Claude Resources Inc., in May of 2016. The Seabee operation, consisting of the Seabee and Santoy mining complexes, achieved record annual production of 75,748 oz Au in 2015 from 277 638 t of ore grading 8.82 g/t Au. Through the first three quarters of 2016, the operation has produced 58,338 oz Au from 228 153 t of ore grading approximately 7.4 g/t Au, the majority of which is from the Santoy mine complex. The 2016 annual production guidance for the operation is reported as 65,000 to 72,000 oz Au.

In 2015, gold exploration expenditures in the province totalled $2.2 million. An initial estimate for gold exploration expenditures for 2016 is $3.75 M. Much of this exploration will take place in the vicinity of the Seabee operation. According to Silver Standard, a drill program consisting of ~65 000 m of underground drilling and 18 000 m of surface drilling was planned for various targets at the Seabee operation, with the objective of increasing and upgrading existing Mineral Resources. Targets for this drilling include a zone down-plunge of the Santoy 8A structure; Santoy 9A; the 15 vein at Seabee; and the Carr and Herb West surface zones. Preliminary results from this drilling include intersections of 39.06 g/t Au over 2.7 m (true width) at Santoy 8A, and 52.8 g/t over 2.1 m at Santoy 9A. Exploration in the second half of 2016 will focus on infill drilling at the Santoy Gap.

Eagle Plains Resources Ltd. has also been active to the south of the Seabee operation, initiating exploration programs at its Fisher, Chico and Orchid gold projects. These properties, located about 60 km south of the Santoy mining complex, encompass several historical gold showings distributed near the north-trending Tabbernor Fault. The 2016 exploration program, which followed an extensive compilation of historical exploration data from the area, consisted of geochemical sampling from soil, till sampling, prospecting, geological mapping and ground-based geophysics. A 4000 line-kilometre airborne magnetometer and radiometric geophysical survey was also completed and included the Fisher and neighbouring Chico properties, as well as the Truscott property just north of the Seabee mine.

Saskatchewan Exploration and 9 Saskatchewan Geological Survey Development Highlights 2016 Saskatchewan Ministry of the Economy Table 4 – Production totals for current gold mining operations and published Reserves/Resources for selected gold deposits in Saskatchewan.

Au Au Grade Total Au Years Ore Milled Grade (Troy Production Ownership (%) Operated Mine/Deposit (t) (g/t) oz/ton) (Troy oz)

PRODUCTION (recent operations) Silver Standard Resources Inc. 1991 to Seabee gold 5 718 591 7.44 0.217 1,268,000 (100) present operation 1 2011 to La Ronge gold 323 491 8.55 0.250 77,118 Golden Band Resources Ltd. (100) 2014 project 2 Effective Au Au Grade Date Cut Off Grade (Troy oz/ In Situ Au Ownership (%) (dd/mm/yr) Mine/Deposit Tonnes of Ore (g/t) (g/t) ton) (Troy oz) RESERVES (Proven + Probable) Silver Standard Resources Inc. (100) 30/11/14 Seabee 410 300 4.50 6.45 0.189 85,200 Silver Standard Resources Inc. (100) 30/11/14 Santoy 8 113 200 3.60 4.81 0.140 17,500 Silver Standard Resources Inc. (100) 30/11/14 Santoy Gap 799 600 3.60 7.64 0.224 196,300 Fortune Bay Corp. (100) 6/10/11 Box 16 502 247 0.72 1.51 0.044 800,000 Fortune Bay Corp. (100) 6/10/11 Athona 5 830 798 0.72 1.17 0.034 220,000 RESOURCES (Measured + Indicated) Silver Standard Resources Inc. (100) 31/03/11 Amisk Gold3 30 150 000 0.40 0.950 0.028 921,000 Silver Standard Resources Inc. (100) 30/11/14 Seabee 105 900 4.50 6.78 0.199 23,100 Silver Standard Resources Inc. (100) 30/11/14 Santoy 8 101 700 3.60 5.69 0.166 18,600 Silver Standard Resources Inc. (100) 30/11/14 Santoy Gap 182 700 3.60 5.69 0.166 33,400 Silver Standard Resources Inc. (100) 30/11/14 Porky Main 160 000 3.00 7.50 0.219 38,600 Silver Standard Resources Inc. (100) 30/11/14 Porky West 100700 3.00 3.57 0.104 11,600 Golden Band Resources Ltd. (100) 19/03/13 Roy Lloyd 155 383 5.00 12.60 0.368 62,947 Golden Band Resources Ltd. (100) 30/04/12 Golden Heart 492 800 4.00 6.60 0.193 104,800 Golden Band Resources Ltd. (100) 30/04/12 Komis 191 740 4.00 7.85 0.229 48,398 Golden Band Resources Ltd. (100) 30/04/12 Memorial 288 400 1.00 2.83 0.083 26,220 Golden Band Resources Ltd. (100) 30/04/12 Tower East 5 019 080 1.00 1.86 0.054 299,835

Masuparia Gold Corp. (51) / 01/06/16 Greywacke Lake 255 500 5.00 9.92 0.290 81,500 Golden Band Resources Ltd. (49) (North deposit) Wescan Goldfields Inc. (100) 04/02/10 Jojay 420 000 2.00 3.70 0.108 50,000 Comstock Metals Ltd. (100) 27/09/16 Preview SW 2 607 900 0.50 1.89 0.055 270,800 RESOURCES (Inferred) Silver Standard Resources Inc. (100) 31/03/11 Amisk Gold 3 28 653 000 0.40 0.700 0.020 645,000 Silver Standard Resources Inc. (100) 30/11/14 Seabee 403 300 4.50 8.09 0.237 104,900 Silver Standard Resources Inc. (100) 30/11/14 Santoy 8 1 344 300 3.60 8.56 0.250 369,900 Silver Standard Resources Inc. (100) 30/11/14 Santoy Gap 1 319 100 3.60 7.50 0.219 318,100 Silver Standard Resources Inc. (100) 30/11/14 Porky Main 70 000 3.00 10.43 0.305 23,500 Silver Standard Resources Inc. (100) 30/11/14 Porky West 174 800 3.00 5.48 0.160 30,800 Golden Band Resources Ltd. (100) 19/03/13 Roy Lloyd 91 888 5.00 10.78 0.315 31,843 Golden Band Resources Ltd. (100) 30/04/12 Golden Heart 10 500 4.00 4.95 0.145 1,672 Golden Band Resources Ltd. (100) 30/04/12 Komis 10 746 4.00 7.91 0.231 2,731 Golden Band Resources Ltd. (100) 30/04/12 Memorial 90 900 1.00 2.49 0.073 7,272 Golden Band Resources Ltd. (100) 30/04/12 Tower East 902 020 1.00 1.52 0.044 43,965

Masuparia Gold Corp. (51) / 01/06/16 Greywacke Lake 59 130 5.00 7.42 0.217 14,100 Golden Band Resources Ltd. (49) (North zone) Wescan Goldfields Inc. 04/02/10 Jojay 630 000 2.00 4.30 0.126 87,000 Comstock Metals Ltd. (100) 27/09/16 Preview SW 5 697 100 0.50 1.48 0.043 270,800 Notes: Data in this table are intended to reflect NI 43-101–compliant standards, but do not all necessarily conform to the current legal definition of reserves and resources by CIM. 1 All values are approximate; includes production from the Santoy 8 mine and the Santoy 7 and Porky West bulk samples. 2 Operation suspended in 2014; values are approximate; includes production from the Roy Lloyd, EP, and Komis mines. 3 Mineral Resource includes Ag as 'Au equivalent'.

Saskatchewan Exploration and 10 Saskatchewan Geological Survey Development Highlights 2016 Saskatchewan Ministry of the Economy Gold exploration projects located outside of the Seabee area also continue to advance. Masuparia Gold Corp., along with its joint venture partner Golden Band Resources Inc. (50%), released an updated Mineral Resource estimate for the Greywacke North deposit, approximately 90 km northeast of La Ronge. The updated Mineral Resource includes an Indicated Resource of 255 500 t grading 9.92 g/t Au (5 g/t Au cutoff; 81,500 oz Au) and an Inferred Resource of 59 130 t grading 7.42 g/t Au(14,100 oz Au). It was also recently announced that Comstock Metals Ltd. has acquired the Preview SW gold deposit from previous owner Select Sands Corp. The Preview SW deposit is approximately 40 km north of La Ronge.

6. BASE METALS According to many analysts, the prolonged downturn in the base metals market might have hit bottom in 2016. This is good news for base metals projects in Saskatchewan, where exploration expenditures have dipped from a 10 year high of $12.97 M in 2012 to a forecasted $1.15 M in 2016 (down from actual 2015 expenditures of $3.84 M).

The Flin Flon Domain (Manitoba and Saskatchewan) is one of the pre-eminent base metal mining districts in Canada and one of the largest Paleoproterozoic volcanogenic massive sulphide districts in the world, with more than 170 M t of Cu-Zn-(Au-Ag) sulphide ore processed or under development. The western part of the Flin Flon Domain extends about 80 km into Saskatchewan and has had base metal production in the past. The only current base metal production in the province has come from the Saskatchewan portion of HudBay Minerals’ Flin Flon-based operation.

Much of the base metal exploration in the western Flin Flon Domain over the last 20 years has been focused on its sub-Phanerozoic extension south of Hanson Lake. Most recently, Foran Mining Corporation (Foran) continued work on its McIlvenna Bay deposit and Bigstone and Balsam properties. In November of 2015, Foran announced the results of initial metallurgical test work on the three main mineralized zones of the Bigstone deposit. Each of the zones was reported to have produced high-grade concentrates that could be recovered using conventional flotation processes.

The second area of ongoing base metal exploration in 2016 is the western Kisseynew Domain, where Murchison Minerals Ltd. (Murchison) continued to work on its Zn-Cu-Pb-Ag Brabant–McKenzie deposit. Early in 2016, Murchison completed electromagnetic (TDEM) and magnetic ground geophysical surveys designed to better delineate known conductors in the vicinity of the deposit. The survey identified a number of promising geophysical anomalies along strike of and below the deposit, which have been largely untested by historical drilling.

7. DIAMONDS In 2015, actual expenditures for diamond exploration projects were approximately $17.3 M. Spending in 2016 was anticipated to be $14.5 M and focused on the Star-Orion Kimberlite project (~65 km southeast of Prince Albert), and on grassroots activity in the Deschambault Lake area (290 km northeast of Prince Albert). Subsequent to the completion of the Saskatchewan Geological Survey’s survey of mineral exploration spending intentions for 2016, there has been significant interest in the diamond potential of the northwestern Athabasca Basin. Exploration expenditures there will probably swell spending on diamond exploration in Saskatchewan from that forecast for 2016.

In October 2015, Shore Gold Inc. (Shore) released an updated valuation of diamond parcels from the Star-Orion South project using a June 2015 price book as opposed to the previous valuation that used March 2008 prices. The updated valuation produced model prices between US$161 and US$333 per carat for the diamond populations of the major kimberlite units. In November 2015, Shore released a revised mineral resources estimate for the Star-Orion South project, which included an Indicated Mineral Resource on Star that increased by 38% to 28.2 million carats and a grade increase of 11% to 15 carats per hundred tons (cpht). The Indicated Mineral Resource on Orion South increased by 134% to 27.1 million carats and the grade increased 1% to 14 cpht. In February 2016, Shore began an NQ core-drilling program on the Orion South and Star West kimberlites, as well as drilling in untested areas of kimberlites K606 and K614 within the Snowden claims. An update on the core-drilling program in March 2016 indicated that the company had drilled five holes totalling ~1260 m on the Star West portion of the Star kimberlite, as well as four holes totalling ~798 m on K606 and K614, all of which intersected kimberlite. In June and July 2016, the company conducted NQ core drilling on the western side of the Orion South kimberlite as well as a geotechnical program, which included in situ shear-strength testing of till and the Lower Colorado shale up to 140 m below the

Saskatchewan Exploration and 11 Saskatchewan Geological Survey Development Highlights 2016 Saskatchewan Ministry of the Economy surface. The drilling program consisted of eight holes totalling ~1593 m and encountered ~60 m of kimberlite in one drillhole.

In the Deschambault Lake area, North Arrow Minerals Inc. (North Arrow) was active this past year on its Pikoo project. In the fall of 2015, the company reported the discovery of a new kimberlite, PK311, increasing the number of discrete kimberlite occurrences within the project, at that time, to seven, and released microdiamond analysis results that indicated that PK312, PK314 and PK311 are diamond-bearing, increasing the total number of diamondiferous kimberlites to four. A total of 487 microdiamonds (36% aggregates, 30% octahedral, 16% macles, ~78% white in colour) larger than the 0.106 mm sieve class were recovered from a sample of PK150, with nine diamonds greater than the 0.850 sieve class. Additional results reported include five diamonds from PK312, including four greater than the 0.106 mm sieve class and one greater than the 0.150 mm sieve class; 23 diamonds from PK314 larger than 0.106 mm sieve class; and two diamonds from PK311 with one greater than the 0.106 mm sieve class and one greater than the 0.212 mm sieve class. North Arrow also completed an approximately 1400-line-kilometre helicopter- borne magnetic survey that targeted areas at the up-ice end of kimberlite indicator mineral (KIM) trains, and a fixed- wing magnetic survey covering a number of mineral claims located immediately northeast of the main Pikoo project area. In February and March 2016, the company conducted additional exploration drilling focused on the North, South, and East Pikoo areas. A total of 2124 m was drilled and kimberlite was encountered in 14 of 19 drillholes. At North Pikoo, kimberlite was encountered in seven of nine holes, with the potential discovery of two, and perhaps up to four, new discrete kimberlites, increasing the total number to ten. Microdiamond analysis results from the 2016 drilling program, released in May and July 2016, confirmed that all five Pikoo kimberlites tested to date are diamondiferous. Some of the published results are summarized in Table 5. North Arrow also completed a summer 2016 till-sampling program in which 121 till samples were collected from the North, South and East Pikoo target areas, as well as in the area of a poorly defined KIM train in the southern part of the property.

Table 5 – Summary of some results from North Arrow Minerals Inc.’s 2016 drilling program, showing the number of microdiamonds of various seive class sizes found in four of the kimberlite bodies on their Pikoo property. Kimberlite Body Seive Class Size (in mm) >0.106 >0.150 >0.212 >0.300 >0.425 >0.600 >0.850 PK346 39 1 East PK314 5 West PK314 2 1 1 PK150 163 52 32 16 13 3 1

In the vicinity of North Arrow’s Pikoo project, exploration activity continued over the past year. In fall 2015, Strike Diamond Corporation (Strike Diamond) and Athabasca Nuclear Corporation (Athabasca Nuclear; now Clean Commodities Corporation (Clean Commodities)), flew airborne surveys over their Pikoo area properties with the primary objective of defining geophysical targets that could warrant down-ice till sampling. Strike Diamond flew 8303 line kilometres and Athabasca Nuclear flew 804 line kilometres, both at 50 m line spacing. Subsequent reports on the airborne geophysical surveys indicated that one of the Athabasca Nuclear geophysical anomalies has potential to be a kimberlite and that 18 of Strike Diamond’s geophysical anomalies have potential to be kimberlites (anomalies had ranks 3 out of 5). In January 2016, Copper Reef Mining Corporation (Copper Reef) released the results of analysis of 28 till samples collected on three of the company’s diamond projects (C2, C3 and B1) in summer 2015. Till sampling had focused on high-priority circular aeromagnetic anomalies and results identified a total of 982 KIMs, including peridotitic clinopyroxenes, orthopyroxenes, chromites, olivines (including a forsteritic olivine), chrome diopsides, and picro-ilmenites; 60 of the KIMs were verified by microprobe analysis. This 2015 till sampling outlined a 1.7-kilometre- long southeast-trending KIM train near the southern portion of the C2 property, with the source likely on Copper Reef’s property.

In 2016, a new area for diamond exploration opened up in the northwestern Athabasca Basin. In early 2016, CanAlaska Uranium Ltd. (CanAlaska) announced it had staked approximately 75 kimberlite-style targets (discrete magnetic anomalies with shallow signatures) on the West Athabasca project, based on a high-resolution airborne magnetic survey carried out by the Saskatchewan Geological Survey and the Geological Survey of Canada in 2010. In May 2016, CanAlaska entered into an Option-Participation Agreement with De Beers Canada Inc. (De Beers) for expenditures up to $20.4 M on the West Athabasca project, and optioned two of its claim groups, east of the claims

Saskatchewan Exploration and 12 Saskatchewan Geological Survey Development Highlights 2016 Saskatchewan Ministry of the Economy optioned to De Beers. In June 2016, De Beers collected over 100 samples from eskers on the West Athabasca project for KIM processing. In August, a detailed low-level airborne survey over the West Athabasca project identified 85 magnetic anomalies, enclosing 258 discrete magnetic targets. Several of the magnetic anomalies were modelled: they coalesce to form linear to circular near-surface targets, some of which show a coincident electromagnetic response from earlier survey data. Several of the targets are in excess of 500 m in diameter; however, most of the larger targets are below lakes or swamps. In September 2016, De Beers started a drilling program intending to test 11 kimberlite targets that did not lie beneath lakes. Seven of the 11 targets were drilled before the project was deferred until the winter; none intersected kimberlite.

In April, CanAlaska acquired an additional project, the West Carswell project, encompassing six discrete magnetic anomalies; in August, this property was optioned to Canterra Minerals Corporation (Canterra), who conducted a fixed-wing, 1770-line-kilometre, 50-metre line spacing, high-resolution, airborne magnetic survey. In May 2016, CanAlaska optioned two of its claim groups, east of the claims optioned to De Beers, comprising nine kimberlite-style targets, to Fjordland Exploration Inc. (Fjordland). Other companies that own claims in the area include Appia Energy Corporation, Arctic Star Exploration, Clean Commodities (formerly Athabasca Nuclear Corporation), Deep Uranium Corporation, Diamond Projects Incorporated, and Makena Resources Incorporated.

8. POTASH In 2015, Saskatchewan produced 18.2 M t KCl (Table 6) with a sales value of $6.1 B, compared to 16.9 M t KCl valued at $5.7 B in 2014 and 15.9 M t KCl valued at $5.6 B in 2013. After a sluggish start to 2016, potash sales volumes have improved in the second half of the year since the signing of contracts with India and China. Average potash sales prices, however, continue to lag behind recent years and are some of the lowest in the past decade. These lower prices have led to production cutbacks and to the closure of a number of less efficient operations worldwide. Keeping with its policy of matching production to demand, Potash Corporation of Saskatchewan (PotashCorp) announced plans for inventory control shutdowns at the Cory, Allan and Lanigan mines in 2016, in addition to the permanent closure of its Penobsquis mine in New Brunswick. In August 2016, The Mosaic Company (Mosaic) announced that, as a result of challenging market conditions, the company will idle production at the Colonsay mine for the remainder of 2016. Mosaic believes its lower-cost Esterhazy and Belle Plaine operations, in combination with current inventory, will allow it to meet its short-term supply needs. The challenging market conditions have also impacted Canpotex Ltd. (Canpotex), the company responsible for all off-shore sales of Saskatchewan potash, which has cancelled plans to construct a new export terminal at the Port of Prince Rupert in British Columbia. In a typical year, Canpotex moves 10 to 11 M t of potash, or the equivalent of 100,000 railcars, loading 225 ships destined for numerous international ports.

Table 6 – Saskatchewan potash fiscal year production, by company and mine. Production values are from each company’s annual information forms, which are reported by fiscal year and do not correspond to calendar year values discussed in the main body of this report.

2009 2010 2011 2012 2013 2014 2015 Production Production Production Production Production Production Production Company Mine (M t KCl) (M t KCl) (M t KCl) (M t KCl) (M t KCl) (M t KCl) (M t KCl)

Agrium Vanscoy 0.90 1.78 1.74 1.40 1.70 1.10 1.97 Esterhazy Mosaic (K-1/K-2) 3.00 2.30 3.90 4.00 4.00 4.00 4.30 Belle Plaine 1.80 1.50 2.20 2.30 2.10 2.20 2.10 Colonsay 1.00 0.80 1.10 1.10 1.10 1.40 1.40 PotashCorp Lanigan 0.70 2.37 3.04 1.65 2.24 1.68 1.83 Rocanville 0.95 2.18 2.34 1.57 1.99 2.49 2.48 Allan 0.69 1.10 1.02 1.17 1.18 2.47 2.38 Cory 0.42 0.55 0.78 1.29 1.49 1.18 1.51 Patience Lake 0.10 0.37 0.39 0.29 0.27 0.30 0.26 Production Totals 9.56 12.95 16.51 14.77 16.07 16.82 18.23

Saskatchewan Exploration and 13 Saskatchewan Geological Survey Development Highlights 2016 Saskatchewan Ministry of the Economy The landscape of the North American fertilizer industry is poised for a major change with the recent announcement of a pending merger between PotashCorp and Agrium Inc. (Agrium). In what is being billed as a “merger of equals”, PotashCorp, the world’s largest potash producer, and Agrium, which has over 1400 retail outlets in 7 countries, will combine to form the world’s largest crop nutrient company and the third largest natural resource company in Canada, worth an estimated US$36 B. The new company, which has yet to be named, would be the world’s largest producer of potash and the second largest producer of nitrogen, with nearly 20,000 employees operating in 18 countries. The future partners anticipate the business combination will generate up to $500 M in annual cost savings and should clear all board and regulatory approvals, including those of the Canadian Business Corporations Act, and be finalized around mid-2017. PotashCorp President and CEO Jochen Tilk noted the transaction “does not involve or does not consider a significant change in the workforce” and that the new company would remain committed to Canpotex. Since 2005, Saskatchewan potash producers have invested close to $13.5 B and nearly doubled provincial production capacity.

Construction is nearing completion at K+S’s Legacy potash mine approximately 60 km northwest of Regina, the province’s first new potash mine in over 40 years. Commissioning began in the summer of 2016, however, due to some equipment setbacks production of the first tonne of ore isn’t anticipated to occur until the second quarter of 2017. The mine is still anticipated to reach its full production capacity of 2 M t by the end of 2017. K+S now has over 400 employees on staff and the company estimates that over 90% of the total $4.1 B budget for the project has now been invested. K+S recently announced it was committing nearly $1 M to a habitat offset program, with the intent of having no net loss of native grasslands as a result of the mine construction.

In December of 2015 BHP Billiton Ltd. (BHP) announced it was undertaking cost saving measures for the company’s Jansen underground potash mine project, which included a 70-person workforce reduction in Saskatchewan. Despite the fiscal restraints, BHP stated that the Jansen project is still on track and that the reductions do not represent a delay or slowdown to the project’s schedule. In March 2016, President of BHP’s Canadian unit Giles Hellyer noted that the company has cut $130 M from its current year’s $330 M budget for the ongoing development of the Jansen potash project. Hellyer stated that the company intends to do more with less and complete the work over a slightly longer time horizon. A key focus of current activity is the sinking and lining of the production and service shafts, which by the end of August were reported to be over 60% complete. It’s estimated that BHP has already invested over $3.8 B into the Jansen 8 M tonne-per-year (tpa) megaproject, which has been predicted by analysts to have a total capital cost of about $14 B. BHP has not yet committed to a completion date, or received board approval for the project.

Yancoal Canada Potash Corp. (Yancoal) received approval from the Saskatchewan Ministry of Environment on its environmental assessment for the company’s proposed solution mine near Southey, about 60 km north of Regina. The approval is contingent on Yancoal meeting a number of conditions, including the creation of a community involvement plan and the formation of a community advisory committee. The company must commit to isolating the site from nearby waterways and ensure no off-site impacts to water quality. Yancoal is pleased with the approval, but has yet to receive board approval from its parent company the Yanzhou Coal Mining Co., Ltd., for the proposed 2.8 M tpa mine, which has an estimated $3.6 B capital cost.

In the fall of 2015, shareholders of Western Potash Corp. (Western) voted in favour of a transaction to sell 51% ownership in the company to Beijing Tairui Innovation Capital Management Ltd. for the purchase price of $80 M. China Blue Chemical Canada Holding Corp. invested an additional $720,245 to maintain its 10.1% ownership stake in the company. Western intends to use the investment to fund a pilot study for a newly proposed scalable mining method at the company’s Milestone project area, 30 km southeast of Regina. The study will utilize a selective mining approach that would implement horizontal drilling and dissolution via hot sodium chloride–saturated brines designed to preferentially remove KCl along the Esterhazy potash member, while leaving a lattice of NaCl behind. Western estimates that an initial production capacity of 146 000 tpa could be achieved with a capital investment of $80.6 M.

In April 2016, Encanto Potash Corp. (Encanto) signed a Memorandum of Understanding for a potash offtake agreement with Metals and Minerals Trading Corporation of India (MMTC). MMTC is one of India’s largest public sector trading bodies, handling imports and exports of products such as coal, iron ore and agricultural fertilizers. Encanto is attempting to develop a 2 M tpa solution mine in partnership with the Muskowekwan First Nation.

Saskatchewan Exploration and 14 Saskatchewan Geological Survey Development Highlights 2016 Saskatchewan Ministry of the Economy In November of 2015, Brazilian mining giant Vale announced it was suspending work on its Kronau solution mine project. Despite a recent Feasibility Study that the company felt made a compelling case for a mine in the area, Vale decided that current market conditions made it too difficult to finance the $3.5 B project. Vale laid off most of its 30-person Saskatchewan-based team.

At its Wynyard project, Karnalyte Resources Inc. (Karnalyte) is undertaking an Optimization Program, designed to investigate the feasibility of raising the concentration of recoverable potash-bearing fluids and to confirm design parameters for mine planning. Karnalyte, which is seeking capital to advance its project to production, is attempting to become the first company in the province to economically exploit the potash mineral carnallite [KMgCl3·6(H2O)], rather than sylvite [KCl], which is typically mined. An estimated $700 M in financing is needed for construction of the first phase of Karnalyte’s 625,000 tpa potash mine.

Similar to Western Potash Corp., Gensource Potash Corp. (Gensource) is also proposing to construct a scalable operation using a horizontal selective mining approach. Gensource estimates that they could produce 250 000 tpa at an expected capital cost of $250 M. The company has non-binding letters of intent to purchase product from 12 Brazilian customers, for about 150 000 tonnes annually. In March of 2016, Gensource entered into a Definitive Asset Purchase Agreement with Yancoal to acquire potash permits KP-483 and KP-363. The arrangement contains an offtake agreement for future production and is contingent on the dispositions being converted to Lease status.

9. INDUSTRIAL MINERALS Although exploration for industrial mineral deposit types in 2015 was quiet, there was significant production. There are four producing salt operations, three as byproduct from potash production and one primary producer. K+S Windsor Salt Ltd. produces byproduct salt at Belle Plaine in south-central Saskatchewan. Compass Minerals Canada Corp. produces primary salt at the Unity mine in west-central Saskatchewan. NSC Minerals produces byproduct salt at Rocanville (in southeast Saskatchewan) and Vanscoy (southwest of Saskatoon). ERCO Worldwide produces value-added chlorine-alkali chemicals from salt at its Saskatoon operation. It is estimated that companies will invest about $3.5 M on non-potash industrial mineral projects in Saskatchewan in 2016.

Saskatchewan Mining and Minerals Inc.’s long-standing operation at Chaplin in south-central Saskatchewan remains the only primary sodium sulphate producer in the province. Sodium sulphate is used in a variety of products, including detergents, textiles and carpet deodorizers. In addition, Compass Minerals Wynyard Inc. produces value- added potassium sulphate, which is commonly used in fertilizers, at a plant near Wynyard in east-central Saskatchewan.

Westmoreland Coal Company (Westmoreland) acquired the Boundary Dam, Bienfait, and Poplar River coal mines in southern Saskatchewan in 2014 from Prairie Mines & Royalty Ltd. Since acquiring the Saskatchewan operations, Westmoreland has signed new, long-term supply agreements with Crown Corporation SaskPower and announced it was amalgamating the Bienfait and Boundary Dam mines of southeastern Saskatchewan into one operation, named the Estevan mine. In 2015, Westmoreland produced 10.3 M t of coal, compared to 6.35 M t in 2014, 8.9 M t in 2013 and 9.7 M t in 2012.

Saskatchewan also produced a number of industrial mineral products that have varied uses. Canadian Clay Products Inc. excavates and processes bentonite at an operation near Wilcox, about 41 km south of Regina. Colored Shale Products Inc. mines clinker, a stony residue from burnt coal, from quarries near Willow Bunch, roughly 190 km southwest of Regina, on an ‘as-needed’ basis for use as landscaping material. Premier Tech Horticulture produces horticultural peat from bogs in the Carrot River region of east-central Saskatchewan and processes it at a plant near the town. Wapa Bay Resources produces leonardite on a campaign basis from a small quarry near Wapawekka Lake in northern Saskatchewan. Leonardite is used as an organic soil additive and fertilizer. Weil Group Resources opened a helium processing plant near Mankota in southwest Saskatchewan in August and plans to produce 40 million cubic feet of helium per year.

10. REFERENCE Saskatchewan Geological Survey (2003): Geology, Mineral and Petroleum Resources of Saskatchewan; Saskatchewan Industry and Resources, Miscellaneous Report 2003-7, 173p.

Saskatchewan Exploration and 15 Saskatchewan Geological Survey Development Highlights 2016 Saskatchewan Ministry of the Economy RESOURCE MAP OF SASKATCHEWAN Exploration and Development Highlights 2016 Edition 110° 60° NOLAN KEY TO NUMBERED MINES AND DEPOSITS Tazin Lake #1 Scott Lake # URANIUM TRAIN ZEMLAK URANIUM DODGE ENNADAI Operating Mines/Mills CITY # BEAVERLODGE1 1. McArthur River mine (P2N Zone deposit; Cameco Corp., TALTSON 69.805%; AREVA Resources Canada Inc., 30.195%); ore TANTATO processed at Key Lake mill Black MUDJATIK Lake Athabasca 2. Cigar Lake mine (Cameco Corp., 50.025%; AREVA Resources Fond du Lac STONY Lake RAPIDS Canada Inc., 37.1%; Idemitsu Uranium Exploration Canada Ltd., 7.875%; TEPCO Resources Inc., 5%); ore processed at McClean Fond du Lac River Lake mill Hatchet 3. McClean Lake mill Lake CARSWELL 4. Key Lake mill STRUCTURE Pasfield Lake Locations Referenced in Text 5. Eagle Point mine ATHABASCA BASIN 3 Wollaston # River Waterbury ## Lake 6. Rabbit Lake mill 2 Lake # 5 7. Triple R deposit 955 Cree 2 # 6 8. Arrow deposit, Bow, Cannon, Harpoon and Spitfire zones 9. Gryphon deposit 1 #12 10. Phoenix deposit 7 ##8 11## 11. Fox Lake deposit PETERReindeer LAKE 12. Ken Pen and Paul Bay deposits 9# Cree 905 # GOLD Lake 10 Lake Operating Mines #4 3 1. Seabee mine (includes L62 zone; Claude Resources Inc.) TALTSON # 2. Santoy mine complex (Claude Resources Inc.) # Locations Referenced in Text 3 3. Fisher property 5. Orchid property WOLLASTON Turnor BATHOLITH 4. Chico property 6. Truscott property WATHAMAN 7. Greywacke/Greywacke North LA Lake MUDJATIK LOCHE # COPPER-ZINC 8. Preview SW 1. McIlvenna Bay 155 SOUTHEND 2. Brabant Lake 3. Janice Lake C H U R C H I L L # KISSEYNEW 914 2 4. Borys Lake PATUANAKPATUANAK ROTTENSTONE 5. Callinan mine BUFFALO 6 6. Bigstone Lake deposit 4 LA RONGE102 # NARROWS R I V E R # # 7 2 7. Balsam zone # # SANDY 3 BAY PINEHOUSEPINEHOUSE 1 # # COPPER-NICKEL LAKELAKE #8 # 1. Dinty Lake 918 4 135 165 # RARE EARTH OCCURRENCE Lac La 5# LALA FLIN 1. Hoidas Lake 165  RONGERONGE GLENNIE 3 155 Ronge FLON 2. Douglas River

% 106 3. Fraser Lakes Zone B 4 FLIN FLON # Dore 1  KIMBERLITE OCCURRENCE Lake 2 Deschambault 165 Lake 17 7 5 1. Fort à la Corne kimberlite cluster 15# # 16 #18 5 4 1 AmiskAmisk 6 2. Star-Orion South project Beaver River 6 LakeLake 3. Pikoo district MontrealMontreal LakeLake CumberlandCumberland LakeLake % POTASH AND SALT 55  106 Operating Mines 2 1. Vanscoy potash mine (Agrium Inc.) 2. Cory Division potash mine (Potash Corp.)  3. Patience Lake Division potash solution mine (Potash   4   Corp.)   LLOYDMINSTER  PRINCE 55  4. Allan Division potash mine (Potash Corp.)  1 ALBERT   % 5. Colonsay potash mine (The Mosaic Company) 3  6. Lanigan Division potash mine (Potash Corp.) Saskatchewan River3 2 7. Esterhazy K-1 and K-2 potash mines and K-3 potash 3 mine expansion (The Mosaic Company) Battle River NORTH MELFORT BATTLEFORD 3 8. Rocanville Division potash mine (Potash Corp.) 11 2 HUDSON BAY 9. Belle Plaine potash solution mine (The Mosaic 16 Company) %10 6 North Saskatchewan River 10. Unity solution salt mine and plant (Compass 9 Minerals Canada Corp.) 11 21 HUMBOLDT 11. Saskatoon chloride based chemical plant (ERCO SASKATOON % 3 % % 5 Worldwide) 1 % 4 2 % Locations Referenced in Text % Quill Lakes 5 % 12. Jansen project 17. Wynyard project 7 4 % % % 5 13. Kronau project 18. Foam Lake project 6 12 2 17 14. Legacy project KINDERSLEY 1 % % 19. Albany project 18 15. Milestone project 20. Southey project 16. Muskowekwan project 2 % Last YORKTON % 11 Mountain 16 SODIUM SULPHATE AND POTASSIUM South Saskatchewan River Lake SULPHATE % Operating Plants 20 MELVILLE Lake 16 1. 10 Chaplin Lake sodium sulphate plant Diefenbaker 7 (Saskatchewan Mining and Minerals Inc.) % Qu'Appelle River % 1 2. Big Quill Lake potassium sulphate plant 14 (Compass Minerals Wynyard Inc.) % 1 9 % 1 8 % 21 MOOSE % % CLAY RESOURCES SWIFT CURRENT REGINA 13 JAW % % 19 Operating Quarries 2 1. Saskatoon clay quarry (Cindercrete Products 1 Old Wives 15 MAPLE Lake % Ltd.) 3 Souris CREEK 39 2. Ravenscrag clay quarry (I-XL Industries Ltd.) WEYBURN 3. Wilcox bentonite plant (Canadian Clay 4 13 Products Inc.) 2 ASSINIBOIA % 13 4. Willow Bunch clinker quarries (Colored Shale % 9 % 4 River Products) 1 6 13 Frenchman River 2 ESTEVAN % COAL AND PEAT 21 % 49° %1 2 % 2 Operating Mines 110° 1. Poplar River coal mine (Westmoreland Coal 102° Co.) LEGEND SYMBOLS 2. Estevan coal mine (Westmoreland Coal. Co.) Uranium potential Oil fields Edge of Precambrian Shield 3. Carrot River peat moss plant (Premier Base metal potential Gas fields Precambrian domain boundaries and names Horticulture) Gold potential Oil sands potential Major faults 4. Wapa Bay leonardite quarry (Wapa Bay Coal fields Potash and salt 1 Roads SCALE Resources) Major peat resource potential resource areas Cities % HELIUM Helium resource potential Carnallitic regions 25 0 25 50 75 Kilometres (magnesium) Towns Operating Plant 25 0 25 50 Miles 1. Mankota plant (Weil Group Resources)