$QQXDO,QIRUPDWLRQ)RUP )HEUXDU\

         

 $QQXDO,QIRUPDWLRQ)RUP

 7DEOHRI&RQWHQWV

1RPHQFODWXUH &DXWLRQDU\6WDWHPHQWRQ)RUZDUG/RRNLQJ,QIRUPDWLRQ *ORVVDU\RI7HFKQLFDO7HUPV &RUSRUDWH6WUXFWXUH 1DPH$GGUHVVDQG,QFRUSRUDWLRQ ,QWHUFRUSRUDWH5HODWLRQVKLSV *HQHUDO'HYHORSPHQWRIWKH%XVLQHVV 7KUHH

 $QQXDO,QIRUPDWLRQ)RUP

&RPSHWLWLYH&RQGLWLRQV 5LVN)DFWRUV 'LYLGHQGV 'HVFULSWLRQRI&DSLWDO6WUXFWXUH *HQHUDO'HVFULSWLRQRI&DSLWDO6WUXFWXUH 6KDUH&DSLWDO &UHGLW)DFLOLWLHV 3XEOLF,QGHEWHGQHVV 5DWLQJV 0DUNHWIRU6HFXULWLHV 7UDGLQJ3ULFHDQG9ROXPH 'LUHFWRUVDQG2IILFHUV 'LUHFWRUV 2IILFHUV $XGLW&RPPLWWHH,QIRUPDWLRQ 0DQGDWHRI$XGLW&RPPLWWHH &RPSRVLWLRQRIWKH$XGLW&RPPLWWHH 3UH$SSURYDO3ROLFLHVDQG3URFHGXUHV $XGLWRU¶V)HHV 2ZQHUVKLSE\'LUHFWRUVDQG2IILFHUVDQG,QWHUHVWVLQ0DWHULDO7UDQVDFWLRQV /HJDO3URFHHGLQJVDQG5HJXODWRU\$FWLRQV 7UDQVIHU$JHQWVDQG5HJLVWUDUV 0DWHULDO&RQWUDFWV ,QWHUHVWVRI([SHUWV 'LVFORVXUH3XUVXDQWWRWKH5HTXLUHPHQWVRIWKH1HZ

 $QQXDO,QIRUPDWLRQ)RUP 

1RPHQFODWXUH

,QWKLV$QQXDO,QIRUPDWLRQ)RUPXQOHVVWKHFRQWH[WRWKHUZLVHGLFWDWHV³ZH´³7HFN´RUWKH³&RPSDQ\´ UHIHUVWR7HFN5HVRXUFHV/LPLWHGDQGLWVVXEVLGLDULHV$OOGROODUDPRXQWVH[SUHVVHGWKURXJKRXWWKLV $QQXDO,QIRUPDWLRQ)RUPDUHLQ&DQDGLDQGROODUVXQOHVVRWKHUZLVHQRWHG &DXWLRQDU\6WDWHPHQWRQ)RUZDUG/RRNLQJ,QIRUPDWLRQ

7KLV$QQXDO,QIRUPDWLRQ)RUPFRQWDLQVFHUWDLQIRUZDUGORRNLQJLQIRUPDWLRQDQGIRUZDUGORRNLQJ VWDWHPHQWVDVGHILQHGLQDSSOLFDEOHVHFXULWLHVODZV FROOHFWLYHO\UHIHUUHGWRDVIRUZDUGORRNLQJ VWDWHPHQWV 7KHVHVWDWHPHQWVUHODWHWRIXWXUHHYHQWVRURXUIXWXUHSHUIRUPDQFH$OOVWDWHPHQWVRWKHU WKDQVWDWHPHQWVRIKLVWRULFDOIDFWDUHIRUZDUGORRNLQJVWDWHPHQWV7KHXVHRIDQ\RIWKHZRUGV³DQWLFLSDWH´ ³SODQ´³FRQWLQXH´³HVWLPDWH´³H[SHFW´³PD\´³ZLOO´³SURMHFW´³SUHGLFW´³SRWHQWLDO´³VKRXOG´³EHOLHYH´DQG VLPLODUH[SUHVVLRQVLVLQWHQGHGWRLGHQWLI\IRUZDUGORRNLQJVWDWHPHQWV7KHVHVWDWHPHQWVLQYROYHNQRZQ DQGXQNQRZQULVNVXQFHUWDLQWLHVDQGRWKHUIDFWRUVWKDWPD\FDXVHDFWXDOUHVXOWVRUHYHQWVWRGLIIHU PDWHULDOO\IURPWKRVHDQWLFLSDWHGLQVXFKIRUZDUGORRNLQJVWDWHPHQWV7KHVHVWDWHPHQWVVSHDNRQO\DVRI WKHGDWHRIWKLV$QQXDO,QIRUPDWLRQ)RUP 7KHVHIRUZDUGORRNLQJVWDWHPHQWVLQFOXGHEXWDUHQRWOLPLWHGWRVWDWHPHQWVFRQFHUQLQJ

„ IRUHFDVWSURGXFWLRQ

„ IRUHFDVWRSHUDWLQJFRVWVXQLWFRVWVFDSLWDOFRVWVDQGRWKHUFRVWV

„ VDOHVIRUHFDVWV

„ RXUVWUDWHJLHVREMHFWLYHVDQGJRDOV

„ IXWXUHSULFHVDQGSULFHYRODWLOLW\IRUFRSSHU]LQFVWHHOPDNLQJFRDOEOHQGHGELWXPHQDQG RWKHUSURGXFWVDQGFRPPRGLWLHVWKDWZHSURGXFHDQGVHOODVZHOODVRLOQDWXUDOJDVDQG SHWUROHXPSURGXFWV

„ WKHGHPDQGIRUDQGVXSSO\RIFRSSHU]LQFVWHHOPDNLQJFRDOEOHQGHGELWXPHQDQGRWKHU SURGXFWVDQGFRPPRGLWLHVWKDWZHSURGXFHDQGVHOO

„ H[SHFWHGUHFHLSWRIUHJXODWRU\DSSURYDOVDQGWKHH[SHFWHGWLPLQJWKHUHRI

„ H[SHFWDWLRQVUHJDUGLQJRXUDELOLW\WRPDLQWDLQDQGUHQHZH[LVWLQJOLFHQFHVDQGOHDVHVIRU RXUSURSHUWLHV

„ H[SHFWHGUHFHLSWRUFRPSOHWLRQRISUHIHDVLELOLW\VWXGLHVIHDVLELOLW\VWXGLHVDQGRWKHU VWXGLHVDQGWKHH[SHFWHGWLPLQJWKHUHRILQFOXGLQJRXUH[SHFWDWLRQVUHJDUGLQJWKH UHTXHVWHGPRGLILFDWLRQWR$QWDPLQD¶VFXUUHQW(QYLURQPHQWDO,PSDFW$VVHVVPHQW FHUWLILFDWH

„ SURSRVHGRUH[SHFWHGFKDQJHVLQUHJXODWRU\IUDPHZRUNVDQGWKHLUDQWLFLSDWHGLPSDFWRQ RXUEXVLQHVV

„ RXULQWHUHVWDQGRWKHUH[SHQVHV

„ RXUWD[SRVLWLRQDQGWKHWD[UDWHVDSSOLFDEOHWRXV

„ SLSHOLQHFDSDFLW\IRU&DQDGLDQFUXGHRLODQGWKHDGHTXDF\RIRXUORJLVWLFVDUUDQJHPHQWV UHODWHGWR)RUW+LOOV

„ WKHWLPLQJDQGFRVWVRIFRQVWUXFWLRQDQGSURGXFWLRQZLWKUHVSHFWWRDQGWKHLVVXDQFHRI WKHQHFHVVDU\SHUPLWVDQGRWKHUDXWKRUL]DWLRQVUHTXLUHGIRUFHUWDLQRIRXUGHYHORSPHQW

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP 

DQGH[SDQVLRQSURMHFWVLQFOXGLQJDPRQJRWKHUVWKH4XHEUDGD%ODQFD3KDVH 4%  SURMHFWWKH1XHYD8QLyQFRSSHUSURMHFWDQGRXU3URMHFW6DWHOOLWHSURMHFWV

„ H[SHFWHGPLQHOLYHVDQGWKHSRVVLELOLW\RIH[WHQGLQJPLQHOLYHVWKURXJKWKHGHYHORSPHQW RIQHZDUHDVRURWKHUZLVH

„ HIIHFWLYHQHVVRIRXUWDLOLQJVDQGZDWHUUHODWHGSURMHFWVWRPDQDJHLQFUHDVHGZDWHU YROXPHVDW5HG'RJLQFOXGLQJWKHH[SHFWDWLRQWKDWWKH\ZLOOPLQLPL]HSRWHQWLDO FRQVWUDLQWVRQSURGXFWLRQLQWKHIXWXUH

„ H[SHFWDWLRQVUHJDUGLQJWKH1HSWXQH%XON7HUPLQDOVIDFLOLW\XSJUDGHLQFOXGLQJFRVWV FDSLWDOH[SHQGLWXUHVEHQHILWVDQGWLPLQJRIFRPSOHWLRQRIWKHXSJUDGH

„ WKHFORVXUHRIRXU&DUGLQDO5LYHURSHUDWLRQVDQGRXUH[SHFWDWLRQWKDWZHZLOOEHDEOHWR LQFUHDVHSURGXFWLRQFDSDFLW\DWRXURWKHU(ON9DOOH\PLQHVLQRUGHUWRRIIVHWSURGXFWLRQ ORVVHVIURPWKLVFORVXUH

„ RXUHVWLPDWHVRIWKHTXDQWLW\DQGTXDOLW\RIRXUPLQHUDODQGRLOUHVHUYHVDQGUHVRXUFHV

„ H[SHFWHGEHQHILWVRIWKHDJUHHPHQWVZLWK:HVWVKRUHDQG5LGOH\7HUPLQDOVLQFOXGLQJ SURYLGLQJJUHDWHUIOH[LELOLW\DQGRSWLRQDOLW\FRQWULEXWLQJWRUHGXFHGFRVWVDQGLPSURYHG SHUIRUPDQFHDQGUHOLDELOLW\

„ RXUH[SHFWDWLRQWKDWDSRUWLRQRIFRDOODQGVDVVRFLDWHGZLWKWKH6ZLIWUHJLRQRI)RUGLQJ 5LYHUPD\EHGHYHORSHGDQGPLQHGXQGHUWKH*UHHQKLOOVPLQHSODQ

„ WLPLQJRIFRQVWUXFWLRQDQGFRPSOHWLRQRIRXU)RUGLQJ5LYHU6RXWK$FWLYH:DWHU7UHDWPHQW )DFLOLW\ $:7) DQGVDWXUDWHGURFNILOO 65) IDFLOLWLHV

„ RXUH[SHFWDWLRQWKDW)RUGLQJ5LYHU$:7)ZLOOEHWKHODVWIXOOVFDOH$:7)DQGWKDWIXWXUH WUHDWPHQWIDFLOLWLHVZLOOEH65)V

„ H[SHFWHG(ON9DOOH\ZDWHUWUHDWPHQWVSHQGLQJFDSLWDODQGRSHUDWLQJFRVWVDQGSODQV

„ H[SHFWHGFRVWRILPSOHPHQWLQJLQFUHPHQWDOPHDVXUHVXQGHUWKH2FWREHU'LUHFWLRQ LVVXHGE\(QYLURQPHQWDQG&OLPDWH&KDQJH&DQDGD

„ H[SHFWDWLRQVUHJDUGLQJWKH4%SURMHFWLQFOXGLQJH[SHFWDWLRQVUHJDUGLQJILQDQFLQJ WLPLQJDQGDPRXQWRIFRQWULEXWLRQVFDSDFLW\PLQHOLIHUHJXODWRU\DSSURYDOVSURMHFWHG H[SHQGLWXUHVDQGWKDWZHZLOOEHDEOHWRWUDQVLWLRQWRUHQHZDEOHHQHUJ\IRUDSSUR[LPDWHO\ KDOIRIWKHSRZHUUHTXLUHGIRUWKHRSHUDWLRQRI4%

„ WKHSURGXFWLRQFDSDFLW\SODQQHGSURGXFWLRQOHYHOVDQGIXWXUHSURGXFWLRQRIRXU RSHUDWLRQVDQGRWKHUGHYHORSPHQWSURMHFWVLQFOXGLQJ4XHEUDGD%ODQFD3KDVH

„ DYDLODELOLW\RIWUDQVSRUWDWLRQIRURXUSURGXFWVIURPRXURSHUDWLRQVWRRXUFXVWRPHUV LQFOXGLQJRXUH[SHFWDWLRQVUHJDUGLQJWKHEHQHILWVRIRXUDJUHHPHQWVZLWKWUDQVSRUWDWLRQ SURYLGHUV

„ SRWHQWLDOLPSDFWRIWUDQVSRUWDWLRQSRUWRUSLSHOLQHGLVUXSWLRQVRUSURGXFWLRQGLVUXSWLRQV

„ RXUH[SHFWDWLRQVIRURXU5$&(ŒLQQRYDWLRQGULYHQEXVLQHVVWUDQVIRUPDWLRQSURJUDP

„ DYDLODELOLW\RIRXUFUHGLWIDFLOLWLHV

„ ILQDQFLDODVVXUDQFHUHTXLUHPHQWVUHODWHGWRRXUSURMHFWVDQGUHODWHGDJUHHPHQWV

„ RXUSODQQHGFDSLWDOH[SHQGLWXUHVDQGFDSLWDOVSHQGLQJDQGWLPLQJIRUFRPSOHWLRQRIRXU FDSLWDOSURMHFWV

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP 

„ RXUHVWLPDWHVRIUHFODPDWLRQDQGRWKHUFRVWVUHODWHGWRHQYLURQPHQWDOSURWHFWLRQ

„ RXUIXWXUHFDSLWDODQGPLQHSURGXFWLRQFRVWVLQFOXGLQJWKHFRVWVDQGSRWHQWLDOLPSDFWRI FRPSO\LQJZLWKH[LVWLQJDQGSURSRVHGHQYLURQPHQWDOODZVDQGUHJXODWLRQVLQWKH RSHUDWLRQDQGFORVXUHRIYDULRXVRSHUDWLRQV

„ WKHFRVWVVWHSVDQGSRWHQWLDOLPSDFWRIPDQDJLQJZDWHUTXDOLW\DWRXUFRDORSHUDWLRQV LQFOXGLQJEXWQRWOLPLWHGWRVWDWHPHQWVXQGHU³Description of the Business — Individual Operations — Steelmaking — Elk Valley Water Quality Management´LQFOXGLQJRXU H[SHFWDWLRQVUHJDUGLQJRXUDELOLW\WRH[SDQGRXUZDWHUWUHDWPHQWFDSDFLW\XVLQJDFWLYH ZDWHUWUHDWPHQWIDFLOLWLHVDQGVDWXUDWHGURFNILOOWHFKQRORJ\H[SHFWHGWLPLQJRI FRQVWUXFWLRQDQGFRPSOHWLRQRIRXUYDULRXVSURSRVHGDFWLYHZDWHUWUHDWPHQWDQG VDWXUDWHGURFNILOOIDFLOLWLHVFDSLWDOVSHQGLQJJXLGDQFHRXUH[SHFWDWLRQVIRUZDWHU WUHDWPHQWFDSDFLW\LQWKHIXWXUHWKHUHJXODWRU\SURFHVVUHODWLQJWRDFWLYHZDWHUWUHDWPHQW DQGHVWLPDWHVRIRXUORQJWHUPFRVWVRIZDWHUPDQDJHPHQW

„ RXUH[SHFWDWLRQWKDWZHFDQXSJUDGH1HSWXQH%XON7HUPLQDOV¶RSHUDWLRQDOFRDOFDSDFLW\ WKHEHQHILWVDVVRFLDWHGWKHUHZLWKDQGRXUDQWLFLSDWHGFDSLWDOFRVWVDQGWLPLQJIRU FRPSOHWLRQWKHUHRI

„ H[SHFWDWLRQVUHJDUGLQJWKH4%SURMHFWLQFOXGLQJH[SHFWDWLRQVUHJDUGLQJILQDQFLQJ WLPLQJDQGDPRXQWRIFRQWULEXWLRQVFDSDFLW\PLQHOLIHUHJXODWRU\DSSURYDOVSURMHFWHG H[SHQGLWXUHVDQGRXUH[SHFWDWLRQWKDWWKHRSHUDWLRQZLOOHYHQWXDOO\WUDQVLWLRQWRDIXOO\ DXWRQRPRXVIOHHWDQGWKDWZHZLOOEHDEOHWRWUDQVLWLRQWRUHQHZDEOHHQHUJ\IRU DSSUR[LPDWHO\KDOIRIWKHSRZHUUHTXLUHGIRUWKHRSHUDWLRQRI4%

„ H[SHFWHGVSHQGLQJDQGDFWLYLWLHVDWRXU3URMHFW6DWHOOLWHSURSHUWLHV

„ DQWLFLSDWHGEHQHILWVWLPLQJDQGFRVWVRIWKH5HG'RJPLOOXSJUDGHSURMHFW

„ RXUILQDQFLDODQGRSHUDWLQJREMHFWLYHV

„ RXUH[SORUDWLRQHQYLURQPHQWDOFRPPXQLW\KHDOWKDQGVDIHW\LQLWLDWLYHV

„ WKHRXWFRPHRIOHJDODQGUHJXODWRU\SURFHHGLQJVDQGRWKHUGLVSXWHVLQZKLFKZHDUH LQYROYHGLQFOXGLQJSRWHQWLDOFKDUJHVXQGHUWKHFisheries ActDQGWKH8SSHU&ROXPELD 5LYHU%DVLQOLWLJDWLRQDQGDQ\WLPLQJRURWKHUH[SHFWDWLRQVLQUHVSHFWWKHUHRI

„ WKHRXWFRPHRIRXUFRDOVDOHVQHJRWLDWLRQVDQGQHJRWLDWLRQVZLWKPHWDOVDQGFRQFHQWUDWH FXVWRPHUVFRQFHUQLQJWUHDWPHQWFKDUJHVSULFHDGMXVWPHQWVDQGSUHPLXPV

„ RXUH[SHFWDWLRQWKDWZHZLOOUHFHLYHDSRUWLRQRIRXUFDUERQWD[H[SHQGLWXUHVEDFNXQGHU WKH&OHDQ%&3URJUDPIRU,QGXVWU\

„ RXUH[SHFWDWLRQVUHJDUGLQJWKHDPRXQWRI&ODVV%VXERUGLQDWHYRWLQJVKDUHVWKDWPLJKW EHSXUFKDVHGXQGHUWKHQRUPDOFRXUVHLVVXHUELGDQGWKHPHFKDQLFVWKHUHRI

„ RXUGLYLGHQGSROLF\DQGFDSLWDODOORFDWLRQIUDPHZRUNDQG

„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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP 

SURFHVVHVJURXQGFRQWUROSUREOHPVDGYHUVHZHDWKHUFRQGLWLRQVSURFHVVXSVHWVDQGHTXLSPHQW PDOIXQFWLRQVULVNVDVVRFLDWHGZLWKDQ\GDPDJHWRRXUUHSXWDWLRQULVNVDVVRFLDWHGZLWKWKH&DQDGLDQ Corruption of Foreign Public Officials Act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¶FODLPVDQGRWKHUWLWOH ULVNVVRFLDODQGSROLWLFDOULVNVDVVRFLDWHGZLWKRSHUDWLRQVLQIRUHLJQFRXQWULHVULVNVDVVRFLDWHGZLWKWKH SUHSDUDWLRQRIRXUILQDQFLDOVWDWHPHQWVULVNVUHODWHGWRWUDGHEDUULHUVRULPSRUWUHVWULFWLRQVULVNVRI FKDQJHVLQWD[ODZVRUWKHLULQWHUSUHWDWLRQULVNVDVVRFLDWHGZLWKLQIRUPDWLRQWHFKQRORJ\LQFOXGLQJ F\EHUVHFXULW\ULVNVDQGULVNVDVVRFLDWHGZLWKWKHIDLOXUHRIVXFKLQIRUPDWLRQWHFKQRORJ\WRDFKLHYHWKH EHQHILWVZHH[SHFWDQGULVNVDVVRFLDWHGZLWKWD[UHDVVHVVPHQWVDQGOHJDOSURFHHGLQJV6HH³Risk Factors´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³Description of the Business — Individual Operations — Steelmaking Coal — Elk Valley Water Quality Management´ 'HFODUDWLRQDQGSD\PHQWRIGLYLGHQGVDQGFDSLWDODOORFDWLRQDUHJHQHUDOO\WKHGLVFUHWLRQRIWKH%RDUGDQG RXUGLYLGHQGSROLF\DQGFDSLWDODOORFDWLRQIUDPHZRUNZLOOEHUHYLHZHGUHJXODUO\DQGPD\FKDQJH $FWXDOUHVXOWVDQGGHYHORSPHQWVDUHOLNHO\WRGLIIHUDQGPD\GLIIHUPDWHULDOO\IURPWKRVHH[SUHVVHGRU LPSOLHGE\WKHIRUZDUGORRNLQJVWDWHPHQWVFRQWDLQHGLQWKLV$QQXDO,QIRUPDWLRQ)RUP6XFKVWDWHPHQWV DUHEDVHGRQDQXPEHURIDVVXPSWLRQVWKDWPD\SURYHWREHLQFRUUHFWLQFOXGLQJEXWQRWOLPLWHGWR DVVXPSWLRQVUHJDUGLQJ

„ JHQHUDOEXVLQHVVDQGHFRQRPLFFRQGLWLRQV

„ LQWHUHVWUDWHV

„ FRPPRGLW\DQGSRZHUSULFHV

„ DFWVRIIRUHLJQRUGRPHVWLFJRYHUQPHQWVDQGWKHRXWFRPHRIOHJDOSURFHHGLQJV

„ WKHVXSSO\DQGGHPDQGIRUGHOLYHULHVRIDQGWKHOHYHODQGYRODWLOLW\RISULFHVRIFRSSHU ]LQFFRDODQGEOHQGHGELWXPHQDQGRXURWKHUPHWDOVDQGPLQHUDOVDVZHOODVRLOQDWXUDO JDVDQGRWKHUSHWUROHXPSURGXFWV

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP 

„ WKHWLPLQJRIWKHUHFHLSWRISHUPLWVDQGRWKHUUHJXODWRU\DQGJRYHUQPHQWDODSSURYDOVIRU RXUGHYHORSPHQWSURMHFWVDQGRWKHURSHUDWLRQVLQFOXGLQJPLQHH[WHQVLRQV

„ WKHUHVXOWVIURPVWXGLHVRQRXUH[SDQVLRQDQGGHYHORSPHQWSURMHFWV

„ RXUFRVWVRISURGXFWLRQDQGRXUSURGXFWLRQDQGSURGXFWLYLW\OHYHOVDVZHOODVWKRVHRI RXUFRPSHWLWRUV

„ RXUDELOLW\WRVHFXUHDGHTXDWHWUDQVSRUWDWLRQSLSHOLQHDQGSRUWVHUYLFHVIRURXUSURGXFWV

„ FRQWLQXLQJDYDLODELOLW\RIZDWHUDQGSRZHUUHVRXUFHVIRURXURSHUDWLRQV

„ FUHGLWPDUNHWFRQGLWLRQVDQGFRQGLWLRQVLQILQDQFLDOPDUNHWVJHQHUDOO\

„ WKHDYDLODELOLW\RIIXQGLQJWRUHILQDQFHRXUERUURZLQJVDVWKH\EHFRPHGXHRUWRILQDQFH RXUGHYHORSPHQWSURMHFWVRQUHDVRQDEOHWHUPVDQGDWDUHDVRQDEOHFRVW

„ DYDLODELOLW\RIOHWWHUVRIFUHGLWDQGRWKHUIRUPVRIILQDQFLDODVVXUDQFHDFFHSWDEOHWR UHJXODWRUVIRUUHFODPDWLRQDQGRWKHUERQGLQJUHTXLUHPHQWV

„ RXUDELOLW\WRSURFXUHHTXLSPHQWDQGRSHUDWLQJVXSSOLHVDQGVHUYLFHVLQVXIILFLHQW TXDQWLWLHVRQDWLPHO\EDVLV

„ WKHDYDLODELOLW\RITXDOLILHGHPSOR\HHVDQGFRQWUDFWRUVIRURXURSHUDWLRQVLQFOXGLQJRXU QHZGHYHORSPHQWVDQGRXUDELOLW\WRDWWUDFWDQGUHWDLQVNLOOHGHPSOR\HHV

„ WKHVDWLVIDFWRU\QHJRWLDWLRQRIFROOHFWLYHDJUHHPHQWVZLWKXQLRQL]HGHPSOR\HHV

„ WKHLPSDFWRIFKDQJHVLQ&DQDGLDQ86GROODUDQGRWKHUIRUHLJQH[FKDQJHUDWHVRQRXU FRVWVDQGUHVXOWV

„ HQJLQHHULQJDQGFRQVWUXFWLRQWLPHWDEOHVDQGFDSLWDOFRVWVIRURXUGHYHORSPHQWDQG H[SDQVLRQSURMHFWV

„ WKHEHQHILWVRIWHFKQRORJ\IRURXURSHUDWLRQVDQGGHYHORSPHQWSURMHFWVLQFOXGLQJWKH LPSDFWRIRXU5$&(ŒSURJUDP

„ FRVWVRIFORVXUHDQGHQYLURQPHQWDOFRPSOLDQFHFRVWVJHQHUDOO\RIRSHUDWLRQV

„ PDUNHWFRPSHWLWLRQ

„ WKHDFFXUDF\RIRXUUHVHUYHDQGUHVRXUFHHVWLPDWHV LQFOXGLQJZLWKUHVSHFWWRVL]HJUDGH DQGUHFRYHUDELOLW\ DQGWKHJHRORJLFDORSHUDWLRQDODQGSULFHDVVXPSWLRQVRQZKLFKWKHVH DUHEDVHG

„ WD[EHQHILWVDQGWD[UDWHV

„ WKHRXWFRPHRIRXUFRDOSULFHDQGYROXPHQHJRWLDWLRQVZLWKFXVWRPHUV

„ WKHRXWFRPHRIRXUFRSSHU]LQFDQGOHDGFRQFHQWUDWHWUHDWPHQWDQGUHILQLQJFKDUJH QHJRWLDWLRQVZLWKFXVWRPHUV

„ FXUWDLOPHQWPHDVXUHVRQRLOSURGXFWLRQWDNHQE\WKH*RYHUQPHQWRI$OEHUWD

„ WKHUHVROXWLRQRIHQYLURQPHQWDODQGRWKHUSURFHHGLQJVRUGLVSXWHV

„ WKHIXWXUHVXSSO\RIORZFRVWSRZHUWRWKH7UDLOVPHOWLQJDQGUHILQLQJFRPSOH[

„ RXUDELOLW\WRREWDLQFRPSO\ZLWKDQGUHQHZSHUPLWVOLFHQFHVDQGOHDVHVLQDWLPHO\ PDQQHUDQG

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP 

„ RXURQJRLQJUHODWLRQVZLWKRXUHPSOR\HHVDQGZLWKRXUEXVLQHVVDQGMRLQWYHQWXUH SDUWQHUV ,QDGGLWLRQDVVXPSWLRQVUHJDUGLQJWKH(ON9DOOH\:DWHU4XDOLW\3ODQLQFOXGHDVVXPSWLRQVWKDWDGGLWLRQDO WUHDWPHQWZLOOEHHIIHFWLYHDWVFDOHDQGWKDWWKHWHFKQRORJ\DQGIDFLOLWLHVRSHUDWHDVH[SHFWHGDVZHOODV DGGLWLRQDODVVXPSWLRQVGLVFXVVHGXQGHUWKHKHDGLQJ³Description of the Business — Individual Operations — Steelmaking Coal — Elk Valley Water Quality Management´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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP 

&DXWLRQDU\1RWHWR86,QYHVWRUV&RQFHUQLQJ(VWLPDWHVRI0HDVXUHG,QGLFDWHG DQG,QIHUUHG0LQHUDO5HVRXUFHVDQG2LODQG*DV5HVHUYHV

7KLV$QQXDO,QIRUPDWLRQ)RUPKDVEHHQSUHSDUHGLQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVRIWKHVHFXULWLHV ODZVLQHIIHFWLQ&DQDGDZKLFKGLIIHUIURPWKHUHTXLUHPHQWVRI86VHFXULWLHVODZV ,QWKLV$QQXDO,QIRUPDWLRQ)RUPZHXVHWKHWHUP³PLQHUDOUHVRXUFHV´DQGLWVVXEFDWHJRULHV³PHDVXUHG´ ³LQGLFDWHG´DQG³LQIHUUHG´PLQHUDOUHVRXUFHV5HDGHUVDUHDGYLVHGWKDWZKLOHVXFKWHUPVDUHUHTXLUHGE\ &DQDGLDQUHJXODWLRQVWKH866HFXULWLHVDQG([FKDQJH&RPPLVVLRQ 6(& GRHVQRWFXUUHQWO\UHTXLUH 86PLQLQJFRPSDQLHVLQWKHLUILOLQJVZLWKWKH6(&WRGLVFORVHHVWLPDWHVRIPLQHUDOUHVRXUFHV,QYHVWRUV DUHFDXWLRQHGQRWWRDVVXPHWKDWDQ\SDUWRUDOORIWKHPLQHUDOUHVRXUFHVLQWKHVHFDWHJRULHVZLOOHYHUEH FRQYHUWHGLQWRUHVHUYHV³,QIHUUHGPLQHUDOUHVRXUFHV´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³PHDVXUHG´³LQGLFDWHG´DQG³LQIHUUHG´PLQHUDOUHVRXUFHV &DQDGLDQVWDQGDUGVRIRLODQGJDVGLVFORVXUHDOVRGLIIHUVLJQLILFDQWO\IURPWKHUHTXLUHPHQWVRIWKH6(& DQGRLODQGJDVUHVHUYHDQGUHVRXUFHLQIRUPDWLRQFRQWDLQHGLQWKLV$QQXDO,QIRUPDWLRQ)RUPPD\QRWEH FRPSDUDEOHWRVLPLODULQIRUPDWLRQGLVFORVHGE\86FRPSDQLHV7KHRLODQGJDVUHVHUYHVHVWLPDWHVLQWKLV $QQXDO,QIRUPDWLRQ)RUPKDYHEHHQSUHSDUHGLQDFFRUGDQFHZLWK1DWLRQDO,QVWUXPHQW ²Standards of Disclosure for Oil and Gas Activities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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP 

*ORVVDU\RI7HFKQLFDO7HUPV

ELWXPHQDQDWXUDOO\RFFXUULQJKHDY\YLVFRXVFUXGHRLO EOHQGHGELWXPHQELWXPHQEOHQGHGZLWKGLOXHQWWRUHGXFHLWVYLVFRVLW\VXFKWKDWWKHFRPELQHGSURGXFW FDQEHHDVLO\SXPSHGWKURXJKDSLSHOLQHDQGSODFHGLQVWRUDJHIDFLOLWLHV FDWKRGHDQHOHFWURGHLQDQHOHFWURO\WLFFHOOZKHUHHOHFWURQVHQWHUWKDWUHSUHVHQWVWKHILQDOSURGXFWRIDQ HOHFWURO\WLFPHWDOUHILQLQJSURFHVV FOHDQFRDOFRDOWKDWKDVEHHQSURFHVVHGWRVHSDUDWHLPSXULWLHVDQGLVLQDIRUPVXLWDEOHIRUVDOH FRNLQJFRDOFRDOSRVVHVVLQJSK\VLFDODQGFKHPLFDOFKDUDFWHULVWLFVWKDWIDFLOLWDWHWKHFRQYHUVLRQLQWR FRNHZKLFKLVXVHGLQWKHVWHHOPDNLQJSURFHVV&RNLQJFRDOPD\DOVREHUHIHUUHGWRDVPHWDOOXUJLFDOFRDO FRQFHQWUDWHDSURGXFWFRQWDLQLQJYDOXDEOHPLQHUDOVIURPZKLFKPRVWRIWKHZDVWHURFNLQWKHRUHKDV EHHQHOLPLQDWHGLQDPLOORUFRQFHQWUDWRU FUXGHRLOXQUHILQHGOLTXLGK\GURFDUERQVH[FOXGLQJQDWXUDOJDVOLTXLGV GXPSOHDFKDSURFHVVWKDWLQYROYHVGLVVROYLQJDQGUHFRYHULQJPLQHUDOVIURPW\SLFDOO\ORZHUJUDGH XQFUXVKHGRUHIURPDPLQHGXPS IORWDWLRQDPHWKRGRIPLQHUDOVHSDUDWLRQLQZKLFKDYDULHW\RIUHDJHQWVIDFLOLWDWHWKHDWWDFKPHQWRIFHUWDLQ PLQHUDOVRQWRWKHVXUIDFHRIDIURWKZKLOHRWKHUPLQHUDOVVLQNWKXVHIIHFWLQJWKHVHSDUDWLRQRIYDOXDEOH PLQHUDOVIURPQRQYDOXDEOHPLQHUDOV JUDGHWKHFODVVLILFDWLRQRIDQRUHDFFRUGLQJWRLWVFRQWHQWRIHFRQRPLFDOO\YDOXDEOHPDWHULDOH[SUHVVHG DVJUDPVSHUWRQQHIRUSUHFLRXVPHWDOVDQGDVDSHUFHQWDJHIRUPRVWRWKHUPHWDOV KDUGFRNLQJFRDODW\SHRIFRNLQJFRDOXVHGSULPDULO\IRUPDNLQJKLJKVWUHQJWKFRNHIRUXVHLQLQWHJUDWHG VWHHOPLOOV K\SRJHQHSULPDU\VXOSKLGHRUHORFDWHGEHQHDWKVKDOORZ]RQHVRIRUHDIIHFWHGE\ZHDWKHULQJSURFHVVHV /0(/RQGRQ0HWDOV([FKDQJH PLOODSODQWLQZKLFKRUHLVJURXQGWRUHGXFHSDUWLFOHVL]HSK\VLFDOO\OLEHUDWLQJYDOXDEOHIURPQRQ YDOXDEOHPLQHUDOV RLOVDQGVVDQGDQGURFNPDWHULDOWKDWFRQWDLQVELWXPHQ RUHQDWXUDOO\RFFXUULQJPDWHULDOIURPZKLFKPLQHUDOVRIHFRQRPLFYDOXHFDQEHH[WUDFWHGDWDUHDVRQDEOH SURILW RUHERG\DFRQWLJXRXVZHOOGHILQHGPDVVRIPDWHULDORIVXIILFLHQWRUHFRQWHQWWRPDNHH[WUDFWLRQ HFRQRPLFDOO\IHDVLEOH SXOYHUL]HGFRDOLQMHFWLRQ 3&, FRDOFRDOWKDWLVSXOYHUL]HGDQGLQMHFWHGLQWRDEODVWIXUQDFH7KRVH JUDGHVRIFRDOXVHGLQWKH3&,SURFHVVDUHJHQHUDOO\QRQFRNLQJ3&,JUDGHFRDOLVXVHGSULPDULO\DVD KHDWVRXUFHLQWKHVWHHOPDNLQJSURFHVVLQSDUWLDOUHSODFHPHQWIRUKLJKTXDOLW\FRNLQJFRDOVZKLFKDUH W\SLFDOO\PRUHH[SHQVLYH VHPLDXWRJHQRXVJULQGLQJ 6$* DPHWKRGRIJULQGLQJURFNLQZKLFKSDUWLFOHVL]HUHGXFWLRQLVDFKLHYHG WKURXJKWKHWXPEOLQJDFWLRQRIDURWDWLQJJULQGLQJPLOOWKDWSULPDULO\XWLOL]HVWKHFRQWDFWRIURFNRQURFN VXSSOHPHQWHGZLWKVWHHOJULQGLQJEDOOVWREUHDNGRZQSDUWLFOHV VPHOWHUDSODQWLQZKLFKFRQFHQWUDWHVDUHSURFHVVHGLQWRDQXSJUDGHGSURGXFWE\DSSOLFDWLRQRIKHDW

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP 

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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP 

&RUSRUDWH6WUXFWXUH

1DPH$GGUHVVDQG,QFRUSRUDWLRQ

7HFN5HVRXUFHV/LPLWHGZDVFRQWLQXHGXQGHUWKH Business Corporations Act LQ,WLVWKH FRQWLQXLQJFRPSDQ\UHVXOWLQJIURPWKHPHUJHULQRIWKHLQWHUHVWVRI7KH7HFN+XJKHV*ROG0LQHV /WG/DPDTXH*ROG0LQHV/LPLWHGDQG&DQDGLDQ'HYRQLDQ3HWUROHXP/WGFRPSDQLHVLQFRUSRUDWHGLQ DQGUHVSHFWLYHO\2YHUWKH\HDUVVHYHUDORWKHUUHRUJDQL]DWLRQVKDYHEHHQXQGHUWDNHQ 7KHVHLQFOXGHRXUPHUJHUZLWK%UDPHGD5HVRXUFHV/LPLWHGDQG7KH

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP 

,QWHUFRUSRUDWH5HODWLRQVKLSV

2XUILQDQFLDOVWDWHPHQWVFRQVROLGDWHWKHDFFRXQWVRIDOORIRXUVXEVLGLDULHV2XUPDWHULDOVXEVLGLDULHVDV DW'HFHPEHUDUHOLVWHGEHORZ8QOHVVRWKHUZLVHLQGLFDWHGDOOVXEVLGLDULHVOLVWHGEHORZDUH ZKROO\RZQHGE\7HFN,QGHQWDWLRQLQGLFDWHVWKDWWKHPDMRULW\RIWKHYRWLQJVHFXULWLHVRIWKHUHOHYDQW VXEVLGLDU\DUHKHOGE\WKHVXEVLGLDU\OLVWHGDERYH

&RPSDQ\1DPH -XULVGLFWLRQRI2UJDQL]DWLRQRU )RUPDWLRQ

7HFN6RXWK$PHULFDQ+ROGLQJV/WG &DQDGD

 7HFN&KLOHDQ+ROGLQJV/WG &DQDGD

 7HFN5HVRXUFHV&KLOH/LPLWDGD &KLOH

 4XHEUDGD%ODQFD+ROGLQJV6S$  &KLOH

 &RPSDxtD0LQHUD7HFN4XHEUDGD%ODQFD6$  &KLOH

 7HFN%DVH0HWDOV/WG &DQDGD

7HFN0HWDOV/WG &DQDGD

7HFN5HVRXUFHV&RDO3DUWQHUVKLS %ULWLVK&ROXPELD

 )RUGLQJ3DUWQHUVKLS $OEHUWD

 7HFN&RDO3DUWQHUVKLS $OEHUWD

 (ONYLHZ0LQH/LPLWHG3DUWQHUVKLS   $OEHUWD

7HFN+LJKODQG9DOOH\&RSSHU3DUWQHUVKLS %ULWLVK&ROXPELD

7&/86+ROGLQJV/WG &DQDGD

 7&$,,QFRUSRUDWHG :DVKLQJWRQ86$

 7HFN$PHULFDQ,QFRUSRUDWHG :DVKLQJWRQ86$

 7HFN$ODVND,QFRUSRUDWHG $ODVND86$  KHOGGLUHFWO\RULQGLUHFWO\E\7HFN  KHOGGLUHFWO\RULQGLUHFWO\E\7HFN  KHOGGLUHFWO\RULQGLUHFWO\E\7HFN ,QDGGLWLRQWRWKHDERYHZHRZQGLUHFWO\RULQGLUHFWO\

„ DOLPLWHGSDUWQHUVKLSLQWHUHVWLQ)RUW+LOOV(QHUJ\/LPLWHG3DUWQHUVKLS

„ DLQGLUHFWVKDUHLQWHUHVWLQ&RPSDxtD0LQHUD7HFN&DUPHQGH$QGDFROOR6$DQG

„ DLQGLUHFWVKDUHLQWHUHVWLQ&RPSDxtD0LQHUD$QWDPLQD6$

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP 

7KHIROORZLQJFKDUWVHWVRXWWKHUHODWLRQVKLSVDPRQJRXUPDWHULDOVXEVLGLDULHVDVDW'HFHPEHU &HUWDLQDVSHFWVRIWKHRZQHUVKLSVWUXFWXUHKDYHEHHQVLPSOLILHG$OOPDWHULDOVXEVLGLDULHVDUHZKROO\ RZQHGXQOHVVRWKHUZLVHVSHFLILHG



7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

*HQHUDO'HYHORSPHQWRIWKH%XVLQHVV

7KUHH



,QDYHUDJHDQQXDOSULFHVIRURXUSULQFLSDOSURGXFWVLQFUHDVHGFRPSDUHGWR$YHUDJHUHDOL]HG DQQXDOSULFHVLQIRUFRSSHU]LQFDQGVWHHOPDNLQJFRDOZHUH86SHUSRXQG86SHU SRXQGDQG86SHUWRQQHUHVSHFWLYHO\FRPSDUHGZLWK86SHUSRXQG86SHUSRXQGDQG 86SHUWRQQHUHVSHFWLYHO\LQ7KHDYHUDJHUHDOL]HGDQQXDOSULFHIRURXUEOHQGHGELWXPHQLQ ZDV86SHUEDUUHO 'XULQJWKH\HDUZHDFKLHYHGILUVWRLODW)RUW+LOOVFRPSOHWHGWKHVDOHRIRXULQWHUHVWLQWKH:DQHWD'DP DFTXLUHGDQDGGLWLRQDOLQWHUHVWLQ&RPSDxt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



,QDYHUDJHSULFHVIRUFRSSHU]LQFDQGVWHHOPDNLQJFRDOZHUHDQGUHVSHFWLYHO\ ORZHUWKDQLQZKLOHEOHQGHGELWXPHQSULFHVZHUHXS$YHUDJHUHDOL]HGDQQXDOSULFHVLQ

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

IRUFRSSHU]LQFVWHHOPDNLQJFRDODQGEOHQGHGELWXPHQZHUH86SHUSRXQG86SHUSRXQG 86SHUWRQQHDQG86SHUEDUUHOUHVSHFWLYHO\FRPSDUHGWR86SHUSRXQG86SHU SRXQG86SHUWRQQHDQG86SHUEDUUHOUHVSHFWLYHO\LQ 'XULQJWKH\HDUZHZHUHUHLQVWDWHGWRLQYHVWPHQWJUDGHE\0RRG\¶V,QYHVWRUV6HUYLFHDQG)LWFK5DWLQJV FRPSOHWHGWKHSUHYLRXVO\DQQRXQFHGSDUWQHULQJWUDQVDFWLRQLQUHVSHFWRI4%6$EHJDQLPSOHPHQWLQJRXU 5$&(Œ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Œ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¶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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

'HVFULSWLRQRIWKH%XVLQHVV

*HQHUDO

7HFN¶VEXVLQHVVLVH[SORULQJIRUDFTXLULQJGHYHORSLQJDQGSURGXFLQJQDWXUDOUHVRXUFHV2XUDFWLYLWLHVDUH RUJDQL]HGLQWREXVLQHVVXQLWVIRFXVHGRQFRSSHU]LQFVWHHOPDNLQJFRDODQGHQHUJ\7KHVHDUH VXSSRUWHGE\7HFN¶VFRUSRUDWHRIILFHVZKLFKPDQDJHFRUSRUDWHJURZWKLQLWLDWLYHVDQGSURYLGHPDUNHWLQJ DGPLQLVWUDWLYHWHFKQLFDOILQDQFLDODQGRWKHUVHUYLFHV:HKDYHLQWHUHVWVLQWKHIROORZLQJRSHUDWLRQV

 7\SHRI2SHUDWLRQ -XULVGLFWLRQ

+LJKODQG9DOOH\ &RSSHU0RO\EGHQXP0LQH %ULWLVK&ROXPELD&DQDGD

$QWDPLQD &RSSHU=LQF0LQH $QFDVK3HUX

4XHEUDGD%ODQFD &RSSHU0LQH 5HJLRQ,&KLOH

&DUPHQGH$QGDFROOR &RSSHU*ROG0LQH 5HJLRQ,9&KLOH

7UDLO2SHUDWLRQV =LQF/HDG5HILQHU\ %ULWLVK&ROXPELD&DQDGD

5HG'RJ =LQF/HDG0LQH $ODVND86$

(ONYLHZ 6WHHOPDNLQJ&RDO0LQH %ULWLVK&ROXPELD&DQDGD

)RUGLQJ5LYHU 6WHHOPDNLQJ&RDO0LQH %ULWLVK&ROXPELD&DQDGD

*UHHQKLOOV 6WHHOPDNLQJ&RDO0LQH %ULWLVK&ROXPELD&DQDGD

/LQH&UHHN 6WHHOPDNLQJ&RDO0LQH %ULWLVK&ROXPELD&DQDGD

)RUW+LOOV 2LO6DQGV0LQLQJDQG3URFHVVLQJ2SHUDWLRQ $OEHUWD&DQDGD

2XUSULQFLSDOSURGXFWVDUHFRSSHU]LQFVWHHOPDNLQJFRDODQGEOHQGHGELWXPHQ,QDGGLWLRQZHSURGXFH OHDGVLOYHUPRO\EGHQXPDQGYDULRXVVSHFLDOW\DQGRWKHUPHWDOVFKHPLFDOVDQGIHUWLOL]HUV:HDOVR DFWLYHO\H[SORUHIRUFRSSHU]LQFDQGJROG7KHIROORZLQJWDEOHVHWVRXWRXUUHYHQXHE\SURGXFWIRUHDFKRI RXUODVWWZRILQDQFLDO\HDUV

      %LOOLRQV   %LOOLRQV 

&RSSHU      

=LQF      

&RDO    

%OHQGHG%LWXPHQ    

2WKHU      

7RWDO       &RSSHUUHYHQXHVLQFOXGHVDOHVRIFRSSHUFRQWDLQHGLQFRQFHQWUDWHVDQGFDWKRGHFRSSHU   =LQFUHYHQXHVLQFOXGHVDOHVRIUHILQHG]LQFDQG]LQFFRQFHQWUDWH   2WKHUUHYHQXHVLQFOXGHVDOHVRIVLOYHUOHDGJROGPRO\EGHQXPYDULRXVVSHFLDOW\PHWDOVFKHPLFDOVDQGIHUWLOL]HU

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

3URGXFW6XPPDU\

&233(5

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¶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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

=,1&

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¶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¶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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

EHDERYHJOREDOPHWDOGHPDQGZKLFKLVIRUHFDVWWRJURZWRPLOOLRQWRQQHVVXJJHVWLQJWKDWWKH UHILQHGPHWDOPDUNHWZLOOEHLQDPLOOLRQWRQQHVXUSOXVLQ $OORIRXUUHYHQXHVIURPVDOHVRIUHILQHG]LQFDQG]LQFFRQFHQWUDWHV RWKHUWKDQ]LQFFRQFHQWUDWHV SURGXFHGDW5HG'RJWKDWDUHVROGWR7UDLO ZHUHGHULYHGIURPVDOHVWRWKLUGSDUWLHV:HVWULYHWR GLIIHUHQWLDWHRXUUHILQHGPHWDOSURGXFWVE\SURGXFLQJWKHDOOR\VVL]HVDQGVKDSHVEHVWVXLWHGWRRXU FXVWRPHUV¶QHHGV 7UDLO¶VVXSSO\RI]LQFDQGOHDGFRQFHQWUDWHVRWKHUWKDQWKRVHVRXUFHGIURP5HG'RJLVSURYLGHGSULPDULO\ WKURXJKORQJWHUPFRQWUDFWVZLWKPLQHSURGXFHUVLQ1RUWK$PHULFD6RXWK$PHULFDDQG$XVWUDOLD

67((/0$.,1*&2$/

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¶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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

4XDUWHUO\FRQWUDFWSULFHGVDOHVUHSUHVHQWDSSUR[LPDWHO\RIRXUVDOHVZLWKWKHEDODQFHRIRXUVDOHV SULFHGDWOHYHOVUHIOHFWLQJPDUNHWFRQGLWLRQVZKHQVDOHVDUHFRQFOXGHG7KHPDMRULW\RIRXUORZHUJUDGH VHPLVRIWDQG3&,VDOHVFRQWLQXHWREHQHJRWLDWHGRQDTXDUWHUO\EHQFKPDUNEDVLV 6XEVWDQWLDOO\DOORIRXUUHYHQXHVIURPVDOHVRIFRDOSURGXFWVZHUHGHULYHGIURPVDOHVWRWKLUGSDUW\HQG XVHUVPRVWRIZKLFKDUHVWHHOPDNHUV

(1(5*<

2XUVKDUHRI)RUW+LOOVELWXPHQSURGXFWLRQLVWUDQVSRUWHGRQWKH1RUWKHUQ&RXULHU3LSHOLQHWRWKH (DVW7DQN)DUP (7) LQ$OEHUWD7KH(7)RZQHGE\WKH7KHEDFKD/LPLWHG3DUWQHUVKLSDQGRSHUDWHGE\ DQDIILOLDWHRI6XQFRUEOHQGVELWXPHQZLWKGLOXHQWWRPHHWSLSHOLQHYLVFRVLW\VSHFLILFDWLRQV7KHGLOXHQWLV VRXUFHGE\7HFNDW(GPRQWRQDQGGHOLYHUHGWRWKH(7)RQWKH1RUOLWH3LSHOLQH 2XUSURSULHWDU\EOHQGHGELWXPHQLVWUDQVSRUWHGIURPWKH(7)RQWKH:RRG%XIIDOR3LSHOLQHWR+DUGLVW\ $OEHUWDZKHUHLWLVPDUNHWHGDV)RUW+LOOV5HGXFHG&DUERQ/LIH&\FOH'LOELW%OHQGRU)5%7HFN¶V)5% EOHQGLVSURFHVVHGLQWRILQLVKHGSURGXFWVDWUHILQHULHVWKURXJKRXW1RUWK$PHULFD 7HFN¶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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

&DQDGLDQSURGXFWLRQZDVEURXJKWEDFNRQOLQHLQWKHVHFRQGKDOIZLWKSLSHOLQHVILOOLQJXSSURPSWLQJD VXEVWDQWLYHUHWXUQRIH[FHVVYROXPHVEHLQJVKLSSHGWRPDUNHWE\UDLO*RYHUQPHQWRI$OEHUWDSURGXFWLRQ UHVWULFWLRQVLQSODFHVLQFH-DQXDU\ZHUHDOVRUHOD[HGLQWKHIRXUWKTXDUWHULQFUHDVLQJWKHDPRXQWRI DYDLODEOHFUXGHVXSSO\$VVXPLQJWKDWWKH(QEULGJH/LQHDQG7UDQV0RXQWDLQ([SDQVLRQ 70; SLSHOLQH H[SDQVLRQVQRZXQGHUFRQVWUXFWLRQDUHFRPSOHWHGFDSDFLW\VKRUWIDOOVDUHH[SHFWHGWREHHOLPLQDWHGE\ WKHHQGRI

,QGLYLGXDO2SHUDWLRQV

&233(5

Copper Operations

+LJKODQG9DOOH\&RSSHU0LQH&DQDGD &RSSHU  :HKROGDLQWHUHVWLQWKH+LJKODQG9DOOH\&RSSHUPLQHORFDWHGQHDU.DPORRSV%ULWLVK &ROXPELDWKURXJKRXUZKROO\RZQHGVXEVLGLDU\7HFN+LJKODQG9DOOH\&RSSHU3DUWQHUVKLS +9&  +LJKODQG9DOOH\¶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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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¶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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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

&RPSRQHQW $SSUR[LPDWHSURMHFWHGFRVW PLOOLRQ

6XVWDLQLQJ 

*URZWK 

&DSLWDOL]HGVWULSSLQJ 

7RWDO 

SURMHFWHGDJJUHJDWHFDVKRSHUDWLQJFRVWVIRU+LJKODQG9DOOH\DUHDSSUR[LPDWHO\PLOOLRQ 7KHPDMRUFRPSRQHQWVRIWKHSURMHFWHGFDVKRSHUDWLQJFRVWVDUH

&RPSRQHQW $SSUR[LPDWHSURMHFWHGFRVW PLOOLRQ

/DERXU 

6XSSOLHV 

(QHUJ\ 

2WKHU LQFOXGLQJJHQHUDO DGPLQLVWUDWLYHLQYHQWRU\  FKDQJHV  

/HVVDPRXQWVDVVRFLDWHGZLWKSURMHFWHGFDSLWDOL]HG  VWULSSLQJ  

7RWDO 

7KHFDVKRSHUDWLQJFRVWVSUHVHQWHGDERYHGRQRWLQFOXGHWUDQVSRUWDWLRQRUUR\DOWLHV

$QWDPLQD0LQH3HUX &RSSHU=LQF  :HLQGLUHFWO\RZQRIWKH$QWDPLQDFRSSHU]LQFPLQHLQ3HUXZLWKWKHEDODQFHKHOGLQGLUHFWO\ E\%+3%LOOLWRQSOF  *OHQFRUHSOF  DQG0LWVXELVKL&RUSRUDWLRQ  7KH SDUWLFLSDQWV¶LQWHUHVWVDUHUHSUHVHQWHGE\VKDUHVRI&RPSDxtD0LQHUD$QWDPLQD6$ &0$ WKH 3HUXYLDQFRPSDQ\WKDWRZQVDQGRSHUDWHVWKHSURMHFW2XULQWHUHVWLVVXEMHFWWRDQHWSURILWVUR\DOW\ RIRQ&0$¶VIUHHFDVKIORZ 7KH$QWDPLQDSURSHUW\FRQVLVWVRIQXPHURXVPLQLQJFRQFHVVLRQVDQGPLQLQJFODLPVFRYHULQJDQ DUHDRIDSSUR[LPDWHO\KHFWDUHVDQGDQDUHDRIDSSUR[LPDWHO\KHFWDUHVRIVXUIDFH ULJKWV7KHVHULJKWVFRQFHVVLRQVDQGFODLPVFDQEHKHOGLQGHILQLWHO\FRQWLQJHQWXSRQWKHSD\PHQWRI DQQXDOOLFHQFHIHHVDQGSURYLVLRQRIFHUWDLQSURGXFWLRQDQGLQYHVWPHQWLQIRUPDWLRQ&0$DOVRRZQV DSRUWIDFLOLW\ORFDWHGDW+XDUPH\DQGDQHOHFWULFDOVXEVWDWLRQORFDWHGDW+XDOODQFD,QDGGLWLRQ&0$

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

KROGVWLWOHWRDOOHDVHPHQWVDQGULJKWVRIZD\IRUWKHNLORPHWUHFRQFHQWUDWHSLSHOLQHIURPWKH PLQHWR&0$¶VSRUWDW+XDUPH\ 7KHGHSRVLWLVORFDWHGDWDQDYHUDJHHOHYDWLRQRIPHWUHVNLORPHWUHVE\URDGDQG NLORPHWUHVE\DLUQRUWKRI/LPD3HUX$QWDPLQDOLHVRQWKHHDVWHUQVLGHRIWKH:HVWHUQ &RUGLOOHUDLQWKHXSSHUSDUWRIWKH5LR0DUDx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¶VFRSSHUSURGXFWLRQLQZDVWRQQHVFRPSDUHGWR WRQQHVLQSULPDULO\GXHWRWKHWHPSRUDU\VKXWGRZQ=LQFSURGXFWLRQZDVWRQQHVLQ DQLQFUHDVHIURPWRQQHVRISURGXFWLRQLQSULPDULO\GXHWRKLJKHU]LQFJUDGHV DQGDKLJKHUSURSRUWLRQRIFRSSHU]LQFRUHSURFHVVHGDVH[SHFWHGLQWKHPLQHSODQ,Q PRO\EGHQXPSURGXFWLRQZDVPLOOLRQSRXQGVZKLFKZDVVLPLODUWR 2XUVKDUHRISURGXFWLRQDW$QWDPLQDLVH[SHFWHGWREHLQWKHUDQJHRIWR WRQQHVRIFRSSHUWRWRQQHVRI]LQFDQGWRPLOOLRQSRXQGVRIPRO\EGHQXP

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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xtD0LQHUD$QWDPLQD6$ ZKLFKRZQVDQGRSHUDWHV$QWDPLQDLVQRWDSDUW\WRWKHDJUHHPHQWDQGRSHUDWLRQVZLOOQRWEH DIIHFWHGE\LW ,Q3HUXWKHPLQLQJWD[UHJLPHLQFOXGHVWKH6SHFLDO0LQLQJ7D[DQGWKH0RGLILHG0LQLQJ5R\DOW\ ZKLFKDSSO\WR&0$¶VRSHUDWLQJPDUJLQEDVHGRQDSURJUHVVLYHVOLGLQJVFDOHUDQJLQJIURPWR &0$LVDOVRVXEMHFWWR3HUXYLDQLQFRPHWD[ %DVHGRQFXUUHQWGHVLJQHGWDLOLQJVVWRUDJHFDSDFLW\WKHPLQHOLIHLVH[SHFWHGWRFRQWLQXHXQWLO &0$LVFXUUHQWO\FRQGXFWLQJHQJLQHHULQJVWXGLHVIRUDGGLWLRQDOWDLOLQJVVWRUDJHRSWLRQVDQG DOWHUQDWLYHPLQHSODQVWKDWFRXOGUHVXOWLQVLJQLILFDQWPLQHOLIHH[WHQVLRQV$Q\PLQHOLIHH[WHQVLRQ ZLOOUHTXLUHDPRGLILFDWLRQRI$QWDPLQD¶VFXUUHQW(QYLURQPHQWDO,PSDFW$VVHVVPHQWFHUWLILFDWHD SURFHVVWKDWEHJDQLQ2FWREHUZLWKWKHVXEPLVVLRQRIWKHVWXG\DUHDDQGFRPPRQWHUPVRI UHIHUHQFHWR3HUXYLDQUHJXODWRUVIRUDPLQHOLIHH[WHQVLRQWR$GHFLVLRQLQUHVSHFWRIWKH UHTXHVWHGPRGLILFDWLRQLVH[SHFWHGLQ 2XUVKDUHRISURMHFWHGFDSLWDOFRVWVIRU$QWDPLQDLVDSSUR[LPDWHO\86PLOOLRQ7KH PDMRUFRPSRQHQWVRIWKHSURMHFWHGFDSLWDOFRVWVDUH

&RPSRQHQW $SSUR[LPDWHSURMHFWHGFRVW 86PLOOLRQ

6XVWDLQLQJ 

*URZWK 

&DSLWDOL]HGVWULSSLQJ 

7RWDO  

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

2XUVKDUHRISURMHFWHGFDVKRSHUDWLQJFRVWVIRU$QWDPLQDLVDSSUR[LPDWHO\86 PLOOLRQ7KHPDMRUFRPSRQHQWVRIWKHSURMHFWHGFDVKRSHUDWLQJFRVWVDUH

&RPSRQHQW $SSUR[LPDWHSURMHFWHGFRVW 86PLOOLRQ

/DERXU 

6XSSOLHV 

(QHUJ\ 

2WKHU LQFOXGLQJJHQHUDO DGPLQLVWUDWLYHLQYHQWRU\  FKDQJHV 

/HVVDPRXQWVDVVRFLDWHGZLWKSURMHFWHGFDSLWDOL]HG   VWULSSLQJ

7RWDO 

7KHFDVKRSHUDWLQJFRVWVSUHVHQWHGDERYHGRQRWLQFOXGHWUDQVSRUWDWLRQRUUR\DOWLHV

4XHEUDGD%ODQFD0LQH&KLOH &RSSHU  7KH4XHEUDGD%ODQFDPLQHLVRZQHGE\D&KLOHDQSULYDWHFRPSDQ\&RPSDxtD0LQHUD7HFN 4XHEUDGD%ODQFD6$ 4%6$ 7HFNKROGVDQLQGLUHFWLQWHUHVWLQ4%6$ RIWKH6HULHV $VKDUHV 6006&FROOHFWLYHO\KROGDQLQGLUHFWLQWHUHVWLQ4%6$ RIWKH6HULHV$ VKDUHV DQG(PSUHVD1DFLRQDOGH0LQHUt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i5HJLRQRIQRUWKHUQ&KLOHDSSUR[LPDWHO\ NLORPHWUHVVRXWKHDVWRIWKHSRUWFLW\RI,TXLTXHDQGNLORPHWUHVQRUWKRIWKHFLW\RI6DQWLDJR WKHFDSLWDORI&KLOH7KH4XHEUDGD%ODQFDSURSHUW\LVORFDWHGDSSUR[LPDWHO\PHWUHVDERYHVHD OHYHO7KHORFDOWRSRJUDSK\LVUHSUHVHQWHGE\URXQGHGKLOOVGLVUXSWHGE\VWHHSJXOFKHV9HJHWDWLRQ FRYHUFRQVLVWVRIVSDUVHWXIWVRIJUDVVDQGVPDOOVKUXEV$FFHVVWRWKHPLQHVLWHLVYLDURDGIURP ,TXLTXH0LQHSHUVRQQHODUHEDVHGLQDFDPSIDFLOLW\DQGWKHPDMRULW\FRPPXWHIURPODUJH SRSXODWLRQFHQWUHVLQFOXGLQJ,TXLTXHDQG6DQWLDJR 3UHYLRXVO\PLQHGIRULWVVXSHUJHQHPLQHUDOL]DWLRQWKH4XHEUDGD%ODQFD&X0RVXOSKLGHGHSRVLWLV FKDUDFWHUL]HGE\DVHULHVRI(RFHQH2OLJRFHQHDJHGLQWUXVLRQVK\GURWKHUPDOEUHFFLDVDQGYHLQ UHODWHGPLQHUDOL]DWLRQRYHUDQDUHDRIDSSUR[LPDWHO\NLORPHWUHVE\NLORPHWUHVDQGFRQWUROOHG SULPDULO\E\QRUWKHDVWRULHQWHGVWUXFWXUHV$OWHUDWLRQDVVRFLDWHGZLWKWKHHPSODFHPHQWRIWKH SRUSK\ULWLFDQGUHODWHGLQWUXVLRQVLQFOXGHVFKDOFRS\ULWHDQGERUQLWHUHODWHGYHLQVGLVVHPLQDWLRQV DQGFHPHQWILOODVVRFLDWHGZLWKSRWDVVLFDOWHUDWLRQ$ODUJHYHUWLFDOO\]RQHGK\GURWKHUPDOEUHFFLD GHYHORSHGLQDVVRFLDWLRQZLWKWKHSRWDVVLFHYHQW7KLVEUHFFLDKDVELRWLWHELRWLWHPDJQHWLWH FKDOFRS\ULWHDQGORFDOO\ERUQLWHSUHVHUYHGDWGHSWKZKLOVWDWVKDOORZHUOHYHOVLWWUDQVLWLRQVWRD WRXUPDOLQHULFKEUHFFLDZLWKS\ULWHDQGFKDOFRS\ULWH$VHULHVRITXDUW]PRO\EGHQLWHYHLQVDUH FRPPRQO\DVVRFLDWHGZLWKWKHELRWLWHPDJQHWLWHEUHFFLDRQWKHHDVWVLGHRIWKHGHSRVLW$

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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uebrada Blanca Operations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uebrada Blanca Phase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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

RYHUKHDGKLJKYROWDJHHOHFWULFSRZHUWUDQVPLVVLRQOLQH7KHSULPDU\FUXVKLQJIDFLOLW\ZLOOFRQWDLQD VLQJOHSULPDU\FUXVKHUZLWKDGRXEOHVLGHGGXPSSRFNHWIRUGXPSLQJRUHIURPWKHPLQHKDXODJH WUXFNV7KHFRDUVHRUHFRQYH\RUIDFLOLW\ZLOOFRQVLVWRIDQRYHUODQGFRQYH\RUWRWUDQVSRUWWKHFUXVKHG RUHIURPWKHSULPDU\FUXVKHUWRWKHFRDUVHRUHVWRFNSLOH7KHFRDUVHRUHVWRFNSLOHZLOOKDYHDOLYH FDSDFLW\RIWRQQHVDQGDQRYHUDOOWRQQHFDSDFLW\7KHFRQFHQWUDWRUIDFLOLW\ZLOO FRQWDLQWZRVHPLDXWRJHQRXVJULQGLQJPLOOVIRXUEDOOPLOOVF\FORQHIHHGSXPSVDQGF\FORQHFOXVWHUV 7KHSURMHFWZDVDSSURYHGIRUIXOOFRQVWUXFWLRQLQ'HFHPEHU,QWKHIRXUWKTXDUWHURIZH FORVHGWKH86ELOOLRQOLPLWHGUHFRXUVHSURMHFWILQDQFLQJWRIXQGWKHGHYHORSPHQWRI4%7KH SURMHFWILQDQFHDUUDQJHPHQWVLQFOXGHFXVWRPDU\UHVWULFWLRQVRQWKHSD\PHQWRIGLYLGHQGVDQGRWKHU GLVWULEXWLRQVIURP4%6$XQWLOSURMHFWFRPSOHWLRQKDVEHHQDFKLHYHGVXFKGLVWULEXWLRQVDUHDOVR VXEMHFWWRFRPSOLDQFHZLWKFHUWDLQRWKHUFRQGLWLRQV 2Q0DUFKZHWHPSRUDULO\VXVSHQGHGFRQVWUXFWLRQDFWLYLWLHVDWWKHSURMHFWWRSURWHFWWKH KHDOWKDQGVDIHW\RIRXUHPSOR\HHVDQGWRVXSSRUW&KLOHDQHIIRUWVWROLPLWWUDQVPLVVLRQRI&29,' 7KHSURMHFWKDVVXEVHTXHQWO\UDPSHGXSLQVWDJHVWRSUH&29,'OHYHOVLQDFFRUGDQFHZLWKSODQ DQGZLOOFRQWLQXHWRUDPSXSIXUWKHUDVFRQGLWLRQVSHUPLWZLWKSHDNFRQVWUXFWLRQZRUNIRUFHOHYHOV H[SHFWHGLQWKHVHFRQGTXDUWHURI7KHRYHUDOOSURMHFWSURJUHVVWKURXJKWKHHQGRI'HFHPEHU PHWRXU\HDUHQGWDUJHWRIRYHUDOOFRPSOHWLRQ6LJQLILFDQWIRFXVUHPDLQVRQPDQDJLQJ &29,'DQGWKHH[WHQVLYHSURWRFROVLQSODFHWRSURWHFWWKHKHDOWKDQGVDIHW\RIRXUHPSOR\HHV 2Q0DUFKZHDQQRXQFHGDQXSGDWHGFDSLWDOFRVWHVWLPDWHIRUWKHSURMHFWRI86ELOOLRQ LQFOXGLQJHVFDODWLRQDQGWKHJRIRUZDUGVSHQGIURP$SULOZDVHVWLPDWHGDW86ELOOLRQ DVVXPLQJD&/386UDWHRIRYHUWKHUHPDLQGHURIWKHSURMHFW7KHHVWLPDWHZDVEDVHGRQD VFKHGXOHWKDWFRQWHPSODWHGILUVWSURGXFWLRQLQWKHVHFRQGTXDUWHURIDQGLQFOXGHGD FRQWLQJHQF\RIDSSUR[LPDWHO\86PLOOLRQ7KLVXSGDWHGHVWLPDWHDQGVFKHGXOHGLGQRWUHIOHFWWKH LPSDFWRI&29,'RQWKHSURMHFWRXWOLQHGEHORZLQFOXGLQJWKHWHPSRUDU\VXVSHQVLRQRISURMHFW FRQVWUXFWLRQDFWLYLWLHVGXHWRWKHSDQGHPLF 7KHWHPSRUDU\VXVSHQVLRQGXHWR&29,'LQPLG0DUFKDQGLPSDFWVUHODWHGWRPDQDJLQJUDPSXS DQGFRQVWUXFWLRQZLWKLQWKHFXUUHQW&29,'HQYLURQPHQWKDVUHVXOWHGLQFKDQJHVWRERWKSURMHFW FDSLWDOFRVWVDQGVFKHGXOH:HKDYHXSGDWHGRXUHVWLPDWHRIWKHRYHUDOO&29,'UHODWHGFRVWV EDVHGRQWKHLPSDFWVWRFRQVWUXFWLRQVHHQWRGDWHXQGHUWKHH[LVWLQJ&29,'PDQDJHPHQW SURWRFROV+RZHYHUDGGLWLRQDOFRVWULVNUHPDLQVVKRXOGWKHSDQGHPLFZRUVHQRUFRQWLQXHIRUD SURWUDFWHGSHULRGRIWLPH 7KHLPSDFWRIWKHFRQVWUXFWLRQVXVSHQVLRQLQFOXGLQJHVWLPDWHGUDPSXSFRVWVDQGHVWLPDWHGFRVWV DVVRFLDWHGZLWKRQJRLQJFRPSOLDQFHZLWKKHDOWKDQGVDIHW\SURWRFROVLQWKHFRQWH[WRI&29,'DV ZHOODVDGGLWLRQDOFDPSVSDFHWKDWZRXOGQRWKDYHEHHQUHTXLUHGDEVHQW&29,'DUHDQWLFLSDWHG WREHDSSUR[LPDWHO\86WR86PLOOLRQRIZKLFK86PLOOLRQKDVEHHQH[SHQVHG7KLVLV DQLQFUHDVHRI86PLOOLRQRYHUSUHYLRXVJXLGDQFH7KLVGRHVQRWLQFOXGHLQWHUHVWWKDWZRXOGKDYH RWKHUZLVHEHHQFDSLWDOL]HGLIWKHSURMHFWZHUHQRWVXVSHQGHG 7KHHVWLPDWHGFDSLWDOFRVWRI4%H[FOXGLQJFRVWVDVVRFLDWHGZLWK&29,'UHPDLQV86ELOOLRQ DVDQQRXQFHGRQ0DUFKLQFOXGLQJHVFDODWLRQDQGEDVHGRQD&/386'H[FKDQJHUDWHRI IURP$SULO7KHDYHUDJHUHDOL]HGH[FKDQJHUDWHZDVDSSUR[LPDWHO\IURP$SULO WR'HFHPEHU7KHJRIRUZDUGFDSLWDOFRVWIURP-DQXDU\LVHVWLPDWHGDW 86ELOOLRQDVVXPLQJD&/386'UDWHRIRYHUWKHUHPDLQGHURIWKHSURMHFW$&/3FKDQJH LQWKH&/386'H[FKDQJHUDWHZRXOGFKDQJHWKHFDSLWDOFRVWE\DSSUR[LPDWHO\86PLOOLRQ )LUVWSURGXFWLRQLVH[SHFWHGLQWKHVHFRQGKDOIRILQOLQHZLWKSUHYLRXVJXLGDQFHUHIOHFWLQJWKH HVWLPDWHRIVFKHGXOHGHOD\UHODWHGWR&29,'LQFOXGLQJGHPRELOL]DWLRQVXVSHQVLRQDQGUHVWDUW

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

LPSDFWV2QDEDVLVDYHUDJHDQQXDOSURGXFWLRQFDSDFLW\LVH[SHFWHGWREHWRQQHVRI FRSSHUHTXLYDOHQWSHU\HDUIRUWKHILUVWIXOOILYH\HDUVRIPLQHOLIH 4%6$KDVVLJQHGDQXPEHURISRZHUSXUFKDVHDJUHHPHQWVIRUHOHFWULFSRZHUVXSSO\IRU4%7KHUH DUHWKUHHSULPDU\SRZHUSXUFKDVHDJUHHPHQWVIRU4%(DFKRIWKHVHDJUHHPHQWVLPSRVHVDWDNH RUSD\REOLJDWLRQRQ4%6$XQGHUZKLFK4%6$LVUHTXLUHGWRSD\IRUWKHFRQWUDFWHGSRZHU UHJDUGOHVVRIZKHWKHULWLVUHTXLUHGLQWKHRSHUDWLRQV6XSSO\IURPWKHILUVWFRQWUDFWFRPPHQFHGLQ WKHIRXUWKTXDUWHURIDQGWKHRWKHUVXSSO\GDWHVFRPPHQFHGLQHDUO\4%6$¶VREOLJDWLRQV XQGHUWKHSRZHUSXUFKDVHDJUHHPHQWVDUHJXDUDQWHHGE\7HFNXQWLO4%HQWHUVSURGXFWLRQ 7KHDJJUHJDWHIL[HGFRPPLWPHQWRIWKHFXUUHQWWKUHHSULPDU\SRZHUVXSSO\DJUHHPHQWVLV DSSUR[LPDWHO\86PLOOLRQSHUPRQWKGHWHUPLQHGDVRI'HFHPEHU4%6$LVWDNLQJ VWHSVWRPDQDJHLWVH[SRVXUHDQGPD\VHOOSRZHUDWVSRWPDUNHWUDWHVWRRIIVHWLWVH[SRVXUHXQGHU WKHVHWDNHRUSD\FRQWUDFWVXQWLOSRZHULVUHTXLUHGIRUWKH4%SURMHFW%DVHGRQFXUUHQWVSRWPDUNHW UDWHVFXUUHQWPLWLJDWLRQHIIRUWVDQG4%6$¶VSURMHFWHGSRZHUFRQVXPSWLRQLWVQHWHVWLPDWHG DJJUHJDWHPRQWKO\H[SRVXUHXQGHULWVSRZHUDUUDQJHPHQWVLVDQWLFLSDWHGWREHLQWKHUDQJHRI 86WR86PLOOLRQLQ7HFNKDVDJUHHGWRFRYHU6006&¶VVKDUHRIWKHFRVWRISRZHU XQGHUWKHVHH[LVWLQJSRZHUSXUFKDVHDJUHHPHQWVLQH[FHVVRI4%6$¶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³Mineral Reserves and Resources´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

4%KDVD\HDUPLQHOLIHDQGWKH6DQFWLRQ&DVH GHVFULEHGEHORZ LQFOXGHVPLOOLRQWRQQHVRI LQIHUUHGUHVRXUFHVZLWKLQWKHOLIHRIPLQHSODQ7KHPDMRULW\RIWKLVLQIHUUHGPDWHULDOLVQRWVFKHGXOHG WREHPLQHGXQWLOODWHLQWKHPLQHOLIHDQGLVGLVSODFLQJORZHUJUDGHHFRQRPLFPDWHULDOZLWKLQWKHSLW 7HFNUHIHUVWRWKHSODQQHGGHYHORSPHQWRIWKH4%SURMHFWWKDWLQFOXGHVWKHVHLQIHUUHGUHVRXUFHVDV WKH6DQFWLRQ&DVH´ZKLFKIRUPHGWKHEDVLVRI7HFN¶VDSSURYDORIWKHSURMHFWIRUIXOOFRQVWUXFWLRQLQ ODWH,QIHUUHGUHVRXUFHVDUHFRQVLGHUHGWRRVSHFXODWLYHJHRORJLFDOO\WRKDYHWKHHFRQRPLF FRQVLGHUDWLRQVDSSOLHGWRWKHPWKDWZRXOGHQDEOHWKHPWREHFDWHJRUL]HGDVPLQHUDOUHVHUYH,QIHUUHG UHVRXUFHVDUHVXEMHFWWRJUHDWHUXQFHUWDLQW\WKDQPHDVXUHGRULQGLFDWHGUHVRXUFHVDQGLWFDQQRWEH DVVXPHGWKDWWKH\ZLOOEHVXFFHVVIXOO\XSJUDGHGWRPHDVXUHGDQGLQGLFDWHGWKURXJKIXUWKHUGULOOLQJ %DVHGRQ7HFN¶VXQGHUVWDQGLQJRIWKHGHSRVLWDQGKLVWRU\RIUHVRXUFHWRUHVHUYHFRQYHUVLRQWKH

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

6DQFWLRQ&DVHLVUHJDUGHGDVDUHDOLVWLFDQGILQDQFHDEOHGHYHORSPHQWSODQKRZHYHUNH\ LQIRUPDWLRQUHJDUGLQJWKHUHVHUYHRQO\FDVHLVLQFOXGHGLQWKHWDEOHEHORZIRUUHIHUHQFH

7KHWDEOHEHORZFRPSDUHVFHUWDLQSURMHFWLRQVRIWKHSODQQHGRSHUDWLRQRI4%IRUERWKWKH5HVHUYH &DVHDQGWKH6DQFWLRQ&DVHWKDWZHUHWKHEDVLVIRUWKHGHFLVLRQWRSURFHHGWRIXOOFRQVWUXFWLRQRIWKH SURMHFWEDVHGRQWKHFDSLWDOFRVWSURMHFWLRQDVDWWKHWLPHRIWKHGHFLVLRQWRSURFHHGWRIXOO FRQVWUXFWLRQLQDQGRWKHUHFRQRPLFDVVXPSWLRQVIURPWKDWWLPHRUDVQRWHGLQWKHWDEOHEHORZ

3URMHFW%DVLV    8QLWV 5HVHUYH&DVH 6DQFWLRQFDVH

,55   

139 860  

$YHUDJH$QQXDO&DVK)ORZ±VW 860   )LYH

$YHUDJH$QQXDO&DVK)ORZ± 860   $IWHUVW)LYH

3D\EDFN3HULRG \HDUV  

&RSSHU(TXLYDOHQW3URGXFWLRQ   WRQQHV     $VVXPHV86SHUSRXQGRIFRSSHU86SHUSRXQGRIPRO\EGHQXPDQG86SHURXQFHRIVLOYHU   $VDW-DQXDU\RQDQXQOHYHUHGDIWHUWD[EDVLVIRUD&KLOHDQGRPLFLOHGHQWLW\DVVXPLQJDQRSWLPL]HGIXQGLQJ VWUXFWXUH   ([FOXGHVWKHILUVWSDUWLDO\HDURIRSHUDWLRQ   ([FOXGHVWKHODVWSDUWLDO\HDURIRSHUDWLRQ   &RSSHUHTXLYDOHQWSURGXFWLRQFDOFXODWHGDVVXPLQJ86OEFRSSHU86OEPRO\EGHQXPDQG86R]VLOYHU ZLWKRXWDGMXVWLQJIRUSD\DELOLW\  'HYHORSPHQWVIROORZLQJWKHGHFLVLRQWRSURFHHGLQFOXGLQJEXWQRWOLPLWHGWRXSGDWHGFDSLWDOFRVW SURMHFWLRQVWKHLPSDFWRI&29,'DQGFKDQJHVLQFXUUHQF\UDWHVDUHQRWUHIOHFWHGLQWKHWDEOH DERYH Quebrada Blanca Phase 3 'ULOOLQJDQGHQJLQHHULQJVWXGLHVIRUWKH4XHEUDGD%ODQFD3KDVHSURMHFWSURJUHVVHGLQ$ OLPLWHGDPRXQWRIZRUNFRQWLQXHVRQWDUJHWHGWUDGHRIIVWXGLHVLQSUHSDUDWLRQIRUWKHVWDUWRIWKH SUHIHDVLELOLW\VWXG\

&DUPHQGH$QGDFROOR0LQH&KLOH &RSSHU  7KH&DUPHQGH$QGDFROORSURSHUW\LVRZQHGE\D&KLOHDQSULYDWHFRPSDQ\&RPSDxtD0LQHUD7HFN &DUPHQGH$QGDFROOR &'$ :HRZQRIWKH6HULHV$VKDUHVRI&'$ZKLOH(1$0,RZQV RIWKH6HULHV%VKDUHVRI&'$2XU6HULHV$VKDUHVRI&'$HTXDWHWRRI&'$¶VWRWDO VKDUHHTXLW\DQG(1$0,¶V6HULHV%VKDUHVFRPSULVHWKHUHPDLQLQJRIWRWDOVKDUHHTXLW\ (1$0,¶VLQWHUHVWLVDFDUULHGLQWHUHVWDQGDVDUHVXOW(1$0,LVQRWUHTXLUHGWRFRQWULEXWHIXUWKHU IXQGLQJWR&'$ &'$RZQVWKHH[SORLWDWLRQDQGRUH[SORUDWLRQULJKWVRYHUDQDUHDRIDSSUR[LPDWHO\VTXDUH NLORPHWUHVLQWKHDUHDRIWKH&DUPHQGH$QGDFROORVXSHUJHQHDQGK\SRJHQHGHSRVLWVSXUVXDQWWR YDULRXVPLQLQJFRQFHVVLRQVDQGRWKHUULJKWV,QDGGLWLRQ&'$RZQVWKHVXUIDFHULJKWVFRYHULQJWKH PLQHVLWHDQGRWKHUDUHDVDJJUHJDWLQJDSSUR[LPDWHO\VTXDUHNLORPHWUHVDVZHOODVFHUWDLQZDWHU ULJKWV6LQFH&'$KDVEHHQFRQGXFWLQJPLQLQJRSHUDWLRQVRQWKHVXSHUJHQHGHSRVLWRQWKH

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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¶VSURGXFWLRQLQLVH[SHFWHGWREHLQWKHUDQJHRIWRWRQQHV RIFRSSHULQFOXGLQJDSSUR[LPDWHO\WRQQHVRIFRSSHUFDWKRGH3URGXFWLRQLQLVH[SHFWHG WREHORZHUWKDQGXHWRORZHUFRSSHUJUDGHV$QQXDOFRSSHULQFRQFHQWUDWHSURGXFWLRQLV H[SHFWHGWREHEHWZHHQDQGWRQQHVIRUWR

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

7KHFXUUHQWOLIHRIPLQHIRU&DUPHQGH$QGDFROORLVH[SHFWHGWRFRQWLQXHXQWLO$GGLWLRQDO SHUPLWWLQJRUDPHQGPHQWVZLOOEHUHTXLUHGWRH[HFXWHWKHOLIHRIPLQHSODQ 7D[HVSD\DEOHLQ&KLOHWKDWDIIHFWWKHRSHUDWLRQLQFOXGHWKH&KLOHDQ6SHFLILF0LQLQJ7D[ZKLFK DSSOLHVWRRSHUDWLQJPDUJLQEDVHGRQDSURJUHVVLYHVOLGLQJVFDOHIURPWR&'$LVDOVR VXEMHFWWRIHGHUDOLQFRPHWD[LQ&KLOH ,Q$XJXVW&'$HQWHUHGLQWRDORQJWHUPSRZHUSXUFKDVHDJUHHPHQWWRSURYLGH UHQHZDEOHSRZHUIRU&DUPHQGH$QGDFROOR2SHUDWLRQV

Project Satellite 7HFNDQGRXUSDUWQHUVFRQWLQXHWRDGYDQFHILYHVXEVWDQWLDOEDVHPHWDOVDVVHWV FRSSHU]LQFQLFNHO  DOORIZKLFKDUHORFDWHGLQWKH$PHULFDV=DIUDQDO6DQ1LFROiV*DORUH&UHHN0HVDEDDQG6FKDIW &UHHN

=DIUDQDO3HUX 7KH=DIUDQDOSURSHUW\ORFDWHGLQVRXWKHUQ3HUXNLORPHWUHVQRUWKZHVWRI$UHTXLSDZLWKLQWKH 3URYLQFHVRI&DVWLOODDQG&D\OORPDLVDPLGVL]HGFRSSHUJROGSRUSK\U\GHSRVLW7KHSURMHFWLVKHOG E\&RPSDxtD0LQHUD=DIUDQDO6$&LQZKLFK7HFNKROGVDQLQWHUHVWZLWK0LWVXELVKL0DWHULDOV &RUSRUDWLRQKROGLQJWKHRWKHU ,QLQUHVSRQVHWRJOREDODQG3HUXVSHFLILF&29,'UHVWULFWLRQVZRUNIRFXVHGRQILQDOL]LQJDOO RIWKHUHTXLUHPHQWVWRVXEPLWWKHVRFLDODQGHQYLURQPHQWDOLPSDFWDVVHVVPHQWGRFXPHQW7KLV LQFOXGHGDJUHHLQJZLWKWKH3HUXYLDQ3HUPLWWLQJ$XWKRULW\ 6(1$&( RQSURWRFROVIRUDVHULHVRI YLUWXDOSXEOLFSDUWLFLSDWLRQZRUNVKRSVWKDWZHUHKHOGZLWKVHYHUDOFRPPXQLWLHVRILQWHUHVWLQ-XO\DQG $XJXVW,QDGGLWLRQYLUWXDOVLWHYLVLWVZHUHGHYHORSHGDQGSURYLGHGWRDZLGHUDQJHRI FRPPXQLWLHVRILQWHUHVWDQGUHJXODWRUV:HFRPSOHWHGFRPPXQLW\LQYHVWPHQWFRPPLWPHQWVPDGHLQ DQGPRGLILHGRXUFRPPXQLW\LQYHVWPHQWSODQVWRUHVSRQGWRQHHGVVSHFLILFWRWKHLPSDFWV RI&29,' 7HFN¶VVKDUHRIVSHQGLQJLQZDVPLOOLRQDQG7HFN¶VVKDUHRISODQQHGVSHQGLQJLQLV PLOOLRQZKLFKZLOOEHLQFOXGHGLQJURZWKFDSLWDOH[SHQGLWXUHVZLWKLQRXUFRSSHUEXVLQHVVXQLW

6DQ1LFROiV0H[LFR 7KH6DQ1LFROiVSURSHUW\ORFDWHGLQ=DFDWHFDV6WDWHLVDFRSSHU]LQFPDVVLYHVXOSKLGHGHSRVLW ZLWKVLJQLILFDQWJROGDQGVLOYHU7KHSURSHUW\LVKHOGE\0LQDVGH6DQ1LFROi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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

VXSSOHPHQWHGZLWKDUDQJHRIYLUWXDODQGSK\VLFDOO\GLVWDQFHGHQJDJHPHQWDFWLYLWLHVDQGWDUJHWHG &29,'VXSSRUWSURJUDPV 6SHQGLQJLQZDVPLOOLRQDQGSODQQHGVSHQGLQJLQLVPLOOLRQZKLFKZLOOEH LQFOXGHGLQJURZWKFDSLWDOH[SHQGLWXUHVZLWKLQRXUFRSSHUEXVLQHVVXQLW

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¶VVKDUHRIFDSLWDOH[SHQGLWXUHVLQZDVPLOOLRQDQG7HFN¶VVKDUHRISODQQHGFDSLWDO H[SHQGLWXUHVLQLVPLOOLRQZKLFKZLOOEHLQFOXGHGLQJURZWKFDSLWDOH[SHQGLWXUHVZLWKLQRXU FRSSHUEXVLQHVVXQLW

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

6FKDIW&UHHN&DQDGD 7KH6FKDIW&UHHNSURSHUW\ORFDWHGLQ7DKOWDQWHUULWRU\LQQRUWKZHVWHUQ%ULWLVK&ROXPELD DSSUR[LPDWHO\NLORPHWUHVVRXWKRI7HOHJUDSK&UHHNDQGNLORPHWUHVQRUWKHDVWRIWKH*DORUH &UHHNSURSHUW\LVDMRLQWYHQWXUHEHWZHHQ7HFNDQG&RSSHU)R[0HWDOV,QFZLWK7HFNKROGLQJD LQWHUHVWDQGDFWLQJDVWKHRSHUDWRU

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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

Other Projects

1XHYD8QLyQ&KLOH 1XHYD8QLyQLVDSDUWQHUVKLSEHWZHHQ7HFNDQG1HZPRQWFRQVLVWLQJRIWKHFRSSHUJROG/D )RUWXQDGHSRVLWDQGWKHFRSSHUPRO\EGHQXP5HOLQFKRGHSRVLWDQGORFDWHGDSSUR[LPDWHO\ NLORPHWUHVDSDUWLQWKH+XDVFR3URYLQFHLQWKH$WDFDPDUHJLRQRI&KLOH/LPLWHGZRUNIRFXVHGRQD UHYLHZRIIHDVLELOLW\VWXG\UHVXOWVDQGDQDVVHVVPHQWRIRSWLPL]DWLRQRSSRUWXQLWLHVSURJUHVVHGDW 1XHYD8QLyQLQZLWKRSSRUWXQLW\DVVHVVPHQWVFRQWLQXLQJLQ

=,1&

Mining Operations

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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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ative Claims Settlement Act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¶VVDOHVDUHVHDVRQDOZLWKWKHPDMRULW\RI VDOHVLQWKHODVWILYHPRQWKVRIHDFK\HDU&RQFHQWUDWHLVVWRFNSLOHGDWWKHSRUWIDFLOLW\DQGLVW\SLFDOO\ VKLSSHGEHWZHHQ-XO\DQG2FWREHU

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

,Q]LQFSURGXFWLRQDW5HG'RJZDVWRQQHVORZHUWKDQWRQQHVSURGXFHGLQ SULPDULO\GXHWRORZHU]LQFJUDGHVDQGORZHUPLOOUHFRYHULHV/HDGSURGXFWLRQLQRI WRQQHVZDVVOLJKWO\ORZHUWKDQWRQQHVLQ 5HG'RJ¶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

&RPSRQHQW $SSUR[LPDWHSURMHFWHGFRVW 86PLOOLRQ

6XVWDLQLQJ 

*URZWK 

&DSLWDOL]HGVWULSSLQJ 

7RWDO 

SURMHFWHGFDVKRSHUDWLQJFRVWVIRU5HG'RJDUHDSSUR[LPDWHO\86PLOOLRQ7KHPDMRU FRPSRQHQWVRIWKHSURMHFWHGFDVKRSHUDWLQJFRVWVDUH

&RPSRQHQW $SSUR[LPDWHSURMHFWHGFRVW 86PLOOLRQ

/DERXU 

6XSSOLHV 

(QHUJ\ 

2WKHU LQFOXGLQJJHQHUDO DGPLQLVWUDWLYHLQYHQWRU\  FKDQJHV 

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

&RPSRQHQW $SSUR[LPDWHSURMHFWHGFRVW 86PLOOLRQ

/HVVDPRXQWVDVVRFLDWHGZLWKSURMHFWHGFDSLWDOL]HG   VWULSSLQJ

7RWDO 

7KHFDVKRSHUDWLQJFRVWVSUHVHQWHGDERYHGRQRWLQFOXGHWUDQVSRUWDWLRQRUUR\DOWLHV 

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

3HQG2UHLOOH0LQH8QLWHG6WDWHV =LQF/HDG  3HQG2UHLOOHPLQHORFDWHGLQ:DVKLQJWRQ6WDWHVXVSHQGHGPLQLQJRSHUDWLRQVRQ-XO\GXH WRWKHH[KDXVWLRQRILWVFXUUHQWUHVHUYHV7KHPLQHKDVEHHQSODFHGRQFDUHDQGPDLQWHQDQFH

Other Projects :HKDYHDLQWHUHVWLQWKH7HHQD5HZDUGSURMHFWZKLFKLVORFDWHGHLJKWNLORPHWUHVZHVWRIWKH 0F$UWKXU5LYHU0LQHLQWKH1RUWKHUQ7HUULWRU\RI$XVWUDOLD

Refining and Smelting

7UDLO2SHUDWLRQV 7HFN0HWDOVRZQVDQGRSHUDWHVWKHLQWHJUDWHGVPHOWLQJDQGUHILQLQJFRPSOH[DW7UDLO%ULWLVK &ROXPELD7KHFRPSOH[¶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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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

67((/0$.,1*&2$/

2XUFRDOPLQHUDOKROGLQJVFRQVLVWRIDPL[RIIHHVLPSOHODQGVRZQHGE\XVDQG&URZQOHDVHVDQG OLFHQFHVZKLFKDUHVXEMHFWWROHDVLQJDQGOLFHQVLQJIHHV&RDOOLFHQFHVDUHUHQHZHGDQQXDOO\RQWKHLU DQQLYHUVDU\GDWHFRDOOHDVHVDUHW\SLFDOO\RULJLQDOO\LVVXHGIRUD\HDUWHUPDQGFDQEHVXEVHTXHQWO\ UHQHZHGLQ\HDULQFUHPHQWV,QWKHSDVWUHQHZDOVRIWKHVHOLFHQFHVDQGOHDVHVKDYHJHQHUDOO\EHHQ JUDQWHGDOWKRXJKWKHUHFDQEHQRDVVXUDQFHWKDWWKLVZLOOFRQWLQXHLQWKHIXWXUH $OORI7HFN¶VRSHUDWLQJVWHHOPDNLQJFRDOPLQHVDUHLQ%ULWLVK&ROXPELDDQGDUHVXEMHFWWRWKH%&0LQHUDO 7D[ZKLFKLVDWZRWLHUWD[ZLWKDPLQLPXPUDWHRIDQGDPD[LPXPUDWHRI$PLQLPXPWD[RI DSSOLHVWRRSHUDWLQJFDVKIORZVDVGHILQHGE\WKHUHJXODWLRQV$PD[LPXPWD[UDWHRIDSSOLHVWR FDVKIORZVDIWHUWDNLQJDYDLODEOHGHGXFWLRQVIRUFDSLWDOH[SHQGLWXUHVDQGRWKHUSHUPLWWHGGHGXFWLRQV $OORI7HFN¶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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

Elk Valley Water Quality Management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

:DWHUWUHDWPHQW $:7)VDQG65)V   ± :DWHUPDQDJHPHQW VRXUFHFRQWUROFDOFLWHDQGWULEXWDU\   ±

  ±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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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isheries Act WKH'LUHFWLRQ VHWWLQJRXWPHDVXUHVWREHWDNHQWRLPSURYHZDWHUTXDOLW\DQGSUHYHQW FDOFLWHGHSRVLWLRQLQWKH(ON9DOOH\LQZDWHUVDIIHFWHGE\7HFN¶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isheries Act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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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

Coal Transportation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¶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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

HVWLPDWHGWREHDQDGGLWLRQDOWRPLOOLRQ6SHQGLQJRQWKH1HSWXQHIDFLOLW\XSJUDGHSURMHFWLV H[SHFWHGWREHDSSUR[LPDWHO\PLOOLRQLQWKURXJKWRFRPSOHWLRQ2QFHFRPSOHWHGWKHXSJUDGH SURMHFWZLOOVLJQLILFDQWO\LQFUHDVHWHUPLQDOORDGLQJFDSDFLW\DQGLPSURYHRXUFDSDELOLW\WRPHHWGHOLYHU\ FRPPLWPHQWVWRRXUFXVWRPHUVZKLOHORZHULQJRXURYHUDOOORJLVWLFVFRVWV7KHXSJUDGHSURMHFWLVH[SHFWHG WRLQFUHDVH1HSWXQH¶VFRDOFDSDFLW\WRPRUHWKDQPLOOLRQWRQQHVSHUDQQXP ,Q-DQXDU\ZHDQQRXQFHGDQDJUHHPHQWZLWK5LGOH\IRUVKLSPHQWVRIVWHHOPDNLQJFRDOIURP7HFN¶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¶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

Property Description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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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¶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

&RPSRQHQW $SSUR[LPDWHSURMHFWHGFRVW PLOOLRQ

6XVWDLQLQJ 

*URZWK 

&DSLWDOL]HGVWULSSLQJ 

7RWDO 

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

 7KHFDSLWDOFRVWVSUHVHQWHGDERYHGRQRWLQFOXGHZDWHUTXDOLW\FDSLWDOFRVWV SURMHFWHGFDVKRSHUDWLQJFRVWVIRU)RUGLQJ5LYHUDUHDSSUR[LPDWHO\PLOOLRQ7KHPDMRU FRPSRQHQWVRIWKHSURMHFWHGFDVKRSHUDWLQJFRVWVDUH

&RPSRQHQW $SSUR[LPDWHSURMHFWHGFRVW PLOOLRQ

/DERXU 

6XSSOLHV 

(QHUJ\ 

2WKHU LQFOXGLQJJHQHUDO DGPLQLVWUDWLYHLQYHQWRU\  FKDQJHV 

/HVVDPRXQWVDVVRFLDWHGZLWKSURMHFWHGFDSLWDOL]HG   VWULSSLQJ

7RWDO 

7KHFDVKRSHUDWLQJFRVWVSUHVHQWHGDERYHGRQRWLQFOXGHWUDQVSRUWDWLRQRUUR\DOWLHV

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

&RPSRQHQW $SSUR[LPDWHSURMHFWHGFRVW PLOOLRQ

6XVWDLQLQJ 

*URZWK 

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

&RPSRQHQW $SSUR[LPDWHSURMHFWHGFRVW PLOOLRQ

&DSLWDOL]HGVWULSSLQJ 

7RWDO   7KHFDSLWDOFRVWVSUHVHQWHGDERYHGRQRWLQFOXGHZDWHUTXDOLW\FDSLWDOFRVWV SURMHFWHGFDVKRSHUDWLQJFRVWVIRU(ONYLHZDUHDSSUR[LPDWHO\PLOOLRQ7KHPDMRU FRPSRQHQWVRIWKHSURMHFWHGFDVKRSHUDWLQJFRVWVDUH

&RPSRQHQW $SSUR[LPDWHSURMHFWHGFRVW PLOOLRQ

/DERXU 

6XSSOLHV 

(QHUJ\ 

2WKHU LQFOXGLQJJHQHUDO DGPLQLVWUDWLYHLQYHQWRU\  FKDQJHV 

/HVVDPRXQWVDVVRFLDWHGZLWKSURMHFWHGFDSLWDOL]HG   VWULSSLQJ

7RWDO 

7KHFDVKRSHUDWLQJFRVWVSUHVHQWHGDERYHGRQRWLQFOXGHWUDQVSRUWDWLRQRUUR\DOWLHV

*UHHQKLOOV0LQH%&&DQDGD *UHHQKLOOVLVRSHUDWHGXQGHUDMRLQWYHQWXUHDJUHHPHQWDPRQJ7HFN&RDO326&2&DQDGD/LPLWHG 326&$1 DQG326&$1¶VSDUHQW326&23XUVXDQWWRWKHMRLQWYHQWXUHDJUHHPHQW7HFN&RDOKDV DQLQWHUHVWLQWKHMRLQWYHQWXUHZKLOH326&$1KDVDLQWHUHVW7HFN&RDODQG326&$1RZQ WKHPLQHHTXLSPHQWDQGSUHSDUDWLRQSODQWLQSURSRUWLRQWRWKHLUUHVSHFWLYHMRLQWYHQWXUHLQWHUHVWV 8QGHUWKHMRLQWYHQWXUHDJUHHPHQW7HFN&RDOLVWKHPDQDJHUDQGRSHUDWRURI*UHHQKLOOVDQGWDNHV RIDOOFRDOSURGXFHGDW*UHHQKLOOV326&$1WDNHVWKHUHPDLQLQJDQGSD\VDTXDUWHUO\ UR\DOW\EDVHGRQWKHSULFHDFKLHYHGIRU*UHHQKLOOVFRDOVDOHV 7HFN&RDODQG326&$1EHDUDOOFRVWVDQGH[SHQVHVLQFXUUHGLQRSHUDWLQJ*UHHQKLOOVLQSURSRUWLRQ WRWKHLUUHVSHFWLYHMRLQWYHQWXUHLQWHUHVWV326&$1SXUVXDQWWRDSURSHUW\ULJKWVJUDQWKDVDULJKWWR RIDOOFRDOPLQHGIURPFHUWDLQGHILQHGODQGVDW*UHHQKLOOVXQWLOWKHHQGRIWKHRSHUDWLRQDOSKDVH RIWKHMRLQWYHQWXUH326&$1SD\V7HFNDUR\DOW\IRUDFFHVVWRRWKHUFRDOUHVHUYHVRZQHGE\7HFN WKDWDUHSURFHVVHGE\*UHHQKLOOVHTXLSPHQWDQGIDFLOLWLHV7KHMRLQWYHQWXUHDJUHHPHQWSURYLGHVIRUD UHYLHZRIWKHWHUPVRIWKHDJUHHPHQWLQDQGLQWKHHYHQWWKHSDUWLHVGLVDJUHHRQWKH FRQWLQXDWLRQRIWKHWHUPVRIWKHDJUHHPHQWWKHRSHUDWLRQDOSKDVHZLOOFRPHWRDQHQG3XUVXDQWWRD UHYLHZRIWKHMRLQWYHQWXUHDJUHHPHQWRQ)HEUXDU\ZHDJUHHGZLWK326&$1WR VXEVWDQWLDOO\LQFUHDVHWKHUR\DOW\SDLGE\LWLQUHVSHFWRILWVVKDUHRISURGXFWLRQ 7KH*UHHQKLOOVPLQHLVORFDWHGNLORPHWUHVQRUWKHDVWRIWKHFRPPXQLW\RI(ONIRUGLQVRXWKHDVWHUQ %ULWLVK&ROXPELD7KHPLQHVLWHFRQVLVWVRIDSSUR[LPDWHO\KHFWDUHVRIFRDOODQGV,QDGGLWLRQ WKHFXUUHQWOLIHRIPLQHSODQFRQWHPSODWHVWKDW*UHHQKLOOVPD\GHYHORSDQGPLQHDQDUHDRI DSSUR[LPDWHO\KHFWDUHVDVVRFLDWHGZLWK)RUGLQJ5LYHU¶V6ZLIWUHJLRQ7KHUHVHUYHVDVVRFLDWHG ZLWKWKDWDUHDDUHUHIOHFWHGLQ*UHHQKLOOV¶UHVHUYHVDQGWKHOLIHRIPLQHHVWLPDWHVEHORZ&RDOPLQHG DW*UHHQKLOOVLVSULPDULO\VWHHOPDNLQJFRDODOWKRXJKOHVVHUTXDQWLWLHVRIORZHUJUDGHKDUGFRNLQJFRDO

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

DUHDOVRSURGXFHG7KHFXUUHQWDQQXDOSURGXFWLRQFDSDFLWLHVRIWKHPLQHDQGSUHSDUDWLRQSODQW RQD EDVLV DUHPLOOLRQDQGPLOOLRQWRQQHVRIFOHDQFRDOUHVSHFWLYHO\ 7RLPSURYHRSHUDWLRQDOHIILFLHQF\UDZFRDOIURP*UHHQKLOOVPD\EHSURFHVVHGDWWKH)RUGLQJ5LYHU SODQW &XUUHQWSURGXFWLRQLVGHULYHGSULPDULO\IURPWKH&RXJDUSLWDUHD3URYHQDQGSUREDEOHUHVHUYHVDW *UHHQKLOOVDUHSURMHFWHGWRVXSSRUWPLQLQJIRUDIXUWKHU\HDUVRUOHVVGHSHQGLQJRQWKHH[WHQWRI *UHHQKLOOV¶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

&RPSRQHQW $SSUR[LPDWHSURMHFWHGFRVW PLOOLRQ

6XVWDLQLQJ 

*URZWK 

&DSLWDOL]HGVWULSSLQJ 

7RWDO 

7KHFDSLWDOFRVWVSUHVHQWHGDERYHGRQRWLQFOXGHZDWHUTXDOLW\FDSLWDOFRVWV 2XUVKDUHRISURMHFWHGFDVKRSHUDWLQJFRVWVIRU*UHHQKLOOVLVDSSUR[LPDWHO\PLOOLRQ 7KHPDMRUFRPSRQHQWVRIRXUVKDUHRISURMHFWHGFDVKRSHUDWLQJFRVWVDUH

&RPSRQHQW $SSUR[LPDWHSURMHFWHGFRVW PLOOLRQ

/DERXU 

6XSSOLHV 

(QHUJ\ 

2WKHU LQFOXGLQJJHQHUDO DGPLQLVWUDWLYHLQYHQWRU\  FKDQJHV 

/HVVDPRXQWVDVVRFLDWHGZLWKSURMHFWHGFDSLWDOL]HG   VWULSSLQJ

7RWDO 

7KHFDVKRSHUDWLQJFRVWVSUHVHQWHGDERYHGRQRWLQFOXGHWUDQVSRUWDWLRQRUUR\DOWLHV 

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

/LQH&UHHN0LQH%&&DQDGD 7KH/LQH&UHHNPLQHLVORFDWHGDSSUR[LPDWHO\NLORPHWUHVQRUWKRI6SDUZRRGLQVRXWKHDVWHUQ %ULWLVK&ROXPELD/LQH&UHHNVXSSOLHVVWHHOPDNLQJDQG3&,FRDOWRDYDULHW\RILQWHUQDWLRQDODQG GRPHVWLFFXVWRPHUV7KH/LQH&UHHNSURSHUW\FRQVLVWVRIDSSUR[LPDWHO\KHFWDUHVRIFRDO ODQGV 7KHFXUUHQWDQQXDOSURGXFWLRQFDSDFLW\RIWKHPLQHDQGSUHSDUDWLRQSODQWLVDSSUR[LPDWHO\PLOOLRQ WRQQHVRIFOHDQFRDO3URYHQDQGSUREDEOHUHVHUYHVDW/LQH&UHHNDUHSURMHFWHGWRVXSSRUWPLQLQJIRU DIXUWKHU\HDUV

&DUGLQDO5LYHU0LQH$OEHUWD&DQDGD 2XU&DUGLQDO5LYHUPLQHLQ$OEHUWDFRPSOHWHGLWVILQDOSURGXFWLRQLQ-XQHDQGWUDQVLWLRQHGWRFORVXUH LQWKHVHFRQGKDOIRI

4XLQWHWWH&RDO3URMHFW%&&DQDGD 2XU4XLQWHWWHPLQHLQQRUWKHDVWHUQ%ULWLVK&ROXPELDKDVEHHQFORVHGVLQFHDQGUHPDLQVRQ FDUHDQGPDLQWHQDQFH

&RDO0RXQWDLQ0LQH%&&DQDGD 2XU&RDO0RXQWDLQPLQHLQVRXWKHDVWHUQ%ULWLVK&ROXPELDWUDQVLWLRQHGWRFDUHDQGPDLQWHQDQFHLQ WKHVHFRQGTXDUWHURI

2WKHU&RDO3URMHFWV%&&DQDGD 2WKHUFRDOSURSHUWLHVLQFOXGH0W'XNH LQWHUHVW VRXWKRI7XPEOHU5LGJH%&(OFR  LQWHUHVW DWWKHQRUWKHQGRIWKH(ON9DOOH\DQGWKH&RDO0RXQWDLQ3KDVH,,3URSHUW\ LQWHUHVW  VLWXDWHGEHWZHHQ(ONYLHZDQGWKHUHFHQWO\FORVHG&RDO0RXQWDLQ2SHUDWLRQV

(1(5*<

Fort Hills Mine )RUW+LOOVPLQHVH[WUDFWVDQGVHOOVWKHUHFRYHUDEOHELWXPHQIRXQGLQFHUWDLQRLOVDQGVGHSRVLWV XQGHUO\LQJVL[$OEHUWD2LO6DQGV/HDVHV1R¶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pro rataVKDUHLQWHUHVWV 6XQFRU(QHUJ\2SHUDWLQJ,QFDQDIILOLDWHRI6XQFRUDFWVDVFRQWUDFWRSHUDWRURI)RUW+LOOVSXUVXDQW WRDQRSHUDWLQJVHUYLFHVFRQWUDFW7KHFRQWUDFWRSHUDWRUKDVH[FOXVLYHDXWKRULW\WRRSHUDWH)RUW+LOOV VXEMHFWWRWKHRYHUVLJKWRIDPDQDJHPHQWFRPPLWWHHRQZKLFKHDFKRIWKHVKDUHKROGHUVRIWKH JHQHUDOSDUWQHUDUHUHSUHVHQWHG&HUWDLQIXQGDPHQWDOGHFLVLRQVFRQFHUQLQJ)RUW+LOOVUHTXLUHVXSHU PDMRULW\DQGLQFHUWDLQFDVHVXQDQLPRXVDSSURYDORIWKHPDQDJHPHQWFRPPLWWHH6XEMHFWWR

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

FHUWDLQH[FHSWLRQVOLPLWHGSDUWQHUVKDYHDULJKWRIILUVWUHIXVDOLQWKHHYHQWRIDWUDQVIHURIDQRWKHU¶V OLPLWHGSDUWQHUVKLSLQWHUHVW 7RPHHWSLSHOLQHYLVFRVLW\UHTXLUHPHQWV7HFNDORQJZLWKWKHRWKHU)RUW+LOOVSDUWQHUVLVUHTXLUHGWR SXUFKDVHGLOXHQWEOHQGVWRFN,QRUGHUWRIDFLOLWDWHWKLVDQGWKHWUDQVSRUWDWLRQRIEOHQGHGELWXPHQWR WKHPDUNHWKXEDW+DUGLVW\WKH)RUW+LOOVSDUWQHUVKDYHMRLQWO\HQWHUHGLQWRORQJWHUPWDNHRUSD\ DJUHHPHQWVZLWKUHJLRQDOSLSHOLQHVWHUPLQDOVDQGEOHQGIDFLOLWLHV7KHVHDJUHHPHQWVUHODWHWR

„ KRWELWXPHQWUDQVSRUWDWLRQIURP)RUW+LOOVWRWKH(DVW7DQN)DUPRQWKH1RUWKHUQ&RXULHU 3LSHOLQHRSHUDWHGE\7UDQV&DQDGD

„ GLOXHQWWUDQVSRUWDWLRQIURP(GPRQWRQWRWKH(DVW7DQN)DUPRQWKH1RUOLWH3LSHOLQH RSHUDWHGE\(QEULGJH

„ XVHRIGLOXHQWDQGELWXPHQEOHQGLQJIDFLOLW\DWWKH(DVW7DQN)DUPRSHUDWHGE\WKH 7KHEDFKDSDUWQHUVKLSDMRLQWYHQWXUHEHWZHHQ6XQFRUDQGUHJLRQDO)LUVW1DWLRQV )RUW 0F.D\)LUVW1DWLRQDQG0LNLVHZ&UHH)LUVW1DWLRQ DQG

„ EOHQGHGELWXPHQWUDQVSRUWDWLRQIURPWKH(DVW7DQN)DUPWRWKHPDUNHWKXEDW+DUGLVW\ $OEHUWDRQWKH:RRG%XIIDOR3LSHOLQHRSHUDWHGE\(QEULGJH :HKDYHVHSDUDWHO\FRQWUDFWHGDEDUUHOZRUNLQJFDSDFLW\VWRUDJHWDQNIRURXUVKDUHRI EOHQGHGELWXPHQDW+DUGLVW\$OEHUWDDQGEDUUHOVRIGLOXHQWVWRUDJHFDSDFLW\DW)RUW 6DVNDWFKHZDQ$OEHUWD :HVHOORXUEOHQGHGELWXPHQWRFXVWRPHUVDW+DUGLVW\DQGRQWKH86*XOI&RDVW2XUWDQNDJHDW +DUGLVW\LVFRQQHFWHGWRPDMRUH[SRUWSLSHOLQHVLQFOXGLQJWKH(QEULGJHFRPPRQFDUULHUSLSHOLQHWKH H[LVWLQJ.H\VWRQHSLSHOLQHDQGWKH([SUHVVFUXGHRLOSLSHOLQH2XUWDQNDJHLVDOVRFRQQHFWHGWRD ODUJHXQLWWUDLQORDGLQJIDFLOLW\:HKDYHHQWHUHGLQWRDORQJWHUPWDNHRUSD\DJUHHPHQWRQWKH H[LVWLQJ.H\VWRQHSLSHOLQHWRVKLSEDUUHOVSHUGD\RIEOHQGHGELWXPHQWRRXUFXVWRPHUVRQWKH 86*XOI&RDVW:HKDYHDOVRHQWHUHGLQWRDJUHHPHQWVWRVKLSDQDGGLWLRQDOEDUUHOVSHUGD\ RQWKHSURSRVHG.H\VWRQH;/SLSHOLQHH[SDQVLRQDQGDQDGGLWLRQDOEDUUHOVSHUGD\RQWKH SURSRVHG7UDQV0RXQWDLQSLSHOLQHH[SDQVLRQWRFXVWRPHUVRQWKH86*XOI&RDVWDQGLQ%XUQDE\ %&UHVSHFWLYHO\7KHEDODQFHRIRXUSURGXFWLRQZLOOEHVROGDW+DUGLVW\VKLSSHGWRFXVWRPHUVYLD WKH(QEULGJHFRPPRQFDUULHUSLSHOLQHRUWUDQVSRUWHGE\UDLOLIUHTXLUHG7KHSURVSHFWVIRU FRQVWUXFWLRQRIWKH.H\VWRQH;/SLSHOLQHH[SDQVLRQDUHXQFHUWDLQLQOLJKWRIWKHFRQVWUXFWLRQSHUPLWV IRUWKHSLSHOLQHH[SDQVLRQVEHLQJUHYRNHGE\WKH86JRYHUQPHQWLQ-DQXDU\ 'XHWRH[WUHPHSULFHYRODWLOLW\IRU$OEHUWDFUXGHRLOWKH*RYHUQPHQWRI$OEHUWDDQQRXQFHGD WHPSRUDU\FXUWDLOPHQWRISURYLQFLDOFUXGHRLODQGELWXPHQSURGXFWLRQHIIHFWLYH-DQXDU\7KH *RYHUQPHQWRI$OEHUWDUHOD[HGWKHFXUWDLOPHQWVLQ'HFHPEHU 2XUVKDUHRIELWXPHQSURGXFWLRQIURP)RUW+LOOVZDVEDUUHOVSHUGD\LQ7KLV FRPSDUHVWREDUUHOVSHUGD\SURGXFHGLQ7KHFKDQJHLVSULPDULO\DWWULEXWDEOHWRWKH )RUW+LOOV3DUWQHUVKLSVDIHO\DQGHIILFLHQWO\UHGXFLQJRSHUDWLRQVLQWKHVHFRQGTXDUWHUZKLFKKHOSHG UHGXFHQHJDWLYHFDVKIORZVWKURXJKWKH\HDULQOLJKWRI&29,'DQGXQSUHFHGHQWHGORZ:&6 SULFHV)RUW+LOOVUDPSHGXSSURGXFWLRQLQWKHIRXUWKTXDUWHUWRDSSUR[LPDWHO\EDUUHOVSHU GD\RIZKLFKRXUVKDUHZDV+RZHYHUSURGXFWLRQZDVLPSDFWHGE\WKHVKXWGRZQRI RSHUDWLRQVIRUVHYHUDOGD\VWRKHOSIDFLOLWDWHDWKRURXJKLQYHVWLJDWLRQRIDIDWDOLQFLGHQWLQODWH 'HFHPEHU2SHUDWLRQVKDYHVLQFHFRPPHQFHGZLWKSURGXFWLRQUDPSLQJXSLQ-DQXDU\6XQFRUWKH RSHUDWRURI)RUW+LOOVLVFRQGXFWLQJDQLQYHVWLJDWLRQRIWKHLQFLGHQW :HH[SHFWRXUVKDUHRI)RUW+LOOVDQQXDOSURGXFWLRQWREHDSSUR[LPDWHO\WREDUUHOVSHU GD\LQ

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

7HFNHQJDJHG*/-/WG */- WRSUHSDUHDQLQGHSHQGHQWHYDOXDWLRQRIWKHUHVHUYHVDW)RUW+LOOV HIIHFWLYHDVRI'HFHPEHU%DVHGRQWKDWHYDOXDWLRQWKHEHVWHVWLPDWHRI7HFN¶VVKDUHRI WKHSURYHGSOXVSUREDEOHUHVHUYHVDW)RUW+LOOVDVDW'HFHPEHULVPLOOLRQEDUUHOVRI ELWXPHQ6HH³Oil and Gas Reserves´EHORZIRUDIXUWKHUGLVFXVVLRQRIWKHUHVHUYHVIRU)RUW+LOOV 7KH)RUW+LOOVSDUWQHUVKLS¶VFXUUHQWPLQHSODQLVH[SHFWHGWRVXSSRUWPLQLQJDWGHVLJQSURGXFWLRQ UDWHVIRURYHU\HDUV )RUW+LOOVLVVXEMHFWWRWKHUR\DOW\IUDPHZRUNLVVXHGE\WKH*RYHUQPHQWRI$OEHUWD WKH2LO6DQGV 5R\DOW\ DQGUHJXODWHGE\WKH Royalty Regulation 2009DQGUHODWHGUHJXODWLRQV8QGHUWKH 2LO6DQGV5R\DOW\UR\DOWLHVIRU)RUW+LOOVDUHEDVHGRQDVOLGLQJVFDOHRIWRRIQHWUHYHQXH VXEMHFWWRDPLQLPXPUR\DOW\ZLWKLQDUDQJHRIWRRIJURVVUHYHQXH5HYHQXHVXVHGLQUR\DOW\ IRUPXODVDUHGULYHQE\UHDOL]HGQHWSULFHVWRDUP¶VOHQJWKFXVWRPHUVRULIWKHUHDUHLQVXIILFLHQWDUP¶V OHQJWKVDOHVEHQFKPDUNSULFHVIRU:HVWHUQ&DQDGLDQ6HOHFWZKLOHVOLGLQJVFDOHSHUFHQWDJHVLQ UR\DOW\IRUPXODVGHSHQGRQSULFHVIRU:HVW7H[DV,QWHUPHGLDWH :7, IURP&$'EEOIRUWKH PLQLPXPUDWHWRWKHPD[LPXPUDWHDWD:7,SULFHRI&$'EEO)RUW+LOOVUHPDLQVVXEMHFWWRWKH PLQLPXPUR\DOW\ WKHSUHSD\RXWSKDVH XQWLO)RUW+LOOV¶FXPXODWLYHJURVVUHYHQXHH[FHHGVLWV FXPXODWLYHFRVWVLQFOXGLQJDQDQQXDOLQYHVWPHQWDOORZDQFH$IWHUWKHSUHSD\RXWSKDVHWKHKLJKHU RIWKHPLQLPXPDQGUHJXODUUR\DOW\UDWHVZLOODSSO\ )RUW+LOOVLVUHTXLUHGWRXSJUDGHWKHELWXPHQSURGXFHGIURPWKHVHFRQGSKDVHRIWKHSURMHFWLQ $OEHUWDRUWRSD\DSHQDOW\WRWKH*RYHUQPHQWRI$OEHUWD 2XUVKDUHRI)RUW+LOOVFDSLWDOH[SHQGLWXUHVIRULVH[SHFWHGWREHDSSUR[LPDWHO\PLOOLRQ IRFXVHGRQWDLOLQJVLQIUDVWUXFWXUHDQGZRUNWRWUDQVLWLRQWRWKHQH[WPLQLQJDUHDDW)RUW+LOOV

Frontier Project :HZKROO\RZQWKH)URQWLHURLOVDQGVSURMHFWZKLFKFRQVLVWVRIDSSUR[LPDWHO\KHFWDUHVRIRLO VDQGVOHDVHVDQGLVORFDWHGRQWKHZHVWVLGHRIWKH$WKDEDVFD5LYHU,Q)HEUXDU\ZH DQQRXQFHGWKDWZHZHUHZLWKGUDZLQJWKH)URQWLHUSURMHFWIURPWKHUHJXODWRU\UHYLHZSURFHVV )ROORZLQJWKHZLWKGUDZDOZHWRRNVWHSVWRPLQLPL]HVSHQGLQJDQGNH\DFWLYLWLHVLQZHUHOLPLWHG WRWKRVHUHTXLUHGWRPDLQWDLQFXUUHQWOHDVHVDQGUHJXODWRU\DSSURYDOVDVZHOODVIXOILOOLQJRXU FRPPLWPHQWVXQGHUDJUHHPHQWVLQFOXGLQJWKRVHZLWKORFDO,QGLJHQRXVFRPPXQLWLHV

Lease 421 Area :HRZQDLQWHUHVWLQWKH/HDVH$UHD²RLOVDQGVOHDVHV DQG²HDVWRIWKH$WKDEDVFD5LYHU DSSUR[LPDWHO\KHFWDUHVRQD EDVLV 7RGDWHDWRWDORIFRUHKROHVKDYHEHHQFRPSOHWHGLQWKH/HDVH$UHD

([SORUDWLRQ

,QZHLQFXUUHGH[SORUDWLRQH[SHQGLWXUHVRIPLOOLRQLQFOXGLQJPLOOLRQLQVXSSRUWRIPLQHVLWH DQGGHYHORSPHQWHQJLQHHULQJSURMHFWV$SSUR[LPDWHO\RIWKHSURMHFWH[SHQGLWXUHVZHUHGHGLFDWHGWR H[SORUDWLRQIRUFRSSHUIRU]LQFDQGIRUJROGZLWKOHVVWKDQGHGLFDWHGWRRWKHUFRPPRGLWLHV LQFOXGLQJFRDO2IWKHWRWDOH[SORUDWLRQH[SHQGLWXUHVDSSUR[LPDWHO\ZDVVSHQWLQ6RXWK$PHULFD LQ1RUWK$PHULFDLQ$XVWUDOLDDQGLQ(XURSH,QSODQQHGH[SORUDWLRQH[SHQGLWXUHVDUH H[SHFWHGWREHDSSUR[LPDWHO\PLOOLRQLQFOXGLQJPLOOLRQLQVXSSRUWRIPLQHVLWHDQG GHYHORSPHQWHQJLQHHULQJSURMHFWV

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

([SORUDWLRQLVFDUULHGRXWWKURXJKVROHIXQGLQJDQGMRLQWYHQWXUHVZLWKPDMRUDQGMXQLRUH[SORUDWLRQ FRPSDQLHV([SORUDWLRQLVIRFXVHGRQDUHDVLQSUR[LPLW\WRRXUH[LVWLQJRSHUDWLRQVRUGHYHORSPHQW SURMHFWVLQUHJLRQVWKDWZHFRQVLGHUKDYHKLJKSRWHQWLDOIRUGLVFRYHU\

&RUSRUDWH

)RUILQDQFLDOUHSRUWLQJSXUSRVHVZHUHSRUWRQDFRUSRUDWHVHJPHQWWKDWLQFOXGHVDOORIRXUDFWLYLWLHVLQ FRPPRGLWLHVRWKHUWKDQFRSSHUFRDO]LQFDQGHQHUJ\RXUFRUSRUDWHGHYHORSPHQWDQGJURZWKLQLWLDWLYHV DQGJURXSVWKDWSURYLGHDGPLQLVWUDWLYHWHFKQLFDOILQDQFLDODQGRWKHUVXSSRUWWRDOORIRXUEXVLQHVVXQLWV

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

0LQHUDO5HVHUYHVDQG5HVRXUFHV 

6HH³Notes to Mineral Reserves and Resources Tables´EHORZDIWHUWKH0LQHUDO5HVRXUFHVWDEOHV

0,1(5$/5(6(59(6DVDW'HFHPEHU    3URYHQ 3UREDEOH 7RWDO 7HFN 5HFRYHUDEOH  7RQQHV *UDGH 7RQQHV *UDGH 7RQQHV *UDGH ,QWHUHVW 0HWDO W   V     V     V      &RSSHU         +LJKODQG9DOOH\&RSSHU         $QWDPLQD  &RSSHURQO\RUH23         &RSSHU]LQFRUH23         7RWDO         4XHEUDGD%ODQFD  +HDS/HDFKRUH           'XPS/HDFKRUH           7RWDO/HDFKDEOH           4XHEUDGD%ODQFD0LOO         $QGDFROOR  $QGDFROOR+HDS/HDFK         $QGDFROOR0LOO         1XHYD8QLyQ   5HOLQFKR         /D)RUWXQD         7RWDO         =DIUDQDO         6DQ1LFROiV         0RO\EGHQXP         +LJKODQG9DOOH\&RSSHU         $QWDPLQD  &RSSHURQO\RUH23         4XHEUDGD%ODQFD  4XHEUDGD%ODQFD0LOO         1XHYD8QLyQ  5HOLQFKR         =LQF         $QWDPLQD         &RSSHU]LQFRUH23         5HG'RJ  5HG'RJ0LQH       6DQ1LFROiV         /HDG         5HG'RJ         5HG'RJ0LQH       



7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

0,1(5$/5(6(59(6DVDW'HFHPEHU    3URYHQ 3UREDEOH 7RWDO 7HFN 5HFRYHUDEOH   7RQQHV *UDGH 7RQQHV *UDGH 7RQQHV *UDGH ,QWHUHVW 0HWDO R]  V  JW     V  JW     V  JW      *ROG $QGDFROOR0LOO           1XHYD8QLyQ  /D)RUWXQD         =DIUDQDO         6DQ1LFROiV         6LOYHU  $QWDPLQD  &RSSHURQO\RUH23           &RSSHU]LQFRUH23           7RWDO           4XHEUDGD%ODQFD  4XHEUDGD%ODQFD0LOO         1XHYD8QLyQ  5HOLQFKR         /D)RUWXQD         7RWDO         5HG'RJ  5HG'RJ0LQH       6DQ1LFROiV         

0,1(5$/5(6(59(6DVDW'HFHPEHU    3URYHQ 3UREDEOH 7RWDO 7HFN,QWHUHVW &OHDQ&RDO 7RQQHV  V  7RQQHV  V  7RQQHV  V    W 

0HWDOOXUJLFDO&RDO   )RUGLQJ5LYHU      (ONYLHZ      *UHHQKLOOV      /LQH&UHHN      4XLQWHWWH 0W%DEFRFN       3&,&RDO   /LQH&UHHN      7KHUPDO&RDO   4XLQWHWWH 0W%DEFRFN       



7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

0,1(5$/5(6285&(6DVDW'HFHPEHU    0HDVXUHG ,QGLFDWHG ,QIHUUHG 7HFN ,QWHUHVW 7RQQHV *UDGH 7RQQHV *UDGH 7RQQHV *UDGH    V     V     V    &RSSHU +LJKODQG9DOOH\&RSSHU        $QWDPLQD  &RSSHURQO\RUH23        &RSSHU]LQFRUH23         &RSSHURQO\RUH8*    &RSSHU]LQFRUH8*        7RWDO        4XHEUDGD%ODQFD  4XHEUDGD%ODQFD0LOO        $QGDFROOR  $QGDFROOR+HDS/HDFK        $QGDFROOR0LOO        1XHYD8QLyQ  5HOLQFKR        /D)RUWXQD        7RWDO        *DORUH&UHHN        6FKDIW&UHHN        0HVDED        =DIUDQDO        6DQ1LFROiV        0RO\EGHQXP +LJKODQG9DOOH\&RSSHU        $QWDPLQD  &RSSHURQO\RUH23        &RSSHURQO\RUH8*    7RWDO        4XHEUDGD%ODQFD  4XHEUDGD%ODQFD0LOO        1XHYD8QLyQ  5HOLQFKR        6FKDIW&UHHN        =LQF $QWDPLQD  &RSSHU]LQFRUH23        &RSSHU]LQFRUH8*    7RWDO        5HG'RJ  5HG'RJ0LQH      5HG'RJ'LVWULFW    3HQG2UHLOOH        6DQ1LFROiV        

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

0,1(5$/5(6285&(6DVDW'HFHPEHU    0HDVXUHG ,QGLFDWHG ,QIHUUHG 7HFN ,QWHUHVW 7RQQHV *UDGH 7RQQHV *UDGH 7RQQHV *UDGH      V     V     V  /HDG 5HG'RJ  5HG'RJ0LQH       5HG'RJ'LVWULFW    3HQG2UHLOOH        1LFNHO 0HVDED        &REDOW 0HVDED        0,1(5$/5(6285&(6DVDW'HFHPEHU    0HDVXUHG ,QGLFDWHG ,QIHUUHG 7HFN 7RQQHV *UDGH 7RQQHV *UDGH 7RQQHV *UDGH ,QWHUHVW  V  JW     V  JW     V  JW      *ROG $QGDFROOR0LOO          1XHYD8QLyQ  /D)RUWXQD        *DORUH&UHHN        6FKDIW&UHHN        0HVDED        =DIUDQDO          6DQ1LFROiV        6LOYHU $QWDPLQD  &RSSHURQO\RUH23          &RSSHU]LQFRUH23          &RSSHURQO\RUH8*      &RSSHU]LQFRUH8*          7RWDO          4XHEUDGD%ODQFD  4XHEUDGD%ODQFD0LOO        1XHYD8QLyQ  5HOLQFKR        /D)RUWXQD        7RWDO        5HG'RJ  5HG'RJ0LQH      5HG'RJ'LVWULFW    *DORUH&UHHN        6FKDIW&UHHN        0HVDED        6DQ1LFROiV        3ODWLQXP 0HVDED        3DOODGLXP 0HVDED        

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP



0,1(5$/5(6285&(6DVDW'HFHPEHU    0HDVXUHG ,QGLFDWHG ,QIHUUHG 7HFN 7RQQHV  V  7RQQHV  V  7RQQHV  V  ,QWHUHVW  

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

  ,QDQLQWHUHVWLQIXWXUHJROGSURGXFWLRQIURPWKH$QGDFROORPLQHZDVVROG&RPSDxtD0LQHUD7HFN &DUPHQGH$QGDFROORKDVDJUHHGWRVHOODQGGHOLYHUWRWKHSXUFKDVHUDQDPRXQWRIJROGHTXDOWRRI WKHSD\DEOHJROGSURGXFHGIURPWKH&DUPHQGH$QGDFROORPLQHXQWLORXQFHVKDYHEHHQGHOLYHUHG DQGWKHUHDIWHU5HVHUYHVDQGUHVRXUFHVDUHVWDWHGZLWKRXWDFFRXQWLQJIRUWKLVSURGXFWLRQLQWHUHVW

  JW JUDPVSHUWRQQH   ,Q7HFNHQWHUHGLQWRDQDJUHHPHQWZLWKDSXUFKDVHUWRGHOLYHUVLOYHUHTXLYDOHQWWRRIWKH SD\DEOHVLOYHUVROGE\&RPSDxtD0LQHUD$QWDPLQD6$XQWLOPLOOLRQRXQFHVRIVLOYHUKDYHEHHQ GHOLYHUHGDIWHUZKLFKWKHDPRXQWRIVLOYHUWREHGHOLYHUHGZLOOEHUHGXFHGE\RQHWKLUG5HVHUYHVDQG UHVRXUFHVDUHVWDWHGZLWKRXWDFFRXQWLQJIRUWKLVSURGXFWLRQLQWHUHVW

  &RDOUHVHUYHVDUHUHSRUWHGDVWRQQHVRIFOHDQFRDO   &RDOUHVRXUFHVDUHUHSRUWHGDVWRQQHVRIUDZFRDO   $W=DIUDQDOJROGLQR[LGHPDWHULDOLVFRQVLGHUHGWREHQRQUHFRYHUDEOH 

 

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

'(),1,7,216)250,1(5$/5(6(59(6$1'0,1(5$/5(6285&(6

0LQHUDO5HVHUYHVDQG0LQHUDO5HVRXUFHV³3URYHQ´DQG³SUREDEOH´PLQHUDOUHVHUYHVDQG³PHDVXUHG´ ³LQGLFDWHG´DQG³LQIHUUHG´PLQHUDOUHVRXUFHVDUHHVWLPDWHGLQDFFRUGDQFHZLWKWKHGHILQLWLRQVRIWKHVH WHUPVDGRSWHGE\WKH&DQDGLDQ,QVWLWXWHRI0LQLQJ0HWDOOXUJ\DQG3HWUROHXPLQ1RYHPEHUXSGDWHG LQ0D\DQGLQFRUSRUDWHGLQ1DWLRQDO,QVWUXPHQWStandards of Disclosure for Mineral Projects ³1,´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³PLQHUDOUHVRXUFH´LVDFRQFHQWUDWLRQRURFFXUUHQFHRIVROLGPDWHULDORIHFRQRPLFLQWHUHVWLQRURQWKH (DUWK¶VFUXVWLQVXFKIRUPJUDGHRUTXDOLW\DQGTXDQWLW\WKDWWKHUHDUHUHDVRQDEOHSURVSHFWVIRUHYHQWXDO HFRQRPLFH[WUDFWLRQ7KHORFDWLRQTXDQWLW\JUDGHRUTXDOLW\FRQWLQXLW\DQGRWKHUJHRORJLFDO FKDUDFWHULVWLFVRIDPLQHUDOUHVRXUFHDUHNQRZQHVWLPDWHGRULQWHUSUHWHGIURPVSHFLILFJHRORJLFDO HYLGHQFHDQGNQRZOHGJHLQFOXGLQJVDPSOLQJ $Q³LQIHUUHGPLQHUDOUHVRXUFH´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³LQGLFDWHGPLQHUDOUHVRXUFH´LVWKDWSDUWRIDPLQHUDOUHVRXUFHIRUZKLFKTXDQWLW\JUDGHRUTXDOLW\ GHQVLWLHVVKDSHDQGSK\VLFDOFKDUDFWHULVWLFVDUHHVWLPDWHGZLWKVXIILFLHQWFRQILGHQFHWRDOORZWKH DSSOLFDWLRQRIPRGLI\LQJIDFWRUVLQVXIILFLHQWGHWDLOWRVXSSRUWPLQHSODQQLQJDQGHYDOXDWLRQRIWKH HFRQRPLFYLDELOLW\RIWKHGHSRVLW*HRORJLFDOHYLGHQFHLVGHULYHGIURPDGHTXDWHO\GHWDLOHGDQGUHOLDEOH H[SORUDWLRQVDPSOLQJDQGWHVWLQJDQGLVVXIILFLHQWWRDVVXPHJHRORJLFDODQGJUDGHRUTXDOLW\FRQWLQXLW\ EHWZHHQSRLQWVRIREVHUYDWLRQ$QLQGLFDWHGPLQHUDOUHVRXUFHKDVDORZHUOHYHORIFRQILGHQFHWKDQWKDW DSSO\LQJWRDPHDVXUHGPLQHUDOUHVRXUFHDQGPD\RQO\EHFRQYHUWHGWRDSUREDEOHPLQHUDOUHVHUYH 0LQHUDOL]DWLRQPD\EHFODVVLILHGDVDQLQGLFDWHGPLQHUDOUHVRXUFHE\WKHTXDOLILHGSHUVRQZKHQWKH QDWXUHTXDOLW\TXDQWLW\DQGGLVWULEXWLRQRIGDWDDUHVXFKDVWRDOORZFRQILGHQWLQWHUSUHWDWLRQRIWKH JHRORJLFDOIUDPHZRUNDQGWRUHDVRQDEO\DVVXPHWKHFRQWLQXLW\RIPLQHUDOL]DWLRQ$QLQGLFDWHGPLQHUDO

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

UHVRXUFHHVWLPDWHLVRIVXIILFLHQWTXDOLW\WRVXSSRUWDSUHIHDVLELOLW\VWXG\ZKLFKFDQVHUYHDVWKHEDVLVIRU PDMRUGHYHORSPHQWGHFLVLRQV $³PHDVXUHGPLQHUDOUHVRXUFH´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³PLQHUDOUHVHUYH´LVWKHHFRQRPLFDOO\PLQHDEOHSDUWRIDPHDVXUHGDQGRULQGLFDWHGPLQHUDOUHVRXUFH ,WLQFOXGHVGLOXWLQJPDWHULDOVDQGDOORZDQFHVIRUORVVHVZKLFKPD\RFFXUZKHQWKHPDWHULDOLVPLQHGRU H[WUDFWHGDQGLVGHILQHGE\VWXGLHVDWSUHIHDVLELOLW\RUIHDVLELOLW\OHYHODVDSSURSULDWHWKDWLQFOXGH DSSOLFDWLRQRIPRGLI\LQJIDFWRUV7KHVHVWXGLHVGHPRQVWUDWHWKDWDWWKHWLPHRIUHSRUWLQJH[WUDFWLRQFRXOG UHDVRQDEO\EHMXVWLILHG $³SUREDEOHPLQHUDOUHVHUYH´LVWKHHFRQRPLFDOO\PLQHDEOHSDUWRIDQLQGLFDWHGDQGLQVRPH FLUFXPVWDQFHVDPHDVXUHGPLQHUDOUHVRXUFH7KHFRQILGHQFHLQWKHPRGLI\LQJIDFWRUVDSSO\LQJWRD SUREDEOHPLQHUDOUHVHUYHLVORZHUWKDQWKDWDSSO\LQJWRDSURYHQPLQHUDOUHVHUYH $³SURYHQPLQHUDOUHVHUYH´LVWKHHFRQRPLFDOO\PLQHDEOHSDUWRIDPHDVXUHGPLQHUDOUHVRXUFH$SURYHQ PLQHUDOUHVHUYHLPSOLHVDKLJKGHJUHHRIFRQILGHQFHLQWKHPRGLI\LQJIDFWRUV

0(7+2'2/2*,(6$1'$668037,216

0LQHUDOUHVHUYHDQGPLQHUDOUHVRXUFHHVWLPDWHVDUHEDVHGRQYDULRXVDVVXPSWLRQVUHODWLQJWRRSHUDWLQJ PDWWHUVLQFOXGLQJZLWKUHVSHFWWRSURGXFWLRQFRVWVPLQLQJDQGSURFHVVLQJUHFRYHULHVPLQLQJGLOXWLRQFXW RIIYDOXHVRUJUDGHVDVZHOODVDVVXPSWLRQVUHODWLQJWRORQJWHUPFRPPRGLW\SULFHVDQGLQVRPHFDVHV H[FKDQJHUDWHV&RVWHVWLPDWHVDUHEDVHGRQIHDVLELOLW\VWXG\HVWLPDWHVRURSHUDWLQJKLVWRU\ 0HWKRGRORJLHVXVHGLQUHVHUYHDQGUHVRXUFHHVWLPDWHVYDU\IURPSURSHUW\WRSURSHUW\GHSHQGLQJRQWKH VW\OHRIPLQHUDOL]DWLRQJHRORJ\DQGRWKHUIDFWRUV*HRVWDWLVWLFDOPHWKRGVDSSURSULDWHWRWKHVW\OHRI PLQHUDOL]DWLRQKDYHEHHQXVHGLQWKHHVWLPDWLRQRIUHVHUYHVDW7HFN¶VPDWHULDOEDVHPHWDOSURSHUWLHV $VVXPHGPHWDOSULFHVYDU\IURPSURSHUW\WRSURSHUW\IRUDQXPEHURIUHDVRQV7HFNKDVLQWHUHVWVLQD QXPEHURIMRLQWYHQWXUHVIRUZKLFKDVVXPHGPHWDOSULFHVDUHDMRLQWYHQWXUHGHFLVLRQ,QFHUWDLQFDVHV DVVXPHGPHWDOSULFHVDUHKLVWRULFDODVVXPSWLRQVPDGHDWWKHWLPHRIWKHUHOHYDQWUHVHUYHDQGUHVRXUFH HVWLPDWHV)RURSHUDWLRQVZLWKVKRUWUHPDLQLQJOLYHVDVVXPHGPHWDOSULFHVPD\UHIOHFWVKRUWHUWHUP FRPPRGLW\SULFHIRUHFDVWV 

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

&200(17621,1',9,'8$/23(5$7,216

Highland Valley Copper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

Antamina 2SHQSLWUHVHUYHHVWLPDWHVZHUHSUHSDUHGDVVXPLQJORQJWHUPPHWDOSULFHVRI86OEFRSSHU 86OE]LQF86OEPRO\EGHQXPDQG86R]VLOYHU2SHQSLWDQGXQGHUJURXQGUHVRXUFH HVWLPDWHVZHUHSUHSDUHGDVVXPLQJORQJWHUPPHWDOSULFHVRI86OEFRSSHU86OE]LQF 86OEPRO\EGHQXPDQG86R]VLOYHU &XWRIIJUDGHVDW$QWDPLQDDUHEDVHGRQWKHQHWYDOXHEHIRUHWD[HVWKDWWKHUHOHYDQWPDWHULDOLVH[SHFWHG WRJHQHUDWHSHUKRXURIFRQFHQWUDWRURSHUDWLRQDWDVVXPHGSULFHVDQGYDULHVE\\HDULQDQHIIRUWWR PD[LPL]HWKHQHWSUHVHQWYDOXHRIWKHSLW

Quebrada Blanca 6XSHUJHQHUHVHUYHVZHUHIXOO\GHSOHWHGLQDQGRQO\PLQHUDOUHVRXUFHVDUHEHLQJUHSRUWHG7KH 4XHEUDGD%ODQFD K\SRJHQH UHVHUYHDQGUHVRXUFHHVWLPDWHVZHUHSUHSDUHGDVVXPLQJDORQJWHUP FRSSHUSULFHRI86OEDQGDORQJWHUPPRO\EGHQXPSULFHRI86OE 7KHK\SRJHQHPLQHUDOUHVHUYHVUHPDLQDWELOOLRQWRQQHVDQGDUHOLPLWHGE\WKHFXUUHQWWDLOLQJVVWRUDJH FDSDFLW\2QJRLQJLQILOODQGUHVRXUFHGHOLQHDWLRQGULOOLQJFRQWLQXHVWRLPSURYHFRQILGHQFHLQUHVRXUFH FDWHJRULHVDQGLQFUHDVHWKHUHVRXUFHEDVH*HRORJLFDOPRGHOVZHUHXSGDWHGWRLQFOXGHDQG GULOOLQJUHVXOWVWKHFXUUHQWPRGHOUHSRUWVDLQFUHDVHLQUHVRXUFHVIURPWRWDOOLQJELOOLRQ WRQQHVRIPHDVXUHGDQGLQGLFDWHGUHVRXUFHVDQGDQRWKHUELOOLRQWRQQHVRILQIHUUHGUHVRXUFHV

Carmen de Andacollo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

NuevaUnión 7HFNKDVDLQWHUHVWLQ1XHYD8QLyQ5HVHUYHVDQGUHVRXUFHVIRU1XHYD8QLyQDUHLQUHVSHFWRIWZR GHSRVLWV5HOLQFKRDQG/D)RUWXQD5HVHUYHVDWWKHGHSRVLWVFRQVLGHUDEXONRSHQSLWPLQLQJRSHUDWLRQ 7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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

Red Dog 7HFNUHSRUWVUHVHUYHVDQGUHVRXUFHVIRU5HG'RJGLYLGHGLQWRWZRUHSRUWLQJJURXSVEDVHGRQWKHVSDWLDO SUR[LPLW\DQGWKHODQGRZQHUVKLSDVVRFLDWHGZLWKWKHGHSRVLWVLQDQGDURXQG5HG'RJ7KHQDPHV DVVLJQHGWRWKHVHJURXSVDUH³0LQH´DQG³'LVWULFW´ ,QWKH³0LQH´JURXS7HFNLVFXUUHQWO\RSHUDWLQJWZRGHSRVLWVDFFHVVLEOHE\RSHQSLWPLQLQJ$TTDOXNDQG 4DQDL\DT7KH$TTDOXNGHSRVLWZLWKILUVWRUHPLOOHGLQ$XJXVWKDVKDGLWVRSHUDWLRQVH[WHQGHGWR 0LQLQJRIWKH4DQDL\DTGHSRVLWVWDUWHGZLWKILUVWRUHPLOOHGLQ-DQXDU\DQGLVSODQQHGWR FRQWLQXHWKURXJK7KH5HG'RJ0LQHDUHDDOVRFRQWDLQVWKHXQGHYHORSHG3DDODDTGHSRVLWZKLFKLV FXUUHQWO\RQO\GHILQHGWRDUHVRXUFHOHYHORIFRQILGHQFH $OOUHVHUYHDQGUHVRXUFHVZHUHHVWLPDWHGDVVXPLQJORQJWHUPPHWDOSULFHV86OE]LQF86OE OHDGDQG86R]VLOYHU 7KH³'LVWULFW´JURXSFRQVLVWVHQWLUHO\RI,QIHUUHGUHVRXUFHVIURPWKH$QDUUDDTGHSRVLWZKLFKOLHV DSSUR[LPDWHO\NLORPHWUHVQRUWKZHVWRIWKHFXUUHQW5HG'RJRSHUDWLRQV,QIHUUHGUHVRXUFHVIRUWKLV GHSRVLWDUHXQFKDQJHGIURPDWPLOOLRQWRQQHV

Pend Oreille 7KHRSHUDWLRQLVLQFDUHDQGPDLQWHQDQFHDQGWKHUHPDLQLQJPLQHUDOUHVHUYHVZHUHUHFODVVLILHGEDFNDV UHVRXUFHV7KHUHSRUWHGUHVRXUFHHVWLPDWHLVXQFKDQJHGIURP 7KHUHVRXUFHVIRU3HQG2UHLOOHDUHHVWLPDWHGXVLQJD]LQFFXWRII5HFRYHU\LVH[SHFWHGDW IRU]LQFDQGIRUOHDG&RPPRGLW\SULFHDVVXPSWLRQVZHUH86OE]LQFDQG86OEIRUOHDG

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

San Nicolás HVWLPDWHVIRU6DQ1LFROiVLQFOXGHPDLGHQUHVHUYHVUHSRUWHGIRUWKHGHSRVLW7KHHVWLPDWHVDVVXPH GLIIHUHQWQHWVPHOWHUUHWXUQFXWRIIVIRUORZ]LQFFRSSHURUHVDQGKLJK]LQFFRSSHURUHVUHVSHFWLYHO\RI 86SHUWRQQHDQG86WRQQHQHWVPHOWHUUHWXUQEDVHGRQDQHVWLPDWHRIWKHPDUJLQDOFRVWRI SURGXFWLRQIRUWKHUHOHYDQWRUH1HWVPHOWHUUHWXUQFDOFXODWLRQVDVVXPH86OEFRSSHU86OE ]LQF86R]JROGDQG86R]VLOYHUDQGVFDOHGFRVWVIURPSUHYLRXVVWXGLHV

Galore Creek 7HFNKDVDLQWHUHVWLQ*DORUH&UHHNUHSRUWHGUHVRXUFHVDUHXQFKDQJHGIURPUHSRUWHG UHVRXUFHVDQGDUHHVWLPDWHGDVVXPLQJ86OEFRSSHU86R]JROGDQG86R]VLOYHU DQGD86WRQQHQHWVPHOWHUUHWXUQFXWRII

Schaft Creek UHSRUWHGUHVRXUFHVDUHXQFKDQJHGIURP2SHQSLWPLQHUDOUHVRXUFHVDUHUHSRUWHGDWDQHW VPHOWHUUHWXUQFXWRIIRI86WRQQHDQGFRQVWUDLQHGE\DFRQFHSWXDORSHQSLWVKDSH

Mesaba UHSRUWHGUHVRXUFHVDUHXQFKDQJHGIURPUHSRUWHGUHVRXUFHV7KHHVWLPDWHVDUHEDVHGDWDFXW RIIRIFRSSHUHTXLYDOHQWWRDQHWVPHOWHUUHWXUQFXWRIIRI86WRQDQGDVVXPH86OE FRSSHU8OEQLFNHO86R]VLOYHU86FREDOW86R]JROG86R] SODWLQXPDQG86R]SDOODGLXP

Zafranal UHSRUWHGUHVHUYHVDQGUHVRXUFHVDUHXQFKDQJHGIURPUHSRUWHGUHVHUYHVDQGUHVRXUFHV 5HVRXUFHDQGUHVHUYHVHVWLPDWHVDW=DIUDQDOZHUHSUHSDUHGDVVXPLQJ86OEFRSSHUDQG 86R]JROG7KHWRWDOFRQWDLQHGPHWDOXVHGLQWKHUHVHUYHVWDEOHDUHEDVHGRQYDULDEOH PHWDOOXUJLFDOUHFRYHULHVRIXSWRIRUFRSSHUDQGXSWRIRUJROG2SHQSLWPLQHUDOUHVHUYHVDUH UHSRUWHGXVLQJDYDULDEOHQHWVPHOWHUUHWXUQFXWRIIRI86WRWRQQHDYHUDJLQJ86WRQQH

Fording River 7KHUHVHUYHHFRQRPLFVDVVXPHDORQJWHUPVHOOLQJSULFHDWWKH3RUWRI9DQFRXYHURI86WRQQHIRU PHWDOOXUJLFDOFRDODWDQH[FKDQJHUDWHRI&$'SHU86

Elkview 7HFNKDVDLQWHUHVWLQWKH(ONYLHZPLQH7KHUHVHUYHHFRQRPLFVDVVXPHDORQJWHUPVHOOLQJSULFHDW WKH3RUWRI9DQFRXYHURI86WRQQHIRUPHWDOOXUJLFDOFRDODWDQH[FKDQJHUDWHRI&$'SHU 86

Greenhills 7HFNLVDQSDUWQHULQWKH*UHHQKLOOVMRLQWYHQWXUH7KHUHVHUYHHFRQRPLFVDVVXPHDORQJWHUP VHOOLQJSULFHDWWKH3RUWRI9DQFRXYHURI86WRQQHIRUPHWDOOXUJLFDOFRDODWDQH[FKDQJHUDWHRI &$'SHU86

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

Line Creek 7KHUHVHUYHHFRQRPLFVDVVXPHDORQJWHUPVHOOLQJSULFHDWWKH3RUWRI9DQFRXYHURI86WRQQHIRU PHWDOOXUJLFDOFRDODQG86WRQQHIRU3&,FRDODWDQH[FKDQJHUDWHRI&$'SHU86

Quintette (Mt. Babcock) 7KHUHVHUYHHFRQRPLFVDVVXPHDORQJWHUPVHOOLQJSULFHRI86WRQQHIRUPHWDOOXUJLFDOFRDODQG 86IRUR[LGHFRDODWDQH[FKDQJHUDWHRI&$'SHU86

5,6.6$1'81&(57$,17,(6

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³Description of the Business´DQG“Health, Safety, Community and Environmental Protection´DQG³Risk Factors — We face risks associated with the issuance and renewal of permits´

48$/,),('3(56216

(VWLPDWHVRIPLQHUDOUHVHUYHVDQGUHVRXUFHVIRURXUEDVHPHWDOSURSHUWLHVKDYHEHHQSUHSDUHGXQGHUWKH JHQHUDOVXSHUYLVLRQRI5RGULJR0DULQKR3*HRZKRLVDQHPSOR\HHRI7HFN5HVRXUFHV/LPLWHGDQGWKH 4XDOLILHG3HUVRQIRUWKHSXUSRVHVRI1,IRURXUEDVHPHWDOSURSHUWLHV RWKHUWKDQ$QWDPLQD  0LQHUDOUHVHUYHDQGUHVRXUFHHVWLPDWHVIRU$QWDPLQDKDYHEHHQSUHSDUHGXQGHUWKHVXSHUYLVLRQRI )HUQDQGR$QJHOHV3(QJDQG/XFLR&DQFKLVZKRLVDQ60(5HJLVWHUHG0HPEHUDQGZKRDUHERWK HPSOR\HHVRI&RPSDxtD0LQHUD$QWDPLQD6$0HVVUV&DQFKLVDQG$QJHOHVDUHWKH4XDOLILHG3HUVRQV IRUWKHSXUSRVHVRI1,LQUHVSHFWRI$QWDPLQD5HVHUYHDQGUHVRXUFHHVWLPDWHVIRUFRDOSURSHUWLHV ZHUHSUHSDUHGXQGHUWKHJHQHUDOVXSHUYLVLRQRI-R$QQD6LQJOHWRQ3*HRDQG5RELQ*ROG3(QJ HPSOR\HHVRI7HFN&RDO/LPLWHGZKRDUHWKH4XDOLILHG3HUVRQVIRUFRDOSURSHUWLHVIRUWKHSXUSRVHVRI1, ±

2LODQG*DV5HVHUYHV

7KHUHVHUYHVLQIRUPDWLRQVHWRXWEHORZIRUWKH)RUW+LOOVPLQHLVEDVHGXSRQHYDOXDWLRQVFRQGXFWHGE\ */-DQLQGHSHQGHQWTXDOLILHGUHVHUYHVHYDOXDWRU 7KHHIIHFWLYHGDWHRIWKHUHVHUYHVGDWDDQGRWKHURLODQGJDVLQIRUPDWLRQEHORZIRU)RUW+LOOVLV'HFHPEHU (VWLPDWHVRIUHVHUYHVDQGSURMHFWLRQVRISURGXFWLRQZHUHSUHSDUHGE\*/-XVLQJLQIRUPDWLRQ SURYLGHGXSWR1RYHPEHU7KHUHVHUYHVLQIRUPDWLRQVHWRXWEHORZIRU)RUW+LOOVLVWDNHQIURPD

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

UHSRUWSUHSDUHGE\*/-WKHSUHSDUDWLRQGDWHRIWKHLQIRUPDWLRQLV-DQXDU\$OOUHVHUYHV LQIRUPDWLRQLQWKLVVHFWLRQLVEDVHGRQ7HFN¶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

5(6(59(&$7(*25,(6

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¶VUHVHUYHVDUHFXUUHQWO\FDWHJRUL]HGDVGHYHORSHGUHVHUYHVVLQFH)RUW+LOOVLV QRZLQRSHUDWLRQ8QGHYHORSHGUHVHUYHVDUHWKRVHUHVHUYHVH[SHFWHGWREHUHFRYHUHGIURPNQRZQ DFFXPXODWLRQVZKHUHDVLJQLILFDQWH[SHQGLWXUH HJFRQVWUXFWLRQRIDSULPDU\H[WUDFWLRQIDFLOLW\ LV UHTXLUHGDQGWKHQHFHVVDU\HTXLSPHQWLVQRW\HWLQVWDOOHGWRUHQGHUWKHPFDSDEOHRISURGXFWLRQ

)257+,//60,1(

7KHUHVHUYHVGDWDSUHVHQWHGEHORZVXPPDUL]HVRXU3URYHGDQG3UREDEOHUHVHUYHVDQGWKHQHWSUHVHQW YDOXHVRIIXWXUHQHWUHYHQXHIRUWKHVHUHVHUYHV7KHUHVHUYHVGDWDXVHVIRUHFDVWSULFHVDQGFRVWVSULRUWR SURYLVLRQIRUDQGWKHUHIRUHGRQRWWDNHLQWRDFFRXQWLQWHUHVWJHQHUDODQGDGPLQLVWUDWLYHH[SHQVHVRUWKH LPSDFWRIDQ\KHGJLQJDFWLYLWLHV,QDGGLWLRQSURYLVLRQVIRUWKHDEDQGRQPHQWDQGUHFODPDWLRQRIWKHPLQHV DQGDVVRFLDWHGIDFLOLWLHVWRZKLFKUHVHUYHVKDYHEHHQDVVLJQHGKDYHEHHQLQFOXGHGDOORWKHU DEDQGRQPHQWDQGUHFODPDWLRQFRVWVKDYHQRWEHHQLQFOXGHG7KHVHIRUHFDVWVDQGRWKHUDVVXPSWLRQVDUH WDNHQIURPWKH*/-HYDOXDWLRQUHSRUWZLWKDQHIIHFWLYHGDWHRI'HFHPEHU)XWXUHQHWUHYHQXHV KDYHEHHQSUHVHQWHGRQDEHIRUHDQGDIWHUWD[EDVLVLQDFFRUGDQFHZLWK1DWLRQDO,QVWUXPHQW 7KHIXWXUHQHWUHYHQXHGHYHORSPHQWDQGRSHUDWLQJFRVWH[FKDQJHUDWHSULFHDQGRWKHUDVVXPSWLRQVVHW RXWLQWKLV³Description of the Business ʊ Oil and Gas Reserves ʊ Fort Hills Mine´VHFWLRQRIWKLV$QQXDO ,QIRUPDWLRQ)RUPDUHWKHHVWLPDWHVRUDVVXPSWLRQVRI*/-RXULQGHSHQGHQWUHVHUYHVHYDOXDWRU,QRUGHU WRHVWLPDWHUHVHUYHVDQGIXWXUHQHWUHYHQXHV*/-PDNHVDQXPEHURIDVVXPSWLRQVLQFOXGLQJ DVVXPSWLRQVUHJDUGLQJLQIODWLRQUDWHVFXUUHQF\H[FKDQJHUDWHVDQGSULFHVIRURLODQGRWKHUSURGXFWV)RU SODQQLQJSURMHFWHFRQRPLFVIRUHFDVWVDFFRXQWLQJDQGRWKHUSXUSRVHVRXUPDQDJHPHQWPDNHV DVVXPSWLRQVUHJDUGLQJWKRVHVDPHIDFWRUVDQGRXUDVVXPSWLRQVJHQHUDOO\GLIIHUIURPWKRVHRI*/-

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

'LIIHUHQWDVVXPSWLRQVZRXOGOHDGWRGLIIHUHQWSUHVHQWYDOXHDQGQHWUHYHQXHILJXUHVDQGFRXOGDIIHFW UHVHUYHHVWLPDWHV */-HVWLPDWHVRIFDSLWDODQGRSHUDWLQJFRVWVDVVRFLDWHGZLWK)RUW+LOOVDUHEDVHGRQKLVWRULFDOFRVWVDQG 6XQFRU¶VHVWLPDWHVDVRSHUDWRURIIXWXUHFRVWVZLWKFRQVLGHUDWLRQWRWKRVHDFKLHYHGE\RWKHURLOVDQGV PLQLQJSURMHFWV7KHVH*/-HVWLPDWHGFRVWVGLIIHUVRPHZKDWIURPWKRVHWKDWWKH)RUW+LOOVSDUWQHUVXVH IRUSODQQLQJDQGGHFLVLRQPDNLQJIRUWKHSURMHFWZKLFKDUHEDVHGRQGHWDLOHGHQJLQHHULQJVWXGLHV6HH ³Description of the Business ʊ Individual Operations ʊ Energy ʊ Fort Hills Mine´IRUDIXUWKHU GHVFULSWLRQRI7HFN¶VHVWLPDWHVUHJDUGLQJFRVWV $OORIRXUUHVHUYHVDUHDVVRFLDWHGZLWK)RUW+LOOV%LWXPHQLVWKHRQO\SURGXFWW\SHDVVRFLDWHGZLWKRXU UHVHUYHV5HVHUYHVDUHSUHVHQWHGRQDJURVVDQGQHWEDVLV³*URVV´LQUHODWLRQWR7HFN¶VLQWHUHVWLQ UHVHUYHVPHDQV7HFN¶VZRUNLQJLQWHUHVWDVDW'HFHPEHU  VKDUHEHIRUHGHGXFWLRQRI UR\DOWLHV³1HW´LQUHODWLRQWR7HFN¶VLQWHUHVWLQUHVHUYHVPHDQV7HFN¶VZRUNLQJLQWHUHVWDVDW'HFHPEHU   VKDUHDIWHUGHGXFWLRQRIUR\DOWLHV

6XPPDU\RI2LODQG*DV5HVHUYHVDW'HFHPEHU IRUHFDVWSULFHVDQGFRVWV 

LQPLOOLRQVRIEDUUHOV  5HVHUYHV

%LWXPHQ 5HVHUYHV&DWHJRU\ *URVV 1HW

3URYHG5HVHUYHV 

'HYHORSHG3URGXFLQJ  

'HYHORSHG1RQSURGXFLQJ  

8QGHYHORSHG  

7RWDO3URYHG5HVHUYHV  

3UREDEOH5HVHUYHV  

7RWDO3URYHGSOXV3UREDEOH5HVHUYHV   

 

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

6XPPDU\RI1HW3UHVHQW9DOXHRI)XWXUH1HW5HYHQXHDW'HFHPEHU IRUHFDVWSULFHVDQG FRVWV  7KHQHWSUHVHQWYDOXHRIIXWXUHQHWUHYHQXHVEHORZLQUHVSHFWRI7HFN¶VLQWHUHVWLQ)RUW+LOOVZHUH FRPSXWHGE\DSSO\LQJDQDYHUDJHSULFHIRUHFDVWEDVHGRQIRUHFDVWVIURPWKUHHTXDOLILHGUHVHUYHV HYDOXDWRUV LQFOXGLQJ*/- */-¶VIRUHFDVWFRVWVDVGHVFULEHGEHORZOHJLVODWHGWD[UDWHVDQG7HFN¶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

 1HW3UHVHQW9DOXHRI)XWXUH1HW5HYHQXH

%HIRUH,QFRPH7D[HV $IWHU,QFRPH7D[HV 8QLW 5HVHUYHV 'LVFRXQWHGDW \HDU  'LVFRXQWHGDW \HDU  YDOXH &DWHJRU\ PLOOLRQV  PLOOLRQV  EEO            

3URYHG5HVHUYHV

'HYHORSHG            3URGXFLQJ

'HYHORSHG            1RQSURGXFLQJ

8QGHYHORSHG           

7RWDO3URYHG            5HVHUYHV

7RWDO3UREDEOH            5HVHUYHV

7RWDO3URYHG            SOXV3UREDEOH 5HVHUYHV  8QLWYDOXHVDUHIXWXUHQHWUHYHQXHVEHIRUHGHGXFWLQJHVWLPDWHGFDVKLQFRPHWD[HVSD\DEOHGLVFRXQWHGDWXVLQJQHW UHVHUYHV  

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

7RWDO)XWXUH1HW5HYHQXHDVDW'HFHPEHU XQGLVFRXQWHG  IRUHFDVWSULFHVDQGFRVWV  7KHIXWXUHQHWUHYHQXHVEHORZLQUHVSHFWRI7HFN¶VLQWHUHVWLQ)RUW+LOOVZHUHFRPSXWHGE\DSSO\LQJDQ DYHUDJHSULFHIRUHFDVWEDVHGRQIRUHFDVWVIURPWKUHHTXDOLILHGUHVHUYHVHYDOXDWRUV LQFOXGLQJ*/- */-¶V IRUHFDVWFRVWVDVGHVFULEHGEHORZOHJLVODWHGWD[UDWHVDQG7HFN¶VWD[SRROV7KHHVWLPDWHVRIIXWXUHQHW UHYHQXHGRQRWQHFHVVDULO\SURYLGHDUHOLDEOHHVWLPDWHRIWKHH[SHFWHGIXWXUHFDVKIORZVWREHREWDLQHG IURPRXUVKDUHRIWKH)RUW+LOOVUHVHUYHVDQGGRQRWQHFHVVDULO\UHSUHVHQWWKHIDLUPDUNHWYDOXHRIRXU SURYHGDQGSUREDEOHRLOUHVHUYHV7KHFDSLWDODQGRSHUDWLQJFRVWVEHORZUHIOHFW*/-¶VHVWLPDWHVDQGGLIIHU IURPWKRVHWKDWWKH)RUW+LOOVSDUWQHUVXVHIRUSODQQLQJDQGGHFLVLRQPDNLQJIRUWKHSURMHFWZKLFKDUH EDVHGRQGHWDLOHGHQJLQHHULQJVWXGLHVDQGKLVWRULFDOFRVWGDWD6HH³Description of the Business ʊ Individual Operations ʊ Energy ʊ Fort Hills Mine´IRUDIXUWKHUGHVFULSWLRQRI7HFN¶VSURMHFWLRQV UHJDUGLQJFRVWV

)XWXUH )XWXUHQHW $EDQGRQ QHW &DSLWDO UHYHQXH LQPLOOLRQV  2SHUDWLQJ PHQWDQG UHYHQXH ,QFRPH 5HYHQXH 5R\DOWLHV 'HYHORSPHQW DIWHU XQGLVFRXQWHG  &RVWV 5HFODPDW EHIRUH WD[HV &RVWV LQFRPH LRQ&RVWV LQFRPH WD[HV WD[HV

5HVHUYHV    &DWHJRU\

3URYHG       ²  3URGXFLQJ

3URYHG       ² ² 'HYHORSHG 1RQSURGXFLQJ

3URYHG       ² ² 8QGHYHORSHG

7RWDO3URYHG       ² 

7RWDO3UREDEOH        

7RWDO3URYHG         3OXV3UREDEOH 5HVHUYHV 

)XWXUH1HW5HYHQXHE\3URGXFW7\SHDW'HFHPEHU DWIRUHFDVWSULFHVDQGFRVW 

5HVHUYHV&DWHJRU\ 3URGXFWLRQ )XWXUH1HW5HYHQXH%HIRUH,QFRPH7D[HV   JURXS GLVFRXQWHGDW\HDU 

PLOOLRQV  EEO 

3URYHG3URGXFLQJ %LWXPHQ  

7RWDO3URYHG %LWXPHQ   7RWDO3URYHG3OXV3UREDEOH %LWXPHQ   5HVHUYHV   8QLWYDOXHVDUHEDVHGRQ7HFN¶VQHWUHVHUYHV  

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

6XPPDU\RI)RUHFDVW3ULFHV8VHGLQ(VWLPDWHV 7KHGHWHUPLQDWLRQRIUHVHUYHVUHTXLUHVDVVXPSWLRQVRIFUXGHRLOQDWXUDOJDVDQGRWKHULPSRUWDQW EHQFKPDUNUHIHUHQFHSULFHVDVZHOODVLQIODWLRQDQGH[FKDQJHUDWHV7KHIRUHFDVWSULFHVXVHGLQ SUHSDULQJ7HFN¶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¶VPDQDJHPHQWRUWKH)RUW +LOOVSDUWQHUV7KHIRUHFDVWSULFHDQGRWKHUDVVXPSWLRQVQRWHGEHORZDUHQRWXVHGLQ7HFN¶VLQYHVWPHQW RUPDQDJHPHQWGHFLVLRQVRUIRU7HFN¶VDFFRXQWLQJSXUSRVHV

      

     

    

    

    

    

    

    

    

    

    

    

     

    

    

    

  \U \U \U   3ULFHXVHGZKHQGHWHUPLQLQJWKHFRVWRIGLOXHQWDVVRFLDWHGZLWKELWXPHQUHVHUYHV$VVXPHGGLOXHQWSULFHVHTXDOWKHSRVWHG SHQWDQHVSULFHVOHVVDGLVFRXQWRI&$'EEO GROODUV    3ULFLQJIRUUHIOHFWV7HFN¶VKLVWRULFDOZHLJKWHGDYHUDJHSULFHV   */-KDVLQFOXGHGDLQIODWLRQUDWHIURPRQZDUGV 

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

5HFRQFLOLDWLRQRI&KDQJHVLQ5HVHUYHV 1DWLRQDO,QVWUXPHQWUHTXLUHVDUHSRUWLQJLVVXHUWRGLVFORVHFKDQJHVEHWZHHQWKHUHVHUYHV HVWLPDWHVDVDWWKHHIIHFWLYHGDWHDQGWKHFRUUHVSRQGLQJHVWLPDWHVPDGHDVDWWKHODVWGD\RIWKH SUHFHGLQJILQDQFLDO\HDURIWKHUHSRUWLQJLVVXHU

 7RWDO2LO5HVHUYHV LQPLOOLRQVRIEDUUHOV  %LWXPHQ &RPSDQ\*URVV  3URYHG 3UREDEOH 3URYHG3OXV3UREDEOH

$W'HFHPEHU   

3URGXFWLRQ     

$FTXLVLWLRQV   

5HYLVLRQV    

$W'HFHPEHU    

$GGLWLRQDO,QIRUPDWLRQ5HODWLQJWR5HVHUYHV'DWD $OORI7HFN¶V3URYHGDQG3UREDEOHXQGHYHORSHGUHVHUYHVUHODWHWR)RUW+LOOVDQGZHUHILUVWDWWULEXWHGWR 7HFNLQZLWKDGGLWLRQDODPRXQWVDWWULEXWHGWR7HFNLQVROHO\GXHWR7HFN¶VLQFUHDVHG RZQHUVKLSLQWHUHVWLQ)RUW+LOOV2Q2FWREHUWKHFRRZQHUVRI)RUW+LOOVDQQRXQFHGSURMHFW VDQFWLRQ7KHSODQWEHJDQSURGXFLQJOLPLWHGTXDQWLWLHVRIDELWXPHQIURWKSURGXFWLQWKHIRXUWKTXDUWHURI IROORZHGE\WKHILUVWRLOPLOHVWRQHRQ-DQXDU\ZKHQWKHVHFRQGDU\H[WUDFWLRQSODQWEHJDQ RSHUDWLQJ8QGHYHORSHGUHVHUYHVZHUHUHFDWHJRUL]HGDVGHYHORSHGSURGXFLQJUHVHUYHVIROORZLQJ FRPPHUFLDOVDOHVRIELWXPHQLQ

*URVV8QGHYHORSHG5HVHUYHV(IIHFWLYH'HFHPEHU

LQPLOOLRQVRIEDUUHOV  %LWXPHQ &RPSDQ\*URVV  3URYHG 3UREDEOH

)LUVW$WWULEXWHG 7RWDODW

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

)XWXUH'HYHORSPHQW&RVWV 7KHWDEOHEHORZSURYLGHVWKHGHYHORSPHQWFRVWV*/-KDVHVWLPDWHGDQGDVVXPHGDUHWREHLQFXUUHGIRU SXUSRVHVRIWKHHVWLPDWLRQRIWKHIXWXUHQHWUHYHQXHDWWULEXWDEOHWRWKHUHVHUYHV7KH*/-IXWXUH GHYHORSPHQWFRVWVVHWRXWEHORZGLIIHUIURPWKRVHWKDWWKH)RUW+LOOVSDUWQHUVXVHIRUFRQVWUXFWLRQ SODQQLQJDQGGHFLVLRQPDNLQJIRUWKHSURMHFWZKLFKDUHEDVHGRQGHWDLOHGHQJLQHHULQJVWXGLHVDQG KLVWRULFDOFRVWGDWD6HH³Description of the Business ʊ Individual Operations ʊ Energy ʊ Fort Hills Mine´IRUDIXUWKHUGHVFULSWLRQRI7HFN¶VSURMHFWLRQVUHJDUGLQJGHYHORSPHQWFRVWV

5HVHUYHV      5HPDLQGHU 7RWDO 7RWDO  &DWHJRU\ GLVFRXQWHG  WKRXVDQGV 

7RWDO3URYHG        

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

&RVWV,QFXUUHGLQ

 ([SORUDWLRQ 3URYHG3URSHUW\ 8QSURYHG3URSHUW\ 'HYHORSPHQW 7RWDO PLOOLRQV  &RVWV $FTXLVLWLRQ&RVWV $FTXLVLWLRQ&RVWV &RVWV

&DQDGD)RUW+LOOV          5HIOHFWV7HFN¶VLQWHUHVW 

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

3URGXFWLRQ+LVWRU\

)RUW+LOOV 8QLW 4 4 4 4 $YHUDJH

7RWDOELWXPHQSURGXFWLRQ PEEOVG     

%LWXPHQSULFHUHDOL]HG    EEO     

&URZQUR\DOWLHV   EEO               

7UDQVSRUWDWLRQFRVWV   EEO               

$GMXVWHGRSHUDWLQJFRVWV    EEO               

2SHUDWLQJQHWEDFN   EEO                  %LWXPHQSULFHUHDOL]HGUHSUHVHQWVWKHUHDOL]HGSHWUROHXPUHYHQXH EOHQGHGELWXPHQVDOHVUHYHQXH QHWRIGLOXHQWH[SHQVHDQG EHIRUHUR\DOWLHV%OHQGHGELWXPHQVDOHVUHYHQXHUHSUHVHQWVUHYHQXHIURPRXUVKDUHRIWKHKHDY\FUXGHRLOEOHQGNQRZQDV )RUW+LOOV5HGXFHG&DUERQ/LIH&\FOH'LOELW%OHQGVROGDWWKH+DUGLVW\DQG86*XOI&RDVWPDUNHWKXEV)5%LVFRPSULVHGRI ELWXPHQSURGXFHGIURPWKH)RUW+LOOVRLOVDQGVPLQLQJDQGSURFHVVLQJRSHUDWLRQVEOHQGHGZLWKSXUFKDVHGGLOXHQW7KHFRVWRI EOHQGLQJLVDIIHFWHGE\WKHDPRXQWRIGLOXHQWUHTXLUHGDQGWKHFRVWRISXUFKDVLQJWUDQVSRUWLQJDQGEOHQGLQJWKHGLOXHQW$ SRUWLRQRIGLOXHQWH[SHQVHLVHIIHFWLYHO\UHFRYHUHGLQWKHVDOHVSULFHRIWKHEOHQGHGSURGXFW'LOXHQWH[SHQVHLVDOVRDIIHFWHGE\ &DQDGLDQDQG86EHQFKPDUNSULFLQJDQGFKDQJHVLQWKHYDOXHRIWKH&DQDGLDQGROODUUHODWLYHWRWKH86GROODU   2SHUDWLQJQHWEDFN$GMXVWHGRSHUDWLQJFRVWVDQG%LWXPHQSULFHUHDOL]HGDUHQRQ*$$3ILQDQFLDOPHDVXUHV6HH³Non-GAAP Measures´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

Production Estimate */-KDVIRUHFDVW7HFN¶VVKDUHRI)RUW+LOOVSURGXFWLRQIRUWREHEDUUHOVSHUGD\DQG EDUUHOVSHUGD\LQWKHWRWDOSURYHGDQGWKHWRWDOSURYHGSOXVSUREDEOHUHVHUYHVFDWHJRULHVUHVSHFWLYHO\

27+(52,/$1'*$6,1)250$7,21

Tax Horizon %HFDXVHRIDYDLODEOHWD[SRROVZHDUHFXUUHQWO\VKLHOGHGIURPFDVKLQFRPHWD[HVEXWQRWUHVRXUFHWD[HV LQ&DQDGD:HUHPDLQVXEMHFWWRFDVKWD[HVLQIRUHLJQMXULVGLFWLRQV:KHQZHZLOOEHFRPHVXEMHFWWRFDVK LQFRPHWD[HVLQ&DQDGDLVGHSHQGHQWRQDQXPEHURIIDFWRUVLQFOXGLQJEXWQRWOLPLWHGWRWKHSULFHRIWKH FRPPRGLWLHVWKDWRXUYDULRXVEXVLQHVVXQLWVGHDOLQDQGWKHOHYHORIRXUIXWXUHLQYHVWPHQWVLQ&DQDGLDQ RSHUDWLRQV 

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

+HDOWK6DIHW\&RPPXQLW\DQG(QYLURQPHQWDO3URWHFWLRQ

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

+($/7+$1'6$)(7<

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

5(&/$0$7,21$1'&/2685(

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³Risk Factors — We face risks associated with the issuance and renewal of permits´

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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

&/,0$7(&+$1*($1'&$5%2135,&,1*

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¶VFDUERQWD[XQGHUWKHCarbon Tax Act UHPDLQHGDWSHUWRQQHRIFDUERQ GLR[LGHHTXLYDOHQW &2H 7KH%&FDUERQWD[ZDVWRLQFUHDVHE\SHUWRQQHRI&2HSHU\HDUXQWLO UHDFKLQJSHUWRQQHRI&2HDOWKRXJKWKHSODQQHGLQFUHDVHWRSHUWRQQHLQZDVSRVWSRQHG WRGXHWR&29,'%ULWLVK&ROXPELDDOVRFRQWLQXHVWRLPSOHPHQWWKH&OHDQ%&3URJUDPIRU ,QGXVWU\WRDGGUHVVLPSDFWVWRHPLVVLRQVLQWHQVLYHWUDGHH[SRVHGLQGXVWULHVWRHQVXUHWKDW%& RSHUDWLRQVPDLQWDLQWKHLUFRPSHWLWLYHQHVVDQGWKDWFDUERQOHDNDJHLVDYRLGHG

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

$OEHUWD¶VTechnology Innovation and Emissions Reduction 7,(5 V\VWHPFDPHLQWRIRUFHRQ-DQXDU\ 7KHV\VWHPLPSOHPHQWVFDUERQSULFLQJIRUODUJHLQGXVWULDOIDFLOLWLHVLQ$OEHUWDZLWK&2HHPLVVLRQV LQH[FHVVRIWRQQHVSHU\HDUZKLFKLQFOXGHVRXU)RUW+LOOVPLQH/DUJHLQGXVWULDOHPLWWHUVDUH UHTXLUHGWRUHGXFHHPLVVLRQVE\LQZLWKDIXUWKHUUHGXFWLRQSHU\HDUWKHUHDIWHUDQG HPLVVLRQVDERYHWKHWDUJHWZLOOEHDVVHVVHGDWWKHWKHQSUHYDLOLQJFDUERQSULFH,QWKHFDUERQSULFH XQGHUWKHV\VWHPZDVSHUWRQQHRI&2H ,QWKH*RYHUQPHQWRI&DQDGDLQWURGXFHGWKHGreenhouse Gas Pollution Pricing Act ZKLFK HVWDEOLVKHVDIHGHUDOFDUERQOHY\IRUDQ\SURYLQFHRUWHUULWRU\WKDWKDVQRWLPSOHPHQWHGDFRPSOLDQW FDUERQSULFLQJUHJLPH)HGHUDOFDUERQWD[UDWHVEHJDQDWSHUWRQQHRI&2HLQLQFUHDVLQJ SHU\HDUWRSHUWRQQHRI&2HE\%&¶VCarbon Tax Act DQGWKHODUJHLQGXVWULDOHPLWWHU SURYLVLRQVRIWKH$OEHUWDTechnology Innovation and Emissions ReductionV\VWHPDUHFRQVLGHUHG VXEVWDQWLDOO\VLPLODUWRWKHIHGHUDOUHTXLUHPHQWVDQGWKHUHIRUHRXU%&DQG$OEHUWDRSHUDWLRQVZLOOQRWEH VXEMHFWWRWKRVHSURYLVLRQVRIWKHIHGHUDOGreenhouse Gas Pollution Pricing Act+RZHYHUHIIHFWLYH -DQXDU\WKHIHGHUDOFDUERQWD[RQJUHHQKRXVHJDVHPLVVLRQVUHVXOWLQJIURPWKHFRPEXVWLRQRI IRVVLOIXHOVIRUFHUWDLQSXUSRVHVDSSOLHGWRRXU$OEHUWDRSHUDWLRQV 7KH*RYHUQPHQWRI&DQDGDWRRNIXUWKHUDFWLRQLQDQGLQWURGXFHG%LOO&WKHCanadian Net-Zero Emissions Accountability ActLQWHQGHGWRIRUPDOL]H&DQDGD¶VWDUJHWWRDFKLHYHQHW]HURJUHHQKRXVHJDV HPLVVLRQVE\DQGUHOHDVHGWKH³A Healthy Environment and a Healthy Economy´FOLPDWHSODQ RXWOLQLQJSURSRVHGDFWLRQVDQGLQLWLDWLYHVWRDFKLHYH&DQDGD¶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¶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

:$7(55(*8/$7,21

,QDGGLWLRQWRFOLPDWHFKDQJHLVVXHVVXUURXQGLQJZDWHUUHJXODWLRQUHPDLQRISDUWLFXODULPSRUWDQFH:H FRQWLQXHWRPRQLWRUUHJXODWRU\LQLWLDWLYHVDQGSDUWLFLSDWHLQFRQVXOWDWLRQRSSRUWXQLWLHVZLWKJRYHUQPHQWV )RUH[DPSOHZHDUHSDUWLFLSDWLQJLQWKH&DQDGLDQIHGHUDOJRYHUQPHQWFRQVXOWDWLRQIRFXVHGRQ GHYHORSLQJD&RDO0LQLQJ(IIOXHQW5HJXODWLRQ7KHXOWLPDWHIRUPRIWKLVUHJXODWLRQPD\KDYHDPDWHULDO

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

HIIHFWRQFRPSOLDQFHFRVWVPLQHSODQVDQGRXUFDSLWDODQGRSHUDWLQJFRVWVDWDIIHFWHGPLQHV6HHRisk Factors — Changes in environmental, health and safety laws may have a material adverse effect on our operations:HDUHFRQWLQXLQJWRZRUNWRLPSOHPHQWDSODQIRUWKHPDQDJHPHQWRIVHOHQLXPDQGRWKHU FRQVWLWXHQWVDWDOORIRXURSHUDWLQJVWHHOPDNLQJFRDOPLQHVLQWKH(ON9DOOH\2XUFRVWVRILPSOHPHQWLQJ WKLVSODQDQGRWKHUPHDVXUHVWKDWPD\EHUHTXLUHGWRDGGUHVVZDWHUTXDOLW\LVVXHVDUHXQFHUWDLQDQGZLOO GHSHQGRQWKHUHVXOWVRIRQJRLQJHQYLURQPHQWDOPRQLWRULQJRWKHUWHFKQLFDOGHYHORSPHQWVDQGIXWXUH DFWLRQVE\UHJXODWRUV6HH³Description of the Business — Individual Operations — Steelmaking Coal” and “Risk Factors — We face risks associated with the issuance and renewal of permits´IRUIXUWKHU LQIRUPDWLRQ

62&,$/$1'(19,5210(17$/32/,&,(6

:HKDYHDGRSWHGDQGLPSOHPHQWHGDQXPEHURIVRFLDODQGHQYLURQPHQWDOSROLFLHVDQGSUDFWLFHVWKDWDUH HVVHQWLDOWRRXURSHUDWLRQV2XURSHUDWLQJSUDFWLFHVDUHJRYHUQHGE\WKHSULQFLSOHVVHWRXWLQRXU&RGHRI (WKLFVDQGRXU&RGHRI6XVWDLQDEOH&RQGXFW

2XU&RGHRI6XVWDLQDEOH&RQGXFWUHIOHFWV7HFN¶VFRPPLWPHQWWRVXVWDLQDELOLW\DQGRXUHIIRUWVWRPDNHD SRVLWLYHFRQWULEXWLRQWRWKHHQYLURQPHQWDQGWRWKHFRPPXQLWLHVZKHUHZHRSHUDWH7KLV&RGHVHWVRXW KRZZHZRUNWRDFKLHYHVXSSRUWIRURXUDFWLYLWLHVWKURXJKUHVSRQVLEOHVRFLDOHFRQRPLFDQGHQYLURQPHQWDO SHUIRUPDQFH

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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

TXDOLW\GRZQVWUHDPRIDOORXURSHUDWLRQVFRQWLQXLQJWRPDQDJHRXUWDLOLQJVDFURVVWKHLUOLIHF\FOHLQDVDIH DQGHQYLURQPHQWDOO\UHVSRQVLEOHZD\FROODERUDWLQJZLWKFRPPXQLWLHVDQG,QGLJHQRXV3HRSOHVWR JHQHUDWHHFRQRPLFEHQHILWVDGYDQFHUHFRQFLOLDWLRQHIIRUWVDQGLPSURYHFRPPXQLW\ZHOOEHLQJDQG ZRUNLQJWRZDUGVVHFXULQJDQHWSRVLWLYHLPSDFWRQELRGLYHUVLW\ +XPDQ5HVRXUFHV $VDW'HFHPEHUWKHUHZHUHDSSUR[LPDWHO\HPSOR\HHVFODVVLILHGDV³UHJXODU´HPSOR\HHV ZRUNLQJDWWKHYDULRXVRSHUDWLRQVDQGSURMHFWVZHPDQDJHDVZHOODVRXUFRUSRUDWHRIILFHV2IWKRVH HPSOR\HHVDSSUR[LPDWHO\ZHUHHPSOR\HGE\RXU&RDORSHUDWLRQVE\RXU&RSSHURSHUDWLRQV E\RXU=LQFRSHUDWLRQVDQGDWRWDORIDSSUR[LPDWHO\E\RXU([SORUDWLRQ(QHUJ\SURMHFWVDQG FRUSRUDWHJURXSV7KHVHILJXUHVH[FOXGHHPSOR\HHVFODVVLILHGDVFDVXDOIL[HGWHUPRULQDFWLYH

&ROOHFWLYHEDUJDLQLQJDJUHHPHQWVFRYHULQJXQLRQL]HGHPSOR\HHVDWRXUSULQFLSDORSHUDWLRQV LQFOXGLQJ $QWDPLQD DUHDVIROORZV

 ([SLU\'DWHRI&ROOHFWLYH$JUHHPHQW

$QWDPLQD -XO\

&DUPHQGH$QGDFROOR 6HSWHPEHU 2SHUDWRUV¶8QLRQ DQG'HFHPEHU  6XSHUYLVRUV¶8QLRQ 

(ONYLHZ 2FWREHU

)RUGLQJ5LYHU $SULO

+LJKODQG9DOOH\&RSSHU 6HSWHPEHU

/LQH&UHHN 0D\

4XHEUDGD%ODQFD -DQXDU\ 8QLRQ$GPLQ 1RYHPEHU 8QLRQ DQG0DUFK 8QLRQ 

7UDLO 0D\ 

,QZHUHDFKHGDQHZDJUHHPHQWZLWKWKH,QWHUQDWLRQDO8QLRQRI2SHUDWLQJ(QJLQHHUV/RFDODW /LQH&UHHN1HJRWLDWLRQVDUHXQGHUZD\UHJDUGLQJDQHZFROOHFWLYHDJUHHPHQWDW(ONYLHZ

7HFKQRORJ\DQG,QQRYDWLRQ

7HFNXQGHUWDNHVDQGSDUWLFLSDWHVLQDQXPEHURIUHVHDUFKDQGLQQRYDWLRQSURJUDPVGHVLJQHGWRLPSURYH H[SORUDWLRQPLQLQJDQGSURFHVVLQJIRUQHZSURMHFWVDQGRSHUDWLRQVHQYLURQPHQWDOSHUIRUPDQFHLQ RSHUDWLRQVDQGWHFKQRORJLHVWRDVVLVWWKHVDOHRISURGXFWVDQGKHQFHHQKDQFHRYHUDOOFRPSHWLWLYHQHVV DQGUHGXFHFRVWV ,Q0D\ZHEHJDQLPSOHPHQWLQJ5$&(ŒRXULQQRYDWLRQGULYHQEXVLQHVVWUDQVIRUPDWLRQ SURJUDP5$&(ŒLVDFRPSDQ\ZLGHDSSURDFKWR5HQHZLQJRXUWHFKQRORJ\LQIUDVWUXFWXUH $FFHOHUDWLQJDQGVFDOLQJDXWRPDWLRQDQGURERWLFV&RQQHFWLQJGDWDV\VWHPVWRHQDEOHEURDGDSSOLFDWLRQ RIDGYDQFHGDQDO\WLFVDQGDUWLILFLDOLQWHOOLJHQFHDQG(PSRZHULQJRXUHPSOR\HHVDOOZLWKDIRFXVRQ LPSURYLQJRXURSHUDWLQJUHVXOWVWKURXJKDQGEH\RQG

'HVSLWHWKHFKDOOHQJHVRI&29,'7HFN¶V5$&(70WUDQVIRUPDWLRQKDGVLJQLILFDQW.3,LPSDFWV DFURVVRXURSHUDWLRQVLQ7KH5$&(70SURJUDPLVSURJUHVVLQJZHOODQGWKHUHVXOWLQJ LPSURYHPHQWVDUHEHLQJHPEHGGHGLQRSHUDWLQJSODQVDQGEXGJHWVDFURVVRXUVLWHV 7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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

)RUHLJQ2SHUDWLRQV

7KH5HG'RJPLQHORFDWHGLQ$ODVNDWKH$QWDPLQDPLQHORFDWHGLQ3HUXDQGWKH4XHEUDGD%ODQFDDQG &DUPHQGH$QGDFROORPLQHVORFDWHGLQ&KLOHDUHRXUVLJQLILFDQWRSHUDWLQJDVVHWVORFDWHGRXWVLGHRI &DQDGD:HKROGDLQWHUHVWLQ$QWDPLQDWKURXJKRXUHTXLW\LQWHUHVWLQ&0$WKHRSHUDWLQJ FRPSDQ\IRUWKHPLQH:HKROGDLQWHUHVWLQWKH5HG'RJPLQHVXEMHFWWRWKHUR\DOW\LQIDYRXURI 1$1$GHVFULEHGXQGHUWKHKHDGLQJ³Description of the Business — Individual Operations — Zinc — , (Zinc, )´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³Risk Factors — We operate in foreign jurisdictions and face added risks and uncertainties due to different economic, cultural and political environments´IRUIXUWKHULQIRUPDWLRQRQWKHULVNVDVVRFLDWHGZLWKWKHVH IRUHLJQSURSHUWLHV

&RPSHWLWLYH&RQGLWLRQV

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³Description of the Business — Product Summary´³Risk Factors — We face competition in product markets and from other companies” DQG³Risk Factors — We may not be able to hire enough skilled employees to support our operations”.

 

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

5LVN)DFWRUV

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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¶VJURZWKRUGHPDQGRUDVLJQLILFDQWVORZGRZQ LQRWKHUPDUNHWVLQHLWKHUFDVHWKDWLVQRWRIIVHWE\UHGXFHGVXSSO\RULQFUHDVHGGHPDQGIURPRWKHU

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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¶VPDUNHWSULFHZKLOHRSWLPL]LQJXSVLGHSDUWLFLSDWLRQWRSURWHFWDJDLQVW FXUUHQF\IOXFWXDWLRQVRUWRPDLQWDLQDGHTXDWHFDVKIORZVDQGSURILWDELOLW\WRFRQWULEXWHWRWKHORQJ WHUPYLDELOLW\RIRXUEXVLQHVV7KHUHDUHKRZHYHUULVNVDVVRFLDWHGZLWKKHGJLQJSURJUDPVLQFOXGLQJ DPRQJRWKHUWKLQJVWKHULVNRIRSSRUWXQLW\ORVVHVLQWKHHYHQWRIDQLQFUHDVHLQWKHZRUOGSULFHRIWKH FRPPRGLW\DQLQFUHDVHLQLQWHUHVWUDWHVWKHSRVVLELOLW\WKDWULVLQJRSHUDWLQJFRVWVZLOOPDNHGHOLYHU\ LQWRKHGJHGSRVLWLRQVXQHFRQRPLFFRXQWHUSDUW\ULVNVDQGWKHLPSDFWRISURGXFWLRQLQWHUUXSWLRQ HYHQWV

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“Risk Factors — Changes in environmental, health and safety laws may have a material adverse effect on our operations and projects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³Individual Operations – Steelmaking Coal – Elk Valley Water Quality Management Plan´IRUPRUHGHWDLOV 1RWZLWKVWDQGLQJWKHDSSURYDORIWKH(ON9DOOH\:DWHU4XDOLW\SODQLQGXULQJWKHWKLUGTXDUWHURI ZHUHFHLYHGQRWLFHIURP&DQDGLDQIHGHUDOSURVHFXWRUVRISRWHQWLDOFKDUJHVXQGHUWKHFisheries ActLQFRQQHFWLRQZLWKGLVFKDUJHVRIVHOHQLXPDQGFDOFLWHIURPFRDOPLQHVLQWKH(ON9DOOH\6HH ³Legal Proceedings and Regulatory Actions – Fisheries Act´IRUPRUHGHWDLOV7KHFisheries Act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yQ*DORUH&UHHN6DQ1LFROiV0HVDED6FKDIW&UHHNDQG=DIUDQDO 'HYHORSPHQWDQGH[SORLWDWLRQRIWKHK\SRJHQHUHVRXUFHDW4XHEUDGD%ODQFD3KDVHUHTXLUHV FRQVLGHUDEOHFDSLWDOH[SHQGLWXUHVDQGYDULRXVHQYLURQPHQWDODQGRWKHUSHUPLWVDQGJRYHUQPHQWDO DXWKRUL]DWLRQV1XHYD8QLyQ6DQ1LFROiVDQG=DIUDQDODUHDOVRDOOLQHDUO\VWDJHVRIGHYHORSPHQW

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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

„ VLJQLILFDQWFRVWRYHUUXQVGXHWRDPRQJRWKHUWKLQJVGHOD\VFKDQJHVWRLQSXWVRU FKDQJHVWRHQJLQHHULQJ

„ GHOD\VLQFRQVWUXFWLRQDQGWHFKQLFDODQGRWKHUSUREOHPVLQFOXGLQJDGYHUVHJHRWHFKQLFDO FRQGLWLRQVDQGRWKHUREVWDFOHVWRFRQVWUXFWLRQ

„ RXUDELOLW\WRREWDLQUHJXODWRU\DSSURYDOVRUSHUPLWVRQDWLPHO\EDVLVRUDWDOO

„ RXUDELOLW\WRFRPSO\ZLWKDQ\FRQGLWLRQVLPSRVHGE\UHJXODWRU\DSSURYDOVRUSHUPLWV PDLQWDLQVXFKDSSURYDOVDQGSHUPLWVRUREWDLQDQ\UHTXLUHGDPHQGPHQWVWRH[LVWLQJ UHJXODWRU\DSSURYDOVRUSHUPLWV

„ DFFXUDF\RIUHVHUYHDQGUHVRXUFHHVWLPDWHV

„ DFFXUDF\RIHQJLQHHULQJDQGFKDQJHVLQVFRSH

„ DGYHUVHUHJXODWRU\GHYHORSPHQWVLQFOXGLQJWKHLPSRVLWLRQRIQHZUHJXODWLRQV

„ VLJQLILFDQWIOXFWXDWLRQLQSUHYDLOLQJSULFHVIRUFRSSHUDQGRWKHUPHWDOVRLORWKHUSHWUROHXP SURGXFWVDQGQDWXUDOJDVZKLFKPD\DIIHFWWKHSURILWDELOLW\RIWKHSURMHFWV

„ FRPPXQLW\DFWLRQRURWKHUGLVUXSWLYHDFWLYLWLHVE\VWDNHKROGHUV

„ DGHTXDF\DQGDYDLODELOLW\RIDVNLOOHGZRUNIRUFH

„ GLIILFXOWLHVLQSURFXULQJRUDIDLOXUHWRSURFXUHUHTXLUHGVXSSOLHVDQGUHVRXUFHVWR FRQVWUXFWDQGRSHUDWHDPLQH

„ WKHIDFWWKDWZHGRQRWRZQRIPDQ\RIRXUSURMHFWVDQGFHUWDLQGHFLVLRQVZLOO UHTXLUHWKHDJUHHPHQWRIRQHRUPRUHRIRXUSDUWQHUV 6HH³Risk Factors — ³We face risks associated with our joint venture operations and projects” 

„ DYDLODELOLW\VXSSO\DQGFRVWRIZDWHUDQGSRZHU

„ ZHDWKHURUVHYHUHFOLPDWHLPSDFWV

„ OLWLJDWLRQ

„ RXUGHSHQGHQFHRQWKLUGSDUWLHVIRUVHUYLFHVDQGXWLOLWLHV

„ GHYHORSPHQWRIUHTXLUHGLQIUDVWUXFWXUH

„ DIDLOXUHWRGHYHORSRUPDQDJHDSURMHFWLQDFFRUGDQFHZLWKRXUSODQQLQJH[SHFWDWLRQVRU WRSURSHUO\PDQDJHWKHWUDQVLWLRQWRDQRSHUDWLQJPLQH

„ WKHDELOLW\RIRXUSDUWQHUVWRILQDQFHWKHLUUHVSHFWLYHVKDUHVRISURMHFWH[SHQGLWXUHV

„ WKHUHOLDQFHRQFRQWUDFWRUVDQGRWKHUWKLUGSDUWLHVIRUPDQDJHPHQWHQJLQHHULQJ FRQVWUXFWLRQDQGRWKHUVHUYLFHVDQGWKHULVNWKDWWKH\PD\QRWSHUIRUPDVDQWLFLSDWHG DQGXQDQWLFLSDWHGGLVSXWHVPD\DULVHEHWZHHQWKHPDQGXV 7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

„ RXUDELOLW\WRILQDQFHRXUVKDUHRISURMHFWFRVWVRUREWDLQILQDQFLQJIRUWKHVHSURMHFWVRQ FRPPHUFLDOO\UHDVRQDEOHWHUPVRUDWDOODQG

„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³Health and Safety and Environmental Protection ² Climate Change and Carbon Pricing´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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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³Risk Factors — Damage to our reputation may result in decreased investor confidence, challenges in maintaining positive community relations and increased risks in obtaining permits or financing for our development properties and expansions to our existing operations.´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isheries Act UHODWLQJWRFRDOPLQLQJHIIOXHQW:KLOHWKHVHUHJXODWLRQVDUHVWLOOLQGHYHORSPHQWWKH\FRXOGLPSRVH VLJQLILFDQWFRVWVDQGRSHUDWLQJOLPLWDWLRQVRQRXUVWHHOPDNLQJFRDORSHUDWLRQV,QWKHDEVHQFHRI WKHVHQHZUHJXODWLRQVWKHFisheries ActGRHVQRWFRQWDLQDQ\PHFKDQLVPVWRDXWKRUL]HQRQSRLQW VRXUFHGLVFKDUJHVIURPRXUFRDOPLQHV7KHUHFDQEHQRDVVXUDQFHWKDWWKHQHZUHJXODWLRQVZLOO FRPSOHWHO\UHPHG\WKLVVLWXDWLRQ ,QWKH&DQDGLDQ Impact Assessment ActFDPHLQWRIRUFHZLWKVLJQLILFDQWFKDQJHVWRWKHIHGHUDO JRYHUQPHQW¶VFXUUHQWHQYLURQPHQWDODVVHVVPHQWDQGUHJXODWRU\SURFHVVHVIRUUHVRXUFH GHYHORSPHQWSURMHFWV:KLOHWKHQHZOHJLVODWLRQGRHVQRWDIIHFW7HFN¶VSURMHFWVWKDWDUHDOUHDG\LQ UHJXODWRU\DSSURYDOSURFHVVHVLWZLOODSSO\WRQHZSURMHFWVZKLFKPHHWFHUWDLQFULWHULD)RUH[DPSOH WKHIHGHUDOJRYHUQPHQWDQQRXQFHGLQWKDWRXU)RUGLQJ5LYHU([WHQVLRQ3URMHFW IRUPHUO\QDPHG &DVWOH3URMHFW UHTXLUHGDIHGHUDOUHYLHZXQGHUWKHQHZImpact Assessment Act6LPLODUO\LQ WKH%ULWLVK&ROXPELDJRYHUQPHQWUHIRUPHGWKHSURYLQFH¶VHQYLURQPHQWDODVVHVVPHQWSURFHVVIRU UHVRXUFHSURMHFWVLQWURGXFLQJVLJQLILFDQWQHZFKDQJHVLQWRWKHHQYLURQPHQWDODVVHVVPHQWSURFHVV IRULQGXVWULDODQGUHVRXUFHSURMHFWVLQ%ULWLVK&ROXPELDLQFOXGLQJQHZUXOHVVXUURXQGLQJSURMHFW

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

QRWLILFDWLRQVHDUO\HQJDJHPHQWDQGLQFUHDVHGSXEOLFSDUWLFLSDWLRQDORQJZLWKQHZWLPHOLQHVGLFWDWLQJ ZKHQFHUWDLQVWHSVPXVWEHWDNHQWKURXJKRXWWKHHQYLURQPHQWDODVVHVVPHQWSURFHVV7KHVH FKDQJHVDQGDQ\RWKHUQHZOHJLVODWLRQPD\DIIHFWRXUDELOLW\WRREWDLQRUUHQHZSHUPLWVIRURXU RSHUDWLRQVDQGSURMHFWVLQDQHIILFLHQWDQGFRVWHIIHFWLYHPDQQHURUDWDOO ,QDGGLWLRQLQWKH*RYHUQPHQWRI%ULWLVK&ROXPELDSDVVHGWKHDeclaration of the Rights of Indigenous Peoples ActWRLPSOHPHQWWKH8QLWHG1DWLRQV'HFODUDWLRQRQWKH5LJKWVRI,QGLJHQRXV 3HRSOHV 81'5,3 LQ%ULWLVK&ROXPELD7KHOHJLVODWLRQFRPPLWVWRDV\VWHPDWLFUHYLHZRIWKH SURYLQFH¶VODZVZLWKUHVSHFWWR81'5,3ZKLOHDOVRHQFRXUDJLQJQHZDJUHHPHQWVZLWK,QGLJHQRXV QDWLRQVWKDWDUHLQWHQGHGWRDGGUHVVRXWVWDQGLQJJRYHUQDQFHTXHVWLRQVDURXQGWKHQDWXUHRI ,QGLJHQRXVULJKWVDQGWLWOHLQWHUHVWVLQ%&:KLOHWKHSRWHQWLDOULVNVRIWKLVOHJLVODWLRQUHPDLQWREH GHWHUPLQHGWKH\FRXOGEHVLJQLILFDQWSDUWLFXODUO\ZLWKUHVSHFWWR7HFN¶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¶FRPSHQVDWLRQDQGSURGXFWOLDELOLW\ FODLPVZKLFKFRXOGKDYHDPDWHULDODGYHUVHHIIHFWRQRXUEXVLQHVV 'DPDJHWRRXUUHSXWDWLRQPD\UHVXOWLQGHFUHDVHGLQYHVWRUFRQILGHQFHFKDOOHQJHVLQ PDLQWDLQLQJSRVLWLYHFRPPXQLW\UHODWLRQVDQGLQFUHDVHGULVNVLQREWDLQLQJSHUPLWVRU ILQDQFLQJIRURXUGHYHORSPHQWSURSHUWLHVDQGH[SDQVLRQVRIRXUH[LVWLQJRSHUDWLRQV 'DPDJHWRRXUUHSXWDWLRQFDQRFFXUIURPRXUDFWXDORUSHUFHLYHGDFWLRQVRULQDFWLRQVDQGDYDULHW\RI HYHQWVDQGFLUFXPVWDQFHVPDQ\RIZKLFKDUHRXWRIRXUFRQWURO7KHJURZLQJXVHRIVRFLDOPHGLDWR JHQHUDWHSXEOLVKDQGGLVFXVVFRPPXQLW\QHZVDQGLVVXHVDQGWRFRQQHFWZLWKRWKHUVKDVPDGHLW VLJQLILFDQWO\HDVLHUIRULQGLYLGXDOVDQGJURXSVWRVKDUHWKHLURSLQLRQVRIXVDQGRXUDFWLYLWLHVZKHWKHU DFFXUDWHRUQRW:HGRQRWGLUHFWO\FRQWUROKRZZHDUHSHUFHLYHGE\RWKHUV/RVVRIUHSXWDWLRQFRXOG UHVXOWLQDPRQJRWKHUWKLQJVDGHFUHDVHWRWKHSULFHRIRXUVKDUHVGHFUHDVHGLQYHVWRUFRQILGHQFH FKDOOHQJHVLQPDLQWDLQLQJSRVLWLYHUHODWLRQVKLSVZLWKWKHFRPPXQLWLHVLQZKLFKZHRSHUDWHDQGRWKHU LPSRUWDQWVWDNHKROGHUVDQGLQFUHDVHGULVNVLQREWDLQLQJSHUPLWVRUILQDQFLQJIRURXUGHYHORSPHQW SURSHUWLHVRUH[SDQVLRQVWRRXUH[LVWLQJRSHUDWLRQVDQ\RIZKLFKFRXOGKDYHDPDWHULDODGYHUVH HIIHFWRQRXURSHUDWLRQVGHYHORSPHQWSURMHFWVEXVLQHVVDQGILQDQFLDOSRVLWLRQ ,QUHFHQW\HDUVDQLQFUHDVLQJQXPEHURILQYHVWRUVILQDQFLDOLQVWLWXWLRQVDQGLQVXUDQFHSURYLGHUV KDYHDGRSWHGSRVLWLRQVRUEHHQHQFRXUDJHGWRDGRSWSRVLWLRQVWRUHVWULFWLQYHVWPHQWLQOHQGLQJWR RULQVXUDQFHRISURMHFWVRUFRPSDQLHVDVVRFLDWHGZLWKFDUERQLQWHQVLYHDFWLYLWLHVVXFKDVIRVVLO IXHOVRUFRDOSURGXFWLRQ/DUJHLQVWLWXWLRQDOLQYHVWRUVDUHDOVRDGRSWLQJLQYHVWPHQWSROLFLHVWKDWWDNH

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

HQYLURQPHQWDOVRFLDODQGJRYHUQDQFH³(6*´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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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³Legal Proceedings and Regulatory Actions”EHORZ :HIDFHULVNVDVVRFLDWHGZLWKRXUMRLQWYHQWXUHRSHUDWLRQVDQGSURMHFWV $QXPEHURIRXUSURMHFWVDQGRSHUDWLRQVDUHGHYHORSHGDQGRSHUDWHGWKURXJKMRLQWYHQWXUHRUVKDUHG RZQHUVKLSDUUDQJHPHQWVZLWKWKLUGSDUWLHV7KHVHMRLQWDUUDQJHPHQWVLQFOXGHDPRQJRWKHUV 4XHEUDGD%ODQFD3KDVH)RUW+LOOV$QWDPLQD1XHYD8QLyQ=DIUDQDO*DORUH&UHHN(ONYLHZDQG *UHHQKLOOV:HIDFHULVNVIURPWKHIDFWWKDWDWFHUWDLQRIRXURSHUDWLRQVOLNH)RUW+LOOVDQG$QWDPLQD ZHDUHDPLQRULW\SDUWQHUDQGFHUWDLQPDMRUGHFLVLRQVPD\EHPDGHZLWKRXWRXUFRQVHQWPHDQLQJ ZHPD\QRWKDYHFRQWURORYHUDQXPEHURIIDFWRUVLQFOXGLQJWLPLQJDQGDPRXQWRIFDSLWDODQG RSHUDWLQJH[SHQGLWXUHVRSHUDWLRQDQGSURGXFWLRQGHFLVLRQVULVNPDQDJHPHQWDQGRWKHURSHUDWLRQDO SUDFWLFHV :HDOVRIDFHULVNVIURPWKHIDFWWKDWDWFHUWDLQRWKHUSURMHFWVOLNH1XHYD8QLy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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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³Description of Capital Structure –— General Description of Capital Structure –— Credit Facilities´DQG³³Description of Capital Structure –— General Description of Capital Structure –— Public Indebtedness´IRUIXUWKHU LQIRUPDWLRQUHJDUGLQJDQGDIXUWKHUGLVFXVVLRQRIWKHFRYHQDQWVLQRXUILQDQFLQJDUUDQJHPHQWV ,QDGGLWLRQIURPWLPHWRWLPHQHZDFFRXQWLQJUXOHVSURQRXQFHPHQWVDQGLQWHUSUHWDWLRQVDUH HQDFWHGRUSURPXOJDWHGWKDWPD\UHTXLUHXVGHSHQGLQJRQWKHQDWXUHRIWKRVHQHZDFFRXQWLQJUXOHV SURQRXQFHPHQWVDQGLQWHUSUHWDWLRQVWRUHFODVVLI\RUUHVWDWHFHUWDLQHOHPHQWVRIRXUILQDQFLQJ DJUHHPHQWVDQGRWKHUGHEWLQVWUXPHQWVZKLFKPD\LQWXUQFDXVHXVWREHLQEUHDFKRIWKHILQDQFLDO RURWKHUFRYHQDQWVFRQWDLQHGLQRXUILQDQFLQJDJUHHPHQWVDQGRWKHUGHEWLQVWUXPHQWV )XWXUHIXQGLQJUHTXLUHPHQWVPD\DIIHFWRXUEXVLQHVVDQGZHPD\QRWKDYHDFFHVVWRFUHGLW LQWKHIXWXUH )XWXUHLQYHVWPHQWVLQFOXGLQJGHYHORSPHQWSURMHFWVDFTXLVLWLRQVDQGRWKHULQYHVWPHQWVPD\UHTXLUH VLJQLILFDQWFDSLWDOH[SHQGLWXUHV2XURSHUDWLQJFDVKIORZPD\QRWEHVXIILFLHQWWRPHHWDOORIWKHVH H[SHQGLWXUHVGHSHQGLQJRQWKHWLPLQJDQGFRVWVRIGHYHORSPHQW$VDUHVXOWQHZVRXUFHVRIFDSLWDO PD\EHQHHGHGWRIXQGDFTXLVLWLRQVRUWKHVHLQYHVWPHQWV$GGLWLRQDOVRXUFHVRIFDSLWDOPD\QRWEH

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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¶QRWLFH,QWKHHYHQWWKDWDVWDQGE\OHWWHURIFUHGLWIDFLOLW\LVWHUPLQDWHGZHZRXOGEH UHTXLUHGWRGHOLYHUFDVKFROODWHUDOWRWKHEDQNFRXQWHUSDUW\LIZHZHUHXQDEOHWRWHUPLQDWHWKHOHWWHURI FUHGLWLVVXHGE\WKHEDQN3URYLGHUVRIRXUVXUHW\ERQGVDOVRKDYHWKHULJKWWRUHTXLUHWKHGHOLYHU\RI FDVKFROODWHUDOXSRQGD\V¶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¶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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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³Description of the Business — Human Resources´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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

,QJHQHUDORXUPLQHUDOUHVHUYHVDQGUHVRXUFHVDUHHVWLPDWHGE\SHUVRQVZKRDUHRUZHUHDWWKH WLPHRIWKHLUUHSRUWHPSOR\HHVRIWKHUHVSHFWLYHRSHUDWLQJFRPSDQ\IRUHDFKRIRXURSHUDWLRQVXQGHU WKHVXSHUYLVLRQRIRXUHPSOR\HHV7KHVHLQGLYLGXDOVDUHQRW³LQGHSHQGHQW´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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

,QGLJHQRXV3HRSOHV¶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³Risk Factors -Changes in environmental, health and safety laws may have a material adverse effect on our operations and projects.´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¶FODLPVRUJULHYDQFHVDOVRFRXOGDIIHFWH[LVWLQJRSHUDWLRQVDVZHOODV GHYHORSPHQWSURMHFWVDQGIXWXUHDFTXLVLWLRQV7KHVHOHJDOUHTXLUHPHQWVDQGWKHULVNRI,QGLJHQRXV 3HRSOHV¶RSSRVLWLRQPD\LQFUHDVHRXURSHUDWLQJFRVWVDQGDIIHFWRXUDELOLW\WRH[SDQGRUWUDQVIHU H[LVWLQJRSHUDWLRQVRUWRGHYHORSQHZSURMHFWV :HDUHVXEMHFWWRFKDQJHVLQODZRUSROLF\LQUHODWLRQWRWD[HVIHHVDQGUR\DOWLHV :HDUHVXEMHFWWRWD[HV LQFOXGLQJLQFRPHWD[HVPLQHUDOWD[HVDQGFDUERQWD[HV YDULRXVIHHVDQG UR\DOWLHVLPSRVHGE\YDULRXVOHYHOVRIJRYHUQPHQWDFURVVWKHMXULVGLFWLRQVLQZKLFKZHRSHUDWH7KH ODZVLPSRVLQJWKHVHWD[HVIHHVDQGUR\DOWLHVDQGWKHPDQQHULQZKLFKWKH\DUHDGPLQLVWHUHGPD\LQ WKHIXWXUHEHFKDQJHGRULQWHUSUHWHGLQDPDQQHUWKDWPDWHULDOO\DQGDGYHUVHO\DIIHFWVRXUEXVLQHVV ILQDQFLDOSRVLWLRQDQGUHVXOWVRIRSHUDWLRQV :HRSHUDWHLQIRUHLJQMXULVGLFWLRQVDQGIDFHDGGHGULVNVDQGXQFHUWDLQWLHVGXHWRGLIIHUHQW HFRQRPLFFXOWXUDODQGSROLWLFDOHQYLURQPHQWV 2XUEXVLQHVVRSHUDWHVLQDQXPEHURIIRUHLJQFRXQWULHVZKHUHWKHUHDUHDGGHGULVNVDQG XQFHUWDLQWLHVGXHWRWKHGLIIHUHQWHFRQRPLFFXOWXUDODQGSROLWLFDOHQYLURQPHQWV6RPHRIWKHVHULVNV LQFOXGHQDWLRQDOL]DWLRQDQGH[SURSULDWLRQVRFLDOXQUHVWDQGSROLWLFDOLQVWDELOLW\XQFHUWDLQWLHVLQ SHUIHFWLQJPLQHUDOWLWOHVGHOD\VRULQDELOLW\WRREWDLQSHUPLWVWUDGHEDUULHUVDQGH[FKDQJHFRQWUROV OLPLWDWLRQVRQUHSDWULDWLRQRIIXQGVDQGPDWHULDOFKDQJHVLQWD[DWLRQ)XUWKHUGHYHORSLQJFRXQWU\ VWDWXVRUDQXQIDYRXUDEOHSROLWLFDOFOLPDWHPD\PDNHLWGLIILFXOWIRUXVWRREWDLQILQDQFLQJIRUSURMHFWV LQVRPHFRXQWULHV $VXEVWDQWLDOSRUWLRQRIRXUEDVHPHWDOVEXVLQHVVLVLQ&KLOHZKLFKKDVUHFHQWO\EHHQVXEMHFWWR VLJQLILFDQWVRFLDOXQUHVWDQGLVXQGHUJRLQJDFRQVWLWXWLRQDOUHIRUPSURFHVV:KLOHRXU4%SURMHFW KDVWKHEHQHILWRIDPLQLQJWD[VWDELOLW\DJUHHPHQWVRFLDOFRQGLWLRQVRUSROLWLFDOGHYHORSPHQWVLQ &KLOHPD\UHVXOWLQWD[LQFUHDVHVRUPD\GLVUXSWRXUEXVLQHVVDQGWKHLPSDFWPD\EHPDWHULDO 2XUEXVLQHVVLVVXEMHFWWRWKH&DQDGLDQCorruption of Foreign Public Officials ActWKH86 Foreign Corrupt Practices ActDQGVLPLODUZRUOGZLGHDQWLEULEHU\ODZVDEUHDFKRUYLRODWLRQ RIZKLFKFRXOGOHDGWRFLYLODQGFULPLQDOILQHVDQGSHQDOWLHVORVVRIOLFHQFHVRUSHUPLWVDQG UHSXWDWLRQDOKDUP :HRSHUDWHLQFHUWDLQMXULVGLFWLRQVWKDWKDYHH[SHULHQFHGJRYHUQPHQWDODQGSULYDWHVHFWRUFRUUXSWLRQ WRVRPHGHJUHHDQGLQFHUWDLQFLUFXPVWDQFHVVWULFWFRPSOLDQFHZLWKDQWLEULEHU\ODZVPD\FRQIOLFW ZLWKFHUWDLQORFDOFXVWRPVDQGSUDFWLFHV)RUH[DPSOHWKH&DQDGLDQCorruption of Foreign Public

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

Officials ActWKH86 Foreign Corrupt Practices Act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³IDFLOLWDWLRQSD\PHQWV´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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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pro rata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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

FDXVLQJXVWRLQFXUVLJQLILFDQWFRVWV:HPD\IDFHPDWHULDOORVVHVLQDQ\RIWKHVHVLWXDWLRQVZKLFK PD\QRWEHFRYHUHGE\LQVXUDQFH 2XU5HG'RJ2SHUDWLRQVDUHVXEMHFWWRDOLPLWHGDQQXDOVKLSSLQJZLQGRZZKLFKLQFUHDVHV WKHFRQVHTXHQFHVRIUHVWULFWLRQVRQRXUDELOLW\WRVKLSFRQFHQWUDWHIURPWKHRSHUDWLRQ /LNHRXURWKHUPLQHVRXU5HG'RJPLQHRSHUDWHV\HDUURXQGRQDKRXUSHUGD\EDVLV'XHWR VHDLFHDQGZHDWKHUFRQGLWLRQVWKHDQQXDOSURGXFWLRQRIWKHPLQHPXVWEHVWRUHGDWWKHSRUWVLWHDQG VKLSSHGZLWKLQDQDSSUR[LPDWHGD\ZLQGRZZKHQVHDLFHDQGZHDWKHUFRQGLWLRQVSHUPLW7ZR SXUSRVHGHVLJQHGVKDOORZGUDIWEDUJHVWUDQVSRUWWKHFRQFHQWUDWHVWRGHHSZDWHUPRRULQJV7KH EDUJHVFDQQRWRSHUDWHLQVHYHUHVZHOOFRQGLWLRQVDQGLQRQHRIWKHEDUJHVH[SHULHQFHGD VLJQLILFDQWPHFKDQLFDOIDLOXUH 8QXVXDOLFHRUZHDWKHUFRQGLWLRQVRUGDPDJHWRWKHEDUJHVRUVKLSORDGLQJHTXLSPHQWFRXOGUHVWULFW RXUDELOLW\WRVKLSDOORIWKHVWRUHGFRQFHQWUDWH)DLOXUHWRVKLSWKHFRQFHQWUDWHGXULQJWKHVKLSSLQJ VHDVRQFRXOGKDYHDPDWHULDODGYHUVHHIIHFWRQRXUVDOHVDVZHOODVRQRXU7UDLO2SHUDWLRQVDQG FRXOGPDWHULDOO\UHVWULFWPLQHSURGXFWLRQVXEVHTXHQWWRWKHVKLSSLQJVHDVRQ $OWKRXJKZHEHOLHYHRXUILQDQFLDOVWDWHPHQWVDUHSUHSDUHGZLWKUHDVRQDEOHVDIHJXDUGVWR HQVXUHUHOLDELOLW\ZHFDQQRWSURYLGHDEVROXWHDVVXUDQFH :HSUHSDUHRXUILQDQFLDOUHSRUWVLQDFFRUGDQFHZLWKDFFRXQWLQJSROLFLHVDQGPHWKRGVSUHVFULEHGE\ ,QWHUQDWLRQDO)LQDQFLDO5HSRUWLQJ6WDQGDUGVDVLVVXHGE\WKH,QWHUQDWLRQDO$FFRXQWLQJ6WDQGDUGV %RDUG,QWKHSUHSDUDWLRQRIILQDQFLDOUHSRUWVPDQDJHPHQWPD\QHHGWRUHO\XSRQDVVXPSWLRQV PDNHHVWLPDWHVRUXVHWKHLUEHVWMXGJPHQWLQGHWHUPLQLQJWKHILQDQFLDOFRQGLWLRQRIWKH&RPSDQ\ 6LJQLILFDQWDFFRXQWLQJSROLFLHVDUHGHVFULEHGLQPRUHGHWDLOLQWKHQRWHVWRRXUDQQXDOFRQVROLGDWHG ILQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG'HFHPEHU,QRUGHUWRKDYHDUHDVRQDEOHOHYHORI DVVXUDQFHWKDWILQDQFLDOWUDQVDFWLRQVDUHSURSHUO\DXWKRUL]HGDVVHWVDUHVDIHJXDUGHGDJDLQVW XQDXWKRUL]HGRULPSURSHUXVHDQGWUDQVDFWLRQVDUHSURSHUO\UHFRUGHGDQGUHSRUWHGZHKDYH LPSOHPHQWHGDQGFRQWLQXHWRDQDO\]HRXULQWHUQDOFRQWUROV\VWHPVIRUILQDQFLDOUHSRUWLQJ$OWKRXJK ZHEHOLHYHRXUILQDQFLDOUHSRUWLQJDQGILQDQFLDOVWDWHPHQWVDUHSUHSDUHGZLWKUHDVRQDEOHVDIHJXDUGV WRHQVXUHUHOLDELOLW\ZHFDQQRWSURYLGHDEVROXWHDVVXUDQFHLQWKDWUHJDUG 2XULQVXUDQFHPD\QRWSURYLGHDGHTXDWHFRYHUDJH :HPDLQWDLQODUJHVHOILQVXUHGUHWHQWLRQVDQGLQVXUHDJDLQVWPRVWULVNVXSWRUHDVRQDEO\KLJKOLPLWV WKURXJKFDSWLYHLQVXUDQFHFRPSDQLHV2XUSURSHUW\EXVLQHVVLQWHUUXSWLRQDQGOLDELOLW\LQVXUDQFH PD\QRWSURYLGHVXIILFLHQWFRYHUDJHIRUORVVHVUHODWHGWRFHUWDLQKD]DUGVDQGODUJHORVVHVZLWKLQRXU FDSWLYHLQVXUHUVFRXOGKDYHDQHIIHFWRQRXUFRQVROLGDWHGILQDQFLDOSRVLWLRQ:HPD\HOHFWQRWWR PDLQWDLQLQVXUDQFHIRUFHUWDLQULVNVGXHWRWKHKLJKSUHPLXPVDVVRFLDWHGZLWKLQVXULQJWKRVHULVNV DQGIRUYDULRXVRWKHUUHDVRQV,QRWKHUFDVHVLQVXUDQFHDJDLQVWFHUWDLQULVNVLQFOXGLQJFHUWDLQ OLDELOLWLHVIRUHQYLURQPHQWDOSROOXWLRQPD\QRWEHDYDLODEOHWRXVRUWRRWKHUFRPSDQLHVZLWKLQWKH LQGXVWU\,QVXUDQFHDYDLODELOLW\DWDQ\WLPHLVGULYHQE\DQXPEHURIIDFWRUVDQGDYDLODELOLW\ZLOOEH IXUWKHUSUHVVXUHGE\WKHDQQRXQFHGLQWHQWLRQVRIFHUWDLQSURYLGHUVWRUHVWULFWXQGHUZULWLQJRIFHUWDLQ LQGXVWULHVDVVHWVRUSURMHFWVVXFKDVRLOVDQGV,QDGGLWLRQRXULQVXUDQFHFRYHUDJHPD\QRW FRQWLQXHWREHDYDLODEOHDWHFRQRPLFDOO\IHDVLEOHSUHPLXPVRUDWDOO$Q\VXFKHYHQWFRXOGKDYHD PDWHULDODGYHUVHHIIHFWRQRXUEXVLQHVVRSHUDWLRQVRUILQDQFLDOSRVLWLRQ 2XUSHQVLRQDQGRWKHUSRVWUHWLUHPHQWOLDELOLWLHVDQGWKHDVVHWVDYDLODEOHWRIXQGWKHPFRXOG FKDQJHPDWHULDOO\ :HKDYHVXEVWDQWLDODVVHWVLQGHILQHGEHQHILWSHQVLRQSODQVZKLFKDULVHWKURXJKHPSOR\HU FRQWULEXWLRQVDQGUHWXUQVRQLQYHVWPHQWVPDGHE\WKHSODQV7KHUHWXUQVRQLQYHVWPHQWVDUHVXEMHFW

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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

2XU&ODVV$FRPPRQVKDUHVDQG&ODVV%VXERUGLQDWHYRWLQJVKDUHVUDQNHTXDOO\DVWRWKHSD\PHQWRI GLYLGHQGV7RWDOGLYLGHQGVSHUVKDUHGHFODUHGDQGSDLGLQWKHSDVWWKUHH\HDUVZHUH

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

*HQHUDO'HVFULSWLRQRI&DSLWDO6WUXFWXUH

6+$5(&$3,7$/

7HFNLVDXWKRUL]HGWRLVVXHDQXQOLPLWHGQXPEHURI&ODVV$FRPPRQVKDUHVDQG&ODVV%VXERUGLQDWH YRWLQJVKDUHVDQGDQXQOLPLWHGQXPEHURISUHIHUHQFHVKDUHVLVVXDEOHLQVHULHV &ODVV$FRPPRQVKDUHVFDUU\WKHULJKWWRYRWHVSHUVKDUH&ODVV%VXERUGLQDWHYRWLQJVKDUHVFDUU\ WKHULJKWWRRQHYRWHSHUVKDUH(DFK&ODVV$FRPPRQVKDUHLVFRQYHUWLEOHDWWKHRSWLRQRIWKHKROGHU LQWRRQH&ODVV%VXERUGLQDWHYRWLQJVKDUH,QDOORWKHUUHVSHFWVLQFOXGLQJGLYLGHQGULJKWVDQGWKH

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

GLVWULEXWLRQRISURSHUW\XSRQGLVVROXWLRQRUZLQGLQJXSRIWKH&RPSDQ\WKH&ODVV$FRPPRQVKDUHVDQG &ODVV%VXERUGLQDWHYRWLQJVKDUHVUDQNHTXDOO\ 7KHDWWULEXWHVRIWKH&ODVV%VXERUGLQDWHYRWLQJVKDUHVFRQWDLQVRFDOOHG³FRDWWDLO´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³WDNHRYHUELG´RULVRWKHUZLVHH[HPSW IURPDQ\UHTXLUHPHQWWKDWVXFKRIIHUEHPDGHWRDOORUVXEVWDQWLDOO\DOOKROGHUVRI&ODVV$FRPPRQ VKDUHVWKHFRDWWDLOSURYLVLRQVZLOOQRWDSSO\ 7KHDERYHLVDVXPPDU\RQO\5HIHUHQFHVKRXOGEHPDGHWRWKHDUWLFOHVRI7HFNDFRS\RIZKLFKPD\EH REWDLQHGRQ6('$5DWZZZVHGDUFRPRUE\ZULWLQJWRWKH&RUSRUDWH6HFUHWDU\

Securities subject to contractual restriction on transfer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¶VDFWXDONQRZOHGJHZLWKRXWLQTXLU\LVQRWGHDOLQJDWDUP¶V OHQJWKZLWKDQ\RIWKHSHUVRQVUHIHUUHGWRLQ L RU LL LQFRQQHFWLRQZLWKVHFXULWLHVRI7HFNLQHDFKFDVH DQ\ZKHUHLQWKHZRUOG7KHVHWUDQVIHUUHVWULFWLRQVDUHVXEMHFWWRFHUWDLQH[FHSWLRQV ,Q6HSWHPEHU)XOOEORRPVROGPLOOLRQRILWV&ODVV%VXERUGLQDWHYRWLQJVKDUHV$VDUHVXOW PLOOLRQVKDUHVUHPDLQVXEMHFWWRWKHUHVWULFWLRQVGHVFULEHGDERYHUHSUHVHQWLQJRI7HFN¶V RXWVWDQGLQJ&ODVV%VXERUGLQDWHYRWLQJVKDUHVDVDW)HEUXDU\

&5(',7)$&,/,7,(6

:HPDLQWDLQYDULRXVFRPPLWWHGDQGXQFRPPLWWHGFUHGLWIDFLOLWLHVIRUOLTXLGLW\DQGIRUWKHLVVXDQFHRI OHWWHUVRIFUHGLW$VDW'HFHPEHUZHRURXUVXEVLGLDULHVZHUHSDUW\WRYDULRXVFUHGLWDJUHHPHQWV HVWDEOLVKLQJWKHIROORZLQJFUHGLWIDFLOLWLHV FROOHFWLYHO\WKHFUHGLWIDFLOLWLHV 

„ $86ELOOLRQUHYROYLQJFUHGLWIDFLOLW\SURYLGHGE\DV\QGLFDWHRIOHQGHUVZKLFKPDWXUHVRQ 1RYHPEHU$VDW'HFHPEHU86PLOOLRQZDVRXWVWDQGLQJXQGHUWKH IDFLOLW\

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

„ $86ELOOLRQUHYROYLQJFUHGLWIDFLOLW\SURYLGHGE\DV\QGLFDWHRIOHQGHUVZKLFKPDWXUHVRQ -XQH$VDW'HFHPEHUWKHIDFLOLW\ZDVXQGUDZQ

„ $PLOOLRQXQFRPPLWWHGVWDQGE\OHWWHURIFUHGLWIDFLOLW\ZLWK%DQNRI0RQWUHDO$VDW 'HFHPEHUPLOOLRQRIOHWWHUVRIFUHGLWXQGHUWKHIDFLOLW\ZHUHRXWVWDQGLQJ

„ $PLOOLRQXQFRPPLWWHGFUHGLWIDFLOLW\ZLWK5R\DO%DQNRI&DQDGD$VDW'HFHPEHU PLOOLRQRIOHWWHUVRIFUHGLWXQGHUWKHIDFLOLW\ZHUHRXWVWDQGLQJ

„ $PLOOLRQXQFRPPLWWHGVWDQGE\OHWWHURIFUHGLWIDFLOLW\ZLWK&DQDGLDQ,PSHULDO%DQNRI &RPPHUFH$VDW'HFHPEHUPLOOLRQRIOHWWHUVRIFUHGLWXQGHUWKHIDFLOLW\ZHUH RXWVWDQGLQJ

„ $PLOOLRQXQFRPPLWWHGVWDQGE\OHWWHURIFUHGLWIDFLOLW\ZLWKWKH7RURQWR'RPLQLRQ%DQN$V DW'HFHPEHUPLOOLRQRIOHWWHUVRIFUHGLWXQGHUWKHIDFLOLW\ZHUHRXWVWDQGLQJ

„ $PLOOLRQXQFRPPLWWHGVWDQGE\OHWWHURIFUHGLWIDFLOLW\ZLWK%133DULEDV$VDW'HFHPEHU PLOOLRQRIOHWWHUVRIFUHGLWXQGHUWKHIDFLOLW\ZHUHRXWVWDQGLQJ

„ $PLOOLRQXQFRPPLWWHGVWDQGE\OHWWHURIFUHGLWIDFLOLW\ZLWK8QLWHG2YHUVHDV%DQN$VDW 'HFHPEHUPLOOLRQRIOHWWHUVRIFUHGLWXQGHUWKHIDFLOLW\ZHUHRXWVWDQGLQJ

„ $PLOOLRQXQFRPPLWWHGVWDQGE\OHWWHURIFUHGLWIDFLOLW\ZLWK1DWLRQDO%DQNRI&DQDGD$VDW 'HFHPEHUPLOOLRQRIOHWWHUVRIFUHGLWXQGHUWKHIDFLOLW\ZHUHRXWVWDQGLQJ

„ $PLOOLRQXQFRPPLWWHGVWDQGE\OHWWHURIFUHGLWIDFLOLW\ZLWK6XPLWRPR0LWVXL%DQNLQJ &RUSRUDWLRQ$VDW'HFHPEHUPLOOLRQRIOHWWHUVRIFUHGLWXQGHUWKHIDFLOLW\ZHUH RXWVWDQGLQJ

„ $PLOOLRQXQFRPPLWWHGVWDQGE\OHWWHURIFUHGLWIDFLOLW\ZLWK08)*%DQN/WG$VDW'HFHPEHU PLOOLRQRIOHWWHUVRIFUHGLWXQGHUWKHIDFLOLW\ZHUHRXWVWDQGLQJ

„ $86PLOOLRQ3HUIRUPDQFH6HFXULW\*XDUDQWHH,VVXDQFHDQG,QGHPQLW\$JUHHPHQWZLWK ([SRUW'HYHORSPHQW&DQDGD ('& UHJDUGLQJRXU5HG'RJPLQH$VDW'HFHPEHU 86PLOOLRQRIOHWWHUVRIFUHGLWLVVXHGE\WKLUGSDUW\EDQNVEXWVHFXUHGE\('&XQGHUWKLV DUUDQJHPHQWZHUHRXWVWDQGLQJ

„ $PLOOLRQ3HUIRUPDQFH6HFXULW\*XDUDQWHH,VVXDQFHDQG,QGHPQLW\$JUHHPHQWZLWK('& UHJDUGLQJRXUFRDORSHUDWLRQV$VDW'HFHPEHUPLOOLRQRIOHWWHUVRIFUHGLWLVVXHG E\WKLUGSDUW\EDQNVEXWVHFXUHGE\('&XQGHUWKLVDUUDQJHPHQWZHUHRXWVWDQGLQJ

„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¶QRWLFHDQGZHZRXOGEHUHTXLUHGWRGHOLYHUFDVKFROODWHUDOWRWKHEDQN FRXQWHUSDUW\LIZHZHUHXQDEOHWRUHSODFHDQ\RXWVWDQGLQJOHWWHUVRIFUHGLWSULRUWRWHUPLQDWLRQ7KHVH IDFLOLWLHVDUHW\SLFDOO\UHQHZHGRQDQDQQXDOEDVLV)URPWLPHWRWLPHDWRXUHOHFWLRQZHPD\UHGXFHWKH

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

IHHVSDLGWREDQNVLVVXLQJOHWWHUVRIFUHGLWE\PDNLQJVKRUWWHUPGHSRVLWVRIH[FHVVFDVKZLWKWKRVH EDQNV7KHGHSRVLWVHDUQDFRPSHWLWLYHUDWHRILQWHUHVWDQGDUHJHQHUDOO\UHIXQGDEOHRQGHPDQG$W 'HFHPEHUZHGLGQRWKDYHDQ\VXFKGHSRVLWV2XUVXUHW\ERQGVSURYLGHWKHLQVXUDQFHLVVXHU ZLWKWKHULJKWRQEHWZHHQDQGGD\V¶QRWLFHWRUHTXLUH7HFNWRREWDLQWKHUHWXUQRIDVXUHW\ERQGRU WRGHOLYHUFDVKFROODWHUDOLIZHDUHXQDEOHWRUHWXUQWKHERQG ,QDGGLWLRQWRWKHDERYHRQ1RYHPEHU&RPSDxtD0LQHUD7HFN4XHEUDGD%ODQFD6$ 4%6$  FORVHGD86ELOOLRQOLPLWHGUHFRXUVHSURMHFWILQDQFLQJIDFLOLW\WRIXQGWKHGHYHORSPHQWRIWKH4% SURMHFW3URMHFWILQDQFHORDQVLVVXHGXQGHUWKLVIDFLOLW\DUHVHFXUHGDJDLQVWWKHDVVHWVRI4%6$DQGDUH JXDUDQWHHGSUHFRPSOHWLRQRQDVHYHUDOEDVLVE\7HFN6XPLWRPR0HWDO0LQLQJ&R/WGDQG6XPLWRPR &RUSRUDWLRQpro rataWRWKHLUUHVSHFWLYHLQWHUHVWVLQWKH6HULHV$VKDUHVRI4%6$%RUURZLQJE\4%6$ XQGHUWKHSURMHFWILQDQFHDUUDQJHPHQWVLVVXEMHFWWRDQXPEHURIFRQGLWLRQVLQFOXGLQJWKHUHEHLQJQR HYHQWRIGHIDXOWXQGHUWKHDUUDQJHPHQWV 7KHRZQHURIWKH$QWDPLQDSURMHFW&0$LVSDUW\WRFUHGLWIDFLOLWLHV:HKROGDLQWHUHVWLQ&0$$V DW'HFHPEHURXUSURSRUWLRQDWHVKDUHRI&0$¶VERUURZLQJVXQGHULWVFUHGLWIDFLOLWLHVZDV86 PLOOLRQ7KH$QWDPLQDIDFLOLWLHVDUHQRQUHFRXUVHWRXVDQGWKHRWKHU$QWDPLQDSURMHFWVSRQVRUV 2XU86ELOOLRQDQG86ELOOLRQUHYROYLQJFUHGLWIDFLOLWLHVFRQWDLQVUHVWULFWLYHDQGILQDQFLDO FRYHQDQWVLQFOXGLQJ

„ DUHTXLUHPHQWWRPDLQWDLQDQHWGHEWWRWRWDOFDSLWDOL]DWLRQ QHWGHEWRYHUGHEWSOXVHTXLW\ UDWLR RIQRWPRUHWKDQ

„ DUHVWULFWLRQRQFHUWDLQRIRXUVXEVLGLDULHVLQFXUULQJLQGHEWHGQHVVRIPRUHWKDQDQDJJUHJDWHRI 86PLOOLRQXQOHVVWKHUHOHYDQWVXEVLGLDU\JXDUDQWHHVWKHFUHGLWIDFLOLW\

„ DSURYLVLRQUHTXLULQJSUHSD\PHQWLQWKHHYHQWRIDFKDQJHRIFRQWURODW7HFNDQG

„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mployee Retirement Income Security Act of 1974 %RUURZLQJXQGHURXUSULPDU\FRPPLWWHGFUHGLWIDFLOLWLHVLVVXEMHFWWRRXUFRPSOLDQFHZLWKWKHFRYHQDQWVLQ WKHUHOHYDQWDJUHHPHQWDQGRXUDELOLW\WRPDNHFHUWDLQUHSUHVHQWDWLRQVDQGZDUUDQWLHVDWWKHWLPHRIWKH ERUURZLQJUHTXHVW 2XUUHFODPDWLRQREOLJDWLRQVDUHLQFOXGHGLQWKH³2WKHU/LDELOLWLHVDQG3URYLVLRQV´OLQHLWHPRQRXUEDODQFH VKHHW$VVRFLDWHGOHWWHUVRIFUHGLWDQGVXUHW\ERQGVZRXOGQRWEHFRPHDOLDELOLW\XQOHVVWKHOHWWHURIFUHGLW RUVXUHW\ERQGLVGUDZQE\WKHEHQHILFLDU\ZKLFKGUDZLQJZRXOGEHWULJJHUHGLIZHGLGQRWSHUIRUPRXU REOLJDWLRQVXQGHUWKHUHOHYDQWFRQWUDFWRUSHUPLW,QWKHHYHQWRIDGUDZLQJZHZRXOGEHUHTXLUHGWR UHLPEXUVHWKHLVVXLQJEDQNRUVXUHW\ERQGSURYLGHUIRUWKHDPRXQWGUDZQRQWKHOHWWHURIFUHGLWRUVXUHW\ ERQGUHVSHFWLYHO\

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

7KHUHDUHQRUHVWULFWLRQVRQERUURZLQJRUDGGLWLRQDOFRYHQDQWVWULJJHUHGXQGHURXUFUHGLWIDFLOLWLHVDVD UHVXOWRIUDWLQJVGRZQJUDGHVDOWKRXJKWKHSULFLQJXQGHUFHUWDLQRIRXUFUHGLWIDFLOLWLHVYDULHVZLWKFUHGLW UDWLQJV7HFN¶VLQGHEWHGQHVVRXWVWDQGLQJXQGHUHDFKRIWKHFUHGLWIDFLOLWLHVUDQNVpari passuLQULJKWRI SD\PHQWZLWKWKHLQGHEWHGQHVVXQGHUHDFKRIWKHRWKHUFUHGLWIDFLOLWLHVDQGZLWKDOORI7HFN¶VRWKHU LQGHEWHGQHVVIRUERUURZHGPRQH\H[FHSWWKDWZKLFKLVVHFXUHGE\OLHQVSHUPLWWHGE\WKHFUHGLWIDFLOLWLHV DQGLQGHQWXUHV

38%/,&,1'(%7('1(66

$VRI'HFHPEHURXUSXEOLFLQGHEWHGQHVVFRQVLVWHGRIHLJKWVHULHVRIRXWVWDQGLQJQRWHV :HKDYHLVVXHGQRWHVXQGHUDQLQGHQWXUHGDWHG6HSWHPEHUDQLQGHQWXUHGDWHG$XJXVW  DVVXSSOHPHQWHGIURPWLPHWRWLPHLQFRQQHFWLRQZLWKDQRIIHULQJRIQRWHV DQGDQLQGHQWXUHGDWHG -XQH7KH%DQNRI1HZ

„ 86PLOOLRQRIQRWHVGXH

„ 86PLOOLRQRIQRWHVGXH

„ 86PLOOLRQRIQRWHVGXH

„ 86PLOOLRQRIQRWHVGXH

„ 86PLOOLRQRIQRWHVGXH

„ 86PLOOLRQRIQRWHVGXH

„ 86PLOOLRQRIQRWHVGXHDQG

„ 86PLOOLRQRIQRWHVGXH

 ,Q-XQHZHLVVXHG86PLOOLRQSULQFLSDODPRXQWRIVHQLRUXQVHFXUHGQRWHVGXH-XO\ $OVRLQ-XQHZHSXUFKDVHGSXUVXDQWWRRQHRUERWKRIFDVKWHQGHURIIHUVDQGSULYDWH SXUFKDVH86PLOOLRQRIQRWHVGXH86PLOOLRQRIQRWHVGXHDQG86 PLOOLRQRIQRWHVGXH,Q-XO\ZHUHGHHPHGDOORIWKHRXWVWDQGLQJQRWHVGXH WKDWZHUHQRWSXUFKDVHGDVDSDUWRIWKH-XQHWHQGHURIIHU  7KHLQGHQWXUHDQGLQGHQWXUHVVXSSOHPHQWLQJWKHLQGHQWXUHLQFOXGHDFRYHQDQWUHTXLULQJXVWR RIIHUWRSXUFKDVHWKHQRWHVLQWKHHYHQWRIDFKDQJHLQFRQWURO DVGHILQHGLQWKHUHODWHGVXSSOHPHQWDO LQGHQWXUHV DQGDOORIWKHERQGLQGHQWXUHVLQFOXGHUHVWULFWLYHFRYHQDQWVUHJDUGLQJOLHQVRQFHUWDLQDVVHWV RI7HFNDQGFHUWDLQUHVWULFWHGVXEVLGLDULHV DVGHILQHGLQWKHLQGHQWXUHV 7KHLQGHQWXUHVDOVRSURYLGHIRU FXVWRPDU\HYHQWVRIGHIDXOWZKLFKLQFOXGHQRQSD\PHQWRISULQFLSDORULQWHUHVWIDLOXUHWRFRPSO\ZLWK FRYHQDQWVWKHEDQNUXSWF\RULQVROYHQF\RI7HFNRUDPDWHULDOVXEVLGLDU\ILQDOMXGJPHQWVDJDLQVW7HFNRU DPDWHULDOVXEVLGLDU\LQH[FHVVRI86PLOOLRQIDLOXUHWRSD\RWKHULQGHEWHGQHVVLQH[FHVVRI86 PLOOLRQRUDQDFFHOHUDWLRQRIRWKHULQGHEWHGQHVVLQH[FHVVRI86PLOOLRQ 7KHDERYHLVDVXPPDU\RIWKHWHUPVRIRXUSXEOLFQRWHVDQGLVTXDOLILHGLQLWVHQWLUHW\E\UHIHUHQFHWRWKH LQGHQWXUHVXQGHUZKLFKWKHQRWHVZHUHLVVXHG$FRS\RIWKHLQGHQWXUHVFDQEHIRXQGXQGHU7HFN¶VSURILOH RQ6('$5DWZZZVHGDUFRP

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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¶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

 0RRG\¶V 6WDQGDUG  )LWFK '%56 3RRU¶V

6HQLRUXQVHFXUHGQRWHV   %DD  %%% %%% %%%

 $OORIRXURXWVWDQGLQJQRWHVDUHVHQLRUXQVHFXUHGQRWHV

$GHVFULSWLRQRIWKHUDWLQJFDWHJRULHVRIHDFKRIWKHUDWLQJDJHQFLHVLVVHWRXWEHORZ

022'<¶6,19(67256(59,&( 022'<¶6 

0RRG\¶VORQJWHUPFUHGLWUDWLQJVDUHRQDUDWLQJVFDOHWKDWUDQJHVIURP$DDWR&ZKLFKUHSUHVHQWVWKH UDQJHIURPKLJKHVWWRORZHVWTXDOLW\RIVHFXULWLHVUDWHG0RRG\¶V³%DD´UDWLQJDVVLJQHGWRRXUVHQLRU XQVHFXUHGQRWHVLVWKHIRXUWKKLJKHVWPDMRUUDWLQJRIPDMRUUDWLQJFDWHJRULHV8QGHU0RRG\¶V GHILQLWLRQVDQREOLJDWLRQUDWHG³%DD´LVVXEMHFWWRPRGHUDWHFUHGLWULVNFRQVLGHUHGPHGLXPJUDGHDQGDV VXFKPD\SRVVHVVFHUWDLQVSHFXODWLYHFKDUDFWHULVWLFV0RRG\¶VDSSHQGVQXPHULFDOPRGLILHUVIURPWR WRLWVORQJWHUPGHEWUDWLQJVZKLFKLQGLFDWHVZKHUHWKHREOLJDWLRQUDQNVZLWKLQLWVUDQNLQJFDWHJRU\ZLWK EHLQJWKHKLJKHVW

67$1'$5' 3225¶6 6 3 

6 3¶VORQJWHUPLVVXHFUHGLWUDWLQJVDUHRQDUDWLQJVFDOHWKDWUDQJHVIURP$$$WR'ZKLFKUHSUHVHQWV WKHUDQJHIURPKLJKHVWWRORZHVWTXDOLW\RIVHFXULWLHVUDWHG6 3¶V³%%%´UDWLQJDVVLJQHGWRRXUVHQLRU XQVHFXUHGQRWHVLVWKHIRXUWKKLJKHVWPDMRUUDWLQJRIPDMRUUDWLQJFDWHJRULHV8QGHU6 3¶VGHILQLWLRQV DQREOLJDWLRQUDWHG³%%%´H[KLELWVDGHTXDWHSURWHFWLRQSDUDPHWHUV+RZHYHUDGYHUVHHFRQRPLF FRQGLWLRQVRUFKDQJLQJFLUFXPVWDQFHVDUHPRUHOLNHO\WRZHDNHQWKHREOLJRU VFDSDFLW\WRPHHWLWVILQDQFLDO FRPPLWPHQWVRQWKHREOLJDWLRQ6 3XVHV³´RU³´GHVLJQDWLRQVWRLQGLFDWHWKHUHODWLYHVWDQGLQJRI VHFXULWLHVZLWKLQDSDUWLFXODUUDWLQJFDWHJRU\ 

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

),7&+5$7,1*6 ),7&+ 

)LWFK¶VORQJWHUPFUHGLWUDWLQJVDUHRQDVFDOHUDQJLQJIURP$$$WR'UHSUHVHQWLQJWKHUDQJHIURPKLJKHVW WRORZHVWTXDOLW\RIVHFXULWLHVUDWHG)LWFK¶V³%%%´UDWLQJDVVLJQHGWRRXUVHQLRUXQVHFXUHGQRWHVLVWKH IRXUWKKLJKHVWRIQLQHPDMRUUDWLQJFDWHJRULHV8QGHU)LWFK¶VGHILQLWLRQVDQREOLJDWLRQUDWHG³%%%´LVLQ WKHFDWHJRU\RIJRRGFUHGLWTXDOLW\DQGWKHUDWLQJLQGLFDWHVWKDWH[SHFWDWLRQVRIGHIDXOWULVNDUHFXUUHQWO\ ORZDQGWKHFDSDFLW\IRUSD\PHQWRIILQDQFLDOFRPPLWPHQWVLVFRQVLGHUHGDGHTXDWHEXWDGYHUVH EXVLQHVVRUHFRQRPLFFRQGLWLRQVDUHPRUHOLNHO\WRLPSDLUWKLVFDSDFLW\)LWFKPD\DSSHQGWKHPRGLILHU³´ RU³´WRDUDWLQJWRGHQRWHWKHUHODWLYHVWDWXVRIDVHFXULW\ZLWKLQDPDMRUUDWLQJFDWHJRU\

0251,1*67$5'20,1,21%21'5$7,1*6(59,&( '%56 

'%56¶VORQJWHUPFUHGLWUDWLQJVDUHRQDUDWLQJVFDOHWKDWUDQJHVIURP$$$WR'ZKLFKUHSUHVHQWVWKH UDQJHIURPKLJKHVWWRORZHVWTXDOLW\RIVHFXULWLHVUDWHG'%56¶V³%%%´UDWLQJDVVLJQHGWRRXUVHQLRU XQVHFXUHGQRWHVLVWKHIRXUWKKLJKHVWPDMRUUDWLQJRIWKHHLJKWPDMRUUDWLQJFDWHJRULHV8QGHU'%56¶ GHILQLWLRQVDQREOLJDWLRQUDWHG³%%%´LVRIDGHTXDWHFUHGLWTXDOLW\ZLWKWKHFDSDFLW\IRUSD\PHQWRI ILQDQFLDOREOLJDWLRQVFRQVLGHUHGDFFHSWDEOHKRZHYHUPD\EHYXOQHUDEOHWRIXWXUHHYHQWV$UHIHUHQFHWR ³KLJK´RU³ORZ´UHIOHFWVWKHUHODWLYHVWUHQJWKZLWKLQWKHUDWLQJFDWHJRU\

3$<0(17672$*(1&,(6

:HKDYHPDGHSD\PHQWVLQUHVSHFWRIFHUWDLQVHUYLFHVSURYLGHGWRXVE\HDFKRI0RRG\¶V6 3DQG)LWFK GXULQJWKHODVWWZR\HDUV 

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

0DUNHWIRU6HFXULWLHV

7UDGLQJ3ULFHDQG9ROXPH

2XU&ODVV$FRPPRQVKDUHVDUHOLVWHGRQWKH7RURQWR6WRFN([FKDQJHXQGHUWKHWLFNHUV\PERO7(&.$ 2XU&ODVV%VXERUGLQDWHYRWLQJVKDUHVDUHOLVWHGRQWKH7RURQWR6WRFN([FKDQJHXQGHUWKHWLFNHUV\PERO 7(&.%DQGRQWKH1HZ

7HFN5HVRXUFHV$  7HFN5HVRXUFHV%

'DWH +LJK   /RZ   9ROXPH  +LJK   /RZ   9ROXPH

-DQXDU\       

)HEUXDU\       

0DUFK       

$SULO       

0D\       

-XQH       

-XO\       

$XJXVW       

6HSWHPEHU       

2FWREHU       

1RYHPEHU       

'HFHPEHU        6RXUFH76; 

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

'LUHFWRUVDQG2IILFHUV

'LUHFWRUV

$VDW)HEUXDU\WKH'LUHFWRUVRI7HFNDUHDVIROORZV

1DPH&LW\3URYLQFH6WDWH 3ULQFLSDO2FFXSDWLRQVZLWKLQ3UHYLRXV)LYH

0D\DQN0$VKDU     3ULQFLSDO%LVRQ5HILQLQJ//&VLQFHSUHYLRXVO\SULQFLSDO 1RYHPEHU &DOJDU\$OEHUWD&DQDGD RI&DQ2LO;//&DQDGYLVRUIRU5HOLDQFH,QGXVWULHV/LPLWHG  0DQDJLQJ'LUHFWRUDQG&KLHI([HFXWLYH2IILFHURI&DLUQ,QGLD /LPLWHGIURP1RYHPEHUWR-XQH

4XDQ&KRQJ &KDLURIWKH&KLQD6RFLHW\IRU:RUOG7UDGH2UJDQL]DWLRQ $SULO %HLMLQJ&KLQD 6WXGLHVSUHYLRXVO\'HSXW\&KLQD,QWHUQDWLRQDO7UDGH 5HSUHVHQWDWLYH 9LFH0LQLVWHULDOOHYHO IURPWR

(GZDUG&'RZOLQJ      &KDLUPDQ&RSSHU0RXQWDLQ0LQLQJ&RPSDQ\DQG3RO\XV 6HSWHPEHU 0DWWDSRLVHWW0DVVDFKXVHWWV 3XEOLF-RLQW6WRFN&RPSDQ\DQGDGLUHFWRURI6650LQLQJ,QF  8QLWHG6WDWHV

(LLFKL)XNXGD   3UHVLGHQWRI6XPLWRPR0HWDO0LQLQJ&DQDGD/WGSUHYLRXVO\ $SULO 9DQFRXYHU%ULWLVK&ROXPELD KHOGYDULRXVRWKHUUROHVZLWKLQWKH6XPLWRPR0HWDO0LQLQJ &DQDGD JURXSVLQFH

7RUX+LJR   'LUHFWRU([HFXWLYH2IILFHUDQG*HQHUDO0DQDJHURIWKH 6HSWHPEHU 7RN\R-DSDQ &RUSRUDWH3ODQQLQJ'HSDUWPHQWRI6XPLWRPR0HWDO0LQLQJ&R  /WGSUHYLRXVO\KHOGYDULRXVRWKHUUROHVZLWKLQWKH6XPLWRPR 0HWDO0LQLQJJURXSVLQFH

1RUPDQ%.HHYLO,,,   9LFH&KDLURI7HFN3UHVLGHQWRI%R\GHO:DVWHZDWHU $SULO 9LFWRULD%ULWLVK&ROXPELD 7HFKQRORJLHV,QFSUHYLRXVO\&KLHI2SHUDWLQJ2IILFHURI &DQDGD 6XQSXPS6RODU,QFWRDQG3UHVLGHQWRI3RQFKR :LOFR[(QJLQHHULQJIURPWR

'RQDOG5/LQGVD\   3UHVLGHQWDQG&KLHI([HFXWLYH2IILFHURI7HFNVLQFH )HEUXDU\ 9DQFRXYHU%ULWLVK&ROXPELD &DQDGD

     7UDFH\/0F9LFDU 3DUWQHURI&$,&DSLWDO3DUWQHUVVLQFH 1RYHPEHU 9DQFRXYHU%ULWLVK&ROXPELD &DQDGD 

6KHLOD$0XUUD\   &KDLURIWKH%RDUGVLQFH)HEUXDU\&RUSRUDWH'LUHFWRU $SULO SUHYLRXVO\3UHVLGHQW([HFXWLYH9LFH3UHVLGHQWDQG*HQHUDO 7RURQWR2QWDULR&DQDGD &RXQVHODQG6HFUHWDU\RI&,)LQDQFLDO&RUS

.HQQHWK:3LFNHULQJ     &RUSRUDWH'LUHFWRUDQGSULYDWHLQWHUQDWLRQDOPLQLQJRSHUDWLRQV $SULO &KHPDLQXV%ULWLVK&ROXPELD DQGSURMHFWGHYHORSPHQWFRQVXOWDQWVLQFHSUHYLRXVO\93 &DQDGD 0DMRU3URGXFWV&ORVHG0LQHV 1RUWK$PHULFDQ$VVHWV%+3 %LOOLWRQ%DVH0HWDOV

8QD03RZHU      &RUSRUDWH'LUHFWRUSUHYLRXVO\&KLHI)LQDQFLDO2IILFHURI1H[HQ $SULO 9DQFRXYHU%ULWLVK&ROXPELD (QHUJ\8/&IURPWR &DQDGD

7LPRWK\56QLGHU      &KDLUPDQRI&XSULF&DQ\RQ&DSLWDO/3*3VLQFH $SULO 7XFVRQ$UL]RQD8QLWHG SUHYLRXVO\3UHVLGHQW &22)UHHSRUW0F0R5DQ&RSSHUDQG 6WDWHV *ROG,QF   0HPEHURIWKH([HFXWLYH&RPPLWWHH   0HPEHURIWKH$XGLW&RPPLWWHH 7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

  0HPEHURIWKH&RPSHQVDWLRQ 7DOHQW&RPPLWWHH   0HPEHURIWKH&RUSRUDWH*RYHUQDQFH 1RPLQDWLQJ&RPPLWWHH   0HPEHURIWKH6DIHW\ 6XVWDLQDELOLW\&RPPLWWHH   0HPEHURIWKH7HFKQLFDO&RPPLWWHH   0V0F9LFDUZDVDGLUHFWRURI*/0,QGXVWULHV/3 */0 DSRUWIROLRFRPSDQ\RI&$,&DSLWDO0DQDJHPHQW&R,Q-XO\DW WKHWLPH0V0F9LFDUZDVDGLUHFWRURI*/0DFRXUWRUGHUJUDQWHGE\WKH&RXUWRI4XHHQ¶V%HQFKRI$OEHUWDSODFHG*/0LQWR UHFHLYHUVKLSDQGDSSRLQWHGDUHFHLYHURI*/00V0F9LFDUZDVDGLUHFWRURI7HUYLWD&RUSRUDWLRQXQWLO'HFHPEHU,Q 'HFHPEHU7HUYLWDFRPSOHWHGDUHFDSLWDOL]DWLRQE\ZD\RIDFRXUWDSSURYHGSODQRIDUUDQJHPHQWUHGXFLQJ7HULYLWD¶VWRWDO GHEW

,QDGGLWLRQWRWKHDERYHFRPPLWWHHVGLUHFWRUVPD\SDUWLFLSDWHLQVXEFRPPLWWHHVRIWKH%RDUGIURPWLPH WRWLPHIRUPHGRQDQDGKRFEDVLVWRUHYLHZFHUWDLQPDWWHUVLQIXUWKHUGHWDLO(DFKRIWKH'LUHFWRUVLV HOHFWHGWRKROGRIILFHXQWLOWKHQH[WDQQXDOPHHWLQJRIWKH&RPSDQ\RUXQWLODVXFFHVVRULVGXO\HOHFWHGRU DSSRLQWHG7KHQH[WDQQXDOPHHWLQJRIWKH&RPSDQ\LVVFKHGXOHGWREHKHOGRQ$SULO

2IILFHUV

$VDW)HEUXDU\WKHRIILFHUVRI7HFNDUHDVIROORZV 

1DPH&LW\3URYLQFH6WDWHDQG 2IILFH+HOGZLWK7HFNDQG3ULQFLSDO2FFXSDWLRQV &RXQWU\RI5HVLGHQFH ZLWKLQ3UHYLRXV)LYH

6KHLOD$0XUUD\ &KDLURIWKH%RDUGVLQFH)HEUXDU\&RUSRUDWH'LUHFWRUSUHYLRXVO\ 7RURQWR2QWDULR&DQDGD 3UHVLGHQW([HFXWLYH9LFH3UHVLGHQWDQG*HQHUDO&RXQVHODQG6HFUHWDU\ RI&,)LQDQFLDO&RUS

1RUPDQ%.HHYLO,,, 9LFH&KDLURIWKH%RDUGVLQFH6HSWHPEHU3UHVLGHQWRI%R\GHO 9LFWRULD%ULWLVK&ROXPELD&DQDGD :DVWHZDWHU7HFKQRORJLHV,QFSUHYLRXVO\&KLHI2SHUDWLQJ2IILFHURI 6XQSXPS6RODU,QFWR

'RQDOG5/LQGVD\ 3UHVLGHQWDQG&KLHI([HFXWLYH2IILFHURI7HFN 9DQFRXYHU%ULWLVK&ROXPELD&DQDGD

'DOH($QGUHV   6HQLRU9LFH3UHVLGHQW%DVH0HWDOVVLQFH0D\SUHYLRXVO\6HQLRU 9DQFRXYHU%ULWLVK&ROXPELD&DQDGD 9LFH3UHVLGHQW&RSSHU

6KHK]DG%KDUPDO 6HQLRU9LFH3UHVLGHQW%DVH0HWDOV1RUWK$PHULFDDQG3HUXVLQFH 9DQFRXYHU%ULWLVK&ROXPELD&DQDGD 'HFHPEHUSUHYLRXVO\9LFH3UHVLGHQW1RUWK$PHULFDQ2SHUDWLRQV %DVH0HWDOV9LFH3UHVLGHQW3ODQQLQJ 'HYHORSPHQW%DVH0HWDOVDQG 9LFH3UHVLGHQW6WUDWHJ\ 'HYHORSPHQW&RSSHU

$OH[1&KULVWRSKHU 6HQLRU9LFH3UHVLGHQW([SORUDWLRQ3URMHFWV 7HFKQLFDO6HUYLFHVVLQFH 9DQFRXYHU%ULWLVK&ROXPELD&DQDGD -XO\SUHYLRXVO\9LFH3UHVLGHQW([SORUDWLRQ

+DUU\0&RQJHU ([HFXWLYH9LFH3UHVLGHQWDQG&KLHI2SHUDWLQJ2IILFHUVLQFH6HSWHPEHU :HVW9DQFRXYHU%ULWLVK&ROXPELD SUHYLRXVO\3UHVLGHQWDQG&KLHI2SHUDWLQJ2IILFHU$PHULFDV &DQDGD )UHHSRUW0F0R5DQ,QF

5pDO)ROH\ 6HQLRU9LFH3UHVLGHQW0DUNHWLQJDQG/RJLVWLFVVLQFH-DQXDU\ &DOJDU\$OEHUWD&DQDGD SUHYLRXVO\9LFH3UHVLGHQW0DUNHWLQJ&RDODQG%DVH0HWDOVDQG9LFH 3UHVLGHQW&RDO0DUNHWLQJ

$QGUHZ-*ROGLQJ   6HQLRU9LFH3UHVLGHQWVLQFH$XJXVWSUHYLRXVO\6HQLRU9LFH :HVW9DQFRXYHU%ULWLVK&ROXPELD 3UHVLGHQW&RUSRUDWH'HYHORSPHQW &DQDGD

1LFKRODV30+RRSHU 6HQLRU9LFH3UHVLGHQW&RUSRUDWH'HYHORSPHQWVLQFH6HSWHPEHU 7RURQWR2QWDULR&DQDGD SUHYLRXVO\0DQDJLQJ'LUHFWRU5RWKVFKLOG &R

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

1DPH&LW\3URYLQFH6WDWHDQG 2IILFH+HOGZLWK7HFNDQG3ULQFLSDO2FFXSDWLRQV &RXQWU\RI5HVLGHQFH ZLWKLQ3UHYLRXV)LYH

.LHURQ0F)DG\HQ 6HQLRU9LFH3UHVLGHQW(QHUJ\VLQFH0DUFKSUHYLRXVO\([HFXWLYH &DOJDU\$OEHUWD&DQDGD 9LFH3UHVLGHQWDQG3UHVLGHQW8SVWUHDP2LODQG*DV&HQRYXV(QHUJ\ ,QFDQGSULRUWRWKDW9LFH3UHVLGHQW1RQ2SHUDWHG-RLQW9HQWXUHV5R\DO 'XWFK6KHOOSOF

5RQDOG$0LOORV   6HQLRU9LFH3UHVLGHQWVLQFH2FWREHUSUHYLRXVO\6HQLRU9LFH 9DQFRXYHU%ULWLVK&ROXPELD&DQDGD 3UHVLGHQW)LQDQFHDQG&KLHI)LQDQFLDO2IILFHU

$QGUHZ.0LOQHU 6HQLRU9LFH3UHVLGHQWDQG&KLHI7UDQVIRUPDWLRQ2IILFHUVLQFH6HSWHPEHU 9DQFRXYHU%ULWLVK&ROXPELD&DQDGD SUHYLRXVO\6HQLRU9LFH3UHVLGHQW7HFKQRORJ\DQG,QQRYDWLRQDW 7HFNDQGSULRUWRWKDW9LFH3UHVLGHQW3URGXFWLRQ6\VWHPV%+3%LOOLWRQ /LPLWHG

+)UDVHU3KLOOLSV 6HQLRU9LFH3UHVLGHQW,QYHVWRU5HODWLRQVDQG6WUDWHJLF$QDO\VLVVLQFH 9DQFRXYHU%ULWLVK&ROXPELD&DQDGD 0DUFKSUHYLRXVO\0DQDJLQJ'LUHFWRU5%&&DSLWDO0DUNHWV

-RQDWKDQ+3ULFH 6HQLRU9LFH3UHVLGHQWDQG&KLHI)LQDQFLDO2IILFHUVLQFH2FWREHU /HDWKHUKHDG6XUUH\8QLWHG SUHYLRXVO\&KLHI7UDQVIRUPDWLRQ2IILFHUDW%+3 .LQJGRP

3HWHU&5R]HH 6HQLRU9LFH3UHVLGHQW&RPPHUFLDODQG/HJDO$IIDLUV :HVW9DQFRXYHU%ULWLVK&ROXPELD &DQDGD

5RELQ%6KHUHPHWD 6HQLRU9LFH3UHVLGHQW&RDOVLQFH0D\SUHYLRXVO\9LFH3UHVLGHQW 6SDUZRRG%ULWLVK&ROXPELD&DQDGD 2SHUDWLRQV&RDO

0DUFLD06PLWK 6HQLRU9LFH3UHVLGHQW6XVWDLQDELOLW\DQG([WHUQDO$IIDLUV 9DQFRXYHU%ULWLVK&ROXPELD &DQDGD

'HDQ&:LQVRU 6HQLRU9LFH3UHVLGHQWDQG&KLHI+XPDQ5HVRXUFHV2IILFHUVLQFH :HVW9DQFRXYHU%ULWLVK&ROXPELD 1RYHPEHUSUHYLRXVO\9LFH3UHVLGHQW+XPDQ5HVRXUFHV &DQDGD

,DQ.$QGHUVRQ 9LFH3UHVLGHQW/RJLVWLFV%DVH0HWDOVVLQFH2FWREHUSUHYLRXVO\ &ROHPDQ$OEHUWD&DQDGD *HQHUDO0DQDJHU)RUGLQJ5LYHU2SHUDWLRQVDQG*HQHUDO0DQDJHU/LQH &UHHN2SHUDWLRQV

*UHJ-%URXZHU 9LFH3UHVLGHQW7UDQVIRUPDWLRQVLQFH6HSWHPEHUSUHYLRXVO\9LFH .DPORRSV%ULWLVK&ROXPELD&DQDGD 3UHVLGHQW7HFKQRORJ\DQG,QQRYDWLRQ*HQHUDO0DQDJHU7HFKQRORJ\ DQG,QQRYDWLRQDQG*HQHUDO0DQDJHU7HFN+LJKODQG9DOOH\&RSSHU

'RXJODV%%URZQ 9LFH3UHVLGHQW&RUSRUDWH$IIDLUVVLQFH6HSWHPEHUSUHYLRXVO\ 'LUHFWRU3XEOLF$IIDLUVVLQFH 9DQFRXYHU%ULWLVK&ROXPELD&DQDGD

$QQH-&KDOPHUV 9LFH3UHVLGHQW5LVNDQG6HFXULW\DQG&KDLU0DWHULDOV6WHZDUGVKLS 9DQFRXYHU%ULWLVK&ROXPELD&DQDGD &RPPLWWHH

$PSDUR&RUQHMR 9LFH3UHVLGHQW&KLOH6XVWDLQDELOLW\DQG&RUSRUDWH$IIDLUVVLQFH 6DQWLDJR&KLOH 1RYHPEHUSUHYLRXVO\'LUHFWRU6RFLDO5HVSRQVLELOLW\DQG&RUSRUDWH $IIDLUV

/DUU\0'DYH\ 9LFH3UHVLGHQW0DLQWHQDQFHVLQFH'HFHPEHUSUHYLRXVO\9LFH &ROHPDQ$OEHUWD&DQDGD 3UHVLGHQW3ODQQLQJ 'HYHORSPHQW&RDOVLQFH0D\SUHYLRXVO\ 9LFH3UHVLGHQW'HYHORSPHQW&RDODQG*HQHUDO0DQDJHU(ONYLHZ&RDO 0LQH

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

1DPH&LW\3URYLQFH6WDWHDQG 2IILFH+HOGZLWK7HFNDQG3ULQFLSDO2FFXSDWLRQV &RXQWU\RI5HVLGHQFH ZLWKLQ3UHYLRXV)LYH

6HSDQWD'RUUL 9LFH3UHVLGHQW&RUSRUDWH'HYHORSPHQWVLQFH'HFHPEHU 7RURQWR2QWDULR&DQDGD SUHYLRXVO\9LFH3UHVLGHQW&RUSRUDWHDQG6WDNHKROGHU'HYHORSPHQW 7HUDQJD*ROG&RUSRUDWLRQ

-XVWLQH%)LVKHU 9LFH3UHVLGHQWDQG7UHDVXUHUVLQFH-XQHSUHYLRXVO\9LFH3UHVLGHQW 9DQFRXYHU%ULWLVK&ROXPELD&DQDGD *ROGPDQ6DFKV*URXS,QF

&-HIIUH\+DQPDQ 9LFH3UHVLGHQW6XVWDLQDEOH'HYHORSPHQW&RDOVLQFH'HFHPEHU 9DQFRXYHU%ULWLVK&ROXPELD&DQDGD SUHYLRXVO\9LFH3UHVLGHQW&RUSRUDWH$IIDLUVVLQFH0DUFK SUHYLRXVO\+HDGRI&RUSRUDWH$IIDLUVDQG'LUHFWRURI&RPPXQLFDWLRQV

$PEHU&-RKQVWRQ%LOOLQJV 9LFH3UHVLGHQW&RPPXQLWLHV*RYHUQPHQW$IIDLUVDQG+6(&6\VWHPV 9DQFRXYHU%ULWLVK&ROXPELD&DQDGD VLQFH2FWREHUSUHYLRXVO\&KLHI6XVWDLQDELOLW\2IILFHU7UHYDOL 0LQLQJ&RUSRUDWLRQ'LUHFWRU6XVWDLQDELOLW\6WUDWHJ\DQG&OLPDWH&KDQJH .30*$XVWUDOLDDQG+HDGRI6XVWDLQDELOLW\DQG5HSRUWLQJ6RXWK /LPLWHG

0&ROLQ-RXGULH 9LFH3UHVLGHQW%XVLQHVV'HYHORSPHQW 1RUWK9DQFRXYHU%ULWLVK&ROXPELD &DQDGD

5DOSK-/XWHV 9LFH3UHVLGHQW$VLD %HLMLQJ&KLQD

6FRWW(0DORQH\ 9LFH3UHVLGHQW(QYLURQPHQWVLQFH6HSWHPEHUSUHYLRXVO\/HDG 9DQFRXYHU%ULWLVK&ROXPELD&DQDGD +6($VVXUDQFHDQG5HYLHZDQG0DQDJHU+HDOWK6DIHW\(QYLURQPHQW &RPPXQLW\DW%+3

6WXDUW50F&UDFNHQ 9LFH3UHVLGHQW([SORUDWLRQDQG*HRVFLHQFHVLQFH$SULOSUHYLRXVO\ %HUNVKLUH8QLWHG.LQJGRP 5HJLRQDO+HDGRI'LVFRYHU\$IULFD(XURSHDQG$XVWUDODVLD$QJOR $PHULFDQSOF

.DUOD/0LOOV 9LFH3UHVLGHQW3URMHFW'HYHORSPHQWVLQFH1RYHPEHUSUHYLRXVO\ $QPRUH%ULWLVK&ROXPELD&DQDGD 'LUHFWRU3URMHFW'HYHORSPHQWDQG(QJLQHHULQJ

'RXJODV-3RZULH 9LFH3UHVLGHQW7D[ 9DQFRXYHU%ULWLVK&ROXPELD&DQDGD

&U\VWDO-3U\VWDL 9LFH3UHVLGHQWDQG&RUSRUDWH&RQWUROOHUVLQFH'HFHPEHU 1RUWK9DQFRXYHU%ULWLVK&ROXPELD SUHYLRXVO\'LUHFWRU)LQDQFH5HSRUWLQJDQG&RPSOLDQFH &DQDGD

$PDQGD55RELQVRQ &RUSRUDWH6HFUHWDU\VLQFH)HEUXDU\SUHYLRXVO\3DUWQHUDW)DVNHQ 9DQFRXYHU%ULWLVK&ROXPELD&DQDGD 0DUWLQHDX'X0RXOLQ//3

.DOHY5XEHUJ 9LFH3UHVLGHQWDQG&KLHI,QQRYDWLRQ2IILFHUVLQFH6HSWHPEHU :HVW9DQFRXYHU%ULWLVK&ROXPELD SUHYLRXVO\9LFH3UHVLGHQW7HFN'LJLWDO6\VWHPVDQG&KLHI,QIRUPDWLRQ &DQDGD 2IILFHU

'RQDOG-6DQGHU 9LFH3UHVLGHQW3ODQQLQJDQG,QQRYDWLRQ&RDOVLQFH'HFHPEHU )HUQLH%ULWLVK&ROXPELD&DQDGD SUHYLRXVO\*HQHUDO0DQDJHU(ONYLHZ2SHUDWLRQV

$QGUp'6WDUN 9LFH3UHVLGHQW0DUNHWLQJVLQFH-DQXDU\SUHYLRXVO\+HDGRI 7RURQWR2QWDULR&DQDGD 0DUNHWLQJ&RDODQG'LUHFWRU0DUNHWLQJ&RDO

.HLWK*6WHLQ   9LFH3UHVLGHQW0DMRU3URMHFWVVLQFH1RYHPEHUSUHYLRXVO\9LFH $QPRUH%ULWLVK&ROXPELD&DQDGD 3UHVLGHQW3URMHFW'HYHORSPHQWDQG9LFH3UHVLGHQW3URMHFWV

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

1DPH&LW\3URYLQFH6WDWHDQG 2IILFH+HOGZLWK7HFNDQG3ULQFLSDO2FFXSDWLRQV &RXQWU\RI5HVLGHQFH ZLWKLQ3UHYLRXV)LYH

1LNROD8]HODF 9LFH3UHVLGHQW/HJDOVLQFH'HFHPEHUSUHYLRXVO\6HQLRU&RXQVHO 1RUWK9DQFRXYHU%ULWLVK&ROXPELD VLQFH1RYHPEHUSUHYLRXVO\&RUSRUDWH&RXQVHO &DQDGD

$OHMDQGUR09DVTXH] 9LFH3UHVLGHQW6RXWK$PHULFDVLQFH$XJXVWSUHYLRXVO\KHOG 6DQWLDJR&KLOH YDULRXVSRVLWLRQVDW%+3LQFOXGLQJ$VVHW3UHVLGHQW3DPSD1RUWH9LFH 3UHVLGHQW7HFKQRORJ\0LQHUDOV$PHULFDVDQG*HQHUDO0DQDJHU

/DZUHQFH$:DWNLQV 9LFH3UHVLGHQW+HDOWKDQG6DIHW\ $EERWVIRUG%ULWLVK&ROXPELD &DQDGD

6FRWW5:LOVRQ   9LFH3UHVLGHQWVLQFH-XQHSUHYLRXVO\9LFH3UHVLGHQWDQG7UHDVXUHU 9DQFRXYHU%ULWLVK&ROXPELD&DQDGD   (DFKRI0HVVUV$QGUHV*ROGLQJ0LOORV6WHLQDQG:LOVRQDUHFXUUHQWO\LQDSKDVHGUHWLUHPHQWSURFHVVWKDWLVH[SHFWHGWR FRPSOHWHE\WKHHQGRIWKHILUVWTXDUWHURI

$XGLW&RPPLWWHH,QIRUPDWLRQ

0$1'$7(2)$8',7&200,77((

7KHIXOOWH[WRIRXU$XGLW&RPPLWWHH¶VPDQGDWHLVLQFOXGHGDV6FKHGXOH$WRWKLV$QQXDO,QIRUPDWLRQ )RUP

&20326,7,212)7+($8',7&200,77((

2XU$XGLW&RPPLWWHHFRQVLVWVRIIRXUPHPEHUV$OORIWKHPHPEHUVRIWKH&RPPLWWHHDUHLQGHSHQGHQW DQGILQDQFLDOO\OLWHUDWH7KHQDPHVUHOHYDQWHGXFDWLRQDQGH[SHULHQFHRIHDFK$XGLW&RPPLWWHHPHPEHU DUHRXWOLQHGEHORZ

Una M. Power (Chair) 0V3RZHULVDJUDGXDWHRI0HPRULDO8QLYHUVLW\%&RPP +RQRXUV DQGDOVRKROGV&3$&$DQG&)$ GHVLJQDWLRQV0V3RZHULVWKHIRUPHU&KLHI)LQDQFLDO2IILFHURI1H[HQ(QHUJ\8/&DQGKHOGYDULRXV RWKHUH[HFXWLYHSRVLWLRQVFRYHULQJILQDQFLDOUHSRUWLQJILQDQFLDOPDQDJHPHQWLQYHVWRUUHODWLRQVEXVLQHVV GHYHORSPHQWVWUDWHJLFSODQQLQJDQGLQYHVWPHQWDW1H[HQ6KHLVDOVRDGLUHFWRURIWKH%DQNRI1RYD 6FRWLDDQG7&(QHUJ\&RUSRUDWLRQ

Tracey L. McVicar 0V0F9LFDULVDJUDGXDWHRIWKH6DXGHU6FKRRORI%XVLQHVV %&RPP)LQDQFH 6KHKDVRYHU\HDUV RIH[SHULHQFHLQILQDQFHDQGLQYHVWPHQWEDQNLQJ6KHLVD&KDUWHUHG)LQDQFLDO$QDO\VW &)$,QVWLWXWH  DQG,QVWLWXWH&HUWLILHG'LUHFWRU ,QVWLWXWHRI&RUSRUDWH'LUHFWRUV 6KHVHUYHGDVWKHDXGLWFRPPLWWHHFKDLU RI%&+\GUR&RUSRUDWLRQIURPWRDQGVHUYHGDV7HFN¶VDXGLWFRPPLWWHHFKDLUIURPWR 

Mayank M. Ashar 0U$VKDULVDJUDGXDWHRIWKH8QLYHUVLW\RI7RURQWRKROGLQJPXOWLSOHGHJUHHVLQFOXGLQJD0DVWHURI (QJLQHHULQJDQGD0DVWHURI%XVLQHVV$GPLQLVWUDWLRQ0U$VKDUKDVH[WHQVLYHH[SHULHQFHLQLQWHUQDWLRQDO

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

RLODQGJDVLQGXVWU\WKURXJKYDULRXVVHQLRUH[HFXWLYHUROHVLQFOXGLQJDV0DQDJLQJ'LUHFWRUDQG&KLHI ([HFXWLYH2IILFHUDW&DLUQ,QGLD/LPLWHGIURP2FWREHUWR-XQHDV3UHVLGHQWDQG&KLHI ([HFXWLYH2IILFHURI,UYLQJ2LO/LPLWHGIURPWRDQGLQYDULRXVH[HFXWLYHUROHVDW6XQFRU(QHUJ\ ,QFIURPWR

Timothy R. Snider 0U6QLGHULVDJUDGXDWHRI1RUWKHUQ$UL]RQD8QLYHUVLW\ %6F +HLVFXUUHQWO\&KDLUPDQRI&XSULF &DQ\RQ&DSLWDO//&3ULRUWRWKLVKHKDGD\HDUFDUHHUZLWK3KHOSV'RGJH&RUSRUDWLRQDQGLWV VXFFHVVRU)UHHSRUW0F0R5DQ&RSSHUDQG*ROG,QFGXULQJZKLFKKHKHOGQXPHURXVWHFKQLFDO RSHUDWLQJDQGH[HFXWLYHSRVLWLRQVLQFOXGLQJ3UHVLGHQWDQG&KLHI2SHUDWLQJ2IILFHU 

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

35($33529$/32/,&,(6$1'352&('85(6

7KH$XGLW&RPPLWWHHKDVDGRSWHGSROLFLHVDQGSURFHGXUHVZLWKUHVSHFWWRWKHSUHDSSURYDORIDXGLWDQG SHUPLWWHGQRQDXGLWVHUYLFHVWREHSURYLGHGE\3ULFHZDWHUKRXVH&RRSHUV//3$OOQRQDXGLWVHUYLFHVDUH SUHDSSURYHGE\WKH&RPPLWWHHSULRUWRFRPPHQFHPHQW,QDGGLWLRQWKH&RPPLWWHHKDVSURKLELWHGWKH XVHRIWKHH[WHUQDODXGLWRUVIRUWKHIROORZLQJQRQDXGLWVHUYLFHV

„ ERRNNHHSLQJRURWKHUVHUYLFHVUHODWHGWRWKHDFFRXQWLQJUHFRUGVRUILQDQFLDOVWDWHPHQWV

„ ILQDQFLDOLQIRUPDWLRQV\VWHPVGHVLJQDQGLPSOHPHQWDWLRQ

„ DSSUDLVDORUYDOXDWLRQVHUYLFHVIDLUQHVVRSLQLRQVRUFRQWULEXWLRQLQNLQGUHSRUWV

„ DFWXDULDOVHUYLFHV

„ LQWHUQDODXGLWRXWVRXUFLQJVHUYLFHV

„ PDQDJHPHQWIXQFWLRQVRUKXPDQUHVRXUFHVIXQFWLRQV

„ EURNHURUGHDOHULQYHVWPHQWDGYLVRURULQYHVWPHQWEDQNLQJVHUYLFHV

„ OHJDOVHUYLFHV

„ H[SHUWVHUYLFHVXQUHODWHGWRWKHDXGLWDQG

„ DOORWKHUQRQDXGLWVHUYLFHVXQOHVVWKHUHLVDVWURQJILQDQFLDORURWKHUUHDVRQIRUH[WHUQDO DXGLWRUVWRSURYLGHWKRVHVHUYLFHV

$8',725¶6)((6

)RUWKH\HDUVHQGHG'HFHPEHUDQGZHSDLGWKHH[WHUQDODXGLWRUVPLOOLRQDQG PLOOLRQUHVSHFWLYHO\DVGHWDLOHGEHORZ



$XGLW6HUYLFHV    

$XGLW5HODWHG6HUYLFHV    

7D[)HHV    

$OO2WKHU)HHV    

1RWHV   ,QFOXGHVVHUYLFHVWKDWDUHSURYLGHGE\7HFN¶VH[WHUQDODXGLWRUVLQFRQQHFWLRQZLWKWKHDXGLWRIWKHILQDQFLDOVWDWHPHQWVDQG LQWHUQDOFRQWUROVRYHUILQDQFLDOUHSRUWLQJ   ,QFOXGHVDVVXUDQFHDQGUHODWHGVHUYLFHVWKDWDUHUHODWHGWRWKHSHUIRUPDQFHRIWKHDXGLWSHQVLRQSODQDQGVSHFLDOSXUSRVH DXGLWV   )HHVDUHIRUFRUSRUDWHDQGLQWHUQDWLRQDOH[SDWULDWHWD[VHUYLFHV   $PRXQWVUHODWHWRDQXPEHURISURMHFWVLQFOXGLQJJUHHQKRXVHJDVYHULILFDWLRQDQGVXVWDLQDELOLW\DVVXUDQFHDVZHOODV VXEVFULSWLRQVWRRQOLQHDFFRXQWLQJJXLGDQFHDQGSXEOLFDWLRQV  

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

2ZQHUVKLSE\'LUHFWRUVDQG2IILFHUVDQG,QWHUHVWVLQ0DWHULDO7UDQVDFWLRQV

$VDW)HEUXDU\WKH'LUHFWRUVDQGH[HFXWLYHRIILFHUVDVDJURXSEHQHILFLDOO\RZQRUH[HUFLVH FRQWURORUGLUHFWLRQGLUHFWO\RULQGLUHFWO\RYHUWKHIROORZLQJVKDUHVLVVXHGE\7HFN

 6KDUHVEHQHILFLDOO\RZQHGRURYHU $VDRIWKHWRWDORXWVWDQGLQJ ZKLFKFRQWURORUGLUHFWLRQLV RIWKHFODVV H[HUFLVHG

&ODVV$FRPPRQVKDUHV  

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

8SSHU&ROXPELD5LYHU%DVLQ /DNH5RRVHYHOW 

3ULRUWRRXUDFTXLVLWLRQLQRIDPDMRULW\LQWHUHVWLQ&RPLQFR/WG QRZ7HFN0HWDOV/WG WKH7UDLO VPHOWHUGLVFKDUJHGVPHOWHUVODJLQWRWKH&ROXPELD5LYHU7KHVHGLVFKDUJHVFRPPHQFHGSULRUWR7HFN 0HWDOV¶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¶VRYHUVLJKWFRVWVDQGSURYLGLQJIXQGLQJIRUWKHSDUWLFLSDWLRQRIRWKHUJRYHUQPHQWDO 7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

SDUWLHVWKH'HSDUWPHQWRI,QWHULRUWKH6WDWHRI:DVKLQJWRQDQGWZRQDWLYHWULEHVWKH&RQIHGHUDWHG 7ULEHVRIWKH&ROYLOOH1DWLRQ WKH&ROYLOOH7ULEH DQGWKH6SRNDQH7ULEH7HFN0HWDOVKDVJXDUDQWHHG7$,¶V SHUIRUPDQFHRIWKH6HWWOHPHQW$JUHHPHQW7$,KDVDOVRSODFHG86PLOOLRQLQHVFURZDVILQDQFLDO DVVXUDQFHIRULWVREOLJDWLRQVXQGHUWKH6HWWOHPHQW$JUHHPHQW:HKDYHDFFUXHGRXUHVWLPDWHRIWKHFRVWV RIWKH5,)6 7ZRFLWL]HQVRI:DVKLQJWRQ6WDWHDQGPHPEHUVRIWKH&ROYLOOH7ULEHFRPPHQFHGDQHQIRUFHPHQW SURFHHGLQJXQGHUWKHComprehensive Environmental Response, Compensation and Liability Act &(5&/$ WRHQIRUFHDQ(3$DGPLQLVWUDWLYHRUGHUDJDLQVW7HFNDQGWRVHHNILQHVDQGSHQDOWLHVDJDLQVW 7HFN0HWDOVIRUQRQFRPSOLDQFH6XEVHTXHQWO\DQDPHQGHGFRPSODLQWZDVILOHGLQ'LVWULFW&RXUWDGGLQJ WKH&ROYLOOH7ULEHDVDSODLQWLIIDQGVHHNLQJQDWXUDOUHVRXUFHGDPDJHVDQGFRVWV7HFN0HWDOVVRXJKWWR KDYHWKHFODLPVGLVPLVVHGRQWKHEDVLVWKDWWKHFRXUWODFNHGMXULVGLFWLRQEHFDXVHWKH&(5&/$VWDWXWHLQ 7HFN0HWDOV¶YLHZZDVQRWLQWHQGHGWRJRYHUQWKHGLVFKDUJHVRIDIDFLOLW\LQDQRWKHUFRXQWU\7KDWFDVH SURFHHGHGWKURXJK86)HGHUDO'LVWULFW&RXUWDQGWKH)HGHUDO&RXUWRI$SSHDOVIRUWKHWK&LUFXLW7KH WK&LUFXLWIRXQGWKDW&(5&/$FRXOGEHDSSOLHGWR7HFN0HWDOV¶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¶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en banc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

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

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

)LVKHULHV$FW

'XULQJWKHWKLUGTXDUWHURIZHUHFHLYHGQRWLFHIURP&DQDGLDQIHGHUDOSURVHFXWRUVRISRWHQWLDO FKDUJHVXQGHUWKHFisheries ActLQFRQQHFWLRQZLWKGLVFKDUJHVRIVHOHQLXPDQGFDOFLWHIURPVWHHOPDNLQJ FRDOPLQHVLQWKH(ON9DOOH\6LQFHFRPSOLDQFHOLPLWVDQGVLWHSHUIRUPDQFHREMHFWLYHVIRUVHOHQLXP DQGRWKHUFRQVWLWXHQWVDVZHOODVUHTXLUHPHQWVWRDGGUHVVFDOFLWHLQVXUIDFHZDWHUWKURXJKRXWWKH(ON 9DOOH\DQGLQWKH.RRFDQXVD5HVHUYRLUKDYHEHHQHVWDEOLVKHGXQGHUDUHJLRQDOSHUPLWLVVXHGE\WKH SURYLQFLDOJRYHUQPHQWZKLFKUHIHUHQFHVWKH3ODQ

,QWKHIRXUWKTXDUWHURI(QYLURQPHQWDQG&OLPDWH&KDQJH&DQDGDLVVXHGD'LUHFWLRQXQGHUWKH Fisheries Act WKH'LUHFWLRQ VHWWLQJRXWPHDVXUHVWREHWDNHQWRLPSURYHZDWHUTXDOLW\DQGSUHYHQWFDOFLWH GHSRVLWLRQLQWKH(ON9DOOH\LQZDWHUVDIIHFWHGE\7HFN¶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isheries ActSUHYLRXVO\QRWLILHGWR7HFN'LVFXVVLRQVZLWKUHVSHFWWRWKRVHFKDUJHV FRQWLQXHDQGWKHRXWFRPHRIWKHVHGLVFXVVLRQVLVXQFHUWDLQ,IDSUHWULDOUHVROXWLRQRIWKHSRWHQWLDO FKDUJHVLVQRWIHDVLEOHLWLVQRWSRVVLEOHWRDVVHVVWKHYLDELOLW\RISRWHQWLDOGHIHQFHVWRDQ\FKDUJHVDQG WKHLPSDFWRIDFRQYLFWLRQPD\EHPDWHULDO 7UDQVIHU$JHQWVDQG5HJLVWUDUV

$677UXVW&RPSDQ\ &DQDGD LVWKHWUDQVIHUDJHQWDQGUHJLVWUDUIRUWKH&ODVV$FRPPRQDQG&ODVV% VXERUGLQDWHYRWLQJVKDUHVDQGPDLQWDLQVUHJLVWHUVLQ9DQFRXYHU%ULWLVK&ROXPELDDQG7RURQWR2QWDULR 7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

0DWHULDO&RQWUDFWV

7KHIROORZLQJDUHWKHRQO\FRQWUDFWVHQWHUHGLQWRE\7HFNWKDWDUHPDWHULDOVWLOOLQHIIHFWDQGQRWHQWHUHG LQWRLQWKHRUGLQDU\FRXUVHRIEXVLQHVV

„ :DQHWD7UDQVPLVVLRQ$JUHHPHQWGDWHGDVRI-XO\EHWZHHQ7HFN0HWDOV/WGDQG %ULWLVK&ROXPELD+\GURDQG3RZHU$XWKRULW\ 6HH³Description of the Business –— Individual Operations –— Zinc –— Refining and Smelting –— Trail Operations´IRUPRUHGHWDLOV 

„ ,QGHQWXUHGDWHGDVRI-XQHEHWZHHQ7HFNDQG7KH%DQNRI1HZ

„ ,QGHQWXUHGDWHGDVRI$XJXVWEHWZHHQ7HFNDQG7KH%DQNRI1HZ

„ ,QGHQWXUHGDWHGDVRI6HSWHPEHUEHWZHHQ7HFNDQG7KH%DQNRI1HZ

3ULFHZDWHUKRXVH&RRSHUV//3&KDUWHUHG3URIHVVLRQDO$FFRXQWDQWVDUHWKH&RPSDQ\¶VDXGLWRUVDQG KDYHSUHSDUHGDQRSLQLRQZLWKUHVSHFWWRWKH&RPSDQ\¶VFRQVROLGDWHGILQDQFLDOVWDWHPHQWVDVDWDQGIRU WKH\HDUHQGHG'HFHPEHUDQGWKHHIIHFWLYHQHVVRIWKH&RPSDQ\¶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xtD0LQHUD $QWDPLQD6$LQZKLFK7HFNKROGVDVKDUHLQWHUHVW */-/WGKDVDFWHGDVDQLQGHSHQGHQWTXDOLILHGUHVHUYHVHYDOXDWRULQFRQQHFWLRQZLWKRXULQWHUHVWLQ)RUW +LOOV 0HVVUV0DULQKR*ROG$QJHOHV&DQFKLV0V6LQJOHWRQDQGWKHGHVLJQDWHGSURIHVVLRQDOVRI*/-/WG HDFKUHVSHFWLYHO\KROGEHQHILFLDOO\GLUHFWO\RULQGLUHFWO\OHVVWKDQRIDQ\FODVVRIWKH&RPSDQ\¶V VHFXULWLHV 'LVFORVXUH3XUVXDQWWRWKH5HTXLUHPHQWVRIWKH1HZ

7KH%RDUGDQGPDQDJHPHQWDUHFRPPLWWHGWROHDGHUVKLSLQFRUSRUDWHJRYHUQDQFH$VD&DQDGLDQ UHSRUWLQJLVVXHUZLWKVHFXULWLHVOLVWHGRQWKH7RURQWR6WRFN([FKDQJHZHKDYHLQSODFHDV\VWHPRI FRUSRUDWHJRYHUQDQFHSUDFWLFHVWKDWPHHWVRUH[FHHGVDOODSSOLFDEOH&DQDGLDQUHTXLUHPHQWV 1RWZLWKVWDQGLQJWKDW7HFNLVD³IRUHLJQSULYDWHLVVXHU´IRUSXUSRVHVRILWV1HZ

GRPHVWLFLVVXHUVGRQRWDSSO\WR7HFNWKH%RDUGKDVHVWDEOLVKHGDSROLF\WKDWDWOHDVWDPDMRULW\RILWV GLUHFWRUVPXVWVDWLVI\WKHGLUHFWRULQGHSHQGHQFHUHTXLUHPHQWVXQGHU6HFWLRQ$RIWKH1<6( FRUSRUDWHJRYHUQDQFHUXOHV7KH%RDUGDQQXDOO\UHYLHZVDQGPDNHVVXFKGHWHUPLQDWLRQDVWRWKH LQGHSHQGHQFHRIHDFKGLUHFWRUIRUERWK&DQDGLDQDQG1<6(SXUSRVHV 7KH1<6(UHTXLUHVWKDWDVDIRUHLJQSULYDWHLVVXHUWKDWLVQRWUHTXLUHGWRFRPSO\ZLWKDOORIWKH1<6(¶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xLD0LQHUD 4XHEUDGD%ODQFD6$IRUSD\PHQWVLQDJJUHJDWHRIDSSUR[LPDWHO\86ELOOLRQLQ:KLOHWKH %RDUGKDVGHWHUPLQHGWKDW0HVVUV)XNXGDDQG+LJRDUH³LQGHSHQGHQW´XQGHUWKH1<6(OLVWLQJVWDQGDUGV DSSOLFDEOHWRIRUHLJQSULYDWHLVVXHUVEHFDXVHRIWKHDPRXQWRIWKDWSD\PHQWWKH\ZRXOGQRWEH FRQVLGHUHG³LQGHSHQGHQW´XQGHUWKH1<6(OLVWLQJVWDQGDUGVLI7HFNZHUHD86GRPHVWLFLVVXHU 1RQ*$$30HDVXUHV

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³Use of Non-GAAP Financial Measures – Energy Business Unit – Operating Netback, Bitumen and Blended Bitumen Price Realized Reconciliations, and Adjusted Operating Costs´RIRXU 0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLVIRUWKH\HDUHQGHG'HFHPEHUZKLFKFDQEHIRXQG XQGHURXUSURILOHRQ6('$5DWZZZVHGDUFRP 

7HFN5HVRXUFHV/LPLWHG  3DJH   $QQXDO,QIRUPDWLRQ)RUP

$GGLWLRQDO,QIRUPDWLRQ

 $GGLWLRQDOLQIRUPDWLRQUHODWLQJWR7HFNPD\EHIRXQGXQGHURXUSURILOHRQ6('$5DW ZZZVHGDUFRP  $GGLWLRQDOLQIRUPDWLRQLQFOXGLQJGLUHFWRUV¶DQGRIILFHUV¶UHPXQHUDWLRQDQGLQGHEWHGQHVVSULQFLSDO KROGHUVRIWKH&RPSDQ\¶VVHFXULWLHVVHFXULWLHVDXWKRUL]HGIRULVVXDQFHXQGHUHTXLW\FRPSHQVDWLRQ SODQVRSWLRQVWRSXUFKDVHVHFXULWLHVDQGLQWHUHVWVRILQVLGHUVLQPDWHULDOWUDQVDFWLRQVLVFRQWDLQHG LQWKH0DQDJHPHQW3UR[\&LUFXODUWREHLVVXHGIRURXU$QQXDO0HHWLQJRI6KDUHKROGHUVWREHKHOG RQ$SULO$GGLWLRQDOILQDQFLDOLQIRUPDWLRQLVDOVRSURYLGHGLQRXUFRPSDUDWLYHILQDQFLDO VWDWHPHQWVDQGLQWKH0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLVIRUWKH\HDUHQGHG'HFHPEHU &RSLHVRIWKHVHGRFXPHQWVDUHDYDLODEOHXSRQUHTXHVWIURPRXU&RUSRUDWH6HFUHWDU\  8QOHVVRWKHUZLVHVWDWHGLQIRUPDWLRQFRQWDLQHGKHUHLQLVDVDW'HFHPEHU 

7HFN5HVRXUFHV/LPLWHG  3DJH   

6FKHGXOH$±$XGLW&RPPLWWHH&KDUWHU

7(&.5(6285&(6/,0,7(' $8',7&200,77((&+$57(5

$ *(1(5$/

 3XUSRVH

7KH$XGLW&RPPLWWHH WKH³&RPPLWWHH´ LVHVWDEOLVKHGE\WKH%RDUGRI'LUHFWRUV WKH³%RDUG´ RI 7HFN5HVRXUFHV/LPLWHG ³7HFN´ WR

L SURYLGHDQRSHQDYHQXHRIFRPPXQLFDWLRQEHWZHHQ7HFN¶VPDQDJHPHQWH[WHUQDODXGLWRUVDQG DGYLVRUVLQWHUQDODXGLWRUVDQGWKH%RDUG

LL DVVLVWWKH%RDUGLQLWVRYHUVLJKWRIWKH

D  LQWHJULW\DGHTXDF\DQGWLPHOLQHVVRI7HFN¶VILQDQFLDOUHSRUWLQJDQGGLVFORVXUHSUDFWLFHV

E  SURFHVVHV IRU LGHQWLI\LQJ 7HFN¶V SULQFLSDO ILQDQFLDO ULVNV DQG UHYLHZLQJ 7HFN¶V LQWHUQDO FRQWUROV\VWHPVWRHQVXUHWKDWWKH\DUHDGHTXDWHWRHQVXUHIDLUFRPSOHWHDQGDFFXUDWH ILQDQFLDOUHSRUWLQJ

F  FRPSOLDQFHZLWKOHJDODQGUHJXODWRU\UHTXLUHPHQWVUHODWHGWRILQDQFLDOUHSRUWLQJ

G  DFFRXQWLQJ SULQFLSOHV SROLFLHV DQG SURFHGXUHV XVHG E\ PDQDJHPHQW LQ GHWHUPLQLQJ VLJQLILFDQWHVWLPDWHV

H  DQWLIUDXGSURJUDPVDQGFRQWUROVLQFOXGLQJPDQDJHPHQW¶VLGHQWLILFDWLRQRIIUDXGULVNVDQG LPSOHPHQWDWLRQRIDQWLIUDXGPHDVXUHV

I  PHFKDQLVPV IRU HPSOR\HHV WR UHSRUW FRQFHUQV DERXW DFFRXQWLQJ SROLFLHV DQG ILQDQFLDO UHSRUWLQJ

J  HQJDJHPHQWLQGHSHQGHQFHDQGSHUIRUPDQFHRI7HFN¶VH[WHUQDODQGLQWHUQDODXGLWRUVDQG DQ\RWKHUDGYLVRUVDQG

K  LQWHUQDODXGLWPDQGDWHLQWHUQDODXGLWSODQVLQWHUQDODXGLWDQG6DUEDQHV2[OH\ 62; DXGLW SURJUDPVDQGUHVXOWVRILQWHUQDODXGLWVDQG62;FRPSOLDQFHDXGLWVSHUIRUPHGE\7HFN¶V LQWHUQDODXGLWGHSDUWPHQW

 LY DVVLVWWKH%RDUGLQIXOILOOLQJLWVUHVSRQVLELOLWLHVWRRYHUVHHDQGPRQLWRUWKHPDQDJHPHQWDQG JRYHUQDQFHRI7HFN¶VYDULRXVSHQVLRQSODQV ³3HQVLRQ0DWWHUV´ DQG

Y SHUIRUPDQ\RWKHUDFWLYLWLHVFRQVLVWHQWZLWKWKLV&KDUWHU7HFN¶VE\ODZVDQGDSSOLFDEOHODZVDV WKH&RPPLWWHHRU%RDUGGHHPVQHFHVVDU\RUDSSURSULDWH

 5HVSRQVLELOLWLHV

7KH&RPPLWWHH¶VUROHLVRQHRIRYHUVLJKWDQGLWLVWRDFWLQDQDGYLVRU\FDSDFLW\WRWKH%RDUG

0DQDJHPHQW LV UHVSRQVLEOH IRU SUHSDULQJ 7HFN¶V ILQDQFLDO VWDWHPHQWV DQG RWKHU ILQDQFLDO LQIRUPDWLRQ IRU WKH IDLU SUHVHQWDWLRQ RI WKH LQIRUPDWLRQ VHW IRUWK LQ WKH ILQDQFLDO VWDWHPHQWV LQ DFFRUGDQFHZLWK&DQDGLDQJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHV ³*$$3´ZKLFKIRU7HFNLV ,QWHUQDWLRQDO )LQDQFLDO 5HSRUWLQJ 6WDQGDUGV  IRU HVWDEOLVKLQJ GRFXPHQWLQJ PDLQWDLQLQJ DQG

 7HFN5HVRXUFHV/LPLWHG  $   

UHYLHZLQJV\VWHPVRILQWHUQDOFRQWURODQGIRUPDLQWDLQLQJWKHDSSURSULDWHDFFRXQWLQJDQGILQDQFLDO UHSRUWLQJSULQFLSOHVDQGSROLFLHVGHVLJQHGWRDVVXUHFRPSOLDQFHZLWKDFFRXQWLQJVWDQGDUGVDQGDOO DSSOLFDEOHODZVDQGUHJXODWLRQV7KHH[WHUQDOILQDQFLDODXGLWRUV¶UHVSRQVLELOLW\LVWRDXGLW7HFN¶V ILQDQFLDOVWDWHPHQWVDQGSURYLGHDQRSLQLRQEDVHGRQWKHLUDXGLWFRQGXFWHGLQDFFRUGDQFHZLWK &DQDGLDQJHQHUDOO\DFFHSWHGDXGLWLQJVWDQGDUGVWKDWWKHILQDQFLDOVWDWHPHQWVSUHVHQWIDLUO\LQDOO PDWHULDOUHVSHFWV7HFN¶VILQDQFLDOSRVLWLRQUHVXOWVRIRSHUDWLRQVDQGFDVKIORZVLQDFFRUGDQFHZLWK *$$3

,QDFFRUGDQFHZLWKWKH6DUEDQHV2[OH\$FWRI6HFWLRQWKHH[WHUQDODXGLWRUVDUHDOVR UHVSRQVLEOHIRUSURYLGLQJDQRSLQLRQRQWKHHIIHFWLYHQHVVRI7HFN¶VLQWHUQDOFRQWUROVRYHUILQDQFLDO UHSRUWLQJ

7KH &RPPLWWHH LV UHVSRQVLEOH IRU UHFRPPHQGLQJ WR WKH %RDUG IRU UHFRPPHQGDWLRQ WR 7HFN¶V VKDUHKROGHUV WKH DSSRLQWPHQW RI WKH H[WHUQDO DXGLWRU DQG IRU DSSURYLQJ WKH H[WHUQDO DXGLWRU¶V UHPXQHUDWLRQ7KHH[WHUQDODXGLWRUVKDOOUHSRUWGLUHFWO\WRWKH&RPPLWWHHDVWKHH[WHUQDODXGLWRU LV DFFRXQWDEOH WR WKH %RDUG DV UHSUHVHQWDWLYHV RI 7HFN¶V VKDUHKROGHUV 7KH &RPPLWWHH LV UHVSRQVLEOHIRUWKHHYDOXDWLRQDQGRYHUVLJKWRIWKHZRUNRIWKHH[WHUQDODXGLWRUDQGWKHUHVROXWLRQ RIDQ\GLVDJUHHPHQWVEHWZHHQPDQDJHPHQWDQGWKHH[WHUQDODXGLWRUUHJDUGLQJILQDQFLDOUHSRUWLQJ DQG62;DVVHVVPHQW,WLVQRWWKHGXW\RUUHVSRQVLELOLW\RIWKH&RPPLWWHHRUDQ\RILWVPHPEHUV WRSODQRUFRQGXFWDQ\W\SHRIDXGLWRUDFFRXQWLQJUHYLHZRUSURFHGXUH

:LWKUHVSHFWWR3HQVLRQ0DWWHUVPDQDJHPHQWLVUHVSRQVLEOHIRUWKHGD\WRGD\DGPLQLVWUDWLYHDQG VSRQVRUVKLS UHVSRQVLELOLWLHV ZLWK UHVSHFW WR SHQVLRQ PDWWHUV 7KH &RPPLWWHH LV UHVSRQVLEOH IRU RYHUVHHLQJ WKH DFWLYLWLHV RI WKH ([HFXWLYH 3HQVLRQ &RPPLWWHH DQG WKH VHQLRU PDQDJHPHQW SHUVRQQHOUHVSRQVLEOHIRUWKHVHDFWLYLWLHV

% $87+25,7< $1' 5(63216,%,/,7,(6 :,7+ 5(63(&7 72 ),1$1&,$/ 5(3257,1* $1' 5(/$7('0$77(56

,QSHUIRUPLQJLWVRYHUVLJKWUHVSRQVLELOLWLHVWKH&RPPLWWHHVKDOO

 5HYLHZWKHDSSRLQWPHQWVRI7HFN¶V&)2DQGDQ\RWKHUNH\ILQDQFLDOH[HFXWLYHVLQYROYHGLQWKH ILQDQFLDOUHSRUWLQJSURFHVV

 5HYLHZ ZLWK PDQDJHPHQW WKH H[WHUQDO DXGLWRU DQG WKH ,QWHUQDO $XGLWRU WKH DGHTXDF\ DQG HIIHFWLYHQHVVRI7HFN¶VV\VWHPVRILQWHUQDOFRQWUROWKHVWDWXVRIPDQDJHPHQW¶VLPSOHPHQWDWLRQRI LQWHUQDODXGLWUHFRPPHQGDWLRQVDQGWKHUHPHGLDWLRQVWDWXVRIDQ\UHSRUWHGFRQWUROGHILFLHQFLHV 3DUWLFXODUHPSKDVLVZLOOEHSODFHGRQWKRVHGHILFLHQFLHVHYDOXDWHGDVHLWKHUDVLJQLILFDQWGHILFLHQF\ RU D PDWHULDO ZHDNQHVV ZKLFK KDYH EHHQ LGHQWLILHG DV D UHVXOW RI DXGLWV DQGRU GXULQJ DQQXDO FRQWUROVFRPSOLDQFHWHVWLQJDVUHTXLUHGXQGHU62;OHJLVODWLRQ

 5HYLHZ 7HFN¶V SURFHVV IRU WKH &(2 DQG &)2 FHUWLILFDWLRQV UHTXLUHG E\ DSSOLFDEOH VHFXULWLHV UHJXODWLRQVZLWKUHVSHFWWR7HFN¶VILQDQFLDOVWDWHPHQWVGLVFORVXUHVDQGLQWHUQDOFRQWUROVLQFOXGLQJ DQ\VLJQLILFDQWFKDQJHVRUGHILFLHQFLHVLQVXFKFRQWUROV

 5HYLHZZLWKPDQDJHPHQWDQGWKHH[WHUQDODXGLWRUWKHDQQXDODXGLWHGILQDQFLDOVWDWHPHQWVDQG PDQDJHPHQW¶VGLVFXVVLRQDQGDQDO\VLVDQGUHFRPPHQGWKHLUDSSURYDOE\WKHIXOO%RDUGSULRUWR WKHLUUHOHDVHDQGRUILOLQJZLWKWKHDSSOLFDEOHUHJXODWRU\DJHQFLHV

 5HYLHZZLWKPDQDJHPHQWDQGWKHH[WHUQDODXGLWRUWKHXQDXGLWHGTXDUWHUO\ILQDQFLDOVWDWHPHQWV DVVRFLDWHG PDQDJHPHQW¶V GLVFXVVLRQ DQG DQDO\VLV DQG LQWHULP HDUQLQJV QHZV UHOHDVHV DQG DSSURYH WKHP RQ EHKDOI RI WKH %RDUG SULRU WR WKHLU UHOHDVH DQGRU ILOLQJ ZLWK WKH DSSOLFDEOH UHJXODWRU\DJHQFLHV

 $VDSSURSULDWHUHYLHZRWKHUQHZVUHOHDVHVDQGUHSRUWLQJGRFXPHQWVWKDWLQFOXGHPDWHULDOQRQ SXEOLF ILQDQFLDO LQIRUPDWLRQ SULRU WR WKHLU SXEOLF GLVFORVXUH E\ ILOLQJ RU GLVWULEXWLRQ RI WKHVH

 7HFN5HVRXUFHV/LPLWHG  $   

GRFXPHQWV6XFKUHYLHZLQFOXGHVILQDQFLDOPDWWHUVUHTXLUHGWREHUHSRUWHGXQGHUDSSOLFDEOHOHJDO RUUHJXODWRU\UHTXLUHPHQWVEXWGRHVQRWQHFHVVDULO\LQFOXGHQHZVUHOHDVHVWKDWFRQWDLQILQDQFLDO LQIRUPDWLRQLQFLGHQWDOWRWKHDQQRXQFHPHQWRIDFTXLVLWLRQVILQDQFLQJVRURWKHUWUDQVDFWLRQV

 (QVXUHWKDWDGHTXDWHSURFHGXUHVDUHLQSODFHIRUWKHUHYLHZRI7HFN¶VSXEOLFGLVFORVXUHRIILQDQFLDO LQIRUPDWLRQ H[WUDFWHG RU GHULYHG IURP 7HFN¶V ILQDQFLDO VWDWHPHQWV RWKHU WKDQ WKH GLVFORVXUH GRFXPHQWVUHIHUUHGWRDERYHDQGSHULRGLFDOO\DVVHVVWKHDGHTXDF\RIWKHVHSURFHGXUHV

 5HYLHZ7HFN¶VILQDQFLDOUHSRUWLQJDQGDFFRXQWLQJVWDQGDUGVDQGSULQFLSOHVDQGVLJQLILFDQWFKDQJHV LQVXFKVWDQGDUGVRUSULQFLSOHVRULQWKHLUDSSOLFDWLRQLQFOXGLQJNH\DFFRXQWLQJGHFLVLRQVDIIHFWLQJ WKHILQDQFLDOVWDWHPHQWVDOWHUQDWLYHVWKHUHWRDQGWKHUDWLRQDOHIRUGHFLVLRQVPDGH

 5HYLHZWKHTXDOLW\DQGDSSURSULDWHQHVVQRWMXVWWKHDFFHSWDELOLW\RIWKHDFFRXQWLQJSROLFLHVDQG WKHFODULW\RIILQDQFLDOLQIRUPDWLRQDQGGLVFORVXUHSUDFWLFHVDGRSWHGE\7HFNLQFOXGLQJFRQVLGHUDWLRQ RIWKHH[WHUQDODXGLWRU¶VMXGJPHQWVDERXWWKHTXDOLW\DQGDSSURSULDWHQHVVRI7HFN¶VDFFRXQWLQJ SROLFLHV7KLVUHYLHZVKDOOLQFOXGHGLVFXVVLRQVZLWKWKHH[WHUQDODXGLWRUZLWKRXWWKHSUHVHQFHRI PDQDJHPHQW

 5HYLHZZLWKPDQDJHPHQWWKHH[WHUQDODXGLWRUDQGWKH,QWHUQDO$XGLWRUVLJQLILFDQWUHODWHGSDUW\ WUDQVDFWLRQVDQGSRWHQWLDOFRQIOLFWVRILQWHUHVW

 5HYLHZZLWKPDQDJHPHQW7HFN¶VWD[SROLF\DQGPDWHULDOGHYHORSPHQWVLQ7HFN¶VWD[DIIDLUV

 5HYLHZ ZLWK PDQDJHPHQW 7HFN¶V SULYDF\ DQG F\EHU VHFXULW\ ULVN H[SRVXUH DQG WKH SROLFLHV SURFHGXUHVDQGPLWLJDWLRQSODQVLQSODFHWRSURWHFWWKHVHFXULW\DQGLQWHJULW\RI7HFN¶VLQIRUPDWLRQ V\VWHPVDQGGDWDLQFOXGLQJFULVLVPDQDJHPHQWDQGEXVLQHVVFRQWLQXLW\SODQV

 7RDVVLVWWKH%RDUGZLWKLWVUHFRPPHQGDWLRQVWRVKDUHKROGHUVUHFRPPHQG D WKHH[WHUQDODXGLWRU WREHQRPLQDWHGWRH[DPLQH7HFN¶VDFFRXQWVDQGILQDQFLDOVWDWHPHQWVDQGSUHSDUHDQGLVVXHDQ DXGLWRU¶VUHSRUW RQ WKHPRU SHUIRUP RWKHU DXGLW UHYLHZ RU DWWHVWVHUYLFHV IRU7HFN DQG E  WKH FRPSHQVDWLRQRIWKHH[WHUQDODXGLWRU

 $SSURYHDOODXGLWHQJDJHPHQWWHUPVDQGIHHV

 5HYLHZZLWKPDQDJHPHQWDQGWKHH[WHUQDODXGLWRUDQGDSSURYHWKHDQQXDOH[WHUQDODXGLWSODQDQG UHVXOWV RI DQG DQ\ SUREOHPV RU GLIILFXOWLHV HQFRXQWHUHG GXULQJ DQ\ H[WHUQDO DXGLWV DQG PDQDJHPHQW¶VUHVSRQVHVWKHUHWR

 5HFHLYHWKHUHSRUWVRIWKHH[WHUQDODXGLWRURQFRPSOHWLRQRIWKHTXDUWHUO\UHYLHZVDQGWKHDQQXDO DXGLW

 0RQLWRUWKHLQGHSHQGHQFHRIWKHH[WHUQDODXGLWRUVE\UHYLHZLQJDOOUHODWLRQVKLSVEHWZHHQ7HFN¶V H[WHUQDODXGLWRUDQGDOODXGLWQRQDXGLWDQGDVVXUDQFHZRUNSHUIRUPHGIRU7HFNE\WKHH[WHUQDO DXGLWRURQDWOHDVWDTXDUWHUO\EDVLV7KH&RPPLWWHHZLOOUHFHLYHDQDQQXDOZULWWHQFRQILUPDWLRQRI LQGHSHQGHQFHIURPWKHH[WHUQDODXGLWRU

 3UHDSSURYHDOODXGLWQRQDXGLWDQGDVVXUDQFHVHUYLFHVSURYLGHGE\WKHLQGHSHQGHQWDXGLWRUSULRU WRWKHFRPPHQFHPHQWRIDQ\VXFKHQJDJHPHQW7KH&RPPLWWHHPD\GHOHJDWHWKHUHVSRQVLELOLW\ IRUDSSURYLQJQRQDXGLWVHUYLFHVWRWKH&KDLURUDQRWKHUPHPEHURIWKH&RPPLWWHHDSSRLQWHGE\ WKH&KDLUZKHUHWKHIHHGRHVQRWH[FHHG7KH&RPPLWWHHZLOOUHYLHZDVXPPDU\RIDOO DXGLWQRQDXGLWDQGDVVXUDQFHZRUNSHUIRUPHGIRU7HFNDWOHDVWWZLFHSHU\HDU

 5HYLHZ DQG DSSURYH KLULQJ SROLFLHV UHJDUGLQJ SDUWQHUV HPSOR\HHV RU IRUPHU SDUWQHUV DQG HPSOR\HHVRIWKHSUHVHQWRUIRUPHUH[WHUQDODXGLWRURI7HFNLQFOXGLQJ

D  WKHDSSRLQWPHQWRIDQ\HPSOR\HHRUIRUPHUHPSOR\HHRIWKHSUHVHQWDQGIRUPHUH[WHUQDO DXGLWRUWRDVHQLRUILQDQFLDOPDQDJHPHQWSRVLWLRQZLWK7HFNDQG  7HFN5HVRXUFHV/LPLWHG  $   

E  PDQDJHPHQW¶VUHSRUWVRIWKHSURILOHVRIDOOLQGLYLGXDOVKLUHGGXULQJWKHSDVW\HDUZKRZHUH HPSOR\HGE\WKHSUHVHQWDQGIRUPHUH[WHUQDODXGLWRUDWDQ\WLPHGXULQJWKHWZR\HDUVSULRU WREHLQJKLUHGE\7HFN

 5HYLHZ DQG HYDOXDWH WKH TXDOLILFDWLRQV DQG SHUIRUPDQFH RI WKH H[WHUQDO DXGLWRU DQQXDOO\ ,Q FRQGXFWLQJLWVUHYLHZDQGHYDOXDWLRQWKH&RPPLWWHHVKRXOG

D  REWDLQDQGUHYLHZDQ\UHSRUWE\WKHH[WHUQDODXGLWRUGHVFULELQJDQ\PDWHULDOLVVXHVUDLVHG E\WKHPRVWUHFHQWLQWHUQDOTXDOLW\FRQWUROUHYLHZRUSHHUUHYLHZRIWKHILUPRUE\DQ\ LQTXLU\RULQYHVWLJDWLRQZLWKUHVSHFWWRWKHILUPE\SURIHVVLRQDORUUHJXODWRU\DXWKRULWLHV DQGDQ\VWHSVWDNHQWRGHDOZLWKDQ\VXFKLVVXHV

E  UHYLHZDQGHYDOXDWHWKHSHUIRUPDQFHRIWKHOHDGDXGLWSDUWQHUVDQGWKHHQJDJHPHQWWHDP DVDZKROHDQG

F  WDNHLQWRDFFRXQWWKHRSLQLRQVRIPDQDJHPHQW7HFN¶VLQWHUQDODXGLWRUV RURWKHUSHUVRQQHO LQYROYHGZLWKWKHDQQXDODXGLWDQGTXDUWHUO\UHYLHZV DQGFRPPLWWHHPHPEHUV

 5HYLHZDQGDSSURYHWKHIXQFWLRQVRI7HFN¶V$XGLWDQG2SHUDWLRQDO5HYLHZ'HSDUWPHQWLQFOXGLQJ

D  LWVPDQGDWHDXWKRULW\DQGRUJDQL]DWLRQDOUHSRUWLQJOLQHV

E  LWVDQQXDODQGORQJHUWHUPLQWHUQDODXGLWSODQVEXGJHWVDQGVWDIILQJ

F  LWVSHUIRUPDQFHDQG

G  WKHDSSRLQWPHQWUHDVVLJQPHQWRUUHSODFHPHQWRI7HFN¶VFKLHIDXGLWH[HFXWLYH

7KLVUHYLHZZLOOLQFOXGHGLVFXVVLRQVZLWKWKH,QWHUQDO$XGLWRUZLWKRXWWKHSUHVHQFHRIPDQDJHPHQW RUWKHH[WHUQDODXGLWRU

 5HYLHZ7HFN¶VSURFHGXUHVDQGHVWDEOLVKSURFHGXUHVIRUWKH&RPPLWWHHIRUWKH

D  UHFHLSWUHWHQWLRQDQGUHVROXWLRQRIFRPSODLQWVUHJDUGLQJDFFRXQWLQJLQWHUQDODFFRXQWLQJ FRQWUROVILQDQFLDOGLVFORVXUHRUDXGLWLQJPDWWHUVDQG

E  FRQILGHQWLDO DQRQ\PRXV VXEPLVVLRQ E\ HPSOR\HHV UHJDUGLQJ TXHVWLRQDEOH DFFRXQWLQJ DXGLWLQJRUILQDQFLDOUHSRUWLQJDQGGLVFORVXUHPDWWHUVRUYLRODWLRQVRI7HFN¶V&RGHRI(WKLFV RUDVVRFLDWHGSROLFLHV

 5HYLHZWKHDGHTXDF\RI7HFN¶VEDQNOLQHVRIFUHGLWDQGJXLGHOLQHVIRUWKHLQYHVWPHQWRIFDVK

 5HYLHZZLWKVHQLRUILQDQFLDOPDQDJHPHQWWKHH[WHUQDODXGLWRU7HFN¶VFKLHIDXGLWH[HFXWLYHDQG VXFKRWKHUVDVWKH&RPPLWWHHGHHPVDSSURSULDWHWKHUHVXOWVRIRSHUDWLRQDOUHYLHZVDXGLWV62; FRQWUROVFRPSOLDQFHDXGLWVDQGDQ\SUREOHPVRUGLIILFXOWLHVHQFRXQWHUHGGXULQJWKHDXGLWV

& $87+25,7<$1'5(63216,%,/,7,(6:,7+5(63(&7723(16,210$77(56

,QDVVLVWLQJWKH%RDUGLQIXOILOOLQJLWVUHVSRQVLELOLWLHVZLWKUHVSHFWWRWKHPDQDJHPHQWDQGJRYHUQDQFHRI 7HFN¶VSHQVLRQSODQVWKH&RPPLWWHHVKDOO

 :LWKUHVSHFWWR7HFN¶VUROHDVSODQVSRQVRU

D  5HYLHZ DQG RYHUVHH WKH LPSOHPHQWDWLRQ RI WKH GHVLJQ RI 7HFN¶V SHQVLRQ SODQV WKH FRYHUDJHDIIRUGHGE\WKHSODQVDQGFKDQJHVWRWKHSODQV

 7HFN5HVRXUFHV/LPLWHG  $   

E  5HYLHZ WKH IXQGLQJ SROLFLHV IRU 7HFN¶V GHILQHG EHQHILW SODQV DQG ZKHUH DSSURSULDWH UHFRPPHQGWKH%RDUG¶VDSSURYDORIWKHVHSROLFLHV

F  5HYLHZWKHOHYHORI7HFN¶VFRQWULEXWLRQVWRLWVGHILQHGFRQWULEXWLRQSODQVDQGDQ\SURSRVHG FKDQJHV WKHUHWR DQG ZKHUH DSSURSULDWH UHFRPPHQG DSSURYDO RI VXFK FKDQJHV WR WKH %RDUG

G  5HYLHZSURSRVDOVIRUWKHZLQGXSRUSDUWLDOZLQGXSRIDQ\RI7HFN¶VSHQVLRQSODQVKDYLQJ UHJDUGWRDQ\FROOHFWLYHEDUJDLQLQJDQGUHJXODWRU\UHTXLUHPHQWVDQGPDNLQJDSSURSULDWH UHFRPPHQGDWLRQVLQUHVSHFWWKHUHRIWRWKH%RDUG

 :LWKUHVSHFWWR7HFN¶VUROHDVSODQDGPLQLVWUDWRU

D  2YHUVHH DQG PRQLWRU WKH DXWKRULW\ GHOHJDWHG WR PDQDJHPHQW¶V ([HFXWLYH 3HQVLRQ &RPPLWWHHWRDGPLQLVWHUHDFKRIWKHSHQVLRQSODQVLQDFFRUGDQFHZLWKUHOHYDQWSHQVLRQ OHJLVODWLRQWKHWHUPVRIWKHSODQVDQGDOORWKHUUHTXLUHPHQWVRIODZ

E  5HYLHZFRPSOLDQFHZLWKPLQLPXPIXQGLQJUHTXLUHPHQWV LIDQ\ SUHVFULEHGE\DSSOLFDEOH SHQVLRQOHJLVODWLRQDQGWKHSROLFLHVDQGSURFHGXUHVLQSODFHLQUHVSHFWWKHUHRILQFOXGLQJ UHTXLVLWLRQLQJDQGUHYLHZLQJDFWXDULDOUHSRUWV

F  5HYLHZDQGPRQLWRUWKHLQYHVWPHQWRISHQVLRQIXQGDVVHWV LQWKHFDVHRIDGHILQHGEHQHILW SODQ LQFOXGLQJWKHSROLFLHVDQGSURFHGXUHVLQSODFHLQUHVSHFWWKHUHRI

G  5HYLHZ DQG PRQLWRU WKH VXIILFLHQF\ DQG DSSURSULDWHQHVV RI WKH LQYHVWPHQW FKRLFHV DYDLODEOHWRSODQPHPEHUVRIWKHGHILQHGFRQWULEXWLRQSODQVDQGWKHFRPPXQLFDWLRQDQG HGXFDWLRQDOPDWHULDOVSURYLGHGWRSODQPHPEHUV

H  5HYLHZDQGPRQLWRUWKHSHUIRUPDQFHRIWKHLQYHVWPHQWPDQDJHUVFKRVHQE\PDQDJHPHQW IRU7HFN¶VSHQVLRQSODQVLQFOXGLQJWKHSURFHVVHVWDEOLVKHGIRUWKHVHOHFWLRQUHWHQWLRQRU UHSODFHPHQWRIDQ\LQYHVWPHQWPDQDJHURUDGYLVRUV

' &200,77((&20326,7,21

 0HPEHU4XDOLILFDWLRQV

7KH&RPPLWWHHVKDOOFRQVLVWRIDWOHDVWWKUHHGLUHFWRUV$OOPHPEHUVRIWKH&RPPLWWHHVKDOOEH LQGHSHQGHQWGLUHFWRUVDQGVKDOOEHVXIILFLHQWO\ILQDQFLDOO\OLWHUDWHWRHQDEOHWKHPWRGLVFKDUJHWKHLU UHVSRQVLELOLWLHVLQDFFRUGDQFHZLWKDQ\DSSOLFDEOHFRUSRUDWHVHFXULWLHVRURWKHUOHJLVODWLRQRUDQ\ DSSOLFDEOHUXOHUHJXODWLRQLQVWUXPHQWSROLF\JXLGHOLQHRULQWHUSUHWDWLRQXQGHUVXFKOHJLVODWLRQDQG WKH UHTXLUHPHQWV RI WKH VWRFN H[FKDQJHV RQ ZKLFK 7HFN¶V VHFXULWLHV WUDGH LQFOXGLQJ 1DWLRQDO ,QVWUXPHQW)LQDQFLDOOLWHUDF\PHDQVWKHDELOLW\WRUHDGDQGXQGHUVWDQGDEDODQFHVKHHW LQFRPHVWDWHPHQWFDVKIORZVWDWHPHQWDQGDVVRFLDWHGQRWHVZKLFKUHSUHVHQWDEUHDGWKDQGOHYHO RIFRPSOH[LW\RIDFFRXQWLQJLVVXHVWKDWDUHJHQHUDOO\FRPSDUDEOHWRWKHEUHDGWKDQGFRPSOH[LW\RI WKH LVVXHV WKDW FDQ UHDVRQDEO\ EH H[SHFWHG WR EH UDLVHG E\ 7HFN¶V FRQVROLGDWHG ILQDQFLDO VWDWHPHQWV

$WOHDVWRQHPHPEHURIWKH&RPPLWWHHVKDOOKDYHDFFRXQWLQJRUUHODWHGILQDQFLDOPDQDJHPHQW H[SHUWLVHWKDWDOORZVWKDWPHPEHUWRUHDGDQGXQGHUVWDQGILQDQFLDOVWDWHPHQWVDQGWKHUHODWHG QRWHVDWWDFKHGWKHUHWRLQDFFRUGDQFHZLWK*$$3

 7HFN5HVRXUFHV/LPLWHG  $   

 0HPEHU$SSRLQWPHQWDQG5HPRYDO

7KHPHPEHUVRIWKH&RPPLWWHHVKDOOEHDSSRLQWHGDQQXDOO\DWWKHWLPHRIHDFKDQQXDOPHHWLQJRI VKDUHKROGHUVDQGVKDOOKROGRIILFHXQWLOWKHQH[WDQQXDOPHHWLQJRUXQWLOWKH\FHDVHWREHGLUHFWRUV RI7HFN

 4XRUXP

$TXRUXPIRUWKH&RPPLWWHHVKDOOEHDPDMRULW\RIWKHPHPEHUV

( 352&('85(6$1'27+(50$77(56

 6WUXFWXUHDQG2SHUDWLRQV

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

 ,Q&DPHUD0HHWLQJV

,Q SHUIRUPLQJ LWV RYHUVLJKW UHVSRQVLELOLWLHV WKH &RPPLWWHH VKDOO PHHW VHSDUDWHO\ ZLWK WKH &KLHI )LQDQFLDO 2IILFHU ³&)2´  RWKHU VHQLRU ILQDQFLDO PDQDJHPHQW UHTXHVWHG E\ WKH &RPPLWWHH WKH H[WHUQDODXGLWRUDQG7HFN¶VFKLHIDXGLWH[HFXWLYH WKH³,QWHUQDO$XGLWRU´ DWOHDVWIRXUWLPHVSHU \HDURUPRUHIUHTXHQWO\DVUHTXLUHGWRGLVFXVVPDWWHUVWKDWWKH&RPPLWWHHRUWKHVHLQGLYLGXDOVRU JURXSVEHOLHYHVKRXOGEHGLVFXVVHGSULYDWHO\ZLWKWKH&RPPLWWHH

 /LWLJDWLRQDQG(WKLFV0DWWHUV

2QDTXDUWHUO\EDVLVWKH*HQHUDO&RXQVHODQGWKH,QWHUQDO$XGLWRUVKDOOUHSRUWDQ\OLWLJDWLRQFODLP RURWKHUFRQWLQJHQF\WKDWFRXOGKDYHDVLJQLILFDQWHIIHFWRQ7HFN¶VILQDQFLDOUHVXOWVRUGLVFORVXUH DQG DQ\ UHDO RU VXVSHFWHG LQFLGHQWV RI IUDXG WKHIW RU YLRODWLRQV RI 7HFN¶V &RGH RI (WKLFV RU DVVRFLDWHGSROLFLHVWKDWKDYHEHHQUHSRUWHGWRPDQDJHPHQWRUWRWKHLQWHUQDODXGLWGHSDUWPHQW 7KH&RPPLWWHHVKDOOUHYLHZDQ\VXFKUHSRUWVRUVLPLODUUHSRUWVVXEPLWWHGE\RWKHUHPSOR\HHVRU PHPEHUV RI PDQDJHPHQW DQG LI GHHPHG QHFHVVDU\ UHSRUW VXFK PDWWHUV UHODWHG WR DXGLWLQJ DFFRXQWLQJDQGILQDQFLDOUHSRUWLQJDQGRUGLVFORVXUHWRWKHIXOO%RDUG

 'LVFORVXUH&RQWUROV

7KH&KDLURIWKH&RPPLWWHHRUDQDSSRLQWHHVKDOOPHHWDWOHDVWRQFHSHU\HDUZLWKPDQDJHPHQW¶V 'LVFORVXUH&RPPLWWHHWRUHYLHZ7HFN¶VGLVFORVXUHFRQWUROVDQGSURFHGXUHV

 0DQDJHPHQW&RPPLWWHH0LQXWHV

&RSLHVRIWKHPLQXWHVRIPHHWLQJVRIPDQDJHPHQW¶V'LVFORVXUH&RPPLWWHHDQG([HFXWLYH3HQVLRQ &RPPLWWHHVKDOOEHSURYLGHGWRWKH&RPPLWWHHXSRQWKHLUUHTXHVW

 7HFN5HVRXUFHV/LPLWHG  $   

 ,QYHVWLJDWLRQVDQG$GYLVRUV

7KH &RPPLWWHH VKDOO FRQGXFW RU DXWKRUL]H LQYHVWLJDWLRQV LQWR DQ\ PDWWHU WKDW WKH &RPPLWWHH EHOLHYHVLVZLWKLQWKHVFRSHRILWVUHVSRQVLELOLWLHV7KH&RPPLWWHHKDVWKHDXWKRULW\WR D UHWDLQ LQGHSHQGHQW FRXQVHO DFFRXQWDQWV DXGLWRUV RU RWKHU DGYLVRUV WR DVVLVW LW LQ WKH FRQGXFW RI DQ\ LQYHVWLJDWLRQRURWKHUZLVHWRDVVLVWLWLQWKHGLVFKDUJHRILWVGXWLHVDWWKHH[SHQVHRI7HFN E VHW DQGSD\WKHFRPSHQVDWLRQRIDQGHQJDJHPHQWWHUPVIRUDQ\VXFKDGYLVRUVUHWDLQHGE\LWDQG F  FRPPXQLFDWHGLUHFWO\ZLWKWKHLQWHUQDODQGH[WHUQDODXGLWRUVDQGDGYLVRUV

 0DQQHURI5HSRUWLQJWRWKH%RDUG

7KH&RPPLWWHHVKDOOIL[LWVRZQSURFHGXUHVNHHSUHFRUGVRILWVSURFHHGLQJVDQGUHSRUWWRWKH %RDUG ZKHQ WKH &RPPLWWHH PD\ GHHP DSSURSULDWH EXW QRW ODWHU WKDQ WKH QH[W PHHWLQJ RI WKH %RDUG   7KH %RDUG VKDOO EH SURPSWO\ DGYLVHG RI DQ\ GHFLVLRQV WDNHQ E\ WKH &RPPLWWHH DQG PLQXWHVRIDQ\&RPPLWWHHPHHWLQJZLOOEHSURYLGHGWRWKH%RDUG

 5HYLHZRIWKH&KDUWHU

7KH&RPPLWWHHVKDOODQQXDOO\DVVHVVWKHDGHTXDF\RIWKLV&KDUWHUDQGUHFRPPHQGDQ\FKDQJHV WRWKH%RDUGIRUDSSURYDOWDNLQJLQWRDFFRXQWDQ\DSSOLFDEOHOHJLVODWLYHDQGUHJXODWRU\UHTXLUHPHQWV DQGEHVWSUDFWLFHJXLGHOLQHV

 $QQXDO5HYLHZDQG$VVHVVPHQW

7KH &RPPLWWHH¶V SHUIRUPDQFH LQFOXGLQJ LWV FRPSOLDQFH ZLWK WKLV &KDUWHU VKDOO EH HYDOXDWHG DQQXDOO\LQDFFRUGDQFHZLWKDSURFHVVDSSURYHGE\WKH%RDUGDQGWKHUHVXOWVRIWKDWHYDOXDWLRQ VKDOOEHUHSRUWHGWRWKH&RPPLWWHHDQGWRWKH%RDUG

 &RPPLWWHH5HSRUWV

D  $GYLVHWKH%RDUGHLWKHURUDOO\RULQZULWLQJRIDQ\

L DFFRXQWLQJGLVFORVXUHRUILQDQFHUHODWHGPDWWHUVWKDWWKH&RPPLWWHHEHOLHYHVKDYHRU FRXOGKDYHDPDWHULDOHIIHFWRQWKHILQDQFLDOFRQGLWLRQRUDIIDLUVRI7HFN

LL SHQVLRQUHODWHGPDWWHUVWKDWWKH&RPPLWWHHEHOLHYHVKDYHRUFRXOGKDYHDPDWHULDOHIIHFW RQWKHILQDQFLDOFRQGLWLRQRUDIIDLUVRI7HFNDQGRUDQ\RILWVSHQVLRQSODQVDQG

LLL PDNH DSSURSULDWH UHFRPPHQGDWLRQV WR WKH %RDUG LQ UHVSHFW RI DQ\ PDWWHUV UHTXLULQJ %RDUGDSSURYDO

E  7KH&KDLURIWKH&RPPLWWHHVKDOOSUHSDUHRUFDXVHWREHSUHSDUHGDQDXGLWFRPPLWWHHUHSRUW WREHLQFOXGHGLQ7HFN¶VDQQXDOPDQDJHPHQWSUR[\FLUFXODUZKLFKUHSRUWVKDOOEHDSSURYHGE\ WKH&RPPLWWHH

 7HFN5HVRXUFHV/LPLWHG  $   

6FKHGXOH%±5HSRUWRI0DQDJHPHQWDQG'LUHFWRUVRQ5HVHUYHV 'DWDDQG2WKHU,QIRUPDWLRQ 0DQDJHPHQWRI7HFN5HVRXUFHV/LPLWHG WKH³&RPSDQ\´ LVUHVSRQVLEOHIRUWKHSUHSDUDWLRQDQG GLVFORVXUHRILQIRUPDWLRQZLWKUHVSHFWWRWKH&RPSDQ\¶VRLODQGJDVDFWLYLWLHVLQDFFRUGDQFHZLWK VHFXULWLHVUHJXODWRU\UHTXLUHPHQWV7KLVLQIRUPDWLRQLQFOXGHVUHVHUYHVGDWD ,QGHSHQGHQWTXDOLILHGUHVHUYHVHYDOXDWRUVKDYHHYDOXDWHGWKH&RPSDQ\¶VUHVHUYHVGDWD7KH UHSRUWVRIWKHLQGHSHQGHQWTXDOLILHGUHVHUYHVHYDOXDWRUVZLOOEHILOHGZLWKVHFXULWLHVUHJXODWRU\ DXWKRULWLHVFRQFXUUHQWO\ZLWKWKLVUHSRUW 7KH$XGLW&RPPLWWHHRUWKH7HFKQLFDO&RPPLWWHHRIWKH%RDUGRI'LUHFWRUVRIWKH&RPSDQ\KDV D  UHYLHZHGWKH&RPSDQ\¶VSURFHGXUHVIRUSURYLGLQJLQIRUPDWLRQWRWKHLQGHSHQGHQW TXDOLILHGUHVHUYHVHYDOXDWRUV E  PHWZLWKWKHLQGHSHQGHQWTXDOLILHGUHVHUYHVHYDOXDWRUVWRGHWHUPLQHZKHWKHUDQ\ UHVWULFWLRQVDIIHFWHGWKHDELOLW\RIWKHLQGHSHQGHQWTXDOLILHGUHVHUYHVHYDOXDWRUVWRUHSRUW ZLWKRXWUHVHUYDWLRQDQG F  UHYLHZHGWKHUHVHUYHVGDWDZLWKPDQDJHPHQWDQGWKHLQGHSHQGHQWTXDOLILHGUHVHUYHV HYDOXDWRUV 7KH7HFKQLFDO&RPPLWWHHRIWKH%RDUGRI'LUHFWRUVKDVUHYLHZHGWKH&RPSDQ\¶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

Donald R. Lindsay  Mayank M. Ashar 6LJQHG 'RQDOG5/LQGVD\  6LJQHG 0D\DQN0$VKDU 3UHVLGHQWDQG&KLHI([HFXWLYH2IILFHU 'LUHFWRU Jonathan H. Price Edward C. Dowling

6LJQHG -RQDWKDQ+3ULFH  6LJQHG (GZDUG&'RZOLQJ 6HQLRU9LFH3UHVLGHQWDQG&KLHI)LQDQFLDO 'LUHFWRU 2IILFHU 'DWH)HEUXDU\    



 7HFN5HVRXUFHV/LPLWHG  %   

6FKHGXOH&±5HSRUWRQ5HVHUYHV'DWDE\,QGHSHQGHQW4XDOLILHG 5HVHUYHV(YDOXDWRURU$XGLWRU

7RWKH%RDUGRI'LUHFWRUVRI7HFN5HVRXUFHV/LPLWHG WKH&RPSDQ\ 

 :HKDYHHYDOXDWHGWKH&RPSDQ\¶VUHVHUYHVGDWDDVDW'HFHPEHU7KHUHVHUYHVGDWD DUHHVWLPDWHVRISURYHGUHVHUYHVDQGSUREDEOHUHVHUYHVDQGUHODWHGIXWXUHQHWUHYHQXHDVDW 'HFHPEHUHVWLPDWHGXVLQJIRUHFDVWSULFHVDQGFRVWV  7KHUHVHUYHVGDWDDUHWKHUHVSRQVLELOLW\RIWKH&RPSDQ\¶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

      /RFDWLRQRI    5HVHUYHV    &RXQWU\RU  ,QGHSHQGHQW4XDOLILHG (IIHFWLYH'DWHRI )RUHLJQ 1HW3UHVHQW9DOXHRI)XWXUH1HW5HYHQXH 5HVHUYHV(YDOXDWRURU (YDOXDWLRQ *HRJUDSKLF  EHIRUHLQFRPHWD[HVGLVFRXQWUDWH±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

*/-/WG&DOJDU\$OEHUWD&DQDGD)HEUXDU\

“Originally Signed By´ 7LP5)UHHERUQ3(QJ 9LFH3UHVLGHQWDQG&KLHI)LQDQFLDO2IILFHU



 7HFN5HVRXUFHV/LPLWHG  &   

6FKHGXOH'±/LVWRI7HFKQLFDO5HSRUWV

$VUHTXLUHGE\)RUP)XQGHU1DWLRQDO,QVWUXPHQWWKHIROORZLQJWDEOHVHWVRXWWKHWLWOH GDWHDQGDXWKRU V RIWKHFXUUHQW1DWLRQDO,QVWUXPHQWWHFKQLFDOUHSRUWIRUHDFKRI7HFN¶VPDWHULDO SURSHUWLHV1RWZLWKVWDQGLQJWKHDXWKRUVKLSRIWKHUHSRUWVQRWHGEHORZWKHVFLHQWLILFDQGWHFKQLFDO LQIRUPDWLRQLQFOXGHGLQWKLV$QQXDO,QIRUPDWLRQ)RUPUHJDUGLQJ7HFN¶VPLQLQJSURSHUWLHVLVDSSURYHGE\ DQGSUHSDUHGXQGHUWKHVXSHUYLVLRQRI5RGULJR0DULQKR3*HRZKRLVDQHPSOR\HHRI7HFN5HVRXUFHV /LPLWHGH[FHSWIRU D WKH$QWDPLQDSURSHUW\IRUZKLFKWKHUHVHUYHDQGUHVRXUFHHVWLPDWHVLQFOXGHGLQ WKLV$QQXDO,QIRUPDWLRQ)RUPLVDSSURYHGE\DQGSUHSDUHGXQGHUWKHVXSHUYLVLRQRI )HUQDQGR$QJHOHV3(QJDQG/XFLR&DQFKLVZKRLVDQ60(5HJLVWHUHG0HPEHUERWKRIZKRPDUH HPSOR\HHVRI&RPSDxtD0LQHUD$QWDPLQD6$DQG E WKH)RUGLQJ5LYHU(ONYLHZDQG*UHHQKLOOV SURSHUWLHVIRUZKLFKWKHVFLHQWLILFDQGWHFKQLFDOLQIRUPDWLRQLQFOXGHGLQWKLV$QQXDO,QIRUPDWLRQ)RUPLV DSSURYHGE\DQGSUHSDUHGXQGHUWKHVXSHUYLVLRQRI-R$QQD6LQJOHWRQ3*HRDQG5RELQ*ROG3(QJ ZKRDUHHPSOR\HHVRI7HFN&RDO/LPLWHG2WKHUWKDQ0U0DULQKRWKHDXWKRUVRIWKHUHSRUWVEHORZKDYH QRWSUHSDUHGRUDSSURYHGWKHGLVFORVXUHLQWKLV$QQXDO,QIRUPDWLRQ)RUPDQGWKHLQFOXVLRQRIWKHLUQDPHV EHORZLVQRWLQWHQGHGWRLPSO\WKDWWKH\KDYHSUHSDUHGRUDSSURYHGDQ\VXFKGLVFORVXUH

3URSHUW\  7LWOH'DWHDQG$XWKRURI5HSRUW

+LJKODQG9DOOH\&RSSHU 1,7HFKQLFDO5HSRUW7HFN+LJKODQG9DOOH\&RSSHU0DUFK 0LQH 5RQDOG*UDGHQ

$QWDPLQD 7HFKQLFDO5HSRUW0LQHUDO5HVHUYHVDQG5HVRXUFHV$QWDPLQD'HSRVLW 3HUX-DQXDU\/XLV/R]DGDDQG-KRQ(VSLQR]D

)RUGLQJ 1,7HFKQLFDO5HSRUWRQ&RDO5HVRXUFHVDQG5HVHUYHVRIWKH )RUGLQJ5LYHU2SHUDWLRQV'HFHPEHU(ULF/-HQVHQ$QGUHZ -.QLJKW'RQDOG(0LOOVDQG%DUU\)0XVLO

(ONYLHZ 7HFKQLFDO5HSRUWRQ&RDO5HVRXUFHVDQG5HVHUYHVRIWKH(ONYLHZ 3URSHUW\)HEUXDU\0DUVWRQ&DQDGD/WG

*UHHQKLOOV 1,7HFKQLFDO5HSRUWRQ*UHHQKLOOV&RDO2SHUDWLRQ)HEUXDU\ $QGUHZ-.QLJKW'RQDOG(0LOOVDQG$OLVRQ-6HZDUG

5HG'RJ 1,7HFKQLFDO5HSRUW5HG'RJ0LQH$ODVND86$)HEUXDU\ 7KRPDV.URODN.HYLQ3DOPHU%ULJLWWH/DFRXWXUHDQG1RUPDQ 3DOH\

4XHEUDGD%ODQFD 1,7HFKQLFDO5HSRUWRQ4XHEUDGD%ODQFD3KDVH5HJLyQGH 7DUDSDFi&KLOH)HEUXDU\5RGULJR0DULQKR3DXO.ROLVQ\N %U\DQ5DLUGDQDQG(OGZLQ+XOV 

7HFN5HVRXUFHV/LPLWHG  '