The Challenges and Opportunities in Fort Mcmurray Session Sponsor: Altus Group

The Challenges and Opportunities in Fort McMurray Session Sponsor: Altus Group

John Ross: Managing Director, Avison Young (Moderator) ______Dennis Doherty: President, Pacific Investments & Developments

Michael Evans: Execuve Director of Stakeholder Relaons, Regional Municipality of Wood Buffalo

Brad Gingerich: Senior Vice President, CBRE Limited

Ron Mosher: Senior Vice President, Camgill Enterprises Ltd. Introducon

— There are extreme growth challenges in this extraordinary market. — While Fort McMurray represents unprecedented opportunity, there are challenges to invesng in and developing property in such a quickly evolving market. — Today, we are going to discuss these challenges and take your quesons on the subject. Fort McMurray at a Glance Wood Buffalo Regional Overview

— Total populaon – 104,338 (2010) – projected to be 230,000 by 2030; — Average Annual Growth – 7.24%; — Covers 66,361 sq km - 10% of the Province; — Wood Buffalo is one of the largest municipalies in North America; — 32% of the populaon is under 25 years of age; — Average residenal property selling price - $734,294 (2011); — Low unemployment – 4.3% (Dec. 2011).

Source: Wood Buffalo Economic Development Fort McMurray Economic Highlights — Top 25 Best Community for Business in Western Canada (June 2011); — 6th Best Entrepreneurial City in Canada (2011); — CERI (Canadian Energy Research Instute) esmates capital investment at $218 billion over the next 25 years. This will generate $2.1 trillion in economic acvity across Canada; — Alberta now trains nearly 20% of the naon’s apprences; — Across Canada, employment either directly or indirectly linked to oil sands facilies will rise from 75,000 in 2010

Source:to 905,000 jobs in 2035. Wood Buffalo Economic Development and CERI Populaon Regional Municipality Of Wood Buffalo

250,000

200,000

150,000

RMWB 100,000

50,000

0 1996 2000 2006 2010 2030

Source: Wood Buffalo Economic Development

Income Esmates - RMWB

% 2012 2012 2014 2017 REGION ABOVE THE AVERAGE PER CAPITA PROJECTED PER PROJECTED NATIONAL HOUSEHOLD CAPITAL PER CAPITA AVERAGE INCLOME CALGARY 50% 129,712 51,559 55,970 62,620 EDMONTON 20% 98,632 41,315 44,888 50,290 TORONTO 10% 94,526 37,775 41,432 47,016 VANCOUVER 10% 83,487 37,749 40,553 44,825 WOOD BUFFALO 103% 189,458 69,604 77,501 90,480 CANADA - 85,792 34,352 37,088 41,274

Source: Wood Buffalo Economic Development

Household Expenditures - RMWB

Region Food Shelter Clothing Transport. Taxes Total Discreonary Expenses Income

Calgary 10,479 22,606 4,738 14,045 33,104 113,633 16,079

Edmonton 9,023 18,362 3,799 11,665 24,049 90,438 9,456

Toronto 8,432 17,861 4,172 9,785 25,369 86,803 7,723

Vancouver 8,378 16,578 3,572 8,738 21,568 78,530 4,957

Wood 14,549 31,008 10,413 21,120 44,584 158,993 30,465 Buffalo

Canada 8,315 15,693 3,358 10,808 21,395 80,524 5,268

Source: Wood Buffalo Economic Development Oil Sands Overview — Canada’s oil reserves are third in the world behind Saudi Arabia and Venezuela; — As of November 2011, there were more than 100 acve oil sands projects in Alberta; — 1 in 14 jobs in Alberta is directly related to energy; — At 170 billion barrels, oil sands represent 96% of Canada’s total oil reserves or about 12% of total global oil reserves; — Oil sands investment in 2009 was $10.6 billion and in 2010 was $11.2 billion; — In the fiscal year 2010/11, the Alberta government collected more than $3.7 billion in royales. Alberta can expect $184 billion in royales over the next 25 years.

Source: Wood Buffalo Economic Development, Oil Sands Developers and CERI Land — Oil sands are located below the surface of 140,200 sq km of land or 4.5 % of Canada’s total boreal forest – mineable oil sands exist under only 0.1% of the total boreal forest; — In more than 40 yrs of oil sands mining, only 0.02% of Canada’s boreal forest has been disturbed (662 sq km); — In-situ extracon is an opon only for oil sands that sit less than 75 metres under the surface; — As required by law and included in all project approvals, all lands disturbed by oil sand producon must and will be reclaimed; — Reclamaon is ongoing and connuous – to date some 73 Source:sq km of land has been reclaimed. Wood Buffalo Economic Development, Oil Sands Developers and Alberta Energy Oil Sands by the Numbers – Wood Buffalo

Status Number Number Capacity (bpd) Construcon Operaonal of of Workforce Workforce Projects Phases Operang 16 24 1,532,917 56,194 12,751 Under Construcon 8 9 457,090 11,999 1,147 Approved 19 31 1,918,246 66,217 8,624 Applicaon 25 39 1,496,700 63,887 7,352 Announced 28 46 2,187,000 66,644 8,290 Total 96 152 7,591,953 264,940 38,164 Future Growth 72 116 5,601,946 196,747 24,267

Source: Wood Buffalo Economic Development Oil Sands – 20 Year Growth Snapshot

Shades of Blue – Plants/Mines Shades of Orange – In-Situ Mining

Courtesy of Wood Buffalo Economic Development

ENDLESS MILES OF WINDERNESS

“When business people first fly over the Regional Municipality of Wood Buffalo…they can’t believe there is such a thing as shortage of land…” Quesons?