HAZARDOUS MATERIALS MANAGEMENT PLAN KENO HILL SILVER DISTRICT MINING OPERATIONS JULY 2018 HAZARDOUS MATERIALS MANAGEMENT PLAN KENO HILL SILVER DISTRICT MINING OPERATIONS Alexco Keno Hill Mining Corp. JULY 2018 TABLE OF CONTENTS 1 INTRODUCTION ................................................................................................................................................................ 1 2 STORAGE OF HAZARDOUS MATERIALS.................................................................................................................................. 2 2.1 UNDERGROUND CHEMICAL SUBSTANCES ........................................................................................................................... 3 3 HUMAN HEALTH AND SAFETY ............................................................................................................................................. 4 4 EMPLOYEE TRAINING ........................................................................................................................................................ 5 LIST OF TABLES Table 1-1 Hazardous Materials Management Plan Summary ....................................................................................... 1 Table 2-1 Summary of Reagents – Keno District Mill .................................................................................................... 3 Table 2-2 List of Fluids Used Underground ................................................................................................................... 4 LIST OF APPENDICES APPENDIX A MATERIAL SAFETY DATA SHEETS HAZARDOUS MATERIALS MANAGEMENT PLAN JULY 2018.DOCX8 HAZARDOUS MATERIALS MANAGEMENT PLAN KENO HILL SILVER DISTRICT MINING OPERATIONS Alexco Keno Hill Mining Corp. JULY 2018 1 INTRODUCTION The following Hazardous Materials Management Plan has been assembled to define a protocol for safe handling, storage, and monitoring of hazardous materials during the undertaking of the Keno Hill Silver District Mining Operations. The primary goals of this plan are to ensure the safety of employees and the protection of the environment. A summary of the Hazardous Materials Management Plan is presented below in Table 1-1. Table 1-1 Hazardous Materials Management Plan Summary Hazardous • All hazardous materials will be stored safely and appropriately as per material safety data sheets (MSDS) Materials Storage • All hazardous materials will be segregated and stored to ensure integrity of product containers, avoidance of accidental mixing, and safety from weather effects • Hazardous materials will be stored in locations with secondary containment measures in place in order to limit potential for spills • A complete listing of MSDS sheets for all hazardous materials and spill response strategy protocol will be made available to all employees and will be located at the following locations: o Administration Office o Bellekeno, Lucky Queen, Onek, Flame and Moth and Bermingham Shifters Office o Maintenance Shop o First Aid Room(s) o General, Site and Department Managers Workspace o Kitchen Medical Station o Mine Rescue Sheds – Bellekeno, Lucky Queen, Onek, Flame and Moth and Bermingham o Safety Manager/Coordinators Office o Keno District Mill – Reagent Storage Facility Employee Training • All employees involved with handling hazardous materials will receive training in safe and appropriate use as per Workplace Hazardous Materials Information Systems Regulations (WHMIS) of the Occupational Health and Safety Act. • All employees will follow OH&S and regulations and use appropriate Personal Protective Equipment (PPE) and handling procedures when using hazardous materials Spills and • All spills will be dealt with as per measures described in the Emergency Response Plan Emergencies • Should a spill of reportable quantity occur, the 24 hour Yukon Spill Report line (867-667-7244) will be immediately notified Signage and • All areas which will be used to store hazardous materials will be clearly indicated with appropriate signage Monitoring • Monitoring of areas which will be used to store hazardous materials will be monitored on a regular basis in order to ensure measures set out in this plan are complied with HAZARDOUS MATERIALS MANAGEMENT PLAN JULY 2018.DOCX8 1 HAZARDOUS MATERIALS MANAGEMENT PLAN KENO HILL SILVER DISTRICT MINING OPERATIONS Alexco Keno Hill Mining Corp. JULY 2018 As with any industrial undertaking, a number of hazardous materials are used for various purposes and various locations during the project. Primarily, these materials include fuels and lubricants used for the operation of surface and underground equipment, chemicals for water treatment, explosives for underground mining, and reagents used for the mill flotation processes. 2 STORAGE OF HAZARDOUS MATERIALS All the reagents will be prepared in a separate reagent preparation and storage facility in a containment area inside the Keno District Mill building. The reagent storage tanks are equipped with level indicators and instrumentation to ensure that spills do not occur during normal operation. Appropriate ventilation and fire and safety protection are provided at the facility. All solid reagents such as copper sulphate, zinc sulphate, sodium sulphite, and SIPX are dissolved, mixed, and diluted prior to being transferred into separate holding tanks from where the reagents are distributed to various addition points. Lime is mixed and stored in a dedicated solution storage tank located inside the mill building. Lime is mixed in the Elsa care and maintenance lime mixing building and transported from the Elsa mixing facility and delivered into the lime solution storage tank. Liquid collectors and frother are stored in separate holding tanks prior to being pumped in undiluted form to various addition points. Anti-scale chemicals may be required to minimize scale build-up in the reclaim or recycle water lines. This reagent will be delivered in liquid form and metered directly into the reclaim water tank. Please see Material Safety Data Sheets, presented as Appendix A, for detailed toxicological as well as human health and safety considerations for all mill reagents. Emergency response planning and medical considerations are presented in Section 4.0, Human Health & Safety. The majority of mill reagents are received in bulk, such as palletized bags, chemtainers, drums, or bulk bags. The covered and curbed reagent storage and preparation area is located adjacent to the flotation area. A forklift with a drum handler attachment is used for reagent handling, while the electric hoist servicing the mill and reagent areas is used to lift the reagents to the respective reagent mixing area located above the mixed reagent storage area. The reagent system includes unloading and storage facilities, mixing tanks, transfer pumps, and feeding equipment. Table 2-1 below shows the reagents specified for use in the Keno District Mill. All fuel, lubricants, hydraulic fluids, coolants and similar substances well be stored and/or transferred a minimum of 30 metres from the Natural Boundary of any Watercourse to avoid substances being deposited in or allowed to be deposited in waters. HAZARDOUS MATERIALS MANAGEMENT PLAN JULY 2018.DOCX8 2 HAZARDOUS MATERIALS MANAGEMENT PLAN KENO HILL SILVER DISTRICT MINING OPERATIONS Alexco Keno Hill Mining Corp. JULY 2018 Table 2-1 Summary of Reagents – Keno District Mill Reagent Preparation Method Use Flocculant Received as powder in 25 kg bags; mixed to 0.3% storing strength; transferred Flocculation of flotation tailings and flotation to a storage tank and dosed directly to thickeners following further dilution to lead and zinc concentrates in thickeners. 0.3% dosing strength. Copper Received as powder in 25 kg bags; mixed to 10% strength; transferred to a Regulator for zinc sulphide minerals in Sulphate- storage tank. Dosed to the zinc flotation circuit. flotation process. Regulator MIBC- Received as liquid in 200 L drums; dosed undiluted to lead and zinc flotation Promotion and stabilization of froth bubbles frother circuits. in flotation cells. SIBX- Received as powder in 25 kg bags; mixed to 10% strength; transferred to a Collector reagent for sulphide minerals into collector storage tank. Dosed to both lead and zinc flotation circuits. the froth phase of the flotation cells. 3418A- Received as liquid in 200 L drums; dosed undiluted to lead flotation circuit. Collector reagent for lead and silver sulphide collector minerals into the froth phase of the flotation cells. Zinc Received as powder in 25 kg bags; mixed to 10% solution strength; Regulator of lead sulphide minerals in Sulphate transferred to a storage tank. Dosed to the primary grinding and lead flotation process. Regulator flotation circuit, if required. Sodium Received as powder in 25 kg bags; mixed to 10% solution strength; Regulator of lead sulphide minerals in Sulphite transferred to a storage tank. Added to the primary grinding and lead flotation process. Regulator flotation circuit if required. Lime Received as powder in 1 ton bags, mixed to 20% storing strength; transferred Regulator to a storage tank and dosed directly to lead regrind and zinc flotation circuits. Sulfuric Acid Received in totes, stored in lab and/or warehouse Used for testing purposes on a as-needed basis Ferric Received in 1 gallon plastic containers, stored in lab and/or warehouse Used for testing purposes on a as-needed Chloride basis 2.1 UNDERGROUND CHEMICAL SUBSTANCES Chemical substances used during underground mining operations will follow all applicable