Northwest Province/territory Ontario Québec Saskatchewan Nunavut Yukon Territories

Northwest Northwest Territories Territories Mining The Mineral Mining Tax and and Quartz Title of statute Tax Taxation Act, Act Nunavut Nunavut Mining Act Act 1983 Mining Mining Regulations Regulations First tier n.a. n.a. n.a. n.a. n.a. n.a. Lesser of Lesser of 13% 13% and and following following $10,000- formula: formula: $1 M: 3%; $10,000 - $10,000 to $1 M -$5 5% (cumulative $5 M: 5%; $5 M: 5%; M: sales up to 1 M $5 M - $10 $5 M - $10 5%; $5 M - troy oz of Mining tax M: M: 10 M: 6%; 10% (5% precious metals or 6%; for 6%; for for every Second tier for remote 16% or 1 M metric royalty rate every every additional area) tonnes of base additional additional $5 M, rate metals); 10% $5 M $5 M increases (above the annual annual by thresholds) profit, rate profit, rate 1% to a increases by increases by maximum 1% to a 1% to a of 12% maximum maximum of of 14% 14% no tax for profit under $0.5 M/ year; no tax Mining tax exemption for the first 10-year holiday for new $10 M or No No No No for new mines mines ($) first 3 years (10 years for remote area), whichever comes first Exploration expenses 100% 100-125% 150% 100% 100% 100% deductibility rate Pre-production development 100% 150% 100% 100% 100% expense deductibility

1 Northwest Province/territory Ontario Québec Saskatchewan Nunavut Yukon Territories rate 30% straight- Mining line assets 15% Depreciation (100% for 30% 100% 100% 100% straight- (Note 1) new mine) line 15% Processing straight- assets line Ministerial Milling 8% 7% 8% 8% decision Smelting 12% 13% 8% 8% n.a. Processing allowance Refining 16% 13% 8% 8% n.a. rates 20% n.a. northern Other n.a. n.a. n.a. n.a. Ontario refining Processing allowance Ministerial 15-65% 0-55% 0-65% 0-65% caps decision No mining taxes are payable in first three Effective 10-year tax years of 1 April 2010, holiday for new production a cash refund mines, starting on profits equal to the in below $10 lesser of 2007; 150% of Acquisition Acquisition M; the 16% pre-production cost of cost of period is of the non- expenses are expansion expansion extended capital loss Special features recovered prior claims claims to and 8% of to any royalties deductible deductible 10 years the being payable; within within for aggregate of separate limits limits mines in exploration royalties apply remote and to potash, coal locations; development and uranium 5% tax rate costs is producers for mines available in remote locations Can mine reclamation fund contributions be Yes Yes Yes Yes Yes No deducted?

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