Scoping and Terms of Reference for Social Impact Assessment The Malmbjerg Molybdenum Project, Greenland Resources Inc. Submitted to: Greenland Resources Inc. Att. Dr. Ruben Shiffman, President Submitted by: Golder Associates A/S Maglebjergvej 6, DK – 2800 Kongens Lyngby, Denmark +45 70 27 47 57 Proj. no.: 19125166 23.06.2020 23.06.2020 Proj. no.: 19125166 Distribution List Greenland Resources Inc. i 23.06.2020 Proj. no.: 19125166 Table of Contents 1.0 INTRODUCTION ............................................................................................................................................. 5 1.1 The Malmbjerg Molybdenum Project ................................................................................................... 5 1.2 About the Mine company GRI .............................................................................................................. 6 1.3 The Molybdenum Mine Project Location .............................................................................................. 6 2.0 PROJECT DESCRIPTION OF THE MALMBJERG PROJECT ..................................................................... 7 2.1 Project Site Description ........................................................................................................................ 7 2.1.1 Geology and Mineralization ............................................................................................................ 8 2.2 Description of the Mining Project ......................................................................................................... 8 2.2.1 Operating Plan ................................................................................................................................ 9 2.2.2 Operations ....................................................................................................................................... 9 2.2.3 Open Pit Operations ..................................................................................................................... 10 2.2.4 Ore transportation to the concentrator from the mine site ............................................................ 11 2.2.5 Metallurgical processing ............................................................................................................... 11 2.2.6 Reagent Storage ........................................................................................................................... 11 2.2.7 Tailings disposal............................................................................................................................ 11 2.2.8 Power Generation ......................................................................................................................... 11 2.2.9 Fuel storage .................................................................................................................................. 11 2.2.10 Concentrate shipping .................................................................................................................... 12 2.2.11 Equipment and Consumables shipping ........................................................................................ 12 2.2.12 Aviation services ........................................................................................................................... 12 2.2.13 Personnel ...................................................................................................................................... 12 2.3 Closure and Reclamation ................................................................................................................... 12 3.0 THE SIA PROCESS AND CONTENT .......................................................................................................... 13 3.1 Study Approach .................................................................................................................................. 13 3.2 Methodology ....................................................................................................................................... 15 3.2.1 Screening and identification of Key Issues ................................................................................... 15 1 23.06.2020 Proj. no.: 19125166 3.2.2 Literature Review and Secondary Data Collection ....................................................................... 16 3.2.3 Consultation with Key Stakeholders and Data Collection Tour .................................................... 16 3.2.4 Data Entry, Analysis and Reporting .............................................................................................. 16 3.3 Critical Issues ..................................................................................................................................... 16 3.4 Data Limitations ................................................................................................................................. 17 3.5 Geographic Scope ............................................................................................................................. 17 3.5.1 National and Regional Study Area (NSA and RSA) ..................................................................... 17 3.5.1.1 Climate ....................................................................................................................................... 17 3.5.1.2 Policy and Governance .............................................................................................................. 18 3.5.1.3 Population .................................................................................................................................. 19 3.5.2 Mining Legislation and Guidelines ................................................................................................ 19 3.5.3 Regional Study Area (RSA) .......................................................................................................... 20 3.5.4 Local Study Area (LSA) - Town of Ittoqqortoormiit ....................................................................... 22 3.5.4.1 History ........................................................................................................................................ 24 3.5.4.2 Climate ....................................................................................................................................... 24 3.5.4.3 Infrastructure .............................................................................................................................. 25 3.6 Stakeholder Engagement ................................................................................................................... 25 3.6.1 Identification of Stakeholders ........................................................................................................ 25 3.6.2 Public Opinion, Participation and Engagement ............................................................................ 27 3.6.3 Local participation ......................................................................................................................... 27 3.7 Potential positive impacts ................................................................................................................... 28 3.7.1 Business life .................................................................................................................................. 28 3.7.2 Employment at the project ............................................................................................................ 29 3.7.3 Public service and economy ......................................................................................................... 29 3.7.4 Infrastructure ................................................................................................................................. 29 3.7.5 Summary of impacts ..................................................................................................................... 29 3.8 Maximization of development opportunities ....................................................................................... 29 3.9 Potential negative impacts ................................................................................................................. 29 3.9.1 Socio-economic issues ................................................................................................................. 29 2 23.06.2020 Proj. no.: 19125166 3.9.2 Health issues ................................................................................................................................. 29 3.9.3 Use of the area and Recreational values ...................................................................................... 30 3.9.4 Summary of impacts ..................................................................................................................... 30 3.10 Mitigation Measures ........................................................................................................................... 30 4.0 DRAFT TERMS OF REFERENCE - TOR .................................................................................................... 31 4.1 General data requirements ................................................................................................................ 31 4.2 Consultation with Key Stakeholders and Data Collection Tour ......................................................... 33 4.3 Key Issues raised during Pre-Data Collection Tour ..........................................................................