GALAXY LITHIUM (CANADA) INC. JAMES BAY LITHIUM MINE SUMMARY OF PROJECT DESCRIPTION OCTOBER 2017 JAMES BAY LITHIUM MINE SUMMARY OF PROJECT DESCRIPTION GALAXY LITHIUM (CANADA) INC. REPORT (FINAL VERSION) PROJECT NO.: 171-02562-00 DATE: OCTOBER 2017 PRESENTED TO: CANADIAN ENVIRONMENTAL ASSESSMENT AGENCY WSP CANADA INC. 1600 RENÉ-LÉVESQUE BLVD WEST, 16TH FLOOR MONTREAL, QC, H3H 1P9 TEL.: +1 514 340-0046 FAX: +1 514 340-1337 WSP.COM SIGNATURES PREPARED BY <Original signed by> Andréanne Boisvert, M.A. Project Manager REVIEWED BY < <Original signed by> O r i g Ghyslain Pothier, M. Env. ESSAi Project Director n a l s i g n é p a r > This report was prepared by WSP for the account of Galaxy Lithium (Canada) inc., in accordance with the professional services agreement. The disclosure of any information contained in this report is the sole responsibility of the intended recipient. The material in it reflects WSP’s best judgement in light of the information available to it at the time of preparation. Any use which a third party makes of this report, or any reliance on or decisions to be made based on it, are the responsibility of such third parties. WSP accepts no responsibility for damages, if any, suffered by any third party as a result of decisions made or actions based on this report. This limitations statement is considered part of this report. The original of the technology-based document sent herewith has been authenticated and will be retained by WSP for a minimum of ten years. Since the file transmitted is now out of WSP’s control and its integrity can no longer be ensured, no guarantee may be given with regards to any modifications made to this document. WSP JAMES BAY LITHIUM MINE NO. 171-02562-00 GALAXY LITHIUM (CANADA) INC. PAGE I P R ODUCTION TEAM GALAXY LITHIUM (CANADA) INC. (GALAXY) Chief Operating Officer, Galaxy Resources Mark Pensabene Limited, duly authorized representative of Galaxy Exploration Manager James McCann, P.Geo. Study Manager Richard Kelso-Marsh, B.E. MIE Aust WSP CANADA INC. (WSP) Project Direction Andréanne Boisvert, M.A. Ghyslain Pothier, M. Env., ESSA Collaborators Craig Wood, B. Sc. Ariane Charaoui, M. Sc. Map Production Alain Lemay Annie Masson Editing Nancy Laurent WSP JAMES BAY LITHIUM MINE NO. 171-02562-00 GALAXY LITHIUM (CANADA) INC. PAGE III TABLE OF 1 INTRODUCTION ................................................................... 1 CONTENTS 1.1 Project Proponent .............................................................................. 1 1.2 Project Title ...........................................................................................2 1.3 Environmental Assessment Process .........................................2 2 PROJECT INFORMATION ............................................... 5 2.1 Project Justification ......................................................................... 5 2.2 Project Location ................................................................................. 5 2.3 Project Development ....................................................................... 6 2.4 Land Ownership ................................................................................. 6 3 PROJECT DESCRIPTION ................................................ 11 3.1 Open Pit Mining .................................................................................. 11 3.2 Ore Processing .................................................................................... 11 3.2.1 Crushing................................................................................................................................................. 12 3.2.2 DMS........................................................................................................................................................... 12 3.3 Storage Areas ..................................................................................... 12 3.4 Project Execution Phases ............................................................. 12 3.4.1 Construction Phase........................................................................................................................ 12 3.4.2 Operation Phase .............................................................................................................................. 19 3.4.3 Rehabilitation Phase ..................................................................................................................... 19 3.5 Emissions, Discharges and Waste ............................................ 19 3.5.1 Atmospheric Emissions .............................................................................................................. 19 3.5.2 Water Management ...................................................................................................................... 19 3.5.3 Waste Management .................................................................................................................... 20 3.6 Other Infrastructure ....................................................................... 20 3.7 Site Rehabilitation .......................................................................... 20 3.8 Project Schedule ............................................................................... 21 WSP JAMES BAY LITHIUM MINE NO.171-02562-00 GALAXY LITHIUM (CANADA) INC. PAGE V 4 ENVIRONMENTAL COMPONENTS ..........................23 4.1 Physical Environment ................................................................... 23 4.1.1 Bedrock Geology ............................................................................................................................. 23 4.1.2 Surficial Deposits ............................................................................................................................ 23 4.1.3 Hydrography ...................................................................................................................................... 24 4.2 Biological Environment ................................................................ 24 4.2.1 Flora.......................................................................................................................................................... 24 4.2.2 Fauna ....................................................................................................................................................... 24 4.3 Human Environment ..................................................................... 25 5 MAIN ANTICIPATED IMPACTS ................................... 27 5.1 Anticipated Negative Impacts .................................................. 27 5.1.1 Construction Phase ....................................................................................................................... 27 5.1.2 Operation Phase .............................................................................................................................. 27 5.1.3 Closure Phase .................................................................................................................................... 27 5.2 Proposed Mitigation Measures ................................................. 28 5.3 Anticipated Positive Impacts .................................................... 28 6 PUBLIC CONSULTATION .............................................. 29 7 REFERENCES ..................................................................... 31 FIGURES FIGURE 1 ORE CONCENTRATION PROCESS ................................... 15 FIGURE 2 PRELIMINARY CONCENTRATOR LAYOUT ................. 17 MAPS MAP 1 REGIONAL LOCATION OF THE MINING SITE ........................................................................................................... 7 MAP 2 GALAXY MINING CLAIMS ......................................................... 9 MAP 3 LOCATION OF THE MINING INFRASTRUCTURE ....................................................................... 13 WSP NO.171-02562-00 JAMES BAY LITHIUM MINE PAGE VI GALAXY LITHIUM (CANADA) INC. 1 INTRODUCTION The preparation of this project description is the first step in the environmental impact assessment process by which the proponent, Galaxy Lithium (Canada) Inc. (Galaxy), informs Quebec’s Ministère du Développement durable, de l’Environnement et de la Lutte contre les changements climatiques (MDDELCC) and the Canadian Environmental Assessment Agency (CEAA) in writing of its intention to undertake a project. The project description allows the various ministries involved to determine the type of environmental study to be conducted and to issue a formal notice indicating the nature, area and scope of the study that the project proponent is expected to produce. The project notice outlines the general characteristics of the project. They are presented in a clear and concise manner and include the components that are relevant in understanding the project and its anticipated impacts. It is our understanding that once MDDELCC and CEAA receive the project description, it is then forwarded to all the ministries that are likely to have a direct interest in or be concerned by the project. The project description is submitted to MDDELCC’s Deputy Minister and to CEAA by WSP Canada inc. (WSP) on behalf of Galaxy. The James Bay Lithium Mine Project is located in the Nord-du-Québec administrative region of Quebec. Galaxy is looking to open and operate an open-pit lithium mine that would be located along the James Bay Road near the Km381 Truck Stop. Apart from its pit, the mining facility will include an ore concentrator, tailings/waste rock/ore/overburden