#1SMA Saskatchewan Mining Association Saskatchewan: A Global Critical Minerals Hub Saskatchewan: A Growing Critical Minerals Hub Meeting Global Demand Uranium Potash Prince Albert and District Chamber of Commerce June 1, 2023 M SMA Saskatchewan Mining Association#2SASKATCHEWAN MINING ASSOCIATION We help keep the lights on, keep food on the table and provide the raw materials used in the technology people throughout the world need and use every day. Official Mission Statement: Advance a safe, sustainable & globally competitive exploration and mining industry in Saskatchewan that benefits all residents of the province . Over 40 Member companies including producers and exploration companies with projects or operations in Saskatchewan ○ Nutrien, The Mosaic Company, Cameco, Orano, Westmoreland Coal, SSR Mining, K+S Potash Canada, HudBay Minerals, BHP, Denison Mines, Rio Tinto, Star Diamonds, NexGen Energy, Foran Mining and dozens of exploration companies. Voice of the Saskatchewan mining and exploration industry. M SMA Saskatchewan Mining Association#32022 PERFORMANCE HIGHLIGHTS Safe Production - 14.8 M exposure hours with all Mining Codes lower than "all industry" rate. Record value of mineral sales - ~$19.5 B Potash: 23 M tonnes KCI Metallic: 136, 125 troy oz Au (record); first processing of REE ore at Vital Metal lab in Saskatoon; transition of HudBay's operation from Flin Flon to Snow Lake. Uranium: 19.2 M lbs U308 (resumption of production from McArthur - Key in Nov. 2022) Industrial - Strong sales 7.2 M tonnes thermal coal Exploration: $262.5 M M SMA Saskatchewan Mining Association#4SK: RICH IN MINERAL RESOURCES RESOURCE MAP OF SASKATCHEWAN Saskatchewan Geological Survey Miscellaneous Report 2021-1 CARL ATHABASCA BAS NATO ON >23 SK mine facilities throughout Saskatchewan Geologic Framework is SK Advantage world class mines and deposits - ✓ Potash ✓ Uranium ✓ Diamonds ✓ Gold and Coal ✓ Diverse Potential for Critical Minerals/Battery Minerals (Ni, Li) REE, Chromite, Base metals (copper and zinc), Cobalt; ✓ 23 of Canada's 31 Critical Minerals SWIFT CURRENT REGINA - M SMA Saskatchewan Mining Association#5SASKATCHEWAN: Canadian & Global Mining Leader m oz Claude Resources | yellowcake is packaged into special steel de #1 Canadian Mineral Investment Attraction #1 #4 2022 Potash #2 #1 #1 2022 Leading Client of 2022 2022 Industrial Canadian Rail and Producer Uranium Value of Employer of Expln Global Producer Mineral Indigenous $362.8 M Global Product people #3 Global (37%) (16%) $19.5B (10%) (ON, QB, Vessel Transport (Value & Volume) BC) M SMA Saskatchewan Mining Association#6SK MINING BY THE NUMBERS - 2021 Payroll >$1.1 BILLION From exploration through operations and export, SK companies support jobs in every part of the province. SK mining operations paid more than $1.1 billion to employees in 2021. Employment 26,247 For every direct job in the SK industry, there are at least two jobs in the mining supply and service sector. Taxes >$2 BILLION In 2021 SK mining companies contributed over $2 billion in provincial, federal and municipal taxes, creating government revenue for health care, education and infrastructure development. 12% of SK GDP Value of Mineral Sales $8.6 BILLION Community > $20.2 MILLION In 2021 SK mining operations made over $20.2 million in social and community contributions. Top 5 markets SK Potash SK Uranium United States United Kingdom China Brazil Indonesia India United States Germany Netherlands Romania Procurement $2.2 BILLION In 2021 SK mining companies purchased $2.2 billion of their total goods and services from Saskatchewan suppliers. Indigenous >368 MILLION In 2021 Saskatchewan mining operations purchased $368 million of goods and services from Indigenous-owned businesses. • Very high level of public support: 2022 Survey of 1000 SK residents indicated 92% are supportive of mining industry M SMA Saskatchewan Mining Association#7SK MINING BY THE NUMBERS - 2022 SASKATCHEWAN POTASH Nourishing the earth Seulchran polish is a critical mineral and worldwideporting agricultural food the growing global population tatouring low by 5050 T MEGRAL IN CANADA WALLS OF FALES ECONOMIC CONTRIBUTIONS FINANCIAL EMPLOTMENT Powash is a valuable resource that has a significant positive impact on the economy of Saskatchewan and les communkles. AMOUNT MINED 23 Million AMOUNT EXPORTED 95% SALES, RESERVES AND EMISSIONS INTENSITY $18 Billion in sales #1 Potash producer In the world. 1/2 Low Carbon Potash CONTRIBUTION TO PROVINCIAL GDP: $8.6 Billion TAXES: $5.4 Billion JORS 5,800 Hack word PROCUREMENT $3.1 Billion SAFETY COMMUNITY INVESTMENT SALARIES $896 Million $109,720 $35.5 Million m $1.8 Billion $403 Million SMA My saskmining.ca @StakMiningAsse 117 M SMA Saskatchewan Mining Association#8SK MINING BY THE NUMBERS - 2022 SASKATCHEWAN URANIUM Energizing the world Aunapshot of Saskatchewan's uranium industry in Saskatchewan is home to the world's highest grade uranium mines. Saskatchewan uranium is a critical moral used worldwide to produce the nuclear tual for safe, rollable, clean-air electricity. Energy Density of Uranium Zero CO₂ Abundant carbon-free emissions electricity ECONOMIC CONTRIBUTIONS FINANCIAL CONTRIBUTION TO PROVINCIAL GOP: $576.8 Million TAXES: $181 Million Federal Provincial and Local COMMUNITY INVESTMENT $4.8 Million including local organizations Indigenoux tips and At the fully licensed capecity of their flar-one operations, Saskatchewan's uranium producers could mine and mill enough uranium every year in the province's north to meat 17099" of Canada's total annual electricity demand with carbon-frog nuclear anorgy. PROCUREMENT $639 Million total value procured from all suppler $448 Million good and proced + EMPLOYMENT Uranium mining employs Saunch residents and indirectly Hoposable farmer joand JOBS 2,381 Semploy including contractors 1,930 Northamp and contraction 40% of northam workers a residents of Saskatchewan's north SALARIES $289 Million total payroll $109,720 9065twage sary of employ mining industry- sings of Swan workers. Cameco orano Camaco Corporation and Orano Canada Inc. are the two companies producing all of Canada's uranium. Both are committed to strong northam partnerships, particularly with Indigenous people, and ampho saraty, antonmental protection and sodaly responsible conduct in every aspect of their businesses. $226 Million procured ham Satchewan Indige ELEN SAFETY Mining in one of the katindu in Canada I million hou SMA saskmining.ca Mining Association @SaskMiningAssoc SMA Saskatchewan Mining Association#9What are Critical Minerals? They are of strategic geopolitical importance to economic and national security, and are also vulnerable to supply chain disruption They are key inputs in clean energy transition including electrification They are key inputs into the digital technology transformation including electronic devices GO Saskatchewan has 23 of Canada's 31 listed Critical Minerals M SMA Saskatchewan Mining Association#10What are Critical Minerals? Semiconductors Circuits LED lights Manganese Healthcare EV batteries Aerospace Electronics Stainless steel Magnesium Molybdenum Nickel Lithium Indium Niobium Helium Platinum group metals Gallium Scandium Tantalum Fluorspar Rare Earth Germanium Graphite Elements Potash Tellurium Copper Cobalt Jet engines Batteries Hydrogen fuel cells Chromium Tin Titanium Cesium Wind turbines EV motors Defense technologies Vanadium redox batteries Tungsten Alloys Catalysts Aerospace Bismuth Uranium Vanadium Zinc Antimony Aluminum Metal alloys EVs Saskatchewan has 23 of Canada's 31 listed Critical Minerals SMA Saskatchewan Mining Association#11• . • · . • . . • • SK CRITICAL MINERALS STRATEGY (CMS) Sask has deposits or occurrences of 23 of 31 minerals on Canada's Critical Minerals list Different commodity profile than other provinces World leading producers of 2 - potash and uranium Past producer of copper, nickel, PGE Near-term producer of copper, lithium and REE processing. Tailored Saskatchewan CMS Strategy released March 27, 2023 that builds on our unique strengths. Integrated, whole of government approach that aligns regulations and policies with the strategy. Budget 2023- 24 identified: Increased investments in exploration incentives Investments in geoscience Improvements to bottlenecks in government system exploration permitting - Securing the Future Saskatchewan's Critical Minerals Strategy saskatchewan.ca Saskatchewan Canada . Investments in REE processing space • Investments in financing assistance for Indigenous businesses. M SMA Saskatchewan Mining Association#12SK's Critical Minerals Opportunities What are the Key Drivers? 2050 1. Growing Global Population 2. Food and Clean Energy Security 3. Climate Change & Net Zero Emissions 4. Geopolitics & Supply Chain Security D WIA Mosc mak en Tal Kyar RUSSIAN FEDERATION Nahny Novgorod Dhyanovsk Kazan ur Samara Voronezh Kiev ow UKRAINE Saratov knackiv Dnipropetrovs Rog organs & Zaportar Done R Wolgograd KAZAKHSTAN Bucharest ( (Bucuresti Constanta A Lov -Donu M SMA Saskatchewan Mining Association#13Critical Mineral Drivers: Population Global Population Density The height of the spikes relates to the number of people living in an area roughly 2km x 2km Data: GHS POP, EU Software: Aerialod Author: Alasdair Rae MINERS MATH => FOOD > CLEAN ENERGY ON < LAND M SMA Saskatchewan Mining Association#14Critical Minerals Drivers: Sustainable Food and Clean Energy Security 1. Food Security: In the next 40 years the equivalent of all of the food produced in the last 10,000 years . • • Crop production must increase by 70% by 2050 >productivity from <land Canadian potash produced with 50% fewer emissions than global competitors 2. Energy Security . . • Globally, 1 billion people still live without electricity. Nuclear energy is clean and baseload SK uranium generated 306 B kw hours of clean electricity = 28 M homes for a year M SMA Saskatchewan Mining Association#15Critical Minerals Drivers Climate Change Status of net-zero carbon emissions targets The inclusion criteria for net-zero commitments may vary from country to country. For example, the inclusion of international aviation emissions; or the acceptance of carbon offsets. To see the year for which countries have pledged to achieve net-zero, hover over the country in the interactive version of this chart. Our World in Data Achieved In law In policy document Pledge No data World • Source: Net Zero Tracker. Energy and Climate Intelligence Unit, Data-Driven EnviroLab, NewClimate Institute, Oxford Net Zero. Last updated: 2nd November 2021. OurWorldinData.org/co2-and-other-greenhouse-eas-emissions + CC BY Emerging markets for SMR -grid decarbonization and industrial heat Growing global acknowledgement that no net-zero without nuclear - strong nuclear growth Nuclear has lower life cycle emissions per gigawatt hour; smaller footprint, higher energy density than renewables; better safety record M SMA Saskatchewan Mining Association#16Drivers: Clean Energy & Technology Transition Critical Minerals Needed For: ིབ [4] 回 ● Generation Transmission Storage Technology M SMA Saskatchewan Mining Association#17Critical Minerals Drivers: Geopolitical Supply Chain Security Geopolitical Security of Supply Chain Growing awareness of supply chain vulnerabilities for materials that are building blocks for technology and net-zero carbon future. World Bank - 500% increase of production of green minerals to produce clean technology essential to limiting global T rise to 2 C - including electrification of transportation. Sanctions on Belarus potash related to ongoing human rights violations (2020) Russia's 2021 invasion of Ukraine and resulting potash sanctions; shipping disruptions; exacerbated food and clean energy supply chain - Ukraine and Russia as food supplier to Europe and Africa. Russia's global gas exports (e.g. Germany); China's aggression towards Taiwan - major computer chip manufacturer 16. Batteries INLAND Warsal BELARUS Vinny Kiev (Kyiv Peterbur Smolensk Mas Moskva Ryazan RUSSIAN FEDERATION Naniy gorod Danovsk chevsk Kazan Uf Tuta Samara Voronezh Saratov Kharkiv Volgograd Zaporizhya Done KAZAKHSTAN nav UKRAINE kowy Rth (knpoy Rog) NIA DnipropetrovsHorlik tansk MOLDOVA Buchare (Bucuresti Constanta Donu M SMA Saskatchewan Mining Association#18Million metr. tons Drivers: Geopolitical Risk & Supply Chain Security Political stability of producer countries 20 000 Strong increase in Rare Earth Minerals production (REO-Content) 300 000 Strong increase in Lithium production (Li₁₂O–Content) 250 000 15 000 10 000 5 000 1996 Extreme Unstable Fair 2010 2021 Unstable Stable Source: World Mining Data 2023 metric tons 250 000 200 000 150 000 100 000 50 000 metric tons 200 000 150 000 100 000 50 000 China USA Myanmar Australia other Australia Chile China Argentina Brazil other M SMA Saskatchewan Mining Association#19Supply v. Demand Opportunity * Increase current global output of minerals by 6x * Nationalization ◆ Mergers and Acquisitions Source: SME Meeting the World's Future Mineral Needs M SMA Saskatchewan Mining Association#20Global Potash and Uranium Outlook Commodity Prices Zoom 5y All $138/lb Uranium From Apr 1, 2003 To Mar 31, 2023 100 $50.48 2020 $533/t • $57.70 10 year decline in commodity prices; low inventory; strengthening of spot/contract Well positioned to bring in lowest cost additional product to global market with both uranium and potash 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 1990 $718/t 750 500 250 10 2000 2010 - Uranium Spot Price - Long-term Uranium Price Potash 2004 2006 2008 2010 2012 2014 2016 2018 1980 1990 Zoom 5D 3M 6M 1Y 3Y 5Y MAX 2000 2010 III 2020 2022 Jan 1, 2004 2020 Jan 31, 2023 M SMA Saskatchewan Mining Association#21Critical Minerals: Potash •100% of Canadian Production; 37% global production •10 producing mines •(7 underground; and 3 solution) 3 producing companies: •Nutrien (6) Mosaic (3) K+S Potash Canada (1) •2022 production - 22 M t KCI valued at $> 18 B •Pre-Production: -BHP 2026 (4.35 M t KCI Phase 1)#22Critical Minerals: Uranium • • 100% of Canadian production; 16% global production in 2022 2 operating mines by end of 2022 Cigar Lake Mine/McClean Lake Mill McArthur River Mine/Key Lake - world's largest, high grade mine announced temp. suspension - July 2017 - Feb 2022; production (Nov 2022) Eagle Point/Rabbit - production suspended in 1Q 2016 15.3 M lbs U308 in 2022; values of sales $1 Billion • Pre-Production: • Denison - Phoenix ISR • NexGen - Arrow – feasibility study - M SMA Saskatchewan Mining Association#23Build on Existing Pan-Canadian Nuclear YUKON Supply Chain Port Radium ▲ Rayrock NORTHWEST TERRITORIES NUNAVUT Uranium Mining & Milling Uranium Processing - Refining, Conversion, and Fuel Fabrication Nuclear Power Generation and Nuclear Science & Technology Waste Management & Long-term Management Shutdown or Decommissioned Sites ▲ Inactive or Decommissioned Uranium Mines and Tailings Sites Beaverlodge, Gunnar, Lorado McClean Lake Cluff Lake Rabbit Lake BRITISH COLUMBIA Cigar Lake Key Lake McArthur River ALBERTA SASKATCHEWAN MANITOBA University of ONTARIO Saskatchewan TRIUMF Saskatchewan Research Council Whiteshell Laboratories QUEBEC NEWFOUNDLAND AND LABRADOR P.E.L. NEW BRUNSWICK Gentilly 1 & 2. NOVA SCOTIA Point Lepreau Rophton NPD. Elliot Lake Area Agnew Lake- Western Waste Management Facility Douglas Point Chalk River Laboratories Deloro Port Hope, Port Granby Darlington Pickering ECONOMIC $5B to the economy; 30,000 direct jobs. $26B investments to reburbish Ontario's fleet. .1.4B uranium exports annually; powers 1 in 17 American homes. 19 home-grown CANDU reactors for 15% of Canada's electricity - 60% in ON, 33% in NB. 30 CANDU reactors around the world -5% of global installed capacity. SMA Saskatchewan Mining Association#24Emerging Opportunities: Critical Minerals, Electrification & Battery Minerals, REE, Diamonds CANADA IS A GLOBAL LEADER IN RESPONSIBLE AND SUSTAINABLE MINING OF CRITICAL MINERALS 2nd GLOBAL PRODUCER 3rd 1st of of PALLADIUM and URANIUM POTASH 19 of NIOBIUM K 41 Nb Ü and TITANIUM 46 Pd 4th of ALUMINUM, INDIUM(refined) and PLATINUM 49 Pt 6 C 5th of GRAPHITE and NICKEL Carbon 28 Ni Nickel 78 22 13 Ti Al In Potassium Niobium Uranium Palladium Titanium Indium Aluminium Platinum CANADA IS AN EMERGING SUPPLIER OF MANY OTHER CRITICAL MINERALS INCLUDING RARE EARTH ELEMENTS, LITHIUM, VANADIUM, MANGANESE, PHOSPHATE AND MAGNESIUM Rare earth elements Cobalt, bismuth, copper Zinc, copper LEADING ECONOMIES ARE LOOKING FOR SECURE AND RELIABLE SOURCES OF CRITICAL MINERALS Canada's partners have identified critical minerals that serve as essential inputs to their respective industrial bases Tungsten GOODST Barite Molybdenum Niobium Aluminium Molybdenum, coppar Molybdenum Nickel, cobalt Petash Lithium Uranium Nickel, copper, cobalt Phosphate Lithium Mine Nickel, copper, cobalt, platinum group elements Smelter or refinery Advanced project Nickell, cobalt, platinum group elements Rare earth elements Nickel, cobalt Titanium Antimony Aluminum Fluorspar Tin, tungsten, indium, gallium Magnesium Niobium Chromite Graphite Graphite Vanadium Nickel, cobalt, platinum group elements SMA Saskatchewan Mining Association#25Clean Energy & Tech Minerals: Copper Development/Pre-Production Copper- Foran Mining: • . Copper required as key component of most clean energy technologies and electrification EV require 4X Cu than conventional ICE - Global requirement – in next 25 years have to produce as much Cu as in the last 5000 years. Where will Cu come from? 40% global copper from higher risk SA countries. Mcllvenna Bay Mine- Target Carbon Neutral Production. • Hardrock VMS base metal deposit (smaller footprint) • 25.7 Mt at 2.51% CuEq 18 yr initial LOM; deposit open • Concentrated on site; truck to Flin Flon, shipped by rail to Canadian smelters Construction expected to start in 2023 356 359 M SMA Saskatchewan Mining Association#26Clean Energy/Battery & Tech Minerals: Lithium & REE Development/Pre-Production/Production Lithium: Arizona Lithium: * • Lithium brines within Willison Basin, southern Saskatchewan (W Estevan) Leveraging Oil and gas technology and skilled workforce Rare Earth Elements: SRC & Cheetah Minerals/Vital Minerals • First Rare Earth Mine in Canada - Nechalacho, NWT (June 2021) SRC and Vital metals REE processing facilities in Saskatoon - first in North America & will serve GLOBAL markets Mid-stream manufacturing components for electrification/batteries/technology First-Ever Dedicated Lithium Brine Well in Saskatchewan Prairie Lithium producing a high-grade product of 99.7% lithium concentrate. saskatchewan.ca Saskatchewan Scandin Oxide Holmiu Erbium oxide Neodymium Oxide Cerium Oxide • Value added: Minerals to Metals to Batteries SMA Saskatchewan Mining Association#27Other Mineral Production: Coal & Gold Coal • . SK primary source of baseload power supply (30%) Lignite coal strip mines in the Estevan & Coronach areas (Westmoreland Mining Holdings LLC) Clean Coal Technology Project Estevan ($1.4B) (CCS capture 4.3 M tonnes CO2 since 2014 = capture emissions from >1 M cars) Exploring other non-thermal purposes Gold SSR Mining - Seabee Gold Operation & Santoy Mine Surpassed 1 M oz Au production Aug 2012; closing in on 2 M oz • 2021 • 2022 record gold production of 118,888 troy oz. record 136, 125 tr oz production#28Other Notable Minerals: Diamonds Development/Pre-Production Star Diamond/Rio Tinto Expl Canada JV - Fort a La Corne (Falcon Project) ● • Central Saskatchewan; east of PA 2018 PEA - 66 M carats of diamonds with 38 year Mine Life Orion South 10.53 carat Fancy Yellow $8,000/ct US$84,240 5903000N Star 5.39 carat IF $2,466/ct US$13,300 Star 4.77 carat IF $4,535/ct US$21,600 Star 11.96 carat Orion South 15.88 carat Type lla $11,333/ct US$135,543 511000E Makeable $2.977/ct US$47,300 • Large contiguous diamond bearing kimberlite field (Star, Orion) Fully permitted 5902000H 5901000N 5900000N Overburden Pile 5899000N 6898000N 5897000N 5896000N 5895000N Orion South Pit Star Pit 2000 D 2000 4000m Access Road Coärse Processed Kimberlite 5903000N 5902000N 5901000N Processed 5900000N Kimberlite Plant & Containment Facility 5899000N Facilities Power Line Saskatchewan River 5898000N 5897000N 5896000N 5895000N UTM Zone 13 Nad 27 Coordinates General Arrangement Orion South - Star Site Layout Diamond Project#29EXPLORATION INVESTMENTS THROUGH THE SUPPLY CHAIN SMA conducted a survey of Exploration Members in 2021 to better understand how their 2019 exploration investments were distributed in northern Saskatchewan and amongst the supplier ecosystem. Exploration Investment by Region 15% Mineral Exploration Spend by Activity $243M In Exploration >100 Project Employment $1.3M Average Program Spend >1000 Direct Fulland Part-time Emplo Community Engagement $10.4M P+1000 Induct Contradors SMA Expandium- 43%- 16% - Key Activities and Suppliers >120 36 Saskatchewan Mining Association#30Your Constructi Solutions Parrac MUNS f Education Outreach Program Ο FC เบก Teachers Pay Teachers SMA Saskatchewan Mining Association#312022 Impact Connected with... > 5000 Students > 750 Teachers > 80 Communities Thank you so much for giving me this opportunity. One of the most interesting, relevant and engaging PD ventures I've been on. I feel more worldly from having this experience!! - Tracy Huckell, Esterhazy High School GeoVenture Program Seeing is believing! A week long opportunity for educators to explore SK's mineral resources through workshops, industry presentations, mine/mill tours and free curriculum resources 13 Teachers Orano: McClean Lake, KSPC: Bethune, Westmoreland: Poplar River, Mosaic: Colonsay, SRC: Diamond Lab New This Year! Partnered with SaskCode to develop a Mining Robotics Kit. The "Fly Away Birdy" challenge launched in December. 120 Students Renewal of Energy & Mines 10, 20, & 30 curriculum with the Ministry of Education. Potash Kits > 200 Mailed 25 Divisions RTASH KIT New! 5 Part Video Series Created a Teachers Pay Teachers website page with all of our FREE resources. > 900 Downloads MAP Events 30 300 Workshops & Career Fairs Visitors at Family Safety Zone Minerals And Products Explore the stages of the mining cycle through curriculum correlated hands-on pavilions! Discover exciting career opportunities. Learn how we use the products of mining in our daily lives. Beauval, SK 250 students 14 Communities SMA Saskatchewan Mining Association#322022 FALL & WINTER THE OFFICIAL PUBLICATION OF THE SASKATCHEWAN MINING ASSOCIATION ORE MAGAZINE FEATURE: A GLOBAL ENERGY AND FOOD SECURITY LEADER | PG 12 MINING: DRIVEN BY INNOVATION PG 29 SMA Saskatchewan Mining Association Publication Mail Agreement No. 42154021 SASKATCHEWAN: A GROWING CRITICAL MINERALS HUB PG 6 Questions? SK Mining Week: 53rd ERMRC Saturday, June 3rd, Prairieland Park, Saskatoon M SMA Saskatchewan Mining Association