Capital Cost Estimate. Feasibility Study - Laterite Treatment Plant in Becancour, QC. Submitted to. Nichromet Extraction.

Capital Cost Estimate Feasibility Study - Laterite Treatment Plant in Becancour, QC Submitted to Nichromet Extraction O/Ref : 47812-300 June 26, 2008

Capital Cost Estimate Feasibility Study - Laterite Treatment Plant in Becancour, QC O/Ref : 47812-300 Submitted to Nichromet Extraction June 26, 2008 Prepared by: Yves Roussel, ing. Sylvain Boucher, ing. Marc Bilodeau, ing.

Table of Contents List of Tables... ii List of Appendixes... ii 1. Introduction... 1 1.1 Background... 1 2. Basis for Estimation... 2 3. Methodology... 3 3.1 Basis for Process... 3 3.2 Site Review... 3 3.3 Estimation Assumptions...4 3.3.1 Mechanical... 4 3.3.2 Electrical/instrumentation/control... 4 4. Estimation Results... 5 4.1 Direct Costs... 7 4.2 Indirect Costs... 7 5. Comments on Other Cost Elements... 8 5.1 Becancour Facilities... 8 5.2 Equipment... 8 5.3 Labour for Construction... 8 5.4 Refurbishing and Commissioning... 9 5.5 Start-up... 9 5.6 Exclusions...10 6. Summary...11 Nichromet Extraction Feasibility Study - Laterite Treatment Plant in Becancour, QC O/Ref : 47812-300 i Capital Cost Estimate June 26, 2008

List of Tables Table 1: Estimation Summary- 5 t/hr Plant Becancour... 6 List of Appendixes Appendix A: Process Flow Diagrams Appendix B: Global Budget for the Construction of a 5-t/hr Plant in Becancour Appendix C: Estimation- 5 t/hr Becancour plant Nichromet Extraction Feasibility Study - Laterite Treatment Plant in Becancour, QC O/Ref : 47812-300 ii Capital Cost Estimate June 26, 2008

1. Introduction 1.1 Background Nichromet Extraction (hereafter NICHROMET) has established in Thetford Mines, Québec, a pilot plant, at a scale of 1 t/hr, in order to validate a proprietary process for the extraction, from various mineral sources, of valuable metallic compounds, such as nickel and magnesium chlorides, as well as for the production of fertilizers, such as magnesium and potassium sulphate (SOPM). More precisely, minerals such as serpentine tailings and lateritic ores were tested in this pilot plant unit over the past few months. Roche Ltd, Consulting Group (hereafter ROCHE) was selected by NICHROMET, in October 2007, to conduct a feasibility study and an exploratory market study of their project to establish a demonstration plant in the province of Québec, using the same process. Nichromet Extraction Feasibility Study - Laterite Treatment Plant in Becancour, QC O/Ref : 47812-300 1 Capital Cost Estimate June 26, 2008

2. Basis for Estimation The present capital cost estimate applies to the implementation of the NICHROMET extraction process, within an existing industrial facility located in Becancour, Québec. The selected site consists of industrial buildings and equipment of a former magnesium producer, Norsk Hydro Canada. The nature of NICHROMET s process (hydrochloric acid route) to be implemented presents significant similarities with the one established by the former owner. This is allowing the reutilization of some equipment still present on the selected site. Basis assumptions for the establishment and the capital cost estimate of the NICHROMET process at that site are: 1. Lateritic ore received by boat (ground and dried). Plant treatment capacity is 5 t/hr of this mineral. 2. Construction period of 9 months. 3. Start-up and commissioning period of 6 months total. 4. Receiving and shipping by truck (connection to railway track postponed). 5. Steam provided by TCE via existing pipe rack passing nearby selected buildings. 6. Laboratory equipment recovered from pilot plant. 7. Existing underground piping not dismantled on whole site. Effluent treatment and settling pound considered accessible to NICHROMET. 8. KCl received in bulk by truck. 9. All new motors will be reconditioned motors (rewinded). 10. NICHROMET s own personnel used to carry out 30% of the required works (in terms of hours not value) at an hourly rate of $32 including fringe benefits. 11. US and Canadian dollars at par for equipment purchased in USA. Nichromet Extraction Feasibility Study - Laterite Treatment Plant in Becancour, QC O/Ref : 47812-300 2 Capital Cost Estimate June 26, 2008

3. Methodology 3.1 Basis for Process The facilities under the scope of this evaluation are defined within the process flow diagrams provided in Appendix A. These PFD s were issued by NICHROMET and represent a scale-up of their pilot plant process adapted to the selected Becancour site. They also reflect NICHROMET s will to optimize reutilization of existing buildings and equipment, whenever possible. These PFD s are classified under the following designations: PFD-01 Production of HCL PFD-02 MgO PFD-03 H 2 S0 4 PFD-04 KCl PFD-05 HCl Liquid PFD-06 SOPM PFD-07 MgCl 2 PFD-08 Steam PFD-09 Compressed air PFD-11 Process water PFD-12 Effluent PFD-13 Cooling water PFD-14 Brine PFD-15 Lateritic ore handling 3.2 Site Review The proposed site for the implementation of the plant was visited and surveyed by ROCHE and NICHROMET. General guidelines for the layout establishment that were given by NICHROMET at this time were used by ROCHE in its estimation. At the request of our client, this evaluation is based on the following principles: Reuse as much as possible existing equipment on selected site. Any cost for reconditioning, recalibrating and restarting existing equipment considered as is on site, whether mechanical or electrical, to be covered under the Refurbishing and Commissioning budget (refer to section 5 on other cost elements); Nichromet Extraction Feasibility Study - Laterite Treatment Plant in Becancour, QC O/Ref : 47812-300 3 Capital Cost Estimate June 26, 2008

Evaluate missing equipment cost on the basis of refurbished equipment purchase whenever possible and available on today s refurbished equipment market; Evaluation for any required additional motors based on use of rewinded motors. 3.3 Estimation Assumptions 3.3.1 Mechanical Our estimation technique consisted in breaking down construction works required using the PFD s. Two main operating areas were defined: the leaching plant and the HCl/SOPM production area. Complementary to these areas are raw material handling facilities and storage area for process materials (sulphuric acid, potash, magnesium oxide) and products (nickel chloride, SOPM, magnesium chloride). In the case of the leaching plant, where the proportion of existing equipment reutilization is the highest, estimation elements are more easily determined from a better definition of the required modifications and adaptations of existing equipment. For the HCl and SOPM production area, since the proportion of existing equipment reutilization is lower, evaluations are more based on a preliminary layout and estimated construction costs, and associated adaptations/modifications are to the best of our current knowledge. Nevertheless, we believe that necessary provisions are included. Further detailed engineering will of course precise these issues and capital cost is to be reviewed and confirmed accordingly at further project stages. As mentioned in the previous section, whenever possible refurbished equipment is considered, unless found non-economic due to additional cost of adaptation/modification that such refurbished equipment would induce. Finally, estimation assumes no overtime during the construction period, no winter conditions and that no pension fees are paid to the required personnel, assuming that local trade manpower will be available for the whole duration of the construction period. 3.3.2 Electrical/instrumentation/control Our estimate assumption was also the utilization of refurbished and reconditioned material whenever possible (starters, push-button stations, cable trays, etc.). For cables and instruments, unless they were pointed out as existing by NICHROMET, new material was considered. For control systems, the assumption was the purchase of two new process controllers, one for each of the main operation buildings. Nichromet Extraction Feasibility Study - Laterite Treatment Plant in Becancour, QC O/Ref : 47812-300 4 Capital Cost Estimate June 26, 2008

4. Estimation Results The table below summarizes the cost by various disciplines to implement the NICHROMET process, at the selected industrial site of Becancour and as per the process flow diagrams mentioned earlier. These costs should be considered as budgetary and therefore refinement must be expected at a further detailed engineering phase. The present estimation accuracy is evaluated at ±20% and stands for the current level of process definition. During the detailed engineering phase, the present process configuration should be maintained and evolve in detail not in complexity, unless the economic impact of any add-ons is thoroughly evaluated and confirmed to remain within the accuracy level of the present figures. Nichromet Extraction Feasibility Study - Laterite Treatment Plant in Becancour, QC O/Ref : 47812-300 5 Capital Cost Estimate June 26, 2008

Table 1: Estimation Summary- 5 t/hr Plant Becancour PRELIMINARY ESTIMATION - SUMMARY - 5 Tons/hr Becancour plant Projet #: 47812-300 Client: Nicromet extraction inc. Niveau d'estimation Document #: - Budgetary ± 20% Date: 2008-06-26 Project manager: David Lemieux Detail ± 10% Révision: 26-juin-08 DESCRIPTION Direct purchases Material Labour TOTAL $ $ $ M.-H. Total $ DIRECT COSTS WBS.0101 Civil 189 800 $ 8 108 $ 34 466 $ 460 232 373 $ WBS.0201 Structure 12 000 $ 124 028 $ 187 347 $ 2 498 323 374 $ WBS.0301 Building 224 370 $ 21 620 $ 50 405 $ 672 296 395 $ WBS.0401 Mechanical equipement 3 690 060 $ 95 508 $ 567 077 $ 7 561 4 352 644 $ WBS.0501 Piping 801 050 $ 582 878 $ 1 024 455 $ 13 659 2 408 382 $ WBS.0601 Electricity 284 290 $ 169 579 $ 363 849 $ 4 851 817 718 $ WBS.0701 Instrumentation 245 800 $ 80 926 $ 161 276 $ 2 150 488 002 $ WBS.0801 Insulation & painting - $ 64 688 $ 331 028 $ 4 414 395 715 $ WBS.0901 Laboratory & safety Total direct costs 5 447 370 $ 1 147 332 $ 2 719 900 $ 36 265 9 314 602 $ INDIRECT COSTS WBS.1801 Preliminary engineering 0,0% - $ - - $ WBS.1802 Detail engineering 0,0% - $ - - $ WBS.1803 Inspection 0,6% 52 725 $ 703 52 725 $ WBS.1804 Field coordination 0,7% 65 175 $ 869 65 175 $ WBS.1809 Safety 0,3% 30 000 $ 400 30 000 $ WBS.1807 PSSR 0,0% - $ - - $ WBS.1901 Others 0,0% - $ - - $ % vs total direct costs Total indirect costs 2% 147 900 $ 1 972 147 900 $ TOTAL DIRECT COST & INDIRECT 5 447 370 $ 1 147 332 $ 2 867 800 $ 38 237 9 462 502 $ Other expenses General expenses 0,0% - $ Transport 0,0% - $ Insurances 0,0% - $ Custom expenses 0,0% - $ WBS.1201 Permit 0,0% - $ WBS.98 Contingencies 0,0% - $ % vs total direct & indirect costs Total other expenses 0% - $ TOTAL, Taxes and corporatif costs excluded 9 462 510 $ Prepared by: Y. Roussel Denis Labrecque Date: 2008-06-26 Verified by: M. Bilodeau Sylvain Boucher Date: 2008-06-26 Nichromet Extraction Feasibility Study - Laterite Treatment Plant in Becancour, QC O/Ref : 47812-300 6 Capital Cost Estimate June 26, 2008

4.1 Direct Costs The total direct costs for the construction and implementation of NICHROMET s process at the selected Becancour site amounts to $9.3 M CA. The main cost elements are mechanical/piping and electricity, which account for about 80% of the direct costs. Of this amount, about $5.5 M CA is allocated to equipment purchases, mostly as refurbished machinery, allowing maintaining the required investment at a fairly low level, significantly lower than new equipment. Labour rate used for most of the construction works is $65 per hour before administration / profit and general fees (respectively 10% and 5%), slightly below the current average Quebec industrial market. This difference can be explained by the fact that NICHROMET intends to negotiate a long-term relationship with the selected contractors and try to optimize the works performed outside the construction decree. Note that any variation of ± $5 in the hourly rate translates into a corresponding variation of ± $190,000 in the labour cost. 4.2 Indirect Costs Very few indirect costs are included and mostly pertain to the inspection required for any existing and used material and equipment, field and safety coordination during construction phase. It is therefore assumed that construction management is fully under NICHROMET s direction. Cost for such management is included in the consolidated budget for the plant implementation. This budget is reviewed and discussed in the next chapter. Nichromet Extraction Feasibility Study - Laterite Treatment Plant in Becancour, QC O/Ref : 47812-300 7 Capital Cost Estimate June 26, 2008

5. Comments on Other Cost Elements Appendix B presents the global construction budget and all its various cost elements (complete breakdown) that should be incurred for the implementation of NICHROMET s process, i.e. the treatment of 5 t/hr of lateritic ores, at the selected site of Bécancour. 5.1 Becancour Facilities The amount set forth represents the options in favour of NICHROMET to acquire the selected site, buildings and relevant equipment. These figures were given to ROCHE by NICHROMET. 5.2 Equipment This amount represents the estimation carried out by ROCHE s personnel for the purchase of missing equipment, from the refurbished machinery market. It also covers the cost of installation of such equipment as well as any modification required to existing ones to fit into NICHROMET s process. On the counterpart, any cost for maintenance or upgrade of existing equipments is covered under the refurbishing/commissioning section. 5.3 Labour for Construction This section includes the labour cost of the various disciplines needed to install and adapt all the purchased equipment, as well as to modify the existing ones in order to run NICHROMET s process at the selected facilities. For a certain portion of the works (30%), we assumed the use of NICHROMET s personnel to carry them out, as an example in the leaching plant, where the works can be more readily associated to maintenance than construction. This would allow NICHROMET to use its own personnel, at a much lower hourly rate ($32) than regular construction trades. Labour cost reduction is therefore an estimate of the gain in using NICHROMET s personnel to reduce construction labour requirements, by assigning this personnel to labour tasks evaluated in the estimate. This is of course assuming excellent planning of the work on the site insuring that work carried on by NICHROMET s personnel is effectively reducing the estimated workload. Furthermore, the establishment of a good strategy with regard to the organization, along with experienced contractors in the industrial field, of the whole construction site is of significant importance, in order to insure maintenance of good relations with union representatives of the required trades in the full respect of Quebec labour laws and construction collective agreements. Nichromet Extraction Feasibility Study - Laterite Treatment Plant in Becancour, QC O/Ref : 47812-300 8 Capital Cost Estimate June 26, 2008

All the detailed design engineering for the implementation of the process in the selected facilities will be performed internally by the NICHROMET personnel. The cost of internal engineering represents the salaries of the required staff fully dedicated to this project during the design period, for a total amount of $690,000. Therefore, no amount has been allocated to external engineering performed by an outside firm. Note that a total ratio of about 6.9% of project value (estimated here at about $10 M) in engineering is then considered, compared to an industrial standard ranging between 10 and 12% but taking into account the reduced hourly rates for internal engineering and that a lot of existing drawings will come along with the purchase of the Becancour facilities. ROCHE considers this cost to be slightly optimistic. Finally, the element construction management and administration is the allocation of NICHROMET s personnel dedicated full time on the construction management and purchasing aspects of the project, for a total amount of $420,000. Then the ratio for the total allocation for construction management, purchasing, field coordination/supervision, safety, inspection and administration is brought to about 6.4% of the project value, representing more or less the ratio normally encountered in the industry. 5.4 Refurbishing and Commissioning This section covers the costs of manpower for three months and material necessary to repair and recondition existing equipment acquired within the selected site. Since this equipment were left without maintenance for over 18 months, these costs needs to be forecasted. The purchase of Norsk Hydro s spare parts inventory associated with such equipment, as well as the utilization of NICHROMET s personnel will also contribute to maintain such refurbishing costs to a reasonable level. 5.5 Start-up This section includes the manpower material necessary to initiate the production over a period of three months. The amount of $930,000 represents one month of the main raw materials (sulphuric acid, potash, magnesia and ore) at 50% capacity and current market prices. For the lateritic ore requirements, no acquisition cost is presently forecasted since a partnership is assumed with the ore supplier. Only transport cost from overseas deposit to Quebec is considered at $75 /ton. Nichromet Extraction Feasibility Study - Laterite Treatment Plant in Becancour, QC O/Ref : 47812-300 9 Capital Cost Estimate June 26, 2008

5.6 Exclusions The following elements are not included in the consolidated budget presented below: Financial cost to support initial finished products inventory and accounts receivable; Initial operating costs during commissioning/start-up; Personnel training fees; Any legal, marketing and financial costs associated with the project implementation; Modifications to existing buildings beyond some emergency repairs ($20,000) included in the refurbishing budget. Nichromet Extraction Feasibility Study - Laterite Treatment Plant in Becancour, QC O/Ref : 47812-300 10 Capital Cost Estimate June 26, 2008

6. Summary The total budget for the implementation of the NICHROMET s process at the Becancour existing facility to treat 5 t/hr of lateritic ore is estimated to $20.3 M CA. Such investment is based on NICHROMET s approach to reuse as much as possible refurbished equipment in the establishment of their production units. This significantly reduces the required investment. NICHROMET has in the past demonstrated its ability to manage a project based on the maximum reutilization of refurbished material. The present project is estimated on this basis set forth by NICHROMET. ROCHE is confident that this estimation represents as of June 2008 the correct amount of capital to invest to achieve the desired process as documented into the PFD s and by using NICHROMET s approach of close management and acquisition / adaptation of refurbished equipment. However, due to the significant size of the investment considered, while progressing further in detailing this future plant, regular reviews of this capital cost estimate are recommended during the next stages of the project to insure that the overall investment is continuously maintained within the target limits. Nichromet Extraction Feasibility Study - Laterite Treatment Plant in Becancour, QC O/Ref : 47812-300 11 Capital Cost Estimate June 26, 2008

Appendix A Process Flow Diagrams

To ATM Sector 40 Exhaust fan Water ref. 11 C-17-- Exhaust fan K41001 ( _;550 ; _; 59) ( _;550 ; _; 59) C-15-- K41002 Tail scrubber ( _; _;5 ;59 ) C41003 Water ref. 11 HCl 21% from leach reactor gas scrubber sector 20 ( _; _;5 ;_) intermitent flow ref. 05 P C41005 Safety scrubber P HCl 21% from leach reactor gas scrubber sector 20 intermitent flow ref. 05 Tail scrubber Water ref. 11 ( _; _;5 ;_) ( _; _;5 ;59 ) C41004 21% HCl ( _; _;5 ;_) C41001 Absorber Cooling water to cooling tower ref. 13 Y41009 K41003 Safety scubber exhaust fan Cooling water to cooling tower Y41012 ref. 13 Absorber C41002 21% HCl ( _; _;5 ;_) ( _ ;600; _ ; 40) Cooling water from cooling tower ref. 13 To ATM Y41010 Y41011 Y41001 Y41002 Y41003 Y41004 (_;830;_ ;320) (_;830;_ ;320) A41001 A41002 To ATM A41003 A41004 Cooling water from cooling tower ref. 13 To ATM ( _ ;600; _ ; 40) HCl 32% down to HCl collecting tanks by gravity ref. 05 (T/h;CFM;GPM; F) Rupture disc Y41005 Compressed air ref. 09 T 3000 gal. glass lined reactor 1 Condensate ref. 08-20" P H2O Steam 150 psig ref. 08 Y41006 Y41007 Rupture disc -20" P T T -20" P -20" P H2O H2O H2O 3000 gal. glass lined reactor 2 Compressed air ref. 09 3000 gal. glass lined reactor 3 Water ref. 11 T 3000 gal. glass lined reactor 4 R41001 R41002 R41003 R41004 Condensate ref. 08 Steam 150 psig ref. 08 Condensate ref. 08 Steam 150 psig ref. 08 (0,5; _ ; _ ; _) Condensate ref. 08 TITRE Rupture disc Y41008 (3,2; _ ; _ ; _) (3,2; _; _; _) Water ref. 11 (0,5; _ ; _ ; _) (0,5; _ ; _ ; _) Compressed air re. 09 # DE DESSIN REALISE PAR Steam 150 psig ref. 08 (0,5; _ ; _ ; _) 01 PRODUCTION HCL FRANÇOIS LAROUCHE HCl 32% down to HCl collecting tanks by gravity ref. 05 PAGE DATE DE MODIFICATION 2008-06-19 1 SUR 1

Sector 20 Fe precipitation To atm Overhead crane Sector 30 Y22002 A21402 Water ref. 11 (_;22;_) Water ref. 11 A22001 F22001 (5;_;_) MgO baghouse collector MgO giant bag N32001 LT ph 2 T21402 LT MgO slurry mixing tank Load cell MgO bin Load cell Compressed air ref. 09 (_;90;_) P22001 T22001 Y22001 M32001 Pneumatic system Compressed air ref. 09 Pipe rack Y42005 Sector 40 MgO baghouse collector F42001 To atm Loading time: 20 min (6,8;_;_) A42001 From SOPM filtration brine holding tank ref. 06 (_;30;_) A41001 A41002 A41003 A41004 Y42001 Y42002 Y42003 Y42004 Water ref. 11 Reactor 1 Reactor 2 Reactor 3 Reactor 4 LT MgO slurry mixing tank Load cell R41001 R41002 R41003 R41004 T42001 (_;90;_) (T/h;GPM; F) P42001 # DE DESSIN 02 TITRE MGO PFD REALISE PAR PAGE FRANÇOIS LAROUCHE 1 SUR 1 DATE DE MODIFICATION 2008-06-17

Sector 50 H 2 SO 4 100 000 gal H 2 SO 4 holding tank (_;66; 70) insulated piping T53001 P53001 F Sector 40 Loading time: 10 min A41001 Y43001 Y43002 A41002 A41003 Y43003 A41004 Y43004 (_;66;_) (_;66;_) (_;66;_) (_;66;_) Reactor 1 Reactor 2 Reactor 3 Reactor 4 R41001 R41002 R41003 R41004 (T/h;GPM; F) # DE DESSIN 03 TITRE H2SO4 PFD REALISE PAR PAGE FRANÇOIS LAROUCHE 1 SUR 1 DATE DE MODIFICATION 2008-06-17

Sector 30 KCl silo 1 60 T KCl silo 2 60 T N34002A N34002B M34004 M34005 M34003 (2,5; _ ; ; _ ) (2,5; _ ; ) M34001 Pneumatic system Compressed air ref. 09 Y44003 Y44004 Sector 40 KCl To atm baghouse collector F44001 (1,25; _ ;_ ) To atm KCl baghouse collector (1,25; _ ;_ ) F44002 (5; _ ; _ ) Rotary valve X44001 Y distributor KCl bin 600 gal N44001 Gate Y44001 Screw conveyor Y distributor KCl bin 600 gal N44002 GateY44002 A41001 A41002 (5; _ ; _ ) (5; _ ; _ ) A41003 A41004 (5; _ ; _ ) M44001 M44002 M44003 M44004 Load cell Rotary Rotary Screw conveyor Rotary valve valve valve X44002 X44003 X44004 Loading time: 15 min Reactor 1 Reactor 2 Reactor 3 Reactor 4 R41001 R41002 R41003 R41004 ( _;3 ; _ ) ( _;3 ; _ ) ( _;3 ; _ ) ( _;3 ; _ ) (T/h;GPM, F) SOPM to cooling tank ref. 06 # DE DESSIN 04 TITRE KCL PFD REALISE PAR PAGE FRANÇOIS LAROUCHE 1 SUR 1 DATE DE MODIFICATION 2008-06-17

Sector 20 To ATM Vacuum fan K25001A HCl 32% from HCl gas circuit ref. 01 Vent C25001 Vacuum fan K25001B A21401 A21402 Scrubber Sector 40 (_; 150 ; 160) LT HCl 32% holding tank (_ ;25 ;_ ) 28 400 gal 21 000 gal HCl 32% holding tank LT Steam 15 psi ref. 08 (32,6; _ ;_ ) Leach reactor A R21401 Leach reactor B R21402 ( _ ; 150 ; 160) T25001 21% HCl collecting tank P25001 ( _;5 ;_ ) To HCl gas absorber, sector 40, ref. 01 T45001A T45001B HCl pre-heater (_ ;150; 60) H25001 P45001B # DE DESSIN TITRE 05 (T/h;gpm; F) P45001A Condensate return ref. 08 HCL LIQUID PFD REALISE PAR PAGE FRANÇOIS LAROUCHE 1 SUR 1 DATE DE MODIFICATION 2008-06-17

MgCl2 30% from holgin tank sector 50 Reactor 1 Ref. # 07 Reactor 2 R41001 Cooling water ref. 13 Water return ref. 13 MgO/SOPM brine from MgO slurry mixing tank sector 40 (6,5;50;180) Ref. # 04 A46001 Cooling tank 4000 gal T46001 Water ref. 11 Compressed air ref. 09 R41002 Diaphragm pump P46001 Reactor 3 SOPM brine from reactors 3 and 4 from sector 40 (6,5;50;180) Reactor 4 Ref. # 04 R41003 R41004 Condensate return ref. 08 (6,5;50;70) Belt filter 4' X 25' -22" Hg vacuum D46001 ( _ ;25 ; _ ) Condensate return ref. 08 (6,5 ; 50 ; 70) Belt filter 4' X 25' F46001 K46003 Pompe à vide NASH Cl2002 Separator -22" Hg vacuum Water ref. 11 F46002 K46004 H46001 Water ref. 11 To ATM H46002 To ATM Steam 15 psi ref. 08 Vibratory conveyor M46001 Natural gas burner (10,5 ; _ ;_ ) 50% solid Steam 15 psi ref.08 Natural gas K46001 Dryer I46001 Exhaust fan K46002 ( 6,5 ;_ ;392) Vibratory conveyor Binder M46005 Pelletizer M46002 To ATM Cyclone L46001 X46001?46001 Dried SOPM bin 2640 gal N46001 Rotary valve Sector 40 Cooling water ref. 13 Water return ref. 13 A46002 Cooling tank 4000 gal T46002 Water ref. 11 Compressed air ref. 09 Diaphragm pump P46002 D46002 Pompe à vide NASH Cl2002 Separator A46003 (2,5 ; 50 ; 70) SOPM < 4mm > 2mm SOPM particle bag to warehouse Double deck sieve First: 4 mm Second: 2mm (6,5; _ ; _) Belt conveyor M46004?46001 < 2mm particle Bucket elevator M46003 ( _ ;25 ; _ ) T46003 Holding tank brine 3000 gal Water ref. 11 # DE DESSIN TITRE 06 SOPM PFD (T/h;gpm; F) To MgO slurry mixing tank ref. 02 ( _ ;25 ; _ ) P46003 REALISE PAR FRANÇOIS LAROUCHE PAGE DATE DE MODIFICATION 2008-06-13 1 SUR 1

Sector 50 ( 0,7 ;3 ;_ ) 28 000 gal LT MgCl 2 30% storage tank 28 000 gal ( _ ;75 ; _ ) T57002A LT MgCl 2 30% storage tank From Mn precipitation sector 20 LT 30 000 gal MgCl 2 10% holding tank T57001 P57002 ( 3,9 ;13 ; _ ) To SOPM reactors Sector 40 T57002B insulated piping Condenser Vacuum pump To ATM P57001 insulated piping insulated piping (7,7; _ ; 217 ) U47001 (7,7; _ ; _ ) Separator Water from cooling tower ref. 13 H47002 Water to cooling tower ref. 13 K47001 Steam at 150 psig Evaporator A41002 A41004 P47001 Condensated water ref. 11 ( _ ;20 ; _ ) A41001 A41003 Steam trap R41001 R41002 SOPM reactors R41003 R41004 (_ ;60 ;70 ) H47003 H47001 T ( _ ;34; _ ) Condensate return ref. 08 # DE DESSIN 07 TITRE MGCL2 PFD REALISE PAR FRANÇOIS LAROUCHE PAGE 1 SUR 1 (T/h;gpm; F) DATE DE MODIFICATION 2008-06-17

TCE condensate return T F (32 000; _ ; 300 ) TCE 450 psig steam Pipe rack PRV 450-150 psig Fflowmeter (supplied by TCE) Desuperheater F (30 600; 150; 460 ) (32 000; 150; 320 ) Water (1380 ; _: 60) ref. 11 H48001 Y48001 Tie-in for rental boiler Y48002 PRV 150-15 psig (3500; 15 ; 250 ) Unit heater (14) 250 lb/unit H48002 to H48015 T Steam trap H46001 F46001 H46002 F46002 Steam trap T Steam trap T (6500; _ ; 200 ) Vent to atm Safety valve Y48003 Vent to atm LP condensate return tank 200 gal T48001 LT P48001 Vent to atm Sector 40 2"1/2 piping to sector 20 (21 800; 150 ; 320 ) (17 000; _ ; _ ) Evaporator MgCl2 H47001 T Steam trap (4800; 150 ; 320 ) 34 gpm A41001 SOPM reactor 1 R41001 A41002 SOPM reactor 2 R41002 A41003 SOPM reactor 3 R41003 A41004 SOPM reactor 4 R41004 Drain Drain Drain Drain Water T T T T Water Water Water ref. 12 ref. 12 ref. 12 ref. 12 Steam trap Steam trap Steam trap Steam trap (4800; _ ; 300 ) (17 000; _ ; 300 ) HP condensate return tank 1000 gal 100 psi V48002 LT Safety valve Y48004 P48002 (3700; 150; 320 ) Y28001 Unit heater (10) 250 lb/unit Sector 20 (3700; _ ; 200 ) PRV 150-15 psig T H28001 to H28010 Steam trap Vent to atm H25001 T # DE DESSIN 08 HCl pre-heater (1200; 15 ; 250 ) Steam trap LP condensate return tank 2000 gal T28001 LT TITRE STEAM PFD REALISE PAR FRANÇOIS LAROUCHE PAGE 1 SUR 1 (lb/hre; psig ; F ) P28001 DATE DE MODIFICATION 2008-06-17

K49001 2" A41002 SOPM reactors A41003 2" Air compressor 250 HP Air 3" dryer 3" 3" 2" A41004 3" Sector 40 instrumentation Sector 50 Sector 50 instrumentation 2" Sector 60 instrumentation R41001 R41002 R41003 R41004 From SOPM cooling tank T46001 ref. 06 P46001 Diaphragm pump From SOPM cooling tank T46002 P46002 ref. 06 Diaphragm pump 3" Sector 60 2" 2" Sector 40 Mn precipitation Fe precipitation A21411 A21412 A21413 A21402 A21403 A21404 Diaphragm pump P21405 3" Sector 20 instrumentation T21411 T21412 T21413 T21402 T21403 T21404 2" Sector 20 MgO pneumatic system KCl pneumatic system M32001 M34001 2" 2" 3" Sector 30 instrumentation # DE DESSIN 09 TITRE COMPRESSED AIR PFD REALISE PAR PAGE FRANÇOIS LAROUCHE 1 SUR 1 Sector 30 DATE DE MODIFICATION 2008-06-17

Water make-up from Bécancour industrial park Y21101 Y21102 Y21103 Y21104 Y21105 Y21106 Fe precipitation Y21107 Mn precipitation Sector 20 Y21115 A21405 A21407 A21401 Leaching reactors A21402 A22001 A21402 A21403 Y21108 A21404 Y21112 A21411 Y21113 A21412 Y21114 A21413 Water holding tank T21101 LT T21405 Floculant preparation tank Floculation tank T21407 Y21109 IX resin column Leach reactor belt filter R21401 R21402 MgO slurry mixing tank T22001 T21402 P21103 (50;_ ) (50;_ ) T21403 T21404 Leach reactor belt filter T21411 Y21111 Y21110 T21412 T21413 F21403 F21401 High pressure pump F21402 P21101 To drain insulated piping MgCl 2 Condenser ref. 07 H47002 ref. 07 (20;_ ) Y41106 T46003 Holding tank brine Y41113 Y41107 SOPM belt filter F46002 F46001 Y41108 Y41109 A41001 Y41110 A41002 R41002 Y41111 A41003 A41004 R41004 Y41112 MgO slurry mixing tank T42001 Sector 40 P41101 R41001 R41003 Desuperheater H48001 (gpm; F) Y41101 Tail scrubber C41003 Y41102 Y41104 Tail scrubber C41004 Y41103 C41005 Safety scrubber Y41105 A46001 SOPM cooling tank T46001 A46002 T46002 Y41114 SOPM reactors # DE DESSIN 11 TITRE PROCESS WATER PFD REALISE PAR PAGE FRANÇOIS LAROUCHE 1 SUR 1 DATE DE MODIFICATION 2008-06-17

To St-Lawrence river Sector 90 Sector 20 IX resin column Leaching reactor Mn precipitation Fe precipitation Floor drain sector 20 Under-river tunnel A21401 A21402 A22001 A22004 A22003 A22002 MgO slurry mixing tank T22004 T22003 T22002 R21401 R21402 T22001 Waste water pond (existing) Neutralisation tank (existing) T91201 SOPM belt filter A41002 SOPM reactors A41004 Sector 40 F46001 P91201 A41001 A41003 Floor drain sector 40 F46002 R41002 R41004 MgO slurry mixing tank T42001 Sector 50 R41001 R41003 LT 28 000 gal MgCl 2 30% storage tank T57002A LT 28 000 gal MgCl 2 30% storage tank T57002B Floor drain sector 40 A46001 T46001 SOPM cooling tank A46002 T46002 # DE DESSIN TITRE REALISE PAR 12 EFFLUENT PFD PAGE FRANÇOIS LAROUCHE 1 SUR 1 DATE DE MODIFICATION 2008-06-10