Annette On first read of your response it appears that non of my concerns were taken seriously... One more try...please.

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1 From: To: Subject: Date: Miki Ehrlich FW: MV2013J True North Safaris - New LUP application - Draft LUp conditions for review (I"m away...) Friday, July 05, :54:51 AM Please post to MV2013J0006 Initial appl Other Title: TNS questions to AANDC Jul5-13 From: Gary Jaeb Sent: Thursday, July 04, :42 PM To: Annette Hopkins Cc: Zabey Nevitt - MVLWB Subject: Re: MV2013J True North Safaris - New LUP application - Draft LUp conditions for review (I'm away...) Annette On first read of your response it appears that non of my concerns were taken seriously... One more try...please. I disagree that providing lodging to mining exploration crews changes the environmental impact, BUT I have agreed to go through the process of applying to have the USE changed and go through the MVLWB process. Our approved capacity (licensed as a Tourist Establishment by ITI..not unlike a hotel in Yellowknife) is 24 guests and we can accommodate similar numbers of staff, so 24 x 2. Our waist generated is a function of the number of people staying there and our systems function well at full capacity, in the past. In fact the number of staff required to maintain the lodge and feed 24 miners is less than that of 24 fishers who require guides. We estimated that 6 staff would be adequate to lodge and feed 24 miners while we would have to add 12 guides, 2;1 ratio, for fishers or hunters. A mining company would have to obtain their own land use permit if, for example, they were storing fuel, anywhere, including on our lease. They would need to provide approved storage/containment/etc. There permits would have to include any equipment or material that is not part of our operations. You are correct that we signed and initialled the recent land lease and I admitted on the phone that we did not understand how some of the changes that were made at that time, would be interpreted by your inspectors. So now we want to apply to have some of these changes reviewed/changed. Not unlike we are asking to change the USE. Will this letter suffice to begin that process? We would expect some impartial objective review.

2 We are not an un documented or un supervised land fill site. I also was mistaken on the dates of the original letter which as you have pointed out was signed by the Director of Operations in 2010 and sent to all lodges. The point that I tried to make now is that the letter was sent again, with the apparent intent to enforce it, at a time when we were negotiating with some mining companies. I am told of other lodges that did not have to go through the process/were exempted and were in the media recently. At this point, we have no deals with any mining companies, partially because of your Department s interference, but I do not want to belabour this point. Your HELP will be appreciated. Masi Gary Jaeb From: Annette Hopkins Sent: Thursday, July 04, :06 PM To: Gary Jaeb Cc: Zabey Nevitt - MVLWB Subject: Re: Fw: MV2013J True North Safaris - New LUP application - Draft LUp conditions for review (I'm away...) Hi Gary, I have now completed my review of your questions below, and have prepared a response, which is attached for your records. I am also copying Mr. Nevitt for his information. Regards, Annette >>> "Gary Jaeb" <gary@truenorthsafaris.com> 6/17/2013 7:49 PM >>> -----Original Message----- From: Gary Jaeb Sent: Monday, June 17, :51 PM To: Annette.Hopkins@aandc-aadnc.gc.ca Subject: Re: MV2013J True North Safaris - New LUP application - Draft

3 LUp conditions for review (I'm away...) Annette I HAVE CORRECTED SOME GRAMMAR FROM THE EARLIER VERSION OF THIS and I am copying Zabey from MVLWB> Please consider the concerns attached and I can come by to meet at your convenience Background; Our group of companies, Sa Cho Developments, from Rae Edzo and True North Safaris Ltd, acquired Mackay Lake Lodge from the Rocher family in It was licensed and on INAC land leases dating back to We operated it as a lodge and catered primarily to caribou sport hunters and fishers, but also provided lodging services to mining exploration companies, film and trucking companies & Government agencies and offered workshops and meeting facilities. Mackay Lake Lodge is still licensed as a Tourist Establishment by ITI and has a 24 guest capacity. True North Safaris holds an "outfitters license" issued by ENR and it can out fit hunters anywhere in Wildlife Unit "R". It can establish mobile tent camps or use licensed lodges for accommodation and meal services. In 2009 the GNWT cancelled all caribou sport hunting and Mackay Lake Lodge has not operated full time since then. This winter, we were following up on some plans to diversify the lodge, offering services to the winter road truckers and to the mining exploration companies and we were sent a copy of a letter from AANDC, from 2009, that stated that if we wanted to work with mining companies that we needed to apply for a change to the "use" section of our land lease; as it presently says that we are "commercial fishing and hunting, outfitting lodge". We pointed out to the AANDC land use inspector, who had initiated the letter, that we were never consulted on the new requirements and that nothing really changes whether we provide lodging to miners or hunters. He persisted in the demand and we have gone along/we wrote the letter requesting the change to the lease "use". We were then told that we also have to apply for a MVLWB land use permit even though nothing has changed. We pointed out that if we do provide lodge services for a mining exploration company, that they would have to have theirs own land use permit to carry on their its own exploration activities.

4 Our use as a lodge and our environmental impact will not change, but the AANDC inspectors persisted in the demand and we have gone along/been attempting to go through the MVLWB permitting process. The AANDC inspectors have since issued land DRAFT use permit "conditions" prematurely, while our application and request has not yet gone to the MVLWB. By so doing, they have created a prejudice in the consultation process with conditions that contradict our requests. By so doing, they have reduced the MVLWB hearing process to a "rubber stamp". We believed that the process was worthwhile and that we would get a fair hearing. We also have issues with some of the land use inspection reports from the past and with the fact that some of the terms of our land leases were changed in 2009,with out proper consultation. The implications of the changes to our lease, were not properly considered nor did we have an opportunity for input. The lease now is interpreted that we have to truck or fly our garbage back to Yellowknife instead of using our established land fill, that we also have to truck any oil stained gravel back to Yellowknife rather than use it on our run way, and that we must use a forced air fired incinerator that requires excessive fossil fuel and an electricity supply rather than an incinerator that we have designed and built from a recycled fuel tank and is time tested and true. 1.What is the role of your inspection department in initiating land use applications and establishing land lease conditions? Who can we appeal to when we have issues that include veiled threats against our business. ( example; buildings not clad to weather...when tarps are torn by a wind storm...action by inspectors...force us to remove the buildings?) 2 Is the role of the MVLWB over ruled by the land use inspectors when we apply to them and make requests that they consider, for example, that we continue with our practice of burning and burying garbage that is not recyclable? 3. Is there an established proto call for initiating the requirement to change the "use " of our land leases? Who did it this time and why was it timed so as to block our negotiations with exploration companies this spring while the winter road was in operation? Why are some lodges exempt from

5 this? 4.We request a review of the changes to our leases in 2009? There was a lack of consultation and we need to get this back on track/ request going back to include some of the original use conditions including the use of our land fill site. Annette I need your help to resolve this in a positive way. Masi Gary Jaeb