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IN A GROUNDBREAKING COLLABORATION between the mineralindustry and NGOs, the PDAC announced in September that theassociation has signed a Memor andum of Understanding (MOU) toform a working group to improve transparency in the extractiveindustry in Canada and overseas.

The Resource Revenue Transparency Working Group includes thePDAC, the Mining Association of Canada (MAC), and two transparency-focused NGOs, Publish What You Pay Canada (PWYP-Canada) and theRevenue Watch Institute (RWI).

The goal of the working group is to develop a framework for themandatory disclosure of payments to governments by Canadian oiland mining companies operating domestically and abroad by June2013. Once complete, the working group will make policy recom men -dations to federal government policymakers and/or provincialsecurity regulators for the Canadian adoption of mandatory disclosurerequirements based on the framework.

The establishment of the working group comes at a time of increasedinterest by communities and investors in extractive companies’ paymentsto governments. “This information will help assure commun ities that theyare receiving appropriate benefits from both mining operations and

What is the objective of the Working Group?The Working Group was organized according to the shared goal ofPDAC, MAC, PWYP Canada and RWI to develop a framework for themandatory disclosure of extractive company payments to governmentswhere Canadian companies operate. The goal of the framework is toaid investor analysis and provide citizens in resource-rich countrieswith a tool to help achieve accountable, responsible and soundmanagement of natural resources. Resource revenues are often acritical source of income for developing countries that when managedproperly and with adequate oversight can be a powerful engine forsustainable development.

What motivated this work? There is a demand from communities in resource-rich countries,investors and other users of data for clear information on the revenues

derived from extractive industry development. This information canhelp citizens monitor the money their governments receive and betterassess whether they are receiving the agreed-upon benefits from theirgovernments through extractive industry development. It is a valuabletool for encouraging the sound management of resources by govern -ments and reducing levels of corruption and bribery. In addition, ithighlights the investments made by companies, builds trust inproducing regions, and creates open, stable operating environmentsfor extractive industry business. Finally, detailed information onextractive industry payments helps investors analyze the financial andpolitical risks that accompany development activities.

These benefits have already been recognized by the ExtractiveIndustries Transparency Initiative (EITI), a voluntary transparencystandard now adopted by more than 35 resource-rich countries, as wellas by governments in key capital markets for extractive industrybusiness that are increasingly moving to implement mandatoryreporting requirements for companies in their ‘home’ countries. In the

A background Q & A about the purpose of the new Resource Revenue Transparency Working Group

governments, as well as reduce instances of corruption and bribery,”says Ross Gallinger, PDAC’s Executive Director. “More transparentpayment information also puts investors in a better position to analyzethe financial and political risks associated with development.”

PDAC joins forces with NGOs to improve transparency

Autumn 2012

The newsletter of the Prospectors and Developers Association of CanadaCe bulletin est également disponible en version française. Voir www.pdac.ca pour une copie.

Story continued on page 2

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PDAC In Brief is a newsletter published quarterlyby the Prospectors and Developers Association ofCanada. The newsletter is design ed to inform theassociation’s members of the activities of the PDACand also of current issues and events of interest tothe exploration and develop ment industry.

Prospectors and Developers Association of Canada135 King Street East Toronto, Ontario, Canada M5C 1G6

Telephone: 416 362 1969Fax: 416 362 0101 Email: info@pdac.ca

www.pdac.ca

United States, for example, new securities rules for publicly-listed oil,gas and mining companies recently enacted under the 2010 Dodd-Frank Act require covered companies to report their payments togovernments on a country-by-country and project-by-project basis.The European Union is expected to vote on legislation to implement asimilar standard this year.

Why is a Canadian effort necessary? Corporate social responsibility (CSR) and transparency principles area recognized part of good business practice, and are just as importantinternationally as domestically. The majority of the world’s miningcompanies are registered in Canada, and several large Canadian oilcompanies have a significant overseas presence. More than 1,000Canadian exploration companies are active in 100 countries, most ofwhich are not publicly listed outside of Canada. And Canadian stockexchanges, the TSX and TSX Venture exchanges in particular, host alarge share of total global extractive sector market capitalization.Canada is a critical market and hub for oil, gas and mining industrybusiness, and the international reach of Canadian companies issignificant. As such, Canada should be looking to lead the inter -national community in promoting best practices for its companies, athome and abroad.

Additionally, some Canadian majors are already covered by US andother listing requirements, while many participate in EITI reportingover seas. A Canadian disclosure mechanism will help ensure Canadiancompanies are operating to the same high standard by requiringconsistent reporting from all public companies.

But aren’t Canadian disclosure standards robust already? Historically, Canada has held its public companies to a high standardof disclosure and many Canadian companies have adopted aproactive approach to CSR reporting. However, current regulations arenot evenly applied across exchanges or companies, and manyreporting requirements fall short of what is now required ofcompanies in other markets. For instance, Canadian securitiesregulation often allows for forecasting of costs in lieu of actual annualreporting of specific company payments, while it is paymentinformation that is most in demand from citizens and communities inproducing countries. Moreover, the format and accessibility ofinformation currently reported by Canadian companies can hinder itsutility for users.

What will the Working Group deliver, and when? The Working Group will seek to create a framework for reporting thekey types of extractive industry payments useful to investors,communities and governments in a clear and useable format that willbuild on existing reporting standards to find alignments and minimizeadditional reporting burdens to companies. The Working Group willengage stakeholders from civil society, industry and government as

this framework is developed, and strive to agree on an initialframework for further consultation by the end of 2012. A final frame -work containing recommendations for policymakers is to be deliveredand made public by June 2013.

How will new reporting requirements impact Canadianextractive companies, particularly smaller explorationcompanies? For many companies, mandatory reporting requirements will notsubstantially impact reporting. These companies are those that areeither dual-listed on a US-based exchange, where mandatory disclosurerequirements come into effect in 2013/2014, or are already voluntarilydisclosing this information. For some companies, new reporting require -ments will require changes to accounting data management systems.Estimates in other jurisdictions suggest that these costs, over time, willbe minimal. For very small exploration companies, new report ingrequirements should not be burdensome, as new reporting require -ments may not trigger significant additional disclosure.

About the Working Group Members The Prospectors and Developers Association ofCanada (PDAC) is a national associationrepresent ing over 10,000 individual andcorporate members from the mineral

exploration and development industry. The PDAC encourages thehighest standards of technical, environmental, safety and socialpractices in Canada and internationally. www.pdac.ca

The Mining Association of Canada is the nationalorganization for the Canadian mining industry. Itsmembers account for most of Canada’s productionof base and precious metals, uranium, diamonds,

metallurgical coal, mined oil sands and industrial minerals and areactively engaged in mineral exploration, mining, smelting, refining andsemi-fabrication. www.mining.ca

The Revenue Watch Institute is an internationalnon-profit policy institute that promotes theeffective, transparent and accountable manage -ment of oil, gas and mineral resources for the

public good: www.revenuewatch.org

PWYP-Canada is the Canadian coalition ofPublish What You Pay, a global network of over650 civil society organizations united in their callfor oil, gas and mining revenues to form the

basis for development and improve the lives of citizens in resource-rich countries: www.pwyp.ca www.publishwhatyoupay.org U

Transparency initiative Continued from page 1

Burkholder worked as anengineering consultant fornatural resourcesindustries; then spent sometime at Barrick Gold to learnmore about the financialside of things. The decisionto go with a miningspecialty MBA is a means toset oneself apart in theindustry. He believes it alsoputs him on the path toexcelling into an industrythat is focused on beingsocially and environ -mentally responsible.

“The interesting thingabout mining is there areso many opportunities inOntario, Chile, in the Andesin Peru. There is massiveeconomic development

and employment avail able,” he says.Laurentian University has recently estab -

lished a School of Mines, with plans to addan MBA component. The program is meantto build on the success of the university’sEngineering and Earth Sciences programs.

“This area [of Canada] may have thelargest concentration of mines, and miningsupply and services. But mining is not justabout Northeastern Ontario. It extends tothe rest of Canada and internationally,”says Dominic Giroux, president and vicechancellor of Laurentian.

Mr. Constable has become a keensupporter of what a specialty MBA educa tioncan bring to an industry that has long exper -ienced the hardships of having managerscome from either a purely financial back -ground or a purely technical one—but rarelyone that integrates both skill sets.

"None of them have a good integratedunderstanding of the other side. You needpeople with the full integration of skill sets,from capital market and business develop -ment to the technical, cultural, andenvironmental aspects of the business.” U

Written by Denise Deveau, Sept. 25, 2012.Reprinted with the express permission of:”National Post”, a division of PostmediaNetwork Inc.

3

Mining drives new MBA approachWHEN A SECTOR hasachieved global leadershipstatus, the demand forskills can stretch beyondthe output of mainstreameducation channels.

This is very much thecase in the mining sector,where the appetite forknowledge about how theindustry and system worksis driving a new approachto MBA studies.

According to JeanVavrek, executive directorfor CIM (Canadian Instituteof Mining, Metallurgy andPetroleum) in Montreal,skill sets are changingmore and more in the lineof “softer issues” related tosocial acceptance andlicense.

“The industry is dealing with much morecomplex environmental issues, moreregulations, deeper ore bodies, remoteexploration ... the dynamics and themanagement challenges are only gettingbigger,” he says. “So is the potential forcareer development.”

Canada needs to accelerate the develop -ment of future leadership, Mr. Vavrek adds.“The potential on the management side isbig, from project management and capitalexpenditures to exploration and develop -ment. What managers are facing today inthis sector dwarfs most other industries.”

Dave Constable, former vice-president ofFNX Mining Co. in Toronto predicts theshortage of skilled mining specialists toreach between 50,000 to 100,000 in thenext five years.

“There's a huge pipeline of projects thatmay be delayed. But they will take place,”he says.

“The limiting factor is not as much aboutcapital as it is about your ability to puttogether fully integrated teams that cantackle the environment, social andregulatory issues. This industry is not justabout tonnage and production any more.”

This September, York University'sSchulich School of Business did its part to

help the mining industry nurture the talentit needs with the development of a newMBA specialization in Global MiningManagement. Demand has been so highthere is already a lengthy waiting list,program director Richard Ross says.

Having been a former chairman and CEOof Inmet Mining, Mr. Ross’ commitment toprogram development is rooted in a deepunderstanding of sector needs.

“At a certain point in time when we werelooking for MBA students, we couldn't findany with a specific knowledge of the miningsector,” he says. “If we hired someone andtrained them, they would leave in less thantwo years. It was evident the industryneeded a program like this.”

Over the past 10 to 15 years, miningengineers and geologists achieved seniorexecutive roles by learning leadership skillson the job, Mr. Ross adds.

“At the same time, there was an evolvingneed for CEOs with financial backgrounds.It became clear that the role wasn't justabout building and running a mine. It wasmanaging all the issues around that mine,such as sustainability, governmentrelations, business modelling, strategicplanning, etc,” Mr. Ross says.

A student in the program, Benjamin

York University's MBA team from the inaugural Schulich Case Competition in Sustainability.

acceptable solutions to resolve disputes or issues. Disputes must beconnected with the voluntary standards in the Government ofCanada’s CSR Strategy.

Who can bring a request to the Office of the CSR Counsellor?• A Canadian mining, oil, or gas company (registered or head-

quartered in Canada).• A project-affected individual, group, or community outside of

Canada (assistance of a third party is possible, but optional).The Office also invites joint requests from companies and project-affected people.

How does the Review Process work?We aim to have a process that is timely and practical. Once we receivethe request, we confirm it is complete. If so, the other party is informedright away. If the request meets basic intake criteria, we proceed tomeet with each of the parties by phone or in person to let them knowhow the process works, what they can expect, and to begin to buildunderstanding of the issues.

We will normally conduct a situational assessment in the field. Thepurpose of this assessment is not to find fault, but rather to helpeveryone involved better understand the context, the issues andwhether this problem-solving approach is appropriate and will likelybe helpful in resolving the issues. Some other tools the Office of theCSR Counsellor may use are: information-sharing, convening,facilitation, process design and joint fact-finding.

There is wide scope in the Review Process for creativity anddiscussion. The Review Process is just one way for people to try andresolve their disputes. Participating does not prevent parties frompursuing other options.

What can this type of approach do?• Find workable and lasting solutions that allow parties to maintain

control and input in a process • Improve trust and working relationships • Generate a better understanding of the situation and get to the

root cause of conflicts or issues • Help people figure out how to implement a performance standard

in a way that best meets interestsTo learn more about the office, or to contact them directly, go to: Email: csr-counsellor@international.gc.caVisit: www.international.gc.ca/csr_counsellor-conseiller_rse U

4

A conversation with Canada’s CSR Counsellor SINCE ASSUMING HER ROLE as theindustry’s Corporate Social Respon si bility(CSR) Counsellor in March 2009, MarketaEvans has been working to promoteconstructive options for dispute resolu -tion to Canadian explora tion and extrac -tive companies and their stake holdersaround the world. Below is her perspec -tive on the functions of the CSRCounsellor’s role and how companies canutilize the Office to improve theiroperations both domestically and abroad.

What is the Office of the Extractive Sector CSR Counsellor?The Office of the Extractive Sector CSR Counsellor is one of the four pillarsof the Government of Canada’s CSR Strategy for the Canadian Inter -national Extractive Sector, called “Building the Canadian Advantage”.

The Office of the CSR Counsellor has two main roles: an advisoryrole and a dispute resolution function. The advisory role focuses onpublic information for the benefit of all stakeholders on issuesrelated to the implementation of the voluntary standards that formpart of the Strategy. The dispute resolution mechanism, called theReview Process, provides an opportunity for dialogue and jointproblem solving between a Canadian extractive company andproject-affected people.

What is the Government of Canada’s CSR Strategy for the Canadian International Extractive Sector?This Strategy, announced in March 2009, seeks to improve thecompetitive advantage and reputation of Canada’s extractive sectorcompanies operating overseas by enhancing their ability to managesocial and environmental risks.

The Strategy is based on four integrated and complementaryelements:

1. Support for host-country capacity-building initiatives related toresource governance;

2. Promotion of widely recognized international Corporate SocialResponsibility performance guidelines;

3. Support for the development of a Corporate Social ResponsibilityCentre for Excellence to develop and disseminate high-qualityCorporate Social Responsibility tools and training to stakeholders;and

4. Creation of an Extractive Sector Corporate Social ResponsibilityCounsellor to assist in the effective and impartial resolution ofissues pertaining to the activities of Canadian companies abroad.

Four voluntary standards are endorsed in the Strategy:• International Finance Corporation (IFC) Performance Standards on

Social and Environmental Sustainability• Voluntary Principles on Security and Human Rights • Global Reporting Initiative• OECD Guidelines for Multinational Enterprises

What is the Review Process of the Office of the CSR Counsellor?The Office of the CSR Counsellor provides a new option for constructiveresolution of disputes between Canadian companies and communitiesoutside of Canada. We play a convening and facilitation role.

Our problem-solving tool, called the Review Process, emphasizesdialogue and constructive problem-solving. It is about people withdifferent views and interests working together to find mutually

Marketa speaking at the "Global Exploration, Mining and Minerals(GEMM) 20/20 – Sustainability and Responsibility Challenges andOpportunities" at SFU's Morris J. Wosk Centre for Dialogue.

5

PDAC’s new Senior Program Director

THE PDAC IS PLEASED TO ANNOUNCE the hiring of Nadim Kara as theassociation’s new Senior Program Director. Nadim comes to the PDACwith 15 years of extensive public policy development experience inboth government and civil society, ranging from community engage -ment work to promoting sustainability in global supply chains.Throughout his career, Nadim has maintained an active interest in therelationship between private sector activity and social andenvironmental sustainability, particularly with respect to the role of theextractive sector.

Most recently, Nadim was a Senior Policy Analyst with the federalMinerals and Metals Sector (MMS) within Natural Resources Canada.In his role, Nadim worked on a range of initiatives aimed at enhancing

the competitiveness and responsibility of the industry, including anumber of projects managed in conjunction with the joint federal,provincial and territorial Intergovernmental Working Group on Mineralsand Metals (IGWG).

Nadim’s work with IGWG included the preparation of a 2009 Energyand Mines Ministers Conference report on how the sector could earn asocial license to operate. In addition, he assisted in the development ofthe 2010 Mining Sector Performance Report—the first pan-Canadianassessment of the performance of both government and industry inCanada’s minerals and metals sector in which PDAC participated on theexternal advisory committee that produced the 2010 PerformanceReport. Nadim was also the MMS lead on mineral-related projectslinked to Canada’s Northern Strategy, as well as Canada’s upcomingChairmanship of the Arctic Council.

While serving as the Director of Partnership Africa Canada’s (PAC)Diamond Program, Nadim worked with companies, governments, civilsociety groups and international organizations to achieve positivehuman security and development outcomes in the diamond supplychain. As the industry liaison for PAC, Nadim worked with the WorldDiamond Council and its members to advance a comprehensive reformagenda aimed at enhancing the performance of the Kimberley ProcessCertification Scheme for Conflict Diamonds. He also helped with thedevelopment of corporate social responsibility initiatives such as theResponsible Jewellery Council’s ‘chain-of-custody’ certification project.

Nadim holds an undergraduate degree from the University of BritishColumbia in International Relations and a master’s degree in PoliticalScience from York University, where his thesis focused on theemergence and evolution of corporate social responsibility initiativesin a number of industries. U

NOMINATIONS FOR PDAC BOARD OF DIRECTORS

The Prospectors & Developers Association of Canada (PDAC) invites nominations for members to join its Board of Directors

The PDAC Board of Directors is responsible for advancing the membership’s interests, particularly in the area of advocacy, and for stewardship of the association’s activities and affairs.

The Board of Directors approves the PDAC’s position and policy on all major issues affecting the mineral exploration and development industry.

Directors have an unparalleled opportunity to work with dedicated professionals from across the country who have a broad range of expertise in industry issues.

Each director is elected at the PDAC’s Annual General Meeting, to be held in March 2013, and serves for three years.

The deadline for submitting a nomination is November 15, 2012.

For more information, please contact PDAC’s Executive Assistant, Alissa Reed, at areed@pdac.ca or 416 362 1969 ext. 227

6

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Whether you’re a junior exploration company, consulting firm or industry giant, the PDAC 2013 Global Sponsorship and Marketing program can put your name in front of more than 30,000 international attendees, clients and shareholders.

If you are interested in achieving a higher level of visibility, competitive edge and first-rate logo exposure, you will want to take advantage ofPDAC’s Sponsorship and Marketing program. Select from the sponsorship opportunities posted on the PDAC Convention website underSponsorship/2013 Opportunities to increase your exposure and distinguish your company from its competitors at PDAC 2013.

To find out how to best reach your target audiences with a customized sponsorship package, please contact:Lynne Beckett, Program ManagerPDAC Global Sponsorship and Marketingsponsor@pdac.ca • 905 336 3529

Sponsorship – Building Your Brand at the Convention

Register for the Convention and buy tickets for short courses, luncheons andevening events online at www.pdac.ca (click on PDAC 2013 Convention) whenregistration opens in December.

Be sure to visit www.pdac.ca (click on PDAC 2013 Convention) for the latest convention news!

7

PDAC 2013 INTERNATIONAL CONVENTION PDAC 2013 INTERNATIONAL CONVENTION

Opening day of the Investors Exchange.

Enhance your PDAC 2013 experience andkeep up to date with professionaldevelopment by attending Short Courses.Full descriptions and details will beavailable on the PDAC 2013 Conventionwebsite in November 2012.

The following short courses and workshopswill be offered:• Health and safety in mineral exploration• Maximizing the value of geochemicaldata

• New frontiers for exploration in glaciatedterrain

• Applied structural geology: Minimizingrisk from exploration to mining

• Ni-Cu-PGE deposits in mafic/ultramaficrocks: Insights and new discoveries

• New mines in the Old World: Theuntapped mineral potential of Europe

• A practical guide to land management inCanada: Meet the regulators!

• High impact communications• Investment fundamentals:Understanding mineral exploration andresource development and therelationship to company stock prices

• From the core barrel to a resourceestimate: Best practices with specialemphasis on low grade deposits

• New concepts for ore shoot targeting• Mineral disclosure best practices• Geophysics for everyone• DMEC workshop series: Exploringundercover in a world-class copper beltof Chile

• Directors’ duties: An overview for midand junior public mining companyexecutives and directors

Short Courses and Workshops

Learn from the experiences of industryexperts and your peers on next and bestpractices. These sessions allow delegatesto listen to expert views and gain timelyinsights.

Sessions include:• Commodities and market outlook• Maximizing the value of your company • New mines in Southern Andes • Land access challenges and solutions• Keynote session: Risk and reward inmining exploration and development

• Building capacity for economicindependence

• Development issues pertaining to minesand mineral deposits: Capex and lowgrades

• Canada in 2013: A cross-country check-up of exploration and developmentsuccesses and potential problems

• Diamonds from the Arctic• Financing in a volatile market • Iron ore in Canada • Jackpot at 8 Ma: Select mineral depositsin the Middle Cauca Gold Belt, Colombia

• Large igneous provinces andmetallogeny

• Australian Au-Cu deposits: Current sceneand hidden future

• Geophysics• Emerging metallotects of northernCanada

• The silver session• Specialty metals and minerals• New discoveries and developments• Ontario’s Ring of Fire: Unlockingpotential and creating opportunity

Full session descriptions can be found onthe Convention website. If you have anyquestions or need further informationcontact: Andrea George, ageorge@pdac.ca

Technical Sessions

Mineral Outlook LuncheonOn Monday, March 4, PDAC welcomes Tom Butler, Global Head of Mining, Inter -national Finance Corporation (IFC), a memberof the World Bank Group. Butler will discussthe World Bank Group’s perspective on globaltrends in emerging markets and how thosetrends will impact the mining sector.

International Panel LuncheonJoin us on Tuesday, March 5 for a sit-down lunch and glass of wineas Strategies to revive the juniors is presented. This animated paneldiscussion will cover the value of financing, mergers, joint ventures,royalties and others in terms of how best to benefit from them, aswell as the inherent risks and obstacles. The make-up of the equitymarket and how new vehicles such as ETFs are affecting equitypricing will also be explored.

Moderator:Raymond Goldie, Senior Mining Analyst, Salman Partners Inc.

Guest Panellists:Eric Sprott, CEO, Chief Investment Officer, Sprott Asset Management LPNed Goodman, President and CEO, Dundee CorporationJohn Kaiser, Editor, Kaiser Research Online

Innovation LuncheonCanada’s global success in mining can betraced to the emergence of smart policies andinnovative private institutions tailored to theunique attributes of the mining industry. OnWednesday, March 5, luncheon guest speaker,the Honourable Perrin Beatty, President andCEO, Canadian Chamber of Commerce, willpresent How Canada has transformed its

resource endowment into a global competitive advantage. Thispresentation is sure to attract community and industry leaders,investors, PDAC members and convention delegates.

8

LuncheonsJoin us at one or all three of the luncheons during PDAC 2013. Tickets are $70 for each luncheon and may be purchased when registrationopens in December.

David Harquail, President & CEO, Franco-Nevada Corporation, presentingat the PDAC 2012 Mineral Outlook Luncheon. Examining rock samples at the Core Shack.

PDAC 2013 INTERNATIONAL CONVENTION PDAC 2013 INTERNATIONAL CONVENTION

Places to EatTo complement the existing food outlets and cafés,PDAC 2013 will see the addition of the 701 Bistro &Bar. The Bistro will feature many new hot and coldselections for breakfast and lunch. This social venueand business networking hub is sure to attracthundreds of hungry and thirsty attendees. Named for its location, the 701 Bistro & Bar is located onLevel 700, Room 701.

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Mobile Convention Guide (Mobi)With the return of Mobi for 2013(launched at PDAC 2012) delegates canplan meetings and build their scheduleright on their smartphone. Thisinnovative and user-friendly mobileconvention guide allows attendees tosearch and find exhibitors, floor plans,technical sessions, speakers and otherattendees in real time.

Mobi was a big hit at last year’s conven -tion—more than 10,000 visits to the sitecame from 45 different countries. Mobiruns smoothly on the iPhone, iPad,Blackberry, Palm, Windows Mobile, NokiaSymbian and Android Google phones.

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Inside the Mining Matters Workshop at PDAC 2012.

PDAC 2013 INTERNATIONAL CONVENTION PDAC 2013 INTERNATIONAL CONVENTION

PDAC 2013 Convention SponsorsDiamondTeck Resources Limited

PlatinumGoldcorp Inc.Barrick Gold CorporationIBK Capital Corp.

PatronErnst & YoungPwCTMX GroupVale Canada Limited

PremierOsisko Mining CorporationDeloitte & Touche LLPAnglo American Exploration (Canada) Ltd.Canaccord GenuityFranco-Nevada CorporationKPMGSilver Wheaton

Gold PlusKinross Gold CorporationAgnico-Eagle Mines LimitedCelerant Consulting, Inc.CIBC World Markets Inc.IAMGOLD CorporationKGHM International Ltd.National PostSNC-Lavalin Inc.Waterton Global Resource ManagementXstrata Plc

Gold1984 Enterprises Inc.AECOMAurizon Mines Ltd.DRA AmericasFreeport-McMoRan Copper and Gold Inc.GE CanadaGlobal Mining FinanceGowling Lafleur Henderson LLPGrant Thornton LLP

HudBay Minerals Inc.Inmet Mining CorporationNewmont Mining CorporationPan American Silver Corp.Primero Mining Corp.Royal Gold, Inc.Tourism TorontoVotorantim Metals Canada Inc.

BronzeHallmark InsuranceRaymond James Ltd.RBC Capital MarketsScotia CapitalStandard Chartered

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PDAC-SEG CanadaStudent MineralsColloquiumPDAC is proud to partner with Society of

Economic Geologists Canada and the Ottawa-Carleton Geoscience Centre to host the Annual

“Minerals Colloquium”.

This landmark event, now in its fourth year, will take place onMonday, March 4, at the Royal York Hotel. The Minerals Colloquiumwill include poster presentations highlighting current research onmineral deposits and related studies by students and faculty fromacross Canada.

Posters will be available for viewing in the Ballroom, Royal YorkHotel (Convention Level) from 12:00 noon to 8:00 pm. Moreinformation about this event will be posted at www.pdac.ca/students.

NEW

A packed house at last year’s Student-Industry Forum.

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Mining Matters expands into QuébecMINING MATTERS HAS MADE GREAT INROADS across the country bytailoring their earth science educational resources to meet the needsof numerous provincial and territorial curriculum, conducting dozensof Aboriginal camps, and participating in countless public outreachevents. Now, they are expanding into Quebec and striving to meet theneeds of teachers in the province.

Over the last 10 years, the Ministry of Education in Québec has beenreforming its educational system by moving toward a student-centredmodel of learning that allows educators to integrate a variety ofapproaches. The province’s new education model spreads earth scienceobjectives throughout the elementary program into the secondary schoolyears rather than compartmentalizing them into a single grade level. Thismeans that earth science is taught at every grade level in Québec!

In June 2010, Mining Matters was invited to attend the Science-Technology, Engineering and Math (STEM) Conference as an observerfor secondary school teachers from the nine Anglophone schoolboards and associations. There, they learned that little was availableto Québec teachers in the way of hands-on earth science student-centred learning resources—a gap Mining Matters could potentiallyfill. To do so, they planned three focus groups to assess the relevanceof our resources to the Québec curriculum.

In partnership with Minalliance, the first curriculum focus groupwas held in Montreal in June 2010 to determine the suitability ofMining Matters resources for the Québec Education Plan curriculum.Minalliance, created in 2010, brings together the Québec MineralExploration Association and the Québec Mining Association, as wellas companies involved in mineral exploration, operation and services,equipment suppliers and financial institutions. Under the direction ofClaudine Renaud, Minalliance’s former Executive Director, whoseman date was to distribute a clear, consistent and coordinated infor-ma tion to all Québecers about activities in the mineral industry andpromote the industry’s positive contribution to the social, economicand environ mental development of Québec, Mining Matters is nowsupporting teachers in their effort to educate their students aboutrocks, minerals and mining in Québec.

Considerable progress has been made since the first focus grouptowards the implementation of educational programs from MiningMatters for schools in Québec. Presently, the elementary resource kit“Deeper and Deeper” [Aller au fond des choses] has been translatedinto French and will be ready for distribution in 2013. Through direct

solicitations and Québec Mines [Des mines et des hommes] eventsrelated to science and education, the Mining Matters team iscurrently working to promote educational programs in English andFrench to Québec school boards and provide teacher workshopopportunities, especially in those areas close to mining operationssuch as Drummondville, Rouyn Noranda, and Val d’Or. As of the endOctober, using the configuration of a new virtual voicemail, allteachers from Québec are now able to communicate with the MiningMatters team by calling the phone number of Minalliance.

In looking forward, and in anticipation of the elementary schoolstudents moving on to high school, revisions and updates of thesecon dary earth science teacher resource, “Mining Matters II: TheEarth’s Crust” [Une mine de renseignements: L’écorce terrestre] willalso be incorporated for release in the fall of 2014.

Mining Matters is proud that their educational resources aremeeting the needs of teachers across Canada. But Québec presentsthem with a special challenge, and a costly one. Financial supportfrom the industry is crucial to allowing them to translate resources,facilitate workshops, train teachers, and the list goes on. If you oryour company would particularly like to see Mining Matters succeedin Québec, please contact the General Director, Heather Douglas, at416 863 6463 ext. 324, or hdouglas@pdac.ca U

Former Executive Director of Minalliance Claudine Renauld welcomesteachers, science consultants and education stakeholders to the MiningMatters II: The Earth's Crust resource focus group (June 2011).

CALLING ALL GRADUATE STUDENTS!

Mary-Claire Ward Geoscience Awardapplications now available

The PDAC is inviting post-graduate geology students enrolled in Canadian universities to apply forthe $5,000 Mary-Claire Ward Geoscience Award. The award is presented annually to a student whoundertakes a geosciences project with a significant geological mapping component.

Mary-Claire Ward was a PDAC Director and a leader in geosciences. She served as president of theGeological Asso ciation and was a passionate advocate for the preservation and expansion ofCanada’s geoscience knowledge base.

The deadline for applications is December 15, 2012. Details can be found at www.pdac.ca/studentsand http://www.gac.ca

“As a result of being awarded the Mary-Claire Ward Geoscience Award, I received cold calls from geologists in the exploration industry and wasapproached by academics at conferences. The Mary-Claire Ward Geoscience Award has brought attention to my research and the contacts I havemet as a result of this award have been especially valuable.” – Brett Hamilton, recipient of the 2011 Mary-Claire Ward Award

11

What to do in the event of a Claim

Through Partners Indemnity and Integro Insurance Brokers, PDAC offers members a comprehensive insuranceprogram designed to meet the specific needs of geological consultants and exploration/mining companies. Ineach issue of In Brief we bring you information designed to help navigate the world of insurance as it pertains toyour business.

Specialty insurance coverage is ideally a once-a-year purchase that is never called upon until its renewal 12 monthslater. Ideals aside, what happens in the event of a directors’ and officers’ claim or professional liability claim? Who should be contacted? How does the insurer become involved and what should an insured expect from theprocess? All of these are obvious questions but rarely answered clearly. Here is what all mining executives andpersonnel should know!

Early NotificationWhile each insurance company will have their own nuanced requirements with respect to claims reporting, most

insurers will expect their insureds, as a condition to accessing the benefits of their insurance policy, to provide them

with notice of the claim in writing as soon as possible. Since the definition of a “claim” carries different meanings

from insurance policy to insurance policy, the insured may also be required to notify their insurer if they become

aware of any fact or circumstance that could give rise to a claim. For example, a letter or telephone message from

a potential claimant or their lawyer that threatens to hold the professional, the mining company, or its directors or

officers accountable for their inappropriate actions. It is important to understand the underlying rationale: insurers

want to be proactive in the defence of their insureds and the failure to notify the insurer of claims or potential claims

in a timely fashion can compromise their ability to mount an appropriate defence on the insured’s behalf.

Engage your Insurance BrokerIn the event of a claim or potential claim, it is best to provide the insurer with as much specific information about

the matter as possible (e.g. particulars as to dates, events, persons and entities involved). As far as the ideal

process and procedure is concerned, if you have an insurance policy that may respond to a claim, it is always best

to first notify your insurance broker—even before legal counsel. Your insurance broker should be expected to not

only put your insurance carrier on notice of the claim properly, but also advocate on your behalf as to: (a) which

insurance policy should respond to the matter; (b) the reasonableness of your choice of legal counsel; and equally

important (c) the reasonableness of their hourly rates. The choice of legal counsel, particularly with regard to D&O

and professional liability claims, can often be a “hot button” for insurers. While some insurers will insist that an

insured use specific counsel, most specialty insurers are open-minded to working with an insured’s preferred

commercial litigator, provided they have the requisite expertise and they are amenable to charging a reasonable

hourly rate (including using junior lawyers where appropriate). Your insurance broker should help guide this

process and assist in making sure that the relationship between the insurer, the insured and their legal counsel is

a joint partnership responding to the claim as a united front and not a forced and uncomfortable union.

For further details on how your claims processes should best be managed please contact:

Patrick Bourk

Vice President, Management Risk Practice Leader

Integro Insurance Brokers

(416) 619 8097

patrick.bourk@integrogroup.com

Ce bulletin est également disponible en version française. Voir www.pdac.ca pour une copie.

Prospectors & Developers Association of Canada Publication Agreement #40042453135 King Street EastToronto, Ontario, Canada M5C 1G6

SINCE ITS SUCCESSFUL LAUNCH LAST YEAR, CanGeoRef

(www.cangeoref.org) has added nearly 3,000 missing references

from the British Columbia government/geological survey and

expects to complete the Newfoundland/Labrador references by

the end of this year.

The searchable database, established through a collaboration

between the Canadian Federation of Earth Sciences (CFES) and the

American Geosciences Institute (AGI), now contains about 210,000

references and continues to grow steadily as references are being

automatically updated in the database every week with newly

published titles in the form of books, chapters in books, theses,

refereed journal articles, map and reports.

The project is currently on schedule and it is expected to include

all missing references from all jurisdictions by late 2013, as

originally planned.

The producers are currently researching additional subscription

possibilities, such as a short period credit card-swipe option and

mobile platform accessibility.

GeoRef is the world’s largest geosciences reference database,

containing 3.2 million references. It is sold worldwide to all major

geosciences institutions, universities and large corporations.

CanGeoRef is a live (integral) subset of GeoRef, hence its quality

control is always assured. CanGeoRef is unbiased and complete,

unlike free web-based search engines. U

CanGeoRef adds 3,000 references to database

? Do we know how to find

you?

If you’re moving or changing your e-mail address,

please let us know. We don’t want you to miss a

single issue of In Brief or News and Activities!

Send your new information to info@pdac.ca.