MatachewanFirst Nation Limited PartnershipFinancial Information for the year ended March 31, 2018November 10, 2018

2© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Matachewan First Nation Limited Partnership -Structure

99%

Matachewan First Nation

MFNLP

2242185 Ontario Inc.

1%

100%

EdnisyanCamps Ltd.

51% 51%2284055

Ontario Inc.

2284055 Ontario Inc.(Bluewater)

Financial Information – year ended March 31, 2018

4© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Auditor’s ReportFinancial Statement Review

5© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Statement of Comprehensive IncomeFinancial Statement Review

Highlights

• Hauling – 100% subcontractor to MFNLP

• Subcontracting - trucking to other contractors

• Equipment rental from MFNLP $8,000/mth

• Dispatch services – Canor• 2017 - gain from sale of

loader to MFNLP

• Management fees = taxable income = approximate profit

6© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Statement of Cash FlowsFinancial Statement Review

Highlights

• Positive cash flow from operations used to payout to shareholders re management fees

• $450,000 loan from MMPLP @ 5% interest – used to acquire trailers

7© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Statement of Financial PositionFinancial Statement Review

Highlights

• Cash increase with profit• 2017 prepaid - deposit for 2

trailers• Property and equipment

increase with trailer purchases

• Decrease in accounts payable as trailer purchase owing in 2017

• Management fee• 147,135 – MFNLP• 141,365 – Don Seguin

• 2017 Management fee fully paid

Ednisyan Camps and Logistics Ltd.

Financial Information – year ended March 31, 2018

9© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Statement of Comprehensive IncomeFinancial Statement Review

Highlights

• Demobilization fees per agreement

• 2017 loss on disposal of trailer at less than accounting value

10© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Statement of Cash FlowsFinancial Statement Review

Highlights

• Cash used to repay shareholders

• Proceeds from trailer sale $50,000

11© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Statement of Financial PositionFinancial Statement Review

Highlights

• Cash used to pay shareholders

• Accounts receivable all HST

• Insufficient cash to pay management fees (due to management fees calculated on taxes owing)

Matachewan First Nation Limited PartnershipFinancial Information – year ended March 31, 2018

13© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Statement of OperationsFinancial Statement Review

Highlights

• Administration – includes mgmt. fees (Bluewater $147,000 and Ednisyan - nil)

• Administration – bad debt re w/o of Ednisyan mgmt. fees

• Janitorial – profit 2018 $262,000 vs 2017 $277,000

• Hauling revenue per agreement with Alamos

• Rental revenue from Bluewater

• Hauling costs – Fisher Wavy $6.5M and Bluewater $1.5M

14© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Statement of Cash FlowsFinancial Statement Review

Highlights

• Positive cash flow as management fees paid from Ednisyan

• Management fees unpaid

• MFNLP – acquires land $3.5M on behalf of MFN –MFN contributes cash

• Invest $720,000 share of plant

• Issue $450,000 loan to Bluewater

15© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Statement of Financial PositionFinancial Statement Review

Highlights

• Accounts receivable –Alamos Gold (March)

• Loan receivable - Bluewater

• P&E – Land and batch plant

• Increase in Equity from contribution for land

16© 2017 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Summary of Investment ContributionsFinancial Statement Review

Highlights

• Represents actual cash distributions to MFNLP

• Payment of accounting balances owing is dependent on cash flow

Thank you

Presentation by Wayne McDonald, CPA, CA

kpmg.ca

© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

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