IIBA Newsletter (October 2020 to September 2021)

IIBA Newsletter

Investing in People. Building for the Future.

A year in review October 2020 to September 2021

Mary River Cultural Programs See how site employees are participating in cultural events that are COVID-19 friendly.

[See page 6]

Marine Environmental Initiatives Learn about Baffinland’s marine environmental programs including our vessel monitoring and communication programs.

[See page 8]

Training and Education Statistics Find out more about the programs available and the participation statistics for Q4 2020 and Q4 2021. [See page 10]

CONTENTS

1

5

8

2

6

10

4

7

13

Letter from the CEO

Baffinland Statistics

Employment

Contracting

Mary River & Milne Inlet News

Community Tours & Sponsorship

Marine & Environmental Programming

Training & Education

Meet the Baffinland Team

This newsletter addresses only Baffinland’s commitments under the IIBA and does not address Qikiqtani Inuit Association’s (QIA) compliance with its obligations under the IIBA.

LETTER FROM THE CHIEF EXECUTIVE OFFICER

BRIAN PENNEY COVID-19 has continued to impact the way we work and operate.

Although we are not living as we did pre-COVID-19, significant progress has been made in our fight against this pandemic. Earlier this year, Baffinland reached an agreement to offer first, second, and booster doses of the Moderna vaccine to workers at the Mary River Project.

AT A GLANCE This report covers from October 2020 to September 2021, except where otherwise indicated.

4M

(Q1-Q3 2021)

Actual tonnes transported to stockpile

$244M

(44%)

Contract Dollar Spend to Inuit Firms

$14.6M

(BAFFINLAND PAYROLL)

$4M

(CONTRACTOR PAYROLL)

At the end of July 2021, Baffinland was finally able to welcome Nunavummiut workers back to site. It was a long time for friends and colleagues to be separated and everyone was pleased to once again come together on site. Unfortunately, due to the emergence of the highly transmissible Omicron variant, we made the difficult decision in December to once again send our Nunavut based workers home to further ensure their health and safety and eliminate risk of spread to local communities. It is our sincere hope that this will be a much shorter time away and that we will be able to welcome our Nunavut based workers back soon. Rigorous health and safety measures remain in place for all workers currently on site, including frequent PCR testing.

The Nunavut Impact Review Board (NIRB) concluded its final public hearing for Baffinland’s Phase 2 Development Project on November 6, 2021. The week-long hearing gave community members the opportunity to ask questions and share their thoughts and concerns about the Project. Baffinland had the opportunity to clarify misunderstandings and highlight the many community benefits that the Project will bring.

The NIRB is expected to issue its recommendation on Phase 2 to Canada’s Minister of Northern Affairs by May 13, 2022. The Minister will then have 90 to 180 days to issue a decision on whether to approve Phase 2. Baffinland thanks everyone who contributed to the process so far and looks forward to the NIRB’s recommendation.

Baffinland believes it is possible to create economic prosperity while protecting the environment and building stronger communities. Phase 2 is the mechanism to create a sustainable future for our business and for communities.

Without Phase 2, our future is unclear. I regret the level of uncertainty that this is causing for everyone who depends on the Mary River Project. However, we believe deeply in the potential of the Project to transform lives and livelihoods in Nunavut in a way that respects the Inuit ways of life. We believe we made a strong case to the NIRB, and we hope this translates into a positive recommendation and, ultimately, approval for Phase 2 by the Minister of Northern Affairs.

We will keep you updated and we urge you to continue to make your voices heard, thoughtfully and respectfully, in support of Phase 2.

Total Inuit Payroll At a Glance 1

BAFFINLAND STATISTICS

23,518

Inuit Training Hours

$244M

Inuit Firm Spend by Dollars Paid

OCTOBER 2020 TO SEPTEMBER 2021

125

Inuit Workforce Average (Baffinland & Contractors)

$10M

Baffinland Payroll to Inuit and Non-Inuit Females

COVID-19 STANDBY WAGES *Baffinland maintained all Nunavummiut employees on standby during COVID-19, however contractors may have adopted differing policies on their employees during this time, impacting overall Inuit workforce.

$12.8M

$9.8M

Nunavummiut Inuit Employees

Nunavummiut Inuit Contractors

(March 2020 – July 2021) Paid to 142 employees.

(March 2020 – July 2021) Paid to 85 Contractor Employees.

2 Baffinland Statistics

INUIT EMPLOYEE PAYROLL

Baffinland

$14.6M

POND INLET $1.97M $564K

Contractor

$4M

CLYDE RIVER $1.7M $600K

ARCTIC BAY $2.3M $640K

SANIRAJAK $1.48M $735K

IGLOOLIK $902K $281K

OTHER $570K

Non Baffin Living Inuit

IQALUIT $2.6M $1.6M

Baffinland Statistics 3

EMPLOYMENT

478,037 HOURS

Baffinland Inuit employees and contractor Inuit employees have worked a combined total of 478,037 hours at the Mary River Project.

Return to work Over the summer, Baffinland received approval from the Government of Nunavut, including the Chief Public Health Officer, Dr. Michael Patterson, to return Nunavummiut employees to work at the Mary River Project Mine. Our return to work plan included a number of measures to protect the health of our workers and their home communities, which included double masking, no group gatherings, physical distancing, and more.

We were thrilled to finally welcome our friends and colleagues back to work after their extended absence due to COVID-19. Our return to work program included reintegrating employees into our operations through a series of orientation and training sessions to ensure everyone is comfortable with their roles and new site processes and procedures due to COVID-19.

4 Employment

Inuit Hours Worked

Baffinland received approval from the Government of Nunavut, including the Chief Public Health Officer, Dr. Michael Patterson, to return Nunavummiut employees to work at the Mary River Project Mine.

From October 2020 to September 2021, Baffinland Inuit employees and contractor Inuit employees have worked a combined total of 478,037 hours at the Mary River Project. This total number does not include Inuit employees who have been on standby pay since March of 2020 due to the COVID-19 pandemic.

When the pandemic was declared in Canada, Baffinland was the first company in Nunavut to return Nunavummiut employees to their home communities with pay and all medical benefits.

At the end of July, 2021, we were pleased to welcome our Nunavummiut workers back to site with strict health and safety measures in place.

CONTRACTING Preferred Inuit Firm Status: Any Inuit Firm with 100% Inuit ownership can now apply to Baffinland to become designated as a Preferred Inuit Firm (“PIF”) and gain early access to certain contracting opportunities at the Mary River Project.

An Inuit Firm must satisfy the following criteria to be designated as a PIF: a) Registered with Nunavut Tunngavik Incorporated (NTI) b) Located and operating within the Qikiqtani Region of Nunavut

Those interested in developing new contracting opportunities with Baffinland are encouraged to contact the Kakivak Association (http://www.kakivak.ca/en/contact) or email procurement@baffinland.com.

A detailed report of Baffinland’s contracting activities from October 2020 to September 2021 is available from the Kakivak Association, the QIA, or your local BCLO.

c) 100% owned and operated

by Inuit (not a joint venture with a larger organization) d) Community presence (beyond a Post Office Box) and ability to demonstrate such presence.

MILNE RAIL EXPANSION DEVELOPMENT PROPOSAL

The Nunavut Impact Review Board’s (NIRB) Public Hearing for Baffinland’s Rail Expansion Development Proposal concluded on November 6, 2021, in Iqaluit.

The six-day hearing consisted of a oneday technical session followed by five days of Community Roundtable Sessions.

Over the week, community members had the opportunity to ask questions and share their thoughts and concerns about the Project. This gave Baffinland the opportunity to respond to questions, clarify misunderstandings, explain the enhanced environmental monitoring that will be implemented as part of Phase 2 if approved, and highlight the many community benefits that the Project will bring.

The NIRB is expected to issue its recommendation on Phase 2 to Canada’s Minister of Northern Affairs in early 2022.

The Minister of Northern Affairs will then have 90 to 180 days to issue a decision on whether to approve Phase 2.

Contracting 5

MARY RIVER & MILNE INLET NEWS JAN – SEP 2021 PRODUCTION TOTAL (TONNES) Cultural Site Events

Although COVID-19 restrictions have limited Baffinland’s ability to schedule cultural events and programming on site, our site based team of Cultural Advisors have worked hard to continue to run as many programs as possible while abiding by the health and safety restrictions in place. Bannock cooking classes, Inuktitut language lessons, Qulliq lighting, and jewelry making were some of the events that took place at site at the end of 2020 and at the beginning of 2021. Other activities also included sewing workshops where participants made sealskin mitts (pualuuk), spring parkas, and material purses.

4,210,006 Mining

4,023,359 Hauling

4,319,118 Crushing

6 Mary River & Milne Inlet News

National Day for Truth and Reconciliation On September 30, Baffinland marked National Day for Truth and Reconciliation by providing all staff with #EveryChildMatters t-shirts from the #OrangeShirtDay society. These t-shirts symbolize the healing journey of the survivors and their families, as well as our commitment as a company to the ongoing process of reconciliation.

Providing over 2,000 shirts to our employees and contractors emphasized the importance of the day and the need for everyone to reflect on the actions of the past and to honour those who have been impacted by these actions.

For anyone that needs support, the Government of Canada has a National Indian Residential School Crisis Hotline at 1-866-925-4419.

Baffinland also partners with the Ilisaqsivik Society who offers the Community Counsellor Program, which provides counselling by Inuit, for Inuit. Contact the Ilisaqsivik Society at 1-867-924-6565.

COMMUNITY TOURS AND SPONSORSHIP Over the last few months the COVID-19 travel restrictions were lifted in some parts of Nunavut, which allowed members of the Baffinland team to visit and meet with a number of organizations and community members in Clyde River, Arctic Bay, and Pond Inlet. These visits included a number of donations and funding commitments to community programs that we are proud to support, which include: • Arctic Bay Arena: A donation of $20,000 was made by Baffinland and was used to purchase a Zamboni for the community arena.

• Pond Inlet Women’s Hockey Team: Baffinland donated $26,328 to the Pond Inlet Women’s Hockey Team so the team could purchase new jerseys. At Baffinland, we recognize the importance of communitybased initiatives that support healthy living.

$40,000 Baffinland donated $40K to the Hamlet of Arctic Bay Health Committee in support of Arctic Bay’s School Lunch Program.

• Arctic Bay School Lunch Program: Baffinland has donated $40,000 to the Hamlet of Arctic Bay Health Committee in support of Arctic Bay’s School Lunch Program.

• Ilisaqsivik Society: A $48,300 donation was made from Baffinland to the Ilisaqsivik Society to support Ittaq’s Angunasuqtiit program, which is a full-time hunting and apprenticeship program that aims to increase food security in the community and pass on Inuit knowledge and skills.

Left: Arctic Bay Arena Right: Pond Inlet Women’s Hockey Team

Community Tours and Sponsorship 7

MARINE & ENVIRONMENTAL PROGRAMMING This past Spring, Baffinland avoided icebreaking activities at the start of the 2021 shipping season in order to preserve the integrity of the Eclipse Sound summer narwhal stock. This decision was made based on direct response to Inuit input and the recognition of an important community-based project occurring, which overlaps with the planned start of the Baffinland shipping season.

The shipping season concluded on October 31, 2021 and resulted in a 73 ore carriers being loaded at Milne Port in 2021.

A 74th ore carrier that entered the Regional Study Area (RSA) earlier in the month was sent out prior to being loaded in order to ensure that shipping activities had ended by October 31.

MARINE ENVIRONMENT MONITORING PROGRAMS: Baffinland monitors the potential effects of Project-related activities such as shipping on the marine environment by running various monitoring programs, with most being implemented during the shipping season. In 2021, marine environment monitoring programs addressed the following: • Measured the potential effects shipping may be having on the marine environment.

• Assessed the accuracy of predicted effects identified through environmental regulatory processes.

• Determined if adaptive mitigation measures need to be developed.

Marine Mammal Aerial Surveys

Passive Acoustic Monitoring

• Monitored ringed seal density and distribution during spring, as well as narwhal abundance and distribution of other marine mammal species in Project area throughout the summer.

• Monitored underwater noise at three (3) locations in early August at Bruce Head, Ragged Island anchorage, and Pond Inlet (Small Craft Harbour Construction) until September. Redeployed two (2) recorders at the floe edge to record underwater noise during 2021 fall shoulder season and 2022 floe edge conditions.

Bruce Head Shore-based Monitoring • Investigated narwhal response to shipping along the Northern Shipping Route by observing them from the top of Bruce Head, using a combination of visual and Unmanned Aerial Vehicles (UAV) surveys.

Marine Environmental Effects and Aquatic Invasive Species and Habitat Offset • Monitored water and sediment quality including metals, benthic infauna, epifauna and epiflora, fish abundance and health (focus on Arctic char) including contaminant analysis, and ballast water compliance testing.

•

8 Marine & Environmental Programming

Implemented year 2 of 10-year Freight Dock post-construction habitat to offset monitoring program to assess functionality.

Ship-based Observer • Not possible in 2020/early 2021 due to boarding restrictions related to COVID-19 pandemic. However, as an alternative, an incidental marine wildlife sighting program was implemented in collaboration with the Marine Mammal Observation Network (MMON) with a subset of participating vessels.

VESSEL MONITORING AND COMMUNICATION Baffinland provided the following options for community members to monitor vessel activities:

24 HOUR ACCESS

24-hour access to the latest vessel locations transiting to and from Milne Port.

• Shipping Monitors were available up to 24 hours a day over the entire shipping season to address questions, comments, and concerns. Shipping Monitors worked from the Baffinland Pond Inlet office on the second floor of the Mittimatalik Hunters and Trappers Organization building.

• The Baffinland website, www.baffinland.com, under Operation > Shipping & Monitoring offers answers to frequently asked questions and provides 24-hour access to the latest vessel locations transiting to and from Milne Port.

• The Baffinland office in Pond Inlet offered live tracking of vessels through the Automated Information System (AIS) monitoring station.

• Regular announcements about upcoming vessel activity were made using a variety of methods including the local Pond Inlet radio, marine VHF radio, and Facebook.

• Information about past and future shipping activities was updated regularly on Baffinland’s Shipping Facebook Page and the Pond Inlet News Facebook group.

• Shipping monitors were available to discuss Baffinland’s shipping activities during the shipping season via email (shipping@baffinland.com) or phone (867-899-1807).

Above: Bruce Head Shore‑based Monitoring.

Right: Shipping Monitors, Pond Inlet office.

Marine & Environmental Programming 9

TRAINING & EDUCATION

Adult Basic Education Baffinland has partnered with Nunavut Arctic College to raise awareness and facilitate participation in the Adult Basic Education (ABE) and Pathway to Adult Secondary School Diploma (PASS) programs in the communities. Adult Basic Education will be uniquely designed to meet the needs of each participant and give participants the opportunity to progress to the PASS program.

PASS is designed to help participants achieve their high school diploma.

Baffinland has worked with Nunavut Arctic College to ensure all Baffinland employees and community members have this opportunity.

Baffinland has been advertising both these opportunities since mid-December 2020 and is working towards building a list of interested participants. Throughout the fall of 2021, Baffinland’s Q-STEP team was able to assist three individuals in entering the PASS Program.

Tuttarvik 101 From October 2020 to March 2021, 348 hours of Tuttarvik 101 training was completed by 25 Inuit both virtually and in-person. Tuttarvik 101 was formerly a three-day training program covering Tuttarvik registration and use, resume writing, and financial literacy, however the program has now been rolled into the community-based Work Ready Program.

10 Training & Education

Nuna East Training Proposal (Contracting) In early 2020, the Nuna East Training Proposal was approved by Baffinland and QIA. Progress has been made towards implementing this training program as simulators were shipped to Pond Inlet by Nuna during the 2019 sealift to be used during the 18-day training.

These simulators include D8/9/10 dozer, CAT785/789/793 mining trucks, CAT336/320/345 excavators, and a motion platform that simulates a large dozer. Nuna will also mobilize a trailer to be used as a mobile classroom.

The training program will include a total of four participants at a time. Upon completion of the simulator program, individuals will be eligible for employment

by Nuna or Baffinland and will mobilize for in-seat equipment training at site.

Unfortunately, further implementation of the program has been paused due to the COVID-19 pandemic.

The Education and Training Fund application covers all upfront setup costs as well as the cost to train the first cohort of four.

Work Ready Program The Work Ready Program is offered in Pond Inlet, Arctic Bay, Clyde River, Igloolik, Sanirajak, and Iqaluit. Over a total of 40 hours, participants learn various employment skills, receive an introduction to mining, explore working in a fly-in and fly-out career, learn how to use the Tuttarvik jobs portal, and more.

Between October 2020 and September 2021, 16 sessions were held in the five impacted communities and Iqaluit and resulted in 74 successful graduates receiving 2,960 hours of training.

The on-site Work Ready Program, which has been postponed due to COVID-19 restrictions, allows participants to complete 60 hours of job shadowing at the Mary River mine site. Each participant rotates within five different jobs.

Once participants have completed the program, they are given the opportunity to provide feedback and share their personal areas of interest for further training or employment opportunities.

Baffinland looks forward to resuming this training once it is safe to do so.

To apply for any of these training program, contact the Baffinland Community Liaison (BCLO) in your community.

QIL Pre-Trades Training Course Baffinland is committed to increasing Inuit employment within the Mary River Project. Having Inuit enter skilled trades through the apprenticeship program is one way Baffinland can take positive steps towards reaching this goal. In March 2021, Baffinland had the opportunity to speak to a group of trainees participating in the QIL Pre-Trades Training Course in Iqaluit.

During our time with the group, we were able to share details about how the Mary River Project has the potential to offer Inuit a stable income and the opportunity to secure a meaningful career. We also discussed Baffinland’s Apprenticeship program, which offers hands-on training, various opportunities available within our Company, a glimpse of life at the Mary River Project, as well as the process of starting in Pre-Trades and working towards becoming a journeyperson.

For more information on these training opportunities, contact your local BCLO at www.baffinland.com/contact

$194,000 Since our scholarship program began in 2014, Baffinland has awarded $194,000 to 39 students in pursuit of continuing education.

Scholarship Program Baffinland is dedicated to investing in the future of young people through Baffinland’s Scholarships.

In 2020, Baffinland awarded five scholarships to North Baffin residents totaling $25,000.

Since our scholarship program began in 2014, Baffinland has awarded $194,000 to 39 students in pursuit of continuing education. We are in the process of reviewing our 2021 scholarships applications and look forward to announcing the recipients.

Inuit students are welcome to apply each year they further their education.

For more information on our scholarship program, visit www.Baffinland.com/scholarships.

Training & Education 11

TRAINING & EDUCATION

Driver Training Baffinland is pleased to offer driver training in partnership with QIA and Kakivak Association. Class 7 driver training gives participants the opportunity to acquire their learner’s license, which is a prerequisite to obtaining the full class 5 license that allows drivers to operate non-commercial passenger vehicles. The Class 7 program teaches students the basic rules of the road and all regulations that govern drivers in Nunavut. Participants need to pass the written exam and a vision test in order to obtain their class 7 license. In early 2021, Class 7 driver training had a total of 63 participants and they all successfully accumulated a total of 1,460 training hours.

Class 3 driver training prepares participants to operate small commercial trucks that have two or more axles and a gross weight higher than 4,500 kg, as well as trucks and trailers with a total gross weight that is less than 4,500 kg. In the first two quarters of 2021, Class 3 driver training had a total of 14 participants who accumulated a total of 684 hours of training.

Q-Step Update Over the last four quarters, the Q-STEP team has been working diligently to offer Pre-Trades Training to community members of Pond Inlet, Arctic Bay, Clyde River, Igloolik, and Sanirajak. At the end of 2020, Baffinland partnered with Nunavut Arctic College and also launched an advertising campaign promoting the programs in all five communities. These efforts resulted in over 35 enquiries about the program.

Q-STEP training is offered by Nunavut Arctic College and prepares participants to write the trades’ entrance exam and qualifies them to become apprentices.

In January through April 2021, 4,158 hours of in-community pre-trades training occurred with a total of 18 participants.

Inuit Success Team Baffinland’s Inuit Success Assurance Team is focused on working with the company’s Inuit employees on their career growth and goals. This team meets with Inuit employees regularly to discuss employment interests and

12 Training & Education

advancement opportunities. Members of this team work as a liaison between employee and management, help employees map out a plan to achieve growth in their careers, and facilitate conversations between employees and management to help achieve those goals.

Q-STEP training, which was started in 2018, is supported by the Baffinland and QIA Q-STEP teams. Since its inception, 42 Work Ready sessions have taken place in the communities of Arctic Bay, Clyde River, Sanirajak, Igloolik, and Pond Inlet. The program has been extended until March 2022 and the Q-STEP team continues to explore ways to ensure the longevity of this program.

MEET THE BAFFINLAND TEAM Baffinland’s Community Liaison Officers (BCLO) are located in each North Baffin Community and help support community engagement initiatives. Visit baffinland.com/contact to connect with your local BCLO. Get to know some of them a little better.

MEENA OYUKULUK – ARCTIC BAY Meena Oyukuluk has been a BCLO in Arctic Bay for the past seven years. Meena is dedicated to keeping community members informed about the latest Baffinland news along with job and training opportunities. When asked what she likes most about her job as a BCLO Meena said, “When I help someone get employment at site. They are normally the proudest people when they hear the good news.”

ERNEST MERKOSAK – POND INLET Ernest Merkosak is our newest BCLO and joined the team earlier this year.

Ernest, who shares BCLO responsibilities with his colleague Terry; represents Baffinland in Pond Inlet and communicates information about jobs, events, training, and more to community members. He will work on community engagements and act as a liaison between the Company and community members.

GEORGE IQALUKJUAK – CLYDE RIVER George Iqalukjuak has been working at Baffinland since 2014. As a BCLO in Clyde River, George works closely with job applicants, manages the community’s fly-in and fly out schedule to site, and more. One thing George likes about his job is all the interesting things he learns while at work.

Meet the Baffinland Team 13

QUESTIONS? HERE IS HOW YOU CAN REACH US Corporate Head Office

Northern Head Office and Baffinland Community Liaison Officers

2275 Upper Middle Road East Suite 300 Oakville, Ontario, Canada L6H 0C3 Tel: 1-416-364-8820

622 Queen Elizabeth Way Iqaluit House, Suite 102 P.O. Box 849 Iqaluit, NU X0A 0H0

Arctic Bay Meena Oyukuluk meena.oyukuluk@baffinland.com 1-867-439-8847

Peter Akman Head of Stakeholder Relations Communications@baffinland.com 289-834-0744

Iqaluit Joseph Tigullaraq Head of Northern Affairs Joseph.tigullaraq@baffinland.com +1 867 975 2502 +1 867 222 6622

Clyde River George Iqalukjuak george.iqalukjuak@baffinland.com 1-867-924-6444

Employment and Training recruitment@baffinland.com Operations and Proposed Expansion communityquestions@baffinland.com Procurement Opportunities procurement@baffinland.com

Pond Inlet Terry Killiktee Terry.Killiktee@baffinland.com 1-867-899-1844 Ernest Merkosak Ernest.Merkosak@baffinland.com 1-867-222-0394

Igloolik Lena Angutiqjuaq lena.angutiqjuaq@baffinland.com 1-867-934-8464 Sanirajak Deborah Qanatsiaq deborah.qanatsiaq@baffinland.com 1-867-928-8497