Notice of Commencement of an Environmental Assessment

Kutcho Copper Zinc Silver Gold Mine Project, Dease Lake

Andrea Creek (BC)

January 11, 2008 (Updated November 30, 2011) -- Fisheries and Oceans Canada, Natural Resources Canada and Transport Canada are required to ensure that a screening is conducted pursuant to the Canadian Environmental Assessment Act commencing on December 24, 2007 in relation to the project: Kutcho Copper Zinc Silver Gold Mine Project, Dease Lake.

On October 11, 2011, following a redesign of the Project proposal by a new proponent, the federal authorities listed above determined that a screening-type environmental assessment was required instead of a comprehensive study as originally commenced. Specifically, the Project, as currently proposed, no longer meets the threshold for daily tonnes of ore production capacity that would require a comprehensive study under the Comprehensive Study List Regulations.

Kutcho Copper Corp. is proposing the construction and operation of an underground copper-zinc-silver-gold mine and processing mill located in the Cassiar Mountains of north western British Columbia, approximately 100 km east of Dease Lake and 600 km north of Smithers. The proposed mine is located within the Andrea Creek Watershed, tributary to Kutcho Creek. The proposed ore mining rate is 2500 tonnes per day over an anticipated 12 year operation period. Processed ore concentrate would be transported via truck to the Port of Stewart for export.

An environmental assessment is required in relation to the project because Fisheries and Oceans Canada may take action in relation to subsection 35(2) of the Fisheries Act; Natural Resources Canada may take action in relation to paragraph 7(1)(a) of the Explosives Act and Transport Canada may take action in relation to section 5 of the Navigable Waters Protection Act.

This project is also subject to the environmental assessment requirements of the Government of British Columbia.

The Canadian Environmental Assessment Agency will act as the Federal Environmental Assessment Coordinator for this environmental assessment.

As per the Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects, this environmental assessment has been identified as a major natural resource project. For additional information refer to the Major Projects Management Office's Tracker that monitors the progress of proposed major resource projects through the federal regulatory review system.

For further information on this environmental assessment, please contact:
Kutcho Copper Zinc Silver Gold Mine Project
Canadian Environmental Assessment Agency
Zoltan Fabian, Project Manager
410 - 701 West Georgia Street
Vancouver BC V7Y 1C6
Telephone: 604-666-2431
Fax: 604-666-6990
Email: kutchoproject@ceaa-acee.gc.ca

and refer to Registry reference number 07-01-36352