Notice of Commencement of an Environmental Assessment

Kitsault Mine Project

Prince Rupert (BC)

November 8, 2010 -- Under the Canadian Environmental Assessment Act (the Act), the Canadian Environmental Assessment Agency (the Agency) is responsible for exercising the powers and performing the duties and functions of the responsible authority for certain projects subject to a comprehensive study.

Based on information it has received, the Agency has determined that the project is described in the comprehensive study list and that an environmental assessment pursuant to the Canadian Environmental Assessment Act is required. As a result, a comprehensive study commenced on November 8, 2010.

Avanti Kitsault Mine Ltd. is proposing the construction and operation of an open-pit molybdenum mine, located approximately 140 kilometres north of Prince Rupert, British Columbia, and south of the head of Alice Arm, British Columbia. The proposed ore production rate is 40,000 tonnes per day over approximately a 15-year operation period. The project infrastructure will include Kitsault pit, processing plant, water management facilities, reagent handling and storage, air supply, power supply and distribution, staff accommodations, explosives manufacturing facility, and solid waste and wastewater management facility. The project will utilize existing access roads and power lines, as well as an existing and permitted barge docking facility to transport materials and equipment.

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 and Natural Resources Canada may take action in relation to paragraph 7(1)(a) of the Explosives Act. Transport Canada is participating in this environmental assessment as they might be required to make a decision in respect of the project.

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

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:
Kitsault Mine Project
Canadian Environmental Assessment Agency
Sherwin Shih, Project Manager
410 - 701 West Georgia Street
Vancouver  BC  V7Y 1C6
Telephone : 604-666-2431
Fax : 604-666-6990
Email : kitsault@ceaa-acee.gc.ca

and refer to Registry reference number 10-03-57958