nalcorenergy

LOWER CHURCHILL PROJECT

Rec. No: LO1O-C022-200-150148-00001

January 5, 2011

P. 0. Box 121La Romaine, QuébecG0G 1MO

Attention: Chief Georges Bacon

Hydro Place. 500 Columbus Drive.P.O. Box 12800. St. John's. NI.Canada A1B 0C9t. 709.737.1833 or 1.888.576.5454f. 709.737.1985

Subject: Response to letter to Joint Review Panel dated December 20/10

Dear Chief Bacon:

I am writing in response to your letter to the Joint Review Panel (Panel) dated December 20, 2010 whereyou express concern over comments made in a letter submitted by Mr. Scott Nielson to the Labradorianon November 08, 2010.

Nalcor is disappointed that you have chosen to go to the Joint Review Panel with this request forinformation regarding a letter to a newspaper editor rather than contacting Nalcor directly forclarification. Regardless, we are pleased to provide you with the official report from Nalcor's contractoron this matter which was submitted to the Provincial Archaeological Office, as required by thecontractor's Environmental Protection Plan (EPP).

On another note, we are encouraged that your lawyer has recently indicated that you are now willing tomeet and we will look forward to resuming what we had previously considered to be positive dialogue.

Please don't hesitate to contact me directly if you have any further questions or concerns regardingNalcor's activities.

Sincerely,

Todd ingameManager,Environment & Aboriginal Affairs

CC. Ms. Maryse Pineau/Panel ManagerMr. Thomas Graham/Panel Co-ManagerMr. Daniel Martineau/Coordonateur de Ia Consultation des autochtones

Enclosure

nIcorenergy

LOWER O-IURCJIILL PROJECT

25 October, 2010

Provincial Archaeology OfficeDepartment of Tourism, Culture and Recreation2nd Floor, West BlockConfederation BuildingP.O. Box 8700St. John's, NL A1B 4J6

Attention: Martha DrakeProvincial Archaeologist

Hydro Place. 500 Columbus Drive.P.O. Box 12800. St. John's. NICanada A16 0C9

.709.737.1833 or 1.888.576.5454f. 709.737.1985

Rec. No: 10-10-4649

Subject: Muskrat Falls Geotechnical Investigation Program - Follow Up on WorkSite Visit by Innu Nation

Dear Ms. Drake:

Nalcor Energy is nearing the completion of a geotechnical investigation program tosupport engineering design of the proposed Muskrat Falls generating facility along theLower Churchill River. SNC-Lavalin was retained to conduct this work and the fieldinvestigation began this past summer. Prior to site mobilization, the study area wascharacterized for its archaeological potential, based on a desk-top review of previoushistoric resources surveys. In addition, an Environmental Protection Plan (EPP) wasdeveloped and implemented to ensure potential impacts on various environmentalcomponents were properly mitigated during the field work. This plan also includedmitigation measures to reduce/eliminate potential effects on archaeological and historicresources that may be present. Training was also provided to staff with respect tohistoric resources.

On October 15, 2010 a request was made for a visit of the worksite by Innu Nationenvironmental representatives to Nalcor Energy, this request was agreed to.

Ms. Martha DrakeProvincial Archaeology OfficeDepartment of Tourism, Recreation and Culture21 October 2010

2

Subsequent to this visit a report was made to Nalcor Energy by SNC-Lavalin regardingthe site visit and associated events. This report indicates that potential historicresources were uncovered and removed from the site by Innu Nation representatives.Normally, in accordance with the EPP, in the event of a potential discovery theprocedure would have been to flag the area, leave the item in-situ, stop all work in thevicinity of the site, and notify the PAO. As well, as per the EPP we would endeavour toprevent others from removing historic resources. In this case, we were not able to fullycomply with the EPP as we were not present when the items were found and removed.In terms of work stoppage and flagging the site, these actions were not necessary as allwork had been completed on the south side of the river at that time. A representativefrom Nalcor Energy did speak to Innu Nation regarding the site visit. Theirrepresentative indicated that a report would be filed with your office by lnnu Nation.

The purpose of this letter is to follow-up to ensure a report was made by lnnu Nation toPAO, and to provide the report made by SNC-Lavalin to Nalcor Energy regarding the sitevisit.

Please contact me with any follow up questions or comments you may have.

Regards,

Marion OrganEnvironmental EngineerNalcor EnergyTel: 737-1255Email: marionorgan@nalcorenergy.ca

.))SNC • LAVALIN

October25, 2010503334.1

Nalcor Energy - Lower Churchill ProjectHydro Place, 500 Columbus DriveP.O. Box 12800, St. John's, NLCanada Al B 0C9

Attention: Marion Organ

Dear Ms. Organ:

Reference: WTO 1300 - Muskrat Falls Site Investlgatsons

BAE •Newplan Group Lknlted1133 Topsail RoadMount Roan. Nt. A1N 5G2

Telephone 709.368.0118Telecopler 7O9368-5410

On October 15, 2010 at 10:50 AM, three individuals arrived at Muskrat Falls north laydown area.These individuals had contacted Nalcor's site manager to arrange a site visit and had indicated atthat time that they were with the lnnu Nation and that they were interested in walking the southside portage. The site manager subsequently contacted SNC-Lavalin's environmental monitorand requested that he accompany the group during the site visit. SNC-Lavalin's environmentalmonitor agreed to perform this duty.

The three individuals that arrived on site were Mr. Guy Playfair (Innu Nation Forestty Director),Mr. Anthony Jenkinson of Sheshatshiu, and Mr. Scott Neilsen of North West River. Mr. Jenkinsonwas introduced as an archaeology assistant and Mr. Neilsen as an archaeologist. Furtherinquiries have revealed that only Mr. Playfair is employed by Innu Nation, Mr Jenkinson and Mr.Neitsen have no affiliation with the organization.

The group departed the north side laydown for the west end of the south side portage viahelicopter at 11:00 AM accompanied by SNC-Lavalin's environmental monitor and SNC-Lavalin'sHSE lead.

During the course of the site visit, while SNCLavalin's representatives were in discussion with MrPlayfair, Mr Neilsen and Mr. Jenkinson strayed from the group and returned shortly afterwards toInform SNC-Lavalin's environmental monitor and HSE lead that they had discovered a suspectedstone artefact.

This piece of stone was found on the west end of the portage at UTM coordinates Easting648315, Northing 5901514, and was identified as being Ramah Bay chert. This hake of stone waswhitish in colour and about the size of a dime. The piece of stone was found when Mr. Jenkinsonreportedly brushed his axe across the surface of the moss; it was obviously on or very near thesurface. This discovery was not witnessed by either SNC-Lavalin's environmental monitor, SNC-Lavalin's HSE lead, or by Mr. Playfair of the innu Nation.

The second piece of stone was later reportedly found approximately 900 meters from the eastend of the portage at UTM coordinates Easting 649208, Northing 5901611, at the site of anabandoned geotechnical test pit (TP-12). This test pit site is on the proposed South RCC Damsite, and the item found was identified by Mr. Neilsen as being a piece of chert that likely

Member of the SNC+LAVALIN Group

Nalcor Energy

.)) Page 2October 25, 2010

originated in the Seal Lake area in Labrador. He further indicated that the piece might be adiscarded, incomplete spear head. As indicated, this piece of stone was reportedly found on anabandoned test pit site, on disturbed ground, sifting on the surface. This discovery was notwitnessed by either SNC-Lavalin's environmental monitor, SNC-Lavalin's HSE lead, Mr. Playfairof the Innu Nation, or by Mr. Jenkinson.

It must be pointed, out that at no time was the Nalcor site manager, SNC-Lavalin's environmentalmonitor or SNC-Lavalin's HSE lead informed that this site visit was arranged to conduct anarchaeological investigation.

The group returned to north side laydown at 12:15 PM.

Yours very truly,

SNC-LAVALIN INC.

Lead, 2010 Muskrat Falls Site Investigation

/cb

cc: Dave HealeyBrad. ChaulkTerry McCarthyDon Blake