ABANDONMENT AND RESTORATION PLAN SABINA WINTER ROAD linking Hackett River Camp, D’Arcy Lake, George Lake Camp and Goose Lake Camp SABINA GOLD & SILVER CORP Prepared Oct 2009 1st amendment Jan 2010 Sabina Winter Road – A&R Plan – ver1 Jan2010 1 Contents Introduction .................................................................................................................................................... 1 Sabina Social and Environmental Policy.................................................................................................... 1 Site Location and Description ........................................................................................................................ 2 Scope of Report .............................................................................................................................................. 3 Schedule of Abandonment and Reclamation.................................................................................................. 3 Infrastructure .............................................................................................................................................. 3 Progressive Reclamation ............................................................................................................................ 3 Final Abandonment and Restoration Plan .................................................................................................. 3 Abandonment and Restoration Cost Estimate ................................................................................................ 4 Sabina Winter Road – A&R Plan – ver1 Jan2010 2 Introduction Sabina Gold & Silver Corp. (Sabina) is actively exploring the Hackett River area under valid land use, mineral tenure and water permits. Under the terms and conditions of INAC and KIA Land Use permits and the NWB Water Licence, Sabina is obligated to rehabilitate the areas affected by activities. The Sabina Winter Road Abandonment and Restoration (A&R) plan has been developed to support permit and licence applications and renewals for operating a winter road linking the three existing exploration camps and exploration activities along the Hackett Greenstone Belt. Sabina will implement this A&R Plan and will continue to look for opportunities to minimize or eliminate negative impacts to the environment as a result of its activities, products and services at the Hackett River and Back River Projects. Sabina Social and Environmental Policy Sabina is committed to environmentally responsible and socially acceptable exploration and mining practices. We are dedicated to creating and maintaining a safe environment for both the land we occupy and the people that drive its success. The company's philosophy is to conduct its operations to protect not only the environment, but the health and safety of its employees and the public as well. Sabina also subscribes to the principles of sustainable development in mining. While exploration and mining cannot occur without an impact on the surrounding natural environment and communities, our responsibility is to limit negative environmental and social impacts and to enhance positive impacts. To achieve these goals, Sabina is committed to: • Seeking to be environmental leaders in the mining community by integrating responsible environmental management as an essential component of all business decisions; • Comply with all applicable laws, regulations and standards; uphold the spirit of the law and where laws do not adequately protect the environment, apply standards that minimize any adverse environmental impacts resulting from its operations; • Communicate openly with employees, the regulatory community and the public on environmental issues and address concerns pertaining to potential hazards and impacts; • Assess the potential affects of operations and integrate protective measures into the planning process to prevent or reduce impacts to the environment and on public health and safety; • Take appropriate corrective actions should unexpected environmental impacts occur. This will also include taking appropriate action to prevent reoccurrence of these impacts. Sabina Winter Road – A&R Plan – ver1 Jan2010 1 • Provide adequate resources, personnel and training so that all employees are aware of and able to support implementation of the environmental and social policy; • Conduct and support research and programs that improve understanding of the local environment, conserve resources, minimize waste, improve processes, and protect the environment. • Working with the appropriate local regulators and agencies, maximize benefits to the affected communities and residents; • Balance all decisions with best management practices, scientific principles and traditional knowledge. Site Location and Description The Hackett River and Back River Projects are located in the West Kitikmeot Region of Nunavut about 100 km south of Bathurst Inlet. The Projects lie within the Takijuq Lake Uplands ecoregion, which covers the south central portion of the West Kitikmeot region. This area is made up of broad, sloping uplands, plateaus, and lowlands, along with the rugged ridges of the Bathurst Hills (WKRLUP, 2005). Much of the area is largely composed of unvegetated rock outcrops and boulder fields. The landscape is characterized by higher elevations, which are moderated by open water during the late summer and early fall. The Projects lie within the Bathurst Inlet-Burnside Watershed and the area is dotted by thousands of lakes, collected by streams or by one of the major rivers in the area. The Projects lie within two geological provinces; the Slave Province and the Bear Province. The Slave Geological Province is underlain by granite and related gneisses, as well as by sedimentary and volcanic rocks (more than 2.5 billion years old). The Bear Geological Province contains mainly volcanic and sedimentary rocks ranging in age from about two billion years. The mean annual temperature is approximately -10.5ºC with a summer mean of 6ºC and a winter mean of -26.5ºC. The mean annual precipitation range is 200-300 mm (Environment Canada website). The region is characterized by long dark winters and short summers. The ground is covered in snow from October to June most years. Lakes are ice-covered from approximately October to June most years, with ice thickness reaching depths of over 2.0 metres. The area is one of continuous permafrost, meaning the ground is permanently frozen throughout the year. Sabina sees an opportunity to continue exploration activities in the area and to support proposed exploration programs will construct and operate a winter road to support exploration activities at Hackett River, Wishbone and Goose Lake Properties. Sabina Winter Road – A&R Plan – ver1 Jan2010 2 Scope of Report Sabina sees an opportunity to continue exploration activities in the area and to support proposed exploration programs will construct and operate a winter road to redistribute the current inventory of equipment and material between the three camps – Hackett River, George Lake and Goose Lake. Sections of the winter corridor will also support annual resupply efforts of the Hackett River camp and Wishbone exploration property. These camps/exploration projects operate under their own permits and associated Abandonment and Restoration Plans. This plan will only address abandonment and restoration of the winter road. Schedule of Abandonment and Reclamation Operation of the winter road corridor between the camps is anticipated to be over a three month period approximately mid February to end of May. The use will depend on operational requirements, environmental conditions and weather conditions. Once the movement of equipment, fuel, supplies and materials is completed the winter road will be abandoned. Infrastructure Infrastructure along the winter road will be limited to 1 to 2 tents with survival equipment and supplies. No fuel storage is planned along the route. Progressive Reclamation Over the course of the winter road operation, litter or contamination will be removed by camp personnel. Response to spills, cleanup and disposal is outlined in the Sabina Winter Road Spill Contingency Plan. The winter road will be built when environmental conditions are such that the ice is thick enough to support equipment and snow coverage is a minimum of 15cm to minimize damage to soil and vegetation. Snow will be moved as needed to ensure safe passage along the route and to maintain the minimum thickness of snow. Construction will be based on guidance provided by the “Northern Land Use Guidelines, Access: Roads and Trails (Draft)”, published by Indian and Northern Affairs Canada, October 2008. Final Abandonment and Restoration Plan When the winter road is ready to be shut down for the season, it will be inspected for any remaining litter, contamination and then cleaned up, stakes removed, and snow piled at the entrances to prevent further use of the route. Survival tents and equipment will be returned to camp and/or supplier. At break-up the winter road would melt. The route would then be inspected during the summer season with a helicopter to identify any remaining litter/debris and any possible damage or contamination along the route. Environmental monitoring, studies and reclamation activities would be built into on-going reclamation activities occurring as part of the exploration program and be developed dependant on the nature of the impact to the environment. Sabina Winter Road – A&R Plan – ver1 Jan2010 3 It is anticipated that any final closure of the winter road led by Sabina would be completed with approval of the appropriate regulatory parties. Abandonment and Restoration Cost Estimate The winter road will pose no impact to the land and waters so minimal restoration will be needed. Sabina Winter Road – A&R Plan – ver1 Jan2010 4