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Waste Rock Location:

Waste rock to the East and to a minor extent west of the deposit. The majority of the waste is East in Mount Lacasse but mineralisation (the potential based on block model and chargeability which has nearly 100% correlation) is located at the end of the initial 21 year mine life. The east wall the north wall and the floor of the pit will expose good grade mineralization based on the block model.

5% vs 8%: 5% would be good choice due to the long term capital being sourced at this rate. (see Teck's long term bond rates)

EA: CUU estimate Q2 but wanted to be conservative

Metal pricing:

Metal pricing is always conjectural. Given the state of the industry CUU had many unanimous consent from all engineers consultants and economists (who are very familiar with the industry). These were good numbers for the base case.

IRR:

Look at the Capex marginal increase with big increase in milling rate. If you discount a string of numbers over a long enough period of time the rate has to decrease. Also base case with no project enhancements that , as indicated, would have substantial impact on economics.

2020: This is at 130,000 tpd trade off studies indicated this was the best way to proceed.

171million tonne waste rock: The 171 million tonnes as waste is required under 43-101. When Teck assesses the 171 million they will not treat it as waste for their own valuation purposes.

The value for 171: Take the tonnes X metal grade X metal recovery X metal price and sum up the total value. Take the Op cost X the tonnes and substract from Metal value and you get the potential value of the 171 million tonnes.