TYHEE GOLD CORP

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Message: Changes that enhance project economics

"The Feasibility Study Team is continuing its work and there may be other minor changes to the project components, however; the points made (below) are seen to the changes that both enhance project economics and also improve interactions and reduce potential environmental effects from the YGP."

http://www.reviewboard.ca/upload/project_document/EA0809-003_Cover_Letter_-_Responses_to_IR_s_March_28__2012.PDF

During the Board’s site tour we presented a summary of what the project was and how

the Feasibility Study that was and remains underway, had identified minor modifications

to some project components that would both enhance project economics and reduce

perceived environmental effects from the YGP. When asked if these changes would

affect the overall EA schedule, the Board’s response was

NO, and they would prefer to

carry out the EA of the YGP based on the most current operating scenario. Tyhee NWT

Corp very much appreciated this decision and support from the Board members and

Board staff. The modifications to the project operating scenario can be seen on the

attached Figure and summarized as follows:

Nicholas Lake, originally planned to provide approximately 25% of the YGP mill

feed has, after some investigations by the Feasibility Study Team been removed

from the current mine plan, a decision primarily related to the higher

concentrations of Arsenic in the Nicholas Lake ore, which would needlessly

complicate the submittal since Ormsby is the main focus of our actions. .

Removing Nicholas Lake ore from the overall YGP mill throughput significantly

reduces or eliminates potential environmental effects associated with Arsenic.

The proposed Winter Lake Tailings Containment Area (TCA) would, through the

Feasibility Study be reexamined and redesigned to better handle the tailings that

are expected from the YGP. The TCA has been divided into three cells, two of

which (North and South Cells) would be the recipient areas for the more benign

floatation tails and the central cell would be the recipient of the Cyanide Leached

Tailings which would be deposited sub-aqueously.

Waste Rock from the Ormsby Open Pit, originally proposed for disposal in the

Ormsby Valley West of the Open Pit has, after review by the Feasibility Study

Team been revised to place waste rock on the North and South edges of the

Tailing Containment Area. This would include covering Round Lake and a small

portion on the southern end of the Historic Discovery Mine Tailings Cap as well

as an area between Winter Lake and Narrow Lake. Drainage will be directed to

either sediment controls structures or into the TCA depending on expected water

quality and quantity.

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