Community

FIRST NATIONS

In the Mackenzie Valley, land is either owned, or managed, controlled and administered by different governments or landowners. Land can be either Crown or Commissioner’s land administered by land managers, or the land is privately owned.

The Prairie Creek Mine is located in what is referred to as the DehCho Region of the Northwest Territories.

The DehCho and the Federal Government of Canada both claim legal title to this territory, the DehCho by virtue of historical occupation and the federal Government under Treaty 8, signed in 1900 and Treaty 11, signed in 1921 and 1922. Canada maintains that under the Treaties the DehCho extinguished ownership of their traditional lands. The Federal Government and the DehCho First Nations disagree on the interpretation of Treaties 8 and 11 and legal title to the land remains in dispute. The DehCho territory has an area of approximately 210,000 square kilometres and has a native population of approximately six thousand. For more information on the DehCho First Nations please click here

The DehCho are engaged in ongoing land settlement negotiations with the Government of Canada and the Government of the Northwest Territories in what is referred to as the DehCho Process. For more information on the DehCho Process click here.

The Prairie Creek mine is located 90 km from the nearest settled community of Nahanni Butte, located at the confluence of the South Nahanni and Liard Rivers, 146 km downstream of the minesite. There is no permanent road access either into the Prairie Creek property or Nahanni Butte other than the existing winter road. There is no other existing land occupation nor commercial land or water based activities in the vicinity of the mine. Nahanni Butte is inhabited by the Nahanni Butte Dene Band of the DehCho First Nations. For more information on the Nahanni Butte Dene Band please click here.

The Federal Government has negotiated land claim settlements in other parts of the Northwest Territories, first with the Dene/Metis in the late 1980’s and then with the Gwich’in and Sahtu Dene/Metis people. The DehCho have not settled their land claim with the Federal Government and remains the only Mackenzie Valley First Nations group not to have done so. Canadian Zinc seeks to consult on a regular basis with the Nahanni Butte Dene Band and other Bands of the DehCho First Nations as to opportunities for implementing the provisions of a Development and Cooperation Agreement as the Company moves forward with its plans for re-development of the property. The Company seeks a positive and cooperative working relationship between the Company, Nahanni and the DehCho First Nations in respect of developing and operating an environmentally sound operation at Prairie Creek, which will not have significant adverse environmental effects on the ecological integrity of the South Nahanni River or the Nahanni National Park Reserve, the Company believes that the separate goals of the DehCho First Nations in achieving political sovereignty and economic self-sufficiency and in protecting the environment are compatible.

Nahanni Butte Dene Band and Liidlii Kue First Nation

With a view to formalizing a working relationship with the communities a Memorandum of Understanding (“MOU”) has recently been signed with the Liidlii Kue First Nation of Fort Simpson and the Nahanni Butte Dene Band of Nahanni Butte. Please refer to the companies press releases of October 21, 2008 and November 4, 2008 respectively for more details. The MOU’s are set the stage for the bands to start negotiations towards an Impact Benefits Agreement relating to an operating mine at Prairie Creek.

The Company has recently signed an Impact Benefit Agreement with Nahanni Butte Dene Band as follows:

CZN Logo Nah?a Dehe Dene Band Logo

The NAH?A DEHE DENE PRAIRIE CREEK AGREEMENT provides for an ongoing working relationship between Canadian Zinc Corporation and the Nah?a Dehe Dene Band (Nahanni Butte Dene Band) that respects the goals and aspirations of each party and will enable the Nahanni community members to participate in the opportunities and benefits offered by the Prairie Creek Project and confirms their support for the Prairie Creek Mine.

The Prairie Creek Mine, a zinc/lead/silver property, is located within the traditional territory of Nahanni, about 90 kilometres to the northwest of the community of Nahanni Butte, in the Northwest Territories. The route of the access road connecting the Prairie Creek Mine to the Liard Highway passes within five kilometres of Nahanni Butte.

The Agreement provides a framework such that training, employment and business contracts are made available to Nahanni to ensure maximization of benefits from opportunities arising from the Prairie Creek Project in a manner that will be to the mutual benefit of both parties.

The formal signing of the Agreement took place at a ceremony in Nahanni Butte on January 20, 2011 and was attended by the Chief and Band Council of the Nahanni Butte Dene Band; the Hon Bob McLeod, Minister of Industry, Tourism and Investment of the Government of the Northwest Territories; Kevin Menicoche, Member of the Legislative Assembly for Nahendeh; the Canadian Northern Economic Development Agency (CanNor); and other government and aboriginal representatives.

The formal signing ceremony was followed by a community celebration in the form of the Annual Nahanni Winterfest which CZN has initiated and sponsored in previous years.

Impact Benefit Agreement;

The Agreement acknowledges the Nah?a Dehe Band aboriginal rights and interests in the area of the proposed Prairie Creek mining operation and the access road, recognises that the NDDB must be consulted such that its aboriginal rights and interests are fully accommodated, and provides the mechanism for effective communication and co-operation between NDDB and CZN.

Under this cooperative agreement CZN recognizes and respects NDDB’s asserted rights and interests in the Prairie Creek area. In return NDDB acknowledge CZN’s rights and interest in the development and future operation of the Prairie Creek Mine. This Agreement reflects the mutual commitment to consult and maintain an open, respectful and cooperative relationship as the Prairie Creek Mine progresses into operation.

Canadian Zinc has agreed to use its commercial best efforts to fill employment opportunities by giving priority to NDDB members and also to assist the NDDB to benefit from business opportunities associated with the development and operation of the Prairie Creek Project.

CZN has agreed to undertake certain social measures relating to the Project, including assistance in the future development of business opportunities and in capacity building. CZN has also agreed to make contributions to an Educational Fund to assist NDDB members seeking vocational or technical skills training or education and will also make apprenticeship positions available to NDDB Members.

Agreement Background

The Nah?a Dehe Band of Nahanni Butte, Northwest Territories is a member of the DehCho First Nations. Nahanni Butte is the closest community to the Prairie Creek mine and is located approximately 90 kilometres southeast of the mine site.

While exploring and developing the Prairie Creek project over many years, Canadian Zinc has strived to maintain good long term relations with the community of Nahanni Butte. This includes providing employment, training programs, community assistance, employing an Information Officer, establishing an annual scholarship program, site tours and various community activities.

A Memorandum of Understanding was signed between the parties on October 28, 2008 in which Canadian Zinc and NDDB declared their intentions to work together, as responsible corporate citizens of the region in the spirit of co-operation for mutual benefit as well as social, ecological, cultural and economic well being. Negotiations continued between the parties during 2010 resulting in the formal Agreement being endorsed and unanimously ratified by both the Chief and Council of the NDDB and by the Board of Directors of CZN.

An operating Prairie Creek Mine has the potential to provide significant economic opportunity for the NDDB and the entire Dehcho region. When in operation, it is expected that the Prairie Creek Mine will provide about 220 full-time jobs. Canadian Zinc has targeted minimum employment levels of 35%-40% Northern residents and 15%-25% Aboriginal First Nations and has undertaken to maximize business opportunities for regional First Nations communities.