PUBLIC IMAGE OF THE INDUSTRY

Reference: http://www.pdac.ca/

The Prospectors and Developers Association of Canada (PDAC) represents the interests of the Canadian
mineral exploration and development industry. This association was established in 1932 in response to a
proposed government regulation that threatened the livelihood of Ontario prospectors.

Today, the association is a national organization with 6,000 individual members (including prospectors,
developers, geoscientists, consultants, mining executives, and students, as well as those involved in the
drilling, financial, investment, legal and other support fields) and 950 corporate members (including senior,
mid-size and junior mining companies and organizations providing services to the mineral industry).

The association’s activities and the services it provides fall generally into three categories: advocacy,
information, and networking. The association is best known for its annual convention, trade show, and
investors exchange. In 2008, this event attracted over 20,000 attendees from more than 100 countries.

This association belongs to the “self-regulation Involving stakeholders” type studied in chapter 10 from the
“Canadian Business and Society” book, in this type of self-regulation, the industry includes non-industry
stakeholders by its own volition in the development, application and enforcement of good practices and
standards.

A number of organizations, including the PDAC, have developed or are developing good practice guidelines
for sectors or activities within the mineral industry.

PDAC develops and submits recommendations on behalf of its members to Canada’s mines ministers who
meet annually with industry representatives. The 2008 PDAC submission includes recommendations on:
 social license (the clarification of consultation protocols and permitting requirements; resolution of
aboriginal land claims; and, implementation of government resource revenue sharing)
 and finance and taxation (providing a permanent Mineral Exploration Tax Credit; clarifying the definition
of Canadian Exploration Expense with respect to former mine sites; providing flow-through share
treatment for Qualified Environmental Trusts; and committing to long-term funding for geoscience
mapping).

In response to the good practice guidelines, the PDAC has the following committees:

Aboriginal Affairs Executive International

Awards Financial & Taxation Lands & Regulations
Convention Planning Geosciences Membership
CSR Governance Nomination
e3 Health and Safety Public Affairs
Education Human Resources Securities
Environment Development

This is what some of the committees are currently doing:

Aboriginal Affairs The Aboriginal Affairs Committee is exploring resource revenue sharing and the status of
land claims in Canada.

CSR mining companies are expected to adhere to the tenets of CSR and to recognize that they have a duty
of care to all their stakeholders, including employees, customers, local communities, and shareholders.

Environment e3 Environmental Excellence in Exploration, NOAMI, and sustainability. More

Financial & Taxation Working to extend the Mineral Exploration Tax Credit (‘super’ flow-through) and
modernize Canadian Exploration Expense

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Geosciences The ability to work in multiple jurisdictions without incurring multiple registration fees is An
important issue for PDAC members.

Health and Safety Universal health and safety guidelines for the mineral exploration industry are being
developed.
Human Resources Development Attracting young people into Canada’s mineral exploration industry is vital
for the industry’s sustainability

Lands & Regulations Access to land has been identified by association members as one of the exploration
industry’s most pressing concerns

Securities The PDAC calls for a securities regulatory system in Canada administered by one regulator,
applying one set of rules in a consistent manner.

Canadian Government is also involved in the initiatives from almost all committees, special attention is given
to Aboriginal affairs. These are some of the government agencies involved in the regulation of the industry:

Natural Resources Canada - Metals and Minerals Sector

Manitoba Energy and Mines - Minerals - Manitoba Mining Claims Registry
Mines and Minerals Division, Ontario Ministry of Northern Development and Mines
Newfoundland and Labrador Geological Survey
Geology Quebec