Funding

As per the Environmental Agreement, Diavik’s contribution has been $600,000 annually, plus cost of living increases. EMAB must make best efforts not to exceed that amount. For special research or projects that cannot fit within this amount, the agreement allows EMAB to submit proposals to Diavik.

EMAB is a registered not-for-profit society of the Northwest Territories.

NOTE:

Diavik unilaterally deducted $300,000 over the fiscal years 2009-2010 and 2010-2011.

It is EMAB’s position that Diavik is not in compliance with the Environmental Agreement

EMAB has made a great deal of effort since December 2008 to actively resolve this disagreement with Diavik:

• Numerous meetings and negotiations with Diavik, as well as further negotiations involving Diavik and Indian and Northern Affairs Canada.

• Numerous letters exchanged with possible scenarios that might lead to a solution.

• Sought a legal opinion and provided it to all parties

Finally, on February 17, 2009, EMAB sent an urgent letter to all Parties to the EA recommending that “one or more Parties to the Agreement immediately initiate Article 16 of the EA -Resolution of Disputes - by delivering notice in writing to DDMI that its contribution for 2009-2010 is in dispute, and that its interpretation of EA (4.8)(g) is also in dispute; and that DDMI, the disputing Party and EMAB enter into mediation as soon as possible with the intent of resolving the dispute before the 60-day deadline.”

EMAB and the Aboriginal Parties, have strongly encouraged DIAND to initiate dispute resolution with DDMI.

As of March 31, 2010 , the situation has not been resolved. Unless EMAB receives the deducted funds it will not be able to carry out all of its planned activities for this year.