NOTICE OF COMMENCEMENT

of an Environmental Assessment

Allen and Struthers Hydroelectric Generating Station, Wanapitei River, Struthers Township

Sturgeon Chutes (ON)

June 7, 2011 — Fisheries and Oceans Canada and Transport Canada are required to ensure that a screening is conducted commencing on May 27, 2011 in relation to the development proposal: Allen and Struthers Hydroelectric Generating Station, Wanapitei River, Struthers Township.

Xeneca Power Development Inc. is proposing to construct and operate a hydroelectric generating station approximately 300 m upstream of Sturgeon Chute on the Wanapitei River in the Municipality of Killarney, District of Sudbury. The proposed development would be operated as a run-of-river facility with some daily flow modifications and will have a generating capacity of 2.8 MW. The project would involve the construction of a concrete spillway with a concrete side dam and a spill wall, a concrete dam with incorporated powerhouse and an additional auxiliary earthen dam. The facility would capture 5 m of surveyed gross head and would result in the inundation of riparian lands up to 12 km upstream of the dam. The proposed project would connect to the electrical grid via a new 44 kV power line, supported by wooden piles, approximately 19.5 km in length. The required right-of-way for the power line corridor would extend from 10-30 m dependant on site characteristics. One pad mount transformer would be required. Access to the proposed site would require upgrading 9.5 km of existing road and construction of new road to the proposed powerhouse. Additionally, a new road would be required to access the proposed auxiliary dam from the proposed powerhouse. The total length of the proposed new road construction is approximately 4.8 km.

The scope of project has been identified as: all physical works and activities associated with the construction and operation of the proposed hydroelectric generating facility, including a new spillway, spill wall, side dam/powerhouse and auxiliary earthen dam, storage sites, working areas, platforms, new transmission line and associated structures, new access roads, upgrades to existing access roads and any other works or undertakings directly associated with the hydroelectric project, including those that are temporary

Under section 5 of the Canadian Environmental Assessment Act, an environmental assessment is required because, for the purpose of enabling the project to be carried out in whole or in part, Fisheries and Oceans Canada may take action in relation to subsection 35(2) of the Fisheries Act, may take action in relation to section 32 of the Fisheries Act, may take action in relation to subsection 22(3) of the Fisheries Act and may take action in relation to subsection 22(1) of the Fisheries Act and because Transport Canada may take action in relation to section 5 of the Navigable Waters Protection Act.

This project is also subject to the environmental assessment requirements of the Government of Ontario.

The Canadian Environmental Assessment Agency will act as the Federal Environmental Assessment Coordinator for this environmental assessment.

For further information on this environmental assessment, please contact:
DFO – CEA Registry Office -Central & Arctic Region – Ontario Area
P.O. Box 5050
867 Lakeshore Road
Burlington  ON  L7R 4A6
Telephone: 905-336-4508
Email: CEARCNAON-RCEERCAON@dfo-mpo.gc.ca

and refer to Registry reference number 11-01-62314