NOTICE OF COMMENCEMENT

of an Environmental Assessment

Waterpower Generating Station, Wabagishik Rapids, Vermilion River, Township of Foster

Wabagishik Lake (ON)

June 30, 2011 — Fisheries and Oceans Canada and Transport Canada are required to ensure that a screening is conducted commencing on June 29, 2011 in relation to the development proposal: Waterpower Generating Station, Wabagishik Rapids, Vermilion River, Township of Foster.

Xeneca Power Development Inc. is proposing to construct and operate a hydroelectric generating station on the Vermilion River at Wabagishik Rapids, located approximately 600 m downstream of Wabagishik Lake in the Township of Foster, west of the City 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 3.4 MW. The project would involve the construction of a 132 m long dam, including a 43 m long concrete control spillway. A conveyance system consisting of a 40 m long open approach channel and a 130 m long open tailrace channel would be required to divert flows from the Vermilion River to the powerhouse. The facility would capture 6.1 m of surveyed gross head and would result in the flooding of approximately 1.6 ha of riparian lands up to 1 km upstream of the dam. The extent of area downstream of the facility influenced by changing water flows associated with operation is yet to be determined, pending results of hydrologic modeling. The proposed project would connect to the electrical grid via a new 44 kV power line, supported by wooden poles, approximately 10.4 km in length. The required right-of-way for the power line corridor would extend to 10m and one pad mount transformer would be required. Access to the proposed site would require upgrading 7.3 km of existing road and construction of 1 km of new road on the south side of the river.

The scope of the 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 dam and spillway, conveyance system, powerhouse and tailrace, 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 11-01-62573