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Investing in an exemplary sustainable

development project

Plan noRD

Golfe du Saint-Laurent

Gulf of St. Lawrence

Ungava Bay

James Bay

Montréal

Québec

Labrador Sea

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Territory covered by the Plan Nord

Active mine

Mining project in development phase

Mine reclamation project

Hydroelectric power plant under construction

Port

CANADA

United States

Mexico

QuébecCanada

This massive project seeks to harness the economic, mining, energy, social, cultural and tourism potential of Québec’s territory north of the 49th parallel and north of the St. lawrence River and Gulf of St. lawrence. Join us and our partners in carrying out an exemplary sustainable development project!

© Government of Québec, 2014

Philippe CouillardPremier of Québec

The Plan nord is designed to ensure the coherent and integrated development of an immense territory that covers 1.2 million square kilometres and accounts for 72% of Québec’s geographic area. The territory is home to four aboriginal nations divided into 31 communities, in addition to 32 non-aboriginal communities. It is rich in natural resources and, as a result, in business and investment opportunities in sectors ranging from mining to energy and including construction, logistics, transportation, bio-food and tourism.

By balancing economic, environmental and social development, the project will become a reference for socially responsible and sustainable northern development, and will benefit northern communities as well as Québec as a whole. It will generate unprecedented scientific and research partnerships that will enable us to better curb the effects of climate change. a new world-class northern development research institute will support stakeholders involved in this sustainable development of northern Québec.

Half of the territory will be withdrawn from industrial activity and reserved primarily for eco-friendly tourism, environmental protection, biodiversity conservation, scientific knowledge acquisition and ecosystem-based forest management.

In short, a clear and predictable framework for investors.

The Plan nord

The guiding principles for carrying out the Plan Norda balance between economic, social and environmental aspects

responsible and sustainable development of northern Québec’s natural resources

establishing conditions conducive to economic development (access to the territory, energy, human resources)

development that is harmonious, ethical and respectful of the populations

a willingness at the heart of all decisions to protect the environment and conserve the North’s fragile biodiversity

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Huge mining and energy potential

The Société du Plan NordThe Québec government is in the process of establishing the Société du Plan Nord, which will play a leading role in the deployment of the government’s strategy for the integrated and coherent development of the territory covered by the Plan nord. In the meantime, these responsibilities are being carried out by the Secrétariat du Plan nord.

Unique tourism potentialThe Plan Nord promotes the culture of Northern Québec and, more generally, the territory in all its aspects with the aim of making it a world-class destination. a Tourism Strategy north of the 49th parallel is also contributing to making northern Québec an authentic and exceptional tourist experience. attractions include national parks that are representative of this unique territory.

Québec invites investors to join the many partners interested in participating in the Plan Nord. The economic potential is as vast as the territory.

Québec is already a mining powerhouse. Very preliminary exploration work was carried out throughout the territory that the Plan nord covers, providing an overall understanding of approximately 25% of its mining potential.

In terms of energy, Québec is the world’s fourth largest producer of hydroelectricity and there is still considerable potential for development, particularly within the territory covered by the Plan nord.

Regarding partnerships between the public and private sectors, the Société du Plan nord’s principal mandate will be to coordinate the various projects. The Québec government has also instructed Investissement Québec, its key economic development lever, to solicit foreign investment. Investissement Québec can become a financial partner or assist in drawing up financing arrangements.

Through its large hydroelectric facilities located within the territory covered by the Plan nord, Hydro-Québec is contributing significantly to northern development by producing, transporting and distributing electricity via the most extensive and one of the most reliable power grids in north america.

Easier access to resources and communities Access to the resources and communities in this vast territory continues to be one of the Plan Nord’s major challenges. The Societé du Plan nord will also be mandated to develop an integrated vision for modes of transportation and means of communication. Private partners will be asked to contribute financially to the development of infrastructure, particularly when it is related to carrying out an industrial project.

A gateway to the Northwest Passage sea routeThe foreseeable opening of the Northwest Passage sea route, which will reduce transportation time between asia and Europe by three days, will position Québec advantageously. The possibility of constructing a deep-water port along this new corridor will be assessed.

A dedicated FundThe Québec government has created the Plan Nord Fund, dedicated to financing strategic infrastructure, social measures and measures supporting the territory’s development and protection.

The Secrétariat du Plan Nord, in collaboration with its partners, is developing a plan to open up the territory that provides for:

access to the territory by road, air and rail

world-class port infrastructure that is expanding, such as the Port of Sept-îles

improved access to the Labrador Trough and increased rail transport capacity for ore and goods

a large-scale project to supply the nord-du-Québec and Côte-nord with natural gas and liquefied natural gas, which will be an environmental and economic asset since it will provide an alternative to fuel oil

Abundant resourcesQuébec is recognized for its abundant yet only partially tapped natural resources, dynamic and diversified mining sector and hydrographic profile that makes it the world’s fourth largest producer of hydroelectricity. This green, renewable energy powers a world-class aluminum industry. over three-fourths of Québec’s hydroelectricity is produced in the territory that the Plan nord covers. Québec also stands out for its extensive forests and the magnitude of its forest industry.

The territory covered by the Plan nord produces all of Québec’s nickel, cobalt, platinum group metals, zinc, iron ore and ilmenite, and accounts for a significant portion of gold and diamond production. lithium, vanadium and rare-earth metals are also found there.

Doing business in QuébecQuébec’s advanced and diversified economy is also extremely rich in natural resources and active in several knowledge-based industries.

Northern Québec contains

200,000 53km2 of commercialforests

overwhich account for more than

of Québec’s operable forests%

Knowledge-based

Québec society is among those that invest the most in education, at a rate of 7.8% of its GDP

Québec is home to a highly developed network of colleges and universities

Some of its universities rank among the world’s best in terms of research and teaching

Research and development expenditures representover 2.6% of the GDP, a rate that is higher than the averageof OECD, G8 and EU countries

Québec’s economy

A world leader

Québec is also among the world’s leaders in several high-tech industries. It is one of north america’s ten largest industrial centres in the health science sector. The information and communications technology sector accounts for 115,000 jobs across 5,000 companies. Many global leaders in pharmaceutical research, the manufacture of innovative products and medical technology have chosen Québec.

It costs less to do business in Québec than anywhere else in the G8 countries.

An advantageous business environment

Québec provides foreign investors with an advantageous business environment.

a study conducted by KPMG - a major financial advisory firm – shows that operating costs in Québec are on average 7.4% lower than in the US. The comparative analysis takes into account costs associated with labour, electricity, transportation and telecommunications, as well as interest, depreciation and tax rates.

This difference is due in part to the public healthcare system, which considerably reduces employers’ contribution to employee benefit plans. In terms of taxation, the corporate tax rate is one of the lowest in north america, at 29.90%. Capital tax was abolished in January 2011. Québec’s tax system also offers some of the world’s most advantageous investment and R&D incentives.

Québec’s labour pool is composed of four million people who are recognized for their skill, creativity, vitality and bilingualism. Over 85% of the workforce has a high school education or higher. Labour costs in Québec are 16% lower than in the US.

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The financial sector

Canada’s and Québec’s well-regulated financial sector demonstrated its soundness during the most recent global financial crisis. Major federal chartered banks, such as the Royal Bank, Bank of Montréal, national Bank of Canada and laurentian Bank, make up the leading institutions in Québec’s financial market. a number of these institutions are headquartered in Montréal. The Québec-based Desjardins Group is the largest cooperative financial group in Canada.

Reliable hydroelectric energy at extremely competitive prices

Québec provides access to green, renewable energy. a comparison of commercial and industrial kilowatt hour rates shows that, as a result of the hydroelectricity produced in Québec, the rates available are significantly more attractive than those in major north american cities and leading industrialized countries (data for large-power customer rates, at a monthly consumption of 3,060,000 kWh and a power demand of 5,000 kW):

Major North American cities Leading industrialized countries *

Montréal

17¢

5.05 ¢ 15¢ 6¢

8¢11¢ 10¢Japan

United Kingdom Norway

France

European Union

(28 countries) Germany

Toronto

11.13 ¢New York

21.25 ¢Data is taken from Comparison of Electricity Prices in Major North American Cities – Rates in Effect April 1, 2014, published by Hydro-Québec and expressed in Canadian cents.

Electricity rates for industrial customers outside north america are expressed for the year 2013 and consumption levels that differ slightly from the electricity rates.

*

The Plan Nord gives foreign companies and the international community an opportunity to participate in a groundbreaking sustainable development project destined to become a model for economic, social and environmental sustainable development.