Economic Study Summary

State Taxes$5.22B–$5.82B

State Royalty Payments$900M–$1.10B

20-YEAR CUMULATIVE TAXES ECONOMICCONTRIBUTIONSCumulative estimated contribution to U.S. GDPduring Initial Production Phase

$64 BILLION

PEBBLEWHERE IS IT & WHAT’S THERE?· 200 air miles southwest of Anchorage, Alaska· 100+ air miles from Bristol Bay· State of Alaska land designated for mineral

exploration and potential development.

55 BILLIONPOUNDS OF COPPER (MEASURED & INDICATED)

3.3 BILLION

67 MILLION

WHY DOES PEBBLE MATTER?In Alaska, 93% of the state’s unrestricted revenue

comes from oil, funding everything from roads to

schools to the Permanent Fund. Diversifying

funding for Alaska's long-term economic stability

makes projects like Pebble—and the jobs it could

bring, even more important.

In the Lake & Peninsula Borough, these jobs

matter even more. Jobs in-region mean reversing

the trend of economic and social decline.

EMPLOYMENT IN THE BRISTOL BAY REGIONOf the eligible workers,

63% have some type of

job. Of that, only 35%

worked year-round.

OUTMIGRATION IN SOUTHWEST ALASKA The lack of year-round

jobs and industry diversity

in Southwest Alaska leads

to many people leaving

local communities.

22%

DISTRIBUTION OFSOUTHWEST ALASKAN

RESIDENT WORKERS

OTHER 13%EDUCATION& HEALTHSERVICES

9%

40%LOCAL

GOVERNMENT

16%TRADE,

TRANSPORTATION& UTILITIES

MANUFACTURING

LEVELOCK

LAKE &PENINSULABOROUGH

NONDALTON

10%POPULATION

DECLINED

THE PEBBLE PROJECTJOBS, REVENUE AND ECONOMIC CONTRIBUTIONS FOR ALASKA THE ECONOMIC VALUE OF THE

PEBBLE PROJECT

BOROUGH RESIDENTS LIVING BELOWTHE POVERTY LINE*

21%

PEBBLE WOULDEXPAND U.S. COPPER

PRODUCTION BY


PRODUCTION BY

THE U.S. IMPORTS

35%-40%OF ITS COPPER FROMFOREIGN SOURCES- U.S. Geological Survey

- U.S. Census Data 2000, 2010

www.facebook.com/PebbleProject � www.twitter.com/PebbleProject � www.linkedin.com/company/pebble-ltd.-partnership � www.pebblepartnership.com

OUNCES OF GOLD(MEASURED & INDICATED)

POUNDS OF MOLYBDENUM(MEASURED & INDICATED)

2.3 BILLIONPOUNDS OF MOLYBDENUM

(INFERRED)

40 MILLIONOUNCES OF GOLD

(INFERRED)

26 BILLIONPOUNDS OF COPPER(INFERRED)

- Based on 2011 initial production levels of 1.1 million metric tons.

MORE THAN DOUBLE THE STATE AVERAGE OF 9.5%

*2007-2011 American Community Survey 5-Year Estimates, U.S. Census

The Pebble Limited Partnership (PLP) has the potential to develop one of the most signi�cant discoveries of copper, gold, molybdenum and silver in the world.

What would that mean to people, businesses and governments?

REVENUEIN LOCAL, STATE & FEDERAL TAXESCumulative estimated contribution during Initial Production Phase

$18 BILLIONJOBSCREATED ANNUALLYAnnual average for Alaska andthe Lower 48 during Initial Production Phase

15,000 ECONOMYCONTRIBUTIONS TO ALASKA

Contributions to GSP.

REVENUEALASKA STATE TAX &

ROYALTY CONTRIBUTIONSThe numbers reported for the

Potential Subsequent Development phase are based on one additional

20-year production cycle.

CONSTRUCTION CUMULATIVE

INITIAL PRODUCTION CUMULATIVE

POTENTIAL SUBSEQUENT DEVELOPMENT CUMULATIVE

$135M

$3.4B–$4.5B

$6.1B–$6.9B

CONSTRUCTION ANNUAL

INITIAL PRODUCTION ANNUAL

POTENTIAL SUBSEQUENT DEVELOPMENT ANNUAL

$400M

$1.14B–$1.435B

$2.14B–$2.36B

...AND BILLIONS OF DOLLARS TO ALASKA’S ECONOMY.During the Initial Production Phase, the project could expand Alaska's economy by $1.1 - $1.4 billion annually—plus $2.14 - $2.36 billion annually in any single potential subsequent development phase.

PEBBLE COULD ADD 10,000 ALASKA JOBS...Estimated jobs across Construction, Initial Production and one Subsequent Development phases—the kinds of jobs that change lives and communities.


State Royalty Payments$525M–$725M

25-YEAR CUMULATIVE TAXES

The project would include various infrastructure investments, including a multi-modal port, power plant and a

transportation corridor. This infrastructure would likely create additional value for the local communities,

including potentially lower power expenses, lower shipping costs and economic growth and diversification.

25%POPULATION

DECLINED44%

POPULATIONDECLINED

DURING INITIAL PRODUCTION PEBBLE COULD MORE THAN

ALASKA MINING TAX REVENUE

THE PEBBLE PROJECT’S PROJECTED

DOUBLE$1 BILLIONANNUAL OPERATING BUDGET

IS MORE THANPEBBLE ROYALTIES TO ALASKA

PERMANENT FUND50% OF ALL ROYALTIES

ALLOCATED TO THE

ALASKA




$64 BILLION




3.3 BILLION

67 MILLION













worked year-round.





local communities.

22%


RESIDENT WORKERS


9%

40%LOCAL

GOVERNMENT

16%TRADE,


MANUFACTURING

LEVELOCK


NONDALTON

10%POPULATION

DECLINED


PEBBLE PROJECT


21%


PRODUCTION BY


PRODUCTION BY

THE U.S. IMPORTS







(INFERRED)


(INFERRED)


















$135M

$3.4B–$4.5B

$6.1B–$6.9B

CONSTRUCTION ANNUAL



$400M

$1.14B–$1.435B

$2.14B–$2.36B









25%POPULATION

DECLINED44%

POPULATIONDECLINED







ALLOCATED TO THE

ALASKA

$114K$80K

$109K$72K

INITIAL PRODUCTION25 YEARS

SUBSEQUENT DEVELOPMENT20 YEARS

ABOUT THIS DOCUMENTIHS Global Insight was commissioned to assess the potential economic contributions of a “conceptual” Pebble Mine. Because the Pebble Project has not yet begun the permitting process, however, there is no de�nitive, approved and permitted development plan to evaluate. Therefore, IHS selected a snapshot of the project’s ongoing engineering plans to serve as a proxy and relied on preliminary planning information as key inputs for the economic models. This brochure summarizes those economic �ndings and includes additional data from the Pebble Environmental Baseline Document (2012). Currently, scienti�c studies and engineering work continue related to the deposit, and no �nal project design has been selected or approved at this time by the Pebble Partnership.

SOME KEY TERMSIHS HAS DIVIDED THE PROJECT INTO THREE MAIN AREAS:

Construction: 5 YearsFive years of capital investment averaging $1.2B/year to construct mine site and facilities.

Initial Production: 25 YearsConceptual timeframe for the purposes of this report.

Potential Subsequent Development: 20 YearsIHS estimates that up to three additional 20-year production cycles are possible.

JOBSWHERE ARE THEY?

ECONOMYCONTRIBUTIONS TO LOCAL, STATE & NATIONAL

LEISURE & HOSPITALITYSTATE GOVERNMENT

SEAFOOD PROCESSING

CONSTRUCTION

OIL & GAS MINING 74.1%

79.6% 70.7%

PERCENTAGE OF RESIDENT WORKERS IN ALASKA

ALASKA LOWER 48

CONSTRUCTION (5 Years)

INITIAL PRODUCTION (25 Years)

POTENTIAL SUBSEQUENT DEVELOPMENT (Potential for three subsequent 20-year production phases)

DIRECT2,525 JOBS

INDIRECT925 JOBS

INDUCED1,275 JOBS

DIRECT0 JOBS

INDIRECT6,250 JOBS

INDUCED5,200 JOBS

DIRECT915 JOBS

INDIRECT1,175 JOBS

INDUCED800 JOBS

INDIRECT6,070 JOBS

INDUCED5,450 JOBS

DIRECT305 JOBS

DIRECT1,050 JOBS

INDIRECT800 JOBS

INDUCED900 JOBS

WHAT KIND OF JOBS? GOOD, YEAR-ROUND JOBS!Pebble is a world-class project with the potential to employ generations of Alaskans, across a wide range of

industries—from environmental scientists and mechanics to power plant operators, clerks and security guards.

Pebble expects to hire 75% of its direct operations workforce from within Alaska, and has committed to ensuring that local

applicants will receive priority consideration based on quali�cations and merit. How does that compare with other industries?

$75K$63K

2XALASKA AVG.

OF $51K

THAT’S OVER

Pebble could also have a significant impact on job creation in the Lower 48. These are mostly indirect and induced positions, created by the need for products such as steel and heavy equipment which cannot be sourced within Alaska.

INDIRECT7,150 JOBS

INDUCED6,400 JOBS

DIRECT350 JOBS

Pebble could create thousands of jobs. These are estimates, but here’s how we see

the employment numbers breaking down

over the three main phases of the project.

CONSTRUCTION

INITIAL PRODUCTION

POTENTIALSUBSEQUENTDEVELOPMENT*

CONSTRUCTION

INITIAL PRODUCTION


$400MANNUAL

$1.14B–$1.435BANNUAL


ALASKA LOWER 48$1.175B

ANNUAL

$1.290BANNUAL

$1.520BANNUAL

REVENUETAX CONTRIBUTIONS SUPPORT PROGRAMS

4%

DISTRIBUTION OFGOVERNMENT REVENUES

DURING INITIALPRODUCTION

L&P BOROUGHSEVERANCE TAX

REVENUE

23%LOWER 48 STATE

TAX REVENUE

51%FEDERAL

TAX REVENUE

22%ALASKA STATETAX REVENUE

CONSTRUCTION

YEARS ANNUAL

CUMULATIVE

CONSTRUCTION

INITIAL PRODUCTION

POTENTIALSUBSEQUENTDEVELOPMENT

5 $27M

25 $136M-$180M

20* $306M-$346M

$135M$3.4B-$4.5B

ALASKA

LOWER 48STATES

$6.1B-$6.9B

CONSTRUCTION CONSTRUCTION

INITIALPRODUCTION


5 $114M

25 $165M

20* $195M

$570M$4.1B

$3.9B

The revenue estimated for Pebble’s tax contribution to Alaska is based on a range of commodity price estimates.

$29M $33MTO

PEBBLE PROJECT COULD PAYTHE LAKE AND PENINSULA BOROUGHANNUAL TAX RECEIPTS OF

AVERAGE DURING INITIAL PRODUCTION

$910 MILLION

$8.5 $9.85BILLION

$12.2 $13.2

TO

BILLIONPOTENTIAL SUBSEQUENT DEVELOPMENT*

TO

INITIAL PRODUCTION

CONSTRUCTION

*The numbers reported for the Potential Subsequent Development phase are based on one additional 20-year production cycle.

TAX REVENUECUMULATIVE FEDERAL

Contributions to GSP/GDP.

* Average annual salary including direct, indirect and induced in Alaska

ALASKA SALARIES

LOWER 48 SALARIES

CONSTRUCTION5 YEARS

$66K$63KINITIAL PRODUCTION

25 YEARSSUBSEQUENT DEVELOPMENT

20 YEARS

$59K

* Average annual salary including direct, indirect and induced in Lower 48

CONSTRUCTION5 YEARS

93.5%RESIDENTWORKERS



38%HIGHER THAN

LOWER 48 AVG.OF $46K

THAT’S

16,175TOTAL AK +

U.S. JOBS

14,715TOTAL AK +

U.S. JOBS

TOTAL LOWER 48 JOBS13,900 JOBS

16,650TOTAL AK +

U.S. JOBSTOTAL ALASKA JOBS2,750 JOBS

TOTAL ALASKA JOBS4,725 JOBS




JOB CATEGORIESDirect Jobs: Direct Pebble employees or full-time equivalent in contractors.

Indirect Jobs: Created by Pebble’s need for infrastructure and supplies; product manufacturing, supply chains.

Induced Jobs: Goods and services sector jobs created by spending from Direct and Indirect employment.

93.5%

68.2% 23.5%

DIRECTJOBS

ALLJOBS*

600%MORE THANTHAT CONTRIBUTION WOULD INCREASE THEIR ANNUAL BUDGET

- Over 2013 levels.

ALLJOBS*

$114K$80K

$109K$72K








JOBSWHERE ARE THEY?



SEAFOOD PROCESSING

CONSTRUCTION


79.6% 70.7%


ALASKA LOWER 48




DIRECT2,525 JOBS

INDIRECT925 JOBS

INDUCED1,275 JOBS

DIRECT0 JOBS

INDIRECT6,250 JOBS

INDUCED5,200 JOBS

DIRECT915 JOBS

INDIRECT1,175 JOBS

INDUCED800 JOBS

INDIRECT6,070 JOBS

INDUCED5,450 JOBS

DIRECT305 JOBS

DIRECT1,050 JOBS

INDIRECT800 JOBS

INDUCED900 JOBS





$75K$63K

2XALASKA AVG.

OF $51K

THAT’S OVER


INDIRECT7,150 JOBS

INDUCED6,400 JOBS

DIRECT350 JOBS




CONSTRUCTION

INITIAL PRODUCTION


CONSTRUCTION

INITIAL PRODUCTION


$400MANNUAL




ANNUAL

$1.290BANNUAL

$1.520BANNUAL


4%




REVENUE

23%LOWER 48 STATE

TAX REVENUE

51%FEDERAL

TAX REVENUE


CONSTRUCTION

YEARS ANNUAL

CUMULATIVE

CONSTRUCTION

INITIAL PRODUCTION


5 $27M

25 $136M-$180M

20* $306M-$346M

$135M$3.4B-$4.5B

ALASKA

LOWER 48STATES

$6.1B-$6.9B


INITIALPRODUCTION


5 $114M

25 $165M

20* $195M

$570M$4.1B

$3.9B


$29M $33MTO



$910 MILLION

$8.5 $9.85BILLION

$12.2 $13.2

TO


TO

INITIAL PRODUCTION

CONSTRUCTION





ALASKA SALARIES

LOWER 48 SALARIES

CONSTRUCTION5 YEARS



20 YEARS

$59K


CONSTRUCTION5 YEARS




38%HIGHER THAN


THAT’S

16,175TOTAL AK +

U.S. JOBS

14,715TOTAL AK +

U.S. JOBS


16,650TOTAL AK +









93.5%

68.2% 23.5%

DIRECTJOBS

ALLJOBS*


- Over 2013 levels.

ALLJOBS*

$114K$80K

$109K$72K








JOBSWHERE ARE THEY?



SEAFOOD PROCESSING

CONSTRUCTION


79.6% 70.7%


ALASKA LOWER 48




DIRECT2,525 JOBS

INDIRECT925 JOBS

INDUCED1,275 JOBS

DIRECT0 JOBS

INDIRECT6,250 JOBS

INDUCED5,200 JOBS

DIRECT915 JOBS

INDIRECT1,175 JOBS

INDUCED800 JOBS

INDIRECT6,070 JOBS

INDUCED5,450 JOBS

DIRECT305 JOBS

DIRECT1,050 JOBS

INDIRECT800 JOBS

INDUCED900 JOBS





$75K$63K

2XALASKA AVG.

OF $51K

THAT’S OVER


INDIRECT7,150 JOBS

INDUCED6,400 JOBS

DIRECT350 JOBS




CONSTRUCTION

INITIAL PRODUCTION


CONSTRUCTION

INITIAL PRODUCTION


$400MANNUAL




ANNUAL

$1.290BANNUAL

$1.520BANNUAL


4%




REVENUE

23%LOWER 48 STATE

TAX REVENUE

51%FEDERAL

TAX REVENUE


CONSTRUCTION

YEARS ANNUAL

CUMULATIVE

CONSTRUCTION

INITIAL PRODUCTION


5 $27M

25 $136M-$180M

20* $306M-$346M

$135M$3.4B-$4.5B

ALASKA

LOWER 48STATES

$6.1B-$6.9B


INITIALPRODUCTION


5 $114M

25 $165M

20* $195M

$570M$4.1B

$3.9B


$29M $33MTO



$910 MILLION

$8.5 $9.85BILLION

$12.2 $13.2

TO


TO

INITIAL PRODUCTION

CONSTRUCTION





ALASKA SALARIES

LOWER 48 SALARIES

CONSTRUCTION5 YEARS



20 YEARS

$59K


CONSTRUCTION5 YEARS




38%HIGHER THAN


THAT’S

16,175TOTAL AK +

U.S. JOBS

14,715TOTAL AK +

U.S. JOBS


16,650TOTAL AK +









93.5%

68.2% 23.5%

DIRECTJOBS

ALLJOBS*


- Over 2013 levels.

ALLJOBS*




$64 BILLION




3.3 BILLION

67 MILLION













worked year-round.





local communities.

22%


RESIDENT WORKERS


9%

40%LOCAL

GOVERNMENT

16%TRADE,


MANUFACTURING

LEVELOCK


NONDALTON

10%POPULATION

DECLINED


PEBBLE PROJECT


21%


PRODUCTION BY


PRODUCTION BY

THE U.S. IMPORTS







(INFERRED)


(INFERRED)


















$135M

$3.4B–$4.5B

$6.1B–$6.9B

CONSTRUCTION ANNUAL



$400M

$1.14B–$1.435B

$2.14B–$2.36B









25%POPULATION

DECLINED44%

POPULATIONDECLINED







ALLOCATED TO THE

ALASKA

Documents

Economic Study Summary