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THURBER ENGINEERING LTD. July 20, 2012 File: 14-214-2 Lidstone and Company! Barristers and Solicitors Suite 1300- Sun Tower, 128 Pender Street West Vancouver! B.C. V6B 1R8 Attention: Don Lidstone. Q.C. THE SHORES SUBDIVISION - PHASE I GEOTECHNICAL ASSESSMENT Dear Don: As requested, Thurber Engineering Ltd. (TEL) has completed a review of the sinkhole formed on June 1! 2012 and previously reported sinkholes, slope instability, springs and erosion within The Shores subdivision. This letter documents our observations and provides our comments and recommendations. This report is subject to the attached Statement of Limitations and Conditions. 1. INTRODUCTION The site is a 28 lot residential development with a plan area of about 400 by 200 m, located on the west side of the neighbourhood of West Porpoise Bay, in Sechelt, BC, The site is on the south shore of Sechelt Inlet at Snake Bay and extends westward from the intersection of Gale Road North (L-100) and Crowston Road to Snake Bay Creek. The site was developed by Concordia Homes Ltd. (Concordia). Civil engineering for the development was provided by Web Engineering Ltd. (Web) and geotechnical engineering by GeoTacTics Engineering Ltd. (later incorporated as GeoTacTics Media Engineering (2007) Ltd.). For discussion purposes, we have used the name GeoTacTics to refer to both companies. We understand that a spring developed on Lot 3 on May 26, 2012, and that significant quantities of sand and silt were observed discharging from the spring at that time. On June 1, 2012, a sinkhole collapse occurred on Seawatch Lane (L-200) adjacent to Lot 28 at about Sta. 5÷80. Until the sinkhole collapse occurred, no surface manifestation of the sinkhole was reported. For public safety reasons, the District of Sechelt (DOS) has closed access to the lane and has backfilled the sinkhole with granular material. The DOS is conducting regular site inspections and is regularly topping up the sinkhole backfill as required. Following the formation of the sinkhole, DOS retained TEL to provide geotechnical input on existing geotechnical issues and provide an assessment of the risk of similar issues occurring in the future. To aid our assessment and understanding of the site, DOS has provided us with available historical geotechnical information on the development, elevation contours from 2009 bare earth LiDAR mapping and miscellaneous documents, drawings and photos as background information for our review. The documents are summarized in Table 1. 900. 1281 West Georgia Street, Vancouver, BC V6E 3J7 T: 604 684 4384 F: 69/. 684 5124 thurber.ca

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THURBER ENGINEERING LTD.

July 20, 2012 File: 14-214-2

Lidstone and Company! Barristers and SolicitorsSuite 1300- Sun Tower, 128 Pender Street WestVancouver! B.C. V6B 1R8

Attention: Don Lidstone. Q.C.

THE SHORES SUBDIVISION - PHASE IGEOTECHNICAL ASSESSMENT

Dear Don:

As requested, Thurber Engineering Ltd. (TEL) has completed a review of the sinkhole formedon June 1! 2012 and previously reported sinkholes, slope instability, springs and erosion withinThe Shores subdivision. This letter documents our observations and provides our commentsand recommendations.

This report is subject to the attached Statement of Limitations and Conditions.

1. INTRODUCTION

The site is a 28 lot residential development with a plan area of about 400 by 200 m, located onthe west side of the neighbourhood of West Porpoise Bay, in Sechelt, BC, The site is on thesouth shore of Sechelt Inlet at Snake Bay and extends westward from the intersection of GaleRoad North (L-100) and Crowston Road to Snake Bay Creek. The site was developed byConcordia Homes Ltd. (Concordia). Civil engineering for the development was provided byWeb Engineering Ltd. (Web) and geotechnical engineering by GeoTacTics Engineering Ltd.(later incorporated as GeoTacTics Media Engineering (2007) Ltd.). For discussion purposes,we have used the name GeoTacTics to refer to both companies.

We understand that a spring developed on Lot 3 on May 26, 2012, and that significant quantitiesof sand and silt were observed discharging from the spring at that time. On June 1, 2012, asinkhole collapse occurred on Seawatch Lane (L-200) adjacent to Lot 28 at about Sta. 5÷80.Until the sinkhole collapse occurred, no surface manifestation of the sinkhole was reported. Forpublic safety reasons, the District of Sechelt (DOS) has closed access to the lane and hasbackfilled the sinkhole with granular material. The DOS is conducting regular site inspectionsand is regularly topping up the sinkhole backfill as required.

Following the formation of the sinkhole, DOS retained TEL to provide geotechnical input onexisting geotechnical issues and provide an assessment of the risk of similar issues occurring inthe future. To aid our assessment and understanding of the site, DOS has provided us withavailable historical geotechnical information on the development, elevation contours from 2009bare earth LiDAR mapping and miscellaneous documents, drawings and photos as backgroundinformation for our review. The documents are summarized in Table 1.

900. 1281 West Georgia Street, Vancouver, BC V6E 3J7 T: 604 684 4384 F: 69/. 684 5124thurber.ca

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2. SITE DESCRIPTION

2.1 Surface Conditions

The site physiography is described concisely in the GeoTacTics reports and is not repeatedherein. In those reports, the overall development property is divided into 4 zones, namely theforeshore, the backshore marsh, the lower slope and the upper slope as shown on GeoTacTics’Dwg. No. 2 (attached) dated August 2004. Phase 1 of the development lies between theforeshore and the crest of the lower slope at about El. 50 m. GeoTacTics indicates that theoverall slope of Phase 1 dips down at about l5cfro m the horizontal to the north east. Phase 2,which has not yet been developed, is proposed on the upper slope zone. Building lots arelocated both below the L-100 line (the extension of Gale Avenue North) and between the L-100line and L-200 line (Seawatch Lane), which roughly follows the crest of the lower slope. Thereis a 15 m wide environmental setback along the shoreline which was intended to precludedevelopment on much of the foreshore marsh zone. Most of the trees have been removed fromthis zone since commencement of construction.

2.2 Subsurface Conditions

Based on information provided by GeoTacTics, we understand that the typical soil profile in thedevelopment area comprises (from top down) an upper zone of very dense, cobbly, glacial tilland marine silt layers underlain by a deposit of grey/brown, fine grained sand, underlain by firmto stiff marine silt with lenses of fine sand. Groundwater is believed to be perched on thesurface of the lower marine silt layer and results in springs occurring in the fine sand layerexiting the slope near the base of the lower slope and on the backshore marsh. GeoTacTics’Figure 3, showing a schematic section of the site geology, is attached.

At the time of our 2008 site reconnaissance to assess the rock stack retaining walls on behalf ofDOS, the grey/brown fine sand deposit was visible at the western end of the site and the lowermarine silt was exposed in the foundation excavation for Lot 15. The near-vertical excavatedfaces in the sand were dry. Seepage was observed from above and from sand lenses withinthe marine silt layer. There were no exposures of the glacial till deposit at the time of the 2008reconnaissance.

In 2012, the grey/brown fine sand deposit is still visible at the western end of the site above theL-200 alignment from the park dedication to south of about Lot 17.

2.3 Existing Geotechnical Issues

Review of GeoTacTics’ reports indicates that wet zones and multiple springs formed on the cutslopes during site preparation, releasing significant volumes of water and soil. Following theformation of the springs, sinkholes began to be observed upslope of the springs. Additionally,there have been several instances of slope instability during and after construction. Theseissues were ongoing throughout construction and are documented in the available geotechrtical

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information. An active sinkhole and seepage feature were observed during our 2012 sitereconnaissance and follow up site visits.

As described below, we believe that the springs and sinkholes are distinct manifestations of thesame geotechnical issue. Accordingly, any geotechnical investigation program and remediationor mitigation measure must consider the whole system of which they are parts to be successful.

3. PROGRAM OF WORK AND REVIEW

Our program of work carried out in preparation of this letter report includes the following:

1) A site reconnaissance and follow up visits,

2) Soil sampling for laboratory testing

3) Geophysical survey with ground penetrating radar

4) A land survey of the sinkhole, spring and other indicators of springs and sinkholes

5) Airphoto interpretation

6) Review of available geotechnical information

Our geotechnical engineering assessment and recommendations are based on ourinterpretation of the above information.

3.1 Site Reconnaissance and Follow-up Site Visits

3.1.1 Sta. 5+80, L-200 Sinkhole and Lot 3 Spring

A site reconnaissance was conducted by David Tara, P.Eng. of TEL on June 2, 2012. Mr. Tarawas accompanied by Mr. Phil Strain of DOS. The purpose of the reconnaissance was tovisually assess the sinkhole and spring, provide interim guidance for management of thesinkhole and determine if there were any immediate life safety issues. Follow up visualinspections were conducted by Mr. Tara on June 5, 15 and July 1, 2012.

At the time of our initial site visit on June 2, the sinkhole area had been cordoned off withbarriers. The hole in the asphalt was immediately adjacent to the south curb near Sta. 5+80(L-200) and measured about 1.2 by 2.4 m in plan. Below the asphalt, the opening was visuallyestimated to be about 4.6 by 4.6 m as shown in Photo 1.

Based on discussions with several of the residents, we were informed that the spring hadformed around midday on May 26. By mid-week, efforts were apparently made to contain the

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flow and direct it through a series of stilling basins to reduce the amount of silt and sand runningdown the bank and into Snake Bay.

The spring on Lot 3 is shown on Photo 2 and the first of the stilling basins (nearest to the spring)in Photo 3. As seen in the photo, the water is silt laden and the volume of flow is significant.

On June 2, we also observed that the water flowing in the ditch on the west side of CrowstonRoad disappears into the ground well upstream of the storm water culvert inlet.

It was agreed that DOS would conduct regular visual inspections of the site until the sinkholeissue was resolved.

On June 4 the sinkhole was backfilled by DOS with granular material.

At the time of our June 5 site visit, DOS staff had returned to remove a section of the curb andcomplete backfilling operations. The zone around the spring on Lot 3 had been reworked and19mm crushed gravel placed around the opening. As a result, the exiting water was muchmore dispersed with a significant component draining down the slope and the remainder into thestilling basins.

By June 6, DOS reported that a 1.2 by 2.4 m zone of the sinkhole backfill had dropped about0.5 m. Since that time, the backfill continues to disappear into the sinkhole and DOS continuesto regularly top it up. We understand that, initially, DOS was topping up the backfill with theequivalent of about 1 load of a single axle gravel truck per day but that the volume has sincedecreased.

We were informed by Mr. Ron Davis of Concordia that the Crowston Road ditch hasexperienced significant downcutting since it was constructed.

3.1.2 Slopes and Retaining Walls

In general, rock stack walls have been constructed to the south of Lots 19 to 21 and to the northof Lots 22 to 28. The transition from south to north occurs between Lots 21 and 22. The rockstack walls range from single to multi-tier with minimum tier heights of about 2 m. Other thanfencing on Lot 25, no safety rails or fences were observed.

The overall slope along the south side of Lots 19 to 21 dips down from Seawatch Lane at about28° to 30° from the horizontal. The majority of th e slope is supported by a system of rock stackwalls. However, in the southeast corner of Lot 211 a scarp-Hke feature is present as shown inthe oblique image (Photo 4) and 2009 airphoto (Photo 5) taken from Sunshine Coast RegionalDistrict (SCRD) Online Property Information System (OPlS).

The upper slope of Lot 18 dips down from the L-200 at about 38°to 40°from the horizontal.

Crent Lidstone and Company Barnsters and Solcitors Data Juty 20, 2012

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At the southwest corner of the site, the existing cut slopes are benched. Several of the cutslopes are near vertical as shown in Photos 6, 7, 8 and 9. No seepage was observed on thesoil exposures. No warning signs or hoarding are present.

The park dedication at the west end of the site appears to have been used as a spoil depositionarea. Locally, slopes dip down towards Snake Bay Creek at about 55°to the horizontal.

3.2 Soil Sampling and Laboratory Testing

During our June 15 visit, six soil samples were collected. Two samples of the sand depositeddownstream of the spring were collected (Sa-1 and Sa-2). Two samples of the sand exposureat the west end of the site were also collected near Sta. 2+40 of the L-200 alignment (Sa-3 andSa-4) at about 1 and 2 m above the curb or about El. 45.5 and 46.5 m (Photos 6 and 7). A sandsample was also collected opposite Sta. 2+50 (Sa-5) about 2 to 3 m below the original groundsurface as shown in Photos 7 and 8. Sa-6 was collected from the soil exposure south of Lot 17(about Sta. 3+40, L-200) as shown in Photo 9.

All six samples were submitted for routine classification and moisture content testing. Gradationanalyses were also conducted to evaluate the particle size distributions. The results are shownon Figures ito 6.

In general, material collected in the deposition zone below the outlet from the spring was fineroverall than any of the 3 sand samples collected at the west end of the site. Figure 7 shows all6 particle distributions and summarizes the pertinent gradation parameters. Based on thecoefficient of uniformity (Cu), all of the samples have a relatively uniform particle size and areclassified as poorly graded. The mean grain size (D50) was about 0.18mm in the depositionzone (Sa-1 and Sa-2) and ranged from about 0.25 to 0.41 mm in the undisturbed sand depositat the west end of the site (Sa-3 to Sa-5).

3.3 Ground Penetrating Radar Survey

A geophysical survey using ground penetrating radar (GPR) was undertaken by TerraprobeGeoscience Corp. (Terraprobe) on June Sand 6, 2012. The GPR survey was conducted alongthe Gale Avenue North (L-100) and Seawatch Lane (L-200) alignments, a limited portion ofCrowston Road and on portions of Lots 27 and 28. The results are presented in Terraprobe’sJune 20, 2012 report (attached). In general, the GPR survey identified several anomalies asshown on Terraprobe’s Figure 1 and our Dwg. 14-214-2-1.

3.4 Land Survey

DOS engaged John Theed Land Surveying Inc. (Theed) to conduct a survey of the locations ofthe sinkhole and spring, patches/repairs in the roadways. and where the water goesunderground in the Crowston Road ditch. A copy of their survey drawing dated June 12, 2012is attached for reference.

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3.5 Airphoto Interpretation

We carried out airphoto interpretation of stereo pairs of photos borrowed from the University ofBritish Columbia for the years 1947, 1976, 1980, 1998 and 2003. DOS provided us singleimage digital files for March 2009 and 2012. We have acquired stereo pairs of digital imagesfrom Integrated Mapping Technologies for March 27 (SRS 7264-59 and -60) and April 5, 2006(SRS 7276-130 and -131) and have also reviewed images on Google Earth for November 1,2004, June 23, 2006, September11, 2009 and July 8, 2010.

The airphotos from 2003 and earlier were reviewed to assess the pre-development siteconditions. In all the images, gullies are visible along (i) Snake Bay Creek at the west end ofthe site. (H) near the centre of the development in line with Lots 10 and 19 and (Hi) at the eastend in line with Crowston Road. When comparing the airphotos, we note that the gulliesgenerally appear to become more distinct with time suggesting some on-going erosionalprocesses.

The 2004 Google Earth image shows the site prior to development in a state similar to the 2003airphotos.

The 2006 images are of the development early in the construction phase. The centre gully ispartially infilled and the L-100 and L-200 roads and some of the rock stack walls appear to beunder construction. Several sinkhole-like features are also visible in the image as shown onPhoto 10. A sedimentation basin is visible near the southeast corner of the site in the vicinity ofthe recent Sta. 5+80, L-200 sinkhole.

A portion of the March 2009 image provided by DOS is reproduced on Photo 11. The photoshows house foundations on Lots 13 to 15, largely completed houses on Lots 19 to 21, andcompleted houses on Lots 25 to 27. The scarp-like feature at the southeast corner of Lot 21 isclearly visible in the image. Scarp-like features and/or signs of recent instability are visible atthe south end of Lot 18 and the north end of Lots 25 and 26. Numerous erosion featuresincluding rills (surficial erosion patterns), localized gullying and springs are visible at severallocations including Lots 1 to 5/6, 9 to 12, 15, 16 to 18 and to the south of the Phase 1development. Significant ground disturbance is visible south of the Sta. 5÷80, L-200 sinkholeon the proposed Lot 29 (Phase 2) and behind Lots 23 to 26 as shown on the photo. A relativelysmall asphalt patch is visible adjacent to Lot 15.

The 2010 Google Earth image shows houses on Lots 19 to 21 and Lots 25 to 27 (Photo 12).House foundations are visible on Lots 13 to 15 and Lot 23. Springs or erosion features arevisible near the toe of the fill on Lots 2 and 4. The asphalt patch adjacent to Lot 15 is visible asis the ground disturbance behind Lots 23 to 26. The scarp-like feature on Lot 21 is visible.

A portion of the March 2012 image provided by DOS is reproduced as Photo 13. The photoshows largely completed houses on Lots 7 and 8, the same house foundations on Lots 13 to 15as seen on the 2009 image1 completed houses on Lots 19 to 21 and Lots 23 to 27. The

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scarp-like feature at the southeast corner of Lot 21 is still clearly visible in the image. While nosigns of recent instability are visible and vegetation has taken hold on most of the undevelopedlots, ercson features including rills, localized gullying and springs are visible at several locationsincluding the fill slope on Lots 1 to 6 and on Lots 9 to 12 as shown, Ground disturbance isvisible south of Lot 18 and behind Lots 23 to 26 as shown. Also visible are the majority of theasphalt patches and repairs shown on Theed’s drawing dated June 12, 2012. Of particularinterest is the patch adjacent to Lot 15 which appears to have quadrupled in size since the 2009image was taken.

3.6 Review of Available Geotechnical Information

In preparation of this letter, we were provided with the information listed in Table 1. Fordiscussion purposes. we will refer to the various documents by the issuer and date. Asdescribed below, geotechnical recommendations for design and construction of thedevelopment were documented in GeoTacTics reports dated September 30, 2004 and April 28,2006. GeoTacTics’ addendum to the April 28, 2006 report was issued on May 9, 2006 toaddress the issue of sinkholes that had developed during site grading work.

On behalf of DOS, TEL completed a geotechnical review of the stability of rock stack retainingwaIls adjacent to Lots 19 to 25 as documented in our report dated December 15, 2008. Our2008 review of the project relied on the above referenced reports to obtain an understanding ofthe site geology and construction history. No further geotechnical investigation was carried outas part of our 2008 review.

The documents described below include those that had information most relevant to developingour interpretation and recommendations.

3.6.1 Golder Associates Ltd. Study

May 1993 Report addressed to DOSThe May 1993 Golder study, completed as part of the Official Community Plan (OCP), classifiesthe site as Development Permit Area 5 (DPA 5), rocky beach front and upland slopes,Category b). natural hazard conditions. The report notes the following:

“The terrain within this Development Permit Area comprises predominantly steep rocky beachfront and upland slopes with a discontinuous surficial blanket or veneer of fine grained orgranular morainal soils or rubbly colluvium over bedrock. In the Snake Bay area, soils depositsare generally thicker and include a sand and gravel veneer of probable marine origin.

The soils are subject to potential shallow instability, small debris landslides and to minor stormwave erosion where they are exposed along the beach front. Creep and shallow instability in thesurficial soils were observed,”

Client Liostone ano Company, Barristers and Solicitors Gate July20 2012File No 14.214.2&-Frle’ bdjtltrThe Shores GeotechnicaF Review.doc Page 7 of 22

The Golder report also notes that:

“Surficial runoff and seepage from perched groundwater tables have contributed to theformat/on of gullies within the thicker surficial soil deposits/n these areas”

The Golder report indicates that, prior to the issuance of a development permit, the potential forslope instability and the impact of the development should be addressed by a registeredprofessional with specific experience in geotechnical engineering and/or engineering geology.The Golder report also provides guidance with respect to geotechnical issues to be addressedincluding cut and fill stability, instability caused by groundwater seepage, erosion potential dueto waves or drainage flows, setback zones, vegetation protection, etc.

3.6.2 Terra Engineering Ltd. Studies

Copies of a Terra Engineering Ltd. (Terra) letter dated October 24, 1988 for the Norbert CraftSubdivision which included the subject property, an appendix dated March 6. 1989 for theSechelt/Snake Bay Retirement Development and a July 23. 1992 report for a proposedresidential subdivision at the north end of Snake Bay Road were provided for our review. Oneof the most significant findings of the Terra documents was that several test pits encountered‘sands in a wet state which resulted in sloughing of’ the test pit walls. Terra also noted that“these wet sands, if exposed, would be very unstable and subject to undermining if left open”and that they are located “in the area of Snake Bay Road down through the proposed Hotelarea to the waters edge.” Terra generally noted that “the majority of the site has good bearingfor single family residential type structures” and that “ground slopes can generally be consideredstable”. Terra provided some preliminary recommendations with regards to cut and fill slopesand indicated that “proper ground slope protection will be required to protect all newly createdslopes from surface erosion and washouts”.

3.6.3 Geotek Designs

Copies of a Geotek Designs (Geotek) letters dated October31 and December 2, 1997 for thesubject property were provided for our review. The letters were addressed to Sea ShoresDevelopment Corp. The two letters are generally very similar in content. One change regardingthe waterfront lots relates to driveway grades wherein the maximum decreases from 20% to15% from October to December. The other significant change is in the December versionwherein Geotek added a “conclusion” section. In this section, Geotek concluded that “the nativesoils and natural slopes of the proposed phase 4 development are presently in a highly stableconfiguration. There are no indications of any threat of landslide.” Geotek also states that “theland can safely be used for the use intended.”

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36.4 GeoTacTics Correspondence

September 30, 2004 Report addressed to ConcordiaThis report presents the results of a site reconnaissance and a preliminary geotechnicalassessment for the subject site and provides geotechnical recommendations for sitedevelopment. The report describes the site conditions in detail including the presence of thesprings on the Lower Slope. GeoTacTics notes that the Lower Slope is experiencing on-goinggradual erosion of the surficial soil and localized shallow sloughing of steeper pitches. Theaverage rate of retreat of the existing slope is estimated to be less than 10 mm per year and it isnoted that this rate would be expected to increase due to increases in rainfall and/or removal ofvegetation cover. The report notes that “slope retreat during a reasonable service life (60 to80 years) of a residential structure would be unlikely to encroach more than I m into the setbackzone.” The report also recommends no tree cutting or clearing in the shoreline environmentalcovenant areas.

The report recommends that site specific measures “should be implemented to deal with theactive spring areas on the Lower Slope” and provides preliminary guidance regarding suchmeasures. Finally, the report indicates that, provided the geotechnical recommendations arefollowed, “the property can be subdivided and safely used for the intended purposes.”

July 27, 2005 Memorandum addressed to ConcordiaThe memorandum describes a July 22 site visit during which heavy seepage was observedexiting the slope along the L-200 (between Sta. 1+20 and 1+50) and associated slope instabilityon Lot 15. The memorandum also indicates that, west of about Lot 25 (Sta. 2+00), activeseepage occurs along the L-100 alignment and that a number of drainage courses havedeveloped that carry the seepage across the alignment.

July 31, 2005 Memorandum addressed to ConcordiaThe memorandum describes a July 27 site visit. The memorandum is silent on seepage andslope instability issues.

August 12, 2005 Memorandum addressed to ConcordiaThe memorandum describes July 31, August 7 and 11 site visits and several on-going issuesincluding a sinkhole that developed at about Sta. 5+20 on the L-200. The sinkhole diameterwas apparently about 20 feet (6 m) and was reported to have been excavated out to a depth of18 feet (5.5 m). We believe that this is likely the sinkhole labelled “E” on GeoTacTics’ Figure 2(attached) of their April 2006 report.

August 27, 2005 Memorandum addressed to ConcordiaThis memorandum describes an August25 site visit and the repairs of the sinkhole at Sta. 5+20of the L-200 which included placement of a layer of mass concrete at the base and placement ofcompacted “glacio-marine sediments” above.

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The memorandum describes on-going challenges and recommends placement of a 3 inch(75 mm) minus rock drainage blanket beneath the round-about area as per Sketch P25-2(attached).

September 17. 2005 Memoranda addressed to Concord/aOne of the two memoranda dated September 17 describes a September 8 site visit and notesthat, as the recommended 3 inch minus rock for the drainage blanket was no longer available,3/4 inch (19 mm) clear crush gravel could be substituted. It also notes that new areas ofseepage have been encountered near Sta. 2+60 of the L-200.

The second memorandum describes the results of a September 15 site visit and a section of theslope above Sta. 2+60 of the L-100 that had slid, The slide was about 20 m in length. Thespring at the toe of the slope was reported to have a flow of 100 to 150 gpm. The memorandumprovides guidance for removal of the slide debris and recommendations for controlling thespring using filter fabric and clear crushed gravel.

September 26, 2005 Memorandum addressed to Concord/aThe memorandum describes a September 25 site visit. The memorandum is silent on seepageand slope instability issues.

October 5, 2005 Memorandum addressed to Concord/aThis memorandum describes a September 30 site visit conducted in the company of MahmoudMahmoud, P.Eng. of Global Earth Solutions Geotech Inc. (GES). Reference is made to a GESsite reconnaissance report but no copy was provided for our review. The purpose of the visitwas to assess tension cracks observed at Sta. 4÷40 of the L-200 and about 40-50 m long onSeptember28 and provide recommendations to address the very large groundwater flows at thetoe of the slope.

The memorandum also describes the large spring at Sta. 3+00 of the L-100 with an estimatedflow of about 200 gpm and indicates that the volume of sand being washed out had increasedsubstantially since formation to the equivalent of about 70 m3 per day.

This memorandum provides recommendations to address the spring and comprised extending abuttress and filter at least 10 m along the toe of the slope at this location and across the entirewidth of the road. The buttress and filter is described as a layer of geogrid placed on native soil.covered with layers of granular fill with nominal particle sizes ranging from 19 mm to 300 mm.Recommendations were provided to extend this buttress and filter to new areas as springsdevelop. The memo also provides recommendations for a drainage blanket to be constructedacross the full width of the road so that the water can be collected and conveyed from the springto the beach.

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October 7, 2005 Memorandum addressed to Concord/aThis memorandum describes October 4 and 7 site visits. The memorandum notes that thetension crack described in the previous memorandum had not significantly changed except thattwo sinkholes had developed along the tension crack at the L-200 level, one at the crest and theother just below. The location’s were not specified by GeoTacTics and are therefore not shownon our drawing. It is inferred that these sinkholes were above the Sta. 3+00 spring on theL-100.

Two other sinkholes were reported. One was on the west site of the drainage course at the eastend of the property and the other near Sta. 2+10 of the L-100. We believe that these two areshown on GeoTacTics’ Figure 2,

October 10, 2005 Letter addressed to Concord/aThis letter was prepared in response to an August 30, 2005 letter from DOS and includes theJuly 27 to October 7, 2005 memoranda.

April 28, 2Q06 Report (including April 30, 2006 Cover Letter) addressed to Concord/aThis report includes test pits from a February 17, 2005 investigation report and provides anupdated estimated average rate of recession of 6 to 12 inches per year. The report alsodescribes the slope instability, springs and sinkholes and provides geotechnicalrecommendations for site development and a supplementary investigation. Figure 2 of thereport shows the geology and approximate locations of 8 sinkholes.

The report indicates that further geotechnical investigation is contemplated and indicates thatpiezometers will be installed.

The report concludes that “provided the site preparation, earthworks and foundationconstruction follow the genera! guidelines outlined above, the property can be safely used forthe intended purposes.” The report also notes that “residences constructed in this subdivisionare expected to be safe against reasonably conceivable geotechnical hazards, including slopeinstability, erosion and flooding” and that “the probability of occurrence of geotechnical hazardsis estimated to be less than 10 percent in 50 years”.

May 9. 2005 Letter addressed to Concord/aThis letter was issued as an addendum to the April 28 report to address the issue of sinkholes.The letter indicates that the majority of the erosion cavities occur in the fine sand layer cappedby glacial till and that the sinkholes have varied in diameter from 100 mm to greater than 6 m.GeoTacTics describes methods used to deal with sinkholes wherein the first involvesexcavation and removal of the entire sinkhole and the second involves cleaning the debris out ofthe sinkhole to expose the neck at the base followed by placement of mass concrete and thencompacted fill. This method is referred to as “plugging the neck’. The letter indicates that bothmethods will continue to be used where sinkholes are encountered. From this we infer that bothmethods have been used on the site to remediate sinkholes.

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June 1, 2007 Memorandum addressed to Concord/aThis memorandum describes a June 1 site visit and the challenges faced with controlling aspring along the storm outfall corridor between Lots 9 and 10.

August 31, 2007 Letter addressed to ConcordiaThis letter describes site visits of July 5. 18, 23, August 2, 3. 16 and 24. In the July inspectionsummary section. the letter describes control of a significant spring on Lot 5 and a sinkhole thathad developed in early June on Lot 29 of the future Phase 2 development. The letter notes that.on July 18. the sinkhole was 35 to 40 feet (11 to 12 m) in diameter and that it had subsided by 6to 8 feet (1.8 to 2.4 m) at its centre. The letter indicates that, on July 23, GeoTacTics observedthe excavation, plugging and filling of the sinkhole. The final extent of the excavated area wasapproximately 10.5 m deep and 12 m in diameter. The letter indicates that “the neck at thebase of the sinkhole, approxImately 1.5 m south of the edge of the L-200, was plugged byplacing several large boulders to create a bridge over the neck of the sinkhole and that theboulders were then capped with about 10 m3 of concrete and backfilled with native glacial till.”The letter also notes that the sinkhole was backfilled to the same elevation as the curb.

In the August inspection summary section, the letter notes deficiencies in the construction ofstacked rock retaining walls adjacent to the L-100 along Lots 24 through 27.

September 5, 2007 Fax addressed to ConcordiaThis fax describes an August 21 site visit for the Lot 26 garage foundations.

November 6, 2007 Faxes addressed to ConcordiaThese three faxes describe October25 and November 6 site visits for the Lots 19, 20 and 21foundation excavations.

January 17, 2009 Fax addressed to ConcordiaThis fax describes a January 14 site visit and several slides on Lot 25 and instability at the southend of Lot 18. Recommendations for mitigation measures were provided.

February 17. 2009 Letter addressed to DOSThis letter is written in response to Urban Systems’ March 3. 2006 memorandum. The letteraddresses geotechnical issues regarding site services. In particular, it notes that the drainageblanket has been placed on Lots 3 to 5 and Lots 9 to 12. The letter also describes the cause ofinstability of stockpiled fill on Lots 1 and 2.

February 25, 2009 Letter addressed to ConcordiaThis letter describes slope instability issues on Lots 1, 9 and 10.

March 7. 2009 addressed to ConcordiaThis letter provides recommendations for lot grading for Lots ito 12.

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June 11, 2009 Fax addressed to Concord/aThis fax describes a June 10 site visit and the progress of site grading on Lots ito 12.

June 17, 2009 Fax addressed to Concord/aThis fax describes June 10, 12 and 16 site visits and the progress of site grading on Lots ito 12and Lots 16 to 18. The fax also expresses concern regarding potential instability issues at Lots18/19 and 21/22. Buttressing and flattening are recommended for Lots 18/19. The fax indicatesthat the stacked rock retaining wall was never completed in the southeast corner of Lot 21 andrecommends, at a minimum, temporary buttressing and flattening of the unprotected area.

June 24, 2009 Fax addressed to WebThis fax describes June 16, 18 and 23 site visits and the progress of site grading on Lots 1 to12. The fax notes that “site grading has satisfactorily buttressed the slope on the northern sideof the L-100, and there is no risk of catastrophic undermining of the road and the servicesburied beneath the road’ adjacent to Lots 3 to 12.

July 21, 2009 Fax addressed to WebThis fax describes July 16 and 21, 2009 site visits and the progress of site grading on Lots ito12 and Lots 16 to 18. The fax notes that “site grading has satisfactorily buttressed the slopa onthe northern side of the L- 100, and there is no risk of catastrophic undermining of the road andthe services buried beneath the road’ adjacent to Lots ito 12. The fax also notes that “Lots 16to 16 have been filled to the final lines and grades required to leave the lots in amaintenance-free condition until construction on the individual lots begins.”

December 18, 2009 Letter addressed to DOSThis letter describes the stack rock retaining walls on Lots 19 to 24 and provides as-builtsketches. In the first paragraph of the second page, the letter notes that Figures 3 to 8 “showthe proposed plan layouts of the stacked rock retaining walls on each of the respectivelocations and the as-built locations of the various tiers of stacked rock wall.” GeoTacTics’ third,fourth and fifth paragraphs and Figures 5 and 6 suggest that the rock stack walls were actuallycompleted on Lots 21 and 22. This does not seem to be consistent with our observations onsite or review of airphotos (see our Figures 11, 12 and 13) and should be clarified withGeoTacTics.

February 2, 2010 Letter addressed to DOSThis letter confirms that temporary site grading of Lots ito 18 has been completed in generalaccordance with GeoTacTics’ recommendations and notes that “there is minimal risk ofcatastrophic undermining of the L-100 and L-200 roads and the services buried beneath theroads.”

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September 27, 2011 Letter addressed to ConcordiaThis letter describes a September 15, 2011 site visit to review the temporary excavated slope atthe southwest corner of the development. The letter notes that ‘no deep-seated instability hasoccurred in the slope since the slope has been excavated’. The letter concludes that the‘overall stability of the excavated slope is satisfactory” but that fragments of rock, gravel andsand will continue to fall and/or roll down”. For the temporary configuration, GeoTacTicsrecommends trimming the upper 0.6 m of the slope and vegetating other areas. For permanentslopes, GeoTacTics recommended flattening slopes to 2H:1V or flatter.

June 5, 2012 Fax addressed to DOSThis fax describes a sinkhole that appeared near the curb near Lot 9 (approximately Sta. 3+10).

3.6,5 Metro Testing Laboratories Inc.

Results of field density, concrete and gradation tests were provided. The August 15, 2007 fielddensity report (attached) provides test results and a sketch for the Lot 29 remediation whichsuggests that the edge of the sinkhole was at least 10 m from the east property line of Lot 29.

A number of field density reports include a marked-up copy of a sediment control plan preparedby GeoTacTics. A copy of Metro’s September 24, 2007 Field Density Report is attached. Theplan shows a sedimentation basin near the intersection of Seawatch Lane and Crowston Road.

3.6.6 Sunco Civil Consulting Ltd.

Limited results of field density tests were provided.

3.6.7 Web Engineering Ltd.

Drawings, letters, faxes and memoranda were provided. Two memoranda dated June 8, 2007addressed to N & B Contracting and Concordia make note of “a sinkhole developing aboveL-200 road’. We infer that this is likely the Lot 29 sinkhole shown in Metro’s field density reportand described in GeoTacTic’s August 31, 2007 letter.

4. ENGINEERING ASSESSMENT

4.1 General

The development has experienced many geotechnical challenges in the form of springs, erosioncavities and sinkholes, slope instability and surface erosion since commencement ofconstruction. In particular, previous reports by others, as well as early reports by GeoTacTics,identified groundwater and the risk of problems where the sand is encountered below thegroundwater table. Below we provide our assessment of the sinkholes and other geotechnicalissues.

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4.2 General Geological Processes

42.1 Geological Process

The sinkholes generally appear to be related to springs and subsurface erosion of the sand atthis site. Springs! cavities and sinkholes are the result of the same geological process and mayalso lead to surface erosion and slope instability. Cavities and sinkholes can be formed eitherdue to piping or internal erosion.

The piping process starts when water exits the ground with sufficient energy (hydraulic gradient)to erode the soil at the ground surface. This erosion of soil at the surface decreases the lengthof the seepage path thus increasing the hydraulic gradient. This results in a continuousretrogressive process of erosion at the exposed face. In some instances, the erosion can causea distinct cavity or pipe. Once initiated, the cavity or pipe concentrates the flow and seepagewhich, in turn, causes the length of the cavity or pipe to increase with ever increasing flows. Asdescribed by Terzaghi, Peck and Mesri (1996), “if a spring is powerful enough to start erosion inthe first place, the erosion will almost certainly become more ser/ous as time goes on, becausethe flow from a given spring increases with the length of the eroded tunnel.” The piping processonly stops when the hydraulic gradient falls to a low enough level. Piping is evident where thedischarge from springs contains silt and sand, and often may be turbid or muddy.

If the pipes are sufficiently shallow and large enough, a sinkhole or sinkholes may form at theground surface when the pipe cavity collapses. This only fills the pipe cavity in the area of thecollapse and the pipe remains open elsewhere. The open pipe may still be susceptible tocollapse resulting in the formation of other sinkholes. The pipe also remains a preferential flowpath and may be the parent of other pipes.

To prevent piping, properly engineered filters can be constructed to prevent soil erosion wherethe water is exiting, or has the potential to exit, the ground. Alternatively, the hydraulic gradientscan be lowered by installing wells or other dewatering measures.

Conversely, sinkholes may also form as a result of internal erosion wherein only the smallestsoil particles are eroded from the soil matrix. Internal erosion generally occurs in soil with awide gradation or a gap gradation wherein the smallest particles of soil can be transported bywater flow past larger particles. Internal erosion is typically a problem in man-made,manufactured soils and mechanically placed soils where segregation can occur. Uniform soils.such as typical beach sand, are not susceptible to internal erosion.

Springs will also contribute to surface erosion leading to slope instability resulting from highgroundwater lev&s associated with the springs, and unstable ground due to the formation ofunderground cavities and sinkhoies.

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4.3 Specific Geotechnical Issues

4.3.1 Spring Locations

The approximate locations of several springs are shown on GeoTacTics’ Figure 2 and our Dwg.14-214-2-1. GeoTacTics reported significant springs on Lots 5 and Lots 9/10, at Sta. 2+60 and3+100 of the L-100 alignment and between Sta. 1+20 and 1+50 of the L+200 alignment.Significant seepage was also noted west of about Lot 24 or Sta. 2+00 of the L-100 alignment.4.3.2 Internal Erosion

We have assessed the potential for internal erosion (the potential for soil particles to move pastone another) of the recently collected soil samples. Using the criteria described in Terzaghi etal. and Kenney and Lau (1985), all of the samples collected are not considered susceptible tointernal erosion. Intuitively we feel that this is reasonable finding given the depositional natureof the deposits and that the materials are relatively uniform.

4.3.3 Erosion Potential of the Sand

The results of TEL’s gradation testing indicate that the native sand is predominantly fine grainedand is relatively uniform. Briaud (2011) classifies fine sand as very high erodibility and mediumsand as high erodibility. Briaud shows that the critical velocity to initiate erosion is relatively lowcompared to other soil types. As such, relatively small exit seepage gradients are required todislodge the sand particles and initiate the piping process. The risk of this behaviour was notedin the Terra reports for this site and Golder OCP study.

4.3.4 Sinkholes

Given the low potential for internal erosion of the soils present at the site, we believe the mostlikely cause of the sinkholes is collapse of piping cavities. Sinkholes have been identified at thelocations shown on GeoTacTics’ Figure 2 and, since April 2006, on Lot 29 and in the vicinity ofLots 19 to 21 as shown on Photo 10 and Dwg. 14-214-2-1. Sinkhole repairs have beendescribed as complete removal and replacement or plugging the neck’ with concrete andplacement of compacted fill above as was done on Lot 29 and at Sta. 5+20 of the L-200. The‘plugging the neck” repair leaves an unfilled cavity downstream of the sinkhole which will still bevulnerable to future collapse. In this instance, we believe that the recent sinkhole at Sta. 5+80,L-200 may be related to the roof collapse of the unfilled cavity left over from the sinkhole repairon Lot 29.

Given that collapse of an existing cavity roof may be responsible for the Sta. 5÷80. L-200sinkhole, this suggests that cavities connected to other sinkholes repaired in the same mannermay also be at risk of collapse. Only one other sinkhole has been clearly identified in theGeoTacTics correspondence as being repaired by ‘plugging the neck’. This suggests that thereis a risk of additional sinkholes occurring along the horizontal erosion cavities situated to the

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north and possibly to the south of the Sta. 5+20 and 5+80/Lot 29 sinkholes and possiblyelsewhere.

While we suspect that the Lot 3 spring and Ste. 5+80 sinkhole are connected, we can not becertain of this. They may in fact be related simply by changes in the groundwater regime. It isinteresting to note that the large spring on LotS and the Lot 29 sinkhole described inGeoTacTics’ August 31, 2007 letter seem to have appeared at about the same time. We areconcerned that significant groundwater flow carrying sand has continued to exit from the Lot 3spring following the sinkhole formation and this suggests that the cavity may still be expandingin size.

All sinkhole repair records should be reviewed in detail to more accurately locate the sinkholesand to determine which repair option was employed at each location.

4.3.5 Filters and Drainage Blankets

Gradation analyses were conducted on several recently collected samples of native soilincluding material collected in the deposition zone below the spring on Lot 3. No samples of thefilters used during construction are available for our assessment. Review of the GeoTacTicscorrespondence indicates that different materials were used for filter construction and suggeststhat construction of the filter/drainage blanket was difficult. In particular, controlling/containing anumber of the springs was generally described as very challenging. Even if it can be shownthat the filter design was adequate to control piping, challenges faced during construction mayhave rendered the filters inadequate or may have allowed erosion cavities to form below orbehind the filter/drainage blanket.

GeoTacTics’ September 15, 2005 memo recommending placement of a filter comprising filterfabric retained by clear crush gravel is likely adequate to prevent further erosion and piping ofthe sand. However, the filter and buttress system using geogrid and granular fill as described inGeoTacTics’ October 5, 2005 memo is not considered an appropriate filter design to preventerosion and piping of the fine sand.

We understand that drainage blankets were used throughout the site, and generally comprised75mm or 19 mm clear crush gravel rock fill placed on native soil, with finer site grading fillplaced on top. We interpret that these drainage blankets are intended to convey water alongthe top of the native soil. It is unclear specifically if these drainage blankets are continuous, andon what types of native soil they were placed. If drainage blankets were placed on the fine sandlayer, there still may be surficial erosion of the fine sand layer at the interface of the drainageblanket and native soil as the fine sand and clear crush are not gradationally compatible. Sincethe 19 mm clear crush is a relatively uniform product, it is not expected to be susceptible tointernal erosion. However, the 75 mm minus rock fill will require testing to assess itssusceptibility to internal erosion and its compatibility with the adjacent materials.

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By inspection, the majority of the asphalt repairs shown on Theed’s drawing and Dwg.14-214-2-1 occur between Sta. 2÷00, L-100 and Sta. 1+50. L-200 where drainageblankets/granular filters were reportedly used during construction. We believe that some of themovement observed at the road surface may be due to fine sand migrating beneath or throughthe drainage blankets/granular filters or possibly related to internal erosion of the drainageblanket/granular filter.

4.4 Crowston Road Ditch

Contour mapping and review of the airphotos suggests that the Crowston Road ditch alignmentmay have been altered during construction. Water in the Crowston Road ditch currentlydisappears into the ground before reaching the culvert inlet. We are uncertain if the water isflowing in the backfill of the former gully or if the water is flowing through a cavity within thenative materials. If the water is flowing within the backfill, the likelihood of formation of a largecavity and sinkhole is relatively small. However, if the water is forming a cavity within the nativematerials, the risk of forming a large cavity, and ultimately a sinkhole, is significant

4.5 Slope Stability

Issues of slope instability have been reported on Lots 1, 2, 9. 10, 15, 18. 19, 20, 21. 22 and 25.Some of the reported instabilities occurred during construction whereas some instancesoccurred on the completed slopes. Furthermore, it appears that spoil material has been placedin the park area at the west end of the site adjacent to the deeply incised Snake Bay Creekravine. Also, either the slope at the southeast corner of Lot 21 has failed or construction wasnever completed. At a minimum, a more detailed slope stability assessment is warranted at thissite to determine if the stockpiled material adjacent to Snake Bay Creek needs to be removedand remedial measures implemented for the south slope of Lot 21.

4.6 Stacked Rock Retaining Walls

We have not revisited the stacked rock retaining walls in detail at this time. However, in ourDecember 15, 2008 report to DOS, we expressed concerns regarding the walls at the north endof Lots 22 through 25 and also the material used to backfill the rock walls. We believe that itwould be prudent to revisit our assessment given the findings of our previous report andobservations since that time.

TEL does not have expertise in safety engineering. However, we believe that fall hazards existat many of the lots including Lots 19 through 28. The requirement for safety rails or fencesshould be assessed.

4.7 Shoreline Recession

GeoTacTics’ September 2004 suggested that shoreline recession would likely be less than 1 mover a 60 to 80 year design life. In the April 2006 report, the yearly rate of recession increased

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from 1 mm to about 150 to 300mm (6 to 12 inches) per year which would be the equivalent of 9to 24 m over a 60 to 80 year design life. If the 2006 estimate is correct, the whole developmentcould be at risk in a relatively short period unless significant shoreline protection measures areundertaken. This should be reviewed in more detail.

5. RECOMMENDATIONS

5.1 General

As noted above, although the current focus of our work is on the sinkholes, the developmenthas experienced many geotechnical challenges since commencement of the work, Below weprovide our interpretation of the risk of other sinkholes forming. potential mitigation options andrecommended supplementary investigation.

5.2 Risk of Sinkhole Reoccurrence

Given that the recent Sta. 580, L-200 sinkhole may be related to the previous repair of thesinkhole on Lot 29 and that at least one other erosion cavity is known to exist at Sta. 5+20 of theL-200. the formation of other sinkholes within the development should be anticipated. If othersinkholes were repaired in the same manner as the Lot 29 sinkhole by “plugging the neck”, thelikelihood of the presence of erosion cavities and sinkholes is even greater. The timing ofsinkhole collapse events is impossible to predict given the available information. However, weexpect that they will occur.

5.3 Mitigation Options

Mitigation of the risk of sinkhole development related to existing erosion cavities would requirethat the existing erosion cavities be properly infilled. However, repair of the erosion cavities isexpected to be challenging as the erosion cavities are expected to be relatively deep anddifficult to detect. While the GPR survey identified a number of anomalies in the field thatshould be investigated in more detail, we are uncertain if these are related to erosion cavities orto other features, Several mitigation options are available to address the erosion cavities andthe risk of sinkhole formation, All mitigation options will require additional geotechnical,hydrogeological and geophysical investigation for detailed assessment and all options carrydifferent levels of risk.

Potential mitigation options for the Sta. 5+80 sinkhole and all sinkholes repaired using the“plugging the neck” approach include complete excavation of the sinkhole and associatederosion cavity and backfilling or possibly grouting. To facilitate this work, temporary dewateringof the sand layer using a series of wells or similar will be required.

Other erosion cavities may still exist or may be at risk of forming. We suspect that the granularfilters and drainage blanket may not be functioning as intended given the performance of theon-site roads, particularly on Gale Avenue North between Lots 24 and 19 and on Seawatch

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Lane adjacent to Lot 15. To mitigate the risk of development of erosion cavities, groundwatermust be intercepted before it can exit through the granular filter. Alternatively, the granular filtershould be reconstructed. The former option would require construction of a permanentdewatering system and the latter a temporary dewatering system while the existing filtermaterials are removed and replaced with properly designed granular filters. We expect thatthese approaches could be potentially quite disruptive and may require temporary support andpossibly relocation of some of the existing services, and possibly homes, during construction ofthe remedial works. These options should be further assessed following completion of asupplementary investigation.

5.4 Slope Stability

As noted in Section 4.5. a more detailed slope stability assessment is warranted at this site todetermine if the stockpile in the park area should be removed and to develop remedialmeasures for the south slope of Lot 21. In the interim, we recommend that a safety fence beinstalled at the south end of Lot 21 adjacent to the scarp. Also, we suggest that hoarding orfencing be installed in the southwest corner of the site adjacent to the near vertical cuts in thesand layer to keep the public away from the vertical slope hazard.

5.5 Stacked Rock Retaining Walls

As noted in Section 4.6, we have not revisited the stacked rock retaining walls in detail at thistime. However in our December 15, 2008 report to DOS, we expressed concerns regarding thewalls at the north end of Lots 22 through 25 and also the material used to backfill the rock walls.Given that slope instability has occurred at the north end of Lots 25 and 26 and the formersinkholes at the south end of Lot 19, north end of Lot 24 and on Lot 21, we believe that it wouldbe prudent to revisit our assessment of the stacked rock retaining walls in the near future.

To mitigate the potential fall hazard, the requirement for safety rails or fences should beassessed for all of the stacked rock retaining walls within the development.

5.6 Shoreline Recession

GeoTacTics predicts significant shoreline recession at this site. We recommend that this beassessed in more detail.

5.7 Supplementary Investigation

We recommend that additional geotechnical. hydrogeological and geophysical investigation beundertaken. A phased approach should be considered to build upon the findings of each of thephases. At a minimum, the investigation should be developed to determine the stratigraphy andhydrogeology of the site in sufficient detail to understand the groundwater flow and how tocontrol it. The investigation shoud include collection of samples of the fine sand and thegranular filter and drainage blanket materials used during construction control seepage. If

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possible, at least one of the erosion cavities should be investigated to determine its size and itsimpact on the surrounding soil.

AdditionalVancouverimaging for

geophysical testing could also be considered. Frontier Geosciences of Northsuggest using a combination of streaming potential and ohmmapper resistivitydetection and delineation of elevated seepage conditions in the soils.

5.8 On-going Inspections

In the interim, we recommend that DOS continue to regularly inspect the roads for signs ofmovement and the slope for springs and that TEL inspect the site intermittently with DOSpersonnel.

6. REFERENCES

Briaud, J.-L. (2011). Bridge scour and levee overtopping. ISSMGE 1st

(https://ceprofs.civil.tamu.edu/briaud/Webinar%2oLecture-23Aug201 1 .pdf).

Kenney, T.C. and Lau, D. (1985). Internal stability of granular filters. Canadian GeotechnicalJournal, 22(2): 215-225.

Terzaghi, K., Peck, RB. and Mesri, G. (1996). Soil Mechanics in Engineering Practice, 3Edition, John Wiley & Sons, 549 pages.

7. CLOSURE

This report has been prepared by Thurber Engineering Ltd. for the exclusive use of the Lidstoneand Company and the District of Sechelt. Any use of the report by third parties, or any relianceon decisions made based on it, are the responsibilities of such third parties. Thurber does notaccept responsibility for damages suffered, if any, by any other party as a result of their use ofthis report

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We trust that this information is sufficient for your needs. Should you require clarification of anyitem or additional information! please contact us at your convenience.

Yours truly,Thurber Engineering Ltd.David Hill, P.Eng.Review Principal

David J. Tara, P.Eng.Project Principal

Attachments:- Statement of Limitations and Conditions (2 sheets)- TEL Table 1(1 sheet)- TEL Photos ito 13(13 sheets)- TEL Figures ito 7 (7 sheets)- TEL Dwg. 14-214-2-i (1 sheet)- Terraprobe Report dated June 15, 2012 (20 sheets)- John Theed Land Surveying Inc. Site Plan dated June 12. 2012 (1 sheet)- GeoTacTics Dwg. No. 2 dated August 2004 (1 sheet)- GeoTacTics Sketch A25-2 (1 sheet)- GeoTacTics Figure 2 dated April 30, 2006 (1 sheet)- GeoTacTics Figure 3 dated April 30, 2006 (1 sheet)- Metro Field Density Report dated August 15, 2007 (2 sheets)- Metro Field Density Report dated September 24, 2007 (4 sheets)

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STATEMENT OF LIMITATIONS AND CONDITIONS

1. STANDARDOFCARE

This study and Report have been prepared in accordance with generally accepted engineering or environmental consultingpractices in this area. No other warranty, expressed or implied, is made.

2. COMPLETE REPORT

All documents, records, data and files, whether electronic or otherwise, generated as part of this assignment are a part of theReport which is of a summary nature and is not intended to stand alone without reference to the instructions given to us by theClient, communications between us and the Client, and to any other reports, writings, proposals or documents prepared by usfor the Client relative to the specific site described herein, all of which constitute the Report.

IN CRDE.R TO PROPERLY UNDERSTAND THE SUGGESTIONS, RECOMMENDATIONS AND OPINIONS EXPRESSEDHEREIN, REFERENCE MUST BE MADE TO THE WHOLE OF THE REPORT. WE CANNOT BE RESPONSIBLE FOR USEBY ANY PARTY OF PORTIONS OF THE REPORT WITHOUT REFERENCE TO THE WHOLE REPORT.

3. BASIS OF REPORT

The Report has been prepared for the specific site, development, design objectives and purposes that were described to us bythe Client. The applicabHity and reliability of any of the findings, recommendations, suggestions, or opinions expressed in thedocument, subject to the limitations provided herein, are only valid to the extent that this Report expressly addressesproposed development, design objectives and purposes, and then only to the extent there has been no material alteration to orvariation from any of the said descriptions provided to us unless we are specifically requested by the Client to review andrevise the Report in light of such alteration or variation or to consider such representations, information and instructions.

4. USE OFTHE REPORT

The information and opinion.s expressed in the Report, or any document forming part of the Report, are for the sole benefit ofthe Cl;ent. NO OTHER PARTY MAY USE OR RELY UPON THE REPORT OR ANY PORTION HEREOZ WITHOUT OURWR’°\ CONSENT AND SUCH USE SHALL BE ON SUCH TERMS AND CONDITIONS AS WE MAY EXPRESS_VAPPROVE, The contents of the Report remain our copyright property. The Client may not give, lend or, sell the Report, orotherwise make the Report, or any portion thereof, available to any person without our prior written permission. Any use whicha third party makes of the Report, are the sole responsibility of such third parties. Unless expressly permitted by us, no personother than the Client s entitled to rely on this Report. We accept no responsibility whatsoever for damages suffered by anythird party resi.:lting from use of the Report without our express written permission.

5. INTERPRETATION OF THE REPORT

a) Nature and Exactness of Soil and Contaminant Description: Classification and identification of soils, rocks, geologicalunits, contaminant materials and quantities have been based on investigations performed in accordance with thestandards set out in Paragraph 1. Classification and identification of these factors are judgmental in nature.Comprehensive sampling and testing programs implemented with the appropriate equipment by experienced personnel,may fail to locate some conditions, All investigations utilizing the standards of Paragraph 1 will involve an inherent riskthat SnrTe conditions will not be detected and all documents or records summarizing such investigations will be based onassumptions of what exists between the actual points sampled. Actual conditions may vary significantly between thepoints investigated and the Client and all other persons making use of such documents or records with our express writtenconsent should be aware of this risk and this report is delivered on the express condition that such risk is accepted by theClient and such other persons Some conditions are subject to change over time and those making use of the Reportshould be aware of this possibility and understand that the Report only presents the conditions at the sampled points atthe time of sampng. Where special concerns exist, or the Client has special considerations or requirements, the Clientshould disclose them so that additional or special nvestiqations may be undertaken which would not otherwise be withinthe scope of investigations made for the purposes of the Report.

b) Reiiance on Provided Information: The evaluation and conclusions contained in the Report have been prepared on thebasis of conditions in evidence at the time of site inspections and on the basis of information provided to us. We haverelied in good faith upon representations, information and instructions provided by the Client and others concerning thesite. Accordingly, we cannot accept responsibility for any deficiency. misstatement or inaccuracy contained in the Reportas a result of misstatements, omissions, misrepresentations, or fraudulent acts of the Client or other persons provicinginformation relied on by us. We are entiUed to rely on such representations, information and instructions and are notrequired to carry out investigations to determine the truth or accuracy of such representations, information andinstructions.

(see over....)

aasTHURBER

INTERPRETATION OF THE REPORT (continued. 4

c) Design Services: The Report may form part of the design and construction documents for information purposes even though itmay have been issued prior to the final design being completed. We should be retained to review the final design, projectplans and documents prior to construction to confirm thatthey are consistent with the intent of the Report. Any differences thatmay exist between the report recommendations anc the final design detailed in the contract documents should be reported tous immediatelyso that we can address potential conflicts.

d) Construction Services: During construction we must be retained to provide fled reviews. Field reviews consist of penlormingsufficient and timely observations of encountered conditions to confirm and document thatthe site conditions do not materiallydiffer from those interpreted conditions considered in the preparation of the report Adequate field reviews are necessary forThurber to provide letters o’assurance, in accordance with the requirements of many regulatory authorities.

6. RISK LIMITATION

Cc’olec’nica o’:uneerna and environmental consulting projects often have the potential to encounter poHutants or hazardoussucs!a “*es and :e potential tocause an accidental release ofthosesubstances. Inconsideration of the provision of the servicesby us, which are for the Client’s benefit, The Client agrees to hoid harmless and to indemnify and defend us and our directors,officers, servants, agenls. employees, workmen and conlractors nerevafier reierred to as the ‘Company”) from and against anyand all claims, losses, damages. demands, disputes, liability and leqal investigative costs of defence, whetherfor personal injuryincluding death, or any other loss whatsoever, regardless of any action or omission on the part of the Company, that resultfrom anaccidental release of pollutants or hazardous substances occurring as a result of carrying out this Project. This indemnificationshall extend to all Claims brought or threatened H. ::its:. the Company under any federal or provincial statute as a result ofconducting work on this Project. In addition to the .‘‘rv .‘: :idemnification, the Client Further agrees not to bring any claims againstthe Company in connection with any of the aforemen:v; c’ causes.

7. SERVICES OF SUBCONSULTANTS AND CONTRACTORS

The conduct of engineering and environmental studies frequently requires hiring the services of individuals and companies withspecial expertise and/or services which we do not provide. We may arrange the hiring of these services as a convenience to ourClients. As these services are forthe Client’s benefit, the Client agrees to hold the Company harmless and to indemnifyand defendus from and against all claims arising through such hirings to the extent that the Client would incur had he hired those servicesdirectly. This includes responsibilityfor paymentforservices rendered and pursuitoldamages forerrors. omissionsor negligenceby those parties in carrying out their work. In particular, these conditions apply to the use of drilling, excavation and laboratorytesting services.

8. CONTROL OF WORK AND JOBSITE SAFETY

We are responsible only forthe activities of ouremployees on the jobsite. The presence of our persc.’ne’ on the site shall not beconstrued in any way to relieve the Client or any contractors on site from their esacr’s’biites for ‘:ite safety. The Clientacknowledges that he, his representatives, contractors or others retain control of the ei’e and that we ever occupy a position ofcontrolc’ e site. The Clientundertakes to inform us of all k,yrdfl..s oondit’ons. orotherre’evantcuxiozions of whcb the Clientisaware. The Client also recognizes that our activities may uncover prev.ous:y unknown hazarcous conditions or materials and thatsuch a discoverymay result in the necessty .. undertake emergency procedures to protectourenpoyees as we!l asthe public atlarge and the environment in general. These on ccc ..‘n may well nvoive additional costs outside of any budgets previouslyagreed to. The Cient agrees to pay us forany expenses incurred as the result of such discoveries and to compensate us throughpay’rer: c’ anditionai fees and expenses fortime spent by us to dealwith the consequences of such d,scoveries. The Clientalsoao-:nv’eceen that in some cases the discovoryof hazardous conditionsand materiaiswill require that certain regulatory bodies beinformed and the Clienragrees thatnotification tosuch bodies by uswill notbea causeof action ordispute

9. INDEPENDENT JUDGEMENTS OF CLIENT

The information, interpretations and conclusions in the Report are based on our interpretation of conditions revealed throughlimited ;rves”raticri conducted within a defined scope of services. We canflot accent resporsiblity for independent concus,orsinterpretations, interpolations and/or decisions of the Client, or others who may acme ir.tc possession of the Report, or any partthereof, which may be based on information contained in the Report. This restriction of liability iou ;des but is not limited todecisions madetodevelop, purchase orsell land.

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(

SIEVE SIZE

100

90

80

H70

FW 50zIL-HZ 40luC-)it

20

10

0

GRAVELGRAIN SIZE IN MILLIMETRES

coarse Fne coarse medium

SAND

IN/A

June 15, 2012

SILT

DJT -

June 18, 2012

Sample Location: See Dwg. 14-214-2-1

Sample:

________

Sample Depth:

Date Sampled:Sampled By:

_______

Date Received:

Date Tested:

Tested By:

Test Method:

_____________________

Specification:

Description:

Comments:

Gravel -. — 0.0%Sand 91.5%Fines 8.5%

Moisture 25.2%Content

D10 0.078June 18-19, 2012

JW

ASTM 0136 and 0117

qC,

LUm

2I

0C)C,

CC

5,

2

5t)

D30

D60

Cu

Cc

Sieve Size Percentinches mm Passing

3 75

1.5 37.5

0.75 19

0.375 9.5#4 4.75 100.0

#8 2.36 100.0

#16 1.18 100.0#30 0.6 99.8

#50 0.3 95.7

0.127

0.197

2.53

1.05

Fine SAND, trace silt (SP-SM).

s’s ‘,‘ e SD S .55 C’ ‘‘C ces’gs’a:ei c5er Jr S ‘SDD’ Do’s: 12e5 a es: ‘c ser;c S osSy 5d DDSS cL ;SCreser:

ay nIerce(ancr. CI c5:’ C’ ‘egs’d,rq Is SD’, ‘‘:o— CD ‘D ace Cr sa:e:’a Sc Iai 5 rc’,eerr g ‘Ie’o’ea:’o be

—a CCC 05 T)jte’ joor reoesI

#100 0.15 36.9

#200 0.075 8.5

THURBER

Thurber Engineering Ltd.#900 - 1281 West Georgia StreetVancouver, BC V6E 3J7Telephone (604) 684-4384Fax: (604) 684-5124

GRAIN SIZE DISTRIBUTIONCLIENT: LIDSTONE AND COMPANYPROJECT: THE SHORES SUBDIVISiONFILE NO.: 14-214-2FIGURE NO. IC

‘CCD

SIEVE SIZE

GRAIN SIZE IN MILLIMETRESGRAVEL I SAND

coarse tine coarse medium tineSILT

See Dwg. 14-214-2-1

2

N/AJune 15, 2012DJT

June 18, 2012June 18-19, 2012

JW

Thurber Engineering Ltd.#900 - 1281 West Georgia StreetVancouver. BC V6E 3J7Telephone: (604) 684-4384Fax: (604) 684-5124

Gravel 0.3%

I(9

Sample Location:

Sample:

Sample Depth:

Date Sampled:

Sampled By:

Date Received:

Date Tested:

Tested By:

a

qC,a,

Uia,

I

N

UC,

z4C,

Sand 95.0%Fines - 4.7%

Moisture 26.2%Content

D10 0.086D30 0.148D60 0.206

Cu 2.39

Cc 1.22

Test Method: ASTM C136 and C117

Specification:

______________________

Description: Fine SAND, trace silt fSP).

Comments:

Sieve Size - Percentinches rum Passing

3 75

1.5 37.5

0.75 19 100.0

0.375 9.5 99.7

#4 4.75 99.7

#8 2.36 99.7

#16 1.18 99.7

#30 0.6 99.4

#50 0.3 94.5

ft .j care 9e e:-e ice or the sea ;-‘a:,d d —:- y 7 S reccel sD’,: re, a :eaVg ,er,ce sq and Use, rot ,es’e,e’t,

ary -r,te’pretar Cr 0 os-ts-vegararg ye aped I.saLUe tsr: a—se o- .narr a e:a :y Er,,-eerer.g neer:-etaso-e yr Ce

rov deC sy Thi’se CpD. reduest

C)

U;

zI4

C1

#100015 30.6

#200 0,075 4.7

THURBER

GRAIN SIZE DISTRIBUTIONCIJENT: LIDSTONE AND COMPANYPROJECT: THE SHORES SUBDIVISIONFILE NO.: 14-214-2FIGURE NO. 2

GRAVELcoarse fine

Description: Rne SAND1 tragçJItS)

Comments:

__GraveIJO.0%

; Sand — 97.3%Fines 2.7%

Moisture 9.0%• Content

The results are for sloe sole LiCe or the designaled Olsen only I his reporl constitutes a lastinq sewine silly ar’d does not representany iirterpretaiori or opinion egorut pig lire tpeolication conrpliance or insleriul suIlabLlity Engineering iprlsropetation will beproroped by Thurber ups),. ‘eqpiest

Telephone: (604) 684-4384Fax, (604) 684-5124

SIEVE SIZE

a:

60

W 50zLLI

wC-)

SANDcoarse medium fine

GRAIN SIZE IN MILLIMETRES

_____

SILT

Sample Location: See Dwg. 14-214-2-1

Sample. 3 —__________

Sample Depth: N/A

Date Sampled: June 15, 2012

Sampled By: DJT — ——

June 18, 2012Date Received:

Date Tested:

Tested By:

Test Method:

Specification:

June 18-19, 2012

Sieve Size Percentinches’ mm Passino

JwASTMC136andC117

I DiG 0.152

D30 0.192

E D60 0.273

1.80

Cc 0.89

PrInsoPtS

0tO

to

IL‘-9

.5

p.,

p.,

CCPtto

, 75

1.5 37.5

0.75, 19

‘0375 9.5

#4 4.75

#8 2.36 100.0

#16 1.18 100.0

#30 0.6 99.4#50 0.3 68.0

#100 0.15 9.0

#200 0.075 2,7

Thurber Engineering Ltd#900 - 1281 West Georgia StreetVancouver, SC V6E 3J7

c_THURBER

GRAIN SIZE DISTRIBUTION‘CLIENT: LIDSTONE AND COMPANY

PROJECT: THE SHORES SUBDIVISIONFILE NO.: 14-214-2FIGURE NO. 3

SIEVE SIZE

F—I(9

>-

a::wzUIzLu(3

Lu0

GRAIN SIZE IN MUJJMETRES

I GRAVEL I SANDSILT

coarse nra coarse medium

Thurber Engineering Ltd.#900 - 1281 West Georgia StreetVancouver, BC V6E 3J7Telephone: (604) 684-4384Fax: (604) 684-5124

Sample Location: See Dwg. 14-214-2-1

N/A

June 15, 2012

DJTJune 18, 2012

Sample. 4

Sample Depth:

___________________

Date Sampled:

___________________

Sampled By:

_________________

Date Received:

_____________________

Date Tested: June 18-19, 2012

Tested By: JW

Test Method: ASTM C136 and C117

Specification:

______________________

Description: Fine SAND, trace silt (SF).

Comments:

Gravel 0.0%

Sand 96.6%Fines 3.4%

Moisture A•t. 10

Content

D10 0.105

D30 0.184

Sieve Size Percentinches mm Passing

3 75

1.5 37.5

0.75 19

0.375 9.5F— t

#4 475

5,cia

aa

0)

C05a—5

2

53

55-C

.5

fl

Us

D60 0.295 i

Cu 2.82

----0--.-,.

#8 2.36;

. #16 1.18 100.0

#30 0.6 99.81 #50 0.3 61.0

#100 0.15 17.1

#200 0.07 3.4rhe results are ft,r the sole use of the designated client only This report constitutes a testing service only and does not represent

any irtierpretatiois or opinion regarding the apectticatiois compliance or rnater,al suitability Engineering interpretation v.,tt be

provided by Thuiber upon request

_____

GRAIN SIZE DISTRIBUTION

THURBER

CLIENT: LIDSTQNE AND COMPANYPROJECT: THE SHORES SUBDIVISION

I FILE NO.: 14-214-2FIGURE NO. 4

____

2

5,

SIEVE SIZE

GRAIN SIZE IN MILLIMETRES

GRAVEL SAND

coarse fine coae medium fineSILT

: I

II(9w

a:tuzLLF—zU.’0ftUi0

See Dwg. 14-214-2-I

5N/A

Junel5,2012

DJT

June 18, 2012

June 18-19, 2012

JW

Sample Location;

Sample:Sample Depth:

Date Sampled:

Sampled By:Date Received:

Date Tested:

Tested By;

Test Method:

Specification:

Description:

Comments:

Gravel 0.1%

Sand 98.8%

Fines 1.0%

Moisture 0I5.7,0

Content

D10 0.206

D30 0.335

D60 0.456

Cu 2.21

Cc 1.20

Sieve Sizeinches mm

3 75

1.5 37.5

0.75 190.375, 9.5

ASTM C136 and C117

PercentPassing

100.0I,Lu

IaIaIa

I

Si

CI

0

rico

SiNLi,

4

13

Medium to fine SAND, trace sUt(S.

#4 4.754 99.9

#8 2.36 99.7 -

#16 1.18 . 993

#30

#S0_L2r 19.1 —

#1000.15 2.3

The results are for the sore use at the designated client only. lbs report constitutes a testing service only and does not represent

any interpretation or opinion regarding the speotication compliance or irraterial suitebility Errgineering Interpretation will be

provided by Thurber upon request

THURBER

#200OO75 1.0

Thurber Engineering Ltd.#900-1281 West Georgia StreetVancouver, BC V6E 3J7Telephone: (604) 684-4384Fax: (604) 684-5124

____

GRAIN SIZE DISTRIBUTIONCLIENT: LIDSTONE AND COMPANYPROJECT: THE SHORES SUBDIVISIONFILE NO.: 14-214-2FIGURE NO. S

SIEVE SIZE

(S(5

CruJ

CrDI

(S

4

4C

Cr

I,

1z4CrC,

GRAIN_SIZE_IN_MILLIMETRESGRAVEL SAND

SILTcoarse fIne coarse medium ne

Sample Location:

Sample:

Sample Depth:

Date Sampled:

Sampled By:

Date Received:

Date Tested:

Tested By:

Test Method:Specification:

See Dwg. 14-214-2-I

6N/A

June 15, 2012DJT

June 18, 2012

June 18-19, 2012

JW

Gravel

Sand

Fines

MoistureContent

1.9%

91.3%

6.8%

12.1%

D10 0.14

D30 0.341

ASTMC136andC117D60 t0.581

-

Cu 4.16

Cc 1.43

Medium to tine SAND. traces of gravel and silt (SP-SM).

-S

Sieve Size Percentnehes mm Passing

3 751.5 37.5

0.75 19 100.0

0.375 9.5 99.4

#4 4.75 98.1

#8 2.36 96.4

#16 1.18 91.4

#30 0.6 61.8

#50 0 3 22.8

IàJ- 10.4Description:

________________________________________________

Comments

________ ___________________________

— resuIs we fs ne Ste ..sesH” S e•G alec c eg 0 y a ‘epct tsr SSI_’e S S tee: ae”-:e C y sia aces : rseserI

r-y nerprelaIct orp 5r esrd.t’c It specIcatci co-c a—ret r-’a c a at. Issliry tIcs erg ‘eT’e.J:lo . beccv ce Dy Tnrbr 95(555:

- #200 :0.075 6.8

THURBER

Thurber Engineering Ltd.#900 - 1281 West Georgia StreetVancouver, BC V6E 3J7Telephone: (604) 684-4384Fax: (604) 684-5124

GRAIN SIZE DISTRIBUTIONCLIENT: LIDSTONE AND COMPANYPROJECT: THE SHORES SUBDIVISIONFILE NO.: 14-214-2FIGURE NO. 6

SlEV SEZE

a,

C0a!

wa,

DI

Cya,

I‘a0

0-(3

(0I

huh — E——i “t’ I.—H__\—__--—— --.-

-----_

----—_ -- Th-_

HEr

GRAIN SIZE IN MILLIMETRES

GRAVEL SAND —1 SILTcoarse fine coarse medium fine

Specimen Identification Gravel (%) Sand (%) Fines (%) MC (%)

• 1, Sa. I N!A 0.0 91.5 8.5 25.2

I 2, Sa. 2 N!A 0.3 95.0 4.7 26.2

A3,Sa.3 NIA 0.0 97.3 2.7 9.0

*-4,Sa.4 N/A 0.0 96.6 3.4 I 4.8

N/Aj 0.1 98.8 1.0 5.7

0] 6, Sa. 6 N/A 1.9 91.3 6.8 12.1

Specimen Identification D100 D60 D50 D30 D1O Cc Cu

• 1, Sa. I N/A 4.75 0.197 0.175 0.127 0.078 1.05 2.53

I 2,Sa. 2 N/A 19 0.206 0.185 0.148_- 0.086 1.22 2.39

A 3, Sa. 3 N!A 2.36 0.273 0.243 — 0.192 - 0.152 0.89 1.80

* 4, Sa. 4 N/A 1.18 0.295 0.252 0.184 0.105 1.09 2.82

0 5, Sa. 5 N/A 9.5 0.456 0.411 0.335 0.206 1.20 2.21— — —- —-

0.581 0.486 0.341 0.14 1.43 4.16

The rastlia a’e cr The aole JUC C U-a do-clod cit on T’,s reI: :tns jies a oa:’ 000-Ce Cr. and 3ao r;: rol000lt 07V rocelauon crir 01 read1 ‘r peztt ta’ 01

to .anze:rra or U- st.(ab ty Srgweerrg rararea’lcn W -l be p’:j de Ca Tr.rtar ..0o1 reo..es

_____

GRAIN SIZE DISTRIBUTIONThurber Engineering Ltd

____________________________ ___________________

900- 1281 West Georgia Street CLIENT: LIDSTONE AND COMPANY

I I Vancouver! BC V6E 3J7 PROJECT: THE SHORES SUBDIVISION

____

Telephone: 604-684-4364

THURBER Fax: 604-684-5124 FILE NO.: 14-214-2

I FIGURE NO. 7

3! #l0 aie #0 #40 #50 #100 #200100

90

soII07Q

eo

w250UI2UiC)

30

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Ground Penetrating Radar Survey

for

Thurber Engineering Ltd.Concordia Homes, Sechelt, BC

Terraprobe Geoscience Corp.

4650A Dawson St.Burnaby, BC V5C 4C3

TeL (604) 291-9391Fax: (604) 648-8118

www.terraprobe.com TGC446 — 20120605N

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I tHHI4probemr I .a&, In fn,d,v rnnsuwç

tcrr.,-nhc 9005C’CflCC corp. tel: 604 2’fl 9391

46SOAdawson St. ‘ax: 604 648 8118burnaby, bc. 1,-mar 9prü:torraprnbc.com

canada, VSC 4C3 web: www.terrapraoe.com

l’rojeci II: IGU 446 - 201 20605NJune 15. 2012.

David J. Iira, M.Sc.A., l’.kng.Principal I C eotech n ical I ngi leer

‘Thurber Engineering ltd.Suite 900, 1281 West Georgia SireetVancouver, B.C. V61i 3J7T. 604 6844384 ext. 118 . 604 684 5124

Attention: Mr. David J. Tara

Re: GPR Survey at Concordia Homes, Gale Ave North, Sechelt, BC

BACKC;RouNL)

Ferraprobe Geoscience Corp. (‘lerraprohe) was commissioned by Ihurber Engineering lid. (‘Ihurber) toundertake a Ground Penetrating Radar (GPR) survey at the (‘oncordia Homes, Phase I, in Gale Ave North,Sechelt, BC.

The objective of the survey was to determine the presence of any possible void or other anomaly beneath thesurface of the road. An anomaly is an urea in the suhsurlhce where the electrical properties are dil’Ibrent thanits surroundings.

The field data collection was conducted on June 5 and June 6, 2012. This report summarizes the technologyoverview. (he survey methodology and the results.

GPR TECHNIQUE

Ground penetrating radar is the general term applied to techniques that employ radio waves to profilestructures and features in the subsurfiwe. Although typically used for ground (soils) applications, (IPR can

he used to identify Features beneath other surfaces. GPR method is based on emission, reflection anddetection of electromagnetic waves. A short pulse of high frequency (10—2600 MHz) electromagnetic energyis produced and transmitted into the ground or other iiedium (i.e. eonerele). The pulse spreads into the

subsurilice materials and is affected by the properties of the surrounding material. Some of the energy is

reflected at the interllice between nialerials of’ dilIbrent dielectric constants. A receiver records 11w rellectedenergy at the surhice. Processed radar data are plotted as surveyed horizontal distance (metres) versus two—

way travel time iii nanoseconds (21) mode). When C PR data are collected in a grid, 31) data processing andinterpretation can be applied.

Terraprobe Geoscience Corp. 4650A Dawson St , Burnaby, B.C.. Canada, V5C 4C3Tel (604) 291 9391. Fax: (604) 648 8118, Vb www terraprobe corn Ernair gpr@terraprobe corn

7

(3 PR Cal) locate both metallic and non—metallic targets. Penetration depth and detectability of targetsdepend on antenna freclLlency, target orientation and the electrical properties of the host material.

ClR FIELI) StJRVEY

A dual frequency (700MHz and 250MHz) (1 P1< systetii by I DX was used for the survey. I )ue to the enormityolthe survey area, the area was divided into 3 different segment. ‘Iheir approximate size of cue!) segment isshown in Table I.Longitudinal lines were collected along the actual road with 0.5 meters apart from each other. ‘l’ransverselines were collected every 5 meters perpendicular to the longitudinal lines. Please note, that Segment #10,#12 and #13 have different line spacing due to the site conditions.

Segment # X max (m) Y max (in)1 46 5.52 55 5.53 25 5.54 110 5.55 100 5.56 100 87 55 88 130 89 120 810 175 811 110 812 20 1713 20 10

Table I Approximate sizes of the surveyed segments. Refer to Figii rc I br location.

I)ATA I’IWCESSIrNC ANI) INTERPRETATION

.nI.nn. mu uu.m.nI Ii

B

(ii ‘FR principle and re tiection pro tiling. A: paths of the three nuiii electromagnetic waves. Ii cori’espondiiig single radar

signal. C: resulting radar plot.

C

Terraprobe Geoscience Corp.. 4650A Dawsan St., Burnaby, BC., Canada, V5C 4C3Tel: (604) 291 9391. Fax. (604) 648 8118. Web w.terraprobe.com. EmaiL [email protected]

3

Data processing was done by the lerraprobe’s propnetary RadArt processing and analysis software package.liie Following processing sleps were carried our

• Thrnporal and 2D spatial filters

• Gain recovery• Amplitude analysis• Time—Depth conversion

The interpretation was done manually by ident i l’ing the areas showing relatively high amplitude response.Please note that the anomalies can he caused by numerous reasons. including hut not limited to: differentelectrical properties in the host materiaL (i.e. different water content. di Flërent minerals), void space.embedded human-made objects (tank, concrete, metal or plastic pipes etc).

GPR REStJLTS

The dual frequency GPR system provided sufficient data quality, although the signal penetration depth waslimited to approximately 3Mm probably due to the soil conditions. Figure I shows the approximate locationof the survey area as well as the approximate location oF the G PR cross sections that are shown in Figure 2to 14.The results can he summnrized as follows:

• There appear to be sonic significant anomalies of di Ft&ent sizes. ‘[he localion of each anomaly ismarked with a red oval on the GPR cross sections in Figure 2 to Figure 14. The depth scale of thecross section is exaggerated. The depth of the anomalies is generally within (lie first 3 meters belowthe surface.

• In Segment #1 (Figure 2)the marked anomaly is located in the area where an existing sinkhole wasdiscovered and filled hack prior to the (iPR survey.

• Segment #9 (Figure II) was surveyed in 11w round about around the island. 11w start location ismarked with pink arrow with the direction ol’ the line both on the layout (Figure 1) and in Figure IIabove the GPR cross section.

• The exact location of each anomaly can be marked off on site if adequate drawings are madeavailable.

CONCLUSIONS AM) RECOMMENI)ATIONS

[he true nature of the marked anomalies cannot he verified based on the (JPR data only. It is recommendedto mark all the anomalies on site and correlate with the existing geological features and with the existingman made structures, i.e. manholes and pipes. Also it is recommended to excavate or drill the anomalies inorder to verify their nattire,If required, a lower frequency (3 PR survey can be carried out in the area to extend the depth and the area of

[lie investigation.

Terraprobe Geoscience Corp 4650A Dawson St., Bumaby, B C. Canada. V5C 4C3Tel (604) 291 9391, Fax. (604)6488118. Web w.terraprobe.corn, EmaU: [email protected]

4

LIMITATIONS

The depth to subsurthee i’eat ures derived from ground penetrating radar surveys arc generally accepted asaccurate to within ten to twenty percent of the true depths to the boundaries. Since the depth scale wascalculated using average velocities it could oniy he used as a guideline and not as accurate measurement.flie results are interpretive iii nature and are considered to be a reasonable accurate presentation of existing

conditions within (lie I un itations of the radar proW ing method.

11w in lbrmation in this report is based upon radar measurements, the in lonuation provided to us and our

interpretation ol’ the data.

Ihank you Ibr choosing Terraprobe. ii you have any gtiestions regarding this report please feel free to

contact us.

Best regards,

Peter lakacsProject Geophysicist, DipI. Geo.i’eiTaprobe Geoscience Corp.

Terraprobe Geoscience Corp., 4650A Dawson S:, Bunaby. B.C., Canada, V5C 4C3Tel: (604) 291 9391, Fax. (604) 648 8118, Web. wvmterraprobe.com, Email: gpr©terraprobe.com

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________________

Tel: (804) 434-9111 Fax: 8O4) 43S-9060

FIELD DENSITYREPORT

CONCORDIA HOMES90 BOX 21027MAPLE RIDGE, BCV2X 1?7

ATTN: RON DAVIS

PROJECTNO. SC—lBCUENT CONCORDIA

PROJECT GALE AVE. NORTH 6603SOILS/CONSULTING

“THE S?!CRES” PH. 1 GALE AVE.NORTH 6600SECHELT

REPORT NO. 4 NO. OF DENSITIES 7 TESTED BY MY DATE TESTED 2307. Jul . 23

CONTftCTOR CONCORDIA HOMES LTD. TIME TESTED &00AREA LOT 29CONSTRUCTION TYPE S INKHOLE REr-IS DIAT ION

DENSITY ) REFERENCEMOISTURE

OVERSIZE1 DRY DENSITYCOMPCIONNUMBER LOCATION

jYPE F? !UMM!

t 1 SEE ATTACHED SKETCH 8.2 5.0 0.3 2085 2:10 99

2 SEE ATTACHED SKETCH 6.B 8.0 I 0.0 2060 2110

3 ATTACHED SKETCH 7.6 9.0 0O 2034 z:o’ 96

4 SEE ATTACHED SKETCH L6 8.0 D.C 2017 21:2

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5 SEE ATTACHED SKETCH 8.2 8.0 3.0 2091 2110

LFIELDMETIIOD Nuclear ASTM 02922 SPECIFIEOCOMPACI1ON 95

I LABORATORYMETHOD Standard ?roctor .STM D698 LOWQENSITtES[NDiCATEDROCK CORRECTION METHOD NoneOVERSIZESGREENS2E Passing 3/4” — 19mm

COMMENTSTEST LOCATION 6 TO BE IE-TESTED. FILL BEYOND SINKHOLE ( SEE SKETCH) TO BEPLACED AND COMPACTED. EX:STING MATERIAL TO BE EMOVRD.

-I

Page 1 of 2 — 2007. Aug.15 METRO TESTING lABORATORIES LTD PER. ..

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Reporting of these test results const,tutes a testing serwce on’. Engmeenng inteipretation or evaluation of test r6’roed only on written request.

TO

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S.

GEOTACTICS MEDIA ENGINEERING LTD.Mailing Address: P.O. Bo 624, Secheit, B.C. ‘JON SADLaboratory: #4-1877 Field Road, Sechelt. B.C.Office: 604.740 0920 Fax: 604.740,0922

rssocannN0RAT0RIES LTD.

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FIELD DENSITY LOCATION SKETCH NO.04

FIELD DENSITY REPORT NO.: 04DATE: AUGUST 2Q07

PROJECT: THE SHORES DEVELOPMENT,TEST LOCATION: LOT 29, PHASE I

6400 N. GALE AVE.

OUR FILE NO.; SC-QO18

NO TE: SKETCH NOT DRAk%Dg TO SC.4L

COMMENTS’

Test Locations are approximate- Tests were conducted on several different lifts. Compaction was monitored throughout

placement at nil,

LOT 29L-200

*5

Neck of Sinkhole

*7

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P.,

METRO TESTING LABORATORIES LTD.SQl Cingh Annu., Bwnaby B.C.. VSJ 4W

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FIELD DENSITYREPORT

TO[CONCORD TA HOMESPG BOX 21327MAPLE RIDGE, BCV2X 1P7

PROjECT N0 Sc— isCLICNT CONCORDIA HOMES

c-c.

ATTN: RON DAVIS

PROJECT GALE AVE. NORTH 6600SOLLS/CONSULTING

“THE SHORES” PH. 1 GALE AVE.NORPH 6600SECHELT

REPORTNO. 15 NO.OFDENSrnES 11 TESTEDOY MY D’QTErESTEO 2007.Sep. 13

CoNTRACTOR BA BLACKTOP TIMETESTED 1OO0jq LiDO, LANE LiDO TO L200CONSTRUCTION TYPE ROAD BASE

LAB MOISTURE DRY DENSITYREFERENCE OVERS4ZE COMPACTLONDENSITY LOCATION AND flELo OPT4UM MATERIAl. FIELD LA8NUMBER

MATERIAL TYPE q knJm kgl,n3

I. SEE ATTACHED SKETCH Proctor 1 3.5 7.0 0.0 2079 2190 951 9MMG RAVEL

2 SEE ATTACHED SKETCH Proctor 1 6.3 7.0 0.0 2084 2190 951. 9MMGRAVEL

3 SEE ATTACHED SKETCH Proctor 1 8.1 7.0 0.0 2089 2190 951 9MMGRAVEL

4 SEE ATTACHED SKETCH Proctor 1 5.7 7.0 0.0 2093 2190 961 9MMGRAVEL

5 SEE AnACHED SKETCH Proctor 1 7.7 7.0 0.0 2109 2190 9619MMGRAVEL

RELDMEThOD Nuclear ASTM D2922 SPECJFIEDCOMPACtION 95Lp.noaD.TORYMfl4oD Standard Proctor ASTM 3698 tOWDEMSITiESINDCATED *

ROCK COMRECTION METHOD NoneO1JERSIZESCREENSIZE Passing 3/4” - 19mm

COMMENTSRETEST. COMPACTION APPROVED.

Page 1 of 3 2007. Sep.24 METROTESIINGt.ASORATORIESLTD. PER.Rao’tfng of theta Intresdis nskftutea a (as ng aeMoo only. Englreedrg nwpre(aion cc evaluation of test rfluS)4ovjtdvCthllen mquL

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FIELD DENsyREPORT

TO[CONCORDIA HOMESP0 BOX 21027MAPLE RIDGE, BCV2X 1P7

PROJECTNO. SC—lBCLIENT CONCORDIA HOMES

c.c.

ATTN: RON DAVIS

PROJECT GALE AVE. NORTH 6600SOILS/CONSULTING

“THE SHORES” PH. 1 GALE AVE.NORTH 6600SECHELT

cowmcron BA BLACKTOP TIME TESTED 10:00AREA L100, LANE LiOG TO L200CO14STRUCTIO4 TYPE ROAD BASE

LAB j MOISTUREOVERSIZE

CRY DENSITYREFERENCE COMPAa,onD€NSITY LOCATION AN!) FIELD OPTIMUM MATERL4L FIELD LABNUMAERMATERIAL TYPE kgfm3 kgkn3

6 SEE ATTACHED SKETCH Proctor 1 7.4 7.0 0.0 2117 2190 9719MMGRAVEL

7 SEE ATTACHED SKETCH Proctor 1 5.8 7.0 0.0 2119 2190 971 9MMGRAVEL

8 SEE ATTACHED SKETCH Proctor 2. 5.2 7.0 0.0 2131 2190 971 9MMGRAVEL

9 SEE ATTACHED SKETCL-1 Proctor 1 5.0 7.0 0.0 2158 2190 991 9MMGRAVEL

10 SEE ATTACHED SKETCH Proctor 1 4.1 7.0 0.0 2117 2190 9719MMGRAVE:

naowmoo Nuclear ASTM 02922 SPECIFIEDCOMPACTION 95I.ASORATORYMrHOD Standard Proctor ASTM D698 LOWDEHSITIE$INDICATED *

ROCK CORRECT)ON METHOD NoneOVERSIZESCREENSIZE Passing 3/411

— 19mm

COMMENTSRETEST. COMPACTION APPROVED.

Page 2of 3 2007.Sep.24 METROTESTINGLABDRATORIESLTDPER.Repodlng of these lest resulle eanshiutes a testing service only. Engm.snng nrpretaUon evaluetfon of test resA gtov4ed4ionwnten request.

R.pon £l.m SOt.fl Rgsltc c ae.o rr.v Laonfses. D.snab .1

REPORT ND. 15 NO. OF DENSITiES 11 TESTED BY MY DATETESTED 2007.Sep.13

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To(1CONCORDXA HOMES

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ATTN: RON DAVIS

PROJEGr GALE AVE. NORTH 6600SOILS/CONSULTING

“THE SHORES’ PH. 1 GALE AVE.NORTFf 6600SECHELT

REPORT NO. 15 NO. OF DENSITiES 11 TESTED BY MY DATETESTED 2007.Sep.13

CONTRACTOR BA BLACKTOP11100, LANE LiOG TO L200

OONSTRVC11ONTVPE ROAD BASE

DENNUMBER

Nuclear ASTM D2922 SPECIFIEDCOMPACTTON 95LABORATORYPEIKDO Standard Proctor ASTM 0698 LOWDENSITIESINOICATED *

ROCK CORRECTION METHOD NoneERSIZESCREENSIZE Passing 3/4” — 19mm

COMMENTSRETEST. COMPACTION APPROVED.

Page 3 of 3 2007.Sep.24 MEROTEST3NGLABORATORIESl.TD.PER..Repofling of Thsa st results awislitulas a tectW sepóce aily. Engineering k prflflon or evaluation of testru7kse9øfon*cfttan rew$sL

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