Magmic Rare Earths is committed to ensuring our project not only incorporates the traditional knowledge of the Deninu Kue First Nation, Northwest Territory Métis Nation, Yellowknives Dene First Nation, and Łutsël K'é Dene First Nation, but materially benefits those communities.

Two signed agreements provide the foundation for Magmic’s ongoing commitment to Indigenous engagement. The Deninu Kue First Nation Accommodation Agreement, signed May 2012, established a Joint Committee comprising Avalon management, DKFN leadership, and mutually agreed third-party representatives to oversee environmental monitoring, employment development, procurement opportunities, cultural heritage protection, and dispute resolution.

The Northwest Territory Métis Nation Participation Agreement, signed February 2014, parallels the DKFN structure and represents three Métis community councils: Hay River Métis Government Council, Fort Resolution Métis Council, and Fort Smith Métis Council. The agreement includes preferential hiring provisions, procurement set- asides for NWTMN-owned enterprises, bursary and scholarship provisions, formal protection of traditional knowledge, equity participation, and explicit non-derogation of Aboriginal rights.

Engagement with Yellowknives Dene First Nation and Lutsel K'e Dene First Nation has been

extensive. Negotiations were conducted with both YKDFN and LKDFN regarding standalone accommodation agreements, however these were not concluded. Both remain engaged partners. The YKDFN provided a signed letter of support in January 2020 regarding the permit assignment for the Nechalacho demonstration project, confirming their continuing engagement with activities at the Thor Lake site.

Beyond the agreements themselves, Magmic has committed significant funding to ensuring Indigenous communities remain engaged and benefit long-term from the project.

• Indigenous Consultation and Engagement, allocates $0.7 million for development consultation frameworks with Deninu Kue First Nation (DKFN), Northwest Territory Métis Nation (NWTMN), Yellowknives Dene First Nation (YKDFN), and Łutsël K'é Dene First Nation (LKDFN). This activity includes facilitation of a minimum of four consultation sessions per community per year, incorporating traditional knowledge, addressing community priorities, and establishing governance structures ensuring Indigenous voice in project decisions.
  
• Capacity Building and Job Training, represents $0.2 million allocated to employment readiness programs targeting at 25 Indigenous participants, with a placement target of at least 10 participants into permanent or long-term project positions. This includes skills training, safety certification, and mentorship structures.
  
• Indigenous Procurement and Business Development, allocates $0.2 million to establish procurement protocols connecting Indigenous-owned businesses to project supply chains, with a target of at least 10 percent of eligible procurement value directed to Indigenous contractors and suppliers.
  
• IDEA Plan Development and Implementation, represents $0.2 million allocated to development and execution of an Indigenous Engagement and Development Agreement establishing community benefit frameworks and targeting at least 40 percent Indigenous workforce participation in construction and permanent operations phases.
  
• Environmental and Social Monitoring, allocates $0.3 million to independent environmental and social monitoring conducted by Indigenous monitors, with a target of at least four monitors engaged in quarterly site visits and annual reporting.

Finally, the infrastructure needed to support the 20 year life of the mine will have lasting economic benefits in the region and for these communities.

• The 66-kilometre all-season road will provide permanent year-round transportation access for surrounding Indigenous communities that have historically depended on seasonal ice roads and air transport, improving community access to healthcare, education, emergency services, and economic opportunities, and reduces the cost of living associated with seasonal supply constraints.
  
• The grid connection to the Taltson hydroelectric system supports the broader territorial energy expansion that is expected to benefit Indigenous communities currently dependent on diesel generation, by contributing anchor demand that strengthens the economic case for territorial hydroelectric investment.

• Construction and operations will generate employment and procurement opportunities accessible to Indigenous workers and businesses through the frameworks established in the accommodation agreements.