For General Inquiries:Grant Taibossigai

705 377 5362 ext.228 or grantt@mchigeeng.ca

M.E.R.E. General Partner Inc. P.O. Box 333 53 Highway 551

M’Chigeeng Ont. P0P 1G0 www.mchigeeng.ca

Mother earth renewable energy Project (M.E.R.E)

March 2012M’chigeeng econoMic DeveloPMent UPDate

You probably thought that building two turbines was all we had to do. Well, it’s more complicated than that. Before we can generate, we need to connect to Hydro One’s grid and there are plenty of rules and procedures associated with that.

Our contract to sell power to Ontario comes with the burden of new regulations covering grid connection, which cost a lot and take significant effort to achieve. We understood this going into the project but we did not anticipate the time associated with compliance since this is new territory for everybody in the process. The bottom line is that our little project must operate through a sub-station normally involved with much larger projects instead of a simple pole-mounted switch. You may notice more simple pole-mounted switch equipment at the Providence Bay project because it was developed at an earlier time when these new standards did not exist. By contrast our substation contains a special custom designed metering system, plus several automated switches that allow the grid operator to control our output of energy remotely. And there are three different radio communication systems which allow remote access to the “brain” within the substation. And that explains the little radio tower that we installed next to the sub-station. The tower will be beaming radio signals to the Hydro One transmission station on Goat Island, next to Little Current.

All this infrastructure is expensive and time consuming to build. We were delayed over the winter by weather and the availability of custom-built built switches, a custom-built control cabinet and the radio systems. But finally it’s all coming together and generation is expected to begin in April 2012. Recently there has been teams of specialized engineers at the site making sure that the systems we built are wired up and doing their jobs properly. And more work is ahead involving tests, reports, radio checks, and then Hydro One witnessing the proper functioning of the sub-station, leading up to an Authorization to Connect for the sub-station. At that point history will be made as this is the first Aboriginal owned sub-station in the province, possibly in Canada.

So work goes on as we enter the final stages with as many as five different contractors working on five different components of the Sub Station. Like everyone else the project team is very anxious to see the commissioning stage completed so that we can successfully “energize” the project as the almost final step to creating revenue.

Enercon will arrive shortly after energization of the sub-station to continue their work on commissioning the turbines. We expect this to take only a few weeks

Project Update – March 2012

We’re Building a Substation!!

continued on page 2

Raising top section of turbine tower one

2 Mother earth renewable energy Project (M.E.R.E)

Recommendations are being developed to protect the interests of ratepayers and encourage investments in new clean energy in Ontario. The purpose of the review is to ensure the continued success and sustainability of the FIT program.Consultation has been central to the review process. Between October 31 and December 14, 2011, nearly 2,900 online surveys were completed and over 150 written submissions were received, and the province met with more than 80 stakeholders. This contribution has been invaluable as we move forward in developing changes to the FIT program to ensure its continued success.Participation in the FIT review was an important process for M’Chigeeng. As an leader in the First Nations green energy, M’Chigeeng’s participation was highly valued and informative for Ontario review.The review is intended to address a range of FIT program considerations including, but are not limited to the following:•A careful examination of FIT pricing.•Potential inclusion of new and emerging

technology types.•Assessment of government policies and

tools to ensure that Ontario remains a center of manufacturing excellence and clean energy job creation.

•Consideration of outreach techniques to complement the province’s Renewable Energy Approval (REA) process.

M’Chigeeng was proud to advocate for green energy policies for Ontario, continuation of the FIT strategy and expansion of all Aboriginal Energy Programs and incentives.

While Ontario has been at the forefront of renewable energy development in Canada, political changes and logistical problems have snarled the renewable energy programs, and now it seems, the FIT review is no exception.

Although the review was expected, the industry has criticized the way the review was handled by the government. Many in the Industry assert they have been blindsided by such actions as a retroactive price cap affecting applications in the queue.

With no certainty on the new prices or how long it will take to fix glitches in the system, few people are willing to commit to move forward on renewable energy projects until the backlog of applications is dealt with and potential earnings are clearer. The Renewable Energy Industry eagerly awaits the results of the review expected in April.

Feed In Tariff Review

MERE Wind Project Construction Phase# of local businesses gained employment and/or contracted work 10

# of part time employment positions created 32

# of outside businesses gained employment and/or contracted work 15

Community Elders Benefited# of Elders on-reserve assisted with provision of Fire wood 48

# of part time positions created 8

Project Financing# of funding/financing sources external and internal 5

Total funding accessed $12,852,000

Solar Roof Top Projects # of projects completed and commissioned 3

(Lakeview School, Community Complex & M’Chigeeng Admin Office)

# of part time employment positions created 9

Monthly revenues per 3 projects $900 (average expected)

The Ministry of Energy and the Ontario Power Authority are currently completing the scheduled two year review of the Feed-in-Tariff (FIT). The Review began in October 2011 and is expected to be completed by the end of March 2012.

and then generation will commence. After that we will be dealing with site clean-up, building a sign & interpretation centre, installing security cameras, and installing site illumination. This work will continue over the summer. The next few weeks will continue to be very busy at the site. The project team is now beginning to work on contract finalization the Ontario Power Authority, and term loan finalization with the TD Bank. As community members and workers on the project we can be very proud of our project for a number of important reasons:M’Chigeeng First Nation is the first Aboriginal Renewable Energy Wind Farm project to receive a “Notice to Proceed” under the Ontario Power Authority “Feed in Tariff” Program in Ontario.M’Chigeeng First Nation is the only First Nation Community to own 100% of their Wind Farm project.M’Chigeeng First Nation is the only First Nation Community Project to be located entirely on First Nation community landsM’Chigeeng First Nation is the first to own and operate a sub-station in the province, possibly in Canada.That’s a long list of “firsts”! Probably not enough for the “Guinness Book of World Records” but enough to make us proud of our achievements.

And lastly the Grand Opening Ceremony will be planned for Summer 2012. See you all there!

continued from page 1Enercon worker preparing blade

M’chigeeng econoMic DeveloPMent UPDate 3

The substation that controls the power coming from the wind turbines is monitored constantly by Hydro One using an extremely fast radio connection known as the Protection Link. MERECo has a radio tower that beams signals 12 km to a relay

station at Kagawong and the Kagawong tower in turn beams 42 km to the Manitoulin TS in Little Current. This radio system checks for a continuous connection to the substation every 2 ms, i.e. every two thousandths of a second the radio link is checked and if it is OK the turbines are allowed to continue operating. Another way to think of it is to imagine that the radio link is checked 500 times a second. If the radio link fails the turbines automatically shut down. That is an incredibly quick radio link!

The point of the Protection Link is to enable a safety protocol that allows Hydro One to remove MERE’s 4 MW of generation off their power lines in the event of a major fault such as a line getting shorted to

ground. This protection is needed for any fault condition even as far away as Sudbury, and Hydro One’s control center in Barrie, Ontario is able to identify the condition and take action within two cycles of AC power, about 1/30 of a second. They require very quick radio systems to accomplish this.

Did we say a radio link?? We meant THREE radio links. There are two other radio connections, the first being a cellular radio that allows Hydro One to continuously monitor the devices operating at the substation. This link

allows Hydro One to read the meter remotely as well as the quality of the energy flowing into their grid from the turbines. A cellular link is slower and cheaper to operate compared to the Protection Link but the equipment we are using is high quality and industrial duty rated.

The third radio link is a connection between the Band Office and the substation, to provide internet connection to the turbines. At the substation, there is a fiber network device in the control kiosk that takes the internet service to the turbine over fiber cables, and this is the method by which the Band can monitor the condition and performance of the turbines.

Oh,… and we almost forgot the FOURTH radio, a satellite clock that make sure all substation equipment is operating at the same time. This device is built into the control kiosk.

All this equipment, working for you to make your project more revenue.

We Are Building a Radio Link!

Kagawong Repeater Station

Substation Tower

Hydro One Control Station in Barrie

Band Office Antenna

Raising turbine one blade

Raising rotor and blades-turbine one

4 Mother earth renewable energy Project (M.E.R.E)

Exciting! Exciting times for MERE Co. and the membership of M’Chigeeng First Nation, with the time winding down to the commissioning and ensuing start-up of wind energy production!On behalf of the MERE Co. Board of Directors it gives me great honour to address the membership. MERE Co. has embarked on an ambitious venture beginning with the planning and subsequent construction of the two wind towers overlooking our community. MERE Co. is now entering the final phase prior to the operation of the wind towers and the production of wind energy.Our consultant, Graham Findlay, 3G Energy has provided an update of activities in this

newsletter. Graham has been instrumental in working with MERE Co. staff and Board of Directors in relation to the development of the project to date. Graham Findlay, Grant Taibossigai and Ryan Migwans have worked with numerous contractors and sub-contractors ensuring quality in all aspects.

In reflection, MERE Co. has reached many milestones to date. Most recently the major work involving the erection of the two towers and wind turbines has been completed. They are magnificent innovations that shout out “clean source of energy!” From a cultural perspective, MERE Co., has taken into context the efforts that need to be made by the current generation to best serve the seventh

generation. The development of the alternative source of energy makes us all a little less reliant on fossil-fuel based energy production such as coal, gas and nuclear. In addition, MERE Co. is very enthused of the financial impact the energy production will have on the community of M’Chigeeng for many years. The Commissioning of the turbines and its’ energy production will be completed over the next three weeks. Once commissioned, MERE Co. will engage in the sale of the energy produced to Ontario Power Generation to be distributed through Hydro One.Exciting times indeed! Let’s all share in the excitement. MERE Co. is planning for the Grand Opening of the Wind Towers in

From the office of Robert Beaudin, MERE PresidentSetting up crane for turbine otwo Raising rotor for turbine two

Raising blades for turbine two

5 Mother earth renewable energy Project (M.E.R.E)

Melanie Debassige – Professional Profile

Melanie Debassige, present Executive Director of the Ontario First Nations Economic Developers Association has over 14 years of experience in Aboriginal economic development. She obtained a Diploma in Native Management and Economic Development from Trent University and a Bachelor of Arts from the University of Western Ontario. She also has a certificate in Economic Development from the University of Waterloo and is a certified Professional Aboriginal Economic Developer with the Council for the Advancement of Native Development Officers. Melanie holds the elected position of Councillor with the M’Chigeeng First Nation Chief and Council and has been appointed as a police commissioner with the United Chiefs and Councils of Manitoulin. She also holds a position as Director on the Mother Earth Renewable Energy Board that oversees the for-profit wind turbine business that is solely owned by M’Chigeeng First Nation. Most recently, Melanie completed the Director’s Education Program at the Rotman School of Management and is now a certified corporate director. Melanie is currently completing her Master’s in Business Administration with Cape Breton University and will graduate in May 2012.

Welcoming the Newly Appointed Board Members

June 2012. More information will follow to ensure this is truly a community celebration. M’Chigeeng First Nation is the first First Nation to complete a project of this magnitude without outside investors. This project is owned 100% by the membership of M’Chigeeng First Nation.MERE Co. welcomes two newly appointed members to our Board of Directors. Victor Migwans and Melanie Debassige-Corbiere were appointed in February 2012. Victor and Melanie join MERE Co. with enthusiasm and energy. They bring a wealth of knowledge and experience with them. Welcome!

On behalf of the Board of Directors of MERE Co., it gives me great pleasure to announce the appointment of Grant Taibossigai as MERE Co.’s Project Director. Grant was the successful candidate of the competition for the position of Project Director. Grant has worked with M’Chigeeng First Nation as the Department Manager for the Economic Development Department which included being the interim MERE Co. Project Manager. Grant has been fully involved in the project spanning over 10 years from the pre-feasibility stages to the more recent construction stages. Grant is very familiar with the project and the requirements for future initiatives of MERE Co.

MERE Co. wishes to thank the many contractors and sub-contractors who helped make the completion of the wind towers a reality. Many local contractors, labourers and tradesman were utilized. Many contractors also employed several local band members at different points of the construction phase. Chi miigwech to all and chi miigwech to the M’Chigeeng First Nation membership – the owners of the wind towers!

victor Migwans

Born in 1943 and raised and educated in M’Chigeeng, Victor Migwans has been a reliable and committed leader in the community of many years. Victor is a quiet man and the term “leader” describes less his outgoing character and more his inner strength of calm, resolve and decency.

As a young man he joined the Canadian army and served for three years in the infantry. Leaving the military world in his early twenties he travelled and worked in various industries and then settled into the life of a miner working for Inco underground for 33 ½ years.

As a youth and even in middle age, he has been a keen athlete and outdoorsman, excelling in cross country skiing, jogging and long distance racing. His skills and physical strengths as a miner are still talked about today.

Victor has been active on Band Council on and off since 1970. He has been a steady and level friend of the Band while on Council, giving advice in a low key manner and generally giving support to new initiatives, calming the fears of those who worry about the unknowns ahead for the Band. The MERE wind farm project is one of those projects that he supported over the last 5 years as it traveled through the idea stage to the permitting and design stages and finally to implementation. During those times Victor would listen respectfully to those who were worried about the MERE project and then he would give a brief word counselling the Band to move in this bold and innovation direction.

Victor retired from Inco is 1998 and has been with his wife Molly with whom he raised five children. He adores his many grand children who are now scattered across the country. Today he is a well respected Elder in the M’Chigeeng community.

Victor will be a welcome addition to the MERE Board. We look forward to more of his quiet counsel and advice. Chief Joe Hare and Project Manager Grant

Taibossigai “watching one of the two Turbine Rotors being raised to top of Turbine”

6 Mother earth renewable energy Project (M.E.R.E)

As we continue to pursue additional construction projects for Roof Top Solar projects in the M’Chigeeng community, it is clear that MERE is taking a lead role in this community Renewable Energy initiative. Currently there are three (3) projects in operation and plans for five (5) more within the community (two of which have already received a Micro Fit Contract Offer). Additionally MERE will begin promoting Roof

Top Solar with our neighboring First Nation communities on Manitoulin Island with plans to take on more construction and installation contracts following the Fit/Micro Fit program.

It is clear that renewable energy is a conservation trend that continues to grow and MERE will be looking at ways and means to develop projects for individual community member’s homes. Research and development in this area continues.

grant taibossigai – Community development offiCer of the year

We are proud to report that Grant Taibossigai was the recipient as Economic Development officer of the year Award Winner, at The 18th Cando Annual National Conference. “Nation Building through Economic Development”.In the opening ceremonies, Chief Kim Baird, of Tsawwassen First Nation stated, “Economic Development is a means to an end, and that end is Nation Building… that builds robust, vibrant and healthy communities”. Grant has worked for M’Chigeeng First Nation for the past 33 years as the Economic Development Officer and MERE Wind Farm Interim Project Manager. When asked about his views on Aboriginal economic development, Grant believes that “We are moving and forging ahead with new ideas. First Nations are taking a larger step and doing business outside of the community. The opportunities are there and we need to move on them.” It is apparent that Grant Taibossigai walks the talk, and is a valued and key driver of economic development in the M’Chigeeng First Nation. Grant is certainly deserving of the ED of the Year award, and will surely continue to do excellent and inspiring work in the field of Aboriginal economic development.It is important for Aboriginal Economic developers, like Grant to get the recognition that they deserve for their commitment and dedication to increase the standards of living and prosperity in their communities. Congratulations Grant!

Solar Projects Update

From left to right: Grant Taibossigai, MERE Project Manager, Joe Debassige, Custodian Community Complex, Stacy Debassige, Solar Trainee (Electrical), Wayne Debassige, Custodian Day Care, Mike Debassige, Custodian Lakeview School, Adam Roy, Custodian Lakeview School, Arnold Debassige, Fire Chief MFN, Graham Findlay, Instructor 3G Energy

Chief Joe Hare and Project Manager Grant Taibossigai , MFN workers, Enercon crew, and Eagle West Wind Energy