Figure 1 shows the evaluation area around Tailings Basin Cells 2E/1E. Two areas were evaluated for potential wetland impacts including:

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Barr Engineering Company 4700 West 77th Street Minneapolis, MN 55435-4803 Phone: 952-832-2600 Fax: 952-832-2601 www.barr.com An EEO Employer Minneapolis, MN Hibbing, MN Duluth, MN Ann Arbor, MI Jefferson City, MO Memorandum To: Jon Ahlness, Stuart Arkley From: Mark Jacobson; Cheryl Feigum Subject: Wetland Impacts Tailings Basin Mitigation Alternative, Revised June 2, 2008 Date: June 2, 2008 Project: 23/69/-862-006-001 c: John Borovsky, Jim Scott, ERM The purpose of this memorandum is to respond to information needs identified in the Reasonable Alternatives Screening Table dated 4/21/08 for the mitigation to use LTVSMC taconite tailings for construction of the NorthMet tailings dams. The information need is to characterize the wetland impacts that will result with the implementation of the mitigation. Figure 1 shows the evaluation area around Tailings Basin Cells 2E/1E. Two areas were evaluated for potential wetland impacts including: 1) the Buttress Area this is a 300-ft wide area located along the length of the north side of Tailings Basin Cell 2E and would provide space to construct the buttress required to implement the mitigation; and 2) the East Basin Expansion Area this area is located along the east and northeast side of the tailings basin and would be used to reduce the requirement for LTVSMC coarse tailings required for dam construction (natural terrain used as dam) and to provide an additional source (existing dams in this area) for LTVSMC coarse tailings required to implement the mitigation. The wetland review was conducted using the same methodology as described in RS 14 Wetland Delineation, RS 14 Draft-02 Wetland Delineation, and RS14 Addendum 01 Supplemental Information to the Wetland Delineation Report. Prior to fieldwork, an off-site analysis was conducted to identify potential wetlands using historic aerial photographs, U.S. Geological Survey quadrangle maps, 2-foot topography data, National Wetland Inventory maps, and soil information. The wetland functional assessments also used the same methodology described in RS 14, RS 14 Draft-02, and RS14 Addendum 01. As described in these documents, the methodology for the wetland functional assessments was based on the guidelines in the Minnesota Routine Assessment Method for Evaluating Wetland Functions (MnRAM) and used landscape and wetland characteristics.

To: Jon Ahlness, Stuart Arkley Subject: Wetland Impacts Tailings Basin Mitigation Alternative Date: June 2, 2008 Project: 23/69-862-006-001 Field reviews for wetlands were conducted within the evaluation area on March 21-22, 2007; November 12, 2007; and May 21-22, 2007. Table 1 identifies each wetland, dominant vegetation, hydrology and soil characteristics, and comments from the field review. Table 2 identifies the functional characteristics of each wetland regarding the vegetative diversity/integrity, overall wetland quality, disturbance level, disturbance type, and wetland origin. Table 3 summarizes the wetlands identified within the evaluation area during the field reviews. There are about 36 acres of wetlands identified within the Buttress Area (Tables 2 and 3). Nearly 90 percent of the wetlands are classified as deep marsh (Circular 39 4; Cowardin - ). These wetlands are generally inundated with dead black spruce trees observed throughout the area. Other wetland types present in the area included wet meadow (Circular 39 2; Cowardin - ), shrub carr (Circular 39 6; Cowardin - ), and coniferous swamp (Circular 39 7; Cowardin ). The wetlands in the Buttress Area are low quality wetlands with the dominant vegetation including cattails and phragmites. This area has been historically impacted by seepage from the Tailings Basin. Black spruce is present throughout the area, however, the wetlands are generally inundated and most of the black spruce trees within the wetlands are dead. There are about 19 acres of wetlands identified within the East Basin Expansion Area (Tables 2 and 3). Approximately 56 percent of the wetlands in this area are classified as deep marsh (Circular 39 4; Cowardin - ) and there are generally no trees present within these wetlands. Another 40 percent of the wetlands are classified as wet meadow (Circular 39 2; Cowardin - ), shallow marsh (Circular 39 3; Cowardin - PEMC), and open water (Circular 39 5; Cowardin - PUBF). The remaining wetlands include shrub carr (Circular 39 6; Cowardin ) and excavated open water (Circular 39 5; Cowardin - PUBFx). The wetlands in the East Basin Expansion Area are generally low quality wetlands with the vegetation dominated by cattails located within inundated areas. Past disturbances that have affected the hydrology and vegetative characteristics of the wetlands include beaver dams, culverts, road construction, parking areas, railroad embankments, diversion of flowages, and the development of the Tailings Basin Cells 2E/1E. Wetlands in the evaluation area generally have low vegetative quality and significant hydrological impacts. 2

T27 T25 T26 T30 T23 T24 T28 T17 T19 T21 T18 T20 T29 T16 T31 T15 PEMC T14 T12 PEMC T11 PUBF T13 T10 PUBF T9 Barr Footer: Date: 6/2/2008 2:01:10 PM File: I:\Client\Polymet\Users\cdf\TailingsBasin_Alternative\TailingsBasin_Alt_Fig_1.mxd User: cdf T7 PEMC T8 T6 T4 T5 T1 PUBFx Evaluation Area Wetland Impacted Wetland 500 1,000 T2 PUBFx Figure 1 I 0 T3 2,000 Feet IMPACTED WETLANDS Tailings Basin Area PolyMet Mining Hoyt Lakes, Minnesota

Table 1 Field Review of Wetlands Revised June 2, 2008 NorthMet Mine/PolyMet Mining Project Area Wetland ID Circular 39 Cowardin Eggers & Reed Community Vegetation Hydrology Soil TB Mitigation Alternative - East Basin Expansion Area T1 5 PUBFx open water cattails inundated assumed hydric 1 Y Field Delineated Date(s) of Field Review Comments 3/21/2007 3/22/2007 5/21/2008 cattails on edge, no vegetation in open water area T2 5 PUBFx open water cattails inundated assumed hydric 1 Y 5/21/2008 Cattails and willows on edge with no vegetation in open water area. The wetland complex includes T2 and T3. T3 2 wet meadow grasses, willow saturated to sfc assumed hydric 1 Y 5/21/2008 This area is ditch-like and is likely inundated during higher water periods. The wetland complex includes T2 and T3. T4 2 wet meadow grasses, sedges inundated to saturated assumed hydric 1 / tailings Y 5/21/2008 Water is ponding (6-12 inches) in the depressional area at the toe of the hillslope. The south end of his area is generally dominated by cattails or willows in areas. Other areas are dominated by sedges and grasses. Inundation appears to be more than normal but area should be saturated most of the time given the topographic location. The wetland complex includes T4 and T5. T5 2 wet meadow grasses, sedges inundated to saturated tailings Y 5/21/2008 This area includes the road ditch and flow across to T4. It is inundated with 1-2 inches of water or saturated. The area has some sedges but is generally devoid of vegetation. Soil is fill consisting of tailings. The wetland complex includes T4 and T5. T6 6 shrub carr birch, willows, gasses saturated tailings Y 5/21/2008 Area is located in a low depressional area of the ditch between the road and the toe of the hillslope. T7 3 PEMC shallow marsh cattails inundated to saturated assumed hydric 1 / tailings Y 5/21/2008 This is an open water with small trees/shrubs on the edges in the south and cattails on the edges in the north. At the far south end, where the inundation is less than 1 ft, is dominated by willows, Phragmites, grasses as transition south out of the wetland. T8 2 wet meadow sedges, grasses saturated assumed hydric 2 / south end of ash hill Y 5/21/2008 This is a narrow area where surface water (< 1" deep) is flowing to T7. Some areas are only. This narrow area flows west on the backslope. The origin of the area is near the origin of T9, however, it is not connected to T9. T9 2 wet meadow cattails, sedges,grasses saturated assumed hydric 2 / east side of ash hill Y 5/21/2008 The origin of this stream is at the base of a steep hill with water flowing to the north to T10. On the backslope this is a flowing stream, but as the slope flattens, the stream widens and cattails are dominant. The wetland complex includes T9, T10, T11, T12, and T13. T10 5 PUBF open water cattails, willows inundated assumed hydric 1 Y 5/21/2008 T9 flows into the southeast corner of T10 in area that is inundated with 1-2 ft of water and is dominated by cattails. Willows and cattails surround the remainder of the basin that is inundated with >2 ft of water. The wetland complex includes T9, T10, T1 T12, and T13. T11 5 PUBF open water cattails inundated assumed hydric 1 Y 5/21/2008 T11 is connected to T10 and has similar characteristics. However, the area is becomes narrower to the north as the water flow enters a ditch (T13) which connects to T14. The wetland complex includes T9, T10, T11, T12, and T13. T12 3 PEMC shallow marsh cattails inundated assumed hydric 1 Y 5/21/2008 This is a ditch that connects T11 and T12 with cattails and some open water that is 1-3 ft deep. The wetland complex includes T9, T10, T11, T12, and T13. T13 4 deep marsh cattails inundated assumed hydric 1 Y 5/21/2008 This is a large open water wetland with cattails, some willow and grasses, on the west edge within the evaluation area. The wetland complex includes T9, T10, T11, T12, and T13. T14 4 deep marsh cattails inundated assumed hydric 1 / tailings Y 5/21/2008 5/22/2008 This is a large wetland complex dominated by cattails. There were no dead black spruce trees observed. The area was inundated but depth unknown in center of wetland. T15 3 PEMC shallow marsh cattails inundated assumed hydric 1 Y 5/21/2008 This area was dominated by Phragmites on parts of the south edge with cattails throughout the basin. It is located in a depressional area that appears to be at least partially created. There is an upland area on the east side of T15 that separates T15 from T14. T31 7 coniferous swamp cattails saturated 3 assumed hydric 1 Y 5/21/2008 This area is on the north side of T14 and this area appeared to be somewhat forested compared to T14. TB Mitigation Alternative - Buttress Area T16 4 deep marsh cattails inundated assumed hydric 1 Y 5/22/2008 This area is inundated (>1-2 ft). Vegetation is dominated by cattails, dead black spruce trees with willows and birch on the south edge. Within the evaluation area, the wetland complex includes T17, T16, and T29. T17 7 coniferous swamp cattails saturated 3 assumed hydric 1 Y T18 4 deep marsh cattails inundated assumed hydric 1 Y T19 4 deep marsh cattails inundated assumed hydric 1 Y T20 7 coniferous swamp cedar inundated assumed hydric 1 Y T21 6 shrub carr willow inundated assumed hydric 1 Y T23 7 coniferous swamp black spruce inundated assumed hydric 2 Y T24 7 coniferous swamp black spruce inundated assumed hydric 3 Y T25 6 shrub carr willows, birch inundated assumed hydric 3 Y T26 6 shrub carr willows, birch inundated assumed hydric 3 Y T27 7 coniferous swamp black spruce inundated assumed hydric 3 Y T28 7 coniferous swamp black spruce inundated assumed hydric 4 Y 5/22/2008 This area is appears to be saturated since live black spruce is observed in the area. Within the evaluation area, the wetland complex includes T17, T16, and T29. 5/22/2008 This area is inundated (>1-2 ft). Vegetation is dominated by cattails with dead black spruce trees present. On the south edge is Phragmites with some willows. The east and west edges have some live black spruce trees. 5/22/2008 This area is inundated (>1-2 ft). Vegetation is dominated by cattails with dead black spruce trees present. Within the evaluation area, the wetland complex includes T19 through T28 and T30. 5/22/2008 This area is on the south edge of T19. It is inundated with less than 1 ft of water. Cedar is present in this area. Within the evaluation area, the wetland complex includes T19 through T28 and T30. 5/22/2008 This is an area of willows and other shrubby vegetation located on the south side of T19. Within the evaluation area, the wetland complex includes T19 through T28 and T30. 5/22/2008 There is a small area of black spruce present on the south side of T19. Within the evaluation area, the wetland complex includes T19 through T28 and T30. 5/22/2008 There is a small area of black spruce present on the south side of T19. Within the evaluation area, the wetland complex includes T19 through T28 and T30. 5/22/2008 An area of willows and small birch are present along the ditch with some black spruce. Within the evaluation area, the wetland complex includes T19 through T28 and T30. 5/22/2008 This area is inundated. vegetation includes willows and birch with some black spruce. Within the evaluation area, the wetland complex includes T19 through T28 and T30. 5/22/2008 There is a small area of black spruce present with some black spruce. Within the evaluation area, the wetland complex includes T19 through T28 and T30. 5/22/2008 There is a small area of black spruce present on the south side of T19. Within the evaluation area, the wetland complex includes T19 through T28 and T30. T29 2 wet meadow cattails saturated assumed hydric 1 Y 5/22/2008 This area is saturated. Vegetation is dominated by cattails with willows and birch also present. Within the evaluation area, the wetland complex includes T17, T16, and T29. T30 6 shrub carr cattails inundated assumed hydric 2 Y 5/22/2008 This area is inundated. vegetation includes willows and birch with some black spruce. Within the evaluation area, the wetland complex includes T19 through T28 and T30. 1 The soil was assumed to be hydric because: 1) the vegetation and hydrology met the criteria for a wetland, and 2) the area was depressional and generally located at the toe of the slope. 2 The soil was assumed to be hydric because: 1) the vegetation and hydrology met the criteria for a wetland, and 2) the area was on the backslope and water was flowing through a defined channel. 3 This area was reviewed from the road so hydrology is assumed to be saturated since there were no dead black spruce trees observed. P:\Mpls\23 MN\69\2369862\WorkFiles\WO 008 Corps Wetlands Permit\WetlandDelineationReport\Tailings Basin Mitigation Alternative\TB_MitigationAlt_WetlandImpacts_all_TablesTable 1 1

Table 2 Projected Wetland Impact Detail June 2, 2008 NorthMet Mine/PolyMet Mining Project Area Wetland ID Circular 39 Total Wetland Area Projected Total Wetland Impacts Projected Indirect Wetland Impacts Eggers & Reed Community Vegetative Diversity/ Integrity Overall Wetland Quality Disturbance Level Disturbance Wetland Origin Field Delineated Impact (Direct/Indirect) Expansion Area T1 5 0.17 0.00 open water Low Low High Impounded Natural Y Direct Expansion Area T2 5 0.90 0.00 open water Low Low High Impounded Natural Y Direct Expansion Area T3 2 0.09 0.00 wet meadow Low Low High Ditch Created Y Direct Expansion Area T4 2 1.02 0.00 wet meadow Low Low High Road Fill Created Y Direct Expansion Area T5 2 0.24 0.00 wet meadow Low Low High Road Fill Created Y Direct Expansion Area T6 6 0.07 0.00 shrub carr Low Low High Road Fill Created Y Direct Expansion Area T7 3 0.92 0.00 shallow marsh Low Low High Impounded Created Y Direct Expansion Area T8 2 0.04 0.00 wet meadow Low Low High Seepage Created Y Direct Expansion Area T9 2 0.38 0.00 wet meadow Low Low High Seepage Created Y Direct Expansion Area T10 5 1.48 0.00 open water Low Low High Impounded Natural Y Direct Expansion Area T11 5 0.96 0.00 open water Low Low High Impounded Natural Y Direct Expansion Area T12 3 0.39 0.00 shallow marsh Low Low High Impounded Created Y Direct Expansion Area T13 4 0.60 0.00 deep marsh Low Low High Impounded Natural Y Direct Expansion Area T14 4 10.06 0.00 deep marsh Low Low High Impounded Natural Y Direct Expansion Area T15 3 1.70 0.00 shallow marsh Low Low High Impounded Created Y Direct Expansion Area T31 7 0.03 0.00 coniferous swamp Low Low High Impounded Natural Y Direct Expansion Area 19.05 0.0 TB Mitigation Alternative - Buttress Area T16 4 9.03 0.00 deep marsh Low Low High Ditch Created Y Direct TB Mitigation Alternative - Buttress Area T17 7 1.18 0.00 coniferous swamp Low Low High Impounded Natural Y Direct TB Mitigation Alternative - Buttress Area T18 4 4.07 0.00 deep marsh Low Low High Impounded Natural Y Direct TB Mitigation Alternative - Buttress Area T19 4 18.91 0.00 deep marsh Low Low High Ditch / Impounded Natural Y Direct TB Mitigation Alternative - Buttress Area T20 7 0.45 0.00 coniferous swamp Low Low High Impounded Natural Y Direct TB Mitigation Alternative - Buttress Area T21 6 0.48 0.00 shrub carr Low Low High Impounded Natural Y Direct TB Mitigation Alternative - Buttress Area T23 7 0.22 0.00 coniferous swamp Low Low High Impounded Natural Y Direct TB Mitigation Alternative - Buttress Area T24 7 0.33 0.00 coniferous swamp Low Low High Impounded Natural Y Direct TB Mitigation Alternative - Buttress Area T25 6 0.01 0.00 shrub carr Low Low High Impounded Natural Y Direct TB Mitigation Alternative - Buttress Area T26 6 1.38 0.00 shrub carr Low Low High Impounded Natural Y Direct TB Mitigation Alternative - Buttress Area T27 7 0.03 0.00 coniferous swamp Low Low High Impounded Natural Y Direct TB Mitigation Alternative - Buttress Area T28 6 0.05 0.00 shrub carr Low Low High Impounded Natural Y Direct TB Mitigation Alternative - Buttress Area T29 2 0.00 0.00 wet meadow Low Low High Ditch Created Y Direct TB Mitigation Alternative - Buttress Area T30 6 0.02 0.00 shrub carr Low Low High Impounded Natural Y Direct TB Mitigation Alternative - Buttress Area 36.16 0.0 P:\Mpls\23 MN\69\2369862\WorkFiles\WO 008 Corps Wetlands Permit\WetlandDelineationReport\Tailings Basin Mitigation Alternative\TB_MitigationAlt_WetlandImpacts_all_TablesTable 2 1

Table 3 Summary of Wetlands Revised June 2, 2008 NorthMet Mine/PolyMet Mining Wetland Evaluation Area Circular 39 Cowardin Buttress Area East Basin Expansion Area 2 0.003 1.77 3 PEMC --- 3.01 4 32.01 10.66 5 PUBF, PUBFx --- 3.51 6 1.94 0.07 7 2.21 0.03 TOTAL 36.16 19.05 P:\Mpls\23 MN\69\2369862\WorkFiles\WO 008 Corps Wetlands Permit\WetlandDelineationReport\Tailings Basin Mitigation Alternative\TB_MitigationAlt_WetlandImpacts_all_TablesTable 3