Kitsumkalum Agreement-in-Principle 11. British Columbia will: a) ensure that any rents and royalties applicable to Tenured Subsurface Resources that British Columbia would be entitled to receive after the Effective Date if those Tenured Subsurface Resources were owned by British Columbia, and any interest earned on those rents and royalties, are paid to Kitsumkalum; and b) retain for administrative purposes any fees, charges or other payments applicable to Subsurface Tenures and Tenured Subsurface Resources under Provincial Law. 12. Kitsumkalum does not have the authority to establish fees, rents, royalties or other charges in relation to Subsurface Tenures, or the exploration, development, extraction or production of Tenured Subsurface Resources. 13. Kitsumkalum Lands will be treated as private lands under Provincial Law relating to Subsurface Resources for the purposes of resolving any access issues and compensation rights associated with any proposed entrance, occupation or use of Kitsumkalum Lands by holders of Subsurface Tenures. For greater certainty, a holder of a Subsurface Tenure must obtain the agreement of the owner of Kitsumkalum Lands before entering, occupying or using an area of Kitsumkalum Lands, and any disagreements may be resolved under Provincial Law relating to access and compensation disputes involving Subsurface Resources. 14. If a Subsurface Tenure forfeits, or is abandoned or surrendered, to British Columbia under Provincial Law, the Tenured Subsurface Resources and Kitsumkalum Lands will no longer be subject to that Subsurface Tenure. Page 46 of 140

Select target paragraph3