WATER USE AND WASTE DISPOSAL PERMIT

Pursuant to Article 13 of the Agreement Between the Inuit of the Nunavut Settlement Area and Her Majesty the Queen in Right of Canada, the Nunavut Water Board, hereinafter referred to as the Board, hereby grants to Cogema Resources Inc., authorization to use and dispose of waste in conjunction with exploratory drilling for the Sisson Project subject to the terms and conditions outlined in Federal Land Use Permit # N97C733 and the Kivalliq Inuit Association permit # KE96P070 .

PERMIT NO:	NWB2SIS
PERMITTEE :	Cogema Resources Inc.

P.O. Box 9204,

817-825 45 th Street West,

Saskatoon, SK S7K 3X5

Tel: 306-343-4630 Fax: 306-343-4632
START DATE:	July 29, 1997
COMPLETION DATE:	May 31, 1998
PURPOSE:	Water Use and Waste disposal associated with Exploration Drilling.
LOCATION:	Approximately 80 km west of the Hamlet of Baker Lake.

Kiggavik camp: 64 25' N, 97 40 W

Andrew Lake: 64 20' N, 97 52 W

This permit issued and recorded at Gjoa Haven includes and is subject to the annexed conditions.

Approved by,

Philippe di Pizzo, Executive Director

1.	SCOPE:

1.	Compliance with the terms and conditions of this permit does not absolve the permittee from responsibility for compliance with all applicable Federal, Territorial and Municipal legislation.

2.	This permit is issued subject to the conditions contained herein with respect to the taking of water and the depositing of waste of any type in any waters or in any place under any conditions where such waste or any other waste that results from the deposits of such waste may enter any waters.

2.	CONDITIONS FOR WATER USE AND WASTE DISPOSAL:

1.	No land based drilling is to be done within thirty (30) metres of the high water mark of any water body or watercourse. Drilling wastes from land-based drilling shall be disposed of in a sump such that they do not enter any water body.

2.	With respect to access road construction, pad construction or other earthworks, the deposition of debris or sediment into any water body is prohibited, These materials shall be disposed of above the high water mark in such a fashion that they do not enter the water.

3.	If artesian flow is encountered, drill holes shall be plugged and permanently sealed upon project termination.

4.	The permittee shall not erect camps or store material on the surface ice of streams or lakes except that which is for immediate use .

5.	Disposal of all sewage shall be in a sump located a minimum of thirty (30) metres from the normal high water mark and such that they do not enter any water body.

6.	All spills of oil, fuel, or other deleterious materials shall be reported immediately to the 24-Hour Spill Line at (403) 920-8130.

7.	The permittee shall ensure that any chemicals, fuel or wastes associated with the project do not enter waters frequented by fish. All sumps and fuel caches shall be located a minimum of thirty (30) metres from the normal high water mark and in such a manner that no fuel can enter any such water body.

8.	The NWB shall be notified of any changes in operating plans or conditions associated with this water use activity.

9.	If operating plans change, the Board shall be informed thirty (30) days prior to any such change.

10.	Upon expiration of the authorization, the permittee shall submit to the Nunavut Water Board within thirty (30) days, a summary report of the water use and waste disposal activities, abandonment and restoration of the site, and list of unauthorized spills and follow-up action taken.

At the time of issuance, a copy of this permit is placed on the Water Register in the Nunavut Water Board Head Office in Gjoa Haven, and is available to the public.

Any communication regarding permit NWB2SIS shall be made in writing to the attention of:

Mr. Philippe di Pizzo

Executive Director

Nunavut Water Board

P.O. Box 119,

Gjoa Haven, NT X0E 1J0

(403) 360-6338

Fax: (403)360-6369