ALAMOS GOLD INC - Approval for variance from the Liquid Fuels Handling Code

Liquid Fuels Handling Code (LFHC) Requirements that Would Not be Met:

5.6.1.10.

All bulk plants shall be designed with an oil/water separator, acceptable to the

Ministry of the Environment and Climate Change.

Safety Assessment

Several features and risk mitigation measures exist to ensure that the refuelling of the mobile

tankers can be performed safely without an oil-water separator. These features are outlined below:

1. During fueling the operator remains within approximately 2 meters of the fuel connection and

emergency stop device. This allows for an immediate operator response in the event of a concern. Even in the unlikely event of a component failure, operator response will be very rapid to avoid a significant spill.

2. The refuelling connection is a double dry-break connection so that upon disconnect, the

contents from the truck and the fueling couplings are contained. It is a standard operating

requirement that the operator places a containment pan under the fuel connection during the

connection, fueling process, and disconnection of the truck. Any minor drips or spills during the

connection process will be captured.

3. Fuel tanker overfill prevention will be ensured using a Scully Intellitrol system which is

interlocked to ensure that the vehicle cannot be inadvertently overfilled. This equipment is the

same as and meets the safety standards of fuel transfer equipment at major distribution terminals.

4. The fuel facility is equipped with numerous global emergency stop devices (situated at all

fueling locations) to immediately stop the flow of ALL fuel in the event of a leak or spill. During

the tanker refueling process, the operator procedure requires that the driver remain in attendance

at the fuel connection point which is within approximately 2 meters of an emergency stop device.

This proximity will help ensure that the equipment can be shut down to prevent any significant spill during the tanker refuelling process.

5. The fuel facility is equipped with a large readily accessible spill containment kit in the

event of a leak or spill. This kit includes spill booms, spill mats, absorbent materials, collection

drums, and spill/drip trays. These materials are stored on site.

6. The bulk fuel tanker will be positioned inside a spill containment “lane” when it is

being loaded. A fuel-resistant liner will be buried below the truck loading area and covered

with a granular cap. The ends of the lane will be closed off with spill containment

socks/booms to provide containment.

TSSA assesses that there is likely to be no environmental impact should this variance be granted.