Teck Resources Limited Suite 3300, 550 Burrard Street Vancouver, B.C. Canada V6C 0B3 Donald R. Lindsay President and Chief Executive Officer +1 604 699 4000 Tel +1 604 699 4744 Fax don.lindsay@teck.com February 23, 2020 The Honourable Jonathan Wilkinson Minister, Environment and Climate Change Canada 200 Sacre-Coeur Blvd, Gatineau, QC, K1A 0H3 RE: Notice of Withdrawal of the Frontier Oil Sands Project Application Canadian Environmental Assessment Registry No. 65505 Dear Minister: I am writing to advise that af ter caref ul consideration Teck has made the dif f icult decision to f ormally withdraw our regulatory application f or the Frontier oil sands project f rom the f ederal environmental assessment process. We are disappointed to have arrived at this point. Teck put f orward a socially and environmentally responsible project that was industry leading and had the potential to create signif icant economic benef its f or Canadians. Frontier has unprecedented support f rom Indigenous communities and was deemed to be in the public interest by a joint f ederal-provincial review panel f ollowing weeks of public hearings and a lengthy regulatory process. Since the original application in 2011 we have, as others in the industry have done, continued to optimize the project to f urther conf irm it is commercially viable. Teck is extremely proud of the work done on this project and the strong relationships that we have f ormed with local governments, labour organizations, scientists, researchers and many other stakeholders, as well as with af f ected Indigenous communities. We believe that our agreements with Indigenous communities on Frontier, and very recently the work undertaken by the Alberta government with Indigenous communities in the region, f orm an important f oundation f or the f uture, and we applaud them f or this milestone achievement. However, global capital markets are changing rapidly and investors and customers are increasingly looking f or jurisdictions to have a f ramework in place that reconciles resource development and climate change, in order to produce the cleanest possible products. This does not yet exist here today and, unf ortunately, the growing debate around this issue has placed Frontier and our company squarely at the nexus of much broader issues that need to be resolved. In that context, it is now evident that there is no constructive path f orward f or the project. Questions about the societal implications of energy development, climate change and Indigenous rights are critically important ones f or Canada, its provinces and Indigenous governments to work through. I want to make clear that we are not merely shying away f rom controversy. The nature of our b usiness dictates that a vocal minority will almost inevitably oppose specific developments. We are prepared to f ace that sort of opposition. Frontier, however, has surf aced a broader debate over climate change and Canada’s role in addressing it. It is our hope that withdrawing f rom the process will allow Canadians to shif t to a larger and more positive discussion about the path f orward. Ultimately, that should take place without a looming regulatory deadline. Resource development has been at the heart of the Canadian economy f or generations. Resource sectors including the Alberta oil sands create jobs; build roads, schools and hospitals; and contribute to a better standard of living f or all Canadians. At the same time, there is an urgent need to reduce glob al carbon emissions and support action on climate change. As a proudly Canadian company f or over 100 years, we know these two priorities do not have to be in conf lict. Our nation is uniquely positioned with abundant natural resources coupled with strong environmental regulations and a deeply engrained culture of social responsibility. We can build on that f oundation and be a global provider of sustainable, climate-smart resources to support the world’s transition to a low carbon f uture. And yes, that can include low-carbon energy produced f rom the Alberta oil sands f rom projects like Frontier, using best-in-class technology, which would displace less environmentally and ethically sound oil sources. At Teck, we believe deeply in the need to address climate change and believe that Canada has an important role to play globally as a responsible supplier of natural resources. We support strong actions to enable the transition to a low carbon f uture. We are also strong supporters of Canada’s action on carbon pricing and other climate policies such as legislated caps f or oil sands emissions. The promise of Canada’s potential will not be realized until governments can reach agreement around how climate policy considerations will be addressed in the context of f uture responsible energy sector development. Without clarity on this critical question, the situation that has f aced Frontier will be f aced by f uture projects and it will be very dif f icult to attract f uture investment, either domestic or f oreign. Teck has not taken this decision lightly. It is our hope that the decision to withdraw will help to create both the space and impetus needed f or this critical discussion to take place f or the benef it of all Canadians. Sincerely, Don Lindsay President and Chief Executive Of f icer Teck Resources Limited 2