FAQ

1. Is there a large mining and exploration industry in Alaska?

A: Yes, there is a significant mining industry in Alaska. In 2016, Alaska's Mining Industry supplied:

• 4,350 direct mining jobs in Alaska, and a total of 8,600 total direct and indirect jobs attributed to Alaska mining industry.
• $675 million in total direct and indirect payroll.
• $111 million in payments to Alaska Native corporations.
• Mostly year-round jobs for residents of more than 50 communities throughout Alaska, half of which are found in rural Alaska where few other jobs are available.
• Some of Alaska's highest paying jobs with an estimated average annual wage of $108,000, over twice the state average for all sectors of the economy.

(Source: Council of Alaska Producers / Alaska Miners Association, January 2017)

2. What are the benefits of the mining industry to the communities and State of Alaska?

A: The mining industry provides some of Alaska's highest paying jobs with an estimated average annual wage of $108,000, over twice the state average for all sectors of the economy. The types of jobs available in the industry are mostly year-round family wage jobs for residents of more than 50 communities throughout the state, half of which are found in rural Alaska where few other jobs are available.

• $81 million in state government-related revenues through rents, royalties, fees, and taxes.
• $23 million in local government revenue through property taxes and payments in lieu of taxes.

3. Isn't Alaska really cold and snowy? Can you mine in those conditions?

A: All of Alaska’s major mines operate year round. An example is the Kinross Fort Knox open-pit mine located 25 miles northeast of Fairbanks, which has operated continuously for 20 years in terrain and weather very similar to Livengood. The Livengood project is located in an area where annual precipitation totals approximately 15 inches, so deep snowfall is seldom a problem.

4. What are the political risks of mining in Alaska?

A: Alaska has a well-established mine permitting system which thoroughly evaluates the impacts associated with major projects. Major mining projects like Fort Knox, Pogo, Red Dog, and Donlin have utilized this effective system and the operating mines have a demonstrated track record of success. Communities like Fairbanks, Juneau and Nome were founded on mining activity and the industry is an important generator of jobs as well as local and state revenue from taxes. In some areas of Alaska, enhanced political risk revolve around environmental issues such as the proximity to sensitive fish habitats or endangered wildlife and the related concerns of the local communities.

5. What are the local communities nearby the Livengood Project site?

A: Fairbanks is the largest community near the Livengood project and is located 70 miles by road to the south. Many Fairbanks residents are either employed or associated with the mining industry. The nearest community to the project site is Minto, located approximately 40 miles to the southwest. The company has strived to keep these and other communities in the region up to date on its project and to maintain open lines of communication on all issues.

6. What are the most important factors affecting the development of the Livengood project?

A: Livengood is a large but low-grade deposit and in order to be viable requires the recovery of gold at a low per-tonne unit cost. The existing highway near the Livengood project is a major positive factor that will reduce initial development costs and project timing. The project has been the site of near continuous placer mining for the last 90 years and mining has been a well-established land use in the area.

7. What is the tax rate for mining companies in Alaska?

A: The Alaska State corporate tax rate varies from 0-9% and the State has a Mining License tax rate on net profits of 7% following after the first 3.5 years of production. Companies are also subject to normal US federal corporate tax rates (35% in Alaska). The State of Alaska also allows $20M of exploration expenditure to be recovered against State taxes.

8. Who owns the land on which the Livengood project is located?

A: The Livengood project is a mixture of State of Alaska mining claims, leased patented and unpatented State and federal mining claims and a large block of ground leased from the Alaska Mental Health Trust. The company pays annual rental and lease option fees and royalties on the land vary from 0-5% and average about 2.5% for the currently defined deposit.

9. When will ITH put Livengood into production?

A: The Livengood project is currently in the engineering optimization phase of study, with work programs underway to optimize the Project, improve its economics and prepare for a permitting decision. Following the results of these studies, the project concept will be developed in consultation with key stakeholders and the permitting process will commence.

In accordance with the guidelines of the Alaska mine permitting regulations, the Company anticipates that an Environmental Impact Assessment would be required, a process that takes approximately four years to complete. If permits are successfully obtained, the project would subsequently enter a 2-3 year construction phase with production start-up to follow.

10. How many jobs will be created and sustained from this project?

A: The Livengood project is currently envisioned to be a high-volume mining operation similar to the Fort Knox mine operating about 50 miles to the southeast, which employees approximately 450 people. The Livengood project is expected to generate approximately 1,000 direct jobs during the construction phase and over 350 direct operational jobs for life of mine, currently assumed to last approximately 23 years.

11. As the Livengood project is a lower grade deposit, what would be the impact of lower gold prices on the project?

A: The Livengood deposit has the characteristics and configuration to allow for high-volume mining and processing, making it highly leveraged to gold prices changes. Based upon the recently completed Pre-Feasibility Study (April 10, 2017 NI 43-101), the Project breaks even at a price of $1,231/oz.

12. I am a new investor and do not understand much mining terminology. Where can I find out more information on the industry lingo?

A: For more information on mining terminology, please see the definitions page.