Summary

Cabin Ridge Holdings Limited and Cabin Ridge Project Limited announced that they have commenced legal proceedings against the Government of Alberta in the Court of Queen’s Bench of Alberta.

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STATEMENT OF FACTS RELIED ON:

Introduction

1. Cabin Ridge Project Limited ("Cabin Ridge") and Cabin Ridge Holdings Limited ("CRHL'') bring this claim for damages against Her Majesty the Queen in right of Alberta ("Alberta") for de facto expropriating their freehold mineral rights and coal leases (collectively, the "Cabin Ridge Property") Cabin Ridge also seeks monetary compensation pursuant to the doctrines; of private nuisance and unjust enrichment.

2. Cabin Ridge and CRHL acquired the Cabin Ridge Property and additional property interests (including a pipeline and right of way leading to a railway) (the "Project Assets") for the purpose of developing one of the world's leading metallurgical (steel-making) coal projects, known as the "Cabin Ridge Project". The Cabin Ridge Project would have created around 500 jobs, provided $2 billion or more in taxes and other revenue for the provincial and federal governments, and generated approximately $9 billion in pre-tax profits.

3. To date, Cabin Ridge and CRHL have incurred approximately $56 million to acquire, invest in and take steps to explore and develop the Cabin Ridge Property, Cabin Ridge Project and Project Assets.

4. In February 2021, Alberta announced an immediate ban on mountain top mining on lands that include the Cabin Ridge Property (the "Prohibition"); however, Alberta did not, and has not, defined Mountain top mining.

5. In March 2022, Alberta imposed an indefinite moratorium on coal exploration and development on lands that include the Cabin Ridge Property (the "Indefinite Moratorium").

6. As a result of the Indefinite Moratorium--and, possibly, as a result of the Prohibition-- Cabin Ridge, and CRHL cannot proceed with the Cabin Ridge Project. More fundamentally, Alberta 'has eliminated all reasonable uses of the Cabin Ridge Property for purposes of further developing a metallurgical (steel-making) coal project and otherwise. The effect of Alberta's actions has been to deprive Cabin Ridge and CRHL of the value, and all reasonable uses, of the Cabin Ridge Property, Project Assets and Cabin Ridge Project. As such, Alberta is liable to Cabin Ridge and CRHL for damages in the amount of approximately $3.441 billion, representing the loss of the pre-tax net present value of the Cabin Ridge Property, Project Assets, and Cabin Ridge Project.

7. Mitwithstanding Alberta's immediate, indefinite and complete ban on coal exploration and development on the Cabin Ridge Property, Alberta has not compensated nor offered to compensate Cabin Ridge or CRHL. As a result, Cabin Ridge and CRHL seek damages against Alberta for de facto expropriation or, further or in the alternative, private nuisance and/or unjust enrichment.

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Damage

61. As a result of Alberta's conduct as described above, Cabin Ridge and CRHL have suffered, and continue to suffer, losses and damages, including:

(a) the costs incurred to acquire the Cabin Ridge Property and Project Assets in the amount of $41 million or such other amounts to be proved at the trial of this action;

(b) the costs incurred to explore and develop the Cabin Ridge Property in the amount of $12 million, or such other amounts to be proved at the trial of this action;

(c) costs incurred to support the acquisition, exploration and development of the Cabin Ridge Property and Project Assets in the amount of approximately $3.2 million or such further and other amounts as to be proved at the trial of this action;

(d) loss of net present value of the Cabin Ridge Property in the sum of $3.441 billion, or such other amounts to be proved at the trial of this action; and

(e) such further and other amounts to be proved at the trial of this action.

Place of Trial

62. Cabin Ridge proposes that the trial of this action be held at the Calgary Courts Centre in the City of Calgary, in the Province of Alberta.

63. The trial of this action will take less than 25 days.

REMEDY SOUGHT:

64. Cabin Ridge and CRHL claim against Alberta as follows:

(a) damages in the amount of $3.441 billion, or such other amount to be proved at trial;

(b) alternatively, restitution in the amount of approximately $56 million plus future and contingent remediation costs to be proved at trial;

(c) in the further alternative, damages to Cabin Ridge and CRHL for delaying their ability to develop the Cabin Ridge Property and Cabin Ridge Project;

pre-and post-judgment interest at a rate ordered by the Court or pursuant to the Judgment Interest Act, RSA 2000, c J-1, as amended, and its regulations; the costs of this claim; and,

such further and other relief as Cabin Ridge and CRHL may request and this Honourable Court may deem just.

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