Wabush Mines, November 27, 2018

November 27, 2018

As previously indicated, on Wednesday, September 5, 2018, cheques were mailed by the Monitor to employee and retiree creditors based on the claims we submitted in the claims process for Wabush’s estate.

Prior to these distributions, we are advised that the Monitor had discussions with the Canada Revenue Agency and Revenue Quebec with respect to withholding tax at source on the employee and retiree distributions. The Monitor provided us, as Representative Counsel, with the results of these discussions on taxation and withholding of employee and retiree distributions.

Distributions for claims based on the termination of life insurance benefits and housing reimbursements were not considered taxable and no withholdings were taken for these distributions. The Monitor paid against these distributions first, therefore if your claim for life insurance and/or housing reimbursement was greater than your overall distribution, no amount was taxable and no amounts were withheld for tax purposes.

All other claims in respect of amounts owing to you were considered taxable and had withholdings in the following amounts:

Individuals with non-Québec Canadian addresses:
- Federal and applicable non-Québec provincial withholdings:
  - 10% on amounts up to and including $5,000;
  - 20% on amounts over $5,000 up to and including $15,000; and
  - 30% on amounts over $15,000.
Individuals with Québec addresses:
- Federal withholdings:
  - 5% on amounts up to and including $5,000;
  - 10% on amounts over $5,000 up to and including $15,000; and
  - 15% on amounts over $15,000.

- Québec withholdings:
  - 15% if the payment does not exceed $5,000; or
  - 20% if the payment is over $5,000.
Individuals with non-Canadian addresses:
- Federal withholdings of 25%.

Please contact us if you have any questions.

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