Press Release

QEC Responds to Photos tabled in the Legislative Assembly and aired on CBC IQALUIT, Nunavut (June 30, 2011) In response to recent photographs and statements published by CBC North that suggest that QEC resources have been used inappropriately for the personal benefit of Peter Mackey, President and CEO of the corporation, Mr. Mackey has prepared the following statement: Firstly, I can confirm that the residence in the photograph is not my personal residence but is in fact a dwelling owned and occupied by a family unrelated to me. Secondly, allegations that suggest the use of corporate resources for personal benefit are unfounded and incorrect. QEC would like to state that when an old power pole is decommissioned, it no longer serves its intended purpose, but still has a useful life. If QEC is not able to store the poles, they must be cut up and trucked to the landfill for disposal, incurring dumping fees in the process. In an effort to dispose of the decommissioned poles in a fiscally and environmentally responsible manner, QEC offers them to individual or community organizations at no charge, for uses such as that depicted in the photographs released by CBC. In this instance, the owners of the property in question installed steel piles and prepared their property at their own expense, to receive a number of these old poles for the purpose of constructing a retaining wall. The poles were dropped off by QEC line crews at no charge to the owners, a project that took approximately 30 to 45 minutes. No work was done by QEC crews on site other than depositing the decommissioned poles. As QEC moves forward with Phase II of the Iqaluit 25 kV Distribution Upgrade this summer and the next, QEC expects to decommission 100 power poles in Iqaluit. QEC is willing to donate and drop off these decommissioned poles to Iqalummiut at no charge, in recognition of the positive use to which the poles are being put. These decommissioned poles must not be used in fresh or salt water or for firewood, as they are specially treated to withstand Nunavuts extreme weather. If you or your organization would be interested in receiving a decommissioned power pole, please call (867) 979-7534. Poles will be supplied as they are available, and as time permits for delivery. Finally, QEC would like to extend an apology to the family who reside in the home depicted in the photographs for any embarrassment they may have suffered as a result of the

misinformation provided to, and published by, CBC media prior to adequately checking their facts. ### For further information contact: Meghan McRae Manager, Corporate Communications Qulliq Energy Corporation (867) 979-7534 mmcrae@npc.nu.ca