Abstract: By analyzing all the current incentive financial projects of Canadian local governments for mineral exploration companies, this paper summarizes the eligibility rules and procedural provisions.It illustrates the principle of Mineral Exploration Tax Credits which is universally adopted by Canadian local governments and the specific regulations of each province.It also introduces the particular preferential tax policies used by some Canadian local governments, such as Manitoba’s Off-site Exploration Allowance, Motive Fuel Tax deduction and Sales Tax deduction, Quebec’s Exploration Allowance and Corporation Income Tax Credits.Based on the research of the Canadian local governments’ incentive financial policies and preferential tax policies which are for supporting the development of mineral exploration companies, summarizes the characteristics of the existing policies, such as clear objectives, strong pertinence, benefit a wide range.Some suggestions are provided to Chinese government.The main objects supported by fiscal and taxation policies which help the mineral exploration industry development should be mineral exploration companies.Attention should be paid to the pertinence and effectiveness of policies.Meanwhile, the adaptability and compatibility of policies should be considered.