A review by the Alberta Serious Incident Response Team (ASIRT) says the 26-year-old man posed a threat when he advanced on the officers with a knife.
Police had responded to a call in Lethbridge last July about a man who was drunk and threatening people in a home.
The review found that he was still holding the knife when two officers went inside the house and wouldn't drop the weapon when told to do so.
He then advanced on the officers and both shot him.
The man, who had recently immigrated to Canada, was pronounced dead in hospital.
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