What you should know about DMC Mining Services This booklet has been prepared to help familiarize you with our company’ s policies, procedures, requirements and expectations of our suppliers. W e feel that the relationship between our company , and yours, should be built on trust, fairness and a mutual desire to see both of us grow together . What we expect W e value integrity and honesty . These principles are applied in the way we do business, the way we treat each other , and the people with whom we do business. W e expect the same level of professionalism from our suppliers. Purchasing Objectives The company’ s purchasing objectives are to procure all goods and services in the most efficient and effective manner to meet user requirements. The following checklist outlines our objectives.  Adhere to the highest ethical standards and foster strategic long term supplier relationships.  Continuously source new products, services and equipment to improve value for our clients.  Communicate market conditions, price movements, research and development efforts, and other external procurement factors with all appropriate user groups within DMC Mining Services.  Remain uncompromising on the four primary variables of price, quality , delivery service and source.  Respond in a timely manner to all visitors, inquiries, quotes, and invoices for goods and services received.  Obtain contract terms and conditions of purchase which protect the company’ s business and legal interests. Procurement Steps When goods or services are required, our process of procurement will follow one or more of these steps. RFI (Request for Information) This step is not a request for pricing necessarily but a need for information to help determine the scope of product or service required for an application. This step may not lead to a request for quotation (RFQ) or request for Proposal (RFP). RFP (Request for Proposal) An RFP is used if we have a challenge or requirement which could be resolved by several different methods of which no clear solution is obvious. RFP’ s will allow suppliers to learn about our application and provide a solution, including pricing. This step may develop into more detailed discussions with one supplier which may then lead directly to a purchase order . RFQ (Request for Quotation) The RFQ is considered the formal step prior to awarding a purchase order or contract. In this case the specifications are clearly defined and all bidders, once qualified, will submit a quotation. In most cases, the intention will be to award the purchase order or contract to the lowest bidder . W e reserve the right to award or not award the contract to the lowest bidder , at our sole discretion. Supplier Selection Criteria Our goal is to have the best-in-kind suppliers for every commodity , product or service. These suppliers will share our standards for quality , client commitment and continuous improvement. If at any time a supplier feels that they have not been treated fairly in this selection process, contact the Director of Support Services. The unbiased selection of suppliers is based on the following criteria, of which not all have to be met, depending on the circumstances, and product /services being procured.  Quality & Safety Meets or exceed our expectations? ISO certified? Other certification or quality endorsements? Meets or exceeds MSHA or MASHA requirements? MSDS? Risk assessment?  Product Price Lowest total landed cost? Price stability? Competitiveness?  T otal Life Cycle Cost Cradle to Grave  Delivery and Responsiveness Delivers to expectations? Responds to issues quickly?  T echnology Invests in up to date technology for IT and product improvement?  T echnical Support On site services? A v ailable 24/ 7?  Business Viability Financially stable, secure? Expected to be around in the coming years?  Capacity to Supply Has production capacity? Labour issues? Adequate plant and equipment?  Demonstrates Continuous Improvement Offers cost reduction/avoidance ideas?  Communications Always accessible? Invests in communication technology? Provides accurate documentation?  Education & T r aining Ability and willingness to provide education and training to own staff and our employees?  Interest Understands our business? Has a mindset focused on our goals and objectives?  Return Potential Accepts return of surplus stock? Responds to defective goods or inferior workmanship without delay and with a genuine sense of urgency?  T rust/Attitude Mutual trust? High level of confidence?  Environmental Policy Packaging return policy? Minimizes packaging? Recyclable packaging?  History Has demonstrated the above in previous contractual arrangements? www .dmcmining.com