Orbit Garant 2012 annual rep O rt 13 CORPORATE OVERVIE w From its head offce in ValdOr Quebec Orbit Garant with approximately 950 employees manages a feet of 224 drilling rigs that provide surface and underground services to the mining and exploration industry in Canada and internationally In the second quarter of fscal 2012 the Company acquired all the issued and outstanding shares of Lantech Drilling Services I nc Lantech Drilling a company that specializes in exploration and geotechnical services to mining or mineral exploration c ompanies as well as engineering and environmental consultant frms Orbit Garant has an effcient infrastructure and is vertically integrated with its subsidiary Soudure Royale which manufac tures drill rigs for the Company and third parties and so provides a competitive advantage in the provision of drilling services The Company focuses on specialized drilling which refers to those drilling projects that are in remote locations or in the opinion of Management because of the scope complexity or technical nature of the work cannot be completed by small conventional drilling companies The Company has two operating segments Drilling Canada including domestic surface drilling underground drilling and manufac turing Canada and Drilling International The results of operations of Lantech Drilling are included in both operating segments in fs cal 2012 For the twelvemonth period ended June 30 2012 Fiscal 2012 Specialized drilling services which typically generate a higher gross margin than conventional drilling services accounted for approximately 60 of the Companys total revenue Approximately 75 of the Companys revenues were generated by gold related operations and approximately 25 were generated by base metal related and other operations The Companys surface and underground drilling services accounted for approximately 65 and 32 respectively of the Companys revenue The manufacturing division accounted for the remaining 3 of revenue Orbit Garant operates in stable jurisdictions with approximately 85 of the Companys revenues generated in Canada The Company also operates in the USA Mexico and Guyana in the Americas and Liberia and Mauritania in West Africa Approximately 92 of the Companys revenue was in Canadian dollars which provides greater stability Approximately 74 of Orbit Garants customers were major and intermediatesized mining companies with which the Company has contracts up to three years in length b USINESS STRATEGY Orbit Garants goal is to be a leading Canadianbased mineral drilling company while pursuing international opportunities providing both underground and surface drilling for all stages of the mining and minerals business including exploration devel opment and production The Company employs the following business strategies Focus primarily on major and well fnanced intermediate mining and exploration companies operating in stable jurisdictions Provide conventional specialized and geotechnical drilling services Manufacture drills and equipment to ft the needs of customers Maintain a strong commitment to RD and advanced drilling technologies such as the Companys current implementation of computerized and control technologies Provide training courses for the Companys personnel to continuously improve labour effciency and ensure the availability of a skilled labour force Maintain a high level of safety standards in the work environment and promote protection of the environment Establish and maintain longterm relationships with customers Crosssell drilling services to existing customers Expand its bases of operations in strategic regions and Evaluate strategic acquisition opportunities to enhance value for the Companys stakeholders