Orbit Garant 2012 annual rep O rt 15 Iron ore Iron ore prices are determined by the global demand for steel as more than 95 of mined iron ore is used for steel making At the time of this report iron ore prices had declined to approximately US95 per tonne from approximately US177 per tonne a year ago primarily as a result of decreased demand in China the worlds largest consumer of iron ore Market participants With higher nonferrous metals prices since the market downturn in late 2008 and early 2009 the mining industry has remained relatively healthy Intermediate and junior companies which were conserving cash during the market downturn in 2009 increased their expl oration spending in 2010 and 2011 as nonferrous metals prices rebounded and access to capital improved However continued global ec onomic uncertainty in 2012 has made it more challenging for intermediates and juniors to raise capital which has resulted i n budget restraint and scaled back exploration programs Rising costs of mineral production are also causing mining companies to review explorati on and capital budgets According to MEG signifcant fnancings US2 million for gol d and base metals projects in the MayJune 2012 period declined more than 21 from the corresponding twomonth period in 2011 OVERALL PERFORMANCE R ESULTS OF OPERATION YEAR ENDED J UNE 30 2012 Fiscal year ended June 30 2012 vs 2011 Variation millions Fiscal 2012 Fiscal 2011 Variation Revenue 1548 1277 271 212 Gross proft 337 285 52 182 Gross margin 218 223 05 Adjusted gross margin 1 273 276 03 EBITDA 2 279 260 19 74 Metres drilled 1489658 1413332 76326 54 Net earnings 104 114 10 95 Net earnings per common shares Basic 031 035 Diluted 030 034 1 Refects gross margin excluding amortization expenses See Reconciliation of nonIF RS fnancial measures 2 EBITDA Earnings before interest taxes depreciation and amortization See Reconci liation of nonIFRS fnancial measures 0 1000 2000 3000 4000 5000 6000 May 10 Jun 10 Jul10 Au g 10 Sep 10 Oc t 10 Nov 10 De c 10 Ja n11 Feb1 1 Mar 11 Ap r11 May 11 Jun 11 Jul11 Au g 11 Sep 11 Oc t 11 Nov 11 De c 11 Ja n12 Feb1 2 Mar 12 Ap r12 May 12 Jun 12 Amount Rais ed US mil 0 75 150 225 Nu mb er of Fi nancings Co mplete d Gold Financings Base Metals Financings Number of Financings Completed S ource Metals Economics Group Industry Monitor Exploration Activity Service s Significant Junior and Intermediate Financings Completed