2 Orbit G arant 2012 annual rep O rt On behalf of the B oard of Directors I am pleased to present Orbit Garants fscal 2012 Annual Report T he theme of this years report Expanding Our Horizons refects Orbit Garants continuing development as a leading Canadianbased mineral drilling company T hrough our acquisition of Lantec h Drilling in our fscal 2012 second quarter we opened a gateway to the African mineral drilling market est ablished a new operational hub in Atlantic Canada and enhanced our core services with the addition of iron ore and geotec hnical drilling expertise T hese are just three of several import ant initiatives we have undert aken to enhance our service offering build our capacity and broaden our market opportunities Over the past two fscal years Orbit Garant invested an aggregate of 4 48 million in capit al initiatives to support our growth T hese investments were deployed on expanding our drill feet with a tot al of 32 new drill rigs produced by our manufacturing subsidi ary Soudure Royale the construction of a new head offce in V aldOr consolidating all operations in a new expanded facility better suited to our needs the acquisitions of Morris Drilling and Lantec h Drilling whic h cumulatively added another 3 7 drill rigs to the Orbit Garant feet and the acquisition of Advant age Control T ec hnologies whic h provided the computerized drilling control and monitoring sol utions tec hnology we are currently implementing in the Companys feet Orbit Garant has made these investments to ensure we have the cap acity to meet the demand for our services but also and especi ally with the new computerized drilling tec hnology to demonstrate our commitment to be an industry leader W hile Orbit Garant continued its trac k record of consistent revenue growth in fscal 2012 our proft ability was negatively impacted by a decline in drill rig utilization rates in the second half of the fscal year It now appears that we are heading into a period of softening demand as uncert ainty in the fnancial markets has constrained many of Orbit Gar ants junior mining company customers in their efforts to access capit al to sust ain their exploration activities W hile we are monitoring market conditions closely and managing o ur capit al expenditures closely as a result we remain committed as a c ompany to building on our strengths and being well positioned for future opportunities Orbit Garant has gone through a period of rapid growth that has ad ded capacity to our core strengths and given ourselves the abil ity to seek new market opportunities and expand our horizons W e strongly believe we are well positioned to exploit our g reater scale capabilities and opportunities to build value for our st akeholders In the year ahead Orbit Garants senior manag ement will focus on optimizing capacity utilization and increasing productivity in a determ ined effort to improve proft ability W e will continue to pursue strategic growth opportunities One area Orbit Garant intends to be more ag gressive in is building our international business either through organic initiatives or if the conditions are right acquisitions In closing I would like to frstly recognize the enormous efforts of th e entire Orbit Garant team in managing the Companys growth and now consolidating our gains And I also wish to recognize my fellow d irectors Pierre Alex andre Patric k Godin W illiam Gula Jean Y ves Laliberte and Edmund Stuart for their guidance and devoted contri butions in supporting the success of Orbit Garant Y our B oard of Directors is committed to ensuring Orbit Garant ac hieves its potential T hank you for your support Guthrie J Stewart C HAI R MAN O F TH E B O AR D Chairmans message Guthrie J Stewart Chairman of the B oard