11MA Y200821335498  use and incorporate low maintenance components.  Soudure R oyale’s engineered surface drills:  use a patented easy lift rod system;  use and incorporate low maintenance components;  are lighter and easier to move, minimize the environmental impact;  are easy to upgrade for deep-hole drilling; and  can use ‘‘ A ’’ to ‘‘P ’’ sized diamond drill bits. Through its 40% interest in X-Spec, a precision machining operation, the Company also benefits from the assurance of supply for a significant portion of certain consumable products used in its drilling operations at a relatively low price. X-Spec also provides Soudure R oyale with a number of components used to manufacture drills. Description of Drills The Company operates 85 underground drills and 31 surface drills. The following chart sets out the number of drills owned by the Company for the periods indicated. P ro F orma Drills Owned 96 106 116 135 June 30, 2006 (1) 2009E (2) June 30, 2007 Cur rent (as of March 31, 2008) Notes: (1) Includes the drills acquired by the Company by way of its acquisition of Orbit and Drift as if they had been acquired on June 30, 2006. (2) The Board of Directors recently approved the fiscal 2009 capital budget, which plans for the addition of 18 drills to the Company’s existing fleet plus the additional drill committed to be added this fiscal year. The 85 underground drills owned by the Company include 63 electric hydraulic drills and 22 air drills. The Company has 25 hydraulic surface drills, two conventional surface drills and four surface reverse-circulation rigs. The Company’s drill portfolio includes all seven underground drills and three of the four surface drills that the Company committed to add in the current fiscal year. The Company regularly refurbishes its drills every five to seven years in order to continually extend their useful life. The depth to which a rig can drill is primarily a function of its capacity to hold a drill string, which can weigh up to several tons, and its torque power to rotate the drill string in a bore hole. Orbit Garant maintains drills that are able to dig up to a depth of approximately 2,500 metres in order to meet the range of drilling services required by its customers. Orbit Garant refurbishes its drills regularly to keep them in good working order. Orbit Garant’s drills are complimented by ancillary assets such as trucks and light vehicles, mud systems (pumps and tanks) and air compressors. 35