The Company’s drills are operated by individuals known as ‘‘drillers’’. Drillers most often started as ‘‘helpers’’ by assisting drillers in the operation of drills and thereby developed the skills necessary to operate the drilling machinery. Occasionally, two drillers will share a helper, but the common ratio is one to one. T ypically, a helper is promoted to a driller within one year. Employees are usually paid a base hourly rate plus a performance bonus based on metres drilled. The Company matches or exceeds the pay scale recommended by the CDD A and attempts to structure compensation to reward drillers who exceed productivity expectations. In recent years demand for drillers and helpers within the industry has generally exceeded supply. In response to this shortage the Company approached the school board in V al-d’Or to establish a course to certify students as drillers. The curriculum to obtain a certificate as a driller requires that students complete a practical component by acting as helpers with the Company. The Company’s arrangement with the school board is exclusive and provides it with access to students to recruit for permanent employment upon completion of the certification. In addition, the Company subsidizes the cost of the course and students who elect to work other than with the Company for a prescribed period after completion are require to repay a portion of these costs. The Company expects between 12 and 20 drillers, and between 12 and 20 helpers, will complete the course each year in the near future, and has plans to expand the program to Ontario. Suppliers The Company has numerous sources of supply for the inventory and equipment required to carry on its business. During the twelve month period ended March 31, 2008 (on a pro forma basis), the Company spent approximately $18.1 million on consumables and other inventory items and has more than 500 suppliers, with the top 10 suppliers accounting for approximately 90% of the total dollar value of supplies purchased during such period. The largest and most important items purchased by the Company include drill rods, grease and other lubricants, cylinders, hydraulic pumps, wire cables, drills, hoses, diamond bits and reaming shells. While the Company is vertically integrated through its interest in X-Spec, a producer of many of the consumables that the Company utilizes, X-Spec is not the Company’s largest supplier. The Company’s largest supplier is Boart L ongyear Limited followed by JKS Boyles (A tlas Copco) and Group F ordia Inc. Management is on good terms with all of its suppliers and takes advantage of discounts offered. Health and Safety The Company’s human resource department of six professionals has the ability to evaluate the effectiveness and deployment of the drillers and provide oversight on health and safety issues. This department plays a key role in the Company including recruiting, training and retaining highly skilled, high quality drillers and ensuring that its workers are operating in a safe environment. The Company has implemented a high quality health and safety program with qualified trainers who ensure that all drillers receive the necessary training. In addition, for certain job sites, the Company’s customers impose their own safety policies. The Company’s standard practice is to comply with the higher safety standard, whether its own safety policy or that of its client. Information Systems Orbit Garant has recently made significant investments to upgrade its information and computer systems. The Company has recently integrated the Microsoft Business Solutions Great Plains accounting software, which is a world class accounting system that gives the Company timely financial information. As well, Orbit Garant has built a proprietary computer system which provides, along with its accounting system, timely information relating to the production and efficiency of each drilling project. R egulatory Environment The Company’s operations are subject to a broad range of federal, provincial, state and local laws and regulations governing environmental, transportation and occupational health and safety matters. Management believes that the Company is in material compliance with such laws and regulations with respect to the conduct of its operations. 38