MANAGEMENT’S DISCUS SION AND ANAL YSIS OF FINANCIAL CONDITION AND RESUL TS OF OPER A TIONS Management’s discussion and analysis is a review of the results of operations, the liquidity and the capital resources of the Company. It should be read in conjunction with the financial statements of the Company and the notes thereto included elsewhere in this prospectus. This discussion contains forward — looking statements. Please see ‘‘F orward-L ooking Statements’’ for a discussion of the risks, uncertainties and assumptions relating to these statements. In this discussion and analysis, ‘‘Orbit Garant’’ refers to Orbit Garant Drilling Inc. and its wholly-owned subsidiaries including Soudure R oyale, Drift US A and Drift Mexico (the latter two of which are referred to collectively as ‘‘Drift’’). All annual figures in this discussion and analysis refer to fiscal years which end on June 30. Overview F rom its head office in V al-d’Or, Qu ? ebec, the Company manages a fleet of approximately 116 drilling rigs that are used to service the mining industry in Canada and internationally. The Company has a competitive advantage because of its low cost infrastructure, vertical integration with Soudure R oyale (which manufactures drilling rigs for the Company and third parties) and its focus on specialized drilling. The Company has four operating divisions: underground drilling, domestic surface drilling, international surface drilling and fabrication (Soudure R oyale). The domestic surface, international surface and fabrication divisions were added to the Company as part of the Orbit and Drift (including the assets of Phyl-Don) acquisitions completed on January 31, 2007 and April 16, 2007, respectively. The increase in profitability that the Company has experienced and is reviewed below can be attributed to those acquisitions and an increase in demand for its drilling services as a result of robust activity in the mining sector. Selected Financial Information The following selected financial information has been derived from, and should be read in conjunction with, the historical consolidated financial statements of Orbit Garant and Garant contained elsewhere in this prospectus. Summary of Quarterly R esults The following summary financial information has been derived from, and should be read in conjunction with, the historical (consolidated) financial statements of Orbit Garant and Garant contained elsewhere in this prospectus. March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, 2008 2007 2007 2007 2007 2006 2006 2006 Contract R evenue .......... $22,070,986 $18,053,492 $17,378,479 $17,878,932 $13,127,435 $5,726,453 $6,481,279 $6,716,222 Gross profit .............. 7,515,692 6,315,549 6,248,683 5,381,952 3,779,406 1,439,304 1,924,170 1,197,509 EBT (1) ................. 4,019,879 3,146,985 2,898,414 2,032,998 1,080,628 54,005 1,244,249 734,723 Net earnings per Common Share — Basic ..... 0.11 0.10 0.10 0.05 0.03 0.00 8,151.96 5,605.72 Net earnings per Common Share — Diluted .... 0.11 0.10 0.09 0.05 0.03 0.00 8,151.96 31.49 Note: (1) EBT is not a financial or earnings measure recognized by G A AP . Therefore it may not be comparable to similar measures presen ted by other issuers, including other issuers that operate in the same business as Orbit Garant, and it should not be construed as an alternative to net income, determined in accordance with G A AP , as an indicator of performance of the cash flows from operating, investing a nd financing activities or as a measure of the liquidity and funds from operations. See ‘‘Non-G A AP Measures’’. F or a reconciliatio n of EBT to net earnings see ‘‘R econciliations of P ro F orma Financial R esults to EBT , EBITD A and Normalized EBITD A ’’ in the ‘‘Selected Financial Information’’ section of this prospectus. 44