Orbit Garant 2012 annual rep O rt 31 time in administrative and judicial proceedings and inquiries relating to Environment, Health and Safety Requirements. F uture proceedings or inquiries could have a material adverse effect on the Company’s business, fnancial condition and results of operations. The activities at clients’ worksites may involve operating hazards that can result in personal injury and loss of life. There c an be no assurance that the Company’s insurance will be suffcient or effective under al l circumstances or against all claims or hazards to which it may be subject or that it will be able to continue to obtain adequate insurance protection. A successful claim or damage resul ting from a hazard for which it is not fully insured could adversely affect the Company’s results of operations. In addition, i f the Company is seen not to adequately implement health and safety and environmental policies, its relationships with its customers may deteriorate, whic h may result in the loss of contracts and restrict its ability to obtain new contracts. Insurance limits The Company maintains property, general liability and business interruption insurance. However, there can be no assuranc e that such insurance will continue to be offered on an economically feasible basis, that all events that could give rise to a loss or li ability are insurable, or that the amounts of insurance will at all times be suffcient to cover each and every loss or claim that may occur involvi ng the assets or operations of the Company. Legislative and regulatory changes Changes to any of the laws, rules, regulations or policies affecting the business of the Company would have an impac t on the Company’s business and may signifcantly and adversely affect the operations and fnancial performance of the Company. Legal and regulatory risk The mining and drilling industries are highly regulated by legal, environmental and health and safety regulations. Failure to c omply with such regulations could lead to penalties, including fnes or suspension of operations which could have a signifcant impac t on the fnancial strength and future earnings potential of the Company. Furthermore, the Company’s mineral exploration customers are also subjec t to similar legal, regulatory, health and safety regulations which could materially affect their decision to go ahead with mineral exploration or mine development and thereby indirectly negatively impact the Company. Risk related to structure and Common Shares Equity market risks There is a risk associated with any investment in shares. The market price of securities such as the Common Shares of the Company are affected by numerous factors including, but not limited to, general market conditions, actual or anticipated fuctuations i n the Company’s results of operations, changes in estimates of future results of operations by the Company or securities analysts, risks identi fed in this section and other factors. In addition, the fnancial markets have experienced signifcant price and volume fuctuations that have sometimes been unrelated to the operating performance of the issuers or the industries in which they operate. Consequently, the tradi ng price of the Common Shares may fuctuate. Influence of existing shareholders As of September 19, 2012, Pierre Alexandre, the Vice-Chairman of the Company, holds or controls, directly or indirectly, approx imately 28% of Orbit Garant’s outstanding Common Shares. As a result, this shareholder has the ability to infuence Orbit Garant’s strategic direction and policies, including any merger, consolidation or sale of all or substantially all of its assets, and the electi on and composition of Orbit Garant’s Board of Directors. The foregoing ability to affect the control and direction of Orbit Garant could reduce its attractiveness as a target for potential takeover bids and business combinations, and correspondingly affect its share price. Future sales of Common Shares by the Company’s existing shareholders Certain shareholders, including Pierre Alexandre, hold or control signifcant blocks of shares of the Company. The decisi on of any of these shareholders to sell a substantial number of Common Shares in the public market could result in a material imbalance i n demand for the Company’s shares and therefore a decline in the market price of the Common Shares. In addition, the perception among the public that such sales may occur could also result in a reduction in the market price of the Common Shares. Dilution Orbit Garant may raise additional funds in the future by issuing equity securities. Holders of Common Shares will have no pre- emptive rights in connection with such further issuances. Additional Common Shares may be issued by Orbit Garant in connection wi th the exercise of options granted. Such additional equity issuances could, depending on the price at which such securities are issued, subs tantially dilute the interests of the holders of Common Shares.