Orbit Garant 2012 annual rep O rt 33 Management will continue to focus on building value for stakeholders by training new drillers, improving productivity and enhancing services for customers. Orbit Garant’s driller training program will continue to be an important part of the Company’s long term growth plans. Management believes its computerized drilling control and monitoring solutions will be an important contributor towards reduci ng both the labour and consumable component costs of mineral drilling, and enhancing productivity rates going forward. The Company expects to have at least 30 drill rigs featuring its computerized monitoring and control technology by the end of fscal 2013. The Board of Directors has approved a budget of $11.0 million for capital expenditures in fscal 2013. Orbit Garant’s acquisition of Lantech Drilling in December 2011, established a new strategic hub for the Company in Eas tern Canada, added 32 drill rigs to its feet and expertise in iron ore and geotechnical drilling services. Lantech Drilling also provides O rbit Garant with a strategic entry point to the higher margin mineral drilling market in West Africa. Management plans to leverage the combi ned operations of Orbit Garant and Lantech Drilling to pursue new business development opportunities in Canada and internationally. With its strong balance sheet, leading position in Quebec, growing presence in Ontario and expanded operations in New Brunswick and West Africa, Management believes Orbit Garant is well positioned for future growth. As the mining industry grows, and attracts new spending, Orbit Garant intends to build on its organic growth by focusing on acquisition opportunities both in Canada and i nternationally that further enhance stakeholder value. DISCLOSURE CONTROLS AND INTERNAL CONTROLS OVER FINANCIAL REPORTING Effective December 16, 2011, the Company completed the acquisition of Lantech Drilling and the results of Lantech Drilling operations have been included in the fnancial statements since the date of acquisition. However, the Company has not had suffcient ti me to appropriately review the internal controls used by Lantech Drilling. The Company is in the process of integrating the Lantec h Drilling operation and will be expanding its disclosure controls and procedures and internal controls over fnancing reporting complianc e program to include Lantech Drilling over the next year. As a result, the Chief Executive Offcer (“CEO”) and Chief Financial Offcer (“CFO ”) have limited the scope of design of disclosure controls and procedures and testing of internal controls over fnancial reporting to exclude L antech Drilling controls, policies and procedures from the June 30, 2012 certifcation of internal controls. The information for Lantec h Drilling is included in the discussion regarding the acquisition contained in this MD&A and Note 2 of the consolidated fnancial statement. The CEO and the CFO of the Company are responsible for establishing and maintaining disclosure controls and procedures (DC&P) for the Company as defned under Multilateral Instrument 52-109 issued by the Canadian Securities Administrators. The CEO and the CFO have designed such DC&P, or caused them to be designed under its supervision, to provide reasonable assurance that informati on required to be disclosed by the Company in its annual flings, interim flings or other reports fled or submitted by it under securities l egislation is recorded, processed, summarized and reported within the time periods specifed in the securities legislation and include control s and procedures designed to ensure that information required to be disclosed by an issuer in its annual flings, interim flings or other reports fled or submitted under securities legislation is accumulated and communicated to the Company’s management, including its certi fying offcers, as appropriate to allow timely decisions regarding required disclosure. As at June 30, 2012, the CEO and CFO evaluated the design and operation of the Company’s DC&P. Based on that evaluation, the CEO and CFO concluded that the Company’s DC&P was effective as at June 30, 2012. The Company’s Chief Executive Offcer (“CEO”) and the Chief Financial Offcer (“CFO”) are responsible for designing internal c ontrols over fnancial reporting (“ICFR”) or causing them to be designed under their supervision. The Company’s ICFR are desi gned to provide reasonable assurance regarding the reliability of the Company’s fnancial reporting and its preparation of fnancial statements for external purposes in accordance with IFRS. As discussed above, the inherent limitations in all control systems are such that they can provide only reasonable, not absol ute, assurance that all control issues and instances of fraud or error, if any, within the Company , have been detected. Therefore, no matter how well designed, ICFR have inherent limitations and can provide only reasonable assurance with respect to fnancial statement preparati on and may not prevent and detect all misstatements. During fscal 2012, Management, including its CEO and CFO, evaluated the existence and design of the Company’s ICFR and confrm there were no changes to the ICFR that have occurred during the year which materially affected, or are reasonably likely to materially affect, the Company’s ICFR. The Company continues to review and document its disclosure controls and its ICFR, and may, from ti me to time, make changes aimed at enhancing their effectiveness and to ensure that its systems evolve with the business. As of June 30, 2012, an evaluation was carried out, under the supervision of the CEO and CFO, of the effectiveness of the Company’s ICFR as defned in NI 52-109. Based on this evaluation, other than restrictions mentioned above, the CE O and the CFO concluded that the design and operation of these ICFR were effective. The evaluations were conducted in accordance with the framework and criteria established in Internal Control – Integrated F ramework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), a recognized control model, and the requirements of NI 52-109.