Orbit Garant 2012 annual rep O rt 3 P resident and CE O’s message In fscal 2012 Orbit Garant ac hieved its ffth consecutive year of revenue growth since becomi ng a public company in 200 8. W e drilled 1.5 million metres in fscal 2012 – a new high – and generated r ecord revenue of $15 4.8 million, up 21.2% from fscal 2011. Our revenue growth was driven by new drilling contracts, higher average rev enue per metre drilled and our acquisition of Lantec h Drilling Inc. during our second quarter . However , our gross margins and net earnings declined in fscal 2012, as we experienced lower than expected utilization rates in the second half of the year , due to unseasonably warm temperatures in Marc h, whic h impacted our drilling activities in Quebec and Ont ario; and a decline in our junior mining company customers’ dri lling activity in our fourth quarter . W hile we currently generate appro ximately 7 4% of revenue from senior and intermediate mining companies, our junior mining company customers remain an import ant part of our business mix. T he second half of our fscal 2012 year proved to be a diffcul t environment for our junior customers to access capit al, and as a result some of these customers suspended or scaled bac k their exploration programs. Our senior and intermediate customers continue to be very active an d indications are that they intend to remain active. Further , we currently derive appro ximately 75% of our revenue from gold-related projects, and gol d remains at historically high prices, whic h should support continued, active exploration and development. W e entered fscal 2013 with 7 0% of our capacity booked for the year . Our acquisition of New Brunswic k–based Lantec h Drilling not only enhances our core strengths but also expand s our horizons in support of our long-term growth: • providing Orbit Garant with a new operational hub in Eastern Canad a; • adding 32 drill rigs to our feet; • strengthening our team with highly skilled management, drillers an d feld tec hnicians; • bringing us new expertise in iron ore drilling and geotec hnical services; • expanding our customer base; and • est ablishing for Orbit Garant a strategic entry point in the higher-marg in mineral drilling market in W est Africa. W e believe our computerized drilling control and monitoring solution s will be an import ant contributor to reducing both the labour and the consumable component costs of our mineral drilling operations going forward, and to enhancing productivity . Direct customer benefts of the tec hnology include real-time visibility of drilling progress and core s amples via the internet, improved accuracy and consistency of results, and det ailed performance reports on demand. By the end of fscal 2013, we expect to have at least 3 0 drill rigs featuring our computerized monitoring and control tec hnology . Despite current global economic uncert ainties, we believe the longer term fundament als of our business remain positive. W e have invested signifcantly in our growth platform over the past 24 month s, enhancing our capacity , our services and our geographic market presence. W e have fortifed our core strengths and expanded our horizons. Looking ahead, we will focus on the aspects of our business that are in our control, including improving our productivity , increasing utilization rates, cont aining costs and building value for our customers. At year-end, we had $6 0.3 million in working capit al and access to a revolving credit line with a major c hartered bank, so we have the fnancial fexibility to pursue strategic growth opportunities in Canada and internationally as they arise. In closing, I would like to thank our employees for their dedication, teamw ork and commitment to our shared values. I am proud of their contributions. And to our shareholders, thank you for your continued s upport. Eric A lexandre P R E S I D E NT AN D C E O Eric A lexandre President and Chief Executive Offcer