Orbit Garant 2012 annual rep O rt 13 CORPORATE OVERVIE w From its head offce in Val-d’Or, Quebec, Orbit Garant, with approximately 950 employees, manages a feet of 224 drilling rigs that provide surface and underground services to the mining and exploration industry in Canada and internationally. In the second quarter of fscal 2012, the Company acquired all the issued and outstanding shares of Lantech Drilling Services I nc. (“Lantech Drilling”), a company that specializes in exploration and geotechnical services to mining or mineral exploration c ompanies, as well as engineering and environmental consultant frms. Orbit Garant has an effcient infrastructure and is vertically integrated with its subsidiary, Soudure Royale, which manufac tures drill rigs for the Company and third parties (and so provides a competitive advantage in the provision of drilling services). The Company focuses on “specialized drilling”, which refers to those drilling projects that are in remote locations or, in the opinion of Management, because of the scope, complexity or technical nature of the work, cannot be completed by small conventional drilling companies. The Company has two operating segments: Drilling Canada (including domestic surface drilling, underground drilling and manufac turing Canada) and Drilling International. The results of operations of Lantech Drilling are included in both operating segments in fs cal 2012. For the twelve-month period ended June 30, 2012 (“Fiscal 2012”): • Specialized drilling services, which typically generate a higher gross margin than conventional drilling services, accounted for approximately 60% of the Company’s total revenue. • Approximately 75% of the Company’s revenues were generated by gold related operations, and approximately 25% were generated by base metal related and other operations. • The Company’s surface and underground drilling services accounted for approximately 65% and 32% respectively, of the Company’s revenue. The manufacturing division accounted for the remaining 3% of revenue. • Orbit Garant operates in stable jurisdictions, with approximately 85% of the Company’s revenues generated in Canada. The Company also operates in the USA, Mexico and Guyana in the Americas and Liberia and Mauritania in West Africa. Approximately 92% of the Company’s revenue was in Canadian dollars, which provides greater stability. • Approximately 74% of Orbit Garant’s customers were major and intermediate-sized mining companies, with which the Company has contracts up to three years in length. b USINESS STRATEGY Orbit Garant’s goal is to be a leading Canadian-based mineral drilling company, while pursuing international opportunities , providing both underground and surface drilling for all stages of the mining and minerals business, including exploration, devel opment and production. The Company employs the following business strategies: • Focus primarily on major and well fnanced intermediate mining and exploration companies operating in stable jurisdictions; • Provide conventional, specialized and geotechnical drilling services; • Manufacture drills and equipment to ft the needs of customers; • Maintain a strong commitment to R&D and advanced drilling technologies, such as the Company’s current implementation of computerized and control technologies; • Provide training courses for the Company’s personnel to continuously improve labour effciency and ensure the availability of a skilled labour force; • Maintain a high level of safety standards in the work environment, and promote protection of the environment; • Establish and maintain long-term relationships with customers; • Cross-sell drilling services to existing customers; • Expand its bases of operations in strategic regions; and • Evaluate strategic acquisition opportunities to enhance value for the Company’s stakeholders.