23 Copyright 2012 Boart Longyear All rights reserved 9 How would you rate the environmental impact of operating activities relative to industry peers in terms of carbon pollution other air pollutants water pollution land clearing and use biodiversity loss and hazardous materials produced Industry leader W e strive to have the best and most technologicallyadvanced feet of drilling equipment in addition to the best trained crews in our industry All of our drilling services facilities and feld operations are ISO14001 certifed as are all of our manufacturing facilities Additionally all of our global manufacturing facilities are ISO9001 certifed for product quality which also includes environmental considerations in design and manufacture Thus we have substantial environmental controls and programs in place for all facilities and feld operations These combined ef forts systematically lessen our environmental impacts relative to our industry peers 10 How would you rate the environmental effciency of the company relative to industry peers That is how carbon water land and other resource intensive or effcient is the company relative to other industry peers Industry leader See answer to item 9 above 1 1 Has the company implemented invested in or realized any signifcant environmental effciency improvements in the last 3 years Y es a few examples include Over the last three years we have invested hundreds of millions of dollars in global feet modernization with high effciency engines along with concurrent retirement of older less effcient engines Installation of InThinc remote vehicle monitoring systems in light vehicles 500 to date to track engine fuel economy and driving performance T ransition to waterbased paints for all percussive drill products Relamping of Boart Longyear factory foors with high effciency bulbs and fxtures Electrical upgrade to store and utilize of f peak power at our factory in Germany W aste water treatment and recycling improvements at our factory in China Completed hazardous materials inventories and minimization ef forts at all global manufacturing facilities and drilling services shops Planning and construction of multiple new global drilling services support facilities employing an architectural template incorporating LEED design elements such as energy effciency natural lighting and water conservation 12 How would you rate the companys environmental management practices taking into account any track record of environmental incidents including pollutant releases chemical or other spills fnes compliance breaches and or litigation Industry leader All global facilities and feld operations are managed in accordance with our ISO14001 certifed EHS Management system Our operations include six manufacturing facilities more than 35 maintenance shops approximately 1200 drill rigs more than 8000 units of ancillary equipment and support vehicles at locations in more than 40 countries and working more than 25 million manhours 201 1 In the last three years we had very few reportable spills none of which had signifcant environmental impact W e have had no environmental compliance citations or penalties at any of our global operations in the last fve years 13 Does Boart Longyear conduct hydro fracturing What is the difference between Boart Longyears drilling fuids and hydrofracturing fuids No Boart Longyear is not involved in any hydrofracturing activities anywhere in the world Boart Longyear uses environmentally benign mud air and water to lift cuttings stabilize the bore and to cool downhole tools These drilling fuid constituents such as bentonite clay gels and foaming agents are non toxic and are generally certifed by the National Sanitation Foundation NSF International for use in water well construction Hydrofracturing which involves large volumes of a pressurized mixture of water with various chemical additives eg diesel fuel acids antiscalants rust inhibitors etc is employed by the oil and gas industry to improve oil and gas recovery from geologic formations after oil and gas wells are drilled Boart Longyear does not conduct hydrofracturing nor do we employ hydrofracturing liquids in any of our global operations