© Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. ENVIRONMENTAL SUSTAINABILITY How we do business 1 2 © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. All rights reserved. TABLE OF CONTENTS About Boart Longyear 5 Our Global Operations 6 One Boart Longyear 9 Environmental Sustainability 11 From the Chairman 12 Environmental Sustainability 13 Air Quality Controls 14 Energy and Water Conservation 16 Waste and Hazardous Materials Minimization 18 Frequently Asked Questions 21 © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. Warranty 61 9 11 One Boart Longyear Environmental Sustainability 3 © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. 4 ABOUT BOART LONGYEAR Boart Longyear is the world’s largest provider of mineral exploration, drilling services and drilling products. The Company also has a © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. substantial drilling presence in water services, environmental sampling, energy and oil sands exploration. The Company has over 120 years of expertise in the industry. Headquartered in Salt Lake City, Utah, USA with regional offices in Santiago, Chile, Adelaide, Australia, Geneva, Switzerland and Mississauga, Canada, the company conducts contract drilling services in over 40 countries and provides mining products to customers in over 100 countries. 5 OUR GLOBAL OPERATIONS © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. Countries with Boart Longyear Registered Subsidiaries 6 6 Manufacturing Facilities 39 +- Support Facilities 40 +- COUNTRIES - operations 100+ - COUNTRIES - sales 1200 +- DRILL RIGS 8,000 +- UNITS OF Support EQUIPMENT 10,000+ - Employees 25,000,000 +- MAN Hours (2011) Operations Data as of December 2012 © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. Countries with Boart Longyear Registered Subsidiaries 7 © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. Surface Coring, Argentina 8 Leveraging strengtHS across THE GLOBE Exploration Site, Zambia Exploration Site, Australia © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. ONE BOART LONGYEAR With operations in all corners of the world, GLOBAL consistency Boart Longyear is committed to delivering “One Boart Longyear” to all clients. Boart Longyear offers its clients global consistency in all aspects of its business: To drive global alignment and consistency, the company is organized into four regions; North America, Latin America, Europe/Middle • Safety East/Africa, and Asia-Pacific. Backed by our corporate infrastructure, systems and • Compliance standards, our regional and country teams support our customers by ensuring delivery • Environmental Sustainability of uniform quality and customer service throughout the world. • Service Quality and Crew Competency The mining exploration business takes Boart Longyear and its customers to some of the • Modern “Drill Ready” most challenging business environments in the world, but our compliance standards and Rig Fleet resources ensure our personnel know how to do business the right way, protecting our • Global Contract Support clients and the communities in which they operate. • Continuous Flow of New Technology 9 © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. 10 ENVIRONMENTAL SUSTAINABILITY © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. 11 From the Chairman: “Clean enough to be your neighbor.” At Boart Longyear, that is our guiding environmental principle: we strive to contribute to the development of the communities in which we operate while minimizing impacts to their air, water and soil. In 2011, our Board of Directors approved a long-term environmental sustainability program focused on air quality, energy and water conservation, and the minimization of waste and hazardous materials. That initiative marks the first formal, global program to integrate the principles of environmental sustainability into all of the Company’s operations and to quantify and monitor improvement continuously. We’re proud of our efforts so far and invite our clients, shareholders and other stakeholders to learn more about our goals and watch our progress. David McLemore, Chairman © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. 12 ENVIRONMENTAL Sustainability METRICS The formal incorporation of environmental Air Quality Impacts principles into the Boart Longyear business • Engine hours of operation model. • Fuel consumption (diesel, gasoline, • An evolution beyond ISO-14001 certification. natural gas, propane) • Global application to all manufacturing, • Fleet engine inventory and specifications support, and drilling services activities. • Vehicle mileage • Airline travel mileage Energy Conservation • Electric power consumption Waste Minimization • Waste generation Economy • Recycling Hazardous Materials Inventory and All rights reserved. © Copyright 2012 Boart Longyear. Minimization • Hazardous materials inventories Sustainability • Hazardous waste generation Water Quality Impacts & Conservation Society Environment • Spill Incidents (reportable and non-reportable) • Water consumption THREE–YEAR implementation 2012: 2013-14: 2015: Program Data analysis, Program announcement and continued data assessment data collection of key collection and performance indicators establishment of interim goals 13 AIR QUALITY controls Clean, healthy air for our employees, families and communities. Tracking, management and reduction of air emissions and greenhouse gases • Fuel and power consumption • Mobile equipment engine hours • Vehicle miles • Air travel • Volatile organic compounds © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. 14 Water-Based Paints – Salt Lake City, USA, Mississauga, Canada and Wuxi, China Transitioned from solvent-based to water- based paints for the painting of all percussive drilling products and diamond bits in the Company’s Mississauga, Canada, Salt Lake City (SLC), USA, and Wuxi, China manufacturing facilities. The use of water- based paints has reduced paint-related emission of volatile organic compounds (VOC) by approximately 33% (2.6 tonnes) annually. Equivalent to the emissions of 200,000 vehicle kilometers. © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. HVLP Spray Guns (SLC, Mississauga, Wuxi and Drilling Services Shops) Implemented use of high volume, low pressure paint spray guns at SLC, Wuxi and Mississauga for painting of percussive drill products. Eliminated about 40% of paint and paint thinner solvent use, and associated VOC emissions of 2.1 tonnes. Equivalent to the emissions of 160,000 vehicle kilometers. Mississauga Heat Treat Furnace Installed a high-efficiency electric induction heating coil system at the Mississauga facility, reducing annual natural gas consumption by 3.1 million m3 with a concurrent reduction of 7,000 tonnes of CO2e Greenhouse Gas emissions. Equivalent to taking 1,200 passenger vehicles permanently off the roads. 15 ENERGY AND WATER CONSERVATION Minimizing consumption of scarce and crucial resources. Track and manage power and water use at permanent facilities and job sites • Evaluate energy efficiency opportunities at permanent facilities • Incorporate LEED™ technologies in new buildings and evaluate opportunities for alternative energy at all facilities • Implement water conservation © Copyright 2012 Boart Longyear. All rights reserved. © Copyright 2012 Boart Longyear. measures at permanent facilities and job sites • Limit job site impacts to water quality 16 Wuxi, China Waste Water Reduced hazardous waste water disposal by 90% (1.1 million liters annually) by reverse osmosis filtration and reuse at the Wuxi facility. Equivalent to the water required for more than 5,000 car washes @ 200 liters per wash. MISSISSAUGA AND NORTH BAY MANUFACTURING FACILITES GENERATE ENERGY SAVINGS AND COST REDUCTIONS THROUGH RE-­LAMPING Relamping at Mississauga, Canada All rights reserved. © Copyright 2012 Boart Longyear. and North Bay, Canada Installed high-efficiency lighting in the Company’s North Bay and Mississauga facilities with a resultant 400,000 kWh in annual energy savings. Equivalent to the annual power consumption of 40 US homes. Last year the Mississauga plant replaced all of the lighting fixtures in the entire shop. The cost of replacing approximately 170 fixtures was about $45,000, and those new fixtures consume about 375,000 fewer kilowatt-­ hours (kw-­h) per year than the old bulbs and fixtures. The power savings equates to approximately $3,700 per month in reduced operating costs. The utility provider in Ontario also had an incentive which paid for the majority of the project. Energy Management System at ELECTRICITY CONSUMPTION (MwH) Eiterfeld, Germany Idle Current Consumption (Mwh) Re-­ Street and Exeter facilities was completed recently.