CAPABILITIES STATEMENT

About UsEGAN DRILLING SERVICES

Our aim is to build a successful, professional relationship between the client and ourselves; the relationship is built on effective communication and our commitment to safety and production.

Incorporated in 1989, Egan Drilling is a medium sized Perth based drilling service provider in Western Australia with the provision to supply diverse drilling services for both mine site and mineral exploration projects.

CORE SERVICES

RC Exploration

Resource Definition

Grade Control

Water Bores mud rotary or DHH

Egan Drilling works for all the major mining companies throughout Western Australia including junior explorers with the next big thing and continue to receive repeat business. Our commitment to in house training is based on having experienced drillers train new recruits on safe and correct drilling procedures from the day they arrive, then guide and mentor them through the various stages of becoming an Offsider/Senior Offsider/Relief Driller then eventually a Driller themselves. This process is all backed up by a comprehensive Safety Management System.

2

$Why Egan

VALUE AND CUSTOMER SERVICEIn adopting in a client-centric approach to how we do business, at Egan were are dedicated to working closely with our clients to develop long-lasting, mutually

beneficial relationships - ones that are built on invaluable customer

service, and the commitment to going above and beyond what

is expected.

EFFICIENCYThe efficiency of our services and our commitment to providing cost-effective drilling solutions to our clients, is what makes us stand out above the rest. We are , highly adaptive, have a Can Do attitude and are always available to respond quickly to our clients needs, without compromising on safety or quality of service.

Our ancillary equipment and camps equip with the latest satellite communications are of the highest

standard in the industry and allow us to be fully self-contained when working in

remote locations.

SAFETY AND QUALITY MANAGEMENTEgan Drilling is committed to maintaining a safe and healthy working environment for all. We operate to the strictest OHS and Quality management standards, in accordance with our AS/NZS 4801-2001 Occupational Health and Safety Management Systems and ISO 9001-2008 Quality Management System accreditation.

Safety is engrained in all aspects of Egan, carefully shaping policies and procedures throughout our business to uphold these strict standards and ensure we efficiently manage all risks inherent with our industry. We strive to continually progress in both quality and efficiency, sustaining the needs and product expectations of our clients.

W W W . J A S - A N Z . O R G / R E G I S T E R

OUR EQUIPMENTOur fleet of late model rigs have all been customized to

Egan specifications. Our concept has always been to provide clients a heavy duty rig with all equipment on-board such

as; sampling system, large capacity compressor, booster and dust collection whilst having a minimum impact on the

environment. All rigs have been engineered to minimise risk associated with high pressure air, rotating drill rods,

manual handling and noise.

We pride ourselves on our commitment to producing cost-effective and efficient

drilling solutions, and the whole service approach that

comes with it.

3

The Egan Difference

MODERN EQUIPMENTWith a standardized fleet of Sandvik 400 Series drilling rigs both truck & track mounted, we aim to provide clients heavy duty rigs with everything onboard such as; Sandvik sampling system, large capacity compressor, booster, hands free rod handling and dust suppression which provide the following advantages:

Reducedmanualhandling;

Smallerpadconstruction,therefore reduced cost and environmental impact;

Efficientsetuptimes;

Higherproductiongradecontrol.

EXPERIENCE AND RELIABILITYThe Egan name has been synonymous in Western Australias Drilling Industry for nearly 50 years. Egan have provided drilling solutions for many greenfield projects some of which are mining operations today. We have ridden the booms and endured the busts while constantly updating our services and equipment. Trust that your project is in good hands with Egan Drilling Services as we are here for the long haul.

4

COMPETITIVE PRICINGEgan understand the importance of providing high quality drilling services to our clients. We also acknowledge that it must be cost effective. Egan are always happy to look at innovative ways to assist our clients to stay within their budget without compromising on safety.

5

OperationsRC DRILLING EQUIPMENT Reverse Circulation Drilling is among the most preferred method for mineral exploration work, due to the benefits of which it offers compared to Core, or Diamond Drilling. RC Drilling reduces costs by up to 40%, delivers quicker results due to faster completion of projects, and even reduces the amount of man-hours at the drill, thus decreasing exposure to any potential accidents, and reducing the burden or costs of additional site support.

WATER BORING Water Bores can be required for a range of means, from small bores used for camps or drill programs, to large-diameter production bores intended for supply or dewatering. We also construct monitoring bores which can be equipped with piezometers to measure the pressure of a liquid or gas.

GRADE CONTROLEvery mine comprises a different grade and tonnage. During mining, grade control drilling is considered one of the most important parts of the overall mining process that is used to check the quality, grade, and variability of an ore, and thus determine whether or not mining it will be an economic success.

6

SAFETY AND QUALITY MANAGEMENTEgan Drilling operates to the strictest OHS and Quality Management Standards through Certification to AS/NZS 4801-2001 Occupational Health & Safety and ISO 9001-2008 Quality Management Systems. We ensure safety is engrained in all aspects of our company, whilst continually striving to improve the quality of our services to satisfy the needs and expectations of our clients.

TRAINING & DEVELOPMENT At Egan, we believe that ongoing training and assessment is an integral part of our safety program. A specific RC Drilling safety induction welcomes each new employee to Egan, and provides them with all the information they need to know regarding HSE and job requirements prior to their arrival at site. In order to develop the skills and confidence of our employees, we require them to participate in regular hands-on training, as well as engaging with accredited training courses outside of our workplace.

We are heavily committed to in-house training and encourage advancement of our employees through the Australian Drilling Industry competency standards. These qualifications are:

Senior Drillers Assistant/Trainee Driller - Certificate 2 in Drilling Operations (RII20909)

Driller - Certificate III in Drilling Operations (RII31809)

7

Key Personnel

GLENN SUMMERFIELDGeneral Manager

Glenn has been around drill rigs for as long as he can remember, after following in the footsteps of his father who had been a driller for most of his life. After learning how to drill a hole with a cable tool rig at the age of 15, Glenn went onto mud rotary, water boring, wireline coring, diamond drilling, and then finally RC. After 30 years of field experience he stepped off the drillers platform and into head office, where he took over as General Manager in 2012 for Egan Drilling. Providing high quality drilling services with innovative drilling equipment operated by industry professionals, is the direction in which he drives the company.

DAVID MINUTILLOOperations Manager

David started his professional career working in IT for Bunnings, where he quickly took over an entire department in IT Support. After 5 years there he achieved his Commercial Pilot License as a Helicopter Pilot with Heliwest, before launching the Albany Heliwest Base and Flying School and continued working in this area until 2009. Eager to demonstrate his ability to learn and apply a range of practical skills, David came over to the Drilling Industry as an offsider for Egan Drilling. He quickly worked his way up through the ranks, first as a driller and then as a supervisor. After a years hiatus he returned to the company to take on the position of Operations Manager, where at present he encourages all of his crew to maintain the highest possible safety standards in the field.

Being a hands-on manager, he makes regular trips to site to oversee the day-to-day operations of the rigs, which allows for a close link between the guys on the ground and Egan Drilling management.

8

Egan Drilling: A Family History

But before this came to be, the lure of the mining industry saw Haydn Egan study engineering in Kalgoorlie, from which he was quick to secure a graduate position with the Western Mining Corporation (WMC). After spending some time studying deep hole drilling in South Africa, Haydn returned to Australia where he was responsible for the WMC project to test for southern extensions in the Golden Mile, drilling what were the deepest holes in our nation at that time.

In the years following the boom, Haydn returned to Perth and worked as a consultant for several drilling and prospecting companies, before launching Aquadrill, an innovative company specialising in deep directional drilling. Aquadrill was the first drilling company to introduce hydraulic top drive rigs to the Pilbara, and pioneered large diameter coring in Iron Ore, of which was perfected by introducing impregnated diamond coring bits.

Alongside the success of Aquadrill Haydn established Centreline Drilling, a company that was noted for exploring for oil in the Canning Basin, using slim line drilling techniques equipped with blow out prevention. RC hammer and water boring soon followed, leading Aquadrill to become one of Australias most diverse drilling companies in the 1980s.

It was thus during this time that Haydn became involved in training programs for drillers run by the Australian Drilling Industry Training Committee (ADITC), and regularly presented papers at national conferences. His last paper, presented

in October 1992, was titled Drilling Is More Than Just a Hole in the Ground, which set the stage for his companys core values and guiding principles. In 1994 Aquadrill was the first drilling company to obtain accreditation in Quality Assurance, and was congratulated on this achievement by the then minister for Mines, Colin Barnett, at a function held at the Trade Winds Hotel in Fremantle.

Renowned for his classical lateral thinking, Haydn was an academic who was clearly ahead of his time, and firmly believed that drilling should be recognised as a skilled profession. In 1995 his son Matthew took over Aquadrill, who, with his vast knowledge of the drilling industry and astute business skills, is responsible for the Egan Drilling Services that we have today. Earn Trust, Gain Respect, Always Do the Right Thing, Nothings Too Difficult are the core values our culture is built upon, of which we are immensely proud of. Egan Drilling is a testament to the history, innovation, and drive that is attributed to this industry, and we look forward to achieving more milestones and achieving great success for our clients in the years to come.

Its been nearly 50 years since the Egan family drilling story began, way back in 1968. Armed with only one rig in the goldfields town of Kambalda, Haydn Egan established his first company called Egan Exploration, during one of the first mining booms to hit WA.

Matthew Egan

Haydn Egan with one of

his first rigs

9

Safety and Quality Management Egan Drilling operates to the strictest OHS and Quality Management standards through Certification to AS/NZS 4801-2001 Occupational Health & Safety and ISO 9001-2008 Quality Management System. We ensure safety is engrained in all aspects of our company, whilst continually striving to improve the quality of our services to satisfy the needs and product expectations of our clients.

Each of our policies and procedures have been carefully crafted to ensure that we manage those risks inherent to our industry in the most effective way, and continue to operate in accordance with our guiding principles. We make safety a priority at Egan and due to the nature of our work, its an area we are extremely committed and proud to be recognised in as one of the best.

Our Certification to Occupational Health & Safety AS/NZS 4801-2001 and ISO 9001-2008 Quality Management System has been completed under JAS-ANZ, an internationally recognised accreditation that allows our clients to feel confident in our safety standards, while ensuring that we stand out as industry leaders in a market that is growing in size, complexity, and risk.

JAS-ANZ acts like a badge of honor in our industry especially, for its symbol of assurance, compliance, and credibility. The nature of what we do at Egan means that safety is imperative to all aspects of our business, and is something we will continue to maintain as time and growth goes on. To learn more about our policies, head to our website.

W W W . J A S - A N Z . O R G / R E G I S T E R

10

Established Clients

Company SnapshotCOMPANY NAME Egan Drilling

ACN 00942000

ABN 89165028140

ADDRESS Head Office Unit 4, 17 Ogilvie Road Mt Pleasant 6153 Western Australia

PHONE (+61) 08 9364 2255

FAX (+61) 08 9364 2654

EMAIL info@egandrilling.com.au

WEB www.egandrilling.com.au

CONTACT PERSON Glenn Summerfield

TITLE General Manager

EMAIL glenn@egandrilling.com.au

ACCREDITATIONS JAS-ANZ Quality & Safety Accredited

11

egandrilling.com.au