Fighting for theSoul of The Bahamas

Soldier Road Industrial Park,Nassau, Bahamas

(242) 394 7777www.bahamasstriping.com

President’s New Year’s Message

Happy New Year!

While 2014 has been an exciting yet challenging for us, the same can be said about our country. We were truly blessed to not only complete the construction on our office building and manufacturing plant, but were privileged in having clients, supporters’ family, friends and well-wishers share in our grand opening celebrations in the month of May. We continued our progress with the successful launch of our fourth subsidiary, Caribbean Pavement Solutions Limited (CPSL) and to date we are pleased to have successfully negotiated two exclusive distribution agreements for Bond-X Green environmentally-friendly Cold Patch and RejuvaSeal, two innovative products for the Bahamas and Caribbean markets.

Like most companies, we felt the impact of the global economic downturn; however, with God’s blessings we were able to uphold our commitment to giving back to community and continued

our investment in the further advancement and technical training of our staff. 2014 opened up opportunity for further technical training in the US on our newly acquired DESCO 200 which is, a computerized applicator unit providing the latest technology for the application of RejuvaSeal. Indeed, in fact, I take this occasion in expressing my thanks to Mr. Franklin Butler of the Milo Butler Group of Companies and at the Bahamas Venture Fund for their assistance which allowed us to acquire this more than $80,000 unit.

With great optimism I am looking towards the future for growth opportunities for our companies. Conversely, over the course of last year, we began looking at the potential of Public Private Partnerships. To date, our Group has been short-listed out of a list of local and international companies pursuing possible 3P partnerships with government. As a young Bahamian entrepreneur, this in itself speaks to the possibilities and shows that an aspiring generation can pursue their dreams and have aspirations of participating in and contributing to the development and advancement of our country and economy.

However, in the midst of this promising hope, we as a society must not ignore the growing social ills of crime and unemployment. As individuals and as corporate society, we must not just look to the government and the church to solve these ills; collectively and collaboratively we need to look at what more can we do to bring easement to the many who have fallen onto hard times or have slipped through the cracks. We must do more in providing job opportunities, skills training and more importantly communicating as a society a zero tolerance to crime. For persons who choose to terrorize our society by taking innocent lives, I believe that they should face the gallows. We must put fear back in the minds of criminals or would be criminals.

Moreover, we must allow the love and light of Christ to bring us together as a community to pray for our country and we must rise from prayer with a zeal towards making a difference. We must become our brother’s keeper and provide more opportunities for our young people to be empowered and engaged as productive and contributing members of our society. I encourage us all to help in restoring peace, love and hope to our nation.

My brothers and sisters throughout the Commonwealth of the Bahamas, I believe that not just I, but we live in the best country in the world and we cannot allow a small segment of our society to destroy our country and take away our peaceful way of life. As 2015 unfolds, let us all pray for peace in our hearts, our homes and upon our land. I am committed and I ask others to commit with me in this New Year to stand together and let us all fight for the soul of our Bahama-land.

On behalf of our Chairman, our Board of Directors and myself, I trust that you had a wonderful Christmas and wish you all the best for 2015!

Atario J. Mitchell President THE BAHAMAS STRIPING GROUP OF COMPANIES

Caribbean Paving Solutions (CPS) was introduced in April 2014 to the Bahamian market as a subsidiary of its parent company, Bahamas Striping. CPS is a supplier and manufacturer of pavement rejuvenators and cold patch asphalt.

CPS and Bahamas Striping are well aligned for this joint partnership as the parent company has demonstrated an extensive wealth of knowledge and expertise in striping on public roads, car parks, and airports and it now can be said that Bahamas Striping Group of Companies is the country's first road maintenance service company. CPS provides two innovative products. An eco-friendly, and non carcinogenic cold patch asphalt will also be offered to fix potholes in tropical climates. Cold patch asphalt is a mix of black tar like binder and rock aggregate. The Water and Sewerage Corporation purchased a substantial amount of cold patch products as they are now adopting

environmentally sound products and practices in their daily operations and they are now becoming increasingly aware that the environment and sustainability issues must be crucial factors of their operations.

Mr. Keith Beneby, Senior Engineer at The Water and Sewerage Corporation said, “Supporting local manufacturers and utilizing green products is important to the Corporation. The product offered by Caribbean Paving Solutions was much cheaper than our foreign suppliers and naturally accessibility was also a factor as the products will be used mainly in the Family Islands for repairing road trenching during our various work projects.”

Rejuvaseal, is a more modern and effective pavement sealer that is sold to contractors, pavers, public and private utilities for the maintenance of airports, roads, and car parking lots. This sealer will rejuvenate asphaltic services at a fraction of the cost compared to traditional ripping and repaving methods. The product is designed to help preserve and prevent the asphalt from degradation from oxidation from the weather, water, fuel, and other elements.

CPS is committed and dedicated to changing the modus operandi and approach to road maintenance in The Bahamas is clear as the company invested in a precision spraying machine which costed eighty thousand dollars, and was funded by The Bahamas Venture Fund.

In September, CPS, procured its first contract to resurface the parking lot at The Lucayan Shopping Plaza Parking Lot.

The Bahamas has over one thousand five hundred and sixty (1,560) miles of paved roads and forty eight (48) airfields. The airfields in the family

islands in particular have not been properly maintained over the years and undoubtedly will require asphalt rejuvenation services and repair in order to bring the surface of the runways, taxiways, and aprons up to ICAO standards. This is absolutely essential as the Ministry of Tourism engages with prospective carriers to bring additional airlift to the islands. Potholes and surface deterioration causes roads to become hazardous, resulting in accidents, vehicular damage and unfortunately sometimes tragic injury and loss of life. The Government of The Bahamas is increasingly challenged to maintain the highways, thus, road maintenance will remain a never ending problem. The CPS products are guaranteed to provide huge savings and benefits for the public and private sectors. Although the government purchases 2.6 million pounds of cold patch supplies abroad annually, it is never enough to fix all of the potholes throughout New Providence and the Family Islands. Private landowners, developers and businesses are now be able to procure locally produced cold patch to repair parking lots, driveways, and roadways, as well as hardware stores will be able to stock supplies of the product for DIY customers. The products have a less expensive price point, and moreover, the products are manufactured in the Bahamas which adds significant social and economic benefits such as jobs, skills creation, and eco-friendly appeal. CPS hopes to integrate into other Caribbean markets in 2015, as our neighbors to the south also share some of the same challenges as The Bahamas, as tourism, good roads, and good airports are necessary for economic stability and growth in all of the islands.

On Friday, May 30, 2014, a dream was fulfilled. The Directors and Executive Management team of Bahamas Striping along with government officials, customers, and friends gathered in the Soldier Road Industrial Park for the grand opening of the new multimillion dollar office and manufacturing facility.

President, Atario Mitchell, indicated that he stood as a beacon reflecting what is possible when economic opportunities are not just afforded but are vigorously embraced.

The opening came Approximately one year after breaking ground on land leased from the Bahamas Agricultural and Industrial Corporation (BAIC) which represents the government's ongoing commitment and vision of helping young Bahamian entrepreneurs to propel their business.

The new head office and manufacturing plant consists of a state-of-the-art classroom where staff are taught and trained in all aspects of road striping. They receive both theoretical and hands-on technical training using the UK standards

according to the Chapter 5 striping manual, to which our country complies with.

Bahamians are also working in our manufacturing division, producing concrete wheel stops, paving stones, anti-parking pyramids and other decorative concrete products.

Bahamas Striping welcomed The Minister of State of Transport and Aviation, The Hon. Hope Strachan, and The Minister of State for Investments, The Hon. Khaalis Rolle.

The Minister of State for Transport and Aviation, The Hon. Hope Strachan stated, “The opening of this new building serves as an inspiration to us all, and it shows Bahamians that we too can achieve our goals.”

The opening of the two million dollar building represents a landmark in the continuing growth of Bahamas Striping Group of Companies, as well as it’s an important strategic step in the development of the manufacturing industry.

A DREAM FULFILLED

Manufacturing in The Bahamas is slowly entering a dynamic new phase as there are now new substantial opportunities that will propel this industry into becoming an important sector in the Bahamian economy.

This year the government announced that they would provide duty free concessions for the businesses in East End and West End. These concessions provided the needed stimulus and incentives for Bahamas Striping to relocate its manufacturing plant to West End. Minister for Grand Bahama, The Hon. Michael Darville indicated that the duty free project has been in the planning stages for two and a half years, and it is envisaged that the current one hundred and fifty business applicants will be approved so that they can begin to experience the benefits of the program. Ultimately it is also about empowering young Bahamians to not only start companies, but also to expand them.

Just as they did in Nassau, BSGC is in the embryonic stages of acquiring crown land in West End, Grand Bahama from BAIC, to build a $750,000.00 cold mix patch manufacturing facility. The plant which is scheduled to come on stream in mid 2015, will produce a value added cold patch product in The Bahamas which will be distributed throughout the country and the Caribbean region.BSGC has realized that global trends are shifting away from the traditional industry concept of manufacturing a product from the ground up. The company plans to import the binder, which is the proprietary product, and will complete it by adding locally produced

aggregate to produce an environmentally green product for road re-pavement and pot hole repair in the country. These duty free concessions for the businesses in East End and West End have provided the needed stimulus and incentive for BSGC to relocate its plant to West End as well as boost the economy by providing jobs. It is projected that we will hire fifteen locals and one international trainer who will teach West Enders how to use the plant and create the product.

“This investment reflects our continued commitment to meeting growing market demands for maintained and safe roads in the Bahamas,” said Atario Mitchell, President of BSGC.

He added, “Our ability to produce these products will strengthen our supply reliability as the Government, small contractors, and distributors will be able to purchase cold patch from a local manufacturer which are guaranteed to provide huge savings in the public and private sectors because it will have a less expensive price point and more importantly the money can stay in the country. “West End has the necessary international

trade logistics and shipping infrastructure which will allow us to transport the cold patch not only throughout the country but to other Caribbean Islands.”

In the next few years, west Grand Bahama will be recognized as a manufacturing and shipping mecca. Local manufacturing is and will be critically important to the Bahamian economy because it will promote innovation, and increased productivity.

Member of Parliament for West End and Bimini, and the Minister of Tourism, the Honorable Obie Wilchcombe indicated that when Grand Bahama was created it was thought to have the opportunity to be an industrial city. By Bahamas Striping coming to West End, it will start a new phase of growth for west Grand Bahama. The company will not only serve the domestic market, but they will service the domestic Bahamas market and the international market because of the access to the ports and for shipping. All that is needed is a vibrant company like Bahamas Striping to invest and it will cause others to follow which will create a domino effect in terms of growth.

Expanding to West End

Like most developed countries around the world, the Government of The Bahamas finds itself challenged with generating and providing adequate capital-funding to provide and improve capital projects such as roads, airports, docks throughout the Bahamas. As a result and like many other counterparts around the world, The Government of the Bahamas is becoming more responsive towards entering into Private Funding Partnership (PPP) agreements. In 2014, Bahamas Striping Group of Companies (BSGC) put forward to the government two PPP proposals thereby providing to the government private-sector funding to meet its capital shortfall to begin and complete infrastructural projects. Naturally, many of these projects would not otherwise be carried out due to various fiscal constraints and limited conventional funds. With this, the BSGC finds itself pioneering the way as in recent times; The Government has been encouraging these types of partnerships as a mechanism to cajole Bahamian businesses in grasping greater opportunities in the provision of much needed capital-works development throughout the country.

Under the first initiative, BSGC will fund a ten million dollar partnership agreement as a route to providing safety upgrades to roadways particularly in the Family Islands where safety features are severely lacking. These road enhancement projects will target Abaco, Acklins, Cat Island, Eleuthera, Exuma, Grand Bahama, Inagua, New Providence and Long Island. President of BSGC, Atario Mitchell said, “Developing the framework for this agreement took months to complete in order to structure a partnership which will ensure and maintain the flow of development. We propose to commence work over thirty-six months upon receipt of a $900,000.00 down payment from the government.” Mr. Mitchell also indicated that BSGC has already identified local and international investors to underwrite the remaining $9.1million, which will be

repaid by the government through a five year, low interest term loan.

Similarly, under the second initiative, BSGC proposal will involve an intensive overhaul of some of various Family Island airports thereby bringing them up to ICAO and FAA compliance standards. The Government has identified the following eight airports: Great Harbour Cay, Marsh Harbour, Treasure Cay, North Eleuthera, Governors Harbour, San Salvador, Acklins and Inagua, all of which are in urgent need of ICAO marking installation, marking upgrades, pavement rejuvenation to come into compliance with international standards. Most unique to BSGC’s proposal is that airport pavements such as runways, taxiways and aprons will not have to undergo costly repaving, as BSGC is the exclusive distributors of an innovative and proven pavement preventative maintenance product called RejuvaSeal. It is chemically designed to penetrate the asphalt thereby rejuvenating, revitalizing and extending its life cycle.

Upon the introduction of RejuvaSeal to the Bahamian market, BSGC was confident in RejuvaSeal’s 40 year proven performance record as a preventative maintenance product for use on asphalt. However with much of the pavements found at airports and on Family Island roads being doubled sand-sealed, BSGC initiated technical studies to determine RejuvaSeal’s viability for the maintenance and preservations of double sand-sealed pavements as well. Over the course of a year, BSGC as a small Bahamian Company invested approximately two hundred thousand dollars ($200,000.00) in research and development. The company’s investment involved the actual application of RejuvaSeal on selected roads throughout The Bahamas followed by scientific testing.to confirm RejuvaSeal’s technical value.

We conducted the following:

1. Friction Test2. Penetration Test and a3. Permeability Test

Core samples were gathered from controlled RejuvaSeal tests sites and were shipped to the US where they were analyzed by scientific technicians at independent pavement specialty labs. As a result of these tests, the scientific results confirmed that RejuvaSeal chemically works equally on double sand-seal pavements as it does on asphalt.

With RejuvaSeal’s performance on doubled sand-seal pavement now confirmed, the use of RejuvaSeal will have an enormous cost-saving benefits for the Government. Ultimately, the government and the Bahamian people now have a product that will extend the life span of the roads, airport runways, taxiways and aprons throughout The Bahamas. RejuvaSeal will also improve aviation and vehicular safety at a fraction of the costs of repaving or total rehabilitation.

Recently Bahamas Striping RejuvaSeal, striped and installed reflective cat eyes on a portion of road in Rock Sound, Eleuthera. Many of the residents were grateful because the road is difficult to navigate at night due to poor visibility which often claims the lives of many. We see this type of road safety enhancements as the roads of the future particularly in the Family Islands.

Beyond the cost savings to the government and the safety upgrades to roads and airports, RejuvaSeal will also open new job opportunities and create a new industry. Our vision is to focus on manufacturing RejuvaSeal and in time license up to five certified applicators that would then be able to bid on various public tenders. What we are talking about is not just creating jobs but also creating new economies for Bahamian entrepreneurs.

FADED RUNWAYMARKINGS (TYP.)

AGING PAVEMENT (TYP.)FADED RUNWAYMARKINGS (TYP.)

REJUVASEAL REHABILITATION (TYP.)

NEW THRESHOLDMARKINGS (TYP.)

NEW RUNWAYDESIGNATION NUMERALMARKINGS (TYP.)

NEW TOUCHDOWN ZONEMARKINGS (TYP.)

NEW CENTERLINEMARKINGS (TYP.)

NEW CENTERLINEMARKINGS (TYP.)

NEW AIMING POINTMARKINGS (TYP.)

NEW RUNWAY DESIGNATIONNUMERAL MARKINGS (TYP.)

NEW THRESHOLDMARKINGS (TYP.)

NEW AIMING POINTMARKINGS (TYP.) NEW TOUCHDOWN ZONE

MARKINGS (TYP.)

1

EXISTING RUNWAY 9-27 (7,213' X 150') AND TAXIWAY

NEW RUNWAY AND TAXIWAY MARKINGS PAVEMENT REHABILITATION/REJUVASEAL NEW RUNWAY AND TAXIWAY EDGE LIGHTING

00 250'250'

Drawing No.

RUNWAY 9-27

ROCK SOUNDELEUTHERA AIRPORT

ROCK SOUND, THE BAHAMAS

Architecture

PASSERO ASSOCIATES

Engineering

www.passero.com

13453 N. Main StreetJacksonville, FL. 32218

LOT #2C ABUNDANT LIFE ROADP.O. BOX EE-16946

NASSAU, N.P. BAHAMAS

ROCK SOUND, ELEUTHERA AIRPORTP

PP

Rejuvaseal Treated

Rejuvaseal Untreated

CHARITY INITIATIVES 2014At the end of each striping or maintenance project, Bahamas Striping Group of Companies tries to find and develop avenues through which they can build and renew their commitment and legacy of giving and service.

This year, Bahamas Striping Group of Companies extended an invitation to charities during the year to provide these entities $1,000.00 with striping services in their parking lots at their various locations. Recipient charities were The Bahamas Humane Society, The Cancer Society, and The Salvation Army.

Bahamas Striping Group of Companies Training Manager, Brian Bostock, guides summer employee Levard Fox, as he stripes the parking lot at The Bahamas Humane Society.

The job is complete. The Bahamas Striping staff along with Training Manager, Brian Bostock, and President, Atario Mitchell,get the final approval from Mr. Percy Grant, Bahamas Humane Society Shelter Manager

The Bahamas Striping Group of Companies hosted The Hope Centre's Shock Treatment Program in a rap session about staying on the right side of the law and the importance and benefits of being focused and setting goals.

The young men from The Hope Centre's Shock Treatment program are fully engaged as President of Bahamas Striping Group of Companies talks to them about his experience and his regrets about being on the wrong side of the law.

Basketball court striping services was donated in Nassau, Grand Bahama and San Salvador for a total of 8 basketball courts in 2014.

At a time when there are frequent discussions on the lack of specified skills in the talent pool in the Bahamas, Bahamas Striping Group of Companies is a company that believes that training is vital to any company that aims at progressing.

Caribbean Pavement Solutions, a subsidiary of Bahamas Striping Group of Companies, in its relocation process of its manufacturing facility to Grand Bahama, conducted several training exercises focusing on repairing pot holes with its locally manufactured cold patch product to Local Government Representatives.

Potholes and surface deterioration causes roads to become hazardous, resulting in accidents, vehicular damage and unfortunately sometimes tragic injury and loss of life. The Government of The Bahamas is increasingly challenged to maintain the roads, thus, road maintenance will remain a never ending problem.

Alfred Williams of the Eight Mile Rock Township indicated that the training they have received was necessary because as a community they can get the local residents involved along with local government and repair the abundance of potholes.

President, Atario Mitchell said, “The training exercises which Caribbean Pavement Solutions plans to conduct, will show participants how to correctly install the cold patch product correctly. The overall goal is to allow the local representatives to purchase the equipment and product from our factory and they can begin to repair the potholes themselves. It’s more about empowering individuals with the hopes that they too will become entrepreneurs and begin to make an impact in the community and the economy.”

Mr. Mitchell also added that the manufacturing plant in Grand Bahama will will also serve as a training ground for the striping and manufacturing of cold patch asphalt, concrete products, and RejuvaSeal airport runway rejuvenators. In order to remain competitive in an increasingly global market, training coupled with exposure is absolutely necessary to sustain the viability of our industries. Bahamians are not just competing amongst themselves, have to now understand the importance of empowering and training their own more than ever. They have to become more self reliant and create their own industries so that they too can gain economic power and be significant contributors to diversifying the Bahamian economy.

Commitment To Training

Soldier Road Industrial Park,Nassau, Bahamas(242) 394 7777

www.bahamasstriping.com

Caribbean Pavement Solutions recently applied Rejuvaseal, a pavement rejuvenator to a strip of road in Eleuthera. The darker side was treated with Rejuvaseal which instantly rejuvenated

and preserved the integrity the asphalt surface.