Investor Presentation

FORACO

C O N F I D E N T I A L

Table of Contents

I EXECUTIVE SUMMARY 1

II MINERAL DRILLING MARKET 3

III FORACO BUSINESS OVERVIEW 9

IV HISTORICAL KEY FINANCIALS 18

V STRATEGY GOING FORWARD 22

I Executive Summary

Executive Summary

Foraco International SA (“Foraco”):

Is the third largest global mineral driller in the world

Provides services across 22 countries and 5 continents

Grew via a series of successful targeted acquisitions and organic growth

Foraco’s revenue base is closely linked to the evolution of exploration expenditures driven by

commodities prices

After a period of slowdown between 2012 and 2016, the market is steadily recovering

Market studies tend to confirm that this positive trend will continue before reaching an equilibrium

in 2023

Foraco’s revenue exceeded market growth in 2017, 2018 and 2019 with +18%, +33% and +14%

growth respectively

Foraco is well positioned to benefit from the continuing recovery of the drilling services activity

given:

its new innovative services

the commodities it addresses

its long-standing presence and strong positioning in key markets

its capacity to adapt

1

Key Highlights

BALANCED & GLOBAL GEOGRAPHICAL

FOOTPRINT

Solid and balanced presence in all

major mining markets across five

continents allowing to optimize

opportunities and mitigate market risks

1

DIVERSIFIED END MARKETS &

ESTABLISHED LONG-TERM CUSTOMER

RELATIONSHIPS

Diversified commodities portfolio

mainly split between precious metals and

base metals to mitigate risks on

commodities

High quality customer base including

all the blue-chip mining companies

(“Majors”) reducing the client risk

2

ACKNOWLEDGED BARRIERS TO ENTRY

Majors require strong referencing,

deep knowledge of procedures and

good safety statistics

Enhanced technical and R&D

capabilities

Geographical footprint (Brazil, Russia)

3

STRONG TRACK-RECORD IN ADAPTING

COST STRUCTURE

Capacity to maintain EBITDA margin

above 11% (average EBITDA during the

2013-2016 major downturn)

Swift adaptability of global cost

structure supported by a lean and

efficient organization

4

SEASONED MANAGEMENT TEAM

Experienced management team and

employees with a significant stake

(53%) in the business

Proven ability to lead and reshape the

company during market downturns

(no senior level turnover during down

cycle) and upturns

5

2

II Mineral Drilling Market

Delivering Drilling Solutions Across the Value Chain

Foraco offers tailor-made

solutions through the whole

mining cycle

Greenfield9%

Brownfield12%

Life of mine79%

Dri

llin

gA

cti

vit

y

$ Volume

10x

1x

2 to 3 years 2 to 3

years

2 to 3

years

2 to 5

years

5 to 30

years

Time

Exploration

Dewatering

Geotechnical

Metallurgical sampling

Feasability

study

Pre-

feasability

study

Greenfield

Mining

constructionLife of mine extension

Mining

revenue

FY2019

MINING

SERVICES

EXPLORATION

Geologically complex

formations

Harsh and Remote

environments

DEVELOPMENT

Define quality and quantity of resource

Geotechnical analysis

Bulk sampling to validate metallurgical

process

PRODUCTION

Delineating ore body

Controlling or obtaining water

Life of mine extension

projects

DRILLING ACTIVITY AT EVERY STAGE OF THE MINE LIFE CYCLE

Source: Management 3

Contracts: Characteristics, Monitoring and Risks

CHARACTERISTICS

Contracts typically used to range between 3 months and 1 year, during the

downturn. Today, more and more clients ask for the optionality to extend their

ongoing contracts (Rio, BHP, Teck…). Since 2017 and the market recovery, the

duration of the contracts now ranges between 1 year and 3 years

Invoicing is based on work performed and issued monthly

Contracts are based on (i) meterage and price per meter (ii) hourly rate for

stand-by time

MONITORING

Tender procedures follow a very rigorous process

Management considers that monitoring of contracts is key and implemented a

strong financial reporting system

Monitoring the profitability of all its contracts is performed on a monthly

basis

RISKS

The Company is a pure player in the domain of drilling and does not

perform the diagnostic and analysis of the geotechnical samples which it

extracts. This role is performed by the clients thus limiting the risk of

litigation

There is a no history of claims

Contracts are signed by local entities and are denominated in local

currencies. Local costs are mainly in the same currency as the contract

4

Overview of Competitive Landscape

Sources: Annual reports, Companies, Brokers, Factset estimates

Notes: (1) Figures calendarized for Major Drilling at year ended December, 31; average USD/CAN exchange rate over the period / As per broker estimates for Boart Longyear as FY2019

annual report is not available yet

(2) As of July 2019

(3) As of June 2019

DRILLING ACTIVITIES PROFITABILITY

The market is highly fragmented with a small group

of globally active companies

Foraco has grown to become the 3rd largest global

driller with around 5% share of the world’s mineral

drilling fleet

Main global competitors rig count:

Boart Longyear

34%

Major Drilling 32%

Foraco 15%

Capital Drilling

5% GeoDrill 3%

Orbit Garant 11%

Foraco is outperforming the market in term of

profitability. The EBITDA for the period FY 2013 to FY

2019 as a percentage of revenue is as follows:

(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Major Drilling Boart Longyear Foraco

FY 2016 FY 2017 FY 2018 FY 2019

33% 36% 45% 48%

26% 31% 36% 39%(2)

32% 43% 46% 42%(3)

RIGS UTILIZATION RATE

EBITDA margin

(1)

5

World Mining Destinations

South America (28%), Canada (15%) and Australia (14%) are the key mining markets

Foraco is well positioned in the top world mining regions with presence in Canada, in South America, in

Europe and Russia, Africa and in Australia, regions representing 83% of the worldwide spending

FORACO’S GEOGRAPHICAL FOOTPRINT IN THE TOP WORLD MINING DESTINATIONS

US

9% China

5%

Europe and mainland Asia

(excl. Russia and China)

8%

Pacific/SE Asia

3%

Russia

5% Europe / Russia

18%

Africa7%

Foraco presence

Foraco group headquarters

Foraco regional headquarters

Country shares in the worldwide market

Foraco’s FY19 revenues

by region

Asia Pacific

18%

South America (excl. Brazil)

6%

North America34%

Brazil17%

Source: S&P « World Exploration Trends » - March 2019

Canada

15%

Australia

14%

Africa

13%South America

28%

6

Steady Recovery of Global Exploration Expenditures Since 2016…

EVOLUTION BY COMMODITY EVOLUTION BY GEOGRAPHY

The business cycle bottomed out in 2016, expenditures are

expected to progressively rise to reach an equilibrium which

should occur in 2023

Relative market shares for the various regions will remain

at current levels over the next decade. Latin America, Canada

and China are the regions with the highest potentials

Due to the specificity of the market and onerous foreign

investment rules, very little of the exploration in China is

done by Western companies

Note: Includes expenditures on non-bulk and bulk mineral (i.e. bauxite, coal, and iron ore) exploration

Forecast is based on a long-run price (inconstant 2018 US Dollars) of $1300/oz Au, $3.00/lb Cu,

$7.00/lb Ni, $1.00/lb Zn, $0.80/lb Pb, $60/lb §U3O8 $50/t iron ore fines and $45 & $140/t for thermal &

met coal

Note: Includes expenditures on non-bulk and bulk mineral (i.e. bauxite, coal, and iron ore) exploration

After the market downturn between 2013 and 2016, the drilling industry is recovering and is now in an upward

cycle

MinEx estimates that global exploration expenditures will rise from $11.3bn in 2019 to $14.9bn in 2023

This equates to a 32% increase in real terms over the period

Source: MinEx Consulting October 2019

$0

$5

$10

$15

$20

$25

$30

$35

1975 1980 1985 1990 1995 2000

2019 US$ Billion

2005 2010 2015

$11.3 b in

2019

$11.2 b in

2016

$34.9 b in

2012

$3.2 b in

2002

$23.7 b in

2008

Other Coal Iron Ore Diamonds Uranium Base Metals Gold

$11.3 b in

2019

$11.2 b in

2016

$34.9 b in

2012

$3.2 b in

2002

$23.7 b in

2008

$5

$10

$15

$20

$25

$30

$35

2019 US$ Billion

$01975 1980 1985 1990 1995 2000 2005 2010 2015

Rest of

World

FSU +

Europe China Western

Europe Africa Pacific /

SE Asia Latin

America USA Canada Australia

Between 2012

and 2016

expenditures

fell by 68%Exploration is very

much a "boom-or-

bust" business

7

…with Gold and Base Metals Remaining the Main Targets in the Coming Years

FORECAST EXPENDITURES AND DRILLING BY

COMMODITY IN US$BN (2018-2023)

FORACO’S REVENUES

BY COMMODITY

Gold and Base Metal continue to be the two main targets for drilling and will account for 83% of the meters

drilled in 2023

These commodities represent a significant amount of Foraco FY2019 revenues (c.69% of Foraco FY2019)

Source: Management, MinEx Consulting Report

Base Metal 39%

Precious Metal (Gold)

30%

Water11%

Coking Coal9%

Iron Ore7%

Uranium and other4%

FY2019 Revenues: US$205mGold Base Metal Iron Ore

5.05.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2018A 2023E

3.4

4.6

0

1

2

3

4

5

6

2018A 2023E

0.6 0.8

2018A 2023E

+19% +36% +37%% Change

8

III Foraco Business Overview

Management43%

Employees10%

Float47%

Foraco – The 3rd Largest Mineral Driller Worldwide

COMPANY OVERVIEW

SHAREHOLDING STRUCTURE

KEY FINANCIALS (US$M) & OPERATIONAL KPIS

World’s third largest fleet of mineral drilling rigs (62

rotary, 194 diamond, 18 combination, 28 Underground)

Broadly-spread customer base including all the major

mining companies

Strong and experienced management team and

employees with a significant stake (53%) in the

business

Listed on the Toronto stock Exchange (“FAR”) and

headquartered in Marseilles (France)

International workforce with a proven track record in

geologically complex formations and extreme terrain

1,946 people at the end of 2019

Significant expertise in destructive and non-

destructive drilling, as well as proprietary drill rig

design capabilities

Specialized in drilling in harsh environments and

isolated locations including arctic, desert and

mountainous terrain and thus has acquired a specific

know how in remote locations logistics

in US$m, FYE 31/12 2016A 2017A 2018A 2019A

CAGR

16A-19A

Revenue 115.2 135.7 180.0 205.4 21.3%

% Growth (16.4%) 17.9% 32.6% 14.1%

EBITDA 7.1 12.1 18.1 29.3 60.4%

% Margin 6.2% 8.9% 10.0% 14.3%

EBIT (14.4) (6.7) 1.1 11.0 nm

% Margin (12.5%) (5.0%) 0.6% 5.4%

Net Debt 103.3 122.7 130.4 128.9 7.7%

xEBITDA 14.6x 10.1x 7.2x 4.4x

Rigs 302 302 302 302 0.0%

% Utilization rate 33% 36% 45% 48%

Employees (at YE) 1,536 1,526 1,882 1,946 8.2%

Source: Management 9

Acquisitive Strategy to Reach a Global Scale

HISTORIAL

PERFORMANCE

REVENUE ($M)

103 128 119164

301368

66

2007A 2008A 2009A 2010A 2011A 2012A

433

January ‘07:

Connors Drilling

September ‘08:

North West

Sequoia

April ‘09:

Mosslake

Drilling Services April ‘10:

April ‘12:April ‘10:

ACQUISITION

HISTORYNovember‘12:

3RIGS ACQUIRED 8 5 50 9022 15

AustraliaEDC: Russia

AD: South AmericaNorth AmericaNorth America

GEOGRAPHY

ADDEDServitec: Brazil

JND: Australia

115NUMBER OF RIGS 119 180 192108 308

2007 2008 2009 2010 2011 2012

Servitec

& JND

Source: Management 10

A Diversified Footprint Covering All Mining Markets

DIVERSIFIED FOOTPRINT AND BUSINESS STRONG CUSTOMER RELATIONSHIPS

Revenues by Commodity

(FY19)

Revenues by Geography

(FY19)

Revenues by Customer

(FY19)

Majors & Multinational Institutions

88%

Juniors12%

Asia Pacific18%

South America

23%North America34%

Europe / Russia18%

Africa7%

Broad spread of commodity exposure

No dependence upon any particular resource

Presence in all major mining markets High quality, broadly-spread customer base including all

the major mining companies

Base Metal 39%

Precious Metal (Gold)30%

Water11%

Coking Coal9%

Iron Ore7%

Uranium and Other4%

Source: Management 11

A High Quality Customer Base – Focus on Top 5 Clients

OVERVIEW OF CONTRACTS

Contribution to

Sales Start of

contractual

relationship

Average duration

of contracts

# rigs currently

deployed with

clientFY19 FY18

14% 11% 2006 3 years 26

12% 8% 2009 4 years 11

8% 8% 2012 2 years 15

6% 4% 2012 1 year 18

5% 7% 2006 3 years 9

1

2

3

4

5

No dependence at the global level

Foraco enjoys long term relationships with key clients

Top 5 Clients38%

Top 5 Clients45%

Total FY18 Sales:

US$180m

Total FY19 Sales:

US$205m

Yes 85.1%

Yes 84.9%

Do you intend to work again

with Foraco ?

Would you recommend

Foraco to peers ?

Customer Satisfaction Survey

Source: Management 12

A Seasoned and International Management…

Daniel Simoncini

Chairman and Co-CEO

Jean-Pierre Charmensat

Co-CEO and CFO

Director & CEO since incorporation

Over 30 years of industry experience

Based in Singapore

Director & Executive Officer since incorporation

Over 35 years of management experience

Based in Marseilles (France)

Timothy Bremner

SVP North America

Denis Simonin

VP AfricaThierry Merle

VP Europe & Middle East

Peter Jacobs

SVP Asia Pacific

Olivier Demesy

VP Brazil

Fabien Sevestre

Deputy CFO

Andreï Popov

VP Russia and CIS

To be named

VP South America

13

Direct Project

Production 59%

Direct Project Support

22%

Indirect Facilities

11%

Indirect / Other1%

SG&A7%

… Relying on Experienced International Workforce…

EVOLUTION OF # OF EMPLOYEES AT YE SAFETY RECORD

3.34

2.39

1.58 1.66 2.17

1.64 1.57

2.23 1.97

2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A

Last Time Injury Rate Trend

(per 200,00 hours)

Total Recordable Injury Frequency Rate

(per 200,00 hours)

1,536 1,526

1,882 1,946

2016A 2017A 2018A 2019A

1.05

0.63 0.45 0.39 0.37 0.33 0.39

0.50

0.19

2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A2019 BREAKDOWN

BY GEOGRAPHY

2019 BREAKDOWN

BY FUNCTION

Asia Pacific18%

South America

23%

North America

34%

Europe / Russia18%

Africa7%

Source: Management 14

… and Retained by a Stable Human Resource Policy

Sustainable Long Term

Contracts

Engaged and Empowered

Employees

Stable Employment

Opportunities

Class Leading HSEC (Health,

Safety, Environment and

Community) and Productivity

Investment in Skills and

Knowledge

15

A Versatile Drill Fleet

GLOBAL DRILL RIG FLEET

A new rig has an operational life of 15 to 20 years and can be rebuilt every 10 years, regaining another decade

of market life

In 2019, the company invested c.7% of its revenue in capex

10%

39%

51%

<5 5 < Age < 10 >10

Drill Rig per Age (% of total fleet)

302 Drill Rigs

• 62 Rotary

• 194 Diamond

• 18 Combination

• 28 Underground

16

Foraco is a Recognized Innovator and a Leader in Deep Directional Drilling

Pioneered first wireless remote RC rig with fully featured

Measure While Drilling (MWD)

Collects multiple drilling data points use by both drillers and

geologists

Currently unmatched by any other drilling competitor

Awarded 2017 DMIRS Engineering Award of Merit

2019 has introduced next generation of remote RC

(functional isolation/electronic exclusion zones)

This innovation will reduce drill times and enhance crew

safety

… A TECHNIQUE WITH MULTIPLE

ADVANTAGES

Techniques and tools which allow to steer in 3D drilling

through hard rock in order to follow a preset 3D trajectory

JV setup between Foraco and the Continuous Wedging

Tool (CWT) to market and operate their tool in North America,

Brazil, and West Africa

Significant cost and time savings when exploring deep targets

Planned intersections with defined separation

Fewer constraints on rig locations

Less underground development during exploration phase

EXPERTISE IN DEEP DIRECTIONAL

DRILLING…

LATEST INNOVATION: WIRELESS REMOTE

CONTROLLED RC MWD RIG

17

IV Historical Key Financials

23%

15%

8%

13%

6%9% 10%

14%18%

1%4%

8%

4%

11%

15% 16%

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

EBITDA Margin Gross Profit Margin

Long-term Trend Has Been Driven by the Cycle of the Mining SectorLONG TERM TREND FY12-19 – REVENUE (IN US$M)

LONG TERM TREND FY12-19 – EBITDA (IN US$M) AND GROSS PROFIT MARGIN

368

248186

138 115 136180 205

66

433

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

Revenue CAGR FY16-19:

+21.3%Servitec &

JND

Restated from one off

costs of US$21m in FY13,

the EBITDA rate reached

24%

EBITDA CAGR FY16-19: +60.4%

Gross Profit CAGR FY16-19: +90.9%

Source: Management

18

in US$m, FYE 31/12 2016A 2017A 2018A 2019ACAGR

16A-19A

INCOME STATEMENT

Revenues 115.2 135.7 180.0 205.4 21.3%

% Growth (16.4%) 17.9% 32.6% 14.1%

Gross Profit 4.6 14.4 21.9 32.1 90.9%

% Margin 4.0% 10.6% 12.2% 15.6%

EBITDA 7.1 12.1 18.1 29.3 60.4%

% Margin 6.2% 8.9% 10.0% 14.3%

EBIT (14.4) (6.7) 1.1 11.0 n.m.

% Margin (12.5%) (5.0%) 0.6% 5.4%

CASH FLOW STATEMENTS

EBITDA 7.1 12.1 18.1 29.3 60.4%

Var. of Working Capital (5.8) 0.0 (6.8) (0.6)

Other (1.3) (0.1) 0.1 -

Cash from operations 0.0 12.0 11.3 28.7 n.m.

Capex (6.5) (9.5) (12.7) (12.5)

Free Cash Flow (pre interests and taxes) (6.5) 2.5 (1.4) 16.2 n.m.

Rigs 302 302 302 302 0.0%

Employees 1,536 1,526 1,882 1,946 8.2%

Historical Performance

Source: Management

Notes: (1) Includes amortization and depreciation expenses related to operations; (2) Excluding financial interests and taxes

(1)

(2)

19

REVENUES

(IN US$M)

EBITDA

(IN US$M)

NET DEBT

(IN US$M)

8.4 8.3 15.426.5

40.5

2015A 2016A 2017A 2018A 2019E

Key Competitors Comparison

137.7 115.2 135.7 180.0 205.4

2015A 2016A 2017A 2018A 2019A

238.8 228.0 253.2 286.1 320.6

2015A 2016A 2017A 2018A 2019E

735.2642.4

739.1 770.2 774.6

2015A 2016A 2017A 2018A 2019E

(115.3)

1.6

(36.6)

54.1

114.0

2015A 2016A 2017A 2018A 2019E

89.3 103.3 122.7 130.4 128.9

2015A 2016A 2017A 2018A 2019A(27.6) (18.7) (5.6) (12.1) (17.0)

2015A 2016A 2017A 2018A 2019E

576.4675.8

598.9682.6 723.2

2015A 2016A 2017A 2018A 2019E

Source: Management, Companies, Factset

Notes: Figures calendarized for Major Drilling at year ended December, 31; average USD/CAN exchange rate over the period

(1) As per broker estimates / LTM Jun. 2019 EBITDA of $79.5m; (2) As of Jun. 2019; (3) As of Oct. 2019

% of sales

0.2% (5.0%)(15.7%) 7.0%

18.17.1 12.1 18.1

29.3

13.1% 6.2% 8.9% 10.0% 14.3%

2015A 2016A 2017A 2018A 2019A

14.7%3.5% 3.7% 6.1% 9.3% 12.6%

(1)

(1)

(2)

(3)

20

Backlog Evolution and Roll-Out

Total at 01/01 FY FY FY + 1 FY + 2 FY + 3

2018

(IN USDM)

2019

(IN USDM)

2020

(IN USDM)

128

41 32

134

78

32

201

Total

266

24

Roll-out

-

158

5532

269

24

Source: Management 21

V Strategy Going Forward

Strategy Going Forward: 5 to 7 Year Plan –Positioned for Growth

Prepared for Up Cycle 3: 2020 and Forward

Take advantage of our strengths as market

recovers

Continue to focus on quality and safety

Continue to attract, motivate and retain best

employees

Continue to address all commodities

Leverage our presence in all significant

markets to reinforce our position

Continue to focus on profitable growth

Continue to monitor capex and working

capital requirements

Strengthen balance sheet:

Reorganize existing debt

Take the opportunity of solid economic

activity to generate significant cash-flows

Rebuild strong cash position and limit

debt to a reasonable level

22

Disclaimer

This presentation (the “Presentation”) has been prepared by Foraco. Neither this Presentation nor any information contained herein may be

used for any other purpose without the prior written consent of Foraco. This Presentation and its contents shall be kept strictly confidential and

not be disclosed to any person other than its intended recipients.

This Presentation has been prepared by Foraco on the basis of information provided by Foraco or in the public domain. It reflects prevailing

conditions as of this date, all of which are subject to change. In preparing this Document, Foraco has relied upon and assumed the accuracy and

completeness of all the information available.

In issuing this Presentation, Foraco does not undertake to provide the recipient with access to any additional information or to update this

Presentation or any other information provided in connection therewith or to correct any inaccuracies therein that may become apparent.

Recipient of this Presentation shall conduct its own review and analysis and should consult its own advisers.

This presentation is incomplete without reference to, and should be viewed solely in conjunction with an oral briefing provided by Foraco.

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