Investor Presentation

CONFIDENTIAL

FORACO

Investor Presentation

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 1 BALANCED & GLOBAL GEOGRAPHICAL FOOTPRINT



Solid and balanced presence in all major mining markets across five continents allowing to optimize opportunities and mitigate market risks

5

2 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

4

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

3 STRONG TRACK-RECORD IN ADAPTING COST STRUCTURE

ACKNOWLEDGED BARRIERS TO ENTRY



Capacity to maintain EBITDA margin above 11% (average EBITDA during the 2013-2016 major downturn)



Majors require strong referencing, deep knowledge of procedures and good safety statistics



Swift adaptability of global cost structure supported by a lean and efficient organization



Enhanced technical and R&D capabilities



Geographical footprint (Brazil, Russia)

2

II

Mineral Drilling Market

Delivering Drilling Solutions Across the Value Chain DRILLING ACTIVITY AT EVERY STAGE OF THE MINE LIFE CYCLE Foraco offers tailor-made solutions through the whole mining cycle

$ Volume Exploration Geotechnical

Drilling Activity

Feasability study

Metallurgical sampling Dewatering

Life of mine 79%

10x Prefeasability study

1x

Mining construction

Mining revenue FY2019

Life of mine extension

Greenfield

2 to 3 years

2 to 3 years

EXPLORATION Geologically complex formations Harsh and Remote environments

Source: Management

2 to 3 years

2 to 5 years

5 to 30 years

DEVELOPMENT Define quality and quantity of resource Geotechnical analysis Bulk sampling to validate metallurgical process

Brownfield 12%

Time

PRODUCTION Delineating ore body Controlling or obtaining water Life of mine extension projects

Greenfield 9%

MINING SERVICES

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  Tender procedures follow a very rigorous process

MONITORING

 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 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:

 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: EBITDA margin 30.0% 20.0% (1)

10.0%

Foraco 15%

Capital Drilling GeoDrill 5% 3% Orbit Garant 11%

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

RIGS UTILIZATION RATE

Major Drilling 32% Boart Longyear 34%

FY 2016

FY 2017

FY 2018

FY 2019

33%

36%

45%

48%

26%

31%

36%

39%(2)

32%

43%

46%

42%(3)

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

5

World Mining Destinations FORACO’S GEOGRAPHICAL FOOTPRINT IN THE TOP WORLD MINING DESTINATIONS Country shares in the worldwide market Foraco presence

Foraco regional headquarters Foraco group headquarters Foraco’s FY19 revenues by region

Russia 5%

Canada 15%

Europe / Russia 18%

Europe and mainland Asia (excl. Russia and China)

North America 34%

8%

US 9%

China 5%

Brazil 17%

Pacific/SE Asia South America 28%

South America (excl. Brazil) 6%

Africa 13%

3%

Africa 7%

Asia Pacific 18%

Australia 14%

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

6

Steady Recovery of Global Exploration Expenditures Since 2016…

EVOLUTION BY COMMODITY

EVOLUTION BY GEOGRAPHY $34.9 b in 2012

2019 US$ Billion $35 $30

Exploration is very much a "boom-orbust" business

$25

$23.7 b in 2008

$30

$15

$15 $10

$3.2 b in 2002

$0 1975

1980 Other

1985 Coal

1990

1995

Iron Ore

2000 Diamonds

$3.2 b in 2002

$5 2005 Uranium

2010

2015

Base Metals

Gold

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

The business cycle bottomed out in 2016, expenditures are expected to progressively rise to reach an equilibrium which should occur in 2023

$0 1975

1980

Rest of World

FSU + Europe

1985 China

1990 Western Europe

1995 Africa

2000 Pacific / SE Asia

2005

2010

Latin America

USA

2015 Canada

Australia

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

 

$11.2 b in 2016 $11.3 b in 2019

$20

$11.2 b in 2016 $11.3 b in 2019

$5

$23.7 b in 2008

$25

$20

$10

$34.9 b in 2012

2019 US$ Billion $35

Between 2012 and 2016 expenditures fell by 68%



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

 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

7

…with Gold and Base Metals Remaining the Main Targets in the Coming Years FORACO’S REVENUES

BY COMMODITY

FORECAST EXPENDITURES AND DRILLING BY COMMODITY IN US$BN (2018-2023) % Change

+19%

6.0

Iron Ore 7%

+37%

+36%

Coking Coal 9%

6

5.0

5

4.0

4

3.0

5.9

Water 11%

5.0

2

1.0

1

0.0

0 2018A

2023E Gold

Base Metal 39%

Precious Metal (Gold) 30%

3

2.0

Uranium and other 4%

4.6 3.4

2018A

2023E

Base Metal

0.6

0.8

2018A

2023E Iron Ore

FY2019 Revenues: US$205m

 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

8

III Foraco Business Overview

Foraco – The 3rd Largest Mineral Driller Worldwide COMPANY OVERVIEW World’s third largest fleet of mineral drilling rigs (62 rotary, 194 diamond, 18 combination, 28 Underground)

KEY FINANCIALS (US$M) & OPERATIONAL KPIS in US$m, FYE 31/12 Revenue

Broadly-spread customer base including all the major mining companies

% Growth EBITDA % Margin

Strong and experienced management team and employees with a significant stake (53%) in the business

EBIT % Margin Net Debt xEBITDA

2016A

2017A

2018A

2019A

CAGR 16A-19A

115.2

135.7

180.0

205.4

21.3%

(16.4%)

17.9%

32.6%

14.1%

7.1

12.1

18.1

29.3

6.2%

8.9%

10.0%

14.3%

(14.4)

(6.7)

1.1

11.0

(12.5%)

(5.0%)

0.6%

5.4%

103.3

122.7

130.4

128.9

14.6x

10.1x

7.2x

4.4x

302

302

302

302

International workforce with a proven track record in geologically complex formations and extreme terrain

Rigs % Utilization rate

33%

36%

45%

48%

1,946 people at the end of 2019

Em ployees (at YE)

1,536

1,526

1,882

1,946

Significant expertise in destructive and nondestructive 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

60.4% nm 7.7%

0.0% 8.2%

SHAREHOLDING STRUCTURE Management 43% Float 47%

Listed on the Toronto stock Exchange (“FAR”) and headquartered in Marseilles (France) Source: Management

Employees 10%

9

Acquisitive Strategy to Reach a Global Scale 2007

2008

2009

ACQUISITION HISTORY

January ‘07: Connors Drilling

September ‘08: North West Sequoia

April ‘09: Mosslake Drilling Services

GEOGRAPHY ADDED

North America

North America

Australia

RIGS ACQUIRED

22

3

8

NUMBER OF RIGS

108

115

119

2010

2012

2011

April ‘10:

April ‘12:

April ‘10:

November‘12:

EDC: Russia AD: South America

Servitec: Brazil JND: Australia

5

50

180

90

192

15

308 Servitec & JND

433 66

HISTORIAL PERFORMANCE REVENUE ($M)

Source: Management

301 103

128

119

2007A

2008A

2009A

368

164 2010A

2011A

2012A

10

A Diversified Footprint Covering All Mining Markets DIVERSIFIED FOOTPRINT AND BUSINESS Revenues by Commodity (FY19)

Iron Ore Uranium and Other 7% 4% Coking Coal 9% Base Metal Water 39% 11%

Precious Metal (Gold) 30%

STRONG CUSTOMER RELATIONSHIPS Revenues by Customer (FY19) Juniors 12%

Majors & Multinational Institutions 88%

 Broad spread of commodity exposure  No dependence upon any particular resource Revenues by Geography (FY19) Africa 7% Europe / Russia 18%

North America 34%

Asia Pacific 18%

South America 23%

 Presence in all major mining markets Source: Management

 High quality, broadly-spread customer base including all the major mining companies 11

A High Quality Customer Base – Focus on Top 5 Clients OVERVIEW OF CONTRACTS Contribution to Sales

1

FY19

FY18

Start of contractual relationship

14%

11%

2006

Average duration of contracts

# rigs currently deployed with client

Top 5 Clients 45%

Total FY19 Sales: US$205m

3 years

Top 5 Clients 38%

Total FY18 Sales: US$180m

26 Customer Satisfaction Survey

2

12%

8%

2009

4 years

11

3

8%

8%

2012

2 years

15

4

6%

4%

2012

1 year

18

5

5%

7%

2006

3 years

9

Yes 85.1%

Do you intend to work again with Foraco ?

Yes 84.9%

Would you recommend Foraco to peers ?

 No dependence at the global level  Foraco enjoys long term relationships with key clients

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



Director & Executive Officer since incorporation



Over 30 years of industry experience



Over 35 years of management experience



Based in Singapore



Based in Marseilles (France)

Timothy Bremner SVP North America

Olivier Demesy VP Brazil

Denis Simonin VP Africa

Peter Jacobs SVP Asia Pacific

To be named VP South America

Fabien Sevestre Deputy CFO

Andreï Popov VP Russia and CIS

Thierry Merle VP Europe & Middle East

13

… Relying on Experienced International Workforce…

EVOLUTION OF # OF EMPLOYEES AT YE 1,882 1,536

1,946

1,526

SAFETY RECORD Last Time Injury Rate Trend (per 200,00 hours) 1.05 0.63

2016A

2017A

2019 BREAKDOWN

BY GEOGRAPHY Europe / Russia 18% North America 34%

Source: Management

2018A

0.45

2019A

2019 BREAKDOWN

BY FUNCTION

SG&A Indirect / Other 1% 7% Africa Indirect 7% Facilities Asia Pacific 11% Direct 18% Project Direct Project Production Support 59% South 22% America 23%

0.39

0.37

0.33

0.39

0.50 0.19

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

Total Recordable Injury Frequency Rate (per 200,00 hours) 3.34 2.39

2.23

2.17 1.58

1.66

1.64

1.57

1.97

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

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 Drill Rig per Age (% of total fleet)

302 Drill Rigs

•

62 Rotary

•

194 Diamond

•

18 Combination

•

28 Underground 51%

39%

10%

<5

5 < Age < 10

>10

 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 16

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

LATEST INNOVATION: WIRELESS REMOTE CONTROLLED RC MWD RIG 

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

EXPERTISE IN DEEP DIRECTIONAL DRILLING…



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

… A TECHNIQUE WITH MULTIPLE ADVANTAGES    

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

17

IV Historical Key Financials

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

433 66

Revenue CAGR FY16-19: +21.3% Servitec & JND

368 248 186

FY12

FY13

FY14

138

115

136

FY15

FY16

FY17

180

205

FY18

FY19

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

23%

EBITDA CAGR FY16-19: +60.4% Gross Profit CAGR FY16-19: +90.9%

Restated from one off costs of US$21m in FY13, the EBITDA rate reached 24% 15%

11%

8%

1% FY12

FY13

8%

14%

9%

10%

FY17

FY18

4%

4% FY14

16%

6%

FY15 EBITDA Margin

Source: Management

15%

13%

18%

FY16 Gross Profit Margin

FY19

18

Historical Performance in US$m, FYE 31/12

CAGR 16A-19A

2016A

2017A

2018A

2019A

115.2 (16.4%)

135.7 17.9%

180.0 32.6%

205.4 14.1%

21.3%

Gross Profit % Margin

4.6 4.0%

14.4 10.6%

21.9 12.2%

32.1 15.6%

90.9%

EBITDA % Margin

7.1 6.2%

12.1 8.9%

18.1 10.0%

29.3 14.3%

60.4%

EBIT % Margin

(14.4) (12.5%)

(6.7) (5.0%)

1.1 0.6%

11.0 5.4%

n.m.

EBITDA Var. of Working Capital Other (2) Cash from operations

7.1 (5.8) (1.3) 0.0

12.1 0.0 (0.1) 12.0

18.1 (6.8) 0.1 11.3

29.3 (0.6) 28.7

60.4%

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 Employees

302 1,536

302 1,526

302 1,882

302 1,946

0.0% 8.2%

INCOME STATEMENT Revenues % Growth

(1)

CASH FLOW STATEMENTS

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

n.m.

19

Key Competitors Comparison 735.2

REVENUES (IN US$M)

238.8

228.0

253.2

286.1

320.6

205.4

739.1

770.2

774.6

(1)

642.4

137.7

115.2

135.7

180.0

2015A

2016A

2017A

2018A

2019A

2015A

2016A

2017A

2018A

2019E

2015A

2016A

2017A

2018A

2019E

6.2%

8.9%

10.0%

14.3%

3.5%

3.7%

6.1%

9.3%

12.6%

(15.7%)

0.2%

(5.0%)

7.0%

14.7%

13.1%

114.0

EBITDA (IN US$M)

(1)

54.1 18.1

7.1

12.1

18.1

2016A

2017A

2018A

29.3 8.4

8.3

15.4

2015A

2016A

2017A

26.5

40.5

1.6 (36.6)

2015A

2019A

2018A

2019E

(115.3) 2015A

2016A

675.8 576.4

NET DEBT (IN US$M)

89.3

103.3

122.7

2015A

2016A

2017A

130.4

2018A

2017A

598.9

2018A

2019E

682.6

723.2

2018A

2019E

(2)

128.9

2019A

2015A

2016A

2017A

2018A

2019E

(27.6)

(18.7)

(5.6)

(12.1)

(17.0)

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

(3)

2015A

2016A

% of sales

2017A

20

Backlog Evolution and Roll-Out Total at 01/01 FY

FY

FY + 1

FY + 3

Roll-out

201

2018 (IN USDM)

FY + 2

128 41

32 -

Total 266

134

2019 (IN USDM)

78 32

24

32

24

269

2020 (IN USDM)

Source: Management

158

55

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

 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

 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

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.

23