CAPABILITY STATEMENT

VAT Registration Number: 924G000707 Page 2 of 8

AFRICAN UNDERGROUND MINING SERVICES

African Underground Mining Services (AUMS), established in 2007, offers clients a full suite of underground mining services from consulting, feasibility, management and planning through to mine development and production, with one of the most modern mechanised fleets of self-maintained underground mining equipment in Africa. AUMS is a 50/50 joint venture between Ausdrill Limited (ASX listed) and Barminco Limited. Ausdrill Limited has been operating in Africa since 1991. Through the AUMS joint venture, Ausdrill’s wholly owned subsidiary African Mining Services (AMS) provides over 15 years of operational and logistical experience in Africa. AMS provides surface contract mining and exploration drilling services, along with logistics and supply throughout Africa. Barminco is one of Australia’s largest underground mining contractors with over 15 operating contracts throughout Australia, bringing the equipment and know-how to the AUMS joint venture. Barminco also operates independently at Centamin’s Sukari Hill project in Egypt. Both AUMS joint venture partners have an impressive client list comprising some of the world’s largest miners including Barrick Gold, AngloGold Ashanti, OZ Minerals, Xstrata Copper, Vedanta Resources (Copper Mines of Tasmania), Newmont, Gold Fields and IAM Gold along with mid-tier Australia-based companies such as Mincor and Western Areas. The joint venture partners bring expertise in Australian underground mining standards to Africa, providing AUMS with hands-on African experience alongside a dedicated focus on world’s best practice. Currently, AUMS is operating at Randgold Resources’ Gara and Yalea gold mines in Mali, Kinross Gold’s Akwaaba Deeps and Paboase gold mines and Newmont’s Subika gold mine in Ghana, and Nantou mining’s Perkoa Zinc mine in Burkina Faso. AUMS has been approached by a number of potential new clients and is actively assessing projects in several other African countries. It is fast becoming one of the largest specialised underground mining contractors on the continent. AUMS is committed to global best practice standards and productivities by utilising modern equipment and implementing the building blocks of African Employee development by imparting expertise and experience. AUMS is an unlisted private company. The current board members are: John Muir, Chairman – Barminco Limited Ronald Sayers, MD – Ausdrill Limited Peter Stokes, CEO – Barminco Limited Chris Tuckwell, COO – Ausdrill International Peter Bryant, CFO – Barminco Limited Jose Martins, CFO – Ausdrill Limited On the ground in Africa, AUMS has a senior management team comprising of: Glenn Heard, General Manager Kevin Flynn, Operations Manager Clayton Jones, Operations Manager

VAT Registration Number: 924G000707 Page 3 of 8

AUMS board members and senior staff have combined experience of over 200 years in the mining industry, including essential experience in Africa. CORE ACTIVITIES UNDERGROUND MINING AUMS’s core business includes the following services and skills;

SERVICES SKILLS Jumbo development and mining Development and production blasting Loading and trucking Bogging and remote bogging Long hole production drilling Ground support Hand held mining Shotcrete and fibrecrete Diamond drilling ITH drilling

Narrow vein mining - handheld and mechanised Mechanised mining including:

o Long hole stoping o Sub level caving o Cut and fill mining o Room and pillar mining

High speed horizontal development Mobile diamond drill grade control rigs Directional diamond drilling from underground

locations V 30 slot rising

These services can be offered on a contract basis structured as:

Schedule of rates Fixed and variable Cost plus Joint venture, profit sharing or similar arrangements.

MINE MANAGEMENT SERVICES AUMS has expertise in the following fields:

Mine management Mine design Conceptual/feasibility studies Geology Surveying.

PROJECT ACTIVITIES AUMS has the capability of providing a total mining service to clients including mine management with statutory management, geological control, survey control and mining skills and equipment. SAFETY, TRAINING AND QUALITY MANAGEMENT AUMS has been proactive in developing and improving safety, health and environment policies, training and associated procedures. In order to be competitive and to improve productivity and standards, AUMS has recognised the need to have an integrated management system in place. To ensure its system meets these requirements, AUMS has adopted Barminco’s systems, which are certified to AS/NZS ISO 9001, Quality Management Systems; AS 4801-2000, Occupational Health and Safety Management Systems; and AS/NZS ISO 14001:1996, Environmental Management Systems. Employees are continually assessed on all training requirements, and processes and procedures are reviewed on a regular basis to ensure all personnel receive the training necessary to complete their job safely. AUMS has entered into a partnership with Registered Training Organisations and trains all personnel to the Australian National Standards.

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JUMBO DEVELOPMENT A significant proportion of AUMS’s business is underground mine development utilising rubber tyred, diesel engine powered equipment, commonly referred to as jumbo development. Development equipment consists of a jumbo drill, charge-up vehicle and a load-haul-dump (LHD) unit (loader). State of the art equipment provides high productivity rates and low per unit maintenance costs. Jumbo drills are all electric powered, hydraulic operated and vary in size with single boom and twin boom models available. They are equipped to a high standard to provide operators with a better working environment and improved safety features. AUMS’s operators are trained to the highest level with years of expertise to achieve maximum productivity. PRODUCTION DRILLING AND CHARGING In addition to development work, AUMS provides mine production services consisting of production or long-hole drilling, charging and blasting. AUMS’s drill rigs are electric-hydraulic or diesel-hydraulic, capable of hole sizes from 57mm to 102mm and larger if required. AUMS has drill rigs capable of drilling down-holes as well as up-holes to approximately 40 metres in length. Tube drilling techniques are used for larger diameter holes where accuracy is important. Modern drill rigs are equipped with computerised laser alignment instruments to ensure drilling accuracy. Modern high-tech explosives are utilised in all blasting operations to ensure optimum fragmentation and minimal ore loss and dilution. Engineers are available for drill and blast design and optimisation. LOADING AND TRUCKING An integral part of the mining process be it development or production, is the loading and transport (trucking) of broken rock to designated stockpiles. This is achieved with the LHDs and a fleet of trucks specifically built for underground mines. All units are diesel powered rubber tyred machines. Loader sizes range from 1.5 to 9 cubic metre machines, catering for a variety of underground heading sizes. Truck capacities vary according to the mine dimensions and range from 20 tonne to 60 tonne payloads. Where mining methods require non-entry mining techniques, remote control LHDs are utilised in the bogging process to ensure personnel are not exposed to hazards. Line-of-sight remotes are in use, however AUMS prefers to use the safer and more productive tele-remote systems. UNDERGROUND DIAMOND DRILLING AUMS operates an underground diamond drilling division for exploration and definition of ore resources. A fleet of Boart-Longyear LM electric-hydraulic diamond drills is maintained along with a vehicle mounted LM rig specifically for grade control drilling, where set up times are critical to maintain high productivities. AUMS also offers directional drilling technology to reduce costs and increase productivities for deep exploration holes or where accuracy is paramount. All core sizes are available along with state of the art hole survey and core orientation techniques to ensure the highest quality of geological information is provided. VERTICAL DEVELOPMENT AUMS has the capability, equipment and expertise to develop rises and shafts by several different methods. These include ladder rising, longhole (or VCR) rising and V30 slot rising using an ITH rig. The company also provide other forms of vertical development through sub-contract arrangements. MAINTENANCE

AUMS has well established maintenance procedures, which are adhered to by very competent workshop teams.

Equipment is serviced in accordance with original equipment manufacturers’ (OEM) recommendations however, on analysis of operating conditions and failure frequencies, service times may be modified.

Electrical work, be it installations or maintenance, is considered to be a specialist skill in underground mining. All electrical work is therefore contracted out to suitably qualified and competent electrical contractors.

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SUPPLY

AUMS has a number of global supply contracts with major suppliers of both equipment and consumables to ensure low cost and timely supply to all our operations, thereby reducing costs and increasing availability and productivities, and resulting in a net gain for all shareholders.

COMMUNITY/INDUSTRY COMMITMENT

AUMS is committed to supporting local communities and industry by imparting specialist knowledge and experience. The company is currently involved or working towards the following initiatives:

Continued training of the workforce, as an integral part of maintaining and delivering high quality and cost effective mining services

Training and empowerment of the local workforce at all levels and across all disciplines through: o Providing scholarships for employee dependents through secondary education o Apprenticeship programs o Supervisory personnel gaining statutory mining qualifications e.g. mine captain, blast control o Graduate mining engineering program in association with local tertiary institutions, whereby

graduates get the hands on experience required to become attuned to world’s best practices o Post graduate program for current employees o Information sharing programs between local and Australian tertiary educational facilities e.g.

Partnership between the University of Mines and Technology in Ghana and the West Australian School of Mines

Preferentially supporting local industry where possible Working with clients to assist in the development of the local communities by providing practical support Membership of local industry organisations and institutes such as Chamber of Mines.

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AUMS - CURRENT AND PAST PROJECTS

OPERATION CLIENT COMPANY LOCATION STAFF DURATION PRODUCT ACTIVITY REFEREE

CURRENT

Akwaaba Deeps Gold Mine

Kinross Gold Corporation

AUMS Ghana 231 6 years Au Underground development and production

Subika Gold Project

Newmont Ghana Gold Limited

AUMS Ghana 99 4 years Au Underground development, production and diamond drilling

Paboase South Gold Mine

Kinross Gold Corporation

AUMS Ghana 101 3 years Au Underground development

Perkoa Zinc Mine

Nantou Mining Burkina Faso SA

AUMS Burkina Faso

157 2 years Zn, Au Underground development and diamond drilling

Gara Gold Mine

Randgold Resources Ltd

AUMS Mali 301 3 years Au Underground development

Yalea Gold Mine

Randgold Resources Ltd

AUMS Mali 282 3 years Au Underground development

PAST

Bibiani Gold Mine

Central African Gold Ghana

AUMS Ghana 43 6 months Au Underground development

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BARMINCO – CURRENT PROJECTS

OPERATION CLIENT COMPANY LOCATION STAFF DURATION PRODUCT ACTIVITY REFEREE

Sunrise Dam Gold Mine

AngloGold Ashanti Ltd

Barminco Western Australia

221 13 years Au Underground development and production

Wallaby Gold Mine

Barrick Gold of Australia

Barminco Western Australia

38 3 years Au Underground development

Rubicon Gold Mine

Barrick Gold of Australia

Barminco Western Australia

48 3 years Au Underground development

Renison Tin Mine

Bluestone Mines JV

Barminco Tasmania 130 3 years Sn, Cu Underground development and production

Sukari Gold Mine

Centamin Plc Barminco Egypt 163 4 years Au Underground development

Mount Lyell Copper Mine

Copper Mines of Tasmania Pty Ltd

Barminco Tasmania 200 3 years Cu, Au, Ag Underground development and production

Agnew Gold Mine

Gold Fields Ltd Barminco Western Australia

165 6 years Au Underground development and production

Dugald River Mine

MMG Limited Barminco Queensland 43 2 years Fe, Pb, Mn, Zn,

Ag

Underground development

Flying Fox Nickel Mine

Western Areas NL

Barminco Western Australia

179 4 years Ni Underground development and production

Spotted Quoll Nickel Mine

Western Areas NL

Barminco Western Australia

45 3 years Ni Underground development

Ernest Henry Copper Mine

Xstrata Copper Barminco Queensland 171 6 years Cu Underground development

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BARMINCO - CURRENT DIAMOND DRILLING CONTRACTS

Barrick Gold of Australia Plutonic Gold Mine Western Australia

Barrick Gold of Australia Darlot Gold Mine Western Australia

Barrick Gold of Australia Lawlers Gold Mine Western Australia

Barrick Gold of Australia Wallaby Gold Mine Western Australia

Barrick Gold of Australia Rubicon Gold Mine Western Australia

Xstrata Copper George Fisher Copper Mine Queensland

Western Areas NL Flying Fox Nickel Mine Western Australia

Kalgoorlie Consolidated Gold Mines Pty Ltd Mt Charlotte Gold Mine Western Australia

CLIENT OPERATION LOCATION