Capability Statement

GDSGlobal Drilling Systems

For information regarding this report and services offered by GDS contact:

GLOBAL DRILLING SYSTEMS LTDPhone +61 2 4039 8900 Email enquiry@gdsltd.netWebsite gdsgroup.com.au

© Global Drilling Systems (GDS) 2015

OUR TEAM

SHANE BOLTON Technical Manager Shane.Bolton@austdrilling.com.au +61 481 454 934

ADAM HELLYER Drilling Services ManagerAdam.Hellyer@austdrilling.com.au +61 439 131 350

MATT DYSON Business Development Managermattd@gdsltd.net +61 421 520 265

TROY VITNELL Chief Executive OfficerTroy.Vitnell@austdrilling.com.au +61 439 321 201

- Completed supply contracts of specifically designed and engineered long hole inseam and cross measure drill systems to South32’s Appin coal operations.

- Complete overhaul and service facility for coding of drilling and related equipment.

ASIA

Global Drilling Systems Limited

- The groups’ international arm overseeing Directional Drill systems supply and services to international markets.

- Joint venture partner to our operations based in China.

- Engineering and third party auditing services, previously representing Glencore and Cook mining in their product sourcing in Asia.

CHINA

Shanxi Jinding Gaobao Drilling Company Ltd

- Joint venture Company with one of China’s leading mining groups, Jincheng Anthracite Mining Group (JAMG), based in Shanxi province in China.

- Providing sales, service and manufacturing of complete directional drilling systems for the domestic mining markets in China.

- Contract Directional Drilling in China.

- Engineering consultation and product development to the Joint venture’s parent company.

CAPABILITY STATEMENT

Founded in 2010, GDS Group of companies has quickly developed into one of the major suppliers of

drilling equipment, parts and services within the underground coal mining industry, both

domestically and abroad. The group consists of the following entities:

INTRODUCTION | Company Overview

AUSTRALIA

Australian Drilling Systems Pty Ltd- Supply of directional drilling services, including rig systems, equipment, and staffing covering all aspects of drilling, including hole design and implementation.

- Current operations based at Whitehaven coal operations at Narrabri, with previous contracts at Peabody’s Wambo and Vale’s Integra operations.

- Hiring of directional drill rigs on short to long term contracts. Equipment currently on long term hire to South32’s Appin coal operations.

Geosteer Pty Ltd

- Manufacture and supply of Inseam

directional drilling survey tools and associated equipment to Australian and overseas markets.

- Current HDD Survey Tool approved for use

providing accurate hole tracking data.

ADSE Pty Ltd- Supply of engineering equipment and services to the mining industry.

- Manufacture of complete drilling systems and associated consumables.

- Multiple rig systems built in Australia, have been exported to Europe and Asia.

- Continual product development allowing ADSE to support the contract drilling services of ADS with the latest advancement in products and backup service capability.

GDS Group of companies has flourished over the past five years to become a world leader in the supply and development of directional drilling equipment. A selection of company highlights along

this path of growth include:

COMPANY HIGHLIGHTS

JOINT VENTURE AGREEMENTSigning of Joint Venture agreement in

2011 with Shanxi Jincheng Anthracite Coal Mining Group (JAMG) to locally produce and supply Directional Drilling Systems, parts and services to China.

LONGHOLE DRILLING OPERATIONSFirst domestic drilling services contract signed with Peabody’s Wambo coal operations. Longhole drilling up to 1200m completed on site.

TAPPING INTO RUSSIAN MARKETDesign and supply of Modular

Directional Drilling System to Russian oil mining company Lukoil in 2011 for use in their underground operations. Currently tendering for further systems for Russian market.

SERVICING INTEGRA

Drilling services contract carried out at

the Hunter Valleys’ Integra coal operations commencing in 2012.

NARRABRI COAL OPERATIONSDrilling services contract with Whitehaven’s Narrabri coal operations commenced in April of 2012.

Currently have 3-4 rigs operating on a 24/7 rotation, carrying out long hole and compliance drilling at Whitehaven’s Narrabri coal operations.

SETTING RECORDS To date have drilled reliably in excess of 380,000 metres including a record total in the month of April, 2015 of approximately 23,000 metres.

SOURCING & PROCURING EQUIPMENTThird party QA auditing services, based in China, assisting company’s such as Glencore and Caledon (Cook Mining) in local sourcing and procurement of longwall equipment including Pans, maingate and tailgate assemblies, complete BSL assemblies and roof support supply. Last project completed completed late 2014.

EQUIPMENT SUPPLY TO SOUTH32South32 (formally BHP) supply contract signed for development and supply of specifically designed inseam and cross measure rig systems.

Currently 4 rig systems delivered to South32 with forecasts of further supply.

Rig hire to South32’s Appin coal operations with 2 rigs in operation since 2013.

GDS Group has a suite of equipment that has proven to deliver, satisfying and exceeding the

requirements of its clients and positioning it well for future development. The GDS directional drill

rig range has the advantage of matching the capacity of its competitors while remaining a more

compact, nimble machine, engineering and designing equipment to meet clients specific needs and offering a complete drilling project solution.

PRODUCT RANGE

1538 TRACK MOUNTED DIRECTIONAL DRILL RIG 0838 TRACK MOUNTED DIRECTIONAL DRILL RIG

2040 TRACK, RAIL OR SKID MODULAR RIG 2338 CROSS MEASURE DIRECTIONAL DRILL RIG

2338 TRACK MOUNTED DIRECTIONAL DRILL AND POWER PACK

2338 TRACK MOUNTED RIG DIRECTIONAL DRILL

TEST RIG DASHBOARD 3D PRINTING TEST RIG ASSEMBLY

Global Drilling Systems (GDS) draws on the collective experience of individuals who have been

involved with the development of underground directional drilling and the underground mining

industry in general for the past 50 years. GDS’ core

business is contract underground inseam directional

drilling.

We specialise in directional drilling for gas and water

drainage, exploration, barrier proving, compliance

coring and related gas/water drainage tasks. GDS is

equipped with the latest in touch screen survey systems and engage a registered mine surveyor

to prepare all flight plans, process and validate recorded data and produce end of hole reports.

Our intention is to position ourselves as one of the market leaders in the underground directional

drilling sector. We structure our project teams to address the client’s specific priorities, to control risk and deliver on time and budget. We have created a culture that demands of people to actively

seek opportunities for improvement in performance.

As the business has matured and we have streamlined our project teams in Australia, we are

looking to expand into neighbouring markets. We have identified a number of personnel both internal and external to our organisation, who are well placed to lead an expansion in these

markets.

DESIGN AND TESTINGGDS employs fulltime draftspersons and engineers to assist in the design and testing of all new

and existing equipment. Whether it be the design of a new drill rig to clients specific needs, or ongoing testing of our existing equipment prior to dispatch, the work carried out is extensive. GDS

has the capability to complete initial design, carry out FEA testing, modelling (both electronically

and physically through 3D printing), through to the manufacturing process.

All new and overhauled equipment is fully tested prior to dispatch. This is done using GDS’

purpose design and built test centre, which simulates the drilling process by applying torque and

pressures to the rig under operating conditions. The results are then transferred to the external

control console which records all information and graphs operating results. This test unit can be

used for a range of rigs and offers a comprehensive commissioning report for the end user.

SERVICES OVERVIEW

GDS is committed to providing safe,

accurate and efficient inseam drilling solutions to the underground coal

mining industry.

GDS offers a range of local and overseas procurement and project management services, tailored

to meet client needs. Whether it is a direct purchase from us or managing a project on scheduled

rates, through necessity, the time we dedicate to any project is substantial.

Through our existing network, GDS covers everything from initial supplier search and qualification, interpretation, through design approval, quality surveillance, shipping and delivery to site.

In addition to this, GDS can supply all associated drilling equipment including rods, bits, motors

and associated tooling.

ENGINEERING AND PROCUREMENT

GDSHunter Valley 152 Mitchell Avenue Kurri Kurri NSW 2327 AustraliaWollongong Lot 2 Marley Place Unanderra NSW 2526 AustraliaQueensland 15 Titanium Drive Paget QLD 4740 Australia

Global Drilling Systems

GDS | NEWCASTLE HEAD OFFICEph +61 2 4039 8900 www.gdsgroup.com.au

Level 2 21 Bolton Street Newcastle NSW 2300EQUIPMENT | SALES | SERVICE | ENGINEERING | PROCUREMENT