May 6, 2012

Corporate Overview to SMART Meeting

KMC is a fully functional mining company (without resource ownership)

CapabilitiesOperations

Site preparationInfrastructure developmentOverburden removalProduction miningHaul road constructionReclamation activities

MaintenanceMine EngineeringMine PlanningSafetyHuman Resources

We will adhere to the highest Safety and Environmental standards.We will uphold the highest levels of business ethics.

We will provide value

to our customers.

We will be proactive

leaders.

We will offer reliable

service.

We will use teamwork

to get the job done.

KMC will demonstrate excellence within the following guiding principles:

Adhering to these guidelines and simply “doing things right”

will result in the safety, productivity, profitability, and job security we require. Dedicated people are our strength and together we will strive for excellence in all that we do.

3rd generation privately-owned Canadian business

Operating since 1949Began in southern Saskatchewan and Alberta constructing roads and irrigation ditches

Contract mining since 1973KMC performed initial site development at Syncrude Base Mine operations and extended to all surface oil sands mines in the Fort McMurray regionCompleted projects throughout western Canada in coal, uranium, zinc, gold, and diamonds

Corporate OfficeSatellite OfficeMine Development

Uranium

DiamondsZinc

Gold

Coal

Oilsands

2008 Triwest Capital Partners invested in KMC to provide significant capital to fund future growth

2010 – Purchased Cross Oilsands Contracting

Added over 70 pieces of heavy equipment diversifying fleet to be more competitive in Medium/Light Civil

2010 – Expanded business to surface coal mines in southeastern British Columbia and western Alberta with Teck Coal

Overview of KMC Overview of KMC ––

Current Customers Current Customers

Industry leader in developing and promoting a safe work place

Active member of the Partners in Reduction program in partnership with WCB

Multiple safety awards:Certificate of Recognition for workplace health and safety management systemsSyncrude – President’s Safety Award (2004, 2010)IOL Western Canada Major Projects Group – Guiding Spirit Award (2010, 2011) (K2 Mining)Winner of Suncor’s 4th Annual President’s Operations Excellence Award for leadership in safety (2006)

Implementation of Safety Management System in 2011 and introduced Zero Harm program across the company.

ZERO HARMCommunication

RiskAssessment

Near Miss

&Hazards

HazardIdentification

Education

Unionized workforce represented by Union of Operating Engineers, Local 115 (Elk Valley) & Local 955 (Ft. McMurray) but have flexibility to work non-union within owner’s policies

Positive, cooperative relationship with no work stoppages

Approximately 900 employees

Equal opportunity employer

Promote local employment as a priority and use regional/national labour to support operations

Promote relationships with First Nations for employment and business opportunities

Focus on training and development of employees to compete in tight labour environments

Support corporate and employee involvement in community activities

Active participation in industry initiatives for workplace safety and productivity

• KMC provides site preparation, overburden removal, ore mining, dyke construction, road construction and reclamation services for oil sands and coal producers using an extensive fleet of heavy mining equipment

Over 100 haul trucks; in excess of 250 pieces of heavy mining equipment

• KMC services its customers from a head office in Edmonton and field offices on the Suncor, Syncrude and Fording River sites

KMC also has facilities in place at Kearl with its joint venture partner Peter Kiewit

Overview of KMC Overview of KMC ––

AssetsAssets

KMC self-performs all maintenance functions

Strategic use of suppliers for warranty and specialized services

KMC has developed strategic relationships with major equipment suppliers

Komatsu/SMS EquipmentKMC was instrumental in the development of Komatsu’s large hydraulic shovel line – Demag H685, Demag H740

Caterpillar/FinningKMC participated in introduction of large haul trucks (200T) andsupport equipment (dozers)Developed a shared risk management strategy for equipment components

Integrated enterprise system to control and report on company functions

Payroll, Maintenance, Accounts Payable/Receivable, Inventory, Purchasing

MaintenancePlanning – Components, PM’s, ServicingCosts – Work Orders, Labour/Parts/SuppliesMachine Health – Wireless VIMS, Tire status, Hose information chips

Operations (Production/Maintenance)Job Costs using Standard CostsLabour, equipment, and parts costs on site basis

Focus on utilization of assets to maximize company performance

Internally developed Production System using an open architecture database that allows for unlimited reporting flexibility

Sophisticated data management system to monitor and control mobile assets across multiple sites

Collect shift operating hours (operating, idle, standby, maintenance) and production statistics in near real time

Production statistics available during shift for action by front-line supervision

Shift reports on machine efficiency, labour productivity, and standard cost against targets

Developed cross-functional groups of KMC Management to focus on strategic initiatives

Asset Management

Business Returns and Growth

Customer Relations

High Performing Employees

Operational Excellence

Safety

Long relationship with Bridgestone and Kal Tire

Assisted in development of ultra-size tires in oilsands

Multi-year contract for supply of tires that allows for growth in truck fleet

Annual allocation of Michelin tires

Active in development and trial of alternative supply

Requirement for flexibility in tire sizes and compounds

Focus on tire life (successful incentive program company-wide has produced significant increases)

• Managed to overcome tire shortage of 2005-2008 through improved tire life

• Maintained new improved life over 6 years

50% Increase

Canadian Natural Resources –

Horizon MineInitial site drainage and dewatering

of plantsiteDry rental of mining equipmentSupporting maintenance programReview of process flow and

materials handling of rejects

Other Significant Projects

Oil Sands – all surface oil sands mines from site development to operationsCoal – Northeast BC, Alberta; overburden removalUranium – northern Saskatchewan; reclamationZinc – Yukon; overburden removal Diamonds – NWT; crushing/sizing of oreGold – northern BC; placer miningMaintenance – northern Alberta; shovel rebuilds for customer

Imperial Oil –

Kearl Oil

Sands ProjectEarthworks and initial mine

developmentJoint Venture with Peter

Kiewit SonsSite grading, construction

of starter dyke and opening cutContinuing into Expansion

PhaseSignificant improvement in

safety and environmental impact

Suncor Energy –

Light and Heavy Civil Works

Multi year contractOverburden removal – started 2002; over 130 million BCM of material

movedReclamation servicesRoad/dyke construction

Syncrude Canada –

Light and Heavy Civil Works

Multi year contractActive on site since 1973Overburden removalReclamation servicesRoad Construction

WorleyParsonsCord –

Aurora Tailings Management

Site grading Road constructionSite services for duration of project (road maintenance, snow removal

etc.)

Teck Coal –

Fording River

Started June 2010Pit bottom mining of coal seam

along with overburden removalManagement of a remote

workforce

Teck Coal –

Cardinal River

Rental of a PC5500 shovelSupporting maintenance program

Teck Coal –

Greenhills

Swift Creek Diversion ProjectRealignment of Swift Creek away

from Greenhills spoilsEnvironmentally sensitive projectOther potential projects

Corporate history of safe operating performanceExperienced in the development and operation of projects in challenging and remote locationsLong term, stable service providerAvailable equipment, tires and successful labour strategyCapacity to provide necessary capital to support project

Questions?