1. NEW INNOVATIVE SURFACE ENGINEERED DOWN-THE HOLE HAMMER 1 Presentation for Drill & Blast 29-April 2015 By Greg Hooper Executive Director – R&D LaserBond Limited

2. Introducing… New paradigm in DTH Hammer technology exploiting innovative surface engineering and advanced mechanical component design. ✔ 3+ Times Longer Life Compared to major brand “high performance” DTH Hammers ✔ 7.5% Total Drilling Cost Saving Overall benefit of increased component wear life on cost of drilling. (Excludes gains from WH&S and Pen-rate.) ✔ Significantly Increased Penetration Rates Simple, powerful mechanical components that hit harder and faster. Drill & Blast 2015 PROVEN NEW PERFORMANCE BENCHMARK

3. WEAR LIFE EXTENSION EXPERTS LaserBond’s 25 years of wear-life improvement knowledge applied to DTH Hammer Drilling. Surface Engineering Experts “Surface Engineering” modifies the working surface of components to improve life and performance. LaserBond’s technology reduces the operating cost in many capital intensive industries. R&D activities focus on extending machinery life using advanced metallurgy and application processes. Two patent applications in 2014. Extensive (and independent) field testing proved design. New DTH Hammer range embeds technology. Other rock cutting and high-wear products in trials now. Drill & Blast 2015 Scanning Electron Microscope X-ray Map of a LaserBond® coating

4. RE-ENGINEERING DTH HAMMERS Redesign of high wearing components to extend life and improve cost performance. Three Key Advances Dramatic increase in service life with surface modification and component redesign. High performance metallurgy differs for best abrasion / erosion. Airflow management from drive chuck to backhead stub. Rib design extends wear life in grip areas. Mechanical life of moving parts improved to support longer wear-life. Metal galling targeted with modified wear surfaces. Simple design with moving parts in contact. Focus on impact energy transfer to improve pen-rate. Weight of piston Higher pressure > higher frequency Drill & Blast 2015 Metal galling and crack initiation

5. INDEPENDENT DTH HAMMER PRODUCT TRIAL Xtega (independent mining consultancy) controlled field trial of LaserBond technology in an operating mine. Controlled Mine Conditions Commercial drill operator under sole control of Xtega Documented trial specification to ensure comparability. Skilled drilling supervisor employed control trial Hard-rock metalliferous mine site Selected due to highly abrasive mineral species abundant in host rock. Indicated rock strength 90 – 200 MPa. Identical multiple drilling rigs working same bench Four new D65 Atlas Copco running identical settings. All hammers running within manufacturers standards; Comparable hammers and new bits changed same time. Drill & Blast 2015 Atlas Copco D65 drill rigs on test site

6. STANDARDISED DRILLING PARAMETERS Drilling trials controlled by independent site supervisors to isolate the benefits of extended wear life. Identical Drilling Parameters Operating Specification Standardised Feed & Rotation Pressures to drilling contractor’s standard operating procedures. Operators and drill rigs rotated. Air Pressure & Oil / Lubrication to OEM specifications –Air; 25 bar (range 24 - 26 Bar) –Lubrication; 1.2 – 1.4 litres/hr Wear Measurement Locations Top chuck, 3 on hammer barrel, 2 on drive chuck, 1 on bit. Specific Ground Determined by Xtega site supervisor. Three standard pen-rate tests performed. Operated Until Failure (by Wear limit or Mechanical) Drill & Blast 2015 Measurement Points

7. “IRREFUTABLE” PROOF OF WEAR-LIFE EXTENSION Statistical analysis of ‘paired hammers’ isolated and proved gain is from the technology. 100%* Confidence in Results 800 Data Points Measured / Set. Each measured 60 x @ 7 locations Comparison test continued until standard hammer failed. LaserBond Units Kept Going to Failure Data collection continued at each shift. Drill & Blast 2015 * Statistical confidence of result exceeds 99%. (P-value <0.001) Well known brands had wear- life failure at 3,449 – 3,651 mts LaserBon d continued to 10,000 + m

8. SUPERIOR METALLURGY All trial hammers show graphic differences in wear rates and pattern of wear. Almost No Wear Hammer B vs Hammer A Start Size 97.8 v 97.7 mm At 3,500 m 92.4 v 97.4 mm Hammer D vs Hammer C Start Size 97.8 v 97.5 mm At 3,500 m 90.3 v 97.3 mm 1/10 th of Wear Rate Standard failed due to wear at 3,348 – 3,651 m. LaserBond over 10,000 m Drill & Blast 2015 “Paired” Comparison at 3500 mts: Failed Competitor vs LaserBond

9. WEAR PATTERNS TELL THE STORY Hammer C LaserBond® Technology Hammer Internal Failure @ 11,459m Drill & Blast 2015 Hammer D; Barrel Diameter Exceeded Wear Limit Hammer C; Withdrawn from service, Mechanical fault Hammer D Best Standard Hammer Wear Failure @ 3,651 m Blue indicates as-new vs as worn image, (to scale) Backhead : worn 6.3 mm Casing: worn 6.2 mm Drive Chuck: worn 15.6 mm @ Failure = 3,651m Blue indicates as-new vs as worn image, (to scale) Backhead : worn 6.3 mm Casing: worn 6.2 mm Drive Chuck: worn 15.6 mm @ Failure = 3,651m Red indicates as-new vs as worn image, (to scale) Backhead : worn 1.5 mm Casing: worn 0.8 mm Drive Chuck: worn 1.4 mm @ Failure =11,459 m Red indicates as-new vs as worn image, (to scale) Backhead : worn 1.5 mm Casing: worn 0.8 mm Drive Chuck: worn 1.4 mm @ Failure =11,459 m

10. NEW DESIGN DRIVE CHUCK Drill & Blast 2015 Hammer C LaserBond® Design Hammer D Standard Drive Chuck Simple parallel construction with extra thickness for wear. High wear impacts both hammer and bit life. Typically life < 2,000 m. Two required per 3500m hammer life. Tapered design with LaserBond protection to manage abrasive wear from drill bit onto hammer casing arising from high bailing velocity. Reduces wear. Spline wear becomes limit. Typical life > 7,000 m. LaserBond - Wear after 7,500 m Standard - Wear after 1,800 m

11. INTERNAL MECHANICAL FAILURE Trial period extended to run LaserBond units until they failed mechanically. LaserBond did not “wear out” Standard Worn Out 3,500 m Withdrawal from service when OD of casing was below OEM ‘wear limit’. LaserBond 10,000+ m Withdrawn from service due to failure of internal mechanical components. Mechanical Improvements Extended wear life changed failure mode to internal components. Future improvements planned. Drill & Blast 2015 * All hammers measured at 3,500 m or at failure if prior. 11,459 m 3,651 m Wear Difference

12. HIGHER PENETRATION RATE Trials did not specifically target faster drilling, however increased penetration rates observed. 20% Faster Achieved at Trial Site Identical Rock Test. Prior to and during trial all hammers tested in same location (ie identical rock) to assess pen-rate differences. Consistently Faster. Measured significantly higher instantaneous penetration rate; +20%. It may be a geo-tech site specific result. Further development trials are underway. Mechanical Design. Efficient transfer into impact energy. Drill & Blast 2015

13. LESS DOWNTIME SAFER WORKING Long wear-life components deliver other benefits to industrial operations. Less Component Wear = Less Overhead Cost 60% Reduction in Manual Handling Fewer hammer changes reduces exposure to lifting hazards. Less opportunity for crush or pinch point injuries. Save 30 min Downtime Less hammer changes are required. Fewer mid hole changes. Less Inventory Reduce consumable stock value and less units required. Reduced handling and transport. ✔ Environment Tick Surface engineered components last longer, saves energy Less scrapped parts. Drill & Blast 2015

14. DRILLING COST SAVINGS Likely overall commercial impact on drilling function in open pit mining was assessed. 7.5% Cost Saving. Minimum. Assumptions Based on industry assumptions –Rig Amortisation @ 30,000 hrs –Fuel @ $1.0/lt & 65 lt/hr –Labour @ $80/mhr –R&M Est $320K/yr/rig –Wide range of ‘Other’ costs independent of Hammer Consumables Bit life standardised. Hammer cost & life achieved. 7.5% Total Drilling Cost Saving Excludes added benefit of increased pen-rate. Excludes OH&S and downtime savings. Drill & Blast 2015

15. NEW DOWN-THE-HOLE HARD ROCK HAMMER RANGE LaserBond DTH Hammers are now in production. A-Series products are available LBL-100 (4”) Available now LBL-125 (5”) Available now LBL-150 (6”) In phase 2 field testing LBL-200 (8”) In phase 1 development Other Specifications Working Pressure: 10 - 25 bar in warranty. Capable to 35 bar. Drive Splines: DHD, QL and COP Drill Bits Complementary range of bits available. Download full specifications on website Drill & Blast 2015

16. MORE TEST SITES WANTED Drill & Blast 2015 Development trials continuing with extended size range and different mine site conditions. Geographic, geotechnical and commercial site conditions. Seeking Mine Sites using 3”, 6” & 8” DTH Hammers Phase 2 field trials with 4” and 5” are well advanced. Trialing required for range of geographic & geotechnical sites. Commercial impact of cost savings mandatory. Hard Abrasive Rock Welcome LaserBond® DTH Hammers are designed specifically for very abrasive aggressive geotechnical conditions. Field Development Agreements Established lease agreement offers drilling company savings from long-life, at cost of standard high performance hammer. No constraint on using current drilling parameters. Confidential field reports required. All hammers must return to LaserBond for lab analysis.

17. MORE ABOUT LASERBOND Drill & Blast 2015 Advanced LaserBond® Cladding Systems for High Wear LaserBond first introduced the technology in 2001 High strength welded bond without thermal decomposition. Investing in additional high power, high capacity systems. Thermal Spraying to Create High Performance Surfaces HP HVOF creates extremely high particle velocity for depositing high quality wear resistant layers Electric Arc Spraying for low cost rebuilding of components. Plasma Arc creates a very high temperature plume for depositing high melting temperature materials, like ceramics. Large Capacity Advanced Manufacturing Robotics, CNC and conventional equipment. Lean manufacturing principles applied throughout. ISO 9001 ; 2008 and moving to PAS 99 standard covering quality, WH&S and environmental accreditation. Metallographic Laboratory & Skilled Metallurgists Equipped with Scanning Electron Microscope. Laboratory supports R&D and QA with technical analysis.

18. CONTACT US Contact Greg Hooper or Dan Leadley @ LaserBond Address LaserBond Limited Sydney : 2/57 Anderson Road Smeaton Grange NSW 2567 Australia Adelaide: 112 Levels Road Cavan SA 5094 Phone Corporate Office +61 2 4631 4500 Greg: 0403 048 875 Dan: 0423 507 792 National 1300 527 372 Email products@laserbond.com.au Greg: gregh@laserbond.com.augregh@laserbond.com.au Dan: danl@laserbond.com.au danl@laserbond.com.au Web www.laserbond.com.au Looking forward to improving your bottom line. ISO 9001 : 2008 # A1023AUS