WORKFORCE COMPANY PROFILE by Workforce South Pacific

Company Capability & Profile Reline and Fixed Plant Maintenance Services

December 2014

WFSP-‐ COMPANY CAPABILITIES

Table of Contents OUR COMPANY CAPABILITIES

1. VISION & MISSION

2. COMPANY PROFILE

2.1 OVERVIEW 2.2 ORGANISATION STRUCTURE

2 2

3. MAINTENANCE CAPABILITY

3.1 MAINTENANCE EXPERTISE 3.2 RELINE MAINTENANCE 3.3 GENERAL MAINTENANCE

4 5 7

4. MANAGEMENT CAPABILITY

4.1 4.2 4.3 4.3

10 11 13 16

ADMINISTRATIVE CONTROLS OPERATIONAL CONTROLS QUALITY CONTROLS SAFETY MANAGEMENT

5. FINANCIAL MANAGEMENT

5.1 FINANCIAL CONTROLS

6. FUTURE GROWTH

6.1 STRATEGIC MANAGEMENT 6.2 REGIONAL PLANS

20 21

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

OUR COMPANY CAPABILITIES 1.

VISION & MISSION

Our Purpose: Workforce South Pacific (WFSP) provides quality maintenance services to leading mining operators across Papua New Guinea (PNG), the broader South Pacific and S.E.Asian regions, for Sag and Ball Mill relining and general (including fixed plant) maintenance. Our Strategic Goals:

v To grow our Sag and Ball Mill relining market share in PNG, the broader South Pacific and S.E.Asia regions by 100% over the medium term to 2015. v To increase our new business directions using our additional capabilities to grow additional revenue by 100% by 2015, within our primary market PNG. Our Vision: v To be sought after by customers, suppliers and employees alike, as the leading mining reline and general maintenance provider in the South Pacific, for mutual benefits and success. Our Mission:

Ø To provide "best practice" and incomparable Sag Mill and Ball Mill Relining services to the mining industry with Safety and Innovation at the fore. Ø To provide “best practice” and “incomparable” general (including fixed plant) maintenance services to the mining industry with Safety and Innovation at the fore. Ø To provide quality services to additional industries through our highly experienced and cost effective workforce and through our safety culture. Our Values:

v Integrity: to act in a manner which brings about respect and mutual trust towards each other v Commitment: to complete jobs on time, within budget, to our clients satisfaction v Safety: to ensure every day is a safe working day, without compromise v Resourceful: to be initiative and provide innovative solutions to issues that may arise v Committed: to be committed to "our vision", "our mission" and "our values" WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

COMPANY PROFILE

2.1

Overview

Workforce South Pacific (WFSP) provides specialist contract services to the mining industry for crusher (mill) relining and general (including fixed plant) maintenance. The company has operated on a global basis having performed reline and general maintenance servicing assignments in Papua New Guinea (PNG) and most recently in the Solomon Islands (SI) and Laos. WFSP is centrally located with close access to both domestic and international client markets to mobilize our reline and general maintenance services crews throughout PNG and abroad. This has provided WFSP with some competitive advantages across its value chain (logistics, costs, operational capabilities) and has allowed us to pass these advantages onto our mining clients. WFSP main objectives for the medium term (2014-‐16) include: • To continue growing our reline and general maintenance markets in PNG, the broader South Pacific and S.E.Asian regions. • Further improve our competitive advantages through creating cost efficiencies in our labor, logistics and operations. • Develop continuous improvements across our contract performances through consistent milestone attainments, reduced variations and disputes with clients and improving our OHS management capabilities. • Provide support to our commitments to growth through recruiting the best technical and general tradesmen and ensuring our new recruits are adequately trained and competent (to mine-‐site specific operations). • Maintain our commitment to superior maintenance services for our mining clients infrastructure through consistency in meeting contract milestones under time and cost KPI’s and with nil Lost Time Incidents (LTI’s). We have also recently established our strategic management framework to guide our operations over the medium term 2014-‐2016 including alignment of our maintenance and reline services to support our market growth goals. Key features include the creation of regional expansion plans for South Pacific and S.E.Asian regions, alignment of our operational segments into three major strategic business units, business wide adoption of total quality management principles and a commitment to implement increased localization strategies.

2.2

Organisation Structure

WFSP is a privately owned company established in 2010 by Managing Director Nigel Marshall and is fully nationalized and registered in Papua New Guinea (PNG). WFSP has its’ main office set up in Port Moresby (PNG capital) giving us a central location to ensure that we have the solid foundation to support our ongoing operations within the mining industry.

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

Contact details: Company contact

Phone number

ADMINISTRATIVE MANAGEMENT Nigel Marshall +675 7155 6857 (Managing Director) Chris Marshall (Business +675 7227 4392 Development Manager) Bruce Lowth (Operations +675 7398 1795 Manager) Marty Terry (Accounts Manager)

+675 7212 3136

Fax number

+675 323 7072

nigel@spworkforce.com.au

+675 323 7072

chris@spworkforce.com.au

+675 323 7072

bruce@spworkforce.com.au

+675 323 7072

marty@spworkforce.com.au

MAINTENANCE OPERATIONS George Boe (Mining +675 7392 5700 +675 323 7072 george@spworkforce.com.au Maintenance Manager) Site Supervisor OHS Supervisor Legal Name: WORKFORCE SOUTH PACIFIC LIMITED IPA Number (PNG): 1-‐78584 Section 1, Allotment 2, Portion 2467 C, Napanapa Road, PORT MORESBY, Location: Central Province, Papua New Guinea Postal Address: P.O. Box 127, BOROKO, NCD, PAPUA NEW GUINEA Web Site: www.spworkforce.com.au

Schedule of insurances: Insurance type Workers Compensation (PGK 5 million) Common Law Liability (USD 10 million) Personal Accident

Reference Southern Cross Assurance Limited Southern Cross Assurance Limited Southern Cross Assurance Limited Motor Vehicles-‐Third Party & NA Registration Equipment-‐Property NA

Status Expires 25th October 2015 Expires 25th October 2015 Expires 25th October 2015

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

MAINTENANCE CAPABILITY

3.1

Maintenance Expertise

WFSP recognises the critical inks between plant infrastructure performance, effective maintenance services, reduced costs and ultimate mining profitability. WFSP is able to provide clients with cost effective solutions across their entire mining maintenance programs including -‐ Preventive Maintenance, Predictive Maintenance, Corrective Maintenance and Situational Maintenance. We have provided specialist reline and general contract maintenance service capabilities to our clients for over four years, with most of our technical and trades crews having up to ten years prior experience. This degree of experience and expertise enables WFSP to create superior value to our mining clients: § Localised Advantages –Our reline and general maintenance crews have site-‐specific infrastructure and circuit knowledge enabling them to assist clients implement effective and targeted planned maintenance programs, to achieve operational and cost performance targets. § Maintenance Performance -‐ All our maintenance crews have a minimum 5 years’ experience in the mining industry (some supervisors over 10 years) and all crews have trade qualifications and relevant machinery-‐operating accreditations. We have proven capability to recommend and implement maintenance improvements that have reduced costs and delivered efficiency and reliability for our clients. § Planning Partner –Our demonstrated localized knowledge and expertise has enabled WFSP to assist our clients achieve improved preventative maintenance planning capabilities. We adopt a continuous improvement approach to prevent in-‐service failures by identifying the equipment components to be maintained, special tools, materials and equipment required to perform the task and frequency of maintenance. § Support Capability -‐WFSP supports our clients reline and general maintenance operations through our extensive database of skilled and experienced tradesmen. By utilizing lower cost skilled labor advantages in our PNG crews, we deliver effective mining maintenance capabilities to our clients along with quality assurance through our highly experienced supervisory leadership (Australian expats). § Safety Focused – We adopt a total commitment to Occupational Health & Safety (OHS) throughout our operations with all maintenance crews undergoing extensive safety training and inductions. Our maintenance crews carry their own hand held operating equipment and we supply all our operational workforce with mandatory PPE (Hi-‐Vis long sleeved shirts, long trousers/overalls, steel capped boots, helmets and safety glasses.

Client references: Client PNG-‐OK Tedi Mining Ltd PNG-‐OK Tedi

Person

Contact

Nicholas Pyke -‐ P: +675 6495210 Nick.Pyke@oktedi.com Manager-‐Mill Grinding John Parker -‐ Team P: +675 6493506 John.Parker@oktedi.com

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

Client Mining Ltd

Person

PNG-‐Porgera Mine – Barrick (Nuigini) Limited PNG-‐Morobe Mining Joint Venture Ltd PNG-‐Lihir Gold Limited PNG-‐Lihir Gold Limited Solomon Islands-‐ Gold Ridge Mining Ltd PNG-‐Simberi Gold Mine Laos-‐Phu Bia Mining Ltd

Contact

Leader – Mill Maintenance Mark Fleay-‐ Mill Forman – Mill Grinding Dave Wano -‐ Maintenance Superintendent Chris Portelli-‐ Process Coordinator Brett Hardwick-‐ Shut down coordinator Mark Lennon – Maintenance Superintendent Roger Boston Paul Paru – Senior Shutdown Planner

P: +675 5478012 mfleay@Barrick.com

P: +675 472 5100

david.wano@morobejv.com

P: +675 986 5571 chris.portelli@newcrest.com.au P: +675 986 5656

brett.hardwick@newcrest.com.au

P: +677 749 5284

Mark.lennon@stbarbara.com

Roger.Boston@stbarbara.com.au

P: +856 2022214008 Paul.Paru@pbm.panaust.com

3.2

Reline Maintenance

WFSP has operated on a global basis having performed reline maintenance servicing assignments continuously in PNG and more recently in Laos, Solomon Islands. We are also expanding to accommodate future mining clients throughout the Asia/Pacific region. WFSP has market dominance in its core territory of operations in PNG currently providing reline maintenance contracts to OK Tedi Mining and Lihir Gold. As a specialist relining maintenance contractor WFSP specializes in mill liner changes, new installations and decommissioning or dismantling at end-‐of-‐life equipment. WFSP provides specialist relining maintenance services for Sag and Ball Mills along with crusher and apron feeder rebuilds and our reline supervisors and leading hands are trained to the highest standards in safety and mill relining. All our reline crews include an accredited safety officer and many in the team have more than 10 years reline experience. General scope of services includes:

• Undertake scheduled shutdown SAG and Ball relines. • Attend emergency breakdowns on mills due to component failure. • General fixed plant maintenance through tradesmen/mechanical, fitters and boilermakers. • Supply operators for crane handling operations. • Regrind mill girth gear reversal work and change out. • Mill feed conveyor repairs. • Crusher maintenance. • Apron feeder maintenance.

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

WFSP labor crews will generally be comprised of the following skilled trades: SAG/Ball Mill Maintenance • Supervisors – Expats • Leading Hands – PNG • Reline Technicians – PNG • Crane Operators – PNG • Fork Lift Operators – PNG General and Fixed Plant Maintenance • Boilermakers/ Welders/ Fabricators • Plant Fitters/Machinists • Crane Operators • Franna Operators • Riggers • Belt & Rubber Repairers • Fork Lift Operators We have provided specialist reline maintenance contract services to clients in the mining industry both regionally (PNG, Solomon Islands) and globally (Laos) and this provides us with superior experience and expertise. WFSP reline maintenance services are able to apply these advantages to provide client benefits: Mill Optimisation – We recognise the economic costs that a drop in production caused by a long stoppage of the mill, scheduled or unscheduled can impose on our mining clients. WFSP is able to partner with our clients to implement continuous maintenance methodologies to achieve effective mill performance. This includes improvements to reline processes to reduce parts replacements and to optimize the mill profitability. Performance Excellence – WFSP also recognizes that wear of mill liners also influences the grinding performance and mineral recovery rates and we apply our experience curve to assist our clients analyse and improve wear measurement, the grinding process, grinding performance, the maintenance activities performed on the grinding mill, and mill liner replacement strategy. WFSP has delivered operational improvements in reduced reline maintenance times, leading to industry best practice for PNG contractors. Reline Training – All WFSP reline crews are fully trained in operation of specialist line handler tooling and equipment including RME's feed chute, liner placement mill relining machine, liner bolt removal hammers and liner lifters. All WFSP reline work crews have undergone site-‐specific safety and induction and our supervisors have undergone (RME) reline operations training. WFSP has also developed operating procedures on all reline plant and equipment operating guidelines for all its crews that is delivered as part of this training and induction programs for new and existing personnel.

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

Current reline contracts: Mill Type SAG 1 9.7m x 4.2m – (Svedala) SAG 2 9.7m x 4.2 – (Koppers) Ball 1A 8.8m x 5m – (Koppers) Ball !B 8.8m x 5m – (Koppers) Ball 2A 8.8m x 5m – (Koppers)

Description of Operations OK Tedi Mining Limited located in Western Province-‐PNG. • Carry out complete relining • Carry out complete maintenance and rebuilding of apron feeders • Maintenance and rebuilding of crushers • Carry out full maintenance for mill department Lihir Gold Limited (Newcrest Mining Limited) located in New Ireland Province-‐PNG. • Carry out complete relining • Carry out complete maintenance and rebuilding of apron feeders • Maintenance and rebuilding of crushers • Carry out full maintenance for mill department Saint Barbara Limited-‐Simberi located in New Ireland Province-‐ PNG • Carry out complete relining • Carry out complete maintenance and rebuilding of apron feeders • Maintenance and rebuilding of crushers • Carry out full maintenance for mill department Phu Bia Mine (PanAust Asia) – LAOS. • Carry out complete relining • Carry out complete maintenance and rebuilding of apron feeders • Maintenance and rebuilding of crushers • Carry out full maintenance for mill department

SAG 1 8.5 x 4.3 (FDS Smith) SAG 2 8.5 x 4.3 (FDS Smith) SAG 3 8.5 x 4.3 (FDS Smith) SAG 4 8.5 x 4.3 (FDS Smith) Ball 1 5.4 x 9.75 (FDS Smith) Ball 2 5.4 x 9.75 (FDS Smith) Ball 3 5.4 x 9.75 (FDS Smith) SAG 6.7m x 3.7m (Metso) Ball 5m x 3.4m (Nordberg)

Phu Kham Sag Mill 1 10m x 6m Ball 1 12m x 7m Ball 2 12m x 7m Ban Houayxai SAG Mill 1 7.9m x 5.5m Ball Mill 1 12m x 7m

3.3

General Maintenance

WFSP has been supplying general mining maintenance services to three large-‐ scale operations in PNG since 2010 and two internationally since 2013. Of our PNG mining clients Morobe Mining Joint Venture (MMJV) services are predominantly general maintenance related. We provide MMJV with mostly PNG tradesmen in the fitter, boilermaker and plant

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

operator class. We are expanding our maintenance and reline crews and expertise to accommodate future mining clients throughout PNG, whilst still maintaining the safest, highest quality service as per Australian standards. WFSP understands the competitive advantages that optimized plant, equipment and infrastructure delivers to its mining clients. We are able to partner with clients to provide effective maintenance strategies based on continuous improvement methods, to achieve performance reliability, reduced downtimes and full functionality: Planning Partner–WFSP can partner to ensure our client’s maintenance strategy aligns to a planned preventative maintenance program to minimise in-‐service failures. We have delivered improvements to our client’s maintenance plan that maximized plant operations and minimized downtime costs. Maintenance Expertise-‐WFSP has full-‐localized knowledge and expertise on client mining infrastructure allowing us to contribute positively to the full range of maintenance planning. WFSP has developed capabilities to assist the client in tasks, activities, frequency, labor time and cost determinations associated with each component of mining plant, equipment and infrastructure. Strategic Benefits -‐WFSP is able to combine these advantages to deliver cost efficiencies to clients through project managing major maintenance activities (such as shutdowns), reducing shift crews, eliminating restrictive work practices and standardising work requirements. We can also advise on equipment procurement that requires minimal maintenance to deliver cost-‐effective benefits to clients. WFSP continues to grow its stocks of technical, trades and general labor resources to meet its planned growth objectives for the medium term (2014-‐16), through the creation of an internal business unit that manages active recruitment programs. WFSP provides a full range of technical and trades labor resources across its mining clients infrastructure including: Trades Scope of services Belt & Rubber Repairers • Carry out rubber work preventative inspection, repairs and maintenance • Complete relines for all rubber works on all Fixed Plant Equipment • Conduct steel cord and fabric conveyor belt repairs and change outs • Attend to corrective tasks and breakdowns Plant Fitters/Machinists • Carry out repairs to and change out of equipment – Vibrating screens, crushers, conveyors, pumps, SAG and Ball mills, cyclones, motors, gearboxes, agitators, valves, flotation cells • Rebuild of equipment spares and other maintenance work • Carry out removal and installation of pipes in both steel and polyethylene (flanged, screwed and welded) • Machine parts using typical workshop machines

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

Trades

Scope of services such as lathes, mills, grinders, etc.

Boilermakers/Welders/Fabricators

• Perform structural welding and fabrications • Perform tank weld repairs • Carry out mechanical maintenance work and change out pipes • Repair chute linings • Fabricate spools and pipes • Weld carbon and exotic steels

Supervisors

• Monitor and direct the works performed by tradesmen and others in conjunction with NML • Allocate work to teams and individuals • Ensure all NML OHS&E are met by themselves and their work teams including reporting any incidentals/accidents immediately • Provide reports, where required, of the progress of work done and upon the completion of work, or as directed by NML • Participate in the planning and scheduling of work

General and Fixed Plant Maintenance Contracts:

Mine site/Client Porgera – Barrick

Plant Type Fixed plant equipment – crushing / grinding / flotation circuits (including conveyors)

General Scope of Services • Repairs/change outs • Rebuilds/maintenance • Welding/fabrications • Rubber work

Simberi – St Barbara

Fixed plant equipment –

• General labor hire • Welding/fabrications • Rubber work/relines

Morobe Mining Joint Venture – Hidden Valley Services

Fixed plant equipment – crushing / grinding / flotation circuits (including conveyors) riggers/drivers

• • • •

Phu Bia Mining Limited – Phu Kam & Ban Houayxai Operations

Fixed plant equipment – crushing / grinding / flotation circuits

• Repairs/change outs • Rebuilds/maintenance • Welding/fabrications

Repairs/change outs Rebuilds/maintenance Welding/fabrications Rubber work/relines

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

MANAGEMENT CAPABILITY

4.1

Administrative Controls

WFSP has the expert capability built over time and in a challenging environment in PNG managing resources both administratively and on site operations. WFSP has an established center of operations in Port Moresby (Roku-‐Petroleum Zone) managed by an operations manager and a team of business services staff. This team provides all logistical and administrative support to our maintenance operations: § Provide mobilization/demobilsation of maintenance services teams (including P&E) across PNG, SI and other S.E.Asian mine site operations. § Administer all work visas and permit requirements for foreign workers to the South Pacific (PNG, SI) and all workers from PNG and Australia to foreign mine sites (S.I. and S.E.Asia), § Supporting payroll, procurements and all other administrative management services to WFSP and its maintenance operations (site accommodation, vehicles, job reporting, client liaisons etc.), Also attached to this office is a full time business development manager and mining maintenance manager and all these roles liaise with the company director in supporting strategic and operational management: § Actively promote company capabilities to new clients across all markets (South Pacific and S.E.Asia) to secure new reline and general maintenance contracts, § Strengthen existing client relationships and networks to manage performance and client expectations, § Provide expert technical advice and support (project management, planning, OHS, job reporting) on maintenance services operations.

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

WFSP Organisation Chart:

Managing Director Executive

Mine Maintenance Manager

Supervisors Technical Trades

Operations Manager

Admin-HR/ Logistics/ Procurement

Supervisors Maintenance

Business Development Manager

FinanceAccounts/ Payroll

4.2

Operational Controls

WFSP implements a structured and standardised maintenance planning methodology to manage all reline and general maintenance contract services for its mining clients across PNG, South Pacific and S.E.Asian regions. We manage our operations across planning, implementation, quality and reporting areas: • WFSP operations are structured in such a way that responsibility and accountability are clearly defined. • Our Operational Management team has core responsibility (internally) for client contract maintenance planning and controlling all maintenance activities. • All WFSP systems and procedures are formally developed and implemented to provide a logical, disciplined approach to manage our maintenance contracts. • We develop and implement quality assurance through reliable records which show work accomplished are established and maintained and are used as a tool for improving performance. • The operations management team develops periodic reports that measure the effectiveness of our contract maintenance services completed. • WFSP Management team exercises control when the reporting system identifies or highlights a problem area in our client maintenance execution.

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

WFSP Operations Management: OWNER&:PRODUCTION/& MAINTENANCE

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SCOPE%EXECUTION%

CONTRACT%INCEPTION%

MINING%CLIENT:% Maint/Scope&& Job&Plan& Quality&Plan& OHS&Plan&

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WFSP&MANAGEMENT:&& OPERATIONS&TEAM "

" $

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WFSP%ADMIN:% Recruitment& program& Logis9cs& Planning&

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Client&progress& claims/billings& Resource&Dem'n& CloseMout&

Work program planning: Drawing from and in consultations with client-‐provided (Production/Maintenance/OHS) detailed job scope of services, project controls plans and OHS requirements, WFSP will develop its internal contract management plan to guide all contract activities and manage progress. WFSP adopts the industry standards for project planning and scheduling for managing scope of the reline contracts to time, cost, OHS and quality KPIs. Internally the operations team will base their planning on the client contact scope, mill-‐specific reline specifications and mill drawings supplied from the mill maintenance or planning units. For general (including fixed plant) maintenance contracts our operational teams will base job planning on client scope, drawings and other relevant infrastructure specifications provided. In order to manage internally all labor (manning levels) and resources allocations, determine costs and manage logistics (mobilization/demobilization), the operations teams (including site supervisors/leading hands) will develop a baseline Gantt chart to create and synchronize the individual work breakdown structure, tasks and milestones required to successfully

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

complete the scope. The schedule also enables the integration of estimations for the effort in man-‐hours and the timelines and durations to complete program milestones. This Gantt chart then provides the reline supervisors with baseline schedule / program of work from which they coordinate task completion in liaison and consultation with owners teams including mill maintenance and project controls units. The schedule then informs the development of a control budget of costs to completion that allows the teams to create time phased budget profiles across the term of the maintenance period. The supervisor teams are then guided by both the baseline schedule and budget to manage the effort of the crews towards milestone completions (including reduced variations). The crews then liaise with owner’s teams on a daily basis for planning and review meetings where reline and/or general maintenance operations are reviewed and outcomes inform the schedule management and update process. Work program implementation: Once mobilized to owner’s site the recruits are then moved through the operational management processes of WFSP. This involves systematic procedures with shared and or specific jurisdictions between WFSP and the mining operator. The ongoing management of reline and general maintenance crews once mobilized to site is taken over by the site supervisors (Australians with some PNG). The site supervisors are then responsible for coordinating all human (manning) and other job resources (mobilization/ logistical) requirement’s for their crews in liaison with the administration and operations teams based in Port Moresby, PNG. During the period of site operations all payroll, accounts, travel and accommodation planning and all other HR and mobilization requirements are managed between the two teams (administration / site) on an ongoing basis. Site supervisors and leading hands (including OHS) manage directly through these project management activities, all client scope and deliverables to ensure WFSP meets KPIs for time, cost, OHS and quality. Routine job monitoring and direct leadership/supervision ensures all crews are pre-‐qualified for OHS and site operations before entering the client mine site, including breath testing, pre-‐start toolboxes and other necessary induction activities. Continuous liaison with the client teams (production/maintenance) ensures we are managing scope execution and progress in compliance to our client’s specifications.

4.3

Quality Controls

WFSP implements industry standard quality management processes and tools in all its reline maintenance contracts for mine operator clients in PNG. Broadly our quality performance management strategy is focused on our safety approach and performance on the job as monitored through the supervisors in liaison with owner’s teams. Our progress performance against the planned man-‐hours and milestone timelines is another key component, which is actively managed through the reline supervisors in liaison with owners team shutdown and mill maintenance units. Another core aspect for our quality management is the forward planning and suggested solutions to effectively undertake the task assignment within safety, time and cost

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

mandates. Our quality performance management system and key operational guidelines includes: a. WFSP Safety Management Plan – The reline maintenance crews are managed for OHS compliance and reporting benefits in accordance with industry standards and as managed through the internal Safety Management Plan (SMP) guidelines. All our reline crews and supervisors undertake induction training when they join the company and undertake further owner operator delivered site-‐specific OHS training before commencing on site. Crew supervisors then actively manage the OHS obligations when reline services are underway though consultation and liaison with the owners team OHS unit. b. Job Safety Assessment – As an essential part to the SMP is the undertaking of a Job Safety Assessment (JSA) by the supervisors including identifying all reline potential hazards and the analysis of additional risks. This is a pre-‐contract commencement procedure and forms part of the planning procedures. c. Mill Reline Job Reports – This is a post reline maintenance assignment that is completed by the supervisors to discuss and highlight key safety outcomes including notifiable breaches and general incidents. Also included is a list of observed issues along with recommended improvements for the owners benefit. d. Log Books – An integral component to the KPI’s during reline maintenance services is the daily update of job logbooks undertaken by the supervisors. Key indicators for job success like timelines to task completions, safety standard guidelines, standard operating conditions, mill and associated infrastructure issues and any other operational challenges observed. Shutdown procedures: WFSP site management teams control the entire process in consultations with the owners teams including safety management, mill maintenance and project controls. The detailed major components to the operations management procedures including Pre-‐shutdown planning is undertaken in liaison with the owner’s mill maintenance to ensure they have adequately planned and resourced the job including: • Monitor the arrival of parts • Organization of the required parts and consumables • Ensure dedicated shutdown toolboxes adequately stocked • Review, update and or create a JSA for each job • Identify and organize or create associated permits • Monitor and report on working progress and job status The supervisors ensure the client shutdown team is kept constantly informed of the reline progress to minimize delays before, during and at the end of the shutdown. WFSP has broadened our crew’s skill base through targeted recruitment and allocation of multi skilled reliners with additional doggers, riggers and crane driving accreditations. This strategy enables our crews to minimize downtimes where these resources aren’t available or are delayed.

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

The crew has pre-‐start meetings with owner teams and internally and the supervisors develop the crew lists and designates the scheduled tasks according to the team experience and qualifications. Training also is provided to our crews gain shutdown capable reliners and includes: § Pre shutdown training § Incident reporting § Fit for work § Risk management/JSA’s § Isolation, tag and lockout § Review lessons learnt from previous shutdowns § Confined space training Workforce recruitment: To ensure we plan effectively to meet client contract service needs, we actively place tradesmen into our clients’ PNG mining sites. Briefly the management of resources is conducted per the following: a. Labor is recruited directly from the job markets (Australia – Supervisors and technical; Papua New Guinea – Skilled, semi-‐skilled and laborers), b. Administration managers review the recruits applications (CV’s, licenses, trade accreditations), c. Recruits move through the company administrative processes (policies/procedures, payroll details), d. Administration teams manage the recruits ongoing basis (payroll, travel, accommodation), e. Site based managers accept and coordinate resources once on site (safety inductions, operations management), f. Once mobilized to owner’s site the recruits are then moved through the operational management processes of WFSP. This involves systematic procedures with shared and or specific jurisdictions between WFSP and the mining operator. Training & Development: WFSP is actively promoting training and development of its reline maintenance crews and all reliners have undergone owner delivered inductions for safety, plant and equipment operating and we have placed some of our supervisors through the RME (Australia) specialist mill reline plant and equipment operating procedures. In accordance with a recent strategic management review WFSP has also initiated adoption of total quality management (TQM) principles including intentions to implement client relationship and team based leadership training and development programs over the current (2014) period.

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

Since inception of WFSP in November 2010 our workforce has been built up to a core team comprising an average 15 supervisors (Australian) and an average 50 reliners (PNG) for our reline maintenance operations. The coverage for our supervisors to reliners currently is around 1 supervisor for every 2-‐crew members. The ratio for our standard crew make up for reline maintenance assignments on site is 6 supervisors and 14 crew on average which enables optimized job management for the crews. To date over the four years of WFSP operations we have achieved a low rate on average of turnovers below 5% of the total workforce employed. This is a strong result for our industry where the nature of mill reline services are sequenced internally throughout the year and not full time basis. This turnover result has been predominantly with our PNG crewmembers who are on casual basis for employment. With our supervisor teams there has been relatively few turnover results as most of the team are professional reliners with long experience within this specialist area of skills.

4.3

Safety Management

WFSP Occupational Health and Safety (OHS) Policy outlines the company’s commitment to a zero-‐incident work environment with a safety culture based on teamwork and safety leadership. It reflects the WFSP safety vision, which is “to ensure every day is a safe working day, without compromise.” We are committed to performing every job in a safe and healthy manner. Work-‐ related injury or illness is unacceptable, and we are committed to identifying and eliminating or controlling workplace hazards to protect others and ourselves. Everyone is responsible for workplace safety.

WFSP is a safety focused organization and adopts the governing mining safety statutory guidelines that apply to the industry in PNG including the PNG Mining Safety Act (1977) and complies fully with the industry adopted Australian standards the Work Health and Safety (WHS) Act and Regulations. WFSP has been very successful in its safety outcomes with nil incidents on its relines over three years and in excess of forty SAG and Ball Mill relines, which is an outstanding result given the challenges of the operating environment in PNG mining environment. All the crews are fully inducted and safety trained. Safety Management Strategy WFSP has developed an integrated strategy to manage its OHS obligations within the framework of a Work Health Safety Management Plan (WHSMP) to guide all components of WFSPs OHS systems and procedures:

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

1. WFSP OHS Policy – we have drafted and declared publicly our commitment to the components of our WHSMP and declared our OHS policy in our Vision & Mission Statements. 2. OHS Management – WFSP has included key personnel in our organisational structure who are responsible for managing health and safety. Our WHSMP includes details of their roles and responsibilities and arrangements for persons in acting roles in the event of an emergency. 3. WFSP Operations – Our WHSMP and specific Standard Operating Procedures (SOPs) details the procedures that all crews and supervisors need to follow to: • operate plant and equipment • initiate if alarm systems should activate • shut-‐down, and • isolate. 4. Hazard management process – Our WHSMP provides our crews and supervisors with descriptions of the systems, procedures and measures for managing all risks in a comprehensive and integrated manner and including: • hazard identification • risk assessment • selection and classification of controls • monitoring, maintaining and review of controls and safety systems • access and security • inspections and testing, and • specific principal mining hazard management plans. 5. WFSP Emergency response plan -‐ including consulting the emergency services and local authorities, it is prepared to addresses the: • list of possible emergencies based on the hazards and risks assessed • requirements for emergency equipment, crews, first aid, transport • evacuation, isolating of process or work areas, and alternate exits • training and practices to ensure its effectiveness • crisis management and recovery. 6. WFSP Communication arrangements -‐ for involving and informing workers and others including: • the safety role for crews • the WHSMS • identifying and assessing principal work hazards and the control measures required • the emergency plan • strategies for managing risks associated with fatigue, alcohol or drugs, and • passing on information from one shift to another. 7. WFSP OHS Training -‐ with associated competence testing. 8. Incident management – WFSP OHS supervisors manage all reporting and investigation procedures as well as tracking any remedial actions to ensure they are implemented. 9. Record management-‐ WFSP has incorporated OHS forms into its reporting outputs.

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

WFSP OHSE Chart:

Managing Director Executive Safety Manager

Mine Maintenance Manager HSE Advisor

Supervisors Technical Trades Safety Officer

HSE Unit Mgt Coordinator

Operations Manager HSE Advisor

Supervisors Maintenance Safety Officer

Supervisors Administration Safety Officer

OHS Compliance Goals: WFSP has developed a broad set of policy objectives to reinforce the strategies outlined in our WHSMP and all crews are fully inducted and continuously monitored for compliance to these OHS goals: • Each employee is accountable for his or her own safety. • No employee will be expected to perform work, which places his or her health and safety at risk. • Ensure that all Health and Safety leaders are entrenched within the operations and the way each individual area of works. • Demonstrating continuous improvement towards the goal of zero harm within reline operations. • Improving the effectiveness of OHS leadership at all levels within reline operations. • Ensuring the SMP is updated with all new OHS standards. • Maintaining all identified risks in the WFSP Risk Assessment Manual. • Ongoing focus on conducting of Job Safety Observations (JSO’s) at workplaces. • Implementation of all internal and external audit recommendations within identified timeframes. • Ensure Job Safety Analysis (JSA’s) is conducted for all reline maintenance tasks. • Ensure Standard Work Procedures (SWP’s) is developed and available for all routine tasks.

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

Job Safety Procedures: WFSP implements its OHS obligations through the safety supervisors (leaders) on site reline operations within the day/night shift allocations. All reline operations and crews comply with the following procedures in accordance with the WHSMP: • Risk Assessment – Ensure safety work environment for all crew attending reline operations on site Safe Work Procedures (SWP’s) – Ensure correct operations on all equipment and tooling. • Job Safety Assessments (JSA’s) – Ensure all safe work practices are fully understood and followed. • Take 5 (Job Safety Observations) -‐ Done prior to the job commencement and where/if job scope changes. • Fit for Work Checklist – Breath testing of all reline crews prior to entering work site. Employees to fill out a checklist to match job criteria. • Pre-‐Start Checklist – Carry out Pre-‐Start on all equipment to be used. Fill out and sign WFSP and client Pre-‐Start Checklist forms. • Tool Box Meetings – Discuss safety issues and incidents. Prevent/ avoid potential incidents and hazards. Create a safe working environment. • Safety Officer – Constant monitoring of WFSP personnel and ensuring that all WFSP and clients safety protocols are adhered to at all times. Ensuring that WFSP can deliver and execute 100% safe outcome to all our service deliveries. Liaise with client safety department.

FINANCIAL MANAGEMENT

5.1

Financial controls

WFSP has integrated its financial management strategy to include adoption of accounting and payroll Enterprise Reporting Systems (ERS) that we have implemented through professional IT providers. These ERS products have enabled our operations to provide financial controls across all categories of revenue and expenditure, enabled our administration teams to provide management forecasting and allowed us to efficiently manage operating costs including taxation and payroll commitments and to produce timely and accurate reporting across the accounting and payroll systems. WFSP also supports its financial management capabilities through undertaking due diligence (risk management) processes in all its procurements contracts with suppliers, including periodic reviews and comparisons in the market place. This has enabled us to manage all key

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

operating overhead costs to remain efficient and control impacts on our cash flows and profitability. This is especially the case for our logistics and supervisor labor costs: Labor efficiencies – WFSP adopts continuous improvement principles throughout our operations including strategies to rationalize and reduce both direct and indirect (logistics) labor costs and pass these savings to our clients. We have progressively adopted more localized labor utilising PNG supervisors and leading hands in our maintenance crew planning. Through combinations of locating crews through permanent site based general maintenance contracts, implementing optimal labor utilization of our expat senior personnel and adopting increased localization (landowners/local residents) across all our labor force recruitment for each mining site, WFSP has reduced its direct and indirect (mobilisation/ demobilization) costs and allows us to pass cost savings to our clients. Procurements planning – WFSP also implements systems of continual monitoring of all procurements to ensure we are able to structure cost effective supply contracts with travel and accommodation providers, fuel and vehicle maintenance providers, new and used vehicle procurements and PPP supplies. In addition to these measurements we have implemented strategies to reduce further our operating costs, and allowed our maintenance operations to remain cost competitive.

Future Growth

6.1

Strategic management

WFSP adopts a strategic management and business planning process to inform and guide its market growth objectives and to align all parts of its operations to meet its short to medium term (2014-‐2016) goals. WFSP has created three Strategic Business Units (SBUs) to aligned its’ operations across comminution, construction and labor hire services. This structure allows WFSP to focus its’ distinctive competencies in comminution maintenance services to capture market growth opportunities. A general construction SBU enables WFSP to undertake related diversification through emerging mining, oil & gas and general civil project opportunities in PNG. The creation of a labor hire SBU provides WFSP with ongoing opportunities in all heavy industry project and maintenance support scope of services. WFSP has also developed marketing/capability brochures to support each SBU and our web site is soon to be updated to align with this marketing strategy.

WORKFORCE SOUTH PACIFIC LIMITED

WFSP-‐ COMPANY CAPABILITIES

MINING MAINTENANCE SBU:

CONSTRUCTION SBU:

6.2

Regional plans

WFSP has developed a Business Development Plan to target emerging construction opportunities in mining and oil & gas sectors in PNG over the immediate term (2015) and beyond. This expansion transaction enables for the development of vital EPC, EPCM capabilities within WFSP, to allow the new partnership to pursue these major project opportunities. WFSP will seek to develop three-‐party strategic alliances with global EPCM contractor firms and Landowner Umbrella companies as required under current PNG mining and oil & gas MOA legislation, to create a model for pursuing major project construction opportunities.

WORKFORCE SOUTH PACIFIC LIMITED