FORACO INTERNATIONAL REPORTS Q2 2017

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1 NEWS RELEASE FORACO INTERNATIONAL REPORTS Q Toronto, Ontario / Marseille, France Tuesday, August 1, Foraco International SA (TSX:FAR) (the Company or Foraco ), a leading global provider of mineral drilling services, today reported unaudited financial results for its second quarter All figures are reported in US Dollars (US$), unless otherwise indicated. Our commercial activity in Q confirmed the positive trend reported last quarter with revenue increasing 13% compared to the same quarter last year despite continued pressure on prices and the postponement of certain contracts. All geographical areas benefit from this improved activity led by North America with new clients, both majors and juniors, and new6contracts. The utilization rate of our rigs was 39% during the quarter compared to 36% in Q and 35% in Q said Daniel Simoncini, Chairman and Co-CEO of Foraco. Based on the backlog secured to date, we are relatively optimistic for the second half of the year, although our clients remain cautious regarding long-term commitments. During the quarter, our operations performed as expected. We generated positive EBITDA of US$ 3.6m or 10% of revenue, up 38% compared to the same quarter last year. We continued to keep capex and working capital requirements under control. Following the completion of our financial reorganization on May 11, we have positive cash available amounting to $17.4m as at June 30, 2017 and could limit the reimbursement of our debt to US$3.8m over the next 12 months and less than US$10m over the next 4 years, commented Jean-Pierre Charmensat, Co-CEO and Chief Financial Officer. From both a commercial and financial standpoint, nothing prevents us from being reasonably positive looking forward. We also believe that our strategy consisting in maintaining our footprint in all our geographical areas during the low cycle of the industry puts us in a good position to benefit from the expected recovery in the market.

2 Three months Q Highlights Revenue Q revenue amounted to US$ 36.6 million compared to US$ 32.3 million in Q2 2016, an increase of 13%. The utilization rate was 39% in Q compared to 36% in Q Profitability The Q gross margin including depreciation within cost of sales was US$ 4.1 million compared to US$ 2.1 million in Q The increase of activity generated better absorption of fixed operational costs. SG&A costs increased by US$ 0.5 million. As a percentage of revenue, SG&A represented 13% in Q compared to 14% during the same period last year. EBIT amounted to US$ (1.1) million in Q compared to US$ (2.5) million in Q2 2016, a US$ 1.4 million improvement mainly as a result of increased Gross Margin. During the quarter, EBITDA amounted to US$ 3.6 million compared to US$ 2.6 million for the same quarter last year. Capital expenditure was US$ 2.2 million in Q compared to US$ 0.9 million in Q This Capex is mainly linked to new contracts to be executed in the next quarters. Cash flow and net debt H free cash flow was US$ (4.1) million vs. US$ (9.3) million in H1 2016, an improvement mainly attributable to higher cash generated by operations and lower working capital requirements. On May 11, 2017, the Company completed the reorganization of its debt and received net proceeds amounting to US$ 17.3 million. The net debt was US$ million as at June 30, 2017 compared to US$ million as at December 31, This increase is mainly due to the negative free cash flow (US$ 4.1 million) and the adverse effect of foreign exchange rates on the debt denominated in Euros (US$ 7.1 million). H Highlights Revenue H revenue amounted to US$ 66.9 million compared to US$ 56.4 million in H1 2016, an increase of 19%. Profitability The H gross margin including depreciation within cost of sales was US$ 5.6 million compared to US$ (0.7) million in H The increase of activity generated better absorption of fixed operational costs.

3 SG&A costs increased by US$ 1.2 million. As a percentage of revenue, SG&A remained flat at 15% in H compared to the same period last year. EBIT amounted to US$ (4.5) million in H compared to US$ (10.5) million in H1 2016, a US$ 6.0 million improvement mainly as a result of increased Gross Margin. During the period, EBITDA amounted to US$ 4.9 million compared to US$ 1.0 million for the same period last year. Selected financial data (In thousands of US$) (unaudited) Three-month period ended June 30, Six-month period ended June 30, Revenue 36,567 32,297 66,891 56,425 Gross profit / (loss) (1) 4,050 2,128 5,555 (664) As a percentage of sales 11.1% 6.6% 8.3% -1.2% EBITDA 3,610 2,625 4,912 1,005 As a percentage of sales 9.9% 8.1% 7.3% 1.8% Operating profit / (loss) (1,088) (2,510) (4,548) (10,520) As a percentage of sales -3.0% -7.8% -6.8% -18.6% Profit / (loss) for the period (2,206) (3,305) (5,992) (11,619) Attributable to: Equity holders of the Company (2,068) (3,828) (5,448) (11,905) Non-controlling interests (138) 623 (544) 286 EPS (in US cents) Basic (2.27) (4.28) (6.00) (13.31) Diluted (2.27) (4.28) (6.00) (13.31) (1) This line item includes amortization and depreciation expenses related to operations Financial results Revenue (In thousands of US$) - (unaudited) Q % change Q H % change H Reporting segment Mining... 34,097 15% 29,556 62,105 26% 49,340 Water... 2,470-10% 2,741 4,796-32% 7,085 Total revenue... 36,567 13% 32,297 66,891 19% 56,425 Geographic region Europe, Middle East and Africa... 13,615 5% 12,920 24,976 12% 22,279 North America... 9,661 51% 6,416 18,129 40% 12,913 South America... 8,071 4% 7,788 15,475 25% 12,388 Asia Pacific... 5,220 1% 5,173 8,311-6% 8,845 Total revenue... 36,567 13% 32,297 66,891 19% 56,425

4 Q Q revenue amounted to US$ 36.6 million compared to US$ 32.3 million in Q2 2016, an increase of 13%. In EMEA, revenue increased by 5% from US$ 12.9 million in Q to US$ 13.6 million in Q The increased activity in the mining segment in Africa and Europe has more than offset the lower activity in the water segment in Africa. Revenue in North America increased by 51% from US$ 6.4 million in Q to US$ 9.7 million in Q Compared to last year, the Company benefited from new contracts with Juniors and increased activity with Majors. Revenue in South America increased by 4% from US$ 7.8 million in Q to US$ 8.1 million in Q but remains stable after elimination of the foreign exchange impact. In Asia Pacific, revenue remained flat at US$ 5.2 million due to the combination of lower activity in Australia partially compensated by an increase of activity in New Caledonia. H H revenue amounted to US$ 66.9 million compared to US$ 56.4 million in H1 2016, an increase of 19%. In EMEA, revenue increased by 12% from US$ 22.3 million in H to US$ 25.0 million in H The increased activity in the mining segment in Africa and Europe has more than offset the lower activity in the water segment in Africa. Revenue in North America increased by 40% from US$ 12.9 million in H to US$ 18.1 million in H Compared to last year, the Company benefited from new contracts with Juniors and increased activity with Majors. Some rigs were transferred from other areas to North America. Revenue in South America increased by 25% from US$ 12.4 million in H to US$ 15.5 million in H The increase is mainly attributable to the earlier start of projects in Brazil (+27%) and Chile (+12%). In Asia Pacific, revenue decreased from US$ 8.8 million to US$ 8.3 million, a decrease of 6% due to lower activity in Q The decrease of activity in Australia was partially compensated by an increase of activity in New Caledonia. Gross profit (In thousands of US$) - (unaudited) Q % change Q H % change H Reporting segment Mining... 3,928 88% 2,093 5,388 n/a (721) Water % n/a 57 Total gross profit / (loss)... 4,050 90% 2,128 5,555 n/a (664) Q Q gross margin including depreciation within cost of sales was US$ 4.1 million compared to US$ 2.1 million in Q The increase of activity allowed a better absorption of fixed operational costs.

5 H H gross margin including depreciation within cost of sales was US$ 5.6 million compared to US$ (0.7) million in H The increase of activity allowed a better absorption of fixed operational costs. Selling, General and Administrative Expenses (In thousands of US$) - (unaudited) Q % change Q H % change H Selling, general and administrative expenses... 4,882 11% 4,418 9,798 14% 8,597 Q SG&A costs increased by US$ 0.5 million. As a percentage of revenue, SG&A represented 13% in Q compared to 14% during the same period last year. H SG&A costs increased by US$ 1.2 million. As a percentage of revenue, SG&A remained flat at 15% compared to the same period last year. Operating result (In thousands of US$) - (unaudited) Q % change Q H % change H Reporting segment Mining... (880) -58% (2,070) (4,010) 57% (9,350) Water... (208) -53% (440) (538) 54% (1,170) Total gross profit / (loss)... (1,088) -57% (2,510) (4,548) 57% (10,520) Q Operating loss was US$ 1.1 million, a US$ 1.5 million improvement mainly as a result of increased gross margin. H Operating loss was US$ 4.5 million, a US$ 6.0 million improvement mainly as a result of increased gross margin.

6 Financial position The following table provides a summary of the Company s cash flows for H and H1 2016: (In thousands of US$) H H Cash generated by/(used in) operations before working capital requirements 4,912 (24) Working capital requirements (2,646) (4,653) Interest and tax (2,761) (2,198) Net cash flow generated by / (used in) operating activities (494) (6,875) Purchase of equipment in cash (3,596) (2,464) Free cash flow (4,091) (9,339) Settlement of dispute - (934) Debt variance 14,822 4,569 Dividends paid to minority shareholders in affiliates - (500) Acquisition of treasury shares (27) (86) Net cash generated by / (used in) financing activities 14,795 3,049 Net cash variation 10,704 (6,290) Foreign exchange differences Variation in cash and cash equivalents 11,129 (6,028) In H1 2017, the net cash flow used by operating activities amounted to US$ 0.5 million compared to US$ 6.9 million used during H This improvement is mainly related to the increase in activity. Working capital requirements was a negative US$ 2.6 million during H compared to a negative US$ 4.7 million in H During the period, Capex amounted to US$ 3.6 million in cash, compared to US$ 2.5 million in cash in H The Company purchased 3 rigs for contracts and retired 3 from service. The total rig count remains unchanged at 302. Free cash flow was US$ (4.1) million in H compared to US$ (9.3) million in H New bonds net of transaction costs paid during the period, amounting to US$ 2.5 million, generated a net cash inflow of US$ 17.3 million using the exchange rate at transaction date. During the same period, the Company reimbursed US$ 3.0 million and issued US$ 0.5 million of new debt to finance capex.

7 Following the debt reorganization, the maturity of financial debt as at June 30, is as follows: in thousands of US$ June 30, 2017 Credit lines 7,078 Long-term debt Within 1 year 3,827 Between 1 and 2 years 2,430 Between 2 and 3 years 2,390 Between 3 and 4 years 1,299 Between 4 and 5 years 114,426 Total 131,450 Bank guarantees as at June 30, 2017 totaled US$ 5.0 million compared to US$ 17.9 million as at December 31, The Company benefits from a confirmed contract guarantee line of 12.7 million (US$ 14.5 million). As at June 30, 2017, cash and cash equivalents totaled US$ 17.3 million compared to US$ 6.2 million as at December 31, Going concern and impairment testing Current economic conditions make forecasting difficult, and there is the possibility that the Company s actual operating performance during the coming year may be different from expectations. Going concern is assessed based on internal forecasts and projections that take into account reasonably possible changes in the Company s operating performance and the completion of the debt reorganization. On May 11, 2017, the Company completed its debt reorganization consisting in (i) a new money injection of 23 million (US$ 25 million) in the form of bonds with a 5-year term, including 18 million (US$ 19.8 million) available at closing, and (ii) postponing the instalment of most of the Company s existing long-term financing which takes the form of 5-year term subordinated bonds. Proceeds from the US$ 19.8 million net of transaction costs paid amounted to US$ 17.3 million as at June 30, The Company believes that it will have adequate financial resources to continue in operation and meet its financial commitments for a period of at least twelve months. Accordingly, the Company continues to adopt the going concern basis in preparing its financial statements. Currency exchange rates The exchange rates for the periods under review are provided in the Management s Discussion and Analysis of Q Non-IFRS measures EBITDA represents Net income before interest expense, income taxes, depreciation, amortization and non-cash share based compensation expenses. EBITDA is a non-ifrs quantitative measure used to assist in the assessment of the Company's ability to generate cash from its operations. The Company believes that the presentation of EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the drilling industry. EBITDA is not defined in IFRS and should not be considered to be an alternative to Profit for the period or Operating profit or any other financial metric required by such accounting principles. Net debt corresponds to the current and non-current portions of borrowings and the consideration payable related to acquisitions, net of cash and cash equivalents.

8 Reconciliation of EBITDA is as follows: (In thousands of US$) Q Q H H (unaudited) Operating profit / (loss)... (1,088) (2,510) (4,549) (10,520) Depreciation expense... 4,669 5,042 9,403 10,451 Non-cash employee share-based compensation Settlement related to the 2012 acquisition in Australia EBITDA... 3,610 2,625 4,912 1,005 Outlook The Company s business strategy is to actively prepare for the next growth phase of the metallic commodities cycle in the best possible conditions through the development and optimization of its services offered across its range of geographical regions, industry sectors, commodities and customers. The Company expects it will execute its strategy primarily through organic growth in the near future. Conference call and webcast On August 1, 2017, Company Management will conduct a conference call at 9:00 am ET to review the financial results. The call will be hosted by Daniel Simoncini, Chairman and co-ceo, and Jean- Pierre Charmensat, co-ceo and CFO. You can join the call by dialing or You will be put on hold until the conference call begins. A live audio webcast of the Conference Call will also be available through: An archived replay of the webcast will be available for 90 days. About Foraco International SA Foraco International SA (TSX: FAR) is a leading global mineral drilling services company that provides a comprehensive and reliable service offering in mining and water projects. Supported by its founding values of integrity, innovation and involvement, Foraco has grown into the third largest global drilling enterprise with a presence in 22 countries across five continents. For more information about Foraco, visit For further information, please contact: Fabien Sevestre (ir@foraco.com) Tel: (705) "Neither TSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release."

9 Caution concerning forward-looking statements This document may contain "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws. These statements and information include estimates, forecasts, information and statements as to Management's expectations with respect to, among other things, the future financial or operating performance of the Company and capital and operating expenditures. Often, but not always, forward-looking statements and information can be identified by the use of words such as "may", "will", "should", "plans", "expects", "intends", "anticipates", "believes", "budget", and "scheduled" or the negative thereof or variations thereon or similar terminology. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Readers are cautioned that any such forward-looking statements and information are not guarantees and there can be no assurance that such statements and information will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risk Factors" in the Company's Annual Information Form dated March 31, 2017, which is filed with Canadian regulators on SEDAR ( The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements and information whether as a result of new information, future events or otherwise. All written and oral forward-looking statements and information attributable to Foraco or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements