TORQUE: STRONG & COMMITTED MISSION STATEMENT

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TORQUE: STRONG & COMMITTED MISSION STATEMENT Torque Rathole Drilling s mission is to provide the highest level of quality and service to our customers. We achieve this by adapting to changes within the industry which allows us to consistently offer value added services that far exceeds our competitors. As a company, our strategy is to draw on and utilize the 65+ years of diverse and valuable strengths offered by our key management staff. Our goal is to drill the hole in a safe, cost effective and timely manner. We have acquired the best people and equipment for the job. Torque Rathole Drilling s management philosophy is based on responsibility and mutual respect. We maintain an environment that stimulates productivity and emphasises respect for our customers and employees. Our Company structure is linear, which encourages and promotes staff responsibility, decision-making power and further fosters an environment of future growth for our employees and company alike

WATSON 3110TM Torque Rathole s Watson 3110TM is a self-contained drill unit mounted on a 6 axle Western Star. Drill unit includes a 3 element kelly bar system for drill depths to 36 metres. The Kelly bars are 10 outer with 8 and 6 intermediates. It has a rotary torque of 113, 000 ft-lbs with a crowd force of 50,000 lbs. It features an inner kelly winch, Pullmaster M50, which has controlled free fall for high speed into the hole and retraction and an auxiliary winch, Pullmaster M18. Also there are electronic drill depth and level indicators. Watson 2500 Auger Drill Rig Capable of drilling to depths of 36m without using extensions.these auger drill rigs are designed with 81,000 ft-lbs of drilling torque and 38,000 ft-lbs of crowd pressure needed for any extreme drilling conditions such as gravel, large boulders and sandstone.

Spiradrill MHD -90 Rotary Auger Drill Rig Capable of drilling to depths of 29m without using extensions. Low Profile rear outriggers for better stability and greater clearance. The Rotary design starts and ends with your drilling needs in mind. Easy to use feather touch controls and swing deceleration system makes the MHD smooth, agile and operator friendly. The mast, kelly, hoist and rotary gear box are designed to feed the tool simultaneously. Rig Mounted Pile Driver Fast to rig up and out, our truck mounted tri axle pile driving unit is versatile and mobile. Equipped with a 4000 lb hydraulic drop hammer and can drive up to 13 meter piles from 3 to 20 in diameter. Pile Driving Applications: Conductor Barrels, Bridges, retaining walls, Utility towers, communication towers, signs, Refineries,Oil Batteries, Pump jacks, separator tanks, Gas compressors,oil Sands, Above-ground pipelines and facilities

1-888-596-7225 Watson 3110 Eagle Auger Drill Rig Watson 2500 Auger Drill Rig / Spiradrill MHD-90 Tri-Drive Tractor and Tri-Axle Trailer Field Supervisor with 4x4 Pickup Subsistence per Man Day Piledriver Welder $ 550.00 per hour $ 425.00 per hour $ 175.00 per hour $ 900.00 per day $ 225.00 per day $ 395.00 per hour $ 150.00 per hour Conductor/Liner Pipe 16 (406mm) $ 240.00 per metre 20 (508mm) $ 290.00 per metre 24 (610mm) $ 375.00 per metre 30 (762mm) $ 450.00 per metre Conductor/Heavy Wall 16 (406mm) Drive Pipe $ 330.00 per metre 20 (508mm) Drive Pipe $ 395.00 per metre Cellar Cribbing 3 x 5 (66 ) 1700mm $ 400.00 per metre 3 x 6 (72 ) 1800mm $ 400.00 per metre 3 x 6.3 (75 ) 1900mm $ 425.00 per metre 3 x 6.7 (79 ) 2000mm $ 425.00 per metre 3' x 7 (84 ) 2100mm $ 475.00 per metre 4 x 8 (96 ) 2400mm $1100.00 per metre Consumables Cement - 20kg bag $ 20.00 per bag Hole Covers $ 175.00 per set Pressure Cap and Ball Valves ( $350.00 per use ) $ 700.00 per set Rock teeth $ 85.00 per tooth Pilot Points $ 495.00 per point 20" Drive Shoe $ 500.00 per shoe 16" Drive Shoe $ 350.00 per shoe Watson 2500 Auger Drill Rig Bid Rates Bid Prices 12.2 Metres 20 Metres 16 -(406mm) Conductor $6400.00 + Crib $ 8100 + crib 20 -(508mm) Conductor $8100.00 + Crib $10100 + crib Please Note: All third parties at cost plus 15%. GST not included in the above prices. Cost of permits added to invoice price. Prices effective until December 31, 2013

Torque Pile Driver Price List - 2012 Rates Truck Mounted Pile Driver 4000 lb Drop Hammer and Operator One Ton c/w Welder & Operator Bobcat & Operator Supervisor & Pickup Crew Truck One Ton with 30 ft Trailer and Operator $ 395.00 per hour $ 150.00 per hour $ 95.00 per hour $ 95.00 per hour $ 250.00 per day $ 135.00 per hour Subsistence Full Day $ 225.00 per man Subsistence 1/2 day $ 95.00 per man Swampers/Labourers $ 55.00 per hour 20" Drive Shoe $ 500.00 per shoe 16" Drive Shoe $ 350.00 per shoe Tri Drive Tractor and Tri Axle Trailer $ 175.00 per hour Please Note: All third parties at cost plus 15%. GST not included in the above prices. Cost of permits added to invoice price. Prices effective until December 31, 2013

Foster Park Baskett Insurance Ltd. Suite 200, 17704-103 Ave Edmonton, Alberta T5S 1J9 CERTIFICATE OF INSURANCE Phone: 780-489-4961 / Fax: 780-486-0169 INSURED Torque Rathole Drilling Inc. & Michael Heck Site 5, Box 9, RR1 Sylvan Lake, AB T4S 1X6 COVERAGES This certificate is issued as a matter of information only and confers no rights upon the certificate holder. This certificate does not amend, extend or alter the coverage COMPANY A: COMPANY B: COMPANY C: COMPANY D: afforded by the policies below. COMPANIES AFFORDING COVERAGE Northbridge Insurance N/a N/a N/a This is to certify that the policies of insurance listed below have been issued to the insured named above for the policy period indicated, notwithstanding any requirement, term or condition of any contract or other document with respect to which this certificate may be issued or may pertain, the insurance afforded by the policies herein is subject to all the terms, exclusions and conditions of such policies. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO LTR A A TYPE OF INSURANCE GENERAL LIABILITY Claims Made Occurrence AUTOMOBILE LIABILITY Owned Autos Leased Autos POLICY NUMBER CBC 1927242 00 CBC 1927242 00 EFFECTIVE DATE (MM DD YR) EXPIRY DATE (MM DD YR) LIMITS 11/15/2012 11/15/2013 Each Occurrence $2,000,000 Aggregate $5,000,000 Products/Comp. Ops. $2,000,000 Personal Injury $2,000,000 Tenant's Legal Liability $500,000 Medical Expense $25,000 Non-Owned Auto $2,000,000 Forest Fire Fighting Exp. $1,000,000 Contingent Employers Liab. $2,000,000 11/15/2012 11/15/2013 Bodily Injury & Property Damage Combined $2,000,000 A UMBRELLA LIABILITY CBC 1927242 00 11/15/2012 11/15/2013 Each Occurrence $3,000,000 Aggregate $5,000,000 ADDITIONAL INSURED DESCRIPTION OF OPERATIONS Rathole Drilling CERTIFICATE HOLDER CANCELLATION AUTHORIZED REPRESENTATIVE DATE: November 5, 2012

9912-107 Street Email: ebusiness.support@wcb.ab.ca PO Box 2415 Tel: (780) 498-3999 (1-866-922-9221) Edmonton, Alberta T5J 2S5 Fax: (780) 498-7999 WCB website: www.wcb.ab.ca November 05, 2012 Reference Number: 5888140 TORQUE RATHOLE DRILLING INC. RR 1 SITE 5 BOX 9 SYLVAN LAKE, AB T4S 1X6 Dear Sir or Madam: Re: TORQUE RATHOLE DRILLING INC. RR 1 SITE 5 BOX 9 SYLVAN LAKE AB T4S 1X6 The above named subcontractor has an account with the WCB - Alberta in the following industry(ies): account trade name(s)/industry effective date coverage 5888140 DRILLING, RATHOLE Aug 07, 2008 worker coverage personal coverage for: AL E PEEVER MIKE D ENNIS MIKE M HECK Please accept this letter as a clearance for this subcontractor under Section 126 of the Workers' Compensation Act, for work completed between the effective date of the account and the date of this letter, for the industry(ies) listed. If the subcontractor's account is closed, the clearance is effective for work done up to the close date. If work has not yet begun, obtain a clearance prior to releasing final payment. Section 126 states that you have a responsibility to ensure that your subcontractors' accounts are in good standing. To ensure this clearance has been issued for the correct subcontractor, please verify the subcontractor's address and industry information listed above. Any holdback on this account may be released for contracts completed, or for work completed to the date of this letter. If the subcontractor is performing work for you outside Alberta, contact the WCB in that jurisdiction to determine your clearance and other WCB requirements. Any alteration of this document is strictly prohibited and subject to a penalty up to $5,000 on the first offense and $5,000 for each additional offense, up to a maximum $25,000. Yours Truly, ebusiness Support Team (6303782) GET YOUR CLEARANCES ONLINE - GO TO DECC.WCB.AB.CA