FWS Energy Ltd. ENERGY DIVERSITY INTEGRATED DESIGN-BUILD EXPERT ADVICE

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1 FWS Energy Ltd. ENERGY DIVERSITY INTEGRATED DESIGN-BUILD EXPERT ADVICE

2 FWS Group of Companies Historical For nearly 65 years, planned growth and diversification has resulted in the FWS Group of Companies, which now includes the following corporate entities: FWS Energy Ltd. FWS Industrial Projects Canada Ltd. FWS Western Ltd. FWS Industrial Projects USA Inc. FWS Technologies Ltd. Sunstone Resort Communities By leveraging expertise, FWS Group of Companies operates successfully in the following industries: Oil and Gas, Ag-Industrial (Processing Plants), Bulk Material Handling, and Mining (Hardrock and Softrock). Integrated Design-Build Defined The FWS (Integrated Design-Build) approach to project development and construction unifies the client, consultants and contractors into a results-oriented project team. We call it an "integrated" approach to design-build because we maintain the internal resources required to design, engineer and construct. Others may claim to be providing "design-build", but most simply engage third parties to complete a design that they build. This approach does not provide clients with the unparalleled collaborative benefit of single-source accountability for the complete project. The fully integrated approach, from inception to project completion, promotes single-source accountability, improved cost control, shortened time frames, and an experience that keeps clients coming back again and again. Though FWS evolved through conventional design-build construction over 30 years ago, our evolution has involved pioneering a wide range of project development approaches, including various forms of construction management and project development agreements. FWS has also developed a strong commitment to Lean Construction, an approach that consistently strengthens project outcomes including increased productivity, improved safety, reduced quality issues and more reliable schedules.

3 FWS Energy FWS Energy Capabilities Having been active in industrial construction throughout Canada and internationally for nearly 30 years, the FWS Group relies on the experience and expertise of various FWS teams to maintain and grow our reputation. FWS Group recognized the Western Canadian Oil and Gas industry is maturing, where quality workmanship, timely performance and materials integrity should be essential for any successful project. FWS Energy was created to meet these expectations in the Oil and Gas Market and now offers a full spectrum of services that include: Scoping/Conceptual Design Feasibility Studies EPC and EPCM Design-Build Project Management Construction Management Traditional General Contracting Field Operations Support Our skills encompass all facets of engineering, procurement, fabrication and construction. Depending on client requirements, FWS Energy can assist with site selection, scope of work development, design and costing recommendations, budget control, trade tendering, permitting assistance, regulatory and execution of the project works from inception all the way through to commissioning and turnover.

4 FWS Energy Contractual Approaches To ensure alignment with clients' vision and requirements, FWS continues to develop and execute diverse contract forms such as: Lump sum contract Unit price contract Incentive contract Time and materials contract Cost plus contract cost & fixed fee cost & fixed fee with guaranteed maximum price cost & fixed fee with agreement for sharing any cost savings Following completion, FWS continues to work with clients to ensure satisfaction with the projects. Attention to detail does not end when we leave the site. Warranty requirements and consulting services relative to future improvements and additions are all part of the FWS total service package.

5 The FWS Approach Commitment to Lean Construction Continuous improvement and efficiency gains have long been recognized as essential elements for true project success for all stakeholders. As part of this continuous improvement effort, we have committed to implementing Lean Construction principles throughout FWS. Lean Construction is the application of tools and methodologies focused on removing waste from our processes, improving workflow reliability and maximizing the value we provide to our customers. FWS has seen firsthand both improvement to project outcomes and consistency that results from implementing Lean Construction productivity increases, improved safety, fewer quality issues and more reliable schedules.

6 The FWS Approach Integrated Design-Build Excellence The FWS design-build approach has always offered a transparent open book method relative to estimating and cost control. Our success in this area has been instrumental in securing repeat business from a variety of clients in many business sectors. Integrated Design-build provides an efficient and economical means of meeting the needs of established and prospective clients alike and is particularly well-suited to provide cost-effective solutions to today s Oil and Gas industry. The many benefits of an integrated design-build approach include: Faster Delivery Improved Quality Cost Savings/Certainty Singular Responsibility Reduced Administrative Burden Reduced Risk Reduced Claims

7 The FWS Approach Integrated Design-Build Process FWS Energy s in-house engineering and construction team works with your team in a coordinated fashion to design and build your projects. The integrated design-build model allows the Owner to determine project objectives and performance expectations before collaborating with FWS Energy's internal engineering/ construction execution teams to develop details of the design and construction effort. With this foundation, the Owner can select its level of participation along a broad spectrum: from fully involved to a more hands off approach. FWS Energy s team of project execution and design services augments and supports your own operations team. Our project execution specialists will be integrated and will work to your own specific policies, procedures and approval processes. Your operations team will have more time to focus on asset optimization and day-to-day operations Using lean construction focused engineering & design, FWS Energy develops the deliverables you need to make effective decisions on projects. We are dedicated to developing Stage 1 deliverables at cost to build confidence and have the opportunity to execute Stage 2 for your company s projects. The net result is a quality project completed on time with significant cost savings compared to traditional execution methods. Deliverables The energy resource sector has been long recognized as an area of tremendous growth potential and unique construction requirements. Unfortunately, such projects have often lead to cost and schedule overruns that are certainly not tolerable in today's market conditions. FWS experience providing cost certainty and on-time delivery with diverse and complex industrial projects is providing a material gateway into the oil and gas industry sector. Based on the scoping and/or conceptual design study, the client can be assured FWS Energy will confidently provide engineering, procurement, fabrication and construction budgets because we are using our own validated cost data.

8 The FWS Approach Stage 1 Key Deliverables Design Basis Memorandum (DBM) Project Execution Plan (engineering, procurement, fabrication & construction) Cost estimate (+15/-10%) Level 3/4 schedule IFH/IFC work packages Risk register Construction Management Strategy Stage 2 Key Deliverables Weekly, Bi-Weekly and Monthly Reporting Prompt escalation of concerns/issues Field Engineering Change Management Close-out Package FWS Energy s Two Stage Approach to Project Development CLOSE OUT PRE-COMMISSIONING PHASE PROCUREMENT & CONSTRUCTION PHASE FEED/DETAILED ENGINEERING PHASE PRE-FEED PHASE STUDY PHASE CONSTRUCTION FOCUSED ENGINEERING & DESIGN CONSTRUCTION STAGE 1 Final Investment Decision STAGE 2 The following is a partial list of major firms that have benefited from the FWS Group of Companies Integrated Design-Build project development approach: Agrium Inc. Atco Power Bunge North America Cargill Foods Cargill Limited Cargill Malt Americas Ceres Global Ag Corp. G3 (formerly CWB) Goldcorp K+S Potash Canada Lafarge Maple Leaf Foods Ontario Power Generation Potash Corp of Saskatchewan Prairie Mines & Royalty Ltd. Richardson Nutritional Holdings Ltd. Richardson International Limited Richardson Vancouver Terminal Rio Tinto SaskPower Viterra

9 Recent Project Experience GS Turbo Project Owner: Tidewater Midstream and Infrastructure Ltd. Project Location: Drayton Valley, Alberta Project Details: Relocating Turbo facility to another existing facility and tying in.

10 FWS Energy Team Brent Clegg P.Eng. President & CEO Brent is responsible for the overall operation of FWS, a large and diversified integrated design-build construction company. With business development and innovation as his main focus, he has been instrumental in guiding FWS through rapid and successful growth and diversification during his years in this position. Nathan Hornick Managing Director As Managing Director of FWS Energy Design-Build, Nathan is responsible for taking the vision of bringing Integrated Deign-Build to the oil and gas market. His knowledge and experience in the Engineering, Procurement, Fabrication and Construction field, strengthens his approach to this role. In the process of focusing on design and build in the oil and gas market, he and his team have developed and implemented the strategies required to make this endeavor successful. These strategies are firmly rooted in the core values of FWS: Precision, Professionalism, Efficiency and Quality. Brent Bush, P.Eng. Operations Director Brent is responsible for the execution of projects from conception to client turnover. He believes that the extra effort to understand the client s objectives in the beginning is the key to success in the end. Brent has a diverse engineering background with over 20 years of experience, 10 of that being in the energy sector in various roles including project design and management. He has developed a strong network of the industry s top specialists and professionals for the successful execution of each project.

11 FWS Energy Team Deb Kowbel, P.Eng. Project Manager Deb has more the 25 years of project work experience in the oil and gas market. She began initially as a Process Engineer, then Lead Process Engineer before moving to become a Process Manager. This was then followed by more than 10 years in Project Management roles with increasing responsibility and accountability. Her work experience has included a broad spectrum of projects including gas plant expansions, gas and oil facility debottlenecking, compressor stations, liquids recovery, booster stations, steam generation expansion and steam assisted gravity drainage (SAGD) facilities. Rick Jones Pipeline Manager, Senior Engineer Rick joins the FWS Energy team with more than 20 years of EPCM experience in the oil and gas industry, with emphasis on design, fabrication, materials and inspection within oil and gas processing and pipeline projects. This experience has resulted in a strong understanding of the processes involved in the progression of substantial engineering projects undertaken by major oil and gas companies. Randy Lange Senior Construction Manager Randy joins the FWS Energy Ltd. team as a Senior Construction Manager with extensive experience on projects in power, mining and hydrocarbon sectors. Randy has participated in a wide range of management activities worldwide, including conceptual design input, site management, operation management, contracts, budgeting and costing, plant modifications, heavy lifts and emergency repairs. His experience also includes client representation in Owner s Engineer projects, site supervision and construction management, operation management, labour relations, financial budgets, greenfield and brownfield design input, site modifications and repairs, and third party site inspections.

12 FWS Group of Companies OUR VISION To be an exemplary Integrated Engineering/Construction Organization committed to Safety, Quality of Life and Optimum Value for all Stakeholders, while subscribing and adhering to Values that constitute "The FWS Way". OUR VALUES - "THE FWS WAY" The fundamental, non-negotiable principles or aspects of how we do business are referred to as "The FWS Way" which is comprised of the following core values: Honesty and Integrity in All Dealings "Safety First" is our Mantra Customer Focus is driven by Unwavering Entrepreneurial Spirit Creative Solutions drive Quality Projects Corporate Social Responsibility Adherence to Sustainability Empowered Teams strive to overcome All Obstacles OUR MISSION Innovative Solutions for Building Customer Value Winnipeg Calgary Vancouver Fargo AG-INDUSTRIAL ENERGY BULK MATERIAL HANDLING INTERNATIONAL 275 Commerce Drive Winnipeg MB R3P 1B3 Canada TEL (204) FAX (204) #6, th Street N.E. Calgary AB T2E 6S6 Canada TEL (403) FAX (403) Virtual Way Vancouver BC V5M 0C4 Canada TEL (604) FAX (604) Fiechtner Drive S. Suite 110 Fargo ND USA TEL (701) FWSgroup.com July 2017

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