case keeping study our employees safe

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1 case keeping study our employees safe Capital Drilling (Capital) have an uncompromising commitment to the occupational health and safety of our employees and others where we work. Our HSEQ objective is to create and sustain an incident free, safe, and healthy work environment for everybody in our workplace and the communities where we operate. Our goal is zero harm as we strive to prevent injury and incidents and achieve excellence in our safety and health performance. Safety Milestones Capital s safety focus has achieved outstanding safety milestones. 9 Years LTI Free (April 2016) Geita Gold Mine, Tanzania 8 Years LTI Free (January 2016) Mwanza Support Facility, Tanzania 5 Years LTI Free (February 2016) Tasiast Gold Mine, Mauritania

2 Leadership Accountability At Capital, our safety leadership culture starts at the top. Executive Leadership Team (ELT) and management teams are accountable for delivering a safe working environment while visibly fostering our safety culture across all sites. We conduct regular HSEQ meetings at each project and with the ELT to address workplace hazards, risks, failures and trends. Confident, Skilled, Competent Our Path to Achieve Zero Harm Safety is at the heart of all we do at Capital. We operate in many diverse, remote and often difficult locations, and our employees health and wellbeing, regardless of where they work, is paramount. Our company s performance is reviewed monthly by our ELT and through our Monthly Project Reviews. Our focus is not retrospective - we focus on addressing leading indicators, trends, behaviours and conditions influencing our Class 1 Risks. Safety Risk Leadership Walks Our leadership and site management teams undertake regular Safety Risk Leadership Walks throughout our operations. Their focus is to work with our employees who are exposed to the highest levels of risk. They will identify potential hazards and provide support to eradicate behaviours or conditions that have the potential to cause significant harm. CEO Mark Parsons completing a Risk Assessment discussion with Regional HSE Business Partner Mohammad Shawqy Capital s focus on safety leadership, employee training and other health and wellbeing initiatives have delivered the lowest ever All Injury Frequency Rate (AIFR) results Our numerous safety initiatives, training programs, policies and procedures are designed to ensure all our employees have the knowledge to conduct their work safely and to address Class 1 Risks in our business. Most importantly we work with our employees to ensure they understand the controls to mitigate any risk and are empowered to act if they are unsafe in their workplace or they identify an unsafe condition or behaviour. Golden Safety Rules Our Golden Safety Rules are the overarching guidelines that all our employees are required to abide by to prevent harm to themselves or others in the workplace. The Golden Safety Rules address expected behaviours and are specifically designed to address Class 1 Risks in our business - those risks that have the highest potential to cause significant harm. We also understand the importance our customers place on safe operations - free of incidents, hazards and near misses. Our customers can be confident that our company will operate to the highest safety standards possible and diligently focus on continuous improvement. Project Manager Garnet Woodford leading a Safety Risk Leadership Walk with fitters and drillers involved in scheduled in-pit servicing. Project Manager Rob Bakes participating in a Safety Risk Leadership Walk with a member of our underground drill crew.

3 This program was initiated in Employees embraced the hazard identification process and as a result, nearly 7,000 hazards were identified and addressed during the year. Most of these were controlled immediately, improving employee awareness of their immediate job risks and leading to a 45% reduction in the AIFR result on the prior year. Monthly CEO Message Every month, our CEO announces a safety focus topic. These messages underpin the Golden Safety Rules and reinforce our focus on Class 1 Risks. Our Project Managers are accountable for communicating them via tool box meetings, HSEQ noticeboards and other site specific initiatives. Speak Up Culture We have a strong Speak Up culture. All employees have the right to refuse to complete a task if: they are not trained; they are unsafe; or they believe it places themselves or others at risk of harm. Every employee is expected to be trained according to the Safe Work Procedure (SWP) to competently and confidently complete each task. Case Study: Property Damage Reduced 50% A major project site in Egypt was Our Safety Leadership Culture visible experiencing high Property Damage reinforcement of these initiatives by our Incident levels in Light vehicle ELT and Site Project Management driving an identified Class 1 Risk was identified as a contributor. During 2015 we initiated a new Know Your Vehicle, Know Your Limit campaign at the site. We also revitalised our journey management program across our business. together with our employee s commitment to improve these results, reduced the site s property damage incident levels by 45% in 2015, with an overall business reduction of 50%. Importantly, this trend is continuing through Graham Almond, Group General Manager Risk and HR, conducting a Safety Risk Leadership briefing. Managing Risk and Continuous Improvement Our ultimate goal is a zero harm workplace. We will strive to reduce risk to as low as reasonably possible using education and awareness, new technologies and contemporary risk management strategies - to monitor and control risks and continue to work to improve the safety of our employees and our operations. Class 1 Risk Program Our Class 1 Risk Programme supports our goal of zero harm. The framework identifies Class 1 Risks, ensuring our employees understand the related controls and implement activities to mitigate them. It ensures we systematically and continuously work to reduce risk within our business to as low as reasonably possible. ICAM was implemented in 2015 and has enabled us to improve our understanding Additionally, every Capital drill rig is provided with a dedicated training package and work of factors contributing to incidents. area risk management training enables The data has resulted in development site specific risks to be identified. Our of targeted training and awareness unique Manager as Coach programme programs to address Class 1 Risks, as well as establishment of leading indicators - mitigation strategies for these are monitored at monthly ELT meetings. supports continuous improvement of our safety performance. It provides leadership behaviour training for managers to effectively coach and improve team performance. Our employees have the right to Speak Up if they feel or see something unsafe in their workplace ICAM Incident Investigation Capital employs the ICAM (Incident Cause Analysis Method) incident investigation tool in the case of any incident. The ICAM model is internationally recognised, applying best practice Human Factors and Risk Management principles. It reviews factors directly linked to an investigation, together with broader organisational contributors to establish the root cause without apportioning blame. Corrective actions are then implemented to prevent future incidents. Training Programmes We invest significantly in training programmes to ensure the ongoing competency and safety of our employees. We provide every person on our sites, including subcontractors, the opportunity to improve their knowledge and skills through training, coaching, feedback and sharing information, site-based practical training, together with theoretical and competency based assessments. Employee competency, captured in our Training Database, and personal risk identification practices allow development of tailored programmes for individuals or sites. Employees receive extensive on site training

4 Drilling Equipment Standards At Capital we operate one of the youngest fleets in the industry, however we continue to improve and upgrade our fleet to ensure all rigs meet our Drilling Equipment Standards (DES). The standard provides minimum safety and operational features for all rigs and equipment to reduce risk and provide the safest on-site working environment possible. The specific rig modifications and improvements we have initiated are as a result of the extensive knowledge of our experienced operators, who understand how to optimise efficiency and safety in the working environment. Brand new rigs will be modified to incorporate improvements and ensure these higher standards are met. The focus on improving efficiency and health and safety conditions on our equipment ensures our clients can be confident our rigs will provide more productive drilling programs, safely. In some cases, our clients have adopted our minimum specifications for application across all their drilling contractors. Case Study: UPGRADES TO ROTARY BLAST HOLE RIGS Improvements to our Rotary Blast Hole Rigs demonstrate our commitment to modifying our fleet to improve efficiency and health and safety standards on our rigs. Modifications are designed to achieve a variety of improvements, including improved access and ergonomics, enhanced capacity, Our commitment to safety commences at project mobilisation reduced maintenance requirements and Improved access to First Aid Kit addition of further safety features. They Safety Monitoring We use site safety dashboards to monitor the leading and lagging safety performance of individual operational sites. This allows us to track progress against set targets, identify emerging trends and implement pre-emptive corrective actions - which may include one on one training through to site wide programmes addressing observed increases in safety incidents. Project Managers are supported to improve site safety performance through the Manager As Coach programme. Close mentoring and training by the ELT is provided to transfer safety knowledge and improve leadership capability. We also employ high definition cameras on our rigs and other equipment for safety monitoring and training. We undertake training based on the footage where hazards Mobilisation and Journey Management Safety Our uncompromising commitment to the safety of our employees and others extends beyond on-site operations to the overland movement of our employees and assets. During mobilisation or other equipment and personnel transport, stringent safety processes ensure their safety, security and on-time arrival for project start up. include: Rig Walkway modifications for improved safety, easier access to the rig and more efficient maintenance and breakdown access Improved tool access on the drill platform and spanner deck, reducing pinch points when removing tools and adding more space for improved and ergonomic access Improved access to the first aid kit Improved access to emergency stop Improved lighting for night operations or risk behaviours have been identified. Journey Management Plans (JMPs) must be completed for every road journey made Improved access to the emergency stop button by our employees or third party transport Improved lighting for night operations partners. These detailed plans take into account the safest route to the destination, and are closely reviewed by both drivers and site management prior to commencement. The JMP will include regular check-in points throughout the journey, and must be formally closed by both origin and destination Visible green safety light to indicate rig mast pinning has been completed Addition of a winch limit switch Three access points to platform Spanner modifications to improve cylinder life Improved access to drill platform and spanner deck Addition of a winch limit switch Operational sites are monitored for safety performance and reviewed monthly by the Executive Leadership Team. management teams when complete. Where a third party operator is required, we will only partner with companies who deliver a reliable and safe service and who can demonstrate a commitment to following our safety principles and processes. Increased water tank size and pump capacity improvements Upgraded air conditioner for improved maintenance and greater cooling capacity Addition of an auto grease system to improve productivity and efficiency. Three access points to platform

5 Safety is at the heart of our Company Culture At Capital, safety is an intrinsic part of our company culture. We have a genuine commitment to keeping our employees safe and to continually reduce their exposure to risk while performing their work. We expect visible safety leadership across all levels of our company and operations, from our Executive Leadership Team to our drill crews on site. Safety is our employee s first priority. Extensive training for our employees is regularly undertaken, combined with world class safety systems and processes, to ensure risks are understood and action taken to minimise them. All employees have the right to Speak Up if they feel or see something unsafe where we work. Our risk management and continuous improvement programs ensure ongoing progress towards our goal of Zero Harm. Outstanding LTI Free results, together with record low AIFRs, demonstrate the effectiveness of our focus on safety and our employee s commitment to our safety culture. Our clients can be confident that we will exceed the most stringent safety requirements, and deliver safe, and productive drilling solutions. About Capital Drilling Limited (CAPD:LN) Capital Drilling Limited (Capital) provides complete drilling solutions to customers within the global minerals industry including: directional, grade control, production, resource development and underground drilling services, together with geo technical capabilities. The company has extensive experience in diverse operational environments particularly emerging markets within Africa, Eastern Europe, Asia and Latin America. It operates one of the youngest CONTACT US info@capdrill.com fleets in the industry and is reknown for the quality and reliability of its machinery. At Capital, our reputation is built on an unwavering commitment to safety, delivering professional drilling solutions - even in the most remote and challenging environments - and achieving operational efficiencies for our customers.

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