Epiroc Internal Newsletter Issue 05 - OCT 2020

WORD IN THE TUNNEL

Internal Newsletter

October 2020
Issue #3

A MESSAGE FROM
JASON SMITH

Dear Colleagues,

As many of you are aware, the Epiroc Q3 results were In Canada, we have seen a considerable increase
released in mid-October and under the current in community cases as we combat this possible
circumstances, the overall outcomes were positive for second wave of the virus. Safety remains our top
our organization, both domestically and internationally. priority in the community, as well as in our
organization as we move forward. I must commend
This encouraging report speaks to the resilience of our our employees for your ongoing efforts to remain
organization, and for me, it highlights the Canadian cautious and follow our new protocols while
team's ability to weather the storm while delivering completing your daily tasks diligently.
results for our customers and our organizations safely.
It is important for us to continue with this focus and Our Communications Department will continue to
drive, especially as the market remains unpredictable send out reminders regarding our COVID-19
with the lingering threat of a second COVID-19 procedures on a monthly basis and will promptly
wave globally. notify staff of any changes to our safety rules and
regulations as they occur.

As of now, we will continue with most of you (who can) In addition to our personal health, I would also like
working from home. Those who attend the office will to briefly cover the health of our business illustrated
need to ensure they make the proper arrangements in the scorecard below.
with their immediate manager. I would like to remind
everyone coming into the office that it is important to
have your temperature checked and screening form
filled out before entering the facility (for the safety of
you and your colleagues). As always, if you are feeling
unwell please stay home.

As we can see, the OI and OR started to show some We must all continue to treat the situation seriously
recovery and I am aware that many of you are working and act accordingly to ensure we play our role in
on current & future deals that would strengthen the getting through this together.
upward trend going forward. I again ask that we
continue to follow our protocols and like never before, Thanks again to all for your efforts and continued
we stay close to our customers to ensure together with commitment towards your/our responsibilities
them, we successfully navigate our organizations & during these testing times.
industry through these challenging times.
Jason and the Management Team

From Your Business Controller

Hi everyone,

Hope you are all enjoying this home stretch of 2020…it’s almost over! What a year. Other than the
obvious, we have had quite the pile of events. There have been Australian wildfires, the
impeachment and acquittal of Donald Trump, the death of Kobe Bryant, the Black Lives Matter
protests and on a lighter note, the introduction of Joe Exotic, 7 hours of my Netflix life I will never get
back. But rather than looking at it mostly as a year of negativity, perhaps it can be viewed as a year
of transformation for a better future for all (I am trying to keep my glass half full).

In this newsletter, I thought of speaking to you about managing personal finances. There are 3
golden rules to managing our personal state of affairs:

1. Don’t spend more than you make
2. Always plan for the future
3. Help your money grow.

For rule # 1, create a monthly budget. Give yourself a specific “fun” spending amount in excess of
your required spending but make sure you always have some funds left over at the end of the
month.

For rule #2, left over funds mean that you are able to better plan for the future. Whether to save for
a trip, to invest, or to make needed repairs.

For rule #3, don’t just put your money in a savings account. It will not grow. There are many ways
to invest depending on the risk you are willing to take. This is where a financial planner can help.

For a little business news, we are finalizing our plans and budgets for next year. 2021 is shaping up
to be a very good year for us but we will need the commitment of all in order to reach our goals.

As for the remainder of Q4, we need to keep up the momentum we saw in Q3 in order to finish the
year in a strong position. With this we will be able to pay Q4 VC.

Take care everyone and stay safe and healthy.

Sylvie Dumas

Sitting Down with
Yamuna Bajgai

Data Analyst

What is your position within Epiroc?
Data Analyst for the Regional Application Center (RAC)

How long have you been with the company?
11 months

What are your main responsibilities?
Designing, developing and automating Business Intelligence (BI) dashboards and reports
based on the business requirements and implementing, maintaining and supporting BI
solutions (Power Query, DAX, Power Bi Services) in Microsoft and other BI platforms. I also
design data models, analyze raw data and present it to the client in a way that meets their
reporting needs/business requirements. I work on building tools to automate data collection
and correlate similar data to find actionable outcomes to help business users.

What is the most challenging part of your role?
Understanding the right metrics and key performance indicators of any problem and choosing
the correct data and algorithms to provide an actionable result.

What is your favourite part of the job?
I enjoy helping others and solving problems.

What is the most important lesson you have learned in your position?
Remain positive, have patience, nothing is permanent.

What is your favourite project you ever worked on?
Automation of Power BI Dashboard.

Travis Battley Appointed Underground Business
Manager (UBM) for North America

The month of October saw a positive upswing in business for Epiroc Canada and as the good news
continues to come in, congratulations are in order for one of our Canadian team members. At the start
of the month, Travis Battley (former Business Line Manager URE), was promoted to the position of
Underground Business Manager (UBM) responsible for North America.

In his new role as UBM, Travis will work closely with the customer centers in North America to enable
continued success and win additional underground market share in the regions. At the same time, he
will ensure that customer feedback from his region translates directly into our underground portfolio
development and continued focus on increasing our profitability levels and minimizing our commercial
risk.

Travis has an extensive background in the underground mining business. For 10 years, Travis was a
customer of Epiroc (Atlas Copco) in Australia and managed a surface drilling and mining plant hire
business. In 2007, he joined Epiroc (Atlas Copco) as an Underground Product Manager in Perth, then
he took on a role at the divisional headquarters in Örebro, Sweden, as Underground Regional
Business Manager Asia and Australia. His most recent position is how we know him best, working as
Underground Business Line Manager in Canada.

“The North American underground market has a lot of potential opportunities”, says Travis. “It is highly
competitive and has a strong focus by all major OEMs, it is up to us to make the difference. Together
we will find a better way, solve our customers’ challenges, and allow them to focus on their business.
With the solutions-based approach, and our portfolio of equipment, the market is ours to gain.
Consolidating the North American market will allow cross-pollination of experiences and resources, it
will allow the team to follow our customers across borders. With a focus on customer strategy and
execution, this role and structure will allow the same.”

Well done Travis!

Exploration Continues to Thrive!

R thread production and big bore now at work
As expected, the new composite raw material for our R thread drill rods arrived in Montreal
at the end of September. We have not lost a minute and have already started production,
HCR rods are being manufactured as you read this, then N casing and NO 3m rods are up
next! More good news for our tubular products - our big bore CNC has also started working
on PMO material. Way to go team!

Nearly perfect score in the diamond tool production
During the week of September 20-26, the Montreal/Ville-Saint-Laurent plant manufactured
over 1,900 diamond tools with an incredible reject rate of 0.05%...that is only one single
diamond tool that did not make it through, basically as close as one can get to perfection! In
these times where pressure is on the production team to support customers, this number
shows how the numerous years of teamwork and process improvement is paying off.
Kuddos to the team in Montreal for making this possible - this is quite an achievement!

The new number to beat is 6
Congratulations to the Logistics team in DDO for establishing a new REX record during the
week of September 21 - all in all, a total of 6 containers full of various exploration tooling left
the premises to reach customers in various places across the globe. That's a whole lot of
cubic meters worth of drilling solutions for our clients out there. Keep them going like this
team, great job!!!

It's showtime for the new REX production facility!
The Fordia and Epiroc integration brought a lot of changes to our production facilities with
the conversion of the North Bay production center into a distribution center and the
relocation of exploration manufacturing to Montreal. The major changes are now completed
and we are proud to share an insight of the new production floor. We wish we could invite
all colleagues for a real tour, but you know...pandemic. So here's our best take at showing
off our newest production line in a short clip!

12 Life-Saving Commitments

Epiroc Canada started rolling out the 12 Life-Saving Commitments in 2019 based on eight
Group Safety Commitments and added four more commitments regarding Canadian
Regulatory Enforcement.

"We are responsible for our own and others' safety at all times and play an important
role working towards our zero harm goal as an organization by continuing with our
total commitment and adherence to these 12 Life-Saving Commitments, this goal will
be a reality for us here in Canada." - Jason Smith

The Epiroc Canada CC’s 12 Life-Saving Commitments describe how we should behave to
ensure everyone's safety and well-being is prioritized.

The Canadian team created posters displaying these commitments and distributed them to all
branches in Canada. In each site, the employees signed one of the posters as a commitment
from their respective teams.

Wallet-sized cards were developed and distributed to employees along with safety
commitment magnets to attach to fridges and truck dashboards. The general description of
the Epiroc Safety Commitments is included in the introductory orientation package for new
employees. This year, for the completion of these commitments, per Group guidance, the
Canadian team developed a local poster, which relates to each of the commitments and
features Epiroc Canada employees.

SHEQ Talk
Meetings

Epiroc Canada is continuing to conduct monthly SHEQ talk meetings, which is
facilitated and led by one of the Senior Management team and/or other available
managers and supervisors. The goal is to engage employees and encourage
discussions to heighten employee awareness, which in turn improves the safety
culture for all employees.

For the month of August 2020, the SHEQ talk meeting discussed the 12 Life-Saving
Commitments and the new local poster was the topic for the presentation to the
Canadian team. Our different sites adhered to the "new normal" regulations by
having a combination of remote and traditional meetings and keeping 6ft (2 m)
social distance while following all related Epiroc Covid-19 protocols.

We strongly believe that with our ongoing commitment to these safety rules, we will
continuously develop our safety culture within our organization and our personal
lives.

World of Epiroc

As we are unable to visit our customers on-site these days, we have been forced to find alternative ways to
interact. In recent months, there have been more digital meetings and online training sessions. In line with this
development, we are introducing an exciting alternative touchpoint where we can invite customers to come and
see us online. This new digital solution is called World of Epiroc.

World of Epiroc provides an overview of our customers' applications and our related solutions. The interactive
experience includes more than 85 hotspots where the user can easily access product and service information,
videos and customer case stories. In the first release, our Minimum Viable Product (MVP) version, the focus is
to highlight 6th Sense and our zero-emissions solutions.

"I am excited about this new addition to our website," says Lars Almbrandt, Epiroc Web Manager. "World of
Epiroc is prepared to be a flexible and adaptable platform. It opens up new possibilities for us to showcase
interactive 3D content.”

World of Epiroc was originally created as a response to MinExpo 2020 being postponed due to Covid-19. One
of the targets at MinExpo was to display our full 6th Sense offering (automation, system integration and
information management).

"All of a sudden we had this challenge in front of us that we had not really experienced before," says Mia
Olsson, Program Manager for 6th Sense who has been heading the development. "The natural marketing mix
of combining physical events with digital presence was instantly wiped away. Now online was clearly the best
way."

By developing this platform, we have a good complement to our other online activities. No one knows when we
can travel unrestricted again or when physical events will resume. No matter what, the world has changed and
we already knew pre-pandemic that digitalization is unavoidable. Now it has happened a lot faster and the new
landscape is here to stay.

AUTONOMOUS FUTURE FOR
CÔTÉ GOLD PROJECT

70/30 Joint Venture of IAMGOLD and Sumitomo Metal Mining Co. gets Greenlight

The Côté Gold Project, which was officially approved to begin construction in July, has
reached an agreement with Epiroc Canada for us to supply equipment to help kickstart the
new operation.

The Open Pit gold mine will establish its roots in the Chester and Yeo Townships (District of
Sudbury) in Northern Ontario and has an expected mine life of 18 years. The construction is
expected to take three years (2020 - 2023). Once completed, the operation is estimated to
generate $10bn in GDP and $5bn in wages for the province. Exploration in the area is
ongoing and the intention is to extend the total mine life if possible.

As part of the new deal, Epiroc has agreed to supply five autonomous Pit Viper PV-231s
and two SmartROC D65s. The machines are scheduled for delivery during Q1 in 2023.

Great job to everyone in our Canadian CC who made this deal possible. We are excited to
continue growing our reputation as a powerhouse in autonomous mining and supporting our
customers with this evolving technology.

EXPANDING MISSISSAUGA
WAREHOUSE FACILITIES

The project to expand the warehouse
capacity in Mississauga is in full
swing. In the coming few months, the
warehouse will go through a major
transformation with racking being
relocated, floors being refurbished,
lighting being changed and new types
of storage modules being installed.

The Project Leader, Duncan Leung,

together with the warehouse team has

a huge challenge in making all these

changes happen while the warehouse is

operating at full capacity. It is a lot of

hard work, but the change is necessary

to support future business growth.

The goal is to have a more productive

warehouse with doubled storage PHYSICAL INVENTORIES
capacity and an improved work UNDERWAY
environment.

The project has been slightly delayed Jason Stos is leading the physical inventory
counts across Canada this year. Most of you

from the original plan, partly due to have already been working with Jason as many
COVID-19. The plan is to have the locations have been completed, in fact, less than

project completed in January 2021. 10 warehouse locations are left to count. I would

like to thank everybody that is involved in the

inventory counts. It is a time consuming task, but

extremely important as we have a requirement to

have all stock locations in all warehouses counted

at least once per year. The objective of a physical

inventory count is to audit our warehouses’

inventory and ensure that the stock data in the

system matches the inventory that is actually in

the warehouses.

The plan for next year is to spread out the physical
inventory counts over several months to reduce
the workload.

- Kris Dymek, Logistics Manager

New Routines
in Cadillac

CADILLAC FACILITY
IN VAL D'OR, QUEBEC

Improved control and reduced stock losses are the result of a new procedure in
Cadillac, implemented by a team of individuals from several functions. Stephanie
Audet, Mario Landry and Ron McKerral developed and implemented a new
routine to reduce issues with stock losses. There had been issues with items
being removed from inventory without proper documentation, which in some
cases caused missed revenue and missing stock.
The new routine gives Mario full control of what is removed from the warehouse.
Stephanie registers the customer requirements in the system, enabling pick lists
to be printed to remove the products required. No manual routines to pick the
material is necessary, and the inventory is updated at the same time as the
material is relieved from inventory. The team acknowledges that this routine
requires additional time, but that it is less than the time spent investigating the
stock losses and the cost in cases where the variance can’t be resolved.

DELIVERING NO MATTER WHAT

The Western Team Scores a Big Win with Alexco Resource Corp.

Boomer 282 en route to Alexco
Resource Corp. in Yukon

During the AME Round Up tradeshow in Vancouver earlier this year, our team met with
Alexco Resource Corp representatives who expressed an interest in ordering two Boomer
282s for their mine start up. In the beginning, the Alexco reps emphasized the importance of
flexible finance terms. With this knowledge, our team was able to offer competitive interest
rates while continuing to sell the value of the machines and in the end, we won the deal!
With the emergence of Covid-19, the delivery was postponed, but a PO was issued to
solidify the arrangement.
As the delivery date approached, the Western team experienced challenges that began to
complicate the deal. Alexco had concerns about the specifications of the rig and our team
had to meet with the Yukon Health and Safety Regulations Board to ensure all standards
were being met. To assist the client further, our team installed a fixed canopy and our shop
found creative ways to shrink the size of the Boomer 282 to accommodate the needs of
Alexco's operation.
After we made the necessary adjustments to the machines, Alexco accepted the delivery of
the Boomer 282s, which were successfully commissioned on site.
Great job to the team in the west for adapting to the changing circumstances. Being flexible
for our customers was the key ingredient that allowed this deal to get done!

A Strong Team in the Abitibi Region

My role as Service Manager started in June 2019, so I am now on my 17th month in the role. The job is a
continuous challenge to grow our team with the right personnel. Currently, our Abitibi sales team consists of
Mathieu Gravel (Account Manager), Olivier Paquet (Account Manager), Pierre Lavictoire (Product Manager –
Underground Rock Excavation), Mathieu Boivin (MRS Product Manager Service Sales) and everything is
overseen by our Regional Manager, Daniel Taillefer.

The current success of the service team is due to the commitment of our colleague, Sylvain Levesque, who
has mentored new technicians to learn the day-to-day duties, both internally and externally. This allows us to
support our clients in all environments, whether it is in the office or the field. It can be difficult to hire and
send technicians into the field, so our current team ensures the necessary groundwork is in place by
supporting new employees. As a result, when customers see Epiroc technicians at their site, they
automatically assume he or she is an expert, which continues to build trust and nurtures a great working
relationship.

Our team consists of different levels of knowledge and experience. Each member has their own strengths.
What makes our team in Abitibi particularly effective is our ability to fulfill customer needs by working
together (Sales & Service).

As we move ahead, I know our team will continuously
improve and maintain our customers’ confidence.

- Sebastien Maltais

Beneficiary Designations

A Message from Human Resources

All full-time permanent employees of Epiroc have a Pension Plan, the Life Insurance Benefit, and
the Accidental Death and Dismemberment (ADD) insurance, provided by our Group Benefits
provider, Manulife. It is important to complete the Beneficiary Designation forms. If you have not
designated a beneficiary, the assets in your plan will go into “probate” – the legal process of
administering your estate, in the event of your death. Designating a beneficiary will allow your
assets to bypass probate, which can be a time-consuming and expensive legal process. It will also
allow your money to remain tax sheltered until withdrawn.

To find the Beneficiary Designation Form, you must login to you Group Benefits Account on the
Manulife website. You will need Epiroc’s Plan Contract Number, which is 0644001, Member
Certificate Number (can be found on your Manulife card) and password. Once in your account,
scroll over the “Forms” tab on the top menu and select “Find a Form” under the Administration
Forms heading. This will take you a page with the list of Administration Forms; select the green
arrow next to “Change of Beneficiary” to download the form.

Once you have completed the form, it must be signed with a handwritten signature and sent to
both the HR Department, at [email protected] and the Payroll Department at
[email protected], to be processed. Manulife will not accept an electronic
signature because it is a legal document and the changes you made will be declined. The following
percentages includes the missing beneficiaries of our employees for the different accounts eligible
in our Pension Plan:

RPP: 55% Group Policy # 10003437
RRSP: 87% Group Policy # 20003437
TFSA: 79% Group Policy # 41003437

RRSP and TFSA plans are voluntary and employees can open these account at any time. If you
are interested in opening an account, please ask the HR or Payroll Department to get you started.
These accounts must also have beneficiaries identified as they are separate plans from the RPP.

Manulife is supporting employees and will be reaching out to anyone who does not have a
beneficiary designated on file with the Group Policies mentioned above. You may expect to receive
a Beneficiary Action Notice by mail with instructions by October 23rd, 2020. If you have any further
questions or concerns, please do not hesitate to reach out to the HR Department at
[email protected].

MOMENTUM IN THE MIDWEST

The Mid-West region is on the rise, especially in the last quarter! Along with a positive jolt to the
business, the region has added a fresh crop of new hires to the team. Here are the new employee
additions in the region this quarter:
Boyd Deschambeault, New hire AMI, Creighton bit shop
Cody Kowdrysh, New hire AMI, Apprentice Technician, Midwest Drill Shop
Crystal Sanders, returning, Account Manager HAT Mid-West and West regions
Daryl Wilkinson, New hire Epiroc, Hudbay Lalor Mine
Dave Evans, New hire AMI, Hudbay 777 Mine
Jesse Hedman, New hire AMI, Midwest Apprentice Technician
Kaymen Salamanowicz, New hire AMI, Creighton bit shop
Lane Regnier, New hire AMI, Midwest Apprentice Technician
Ryan Neufeld, New hire AMI, Hudbay 777 Mine
Tony Cablik, New hire Epiroc, Hudbay Lalor Mine
We would also like to issue a special congratulations to Andrew Southall and his family. They
welcomed a new baby at the end of the summer - Bodhi was born August 13 and everyone is healthy
and happy.
A warm welcome to our new team members (and Bodhi). We look forward to continuing our 3rd
quarter success into the final months of the year!

Branding Underway

NEW REMAN FACILITY IN LIVELY ALREADY TURNING HEADS

The new Reman Center in Lively, Ontario is undergoing the final stages of its branding
transformation in preparation for a customer launch in 2021. The facility will specialize in
remanufacturing components, giving them a new lease on life through a 15-step process
that guarantees the highest quality and care.
This system benefits customers by allowing them to send in their old or damaged
components, which are then renewed and refurbished by experienced Epiroc technicians.
When they receive their equipment back, it is like new (for a fraction of the cost of replacing
the entire component).
We are excited to unveil the renovated interior in the near future - stay tuned for more
updates to come!

Record-Setting Raiseboring at Redpath

Epiroc Canada is helping to make history at the Niobec Mine in Saint-Honoré, Quebec with
a record-breaking new ventilation shaft, which measures 6.3M in diameter and 875M deep.

The new ventilation shaft will be the third largest by volume in the world and holds the
distinction of being the largest in North America. The raise will be completed by Redpath
using their own Redbore 90EX machine and they are pulling the raise with an Epiroc 6.3M
Midi Base Reamer - the largest of this design manufactured to date.

As success stories continue to pour in from the Redpath operation, we look forward to more
opportunities to raise the bar.

Well done team!

Share Your Stories

Do you have an exciting story from site? A great picture?
As many of us across Canada continue to work from home, it is more important than ever to promote our
brand digitally to connect with our customers. Our ongoing mission is to continue growing our social media
following and overall engagement. If you have something you would like to share, please send it to the
Communications Department, [email protected] (with a brief description if necessary).
Stories about on-site experiences, exciting projects and new hobbies (possibly during quarantine) are
encouraged and the most creative submissions will be included in our internal newsletter and/or added to
SharePoint Home (with full credit to the photographer). Please do not include recognizable customer site
landmarks in photos unless you receive written permission. If there are non-Epiroc employees included in your
pictures, we will require their written consent.
A big thanks to the team members who have been sending in their photos; we are looking forward to more
great content to cap off 2020!

Photo Credit: Aaron Barnett