Redpath Expands into Australia

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1 NEWSLETTER OF THE REDPATH GROUP No. 14 September 2008 Redpath Expands into Australia G'Day, eh!... tremendous priority placed on delivering safe, quality service to our clients." In keeping with the Redpath brand, Eroc will officially change its name to Redpath Australia PTY Limited. Redpath's world headquarters in North Bay, Ontario, Canada is pleased to welcome Brisbane as a regional business office joining Sudbury, Ontario; Reno, Nevada; Jakarta, Indonesia; Santiago, Chile; Ulaanbaatar, Mongolia and Johannesburg, South Africa. th On September 15 Redpath and Eroc Pty Limited announced that an agreement has been signed that will see The Redpath st Group acquire 100% ownership of Eroc effective October 1, Eroc Pty Limited is a mid-sized Australian mining contractor that has been providing services in the metalliferous, civil construction and coal infrastructure markets in Australia and southeast Asia since Gordon Shannon, CEO of Eroc, said "We are very pleased to become part of The Redpath Group as we feel this will allow us to grow our business significantly which in turn will allow us to provide an enhanced suite of services to our clients and provide more opportunity for the personal growth of our employees." George Flumerfelt, President and CEO of The Redpath Group, has been particularly impressed with the quality of Eroc's management and staff, "I am extremely impressed with the professionalism of all the Eroc people I have met and I expect a very smooth integration process over the coming months. The cultures of the two companies are remarkably similar with a

2 SAFETY Message from the President... Safety Leadership With the continuous influx of younger and less experienced workers joining the ranks of The Redpath Group, safety leadership, more than ever, has become most essential at all levels of supervision. In this context, safety leadership means ensuring that every daily task is conducted safely and efficiently. No exception to the rules. Ron Dion Manager, Safety & Training Short cuts cannot be condoned. Deviations to safe practices cannot be condoned. Operating unsafe equipment cannot be condoned. Corrections must be brought forward immediately when any unsafe acts are observed. We want every Redpath employee back home safely every day at the end of their shift. For this to happen, we must count on your safety leadership. What we permit, we allow. A final few words to welcome Bruce Fraser and Dan Blais to the Redpath Safety and Training Department. Bruce will start in the nd North Bay office on September 2 as Safety Superintendent and Dan Blais, Safety Trainer is working out of our Sudbury office. Safety... First, Last, and Always There have certainly been some significant developments at Redpath this year! st On October 1, Australian mining contractor, Eroc Pty Limited, will become part of the Redpath family. In September, Redpath announced the purchase of Eroc, and we are very excited at having Eroc CEO Gord Shannon, and COO Rob Nichols, and their highly professional team join Redpath. George Flumerfelt President & CEO I expect the integration of Eroc into Redpath to go very well as the cultures of the two companies are remarkably similar with both focussed firstly on the safety of their employees and the delivery of value to their clients. One of the things I love about working at Redpath is the incredible "can do" attitude of Redpath employees. It is incredible, really, the creative ideas that come up. I'm convinced it is simply part of our corporate DNA. This year, we've had three great ideas that have been brought to market and are delivering exceptional value to our clients. In the mechanized raising business in Sudbury, Randy Grenon and team have developed the "shuffle nest", a patented method of setting up raise climbers that eliminates the need to take down back and have an expensive elevated climber set up. This method allows raises to be started much more quickly, significantly reduces excavation costs, and delivers tremendous value to mine owners. Redpath DNA at work! cont'd next... Continuous Improvement in Safety Performance

3 CANADA Exciting News! Goldcorp Inc. has selected Redpath as its "Contractor of Choice" for underground works. This means a lot to both Redpath and Goldcorp who will work together to develop projects such as Eleonore in northern Quebec, Hoyle Pond, Musselwhite and the Red Lake complex, including Campbell Mine, over the course of the next 5 years. Projects will include planning, engineering, estimating and the execution of shaft sinking and equipping, construction and mine development projects. "Goldcorp is pleased to associate themselves with companies of great reputations and stature such as Redpath. We look forward to working with them to forward our business objectives." ~Frank Johnson Sr. Regional Project Manager Goldcorp Goldcorp, a Canadian company, is one of the world's largest gold mining companies. Goldcorp has 17 world class operations and development projects world wide. Les Mines Opinaca Eleonore: Shaft sinking and lateral development Liberty Mines Inc.: Lateral development. Xstrata Montcalm: Mine production and operation. Xstrata Sudbury Operations: Vertical development and construction. Vale Inco, Sudbury Operations: Lateral and vertical development and construction. FNX Mining Company Inc.: Lateral and vertical development and construction. Goldcorp Inc.: Contractor of Choice. Shafts, lateral and vertical development. Lac des Iles Mine: Lateral and vertical development and construction. Comaplex: Arctic exploration development. AECL: Miscellaneous services. Red Lake Raglan - East Zone Portal Another exciting new development for Redpath is the formulation of AMC (Associated Mining Construction Inc.). AMC is a joint venture company between Redpath and Thyssen Mining. The joint venture was formulated to undertake shaft development and studies for the Saskatchewan potash industry. A dewatering and shaft rehabilitation project is just getting underway for the Cochenour Mine in northwestern Ontario. And, we are also currently mobilizing for the 6.5 m dia. Eleonore shaft project to start on-site construction in December. CANADIAN OPERATIONS "Redpath is honoured to be chosen by Goldcorp to help advance their upcoming mining projects and we look forward to a long, successful and mutually rewarding relationship." ~George Flumerfelt President & CEO Redpath The Canadian Operations of Redpath are operating at a very fast pace and are growing significantly in volume. Even though the mining activity has increased substantially in Canada and abroad, the Canadian Operations safety record has improved 22% from last year. This is due to the hard work and dedication of our Superintendents, supervisors, employees and our safety and training departments. Currently, our list of valuable clients and activities include: Blue Note Caribou Mines Inc.: Lateral development and shaft rehabilitation. Xstrata Raglan: Lateral development and construction. The new career opportunities within Redpath are at an all time high. We invite interested parties to contact us. Many thanks to our existing employees and staff who have made Redpath the great success that it is. Bruce Dunlop Message from the President, cont'd In raiseboring, the Redpath team has added two new drills to the Redbore line; the Redbore 50UR and the Redbore 100. The Redbore 50UR is a dual purpose drill designed to drill box hole raises as well as conventional raises. This drill is ideally suited for block cave mines where large numbers of drawbell raises are required each month. As with all the Redbore drills it is small and compact allowing for easy movement around the mine. Our first Redbore 50UR is currently drilling at Codelco's El Teniente mine in Chile. The second innovation by our raiseboring team is our latest drill the Redbore 100 quite simply the world's most powerful raise drill. It is designed to handle raises of up to eight metres in diameter and 1000 metres in length. I know of a few mine design engineers who are currently reviewing their existing mine design now that they know about the Redbore 100! After the MINExpo show, the drill is on its way to its first job, a two hole project at Vale Inco's South Mine in Sudbury. Redpath DNA and the Redpath spirit Gotta love it!

4 Advancing Raising Technology Recent Redpath innovations have seen advancements in both the raise boring and mechanized raise climber methods of excavating raises. The world of raise boring has just experienced a leap forward in technology. Redpath's Redbore 50 Up Ream (RB50UR) raise drill rolled off the manufacturing assembly line in January of this year and is currently undertaking production raises in Chile. The newest addition to our operating fleet of raisedrills, the Redbore 50EUR represents the latest in technologies and a new breed of upreaming raisedrills. The drill is designed primarily as an upream (blind hole) machine - this means it will drill a pilot hole above the rig then add a reamer up to 1.52 m (5 ft) diameter and push up to provide a raise The drill can also be utilized in conventional raiseboring operations, drill a pilot down to a breakthrough, install a reamer up to (nominal) 2.13m (7 ft) and backream to the drill. To add yet another dimension to the drill, it can be used in a downream configuration drilling a pilot hole down, trip the rods back up and add a reamer at the drill then push downwards - this allows for reaming without having manpower exposure below at the breakthrough level - Safety - First, Last and Always. Being a multi-directional drill, the Redbore 50EUR provides clients the opportunity of one drill, multi applications. See also - the "Shuffle Nest" in this issue. The Most Powerful Raisedrill in the World - the Redbore 100 will maintain a low profile. Being launched at MINExpo 2008 in Las Vegas, the Redbore 100 has a nominal capacity of up to 8 m (26 ft) in diameter and up to m (3,300 ft) in length. The Redbore 100 will be starting its first project almost immediately after being commissioned in early This first project will consist of completing two 566M (1860 ft) X 5.5M (18 ft) diameter raises. These raises will require the Redbore100 be set up on elevated steel collars capable of supporting the entire thrust capabilities of the drill - at 3.5 million pounds, that is no small feat. Redpath will market its first Redbore 100 early in We've all heard it said before - "size doesn't matter" but - when you're confined underground needing to excavate to house a raise drill you realize - size really does matter!

5 After making an introductory appearance at ExpoMin, Redpath's first Redbore 50UR was put to work underground on a project for Codelco in Chile. Local media and dignitaries, clients and Redpath employees were on hand for the official "unveiling th of the Redbore 100 on September 5 at Redpath's shop complex in North Bay. The Raiseboring shops and office crew who's seemingly tireless efforts brought a vision of the Redbore 100 and made it a reality. Louise Young (left) poses with her namesake "The Queen Louise". George Flumerfelt made the announcement at the official unveiling. Set up underground Our contracting fleet and all crews are fully occupied in these busy times. A couple of project highlights are: Jim Buckel and Mark Sloan take some leisure time in Red Lake. TECHNICAL SERVICES In February, as a result of the strategic planning process, a formalized shaft sinking group - managed by Kevin Melong - was created as part of the Redpath technical support team reporting to Rocky Webb. The shaft group will be involved in all shaft projects undertaken by The Redpath Group. At the time of writing, we are either contracted or in negotiation on 19 different shaft projects around the world. Need I say more about how busy this makes the entire technical service group including the engineering and design team, the workshops, field installation crews and the aforementioned shaft projects team. To ensure we continue to offer our clients a high level of service, we are pleased to announce the addition of Darren Tschanz - Area Manager, Shaft Projects; Derek Naude - Manager, Engineering and Jules Beland - Electrical Superintendent. RAISEBORING Andy Fearn Some Redpath innovations have recently been utilized as our Redbore 70 and Robbins 85R were converted from hydraulic machines to state of the art Redpath designed, AC variable speed electric rigs, Both raisedrills are now powered by twin 200hp electric motors and are run with Redpath designed PLC drive systems. # The Redbore 70 currently operating in the North West Territories has recently had its scope of work extended until approximately Fall The new drive system has certainly proved its worth by increasing advance rates by as much as 50% on a 300 m (684 ft) X 4.0 m (13.2 ft) diameter raise. # The 85R will be occupied on three projects until the end of The first project, just starting in northern Quebec, is a fascinating one. At 837 metres (2746 ft), we are drilling the longest directionally steered raisebore hole in the world. These RVDS steering tools and operators are provided by a company based out of Germany. Once drilled through we will ream a 2.43M hole which in turn will be utilized as a pilot for a shaft sinking/slashing operation. Sticking to our motto of Safety - First, Last and Always, a few of our projects have achieved some outstanding results: # Diavik project - one year without a single Lost Time or Medical Aid accident. # Trout Lake project - over 9.5 years - no Lost Time accident. # 777 project - over 6 years - no Lost Time accident. Congratulations and a big "Thank You" for all your efforts and - keep up the good work! Rob Bettiol MRC (MECHANIZED RAISE CLIMBER) With a fleet of 58 climber units and almost 2 ½ miles of guide rail, there is a constant turnaround of fleet gear returning from successful projects in need of refurbishing to be sent to its next destination with new safety components and fresh paint. Norm Boucher keeps the boys on their toes. We have been working non-stop preparing gear returned from the Sudbury camp for all the potential projects we see coming up in the near future.

6 Double Drive Climber at Arizona 1 In Arizona, the team is rehabbing a vent raise from surface down 1200 using a double drive raise climber with a hanging staging set up. Our project at Goldcorp s Campbell Complex in Red Lake is currently underway and is the site of our next side shift (Shuffle) nest raise climber set up. Overseas, the raise project in Indonesia continues to be strong and we are starting our mechanized raising program in Mongolia. U.S. AND CENTRAL AMERICA Gary Gagain As always our focus is Safety First, Last and Always and as such we are pleased to report that our operations to date are without a Lost Time Accident in 2008 and in fact, at the time of writing we have accumulated over 18 months without an LTA. Our TMI currently sits at 1.6 as compared to a TMI of 3.6 at the end of A great effort by all is to be commended but, as always, we continue to strive for that ultimate goal of ZERO! There have been some notable achievements on our projects since our last edition. At the Lake Dorothy Lake Tap Project for Alaska Electric Light and Power, outside of Juneau AK, the actual breakthrough round into the lake was blasted at th approximately 0920 am Alaska Time on August 19. This project was completed to date without a Lost Time Accident, without a Medical Aid Accident and with only one First Aid incident. Considering the location and logistical challenges of the project this is truly a tremendous achievement. In Mexico and the rest of Central America prospects look great for expanding our business. Chris Hickey SOUTH AMERICA Things at last seem to be stirring in South America with the finalization of the negotiations for a 3.5 kilometre river diversion tunnel with Codelco at its Andina mine to the north of Santiago. The contract, starting in September, will take 21 months and includes a 4 month winter shutdown scheduled for mid 2009 during the period when avalanche conditions prevent access to the site. The new fleet is already en route to Chile, with the first Jumbo arriving by airfreight earlier in the month, and recruitment of the 180 strong workforce has begun. Elsewhere, the RB50UR, exhibited at ExpoMin in April, is now operating at Codelco s El Teniente mine to the south of Santiago. Dieter von Doeler flew to site in August to support our local staff and manage the program. Once proven to be successful, Codelco have already sought proposals to keep it on site to prepare the pilot raises for the drawpoints in their block cave mine. Now There's a Choice! - Shuffle Nest Lake Dorothy - Breakthrough, August 19, 2008 Carrying on in Alaska, we are in the final stages of finalizing a contract extension on our Teck-Pogo Project which will see us continue mine development on site through the middle of The Niblack Exploration Project, on Prince of Wales Island, was completed accident free and with no MSHA citations throughout the one year project. Congratulations to all involved. In the lower 48 work continues at a fast and furious place. Our West Griffin Project at the Barrick Goldstrike Underground Division has worked over two years without a Lost Time Accident and only one MSHA reportable. This project was recently named to receive the first Contractor s Safety Award from the Nevada Mining Association and Dan Capparelli, Redpath s project superintendent was named Superintendent of the Year for both Contracting and Underground Mining Operations. At our Pend Oreille project, we were recently awarded a contract extension to drive an exploration drift to a new potential mineralized zone. This work involves driving underneath the Pend Oreille River as the surface topography is too steep to properly drill the zone from surface. Developed by Redpath, the "Shuffle Nest" delivers great value to our clients offering faster set-up, earlier raise completion, no wasted excavation and significantly reduced costs. An alternative to the traditional raise climber nest, it provides a method of parking a raise climber off to the side allowing the passage of scooptrams for mucking the raise bottom.

7 We continue to work with Rio Tinto in Peru, providing client supervisory support to their local tunnelling contractor at their La Granja mine, whilst in Argentina, a London-based mining house is working with us to finalize a raisebore contract and develop a long term alliance for their underground development work at their mine in the Patagonian region of the country. With our staff, Pablo Sepúlveda is about to relocate to the US with his family for a training stint in Reno, whilst three expatriates are moving south to join the Redpath South American team to support the developing business and help ensure that the Group standards are implemented at the sites. The future looks good for Redpath here in South America. MONGOLIA Graham Buttenshaw The long awaited election in Mongolia is over and a majority government has been elected. This bodes well for the Investment Agreement between Ivanhoe and the Mongolian government to be finalized and the full release for construction of the Oyu Tolgoi (OT) project. That means the go ahead on what is in the order of a $4 Billion project to build a 100,000 tpd concentrator, open pit, underground block cave mine and 500MW power station in the South Gobi desert. During construction, some 6,000 people will be deployed to build the concentrator and infrastructure and in production the mine will employ approximately 2,000 people. At full production Oyu Tolgoi will contribute in the order of 30% of the GDP of Mongolia. Redpath anticipates being involved at OT for a long time yet. In addition to OT, the Western Prospector uranium project in the north east of Mongolia continues to also progress towards a feasibility study and an operating agreement with the government. All being well, Gurvanbulag will develop into a 1,500 tpd underground uranium mine another first for Mongolia, and again we anticipate being involved at WP for a long time yet. Natural Light Show near the OT camp Andy Fearn We are currently driving the two Grasberg Ventilation Drifts (GVD) towards the Grasberg block cave infrastructure to get ready to start the development of the ore under the current Grasberg open pit. We also continue to support the producing Deep Ore Zone (DOZ) block cave with MRC miners and tunneling crews. High scaling crew Our multi-talented crew - not only are they skilled miners but they're also trained mountain climbers- Our slope stabilization project has been well executed and receives a lot of attention. We are very proud of our Dispatch Ridge Crews that have proven themselves as high scalers. In SOUTH AFRICA Demand for Redpath's services has been very strong in South Africa where we are currently extremely busy especially in the contract mining business. We are providing contract mining services to Aquarius Platinum at their Kroondal K5 mines and to International Ferro Metals Ltd. at the Lesedi mine. Mine development continues at Northam Platinum, and we recently completed a shaft project for Goldfields at their South Deep mine. The outlook for Redpath in South Africa remains excellent. We have recently been awarded the contract to develop and mine the Smokey Hills project and are currently in full mobilization mode. In addition, we will be starting to work with Aquarius on detailed planning, scheduling and costing for their Kroondal K6 project. This project will see Redpath crews mobilizing to site in mid In January of this year, we celebrated the accomplishment of having worked one million fatality free shifts a record that we are very proud of and one that took over three years to accomplish. Congratulations! ELSEWHERE AROUND THE WORLD In INDONESIA Crew at South Deeps celebrate achievement Our projects for PT Freeport Indonesia continue to be strong and we strive to achieve our safety goal of ZERO accidents. Big Gossan Shaft takes shape To date in 2008, Redpath has completed metres of horizontal development and 2180 metres of raisebore and MRC raise work. A large portion of this work is to bring the Big Gossan mine into production in the third quarter of next year. K5 Crews also celebrate the safety achievement

8 Mike's Corner Mike Kelly, Sr. Vice President Our Pride is Showing From the Editor Look for our next regular issue due out the end of November. Please send photos, event news, people news for consideration in an upcoming issue to The Scoop in North Bay or by to 15 years ago, we put pen to paper for a XXXL sized drill - this past week, we unveiled our first Redbore The Queen Louise - the most powerful raisedrill in the world. We are now introducing this machine to the industry at MINExpo 2008 I Las Vegas. Market conditions, advances in drill string technology and drive systems all came together at the right time to justify such a major capital investment. While it gets spoken about a lot, I have to repeat that the determination and drive of committed people at Redpath are what made this possible. Together with that commitment is a President who believes in utilizing technology for the betterment of our industry and a supportive board of directors. Looking at the other innovations introduced recently by Redpath such as the Redbore 50UR - launched at the Santiago Expomin - and the shuffle nest - introduced in Sudbury - all reinforces that, at Redpath, the innovative spirit is alive and well and supported strongly by management. Congratulations to Dan Kelly and the boring team on both the Redbore 100 and 50UR, and Randy Grenon on the shuffle nest. Great job! "The Queen Louise" was named for Louise Young - a long time Redpath employee - who keeps the Raiseboring division running smoothly. Call us and see what the Excitement's all about!