#1Refinancing Presentation October 2013 Sonic Tasmania, Australia BOART LONGYEAR TM#2Important Notice and Disclaimer This presentation has been prepared by Boart Longyear Limited, ABN 49 123 052 728 (Boart Longyear or the Company). It contains general information about the Company's activities as at the date of the presentation. It is information given in summary form and does not purport to be complete. The distribution of this presentation in jurisdictions outside Australia may be restricted by law, and you should observe any such restrictions. This presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of securities, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy, securities in any jurisdiction. Neither this document nor anything in it shall form the basis of any contract or commitment. This presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this presentation based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. This presentation includes forward-looking statements within the meaning of securities laws. Any forward-looking statements involve known and unknown risks and uncertainties, many of which are outside the control of the Company and its representatives. Forward-looking statements may also be based on estimates and assumptions with respect to future business decisions, which are subject to change. Any statements, assumptions, opinions or conclusions as to future matters may prove to be incorrect, and actual results, performance or achievement may vary materially from any projections and forward-looking statements. Due care and attention should be undertaken when considering and analysing the financial performance of the Company. • All references to dollars are to United States currency unless otherwise stated. BOART LONGYEAR" Refinancing Presentation - October 2013 2#3Executed a comprehensive refinancing solution to provide through-the-cycle flexibility The Company proactively sought, and successfully completed, a US$300 million offering of 5 year senior secured notes due on 1 October 2018 ❖ Concurrently, the Company amended its existing revolving credit facility, reducing the facility limit to US$140 million¹ and amending the financial covenants Net proceeds from the notes offering were used to repay drawings under the existing credit facilities --- excluding transaction costs, this was a debt neutral transaction The new senior secured notes and the amended bank facility provide Boart Longyear with: • • Significantly enhanced covenant flexibility Extended debt maturity profile with no refinancing event before 2016 Stronger liquidity position The new financing package provides Boart Longyear with substantial flexibility to operate on a through-the-cycle basis 1 Amended bank facility of US$140mm of which up to US$120M may be borrowed in the form of revolving loans or letters of credit with the remaining US$20M available only for the issuance of unsecured letters of credit BOART LONGYEAR Refinancing Presentation - October 2013 3#4Key elements of the refinancing Senior Secured Note Offering Amended Bank Facility US$300 million of fully secured notes 5 year maturity; notes come due on 1 October 2018 Coupon of 10%; interest payable semi-annually First priority lien over most assets other than inventory & A/R No maintenance covenants Commitments reduced from US$450 million to US$140 million 1 Retained the original maturity 29 July 2016 (-3 years) Amended financial covenant package . Replaced the EBITDA leverage covenant with a minimum asset coverage test and a minimum liquidity requirement Modified the security package to allow the sharing of collateral with secured note holders: First priority lien over inventory & A/R Grid based pricing: Currently LIBOR + 400 basis points. No further refinancing needed or planned prior to the 2016 credit facility maturity 1 Amended bank facility of US$140mm of which up to US$120mm may be borrowed in the form of revolving loans or letters of credit with the remaining US$20mm available only for the issuance of unsecured letters of credit BOART LONGYEAR Refinancing Presentation - October 2013 4#5EBITDA/Interest Enhanced covenant flexibility Amended financial covenants • Leverage covenant eliminated (Gross debt/ EBITDA) Minimum interest cover (EBITDA / interest) reduced from 3.00x to 1.55x Provides adequate liquidity and no leverage test under the revised bank facility New financial covenants . Minimum asset cover ratio of 1.25x . Minimum liquidity test² of US$30M 5.0x 4.1x 4.0x 3.0x 2.0x 1.0x 0.0x 1.55x Estimated Pro Forma headroom analysis (as of 30 June 2013) AR + Inventory + Cash / Total Outstanding 25.0x 22.2x 20.0x 15.0x 10.0x 5.0x Minimum Liquidity (Under Bank Facility) $150 $137M Cash $100 $50 Bank Facility $30M² Interest Cover (LTM) Covenant Requirements 1 1.25x. 0.0x Asset Cover (LTM) $- Liquidity 1 (Accounts receivable + inventory + unrestricted cash of obligor subsidiaries) / total outstanding loans and letters of credit under the amended bank facility 2 Described as unrestricted cash of obligor subsidiaries plus availability under the amended bank facility 5 BOART LONGYEAR Refinancing Presentation - October 2013#6Debt maturity profile significantly extended Former Debt Maturity (US$ million) Revolver Facility1 $50 $50 $350 Existing Senior Notes $300 Current Debt Maturity (US$ million) Revolver Facility $140 New Senior Secured Notes $300 Existing Senior Notes $300 2013 2014 2015 2016 2017 2018 2021 2013 2014 2015 2016 2017 2018 2021 No maturity prior to 2016 1 Scheduled reductions in commitments in 2014 and 2015 under bank loan facility (per amendment dated 29 June 2013) BOART LONGYEAR" Refinancing Presentation - October 2013. CO 6#7Key Performance Indicators 2013 2012 2009 Mid-Sep Mid-Aug Mid-May Mid-Feb June June Rig Count ~1,035 ~1,035 ~1,040 1,065 -1,200 -1,200 Rig Utilisation ~45% -50% -60% 58% ~70% -50% Product ~$22M -$20M -$35M $51M ~$62M -$18M Backlog Headcount ~6,100 ~6,300 ~8,000 8,680 ~11,400 -6,100 Net Debt1 ~$540M ~$545M ~$585M $554M ~$373M ~$750M Positive • • • • Underground business remains stable. Selective R&D investment continues Key Drilling Services project wins Opportunities to take further costs out of the business over time and to increase operational efficiencies. Weaknesses • • ● Commodity prices remain volatile Large mining companies continue to focus on cost reductions Global rig utilisation continues to weaken • Continue to expect 2H pricing pressure Focus on reducing costs and paying down debt BOART LONGYEAR" Refinancing Presentation - October 2013 7#8Vertically integrated business model provides competitive advantages Drilling Services OVERBURDEN SOIL WEATHERED ROCK ROCK BED ROCK (Up to 3,000m) Products Mineral & Energy Drilling Rig Drill Rod String Core Barrel System Mineral & Energy Core Drill Bit Drilling Services Customers High Degree of Technical Innovation Optimized New Product Pipeline Early Insights to Changing Markets Further integration will reduce costs and provide our customers with superior products and services at all mine stages Speed to Market Advantage Superior R&D Capital Allocation BOART LONGYEAR Refinancing Presentation - October 2013 Efficient Testing of New Products Products Customers 8#9Leverage our long-standing relationships with the Majors Customer % of DS Revenues¹ Length of Relationship Customer 1 12% > 10 Customer 2 9% > 60 Customer 3 8% > 25 Customer 4 6% > 25 Customer 5 5% > 20 Overview of Customer Base Majors/intermediates generate over 80% of Drilling Services revenues • More stable exploration drilling budgets and sufficient capital to drill through the cycle Customers that have operations on nearly every continent rely on BLY to provide services across the globe Revenue by Customer Type Customer 6 5% > 10 80%81%82% Customer 7 4% > 75 73% 63% Customer 8 3% > 10 Customer 9 2% > 15 Customer 10 2% > 20 Total Top 10 56% 18% 18% 13% 12% 13% 13% 10% 8% 6% 8% 1TTM June 2013 revenue of $1,237mm Major/Intermediate Junior Non-Mining -2009 ■2010 ■ 2011 ■ 2012 ■TTM 6/30/13 BOART LONGYEAR" Refinancing Presentation - October 2013 9#10Leading safety standards are a key factor in retaining and securing new contracts 3.26 Safety Performance¹ Total case incident rate Safety Core Value Barrier to entry for smaller players L 2.23 2.15 2.13 1.78 1.56 2007 2008 2009 2010 2011 2012 0.34 2007 Lost time incident rate Compliance Customer 0.14 0.12 0.13 0.10 0.08 People 2008 2009 2010 2011 2012 1Per 200,000 man hours Source: BLY Injuries & Fatalities Data BOART LONGYEAR Refinancing Presentation - October 2013 Member of World Economic Forum: Partnering Against Corruption Initiative (PACI) Resources dedicated to ensure we are doing things the right way Dedicated to our customers' success Key factor for winning and retaining contracts Value diversity Empowering the front lines and retaining our legacy of entrepreneurial spirit 10 Ⓡ#11Boart Longyear is delivering on a much lower cost basis $70 million cost reduction initiatives announced November 2012 will be fully reflected in FYE 31 December 2013 EBITDA • Reduced global overhead headcount by 20%: Over 500 heads • Relocated rig assembly operation from Perth to Poland • Consolidated Sonic Drilling Services into the rest of the Drilling Services ❖ Additional $90 million of cost reductions announced August 2013 will be implemented by FYE 31 December 2013 with roughly two-thirds realized in 2014 and the remaining one-third in 2015: Over 900 heads • Collapsed 23 operating zones for drilling services into 11 - each operating zone had its own support functions Consolidated Drilling Services and Products maintenance groups . Consolidated Drilling Services and Products supply chain functions • Further cost reduction initiatives actively under review Positioned to realise margin improvement even without an industry recovery BOART LONGYEAR Refinancing Presentation - October 2013 11 Ⓡ#12Commitment to a more financially disciplined Boart Longyear ❖ Operating margins from lagging to leading with a relentless focus. on cost reductions and operational efficiencies ❖ Reduce inventory and release working capital --- $100M to $150M reduction over the next few years. • • Consolidate supply chain. Improve inventory management Increase capital returns through more disciplined capital management ✰ Limit near-term capital expenditures by leveraging significant 2010-2012 investments Fix the balance sheet by reducing costs and increasing operational efficiencies BOART LONGYEAR" Refinancing Presentation - October 2013 12#13Pro Forma Expenditure & Headcount Profiles (US $M) Expenditure Bridge Expecting to have removed over $650mm of expenditures since LTM June 2012 $2,500 $2,109 $2,000 $1,702 $1,500 $(297) $(35) $1,452 $(75) $(35) $(90) $(125) $1,000 Actual Expenditure Reduction: $407 $500 Additional Pro forma Expenditure Reduction: $250 $- LTM June 2012 Variable Fixed Capex LTM June 2013 Full Impact of Full Impact of Full Impact of $70M Reduction $90M Reduction $50M Capex Plan Pro Forma ■ Variable ■Fixed ■Capex Headcount Bridge 12,000 ~11,400 Expecting to have reduced over 5,400 heads since June 2012 10,000 8,000 ~7,100 (3,500) N/A (800) 6,000 (> 725) < 6,000 N/A (>375) 4,000 Headcount Reduction: ~4,300 2,000 Additional Headcount Reduction: > 1,100 0 June 2012 Variable Fixed Capex June 2013 Variable Fixed Capex Pro Forma ■Variable Fixed BOART LONGYEAR 13 Refinancing Presentation - October 2013#14Pro Forma EBITDA Considerations (US $M) Full-Year Pro forma EBITDA $250 $901 $203 $? $200 $30 Break Even Cash Flow $150 $60 $113 $125 $25 Cash Tax $100 . $50 Cash Interest $50 $50 Capex 2013 Current Consensus $90M Cost Adjusted Price/ Savings Consensus Utilisation Run-Rate Fixed Charges Run-Rate EBITDA Considerations: . Potential price and utilisation declines • Cost savings impact: $70M reduction (2013) • $90M reduction (2014-2015) One-time Inventory Obsolescence: 2H13 Estimate: ~$10 to $15M • • Global Products Manufacturing: $20 to $25M of unabsorbed plant costs due to minimal mfg. levels Executed cost savings will help to mitigate the unknown potential impact of price erosion The Company estimates that roughly two-thirds of this benefit will be realized in 2014 BOART LONGYEAR Refinancing Presentation - October 2013 14#15Boart Longyear will be better positioned to take advantage of all phases of mining cycles Focus Today Margins Industry lagging Capital spending $200 million per year average for 2010 2012 Inventory $570 million at peak ($411 million at 30 June 2013) Net debt 2.9x LTM 30 June 2013 EBITDA Cash taxes Statutory rates Commitment Industry leading $50 million minimum ($75 million normalised) $300 million with increased turns Target: Achieve < 1.0x trough EBITDA over time without raising additional equity Benefit of net operating losses as the market improves BOART LONGYEAR Refinancing Presentation - October 2013 15#16BLY's value proposition to our Customers One Source • Global Distribution . Conducting Business • Properly Global Compliance Environmental • · • Broad Services Network Comprehensive Drilling Solutions Sustainability Global capabilities delivered locally Productivity Innovative Products Experienced and Well-Trained Drillers Modernised Fleet • Safety World Class Performance (TCIR & LTIR) • Global Management System TH BOART LONGYEAR Refinancing Presentation - October 2013 16