Investor Presentaiton
Key risks
Competition
The industry in which the Company is involved, though at an early stage, is subject to domestic and
global competition which is rapidly evolving. Potential competitors include companies such as TruScan
(Boart Longyear), GeoTek, Epiroc (Corescan), Geological, Minalyze and others.
The ability of the Company to respond and adjust to changes in the industry will affect its success and
ability to remain competitive in the market. The Company's performance could be adversely affected if
existing or new competitors reduce Orexplore's market share, or its ability to expand into new segments.
While the Company will undertake all reasonable due diligence in its business decisions and operations,
the Company will have no influence or control over the activities or actions of its competitors, whose
activities or actions may positively or negatively affect the operating and financial performance of the
Company's projects and business. For instance, new technologies could result in the Company not being
sufficiently differentiated within the markets it operates in.
The Company's existing or new competitors may have substantially greater resources and access to
larger markets than the Company. The Company may also become subject to channel partners and other
close entities who have had relationships with the Company becoming competitors of the Company.
These partners have limited access to the Company's intellectual property but may gain access to its
trade secrets and other key information.
Competitors may succeed in developing alternative products which are more innovative, easier to use or
more cost effective than those that have been or may be developed by the Company. This may cause
pricing pressure on the Company's product offering and may impact on the ability to retain
customers/partners as well as attract new customers or partners.
Reliance on key personnel
The Company's operational success will depend substantially on the continuing efforts of
its senior executives and highly qualified employees, including, engineers, research and
development personnel, sales personnel and the Company's continuing ability to attract,
recruit and retain such employees. Qualified individuals are currently in high demand,
and the Company may incur significant costs to attract and retain them. The loss of the
services of any such personnel, or an inability to attract other suitably qualified persons
when needed, could prevent or delay the Company from executing on the business plan
and strategy, and the Company may be unable to find adequate replacements on a
timely basis, or at all.
The unplanned loss of the services of any of the Company's Directors or members of
senior management could materially adversely affect the business until a suitable
successor is recruited. In addition, a number of the Company's highly qualified personnel
may not be readily substituted, if at all, through the hiring of external personnel, and the
loss of any key researchers, developers or other personnel could also have a material
adverse effect on the business unless and until the Company recruits a qualified
successor. There are also a limited number of persons with the requisite competencies to
serve in these positions, and the Company cannot provide any assurance that the
Company would be able to employ such highly qualified personnel in a timely manner,
on terms acceptable to the Company or at all. The inability to attract and retain key and
other highly qualified personnel could have a material adverse effect on the business,
financial condition, results of operations and prospects.
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