DESCRIPTION

DMC Mining Services was started in 1980 as a mining contractor. In 1987 they purchased the Tonto Group of companies to strengthen their presence in western Canada and added a Drilling division based in Salt Lake City, Utah. In 1997 we merged with Sherritt International Corporation's (TSX:S) Metallurgical Technologies business to create a new publicly traded company, Dynatec Corporation (TSX:DY). Dynatec Corporation operated three divisions, Mining Services, Drilling Services and Metallurgical Technologies. In 2001 Dynatec Corporation sold the Drilling Services division to Major Drilling Group International Inc. (TSX:MDI).

In June of 2007 Sherritt International Corporation (TSX:S) acquired Dynatec Corporation. In October of that same year Sherritt sold Dynatec Mining Services (Canada) and Dynatec Mining Services Corporation (USA) to FNX Mining Company Inc. (TSX:FNX). The purchase did not include the name "Dynatec" so we now conduct our business under the name DMC Mining Services (Canada) and DMC Mining Services Corporation (USA).

In 2010 FNX Mining Company Inc. and Quadra Mining Ltd. merged to create Quadra FNX Mining Ltd. (TSX:QUX). In 2012 KGHM Polska Miedz S.A. (WSE:KGH) purchased all of the outstanding shares of Quadra FNX Mining Ltd.

DMC Mining Services is a division of FNX Mining Company Inc. which is a wholly owned subsidiary of KGHM International.

DMC Mining Services:

Mine Shaft Sinking:

Mine shaft sinking is one of the most critical and technically difficult aspects of underground mine development and construction. A mine shaft must be completed and commissioned for a deep mine before any other underground mine development can commence. Accordingly, mine owners place a premium on rapid sinking schedules. DMC possesses the highly-skilled shaft sinking crews and the specialized techniques and equipment necessary to meet the requirements and schedules of technically difficult projects such as those involving poor ground conditions or extreme depth. DMC' expertise in mine shaft sinking is based on more than 100 years of combined manpower experience. During this time DMC has continuously worked to develop technical improvements, the most significant of which is the patented Long Round Jumbo technology which involves a process for blasting 5 meter long shaft rounds and which has materially increased the speed at which shafts can be completed.

Mine Development:

Lateral mine development involves the excavation of access ramps and declines and the excavation of drifts and crosscuts leading to the ore body. Management believes the expertise in mineshaft sinking has allowed it to capture lateral development work through a bundling of services.

Mine Construction:

DMC' s mine construction services involve numerous specialized activities related to both surface and underground mine construction. The mine construction work has also included:

the construction of refuge stations

underground explosives magazines

underground shops

crushing and conveying systems

sumps and dams for mine dewatering systems

mine stabilization through the installation of rock bolts and application of shotcrete

Injection of grout and grout backfill

Contract Mining Services:

Contract mining is a form of outsourcing whereby a project owner retains an outside contractor to conduct all or a portion of mine development and operations. In providing contract mining services, DMC draws upon its broad range of disciplines:

Engineering and estimating staff assesses mineable reserves based on geological reserve estimates provided by the owner

Assesses mine feasibility and designs underground operations, including mine shafts, ore and waste handling systems, mine dewatering systems, backfill systems and ventilation systems

Selecting and procuring equipment.

Determining manpower requirements. Once the feasibility and design of an underground mine has been established, DMC is able to develop and operate the mine with its equipment, trained personnel and management systems.

Where it assumes responsibility for mine operation, DMC hires staff, develops production budgets and schedules, produces reports, maintains regulatory permits and filings, manages operating staff and assumes overall responsibility for safety and loss control.

Civil Construction:

DMC also provides services to customers in the civil underground construction industry. DMC has completed an underground powerhouse excavation, penstock excavation and tailrace tunnel excavation for a mini-hydro project and ground stabilization and construction work for The Sudbury Neutrino Observatory. DMC completed work on a hydroelectric tunnel rehabilitation project, as well as establishing a freshwater reservoir and collection system for a resort by the installation of a concrete bulkhead and piping system in an adjacent abandoned mine. DMC also constructed a pedestrian walkway and utility tunnel under a main street in downtown Salt Lake City.

Raise Boring and Raise Excavation :

Raise boring is a continuous, mechanical method of boring vertical, or near vertical openings used for ventilation, manways, and ore and waste transportation for operating mines. Raise boring techniques are also used to excavate various raises and shafts for civil construction projects. Raise boring is a substitute for traditional raise excavation methods and has a number of advantages that make it preferable in certain applications. In particular, raise boring leaves smooth walls allowing for more efficient ventilation. Raise bored holes can also be used for hoisting or egress shafts. Raise boring is generally considered a safer, faster and more cost effective means of excavating raises than more traditional drilling and blasting methods. DMC has a fleet of 10 raise boring machines, over 7,500 feet of drill pipe and 16 reamers with capabilities from 28 inch to 20 feet in diameter. The smallest drills operate in only 12 feet of headroom. Our raise drills have also been used to install an 8 inch paste fill line and a 7 foot by 1,100 foot steel liner with a combined hanging weight of 1,000,000 lbs. Since 1982 DMC has reamed over 250,000 feet domestically and internationally. DMC owns and operates a fleet of mechanized raise climbers which provide our customers with options for those applications where it is preferable.

Engineering Services:

DMC's evaluation and design services include concept, pre-feasibility and technical engineering. Our technical engineering capabilities cover all the major disciplines (mining, civil, electrical, structural and mechanical).

Concept & Pre-feasibility Studies

Our studies include elements such as:

Assessment of the regional and local geology

Ore reserve estimate

Shafts and Ore handling systems

Selection of mining method and mine plan

Production schedule Capital and operating cost estimates

Technical Engineering:

DMC provides technical engineering services to assess and optimize mining projects.

As operators and engineers, our services are founded on practical operating procedures and sound engineering standards. Our expertise includes:

Mine planning (conceptual/feasibility/detail)

Equipment evaluation

Mine and facility design

Flow sheet layouts

Material handling

Ancillaries/utilities design

Design of transportation systems

Cost estimating

CONTACT DETAILS

DMC Mining Services

488 East, 6400 South Suite 250 Salt Lake City, UT 84107

Ph: 800-748-2375

Email: info@dmcmining.com

Web: http://www.dmcmining.com/docs/