DDH1 and Swick to create world- leading mineral driller.

This merger follows an announcement about further investment in new rigs recently. Seems to be positive for both companies.

 Under the terms of the Proposed Transaction, Swick shareholders will receive shares in DDH1 and become part of a world-leading mineral driller with a strong balance of surface and underground drilling exposures, a combined fleet of more than 170 high-quality rigs, pro-forma annual revenues of approximately $445 million and a combined pro-forma FY21 EBITDA of $103 million1.

Swick’s drilling business is valued at 35 cents per Swick share, reflects an enterprise value of $115 million2 (3.9x pro forma EBITDA1)

• Upon completion of the Proposed Transaction, Swick shareholders will own approximately 19.7% of the combined business

To illustrate the earnings impact given DDH1 does not provide forecasts, the Proposed Transaction is expected to be approximately 10% - 15% earnings accretive3 based on DDH1 and Swick’s FY21 performance and conservative synergies being achieved

The combination of the two WA-based businesses will create a global scale mineral drilling company with a balance of surface (~60%) and underground (~40%) drilling from a combined fleet of more than 170 rigs generating approximately $445 million per annum in revenues.