Provide a brief description of the Solution, Service Provided, or Initiative?

Illumiti has packaged its SAP® implementation experience with several small & mid-sized mining companies into a Mining solution accelerator. Illumiti’s Mining solution accelerator includes pre-configured business processes based on industry best-practices supporting requirements in areas including Financials, Production Reporting, Procurement, Maintenance, Capital Projects, Fixed Assets and Business Intelligence. The solution enables Illumiti’s clients to: a. Leverage pre-configured processes, best practices and mining industry expertise; b. Review pertinent processes quickly, identify gaps, and implement delta requirements; c. Utilize pre-packaged business intelligence dashboards in addition to pre-packaged financial and operational reports; and d. Benefit from significantly reduced implementation costs and timelines.

Describe what makes this Solution, Service Provided, or Initiative original or innovative.How is this over and above the accepted norm?

Illumiti’s Mining solution enables our highly professional teams to complete typical projects at an exceptionally fast pace and at a relatively low cost – but with very high quality and customer satisfaction levels. This level of achievement exceeds the expected market norm so much that our clients often don’t even think it possible to implement SAP in their companies given their financial and timing constraints. Our solution is designed specifically for the needs of companies moving from the exploration stage into initial production and is based on our track record of several successful mining implementations. The solution is unique in that it focuses on the functionality and processes required to enable a speedy transition into production operations with a minimal initial budget. It also caters for international mining company structures, typically including headquarters in an established financial center and several mine sites in remote locations and multiple countries globally.

Describe the improvement this Solution, Service Provided, or Initiative made to the customer’s sales or revenues. What changed?

The targeting of our solution to mining companies moving from exploration into production dictates a strong focus on operational efficiency and cost, rather than the revenue side of the business. Nevertheless, the solution improves the Sales side of the business by putting in place a consistent enterprise management structure and set of financial management processes. This includes, for example: a. Multi-ledger reporting capabilities meeting local requirements like IFRS in multiple currencies; b. Simple budgeting / planning process and comparative reporting across departments; and c. Comprehensive audit controls meeting various compliance requirements such as SOX.

Describe the improvement this Solution, Service Provided, or Initiative made to the customer’s efficiency. What changed?

The solution has demonstrated improvements in customer efficiency through: a. A single, shared repository of company information b. A detailed understanding of costs across different mining processes c. Optimal utilization and maintenance of equipment d. Greatly improved communication between mines, HQ and other distributed units, using shared data on a timely basis The following customer quote illustrate these improvements in efficiency: e. “The SAP solution will facilitate cost controls and improve reporting as we commence operations at our new mine.” [Ray Corbeil, Director, Cost Management Administration, St.Andrew Goldfields Ltd.

How did this Solution, Service Provided, or Initiative improve the customer’s ability to serve its internal and/or external clients?

While external client service is not a focus area of the solution, internal clients – who manage various operational business processes within the company – benefit greatly from the functions that are part of the solution. The following list includes major internal clients and solution capabilities they benefit from. Most of these capabilities simply do not exist, or have no automated IT support during the exploration phase. Such automation becomes imperative to efficient company operations and regulatory compliance once mines become productive. a. CFO: i. Multi-ledger reporting capabilities meeting local requirements like IFRS in multiple currencies ii. Capital cost data for equipment and construction projects iii. Simple budgeting / planning process and comparative reporting across departments iv. Fixed Assets – multiple depreciation methods support mining-relevant schemes v. Comprehensive audit controls meeting various compliance requirements such as SOX b. Mine GM / Production Manager: i. Management of construction of mines, processing plants and smaller development efforts including contract mining scenarios ii. Operating cost data for various mining and processing streams iii. Labour costs and productivity data iv. Production data against various mining KPI’s, e.g. $/t, $/m advanced and more. c. Procurement / Supply Chain Manager: i. Streamlined management of stock and expense type procurement ii. Evaluation of vendors based on performance history iii. Effective inventory management methods leading to decreased inventory values iv. Gaining efficiencies in the management of warehoused items and associated processes d. Infrastructure / Maintenance Manager: i. Installed base management integrated with fixed assets ii. Integrated maintenance activities, including corrective, preventive, and condition-based maintenance of infrastructure, process and mobile equipment iii. Effective planning and scheduling capabilities e. COO / Safety & Security Officer: i. Hazardous substance management ii. Industrial hygiene and safety.

In what ways does this Solution, Service Provided, or Initiative go above and beyond industry norms and expectations?

The solution significantly exceeds industry norms and expectations in: a. Functional completeness and level of fit to the requirements of SME mining companies moving from exploration into full-fledged production in one or more mines. b. Implementation speed. c. Total cost of software, implementation and support. The following customer quotes illustrate the above: “Illumiti exceeded our expectations by completing a sophisticated implementation of SAP in 12 weeks for less than $300,000.” [Ray Corbeil, Director, Cost Management Administration, St.Andrew Goldfields Ltd. (TSC:SAS)] “We needed an ERP system with mining specific functionality that had already been tried and tested in the countries where we do business. I knew SAP was strong in terms of mining market share but was surprised by SAP’s competitive price point. Ultimately, Illumiti was able to deliver this global solution in a highly professional manner, completing it on time and within budget.” [Charlie Parker, Corporate Controller, Eldorado Gold Corporation. “As a small non-producing mining company we were initially concerned about the cost of an ERP solution needed for our multi-national operations in Brazil, Romania and our HQ in Canada. Illumiti successfully implemented SAP throughout our organization at an affordable price. Moreover they were able to effectively leverage local resources in Brazil while maintaining strong supervisory control from Canada and excellent communication with management at HQ.” [Linda Prager, CFO and Secretary, Carpathian Gold Inc.

How does this solution further your customer’s green or environmentally friendly plans?

As mentioned above, Illumiti’s Mining solution provides automated support for our clients’ operations in the areas of Hazardous Substance Management and Industrial Hygiene & Safety. Proper management processes in these areas also helps minimize the potential negative environmental impact of mining operations.

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