Mr. Ryan Hanley reports

MAJOR DRILLING ACQUIRES BUNBURY DRILLING COMPANY, EXPANDING INTO SPECIALIZED MINE DEWATERING IN AUSTRALIA

Major Drilling Group International Inc., through its Australian subsidiary, Major Drilling Pty. Ltd., has acquired all of the issued and outstanding shares of Bunbury Drilling Company (BDC), a leading specialized mine dewatering drilling contractor based in Bunbury, Western Australia, for an upfront cash payment of $50-million (Australian), with an additional $20-million (Australian) available through an earnout, for total consideration of up to $70-million (Australian), or approximately $69-million (Canadian).

Transaction highlights:

• Expansion of the company's service offering as BDC brings over 70 years of operational expertise with a focus on mine site services, including dewatering drilling, supplementing the company's existing operations in Australia while also creating a potential platform for future growth in other markets where these services are in demand;
• Deepens relationships with senior mining companies as BDC currently drills exclusively for senior producers in Western Australia, holding similarly high standards for safety, equipment maintenance and operational performance;
• Strongly aligns with the company's focus on specialized drilling while adding a new service offering as mine dewatering represents a unique market segment given its technical complexity, equipment requirements and need for highly skilled crews. BDC's eight high-end, well-maintained specialized drills are purpose built for this work;
• For the 12-month period ending June 30, 2026, BDC generated revenue of approximately $43-million (Australian) (1) and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of approximately $15-million (Australian) (2). Given the highly specialized nature of this type of drilling, this segment is expected to offer stronger gross and EBITDA margins relative to conventional or underground drilling;
• The acquisition is expected to be immediately accretive on an earnings per share basis and is well supported by Major Drilling's strong balance sheet, with the upfront purchase price of $50-million (Australian) financed by existing cash on hand and debt facilities, while the additional earnout of up to $20-million (Australian) is subject to the achievement of certain EBITDA milestones over a three-year period, for total consideration of up to $70-million (Australian) (approximately $69-million (Canadian)).

"We are very excited to welcome BDC and its employees into the Major Drilling group," said Denis Larocque, president and chief executive officer of Major Drilling. "This acquisition is directly aligned with our strategic plan, allowing us to offer a new line of highly specialized drilling services to senior companies in an established market, diversifying our revenue streams and expanding on existing relationships. BDC has a strong reputation in Australia, particularly among major mining companies, which has been built on decades of delivering innovation and high-quality services to its clients. BDC's management team will remain in place to continue building on these strong relationships, while our existing local team is well positioned to support a smooth integration. BDC and Major Drilling share similar cultural and operational values, with a commitment to safety, strong maintenance practices and high operational standards."

"After more than 70 years and three generations as a family business, we are proud to see BDC become part of Major Drilling," said Jason Linaker, principal of BDC. "For seven decades, we have built our reputation on trusted relationships, technical expertise and a work force who take genuine pride in their work. We are immensely proud of our team as their achievements are what attracted the attention of a global industry leader like Major Drilling, a company that shares our values and commitment to safety, quality and people. This transaction honours our family legacy while opening an exciting new chapter for BDC as we are confident it will enable future generations of our team to make the company proud for another 70 years. By combining Major Drilling's resources and global reach with BDC's hydrogeological expertise and experienced crews, we are well positioned to pursue growth in Australia and around the world."

As per the terms of the agreement, Major Drilling will pay up to a maximum of $70-million (Australian) for BDC, comprising: (i) a cash payment of $50-million (Australian) paid on closing of the acquisition, subject to working capital adjustments; and (ii) an earnout of up to $20-million (Australian) payable in cash over the next three years, based on the achievement of certain EBITDA milestones. In order to achieve the full earnout amount, BDC is required to reach average annual EBITDA of approximately $18-million (Australian) over the three-year earnout period. As previously discussed, the purchase price will be financed by Major Drilling's existing cash position and debt facilities. The acquisition does not require regulatory approvals.

About Major Drilling Group International Inc.

Major Drilling is the world's largest provider of drilling services in the metals and mining industry. The diverse needs of the company's global clientele are met through field operations and registered offices that span across North America, South America, Australia, Asia, Africa and Europe. Established in 1980, the company has grown to become a global brand in the mining space, known for tackling many of the world's most challenging drilling projects. Supported by a highly skilled work force, Major Drilling is led by an experienced senior management team that has steered it through various economic and mining cycles, supported by regional managers known for delivering decades of superior project management.

Major Drilling is regarded as an industry expert at delivering a wide range of drilling services, including reverse circulation, surface and underground coring, directional, sonic, geotechnical, environmental, water-well, coal-bed methane, shallow gas, underground percussive/longhole, and surface drill and blast, along with the continuing development and evolution of its suite of data and technology-driven innovation services.

(1) Revenue is derived from BDC's unaudited financial statements for the fiscal year ended June 30, 2026, which were not prepared in accordance with IFRS (international financial reporting standards); revenue under IFRS would not change materially.

(2) EBITDA and adjusted EBITDA are non-IFRS financial measures without standardized meanings under IFRS and may not be comparable with similar measures presented by other issuers. The information is derived from BDC's unaudited financial information, which was not prepared in accordance with IFRS and would not change materially under IFRS.

We seek Safe Harbor.