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Boart Longyear Confirms 2011 Guidance and Introduces New Growth Initiatives

Boart Longyear Limited (ASX:BLY) – Boart Longyear confirms its current full-year 2011 guidance of US$1.9 billion revenue and US$330 million EBITDA.  Depending on the start date of various holiday shutdowns, 2011 performance may exceed both figures, given the current strength of market demand.

The Company also expects three recent initiatives to significantly contribute to its growth in 2012 and beyond: 

1) The creation of Boart Longyear Financial Services (BLFS);
2) Global expansion of mine water drilling services; and
3) Sonic equipment sales to the drilling industry worldwide.

Boart Longyear Financial Services:  BLFS offers customers competitive financing solutions for leasing or purchasing Boart Longyear drilling equipment. All of the Company’s manufactured drilling capital equipment can be financed through BLFS, including multi-purpose, production, reverse circulation, rotary, sonic, and surface and underground coring rigs. The new service will enable Boart Longyear to enhance customer service while expanding drilling capital equipment sales. Currently, all BLFS transactions are financed on a non-recourse basis through third party providers, minimizing the impact on the Company’s balance sheet.

Mine Water Services:  The Company has recently allocated a significant amount of capital expenditure to expand its rig fleet for mine water supply and dewatering services. This investment supports both the contracted and rapidly increasing global demand for this unique and technical drilling. Boart Longyear will leverage itsNorth American expertise to provide these services to mines in Latin America, Africa, and Asia Pacific by utilising in-house drilling processes developed over 30 years in the broken and unconsolidated United States’ Rocky Mountain geology.

Sonic Equipment Sales:  Boart Longyear has begun sellingits sonic drilling technology, including drill rigs and other equipment, to third parties. Sonic technology produces high-quality, undisturbed core samples more quickly and with less waste than conventional methods by utilising high frequency vibratory “dry” drilling techniques. The Company’s proprietary sonic drilling technology has been regarded as the best in the industry for many years. Boart Longyear soon will complement its sonic product offerings with operator training services and aftermarket support, providing sonic drilling solutions for its drilling customers around the world.

Craig Kipp, CEO of Boart Longyear, states, “The mineral exploration market continues to perform extremely well despite current macroeconomic headwinds. Rig demand, product backlog and pricing in both the Drilling Services and Products businesses continue to indicate a positive outlook.

“Driven by the second year of significant organic reinvestment in the business, Boart Longyear’s revenue per rig, metres per employee and global footprint continue to expand. Rig utilisation for Drilling Services continues at approximately 75 percent, consistent with our strategy of driving performance, not utilisation. Finally, our eight primary new drilling products launched during this year are seeing strong demand”.

Boart Longyear will host a Question and Answer session on 30 November, at 5:00 p.m. MST or 1 December, at 11:00 a.m. Sydney time. This will be conducted via conference call:

U.S.A/Canada Toll Free Dial In:  800 901 5231
International Caller Paid Dial In:  +617 786 2961
Australia Toll Free Dial In:  1800 002 971
Participant Passcode:  78018677

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