SCHEDULE A.

SCOPE OF WORKS

The scope of service has been developed by both parties and in good faith; if elements of the same need
to change during the term of the agreement, Parties shall negotiate in good faith in any change process.

1. Background

TMLSA has the need for low, medium and high-pressure hydraulic hoses at different lengths on site ready
for fitting to various items of mobile mining equipment. Contractor is responsible to manufacture hoses
according to the OEM specification on site at TMLSA. Hoses will be manufactured from components,
which are included but not limited, bulk hose and fittings. Hoses are tested and registered.

2. Fleet

The fleet of machines (Equipment) included in this scope of service at the commencement of this
agreement consists of:

 48 * 793 CAT Haul Trucks

 6 * 785-B Komatsu Haul Trucks
 3 * 785 Komatsu Water Trucks
 2 * CAT (Bucyrus) RH340 Excavators
 5 * Cat 6060 Face Shovels
 4 * Komatsu PC1250 Excavators
 8 * SKFX Blast Hole Drills
 2 * Atlas Copco Pit Viper Blast Hole Drills
 4 * Sandvik DR580 Blast Hole Drills
 3 * CAT 988H Front End Loader
 2 * CAT D9R Bulldozer
 8 * CAT D10T Bulldozer
 2 * CAT D11T Bulldozer
 3 * CAT 16M Motor Grader
 3 * CAT 24M Motor Grader
 3 * CAT 854K wheel Dozer
 2 * CAT 994H Front End Loader
 4 * CAT 773 Service Truck

In case of a significant increase of the Fleet or a significant rebuilt activity planned in the future, additional
stock will be needed and therefore a new study will be conducted. In that context, the Contractor needs to
be informed with 6 months of prior notice,

3. Hose Specification

All hoses should be build according to the OEM build specifications.

Due to the extreme conditions at Tasiast and a high load factor on the equipment, Kinross requires for the
5 x CAT 6060 Hydraulic Shovels and 2 x Terex RH340 Excavators that operate as the prime loading units
for the Tasiast operation a 32 x 6 wire hydraulic hose. This HDS branded hose is to be quoted and
supplied for the front attachments on our RH340 and 6060 shovels. More information can be found on
HDS hose at http://australia.hds-hoses.com/.
For all our hoses applies, that any technical equal or better alternative will be considered by Company,
but may be subject to testing and requires in all cases approval from our technical team.

4. Contractor Obligations

The Contractor will be in charge of all activities related to hoses supply, as listed beneath in order to
provide the Company with all hose assemblies necessary for Company’s Fleet, listed in Section 2 of this
Schedule.

The Contractor assures that:

 All hoses are built to OEM build specifications, Contractor to provide proof of access to data.
 All hoses are tagged with date of manufacture, work order number and hose part number.
 All Hydraulic Hoses must be pressure tested, and tagged for compliance

The Contractor commits to the following:

 Service Ratio: 95% over all hydraulic hose assemblies requested for the Fleet;
 All hoses assemblies to be ready within maximum 4 hours after request;
 Within 4 hours of the request Contractor supplies the completed hose including correct fittings in
a state ready to be fitted;
 Any defective hoses supplied before fitting will be redone ASAP at Contractor cost;
 Any hose that does not last 12 months must be replaced under warranty at Contractor cost. This
excludes fair wear and tear as well as any hose damaged as a result of poor maintenance.

In order to be able to fulfill its commitment, the Contractor will provide the Company with the following
services:

4.1 Hoses components supply to Site - Logistics

The entire supply chain will be managed by the Contractor, who will take care of and bear all costs
related to:

 Orders administration
 Packaging, handling
 All transport ( pre-carriage to Antwerp , main freight to Mauritania and in country transport to Site)
 All formalities related to customs clearance

The goods will be imported by the Contractor who will bear customs duties, as per Mauritanian law.

4.2 Stock Management

The Contractor will be in charge of all Stock management in order to guarantee its commitments, and will
assume all financial risk related to stock and bear all costs related to such activities:

 Initial stock investment costs (upfront)

 Stock replenishment
 On site stock keeping costs
 Stock administration costs
 Financial costs related to stock keeping

The stock will remain the Contractor’s ownership until the final product (hose assembly) is given to the
customer.
4.2.1 Initial inventory

The initial inventory will be sized by the Contractor, which will estimate the list bulk hoses and couplings
(hereinafter called hose components) necessary to build up all hose assemblies that may be required for
Company’s Fleet currently operating on Site, as listed in Section 2. This list includes low, medium and
high pressure ones.

Such initial inventory will be determined according to:

 OEM recommendations
 Companys’ purchase records over previous years
 Existing Company’s hoses components stock on Site

4.2.2 On Site Stock

Once delivered to Site, all hose components will be stocked on Site. The Contractor will provide:

 Required storage space (acquisition of existing equipment (Infrastructure) and/or renewed

equipment provide by Company) and with a fully insulated against external contamination and
fully protected storage area
 All necessary shelving required
 Stock administration

4.2.3 Stock administration and replenishment

The Contractor will be in charge of stock administration and will implement all necessary replenishment
procedures in order to guarantee the stock level required in order to keep its commitment.

In order to be able to fulfil it, the Contractor will provide:

 Technician deployed to Site, available 24/7 who will monitor the Company’s consumption, the
stock levels and who will plan replenishments as required
 A stock management software
 Remote support from the Contractor’s main office

The afore mentioned resources are necessary for the Contractor to perform its services, and have no
impact on the costs to be charged to the Company.

4.3 Hoses assemblies infrastructure

The Contractor will mobilize, at no extra charges for the Company, all necessary means in terms of
infrastructure to perform its service and produce hose assemblies on site, and such infrastructure will be
owned and used by the Contractor until the end of this agreement. At that point, TMLSA will have the right
to acquire the existing infrastructure, including hose making tooling (machines + die's), given that the
conditions are satisfactory.

The infrastructure includes a hose workshop certified by CAT with a solution based on mobile containers
fully equipped with a complete set of tools required to manufacture all kind of hose assemblies needed for
the mobile fleet, and providing maximum contamination control.

4.3.1 Non CATERPILLAR hoses

In addition to all hoses for the CAT Fleet, the Contractor will also have the capability to manufacture other
hydraulic hoses that the Company might need, specifically:
  Other OEM mining machines
 Light vehicles
 Any other specific applications

Such sales would be able upon the following conditions:

 The Company shall bring an example of such used hose to the Workshop container
 The components needed are available in stock
 No availability guarantee, as the Contractor will not manage the stock for this items, however the
latter will do his best to find the most accurate solution to satisfy the Company’s requirements

4.4 Support to continuous improvement

The Contractor is expected to develop a program to contribute to continuous improvement objectives of

the Company. The continuous improvement is supposed to contribute to improvement of service levels as
well as to reduction of costs.

4.5 Additional obligations

The Contractor meet the following obligations:

 Assure compliance to all TMSLA site standards and regulations

 Transportation for all his personnel from place of residence to site and return from site to place
of residence, upon completion of their duty
 All PPE and safety supplies including but not limited to safety glasses, work boots, gloves, hard
hats, goggles, dust masks, fire extinguishers, safety signs, eye washes and guards.
 All other items necessary but not specifically listed as being provided by the Employer to
reasonably achieve the satisfactory and timely execution of the Services.
 Maintain sufficient spare parts and equipment to repair any breakdowns. In the event of a
breakdown, no delays will be charged to the Company. MAINTENANCE of the equipment is
Contractor´s responsibility.
 Assure all employees are having required work permits and visas

5. Company’s Obligations

The Contractor will be able to provide a service level described in Section 5 providing that the Company
agrees on the following commitments:

 Issue a work order for any required hose

 To provide safe and secure lay down for Contractor container, vehicle, equipment and
consumables ( hoses workshop + [TBD] warehouse containers) to be located as close as
possible to Customer’s Maintenance Warehouse
 To provide electricity to the containers mentioned above
 To provide accommodation and catering to the Contractor’s personnel on Site
 Onsite transportation
 Adequate security at all time for Contractor's personnel and equipment at site working area and at
lay down

6. SERVICE LEVELS

The Contractor will monitor the service performance and meet the required Service Levels in the
overview below:
 Description Measure Target
% of Hoses
Number of Hoses provided outside of 4 hour time limit < 5% per quarter
Supplied Late
% of hoses
Number of hoses without testing tags and certificate supplied without < 2% per quarter
paperwork
% of Defective
Number of Defective Hoses supplied < 2% per quarter
Hoses

Number of hoses not achieving 12 month life % of Failed Hoses < 2 % per quarter

Number of hoses manufactured out of specification due % of hoses

<2% per quarter
to correct stock out of fittings or hose supplied
80% before end of 1st
year
Number of Mauritanian’s in hose shed workforce % Mauritanian
100% before end of
year 2

7. SCHEDULE

Service shall commence 19th April 2020.

Services will be available on two (2) x 11 hour shifts per day, working a 7 day week onsite.

8. CONTRACTOR’S PERSONNEL

In order to minimize the response time when hoses are required, and be able to build up hoses non –stop
24/7, the team has been sized with a duo of a technician and a logistician to be always present on Site.

The technician will focus on hoses manufacturing only, whilst the logistician will be in charge of all
administration paper work and stock management, and will also back up the technician when 2 people
are required for hoses manufacturing activities (e.g. hauling hose reels).

Working conditions:

 2x 12 h shifts for each duo, 7 days a week

 Employees must work either a 6 and 3 or 15/6 rotation schedule
 The Contractor will provide replacements during the leave in order to guarantee non-stop service
 The teams will dispose of a light vehicle to move around the Site

9. REPORTS

The Contractor shall maintain a detailed and legible activity report which shall contain information and
data, captured in full for every shift on a monthly basis. The Contractor agrees to provide monthly reports
to the Company’s Representative. Information that will be reported is:

 Completion time per work order

 Number of hoses completed outside of 4 hours
 Number of defective hoses supplied
  Hoses failed within 12 month life
 Number of hoses manufactured out of specification due to correct stock out of fittings or hose
 Monthly report of hoses by machine

Upon request Contractor will provide an overview of the produced hoses in the past in common used files
(eg XLS).
.

10. REFERENCE FOR PROVISION OF SERVICES

The following information is provided as reference to the RFP to have an estimation on the volume,
demands, inventory levels and Infrastructure:
1) Historical volumes (6 months consumption)
2) Current Stock levels
3) Infrastructure – equipment for acquisition
4) Testing equipment (separate from the infrastructure)