Boart Longyear : Announces Successful Tender for US$105 Million of its 10% Secured Notes and Funding of Term Loan Tranche B

26 Butler Boulevard, Burbridge Business Park

Adelaide Airport

South Australia 5950, Australia

Tel: +61 8 8375 8375 • Fax: +61 8 8375 8498 www.boartlongyear.com

6 November 2014

Boart Longyear Limited (ASX:BLY) - Boart Longyear announces that it has successfully tendered for US$105 million principal amount of its 10% Senior Secured Notes, which are due in October 2018 . The principal amount of the tender will be funded via proceeds from a US$105 million term loan ("Tranche B") provided by Centerbridge pursuant to the recapitalisation transactions announced by the Company on 23 October 2014. Redemption of the tendered notes and corresponding funding of the Tranche B term loan is expected to occur on 7 November 2014. As previously disclosed, the "covenant-lite" Tranche B term loan, which also matures in October 2018, will accrete interest and thereby provide incremental liquidity to the Company.
The successful tender enables the Company under the terms of the recapitalisation Implementation Agreement to pursue an asset-backed loan (ABL) to replace up to $50 million of the Company's $120 million Tranche A term loan, which was funded by Centerbridge on 23 October 2014 as part of the initial recapitalisation transactions.
Richard O'Brien, President and Chief Executive Officer of Boart Longyear, commented, "We are pleased with the success of the tender offer and the opportunity it provides us to replace a portion of the Tranche A term loan with a facility that allows for revolving borrowings at more attractive rates. Accordingly, we are actively engaged with interested parties in arranging an ABL facility and will disclose details to the market at the appropriate time. We consider this is another positive step forward in our efforts to improve our capital structure."

This announcement includes forward-looking statements within the meaning of securities laws. Forward-looking statements can generally be identified by the use of words such as 'project',
'foresee', 'plan', 'expect', 'aim', 'intend', 'anticipate', 'believe', 'estimate', 'may', 'should', 'will' or similar expressions. Any forward-looking statements involve known and unknown risks and uncertainties, many of which are outside the control of the Company and its representatives. Forward-looking
statements may also be based on estimates and assumptions with respect to future business decisions, which are subject to change. Any statements, assumptions, opinions or conclusions as to future matters may prove to be incorrect, and actual results, performance or achievement may vary
materially from any projections and forward-looking statements.

Approaching its 125th Anniversary in 2015, Boart Longyear is the world's leading provider of drilling services, drilling equipment, and performance tooling for mining and drilling companies globally. It
also has a substantial presence in aftermarket parts and service, energy, mine de-watering, oil sands exploration, and production drilling.
The Global Drilling Services division operates in over 40 countries for a diverse mining customer base spanning a wide range of commodities, including copper, gold, nickel, zinc, uranium, and other metals and minerals. The Global Products division designs, manufactures and sells drilling equipment, performance tooling, and aftermarket parts and services to customers in over 100 countries.

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26 Butler Boulevard, Burbridge Business Park

Adelaide Airport

South Australia 5950, Australia

Tel: +61 8 8375 8375 • Fax: +61 8 8375 8498 www.boartlongyear.com

Boart Longyear is headquartered in Salt Lake City, Utah, USA, and listed on the Australian Securities Exchange in Sydney, Australia. More information about Boart Longyear can be found at www.boartlongyear.com. To get Boart Longyear news direct, visit http://www.boartlongyear.com/rssfeed.

Vice President, Investor Relations/Treasury Cato Counsel
Australia: +61 (0) 8 8375 8300 Sydney: +61 (0) 2 8306 4244
USA +1 801 401 3712 Mobile: +61 (0) 410 559 184 ir@boartlongyear.commailto:david@catocounsel.com.audavid@catocounsel.com.au

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