FORACO INTERNATIONAL REPORTS Q1 2015 Slow start.Tight control of our operations. N E WS R E L E A S E Toronto, Ontario / Marseille, France - Tuesday, May 5, 2015 Foraco International SA (TSX: FAR) (the "Company" or "Foraco"), a leading global provider of mineral drilling services, today reported unaudited financial results for its first quarter 2015. All figures are reported in US Dollars (US$), unless otherwise indicated. Three months Q1 2015 Highlights

Revenue

Q1 2015 revenue amounted to US$ 33.3 million compared to US$ 45.4 million in Q1 2014, a decrease of 27%, or 10% excluding the impact of exchange rates.

The utilization rate was 28% in Q1 2015 compared to 30% in Q1 2014.

Profitability

Q1 2015 gross margin including depreciation within cost of sales was a loss of US$ (3.2) million compared to US$ 2.6 million in Q1 2014. During the quarter, the Company encountered a certain number of operational difficulties and the cancellation and postponement of certain contracts, partially offset by the satisfactory performance on other existing contracts, the award or renewal of contracts and fixed operational cost savings.

SG&A costs reduced by US$ 2.0 million between Q1 2014 and Q1 2015 or US$ 1.0 million excluding the impact of exchange rates. SG&A reduced by US$ 0.5 million as a result of the continued cost cutting action plans and US$ 0.5 million linked to the payment of a receivable provided for in Q4 2014.

EBIT was US$ (8.1) million in Q1 2015 compared to US$ (3.9) million in Q1 2014.

Capital expenditure was US$ 2.7 million in Q1 2015 compared to US$ 1.5 million in Q1 2014.

These Capex are primarily related to new contracts started in Q1 2015.

Finance Costs

Net financial expenses amounted to US$ 1.0 million in Q1 2015, compared to US$ 1.2 million for the corresponding 2014 period.

"Due to the further decline of metal prices late 2014, producing mining companies further reduced exploration spending during Q1 2015 with a direct impact on the demand for mineral drilling. In this challenging market, our revenue decreased 27% Year on Year, out of which 17% is attributable to foreign exchange impact, 7% to a lower fleet utilization, and 3% on pricing pressure" said Daniel Simoncini, Chairman and co-CEO of Foraco. "The bidding season was again weak due to the ongoing uncertainty. Regarding the Company's performance, we faced some operational difficulties mostly linked to exceptional climate conditions and a highly technically challenging project, but also reported generally satisfactory performance and the award and renewal of contracts."
"We remain attentive to each and every market development across our regions. We aim to continue to be flexible, making the most of opportunities such as the redeployment in the water segment or drilling under conditions that few other companies have the technical knowledge to take on, and which also provide us with transferrable skills and expertise for the future" commented Jean-Pierre Charmensat, co-CEO and Chief Financial Officer. "We have gone through a significant restructuring process in the past quarters which continues to have a positive impact on our operational costs, SG&A and cash. During the quarter we successfully finalized our negotiations with lenders. Our net debt was again reduced in the quarter to US$ 93.4 million as we continue to closely monitor our cash position with capex and working capital being strictly controlled."

Selected financial data Financial results

(In thousands of US$)

(unaudited)

Three-month period ended March 31,



2015 2014 Revenue 33,280 45,445 Gross profit (1) (3,200) 2,630

As a percentage of sales -9.6% 5.8%

EBITDA (1,252) 4,434

As a percentage of sales -3.8% 9.8%

Operating profit / (loss) (8,122) (3,888)

As a percentage of sales -24.4% -8.6%

Profit / (loss) for the period (7,891) (3,998)

Attributable to:

Equity holders of the Company (7,023) (3,802)

Non-controlling interests (869) (196)

EPS (in US cents)

Basic (7.95) (4.30) Diluted (7.95) (4.30)

(1) includes amortization and depreciation expenses related to operations

Revenue

(In thousands of US$) - (unaudited)

Q1 2015

% change

Q1 2014

Reporting segment

Mining .........................................................................

28,747

-28%

39,857

Water...........................................................................

4,533

-19%

5,588

Total revenue..............................................................

33,280

-27%

45,445

Geographic region

Europe, Middle East and Africa ...................................

10,439

-7%

11,270

South America .............................................................

8,927

-41%

14,997

North America ..............................................................

7,629

-21%

9,617

Asia Pacific ....................................................................

6,285

-34%

9,561

Total revenue..............................................................

33,280

-27%

45,445

Q1 2015 revenue amounted to US$ 33.3 million compared to US$ 45.4 million in Q1 2014, a decrease of 27% or 10% excluding the impact of exchange rates.
In EMEA, revenue decreased by 7%, from US$ 11.3 million in Q1 2014 to US$ 10.4 million in Q1 2015. Excluding the foreign exchange impact mainly linked to the Russian ruble variance, revenue increased by 30% compared to the same quarter last year.
Revenue in South America amounted to US$ 8.9 million in Q1 2015 (US$ 15.0 million in Q4 2013), a decrease of 41%. In Brazil, the decrease was 31% or 15% excluding the impact of exchange rates. Activity in Chile and Argentina reduced by 51%.
Revenue in North America decreased by 21% or 11% excluding the impact of exchange rates. In
Canada, the Junior market remains depressed.
In Asia Pacific, Q1 2015 revenue amounted to US$ 6.3 million, a decrease of 34% or 24% excluding the impact of exchange rates, mainly due to pressure on selling prices and a lower utilization rate.

Gross profit

(In thousands of US$) - (unaudited)

Q1 2015

% change

Q1 2014

Reporting segment

Mining ..........................................................................

(3,080)

n/a

2,633

Water ...........................................................................

(120)

n/a

(3)

Total gross profit / (loss) ...........................................

(3,200)

n/a

2,630

Q1 2015 gross margin including depreciation within cost of sales was a loss of US$ (3.2) million compared to US$ 2.6 million in Q1 2014. During the quarter, the Company encountered a certain number of operational difficulties and the cancellation and postponement of certain contracts, partially offset by the satisfactory performance on other existing contracts, the award or renewal of contracts and fixed operational cost savings.

Selling, General and Administrative Expenses

(In thousands of US$) - (unaudited) Q1 2015 % change Q1 2014

Selling, general and administrative expenses 4,505 -31% 6,518

SG&A costs reduced by US$ 2.0 million between Q1 2014 and Q1 2015 or US$ 1.0 million excluding the impact of exchange rates. SG&A reduced by US$ 0.5 million as a result of the continued cost cutting action plans and US$ 0.5 million related to the payment of a receivable provided for in Q4
2014.

Operating result

(In thousands of US$) - (unaudited)

Q1 2015

% change

Q1 2014

Reporting segment

Mining ..........................................................................

(7,321)

n/a

(3,084)

Water ............................................................................

(801)

n/a

(804)

Total operating profit / (loss) ...................................

(8,122)

n/a

(3,888)

Operating profit / (loss) decreased by US$ (4.2) million as a result of the above mentioned developments.

Financial position

The following table provides a summary of the Company's cash flows for Q1 2015 and Q1 2014:

(In thousands of US$)

Cash generated by/(used in) operations before working capital requirements ........................

Q1 2015

(1,754)

Q1 2014

4,459

Working capital requirements, interest and tax .........................................................................

(1,249)

(12,776)

Net cash flow used in operating activities .............................................................................

(3,003)

(8,317)

Purchase of equipment in cash ....................................................................................................

(2,344)

(1,206)

Consideration payable related to acquisitions ............................................................................

-

(500)

Net cash used in investing activities......................................................................................

(2,344)

(1,706)

Free cash flow .......................................................................................................................

(5,347)

(10,023)

Debt variance................................................................................................................................

(2,245)

2,274

Dividends paid ..............................................................................................................................

-

(809)

Net cash generated by / (used in) financing activities...........................................................

(2,245)

1,465

Net cash variation ................................................................................................................

(7,592)

(8,558)

Foreign exchange differences .....................................................................................................

(1,064)

(115)

Variation in cash and cash equivalents .................................................................................

(8,656)

(8,673)

In Q1 2015, the net cash flow used in operating activities amounted to US$ 3.0 million compared to
US$ 8.3 million for Q1 2014.
During the quarter, Capex amounted to US$ 2.3 million in cash and US$ 0.4 million through capital leases compared to US$ 1.1 million in cash and US$ 0.3 million through capital leases during Q1
2014. One rig was acquired in Russia and one was taken out of service in Africa.
As at March 31, 2014, cash and cash equivalents totaled US$ 14.6 million compared to US$ 23.2 million as at December 31, 2014. Cash and cash equivalents are held at or invested within top tier financial institutions.
As at March 31, 2015, net debt amounted to US$ 93.4 million (US$ 96.7 million as at December 31,
2014). The ratio of debt (net of cash) to shareholders' equity increased from 0.67 as at December
31, 2014 to 0.76 as at March 31, 2015.
On March 31, 2015, financial debts and equivalents amounted to US$ 107.5 million (US$ 119.9 million as at December 31, 2014):

Maturity Total

Drawn credit lines rolled over on a

yearly basis 3,621 - - - - - 3,621

Long term financing related to:

- Drawn credit lines rolled over

confirmed for at least 12 months

- Brazil acquisition

- Australia acquisition

- Acquisition of fixed assets

- Acquisition of fixed assets through

capital leases - 1,013 298 264 46 10 1,631

Total

(*) The non-current portion of long term debt, i.e. from April 1, 2016 onwards, is US$54,303 thousand

The Company now has used and unused short-term credit facilities amounting to US$ 61.3 million, of which US$ 49.1 million was drawn down as of March 31, 2015. Other facilities are granted individually by various banks, mainly in Chile, Brazil, Australia and Canada. They are generally granted on a yearly basis and are subject to review at certain dates.

Going concern and impairment testing

Current economic conditions make forecasting difficult, and there is the possibility that the Company's actual operating performance during the coming year may be different from expectations. Based on internal forecasts and projections that take into account reasonably possible changes in the Company's operating performance, the Company believes that it has adequate financial resources to continue in operation and meet its financial commitments for a period of at least twelve months provided it continues to benefit from the support of its lenders. The next testing date for the bank covenants is December 31, 2015. At this stage, the Company does not anticipate any breach of covenants.
As described above, the Company encountered a certain number of difficulties during the quarter but considers that these developments do not reflect the long term trend and do not require a revision of the long term forecasted cash flows used for impairment testing as at December 31,
2014. Therefore, no impairment testing has been deemed necessary as at March 31, 2015.

Currency exchange rates

The exchange rates for the periods under review are provided in the Management's Discussion and
Analysis of Q1 2015.

Non-IFRS measures

EBITDA represents Net income before interest expense, income taxes, depreciation, amortization and non-cash share based compensation expenses. EBITDA is a non-IFRS quantitative measure used to assist in the assessment of the Company's ability to generate cash from its operations. The Company believes that the presentation of EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the drilling industry. EBITDA is not defined in IFRS and should not be considered to be an alternative to Profit for the period or Operating profit or any other financial metric required by such accounting principles.
Net debt corresponds to the current and non-current portions of borrowings and the consideration payable related to acquisitions, net of cash and cash equivalents.
Reconciliations of the various non IFRS measures are as follows:

EBITDA

(In thousands of US$)

(unaudited)

Q1 2015

Q1 2014

Operating profit / (loss).........................................................................................

(8,122)

(3,888)

Depreciation expense ...........................................................................................

6,705

8,006

Non-cash employee share-based compensation .................................................

165

316

EBITDA ..................................................................................................................

(1,252)

4,434

Net debt

Q1 2015

Q4 2014

Q1 2014

Cash and cash equivalents..............................................................

14,569

23,225

28,853

Borrowings - Non-current portion .................................................

(99,799)

(109,312)

(65,761)

Borrowings - Current portion .........................................................

(7,688)

(10,053)

(79,278)

Consideration payable related to acquisitions ..............................

(528)

(528)

(3,430)

Total Net Debt ................................................................................

(93,446)

(96,667)

(119,616)

Outlook

The Company's business strategy is to wait for the next growth phase of the metallic commodities cycle in the best possible conditions through the development and optimization of its services offered across its range of geographical regions, industry sectors, commodities and customers. The Company expects it will execute on its strategy primarily through organic growth in the near future.

Conference call and webcast

On May 5, 2015, Company Management will conduct a conference call at 10:00 am ET to review the financial results. The call will be hosted by Daniel Simoncini, Chairman and CEO, and Jean-Pierre Charmensat, Vice-CEO and CFO.
You can join the call by dialing 1-888-231-8191 or 1-647-427-7450. You will be put on hold until the conference call begins. A live audio webcast of the Conference Call will also be available through http://event.on24.com/r.htm?e=990163&s=1&k=C64020B58F4FB444630F74E4720101B5
An archived replay of the webcast will be available for 90 days.

About Foraco International SA

Foraco International SA (TSX: FAR) is a leading global mineral drilling services company that provides a comprehensive and reliable service offering in mining and water projects. Supported by its founding values of integrity, innovation and involvement, Foraco has grown into the third largest global drilling enterprise with a presence in 23 countries across five continents. For more information about Foraco, visit www.foraco.com.

For further information, please contact: Brenda Patterson-Mack (patterson@foraco.com) Tel: (647) 351-5483

"Neither TSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release."

Caution concerning forward-looking statements

This document may contain "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws. These statements and information include estimates, forecasts, information and statements as to Management's expectations with respect to, among other things, the future financial or operating performance of the Company and capital and operating expenditures. Often, but not always, forward-looking statements and information can be identified by the use of words such as "may", "will", "should", "plans", "expects", "intends", "anticipates", "believes", "budget", and "scheduled" or the negative thereof or variations thereon or similar terminology. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Readers are cautioned that any such forward-looking statements and information are not guarantees and there can be no assurance that such statements and information will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risk Factors" in the Company's Annual Information Form dated March 31, 2015, which is filed with Canadian regulators on SEDAR (www.sedar.com). The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements and information whether as a result of new information, future events or otherwise. All written and oral forward-looking statements and information attributable to Foraco or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.

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