MONCTON, NB, July 21, 2014 /CNW/ – Major Drilling is pleased to announce
its entry into the underground percussive/longhole drilling sector with
its agreement to purchase the operations of Taurus Drilling Services.
This business operates in Canada, the U.S. and Mexico, providing
underground percussive/longhole drilling to mining company clients.

Through this purchase, Major Drilling will acquire 39 drill rigs,
together with related equipment, inventory and contracts. In addition
to purchasing the drilling assets, Major Drilling is retaining the
operation’s management teams, as well as the other employees, including
experienced drillers. Over the past 12 months the operations of Taurus
have produced revenue of approximately $38 million and EBITDA of
approximately $8 million. The closing of the transaction is currently
scheduled for August 1, 2014, and is subject to normal closing
conditions.

Subject to adjustment under the Agreement, Major Drilling will pay
C$27.7 million on closing (consisting of $15.9 million in cash, $7.5
million in Major Drilling shares and $4.3 million in assumption of
debt) and an additional maximum amount of C$11.5 million tied to
performance. The additional payout period extends for three years,
commencing on August 1, 2014, and payments are contingent on growing
EBITDA run rates above current levels.

“We are very pleased to welcome Taurus Drilling Services and its
employees into the Major Drilling group. The Taurus acquisition opens
the door to additional diversification in the mining industry as
percussive longhole drilling is more related to the production function
of a mine. Offering both underground production drilling and our
existing underground core drilling, we can now provide an even wider
range of complimentary services to our clients,” stated Francis
McGuire, President and CEO of Major Drilling.

Some of the statements contained in this press release may be
forward-looking statements, such as, but not limited to the closing of
the Taurus acquisition, those relating to worldwide demand for gold and
base metals and overall commodity prices, the level of activity in the
minerals and metals industry and the demand for the Company’s services,
the Canadian and international economic environments, the Company’s
ability to attract and retain customers and to manage its assets and
operating costs, sources of funding for its clients, particularly for
junior mining companies, competitive pressures, currency movements,
which can affect the Company’s revenue in Canadian dollars, the
geographic distribution of the Company’s operations, the impact of
operational changes, changes in jurisdictions in which the Company
operates (including changes in regulation), failure by counterparties
to fulfill contractual obligations, and other factors as may be set
forth, as well as objectives or goals, and including words to the
effect that the Company or management expects a stated condition to
exist or occur. Since forward-looking statements address future events
and conditions, by their very nature, they involve inherent risks and
uncertainties. Actual results in each case could differ materially from
those currently anticipated in such statements by reason of factors
such as, but not limited to, the factors set out in the discussion on
pages 15 to 18 of the 2014 Annual Report entitled “General Risks and
Uncertainties”, and such other documents as available on SEDAR at www.sedar.com. All such factors should be considered carefully when making decisions
with respect to the Company. The Company does not undertake to update
any forward-looking statements, including those statements that are
incorporated by reference herein, whether written or oral, that may be
made from time to time by or on its behalf, except in accordance with
applicable securities laws.

Based in Moncton, New Brunswick, Major Drilling Group International Inc.
is one of the world’s largest metals and minerals contract drilling
service companies. To support its customers’ varied exploration
drilling requirements, Major Drilling maintains field operations and
offices in Canada, the United States, Mexico, South America, Asia, and
Africa.

SOURCE MAJOR DRILLING GROUP INTERNATIONAL INC.