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    Tesla Exploration Ltd. 2010 HSE Manual

    JUNE 2010

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    Tesla Exploration Ltd. 2010 HSE Manual

    BOARD OF DIRECTORS DIRECTIVE

    HEALTH, SAFETY AND ENVIRONMENT

    STATEMENT

    Revision No.

    Document Owner:

    Chairman of the BoardApproved by:

    Board of DirectorsPrevious Rev. Date:

    N.A.Current Revision Date:

    1.0 PURPOSE AND SCOPETesla Exploration Ltd. has implemented a comprehensive HSE Manual, which is intended for the use of the

    Corporations employees, visitors and contractors, and it includes considerations for legislation, industryrecognized best practices, and how the Corporation controls hazards associated with performing everyday

    activities. All employees receive an orientation to review the Manual; and all Contractor Supervisors also

    receive an orientation to review the Manual, or their area specific portions of the Manual.

    Safety is an integral part of the Corporations work; it is part of all operations and is there to protect

    employees, clients, property, the environment and the public.

    The HSE Manual is posted on the Corporations website, and has been reviewed by the Board of Directors

    and Senior Management.

    2.0 POLICYEveryone employed by the Corporation is responsible for maintaining the safety management program.

    Managers and supervisors are responsible for identifying safety needs, communicating safety hazards,investigating hazardous conditions and accidents, providing training, supplying or wearing appropriate

    safety and personal protective equipment, and ensuring all equipment is properly maintained and meets

    legislated safety standards.

    All employees and others on the Corporations worksites are responsible for obeying all safety rules,

    following recommended safe work procedures, wearing and using personal protective equipment when

    required, participating in safety training programs and informing supervisors of any unsafe working

    conditions. Everyone has the right and responsibility to refuse to do work, when unsafe conditions exist.By fulfilling the Corporations safety responsibilities, everyone who works for Tesla Exploration Ltd. will

    share in the benefits of a safe and healthy workplace.

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    3.0 PROCEDURESArticle I. It is extremely important that the distribution, revision and updating of the HSE Manual is

    controlled. Procedures are in place for the distribution, review and updating of

    documentation, which is detailed in the HSE Manual.

    Article II.

    The HSE Manual does not take precedence over the Occupational Health and Safety Acts orother relevant laws governing each country, state, province, or community area that may

    contravene them. All Management shall be familiar with the Occupational Health and Safety

    Acts or other relevant legislation for the area in which they are working.

    Article III. The HSE Manual includes details with respect to the following: Leadership and Commitment Policies and Goals Organization and Responsibilities, including Competencies, Training, and

    Documentation Hazard Management Systems, including Communication and Emergency Response Planning and Procedures Project Specific HSE Plan

    Auditing Definitions, Procedures, and Investigations

    4.0 COMMITMENT AND ACCOUNTABILITYThe Corporation and its subsidiaries are committed to maintaining safe work practices and solid

    environmental practices within the organization. These practices allow for: achievement of the quality of

    products and services that clients expect; achievement of good business practices; and provision of a safe

    and responsible work environment to allow for growth.

    The Board of Directors, President & CEO, and Senior Management, expect total commitment, individual

    responsibility and accountability from each employee and contractor to comply with the HSE policies,procedures, standards and guidelines as a condition of employment. The Corporation must create a safety

    conscious culture from the top down to front line workers. It is the responsibility of each employee to

    motivate, lead by example, and monitor the performance of work. The HSE Manual outlines the safe work

    practices that will be executed in daily operations to enhance the worldwide reputation as a responsible andsafe company that provides a superior product.

    5.0 COMPLIANCE / EXCEPTIONSCompliance:Compliance with the Corporations HSE Manual, Policies & Procedures is considered mandatory. Any

    contravention is considered a performance issue and may result in disciplinary action, up to and including

    termination with cause. Guidelines reflect the elements of policies or procedures that allow for

    discretionary action. Enforcement of the HSE Manual, Policies & Procedures is the responsibility of

    management.

    Exceptions:

    If a director, officer or employee contravenes or intends to contravene the HSE Policies & Procedures, or

    has knowledge of any other individual who has contravened or intends to contravene any HSE Policy orProcedure, they shall report the contravention or intended contravention to the Corporate HSE Manager

    immediately, in advance if possible, who will in turn communicate such contravention to the President &

    CEO and Chairman of the Corporate Governance, Compensation, and HSE Committee.

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    MASTER INDEX

    INTRODUCTION

    PURPOSE

    SECTION 1 LEADERSHIP & COMMITMENT

    SECTION 2 POLICIES & GOALS

    SECTION 3 ORGANIZATION & RESPOSIBILITIES

    SECTION 3.1 COMPETENCIES, TRAINING, AND DOCUMENTATION

    SECTION 4 HAZARD MANAGEMENT SYSTEMS

    SECTION 4.1 COMMUNICATION AND EMERGENCY RESPONSE

    SECTION 5 PLANNING & PROCEDURES

    SECTION 6 PROJECT SPECIFIC HSE PLAN

    SECTION 7 AUDITING DEFINITIONS, PROCEDURES, ANDINVESTIGATIONS

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    PURPOSE

    This manual is intended for the use of Tesla Exploration Ltd. employees, visitors and

    contractors, and it includes considerations for legislation, industry recognized best

    practices, and how we control hazards associated with performing every day activities.

    All employees shall receive an orientation to review this manual. All ContractorSupervisors shall receive an orientation to this manual or their area specific portions of

    this manual.

    This manual includes usage of the verbs SHALLand SHOULD. For the purpose of this

    publication, the following definitions apply:

    SHALLindicate that the rule has universal application to the specific activity, andimplies that the rule is mandatory.

    SHOULDindicates that the rule is to be used unless there are practical or othersensible reasons to the contrary, and implies that the rule is to be used where good

    judgment and safety principles indicate it is appropriate.

    We expect all of our employees, contractors, and visitors to commit themselves to safety

    and welcome participation in our safety program by forwarding their concerns,

    suggestion, or any other ideas regarding safety to our Corporate HSE Manager at([email protected]). All Tesla Exploration Ltd. employees, their

    contractors, and visitors commitment to this safety program is mandatory.

    WHAT IS SAFETY?Safety is an integral part of Tesla Exploration Ltds work. It is part of our operations and is there

    to protect our employees, clients, property, the environment and the public.

    WHY IS SAFETY IMPORTANT TO TESLA?There are many costs to accidents and unsafe work practices. The greatest costs are human costs.

    By protecting our employees we are also protecting their friends, families, fellow workers,

    management, the public and the environment from the far-reaching effects of serious accidents.

    We are also ensuring our ability to continue to do business and employing people.In addition to protecting lives, our safety management program contributes to employee morale

    and pride because our employees participate in identifying safety needs and developing safe work

    practices and procedures.

    WHAT ARE THE ALTERNATIVES TO SAFETY?Employees, contractors and subcontractors who knowingly violate safety rules and/or regulations

    may face disciplinary action, dismissal or legal action. Visitors may be asked to leave the jobsite

    if they knowingly disobey safety rules. In addition, Tesla may face legal action or fines forviolations of regulatory requirements. Those individuals who do not fulfill their safetyresponsibilities will become accountable for any problems their negligence creates and may be

    liable under the law.

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    WHO IS RESPONSIBLE?Everyone employed by Tesla Exploration Ltd. is responsible for maintaining the safety

    management program. Managers and supervisors are responsible for identifying safety needs,

    communicating safety hazards, investigating hazardous conditions and accidents, providing

    training, supplying or wearing appropriate safety and personal protective equipment, and ensuring

    all equipment is properly maintained and meets legislated safety standards. Their role is

    supported by input from all employees.All Tesla employees and others on Tesla worksites are responsible for obeying all safety rules,

    following recommended safe work procedures, wearing and using personal protective equipment

    when required, participating in safety training programs and informing supervisors of any unsafe

    working conditions. Everyone has the right and responsibility to refuse to do work when unsafe

    conditions exist. By fulfilling our safety responsibilities, everyone who works for Tesla

    Exploration Ltd. will share in the benefits of a safe and healthy workplace.

    DOCUMENTATION CONTROL & REVIEW

    It is extremely important that the distribution, revision and updating of this document arecontrolled. Without control various versions of the same document may be in circulation

    that may well give different information. To prevent this from happening Tesla

    Exploration LTDhas procedures in place for the distribution, review and updating ofdocumentation.

    The Corporate HSE Manual can only be updated or changed by the Corporate HSEManager.

    The Corporate HSE Manager on identifying new hazards may revise or implementnew procedures with input from Senior Management and Area HSE Coordinators.

    No Corporate policy can be changed under any circumstances below CorporateLevel.

    All Area HSE Plans and Documentation will be updated to comply with CorporateHSE-MS revisions.

    DISTRIBUTION CONTROL

    The Corporate HSE Manager ensures the HSE-MS is completed. Controlled copies areheld by:

    COPY HOLDER COPY HOLDER COPY HOLDER

    1 Corporate HSE

    Manager

    6 Department

    Managers

    11 Coordinators

    2 CEO and

    President

    7 Project Managers 12 Administrators

    3 Vice Presidents 8 Crew Manager 13

    4 HSE Area

    Coordinators

    9 Crew HSE

    Advisor

    14

    5 Operation

    Supervisors

    10 Observers 15

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    REVISIONS

    Revisions to the HSE-MS should be clearly logged as per the example below.

    Revisions can only be approved by the CEO and President. The document revision

    should be entered on the cover page and the page header information. Once approved

    revised copies will be issued to the above personnel superseded copies must berecovered and destroyed.

    REVISION DATE DETAILS APPROVED BY SIGNATURE

    REFERENCE AND LEGISLATION STANDARDS

    Tesla Exploration LTD will operate its crews to internationally recognized standards

    (IAGC, CAGC and OGP). Managers must comply with the laws and regulations of thecountry or locality in which the project is being operated. Reference for this document has

    been drawn from the following sources and documents:

    OGP HSE aspects in a contract environment for geophysical operations

    CAGC HSE Best PracticesOGP Guidelines for the Development and Application of Health, Safety and

    Environmental Management Systems

    OGP Generic Hazards Register for Geophysical OperationsIAGC Land Geophysical Operations Safety Manual Version 9

    ACKNOWLEDGEMENT

    All Senior Management, Area Management, and Crew Management working on behalf

    of Tesla Exploration LTD are required to read this document and sign an

    acknowledgement of agreement to abide by the standards, duties and requirements in it.

    (An example is shown below).

    HSE-MS Acknowledgement: By signing this I agree that I have read and will abide by

    the standards, guidelines, policies, requirements of this system.NAME SIGNATURE DATE POSITION COMPANY

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    TESLA EXPLORATION LTD HSE MANAGEMENT SYSTEM

    This document is structured around the model below, the intention being to develop acontinuously evolving process to develop an HSE aware culture within the Company, and

    to provide a safe working environment for its employees. The flow chart also depicts the

    processes by which the Company seeks to satisfy the model.

    LEADERSHIP

    COMMITMENT

    CORPORATEPOLICY AND

    OBJECTIVES

    HSE PLAN

    MONITOR

    AUDIT

    PLANNING

    PROCEDURES

    ANALYSIS

    REVIEW

    MODIFICATIONHAZARDMANAGEMENT

    SYSTEM

    ORGANISATION

    RESPONSIBILITIES

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    LEGAL RESPONSIBILITY

    The safety information in HSE-MS does not take precedence over the Occupational

    Health and Safety Acts or other relevant laws governing each country, state, province, or

    community area that may contravene them. All Management shall be familiar with the

    Occupational Health and Safety Acts or other relevant legislation for the area in whichthey are working. If anything is not contained in this manual Tesla Exploration LTD will

    default to client standards or the applicable recognized standards for the area ofoperations (example: CAGC, IAGC, OGP, OSHA etc.).

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    SECTION 1 LEADERSHIP & COMMITMENT

    LETTER FROM PRESIDENT AND CEO .........................................................................................

    MISSION STATEMENT ...................................................................................................................

    HSE VISION STATEMENT..............................................................................................................

    ENVIRONMENTAL STATEMENT ..................................................................................................PETROLEUM INDUSTRY GUIDING PRINCIPLES......................................................................

    COMMUNICATION OF STATEMENTS..........................................................................................CHANGING THIS DOCUMENT.......................................................................................................

    LEGAL RESPONSIBILITY...............................................................................................................

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    LETTER FROM PRESIDENT AND CEO

    Tesla Exploration Ltd. and its subsidiaries are committed to maintaining safe work practices and so

    environmental practices within our organization. These practices allow us to: achieve the quality o

    products and services that our clients expect from us; achieve the good business practices that we hbuilt our company around; and provide a safe and responsible work environment to allow for grow

    our company.

    As the President of Tesla Exploration LTD, I expect total commitment, individual responsibility an

    accountability from each of our employees and contractors to comply with our HSE-MSs policies,

    procedures, standards and guidelines as a condition of their employment. We must create a safetyconscious culture from my position down to our front line worker. It is the responsibility of each

    employee to motivate, lead by example, and monitor the performance of our work in this regard.

    This commitment to the HSE-MS originates from the President, Board of Directors, and Senior

    Managers within our organization. The HSE-MS outlines the safe work practices that we will exec

    in our daily operations to enhance our world wide reputation as a responsible and safe company tha

    provides a superior product every time.

    I challenge each and every one of you to make a difference:

    Richard HabiakPresident

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    TESLA EXPLORATION LTD. HSE MANUAL - 2010

    HSE MISSION STATEMENT

    Tesla Exploration Ltd. is committed to the protection of our personnel, property, the environme

    the public throughout the countries and communities in which we work. This commitment requ

    to provide the best possible services to our employees, clients, and shareholders, and lets us compegrow in a global marketplace.

    Our management, supervisors, and employees are committed to maintaining a safe and healthyenvironment that complies with all applicable legislation, industry recognized best practice

    respects the cultures of all individuals and communities in which we have contact with.

    Our management team is committed to providing the capital investment and the time to fulf

    promise to provide a safe workplace free of foreseeable hazards, which could pose a risk to proper

    environment, our employees or the public.

    We recognize that our management, supervisors, employees and sub-contractors are all eresponsible for supporting the QHSE Management System, eliminating hazards within our faciliti

    on all project sites, following all of the rules and procedures contained in our HSE Manual or othspecific HSE plans, and to complying with all the laws that govern our project area.

    Tesla Exploration Ltd. takes seriously the stewardship of the environment in which they operamake the commitment to protect the environment and to minimize the disturbances to the land,

    wildlife, and plant life on all project areas.

    Tesla Exploration Ltd. believes that through a good strong Heath, Safety, Environment, and Cu

    Plan we can protect our employees, assets, communities, and the environment from injury, acci

    loss, or damage while providing our clients with the best possible services.

    Richard Habiak

    President

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    HSE VISION STATEMENT

    Tesla Exploration Ltd. believes that a high quality HSE Management System, a commitm

    Environmental Stewardship and the ability to provide exceptional products and services will cr

    business environment that will create steady growth and returns for our shareholders, a

    environment that will provide our employees life long challenges and rewards for their career pata reputation of an environmentally friendly partner in the communities in which we work.

    Richard Habiak

    President

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    ENVIRONMENTAL STATEMENT

    Tesla Exploration Ltd. recognizes its responsibility to be a steward of the environment. All levels

    organization will work towards the goal of a zero foot print with all of our projects.

    We will partner with other stewards from the areas in which we are working to design procesidentify and reduce actual or potential risks to the environment, such as the cause of fires, spil

    other damage that might result environmental damage.

    All Employees and Contractors will share in this stewardship of the environment and practice p

    waste management and containment of hazardous materials. Our minimum standard for

    management and environmental protection will be IAGC Environmental Standards or, if a hstandard, the legislative requirements of the area in which we are working.

    Richard Habiak

    President

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    PETROLEUM INDUSTRY GUIDING PRINCIPLES

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    COMMUNICATION OF STATEMENTS

    All Statements such as the Mission Statement, Vision Statement, and Environmental Statement sh

    displayed in the main congregation area of each project field office, satellite office locatio

    corporate main office. These statements shall be part of every new employees orientation and eacor department manager will ensure that the statements have been communicated to each and

    employee or sub-contractor.

    Richard HabiakPresident

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    CHANGING THIS DOCUMENT

    The only person that can change this document is the Corporate HSE Manager.

    LEGAL RESPONSIBILITY

    The safety information in this policy does not take precedence over the Occupational Health and SActs or other such laws of the land that are in place and must be abided by. All employees should

    familiar with the Occupational Health and Safety Acts or other relevant legislation for the area in w

    they are working. The laws governing each state, province, or community area take precedent ove

    part of this policy that may contravene them.

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    TESLA EXPLORATIONS HSE MANUAL 2010

    SECTION 2 POLICIES AND GOALS

    HSE POLICY......................................................................................................................................

    MEDICAL AND FIRST AID POLICY ..............................................................................................

    RESPECTFUL WORKPLACE POLICY............................................................................................

    WORKPLACE CONDUCT POLICY.................................................................................................SUBSTANCE ABUSE POLICY........................................................................................................

    SMOKING POLICY............................................................................................................................COMPLIANCE / CORRECTIVE DISCIPLINE POLICY ................................................................

    WORKING ALONE POLICY ...........................................................................................................

    VEHICLE BACK UP POLICY..........................................................................................................

    FIREARMS.........................................................................................................................................HOURS OF WORK POLICY ............................................................................................................

    PPE POLICY .......................................................................................................................................

    TRANSPORTATION POLICY .........................................................................................................SECURITY POLICY..........................................................................................................................

    TRAINING POLICY...........................................................................................................................INCIDENT REPORTING POLICY....................................................................................................CELLPHONE USE..............................................................................................................................

    ABORIGINAL, INUPIAT OR DIFFERENT CULTURAL GUIDELINES.......................................

    CORPORATE HSE GOALS AND OBJECTIVES.............................................................................

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    HSE POLICY

    Corporate Management recognizes that it is Telsa Exploration Ltds responsibility to provide our

    continual commitment to our HSE Management System as it will protect all workers engaged in its

    activities from personal injury and health hazards.

    Tesla Exploration Ltd. Safety Program will: Actively fund ongoing safety initiatives, training programs, safety materials, and the continuo

    auditing and improvement process.

    Require the use of personal protective equipment to be worn by workers who are exposed toidentified hazards.

    Enforce and ensure all Employees and our Contractors are properly trained and promote wayutilize safe work practices.

    Our activities will be conducted on the basis that safety is the primary importance to all persoTesla Employees, Contractors or the community.

    Actively participate in conducting safety inspections to detect and eliminate any health hazarunsafe working conditions or poor safety practices.

    Thoroughly investigate all incidents to determine the basic and underlying causes and theresolving of any and all problems.

    Tesla Exploration Ltd. will promote ongoing assessments and reviews methods to improve oSafety Performance and Programs.

    Richard Habiak

    President

    Date: June 9, 2010

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    MEDICAL AND FIRST AID POLICY

    It is the policy of Tesla Exploration Ltd to ensure that the medical health, fitness and well being of

    field employees are not compromised.

    To this end Tesla Exploration Ltd undertakes to:

    Ensure that all personnel, employees and contractors engaged on a crew are fit for work andhealthy, by pre-employment screening (Drug Testing and a Fitness Test)

    Ensure medical facilities are available to employees or sub-contractors to treat work relatedaliments and injuries.

    Provide employee First Aid training to ensure each job-site has a minimum of 51% of its wocompetent and trained in First Aid to respond to emergencies.

    Provide preventative medical examinations where required Develop contingency plans for the handling of medical emergencies; Ensure that personnel do not work excessively long rotations. Ensure that all personnel are trained in ergonomics. (Stretching everyday)

    Richard Habiak

    President

    Date: June 9, 2010

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    TESLA EXPLORATIONS HSE MANUAL 2010

    RESPECTFUL WORKPLACE POLICY

    Our CommitmentTesla Exploration Ltd. is committed to creating and sustaining a vibrant, healthy, safe, and caring w

    environment for its employees. To do so, all employees will be treated with respect, honesty and

    dignity. Behavior or situations that run contrary to such treatment will not be tolerated.Tesla Exploration will respond to complaints about inappropriate behavior in the workplace in time

    fashion and strive to resolve issues openly, honestly and with appropriate privacy.

    We are committed to working in collaboration with of our employees to create a respectful workpla

    by: Promoting and maintaining a common understanding of the expectations of behaviors consid

    appropriate and inappropriate in all Tesla workplace environments. Taking action to prevent and/or deal with inappropriate behavior where Tesla Exploration Lt

    conducting business.

    This policy applies to all Tesla Exploration Ltd. Employees and Contractors providing a service foron behalf of Tesla Exploration and all Tesla Exploration buildings, facilities, job sites, offices or otwork environments. Also included are locations visited by our employees while traveling on Tesla

    related business including conferences, meetings, and client or customer sites.

    As a Tesla employee you are responsible for creating a respectful workplace environment by:

    Ensuring your behavior is respectful and appropriate at all times; accepting responsibility for your

    reactions and behaviors and your impact on others. Making sure your concerns are known promptsomething is troubling you. Being part of the solution; immediately informing your supervisor if t

    is an imminent threat or risk of violence that could compromise any individuals safety. Keep a re

    of dates, times, locations, witnesses and number of incidents. Advise the individual engaging in an

    inappropriate conduct that their actions are unwelcome, and ask them to stop. Report the behaviorpersists.

    Any employee who violates this policy will be subject to appropriate disciplinary action, which mainclude termination of employment.

    Every Tesla Exploration Ltd. employee has the right to report (in good faith) incidents of discriminharassment or inappropriate behavior without the fear of retaliation.

    Retaliation by any person against anyone involved in the complaint process will not be tolerated an

    be subject to discipline, up to and including dismissal from employment.

    Richard HabiakPresident

    Date: June 9, 2010

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    WORKPLACE CONDUCT POLICY

    Workplace conduct is to be kept at a professional level at all times. In keeping with professionali

    following is not allowed at the worksite: The attempted or actual exercise by a worker towards another worker using physical force to

    injury, and including any threatening statement or behavior which gives the worker reascause to believe he or she is at risk of injury.

    Any form of harassment Horseplay, Practical jokes, Unnecessary running or jumping. Any improper activity or behavior at a workplace that might create or constitute a hazard to

    or to any other person.

    Improper activity or behavior must be reported and investigated and disciplinary action for emp

    contravening this policy can include dismissal.

    Richard Habiak

    President

    Date: June 9, 2010

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    SUBSTANCE ABUSE POLICY

    Substance abuse is a serious violation of Company Policy, and has an adverse impact on the safety

    health of the employee, their families, fellow employees, contractors, and contractors employees.

    Tesla Exploration Ltd. objective to eliminate substance abuse by all employees and not allow its us

    any contractors on its sites.

    To achieve this objective, management asks for the co-operation of each employee as well ascontractors. Tesla will not tolerate the possession, sale, transportation or use of illicit drugs, synth

    or designer drugs or any other illegal substances, as well as, any drug paraphernalia or equipmen

    or in any Tesla Exploration Ltd. premise, vehicle, job site, contractor site, client site, or business a

    The only exception to this policy will be for properly documented prescription drugs, and their requ

    equipment, that are authorized by a licensed physician. Any prescription drugs that may affect the

    employees judgment, ability to complete their job task, or ability to operate a motor vehicle must reported to a supervisor prior to taking part in any company activity.

    The use, possession, purchase, sale, or ingestion of an intoxicating substance on any Teslas premivehicle, job site, contractor site, client site, or business is strictly prohibited without the express conof Tesla or its representatives and failure to observe this will result in the immediate removal from

    site.

    We encourage employees who have a problem to recognize such, and come forward to seek assista

    An employees job security will not be jeopardized by virtue of coming forward to ask for help.

    While Tesla Exploration Ltd. Inc is willing to help those employees who seek assistance, it is commto strict enforcement of its policies relating to abuse for those who choose to ignore the policies.

    Violations of these policies are deemed a most serious matter, and employees will be disciplined

    accordingly.

    TESTING PROCEDURES

    In order to administer and enforce this Substance Abuse Policy effectively, Tesla reserves the rightany time and at its sole discretion, to conduct or have conducted reasonable investigations and/or

    searches of personal effects of any employees, contractors, or other persons associated with Tesla d

    job related activities. Tesla also reserves the right to require urinalysis on employees while they are

    Company premises, while on Company business, or at a customers workplace or jobsite.

    These searches and tests shall be conducted at the sole discretion of Tesla and maybe part of any

    investigation of an accident, incident, or near miss.

    Tesla also reserves the right to inspect any items brought onto any of its premises, work site, or otharea affiliated with the completion of its business.

    If the job description of the employee involves the use of a vehicle, Tesla, reserves the right to

    immediately suspend or terminate any employee convicted of an impaired driving charge or D.U.Icharge, even if this charge was laid when the employee wasnt on company time or business.

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    PERSONNEL SUBJECT TO TESTING INCLUDE

    All personnel who have been involved in an accident or incident, All contractors employees that will be working on a Teslas job or work site (Note: These

    personnel may have a representative of their sub-contractors present during testing...) Current personnel where fitness or capability for work requires the employee to be in a drug

    intoxicant-free state.

    ALL TEST RESULTS WILL BE HELD IN THE STRICTEST CONFIDENCE

    TEST RESULTS - ILLEGAL DRUGS

    Positive Test Result A positive test will evaluated against known United States of America known D.O.T. standar If a on-site screening is completed and a positive result is shown then the employee may not

    to work until a test is completed by a recognized testing facility and a negative result is return If the test is part of a return to work screening - Notice of results and immediate suspension

    without pay and referral to a rehabilitation facility, at employee cost, will be made. Reinstate

    of employment will only be done when proof of rehabilitation is shown. Any subsequent positive tests will result in termination. Any contractor employee will be terminated from the job or work site. Further remedial acti

    up to the contractors sub-contractor.

    If test is part of post offer screening that employees relationship will be terminated with cau Any employee or contractor employee that fails to observe the policies and procedures laid o

    this section will be subjected to disciplinary action up to and including termination with caus

    TEST RESULTS ALCOHOL

    Positive Test Result Will result in the employees or contractors immediate removal from the worksite until sobr

    achieved, a written warning will be issued and a referral to a rehabilitation facility at theemployees expense will be made. Please note that the test for intoxication or sobriety is

    subjective measure and any supervisor may assume that level is reached if they can sho

    justifiable cause to believe the employee has reached that level. Contractor employees that have subsequent positive tests will be terminated from the job or

    site and any further action required will be up to the sub-contractor management team. Subsequent positive tests of employees will result in termination. If operating a vehicle is involved: at the sole discretion of the Tesla representative in charge a

    employee may be removed from that vehicle and disciplinary action will be taken up to and

    including immediate dismissal.

    The well being, safety and efficiency of all employees and contractors is of the highest concern to TExploration Ltd. It would be inconsistent to promote a strong safety and efficiency effort while not

    preventing the use of drugs and alcohol from undermining Teslas aim to keep the employees, custand other persons doing business with Tesla in a safe and productive work environment. Tesla

    Exploration Ltd. therefore requests that you review and consider this Policy carefully.

    Any questions you may have with respect to its administration may be referred to the HSEManager/Advisor or your current PM or Supervisor.

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    ADDITIONAL ALCOHOL TESTING REQUIREMENTS FOR DRIVERS

    Tesla Exploration Ltd. requires all of its vehicle operators to be fit for duty before the operation of

    motorized vehicle as a condition of employment. In keeping with our strict requirements all driver

    be required to submit to a breathalyzer test every morning before operating any motorized vehicle.

    is required for all drivers of any vehicle on a Tesla job site. Refusal of a breathalyzer test will be tas a failure. Testing procedure will include an initial test with a .02 limit and if that test is positive

    another test is to be performed 10 minutes later. That test will also have a .02 limit. If the second

    failed as well the driver is immediately suspended and must face a review from their Supervisor anHSE Manager. Disciplinary procedures will follow legislative compliance but will include the full

    range of progressive disciplinary enforcement up to and including immediate dismissal or removal

    the job site. The Project Manager or Recording Crew Manager will ensure that this testing is compdaily.

    Richard Habiak

    President

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    SMOKING POLICY

    Smoke only in designated areas and respect your other workers and the public. Smoking is prohibi

    refueling areas, propane storage, helicopters staging, offices, camp kitchen, recreation room, bunk

    and around explosives. Employees that fail to comply will be subject to enforcement principles up

    and including dismissal. Smokers must follow Federal, State, Provincial, and Municipal Legislationthis regard and each Crew Manager will know the legislation and set up designated smoking areas

    according to legislation. There will be no smoking in Tesla Exploration Ltd. vehicles, in any of itsbuildings, or within 5m of their entrances.

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    COMPLIANCE / CORRECTIVE DISCIPLINE POLICY

    It is both management and each employees responsibility to ensure compliance with all regulatory

    company and client rules, practices, procedures and policies.

    This policy is designed to correct employees actions that are not consistent with the above, rather t

    terminate the employee from employment. The system allows the employee reasonable opportunitybe aware of the problem behavior and an opportunity to correct such actions / behaviors; however,

    employee(s) will not be permitted to continue where the employees actions jeopardize the health asafety of others.

    The resultant system of progressive disciplinary action that is implemented and maintained by

    Supervisors and scrutinized by Management is as follows:

    Verbal warningCommunication with employee regarding performance and non-compliance with established standof performance or conduct. A report will be written down and filed on employees file in the

    appropriate area office.

    Written WarningA copy provided to employee and head office detailing the employees performance that is in non

    compliance with standards of performance or conduct and lack of improvement if previous discipliaction taken. The use of a censure sheet is recommended, but any written record will suffice. This

    record is to be filed on the employees file.

    Suspension or DischargeA written record of events that have resulted in recommendation to suspend or dismissal of the

    employee must be completed.

    Continual failure of employee to meet standards of performance or major violation of company po

    (i.e. theft, drinking, fighting, willful destruction of company property, etc.) will result in immediate

    dismissal with cause.

    NOTE:

    The above sequence of actions will be dependent on the nature of the offense. Each situation will considered individually. The decision of an immediate discharge for the first offense could be mad

    after consideration of that specific case.

    Richard HabiakPresident

    Date: June 9, 2010

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    WORKING ALONE POLICY

    Working Alone is against company policy unless driving to and from a worksite or a Permit Agent, Scou

    Front End Project Manager

    Working Alone is defined as: Working alone applies if a worker is working alone and assistance is not reavailable if there is an emergency or the worker is injured or ill.

    When an Employee is required to Work Alone the following shall be in place:

    All hazards to that worker must be identified and documented. Measures must be taken to eliminate any hazards, and if it is not practicable to eliminate the hazard

    minimize the risk from the hazard. The supervisor must ensure a mob/de-mob plan is created for checking the well-being of a worker

    assigned to work alone or in isolation under conditions which present a risk of disabling injury, if t

    worker might not be able to secure assistance in the event of injury or other misfortune. The procedfor checking a worker's well-being must include the time interval between checks and the procedur

    follow in case the worker cannot be contacted, including provisions for emergency rescue. In additchecks at regular intervals, a check at the end of the work shift must be done. The procedure forchecking a worker's well-being, including time intervals between the checks, must be developed in

    consultation with the joint committee or the worker health and safety representative, as applicable a

    with the worker assigned to work alone or in isolation. A person must be designated to establish contact with the worker at predetermined intervals and th

    results must be recorded by the person.

    A worker to work alone and any person assigned to check on the worker must both be aware of thein place.

    A written journey management plan providing step by step instructions to the employee to carry outheir journey safely. Travel route, fueling stops, and rest stops shall all be determined in advance.

    occurrence happens that alters these plans the supervisor or journey management contact shall benotified immediately. Cell phone,radio or other means of communication and charger are required

    for all of these Journeys. If there is no cell coverage a call must be placed from a land phone alongprescribed route. Employees subject to work alone must be trained in these procedures and know w

    is expected of them. If any employee working alone misses a check-in a second call will be made to them at a 15 minut

    later. If there is no response the emergency plan shall be put into place and calls placed to the emp

    at 15 minute intervals until there is contact or the emergency responders locate the employee.

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    President

    Date: June 9, 2010

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    VEHICLE BACK UP POLICY

    Tesla Exploration LTD. requires the first movement of a vehicle is forward where it is possible to do so.

    Following are procedures for backing up vehicle: Dont back up unless you have to. As you approach an area where you need to backup, examine it closely look out for any obstructi

    possible hazards. Pick out some landmarks that you will be able to see in your mirrors. If there is more than one person in vehicle you MUST use a ground spotter to ensure your safety. Follow only the direction of ONE spotter and STOP IMMEDIATELY if you loose sight of the spo If you are asked to be a spotter on foot, make sure you know all the hand signals. Stand where the

    equipment operator can stop with the cab opposite you, and have eye-to-eye contact with you. If you become disorientated or unsure as to where you are or what is behind you, STOP!! If necess

    perform a walk-around the vehicle to see if any obstacles or hazards present danger or risk to safel

    backing up the vehicle or pull forward and circle around (left if possible.) Be Alert. The driver of the vehicle found responsible for the incident/accident may have driving privileges

    suspended and/or may face disciplinary action up to and including termination.

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    FIREARMS

    No firearms are allowed on any project or company property. The only exception to this rule is in respon

    a hazard that has been identified. In this case, permission to carry firearms must be granted by proper

    authorities, the governing body, the Client, and Senior Management at Tesla Exploration Ltd. A writtendocument must be produced outlining the required fire arms, their intended use, and storage procedures.

    document must be produced and signed by at least two of the grantors before fire arms are allowed on th

    project site.

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    President

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    HOURS OF WORK POLICY

    All Tesla employees and contractors will comply with our general guidelines.

    Our general guidelines state that worker time off scheduling will conform to the standards that are outlin

    any relevant legislation, standards, or industry recognized practices for the jurisdiction in which they areoperating. As these vary from job-site to job-site crew management should ensure that local work legisla

    is complied with.

    All levels of Management must constantly evaluate worker fatigue factors and take measures to minimize

    risk that fatigue entails and adjust work schedules accordingly.

    DOT and Transport Canada, Hour of Service or other relevant legislation must be adhered to, and all driv

    must follow reset rules and regulations for their project area. Drivers must inform their supervisors of an

    fatigue issues that may affect their performance.

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    PPE POLICY

    It is a Tesla Exploration Ltd requirement for all personnel to use appropriate PPE anytime their duties exthem to a possible hazard. Tesla Exploration Ltd provides a variety of PPE for the benefit and safety of th

    employees, including Safety Glasses, Safety Vests, Hard Hats, Safety Gloves, and Hearing Protection. E

    specific work area will have its own PPE requirements.

    All Tesla Exploration Ltd employees must wear footwear that is appropriate for the task undertaken, and

    suitable for the environment being worked in, and reflective vests will be worn at all times when conduct

    field activities.

    Site specific PPE requirements (examples):

    Shooting Crews: Hard Hats, Eye/Ear Protection; Helicopter Landing Zone Operations: Hard Hat with chin strap, Eye Protection, Gloves Drilling Rigs: Hard hats, Gloves, Hearing Protection, Eye Protection ATVs, UTVs and Snowmobiles: Approved Helmets, Gloves, Eye Protection Workshop: Safety Toe Boots, Safety Glasses Goggles, Welding Helmets, Neoprene Gloves (any pe

    handling chemicals must protect themselves according to the MSDS for the material they are work

    with. Vibrator Operators and Mechanics: Safety Toe Boots, Hearing protection Brush Crews: Hard Hats, Gloves, Hearing protection, Chainsaw Chaps, Face and Eye Protection Person providing 1st Aid: Latex Surgical Gloves, CPR Shields

    The Crew Project Managers, the Field Safety Advisor and the Safety Department will monitor the provisPPE to ensure that it is available for proper use. Each employee has the responsibility to utilize the availa

    equipment and to report to his/her supervisor or the Safety Department, immediately, if the necessary PP

    not available, suitable, or not in good condition.

    Non compliance with safety rules places an employee, his/her coworkers and Tesla Exploration Ltd at ri

    therefore, persistent or deliberate non compliance with safety rules can be grounds for termination of

    employment.

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    PresidentDate: June 9, 2010

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    TRANSPORTATION POLICY

    Transportation exposes Tesla Exploration Ltd employees to more risk than any other activity associated wour operations. To reduce transportation risks to an acceptable level, this Transportation Policy is being

    adopted and shall apply to all Tesla Exploration Ltd operations.

    Driver Training and QualificationsOnly approved personnel and contractors are allowed to drive vehicles on behalf of Tesla Exploration Ltincluding company-owned or leased vehicles or vehicles rented for business purposes. Approval is grante

    drivers who have been approved through HR/HSE investigating their driving history and/or completion o

    Tesla Exploration Ltd approved defensive driving course and competency evaluation.

    Vehicle ResponsibilityResponsibility for individual vehicles lies with the line managers who use the vehicles on their crews, se

    or locations. All supervisors should ensure that all drivers are trained and qualified and that all types of

    vehicles under their control are correctly fitted with the appropriate safety equipment, supplies and stickeAll drivers are responsible for checking each vehicle for maintenance, safety equipment and fuel levels,

    prior to driving it. All drivers are responsible to follow journey management procedures. All drivers areresponsible for the safety and security of themselves, their passengers and their cargo until the vehicle re

    its final destination.

    Seat BeltsAs a condition of employment, all employees and contractors must wear seat belts at all times when driv

    riding in a company on road vehicle. Drivers shall be responsible to ensure all passengers are wearing se

    belts prior to departure. Failure to comply will result in disciplinary action up to and including terminatio

    Journey ManagementAll locations shall have in place an active journey management program that complies with the Tesla

    Exploration Ltd standard. Each location a Journey Management program shall address all local driving

    conditions and identified risks. A Mob/De-mob plan shall be completed for every crew move of location

    Vehicle Tracking SystemVehicle monitors shall be installed in vehicles where practical determined by service area. Supervisors,

    RCMs, and Area HSE Manager shall monitor these systems and use that data to improve driver skills.

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    PresidentDate: June 9, 2010

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    SECURITY POLICY

    Tesla Exploration LTD operates on a worldwide basis in areas that can be considered volatile and danger

    The company recognizes its obligations to ensure a healthy, safe, and secure environment for workers, as

    and the communities in which it operates. Our projects will be completed with minimal risk to personne

    property, and the community through the continuous assessment and management of security risks. Toachieve the above policy statements the following general principles will apply when security is deemed

    necessary; or is directed by client and/or Tesla Exploration LTD:

    Security and protection of employees is the overriding priority of all business activity. Project Operations Supervisor and Area Operations Manager are responsible to ensure that the pr

    resources and a comprehensive analysis of security threats both local and regional are completed b

    the project begins.

    Project Manager is responsible for the creation; implementation and monitoring of project specificsecurity plan.

    The security resources and their organization of those resources must be sufficient to reflect ourcommitment to a safe and secure environment.

    Project Manager, HSE, and any other members of security team must create Emergency Response set up appropriate training; and ensure enough resources are on hand to carry them out.

    All employees must be properly trained in the recognition of security threats and the proper emergeresponse related to the threat.

    Response plans are to be reviewed and tested monthly. Line management and the workers are responsible to follow the security protocols set up for the pr

    and actively participate in all training related to security activities.

    Security measures and procedures are to be inspected on a regular basis. Security specialists whethemployed or contracted are to be utilized to inspect, validate, and verify procedures in order to mai

    a high level of confidence in the security systems.

    All incidents must be reported and corrective action taken in order to improve the overall standardssecurity. Management must disseminate new information and procedure to other worksites.

    All concerned parties need to briefed of any identified security threats and incidents. This includesliaising with the appropriate government or local agencies (police, military, etc).

    All security activities and procedures in place should make every effort possible to minimize impathe local communities.

    Richard Habiak

    President

    Date: June 9, 2010

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    TRAINING POLICY

    Tesla Exploration Ltd requires that all employees receive the following as a minimum requirement befor

    work begins: Orientation to Tesla HSE Management System Introduction to HSE Management System secti

    section Job Specific Orientation Specific to their job function - examples include:

    Blasting Certification ATV/UTV Certification Snowmobile Certification First Aid Training Drill Training Material Training WHMIS HAZCOM Material Safety Data Sheets

    Field Orientation All field related HSE Issues, Hazard assessments, job specific rules, etc. Project Specific HSE Orientation All of Field Orientation but on a project specific level Hazard and Risk Assessment Training Hazard and Risk Assessment Process and Documentati

    UCAN Card System Hazard Mapping - Controls Personal Protection Equipment Orientation, Fitting, and Training Any other training required by Legislation, Industry Recognized Practices, or Client Specific

    Requirements

    All employees are required to receive the proper training before beginning their job task as a condition oemployment and must be aware of the Right to Refuse if they have not have concerns about their train

    knowledge about their tasks or responsibilities. Managers must not put workers to work without ensurin

    competency and managers subject to Corrective Action up to and including dismissal if they fail to ensurcompetency of their crew. For further information on specific training requirements refer to Training M

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    President

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    INCIDENT REPORTING POLICYIt is the policy of Tesla Exploration Ltd. to create, maintain and file accident reports as required by law. Accident

    submitted to outside agencies and agents of the company shall be submitted in the required format.

    All incidents and accidents; regardless of severity, resulting in, or likely to cause (near miss), injury or illness shal

    reported in order to: Establish a written record of factors that cause injuries and illnesses and occurrences (near-misses) that mig

    have resulted in injury or illness but did not, as well as property and vehicle damage.

    Maintain a capability to promptly investigate incidents and events in order to initiate and support correctiveand/or preventive action.

    Provide statistical information for use in analyzing all phases of incidents and events. Provide the means for complying with the reporting requirements for occupational injuries and illness.

    The Incident Reporting System requirements apply to all incidences involving company employees, on-site

    vendors, contractor employees and visitors, which result in (or might have resulted in) personal injury, illn

    and/or property and vehicle damage.

    To ensure that all employees understand the incident reporting requirements and are aware of their own and other'

    responsibilities, annual training sessions will be held with all Key employees to review procedures and responsibilNew Employee Orientation training will include information on incident reporting and procedures. Employees inv

    in record entry and record keeping will be trained in the company and statutory requirements.

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    CELLPHONE USE

    In reflecting on the hazard that cell phones present while driving for Tesla Exploration Ltd it has been de

    that we will not allow drivers on our projects to talk on cell phones without a one touch hands free devic

    while operating any vehicle. We will allow voice activated calling but not punching in the numbers.

    We strongly recommend that there should be no cell phone use while operating a vehicle. Further to this

    there will absolutely be no emailing or texting while operating any of our vehicles.

    In enforcing this new policy please be advised that a first offence will result in a written warning and put

    your personnel file; a second offence will result in a suspension of your driving privileges and a review b

    Area HSE Manager and Supervisor; the third offence could result in a longer suspension up to and includtermination.

    Richard Habiak

    President

    Date: June 9, 2010

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    ABORIGINAL, INUPIAT OR DIFFERENT CULTURAL

    GUIDELINES

    Tesla Exploration Ltd. values as embraced by our employees, will guide our day-to-day relations with th

    Aboriginal community. These values include Open Communication, Integrity, Mutual Respect, Trust, anmaking positive difference through community capacity building.

    COMMUNITY RELATIONSTeslas community relations program will build, enhance and maintain positive relations in the Aborigin

    community by: Maintaining dialogue between the Tesla and Aboriginal people; Ensuring timely discussions with local Aboriginal communities when Teslas activities might impa

    those communities; Ensuring that potentially affected communities are provided with the necessary information require

    open collaborative dialogue;

    Respecting cultural and individual differences; Considering support of Aboriginal events and programs in areas where Tesla conducts its business Taking pride in our contributions to communities and in our care for environment. Tesla will seek Aboriginal input on proposed developments and business plans to encourage the

    involvement of those who may be affected by our operations.

    EMPLOYMENT OPPORTUNITIES Our company recognized the potential benefit of hiring local employees and services, and will prov

    timely information about potential employment opportunities to Aboriginal communities.

    Tesla will also work with Aboriginal communities, business and individuals to ensure they are giveopportunity for contracts and services based on competitiveness and the ability to meet Teslas

    standards. Tesla will encourage its contractors to draw upon the local labor force in Aboriginal communities f

    employment opportunities.

    BUSINESS OPPORTUNITIESTesla procurement business objective is to achieve best value in goods and services acquired. Within thcontext, Tesla is committed to working with Aboriginal communities to develop their capacity to particip

    and benefit from businesses, which benefit both the Aboriginal communities and Tesla by: Advising local Aboriginal communities of Tesla activities; Maintaining vendor lists of local Aboriginal business and personal who are qualified to provide ser

    for Tesla;

    Considering ways of approaching new business opportunities at the community level; and Including both qualified Aboriginal and non-Aboriginal business on bid request lists for work on a

    Reserve or Settlement lands. Work will be awarded on a competitive basis having regard for the

    standard business criteria of acceptable performance record.

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    CORPORATE HSE GOALS AND OBJECTIVES

    GOAL:To promote a positive HSE culture throughout the Tesla organization by providing leadeand awareness for the sole purpose of creating a culture that strives to eliminate incidents which h

    the potential to harm our employees, reputation, equipment, the environment, or the communities

    which we operate.

    Leadership -is characterized by active, positive, and visible behavior. Management and employthat are recognized as leaders exist at all levels within our company and they must represent our

    commitment and encourage proactive involvement in our HSE Management System throughout th

    organization.

    Awareness- can be achieved through the use of various media: effective orientations, proper traicomputers and other technology, and meetings on a daily, weekly or monthly schedule as required

    Objectives Shared Responsibility Status/Result

    1 Establish whole measurable annual goals andobjectives to evaluate HSE performance.

    Senior Management for all operatingareas and HSE Manager

    Continuous

    2 Monitor company training and competenciesmatrixes to insure compliance.

    Area Management and HSECoordinators

    Continuous

    3 Develop an effective tracking system for HSE

    action items from HSE Committee Meetings.

    Area Management and HSE Manager Continuous

    4 Coordinate and arrange HSE ManagementTraining as required for all senior managers.

    President/HSE Manager/AreaManagers

    As Required

    5 Review and monitor monthly HSE performancealong with action point list closeout measurement.

    Senior Management for all operatingareas and HSE Manager

    Continuous

    6 Insure HSE compliance with all regulatory

    agencies that monitor such activity.

    Area Managers and HSE

    Coordinators

    As Required

    7 To initiate and execute audits on the crews and

    follow up with action point list.

    President / Vice-president/HSE

    Manager

    Continuous

    8 To increase awareness and competencies President / Vice-president/HSE

    Manager

    Continuous

    9 Promote visible HSE leadership by Senior

    Management field crew visits..

    President / Vice-president/HSE

    Manager

    Continuous

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    SECTION 3.0 ORGANIZATION AND RESPONSIBLITIESCORPORATE FLOW CHART..........................................................................................................RESPONSIBILITIES...........................................................................................................................

    MANAGEMENT RESPONSIBILITY .......................................................................................................

    PROJECT SUPERVISOR RESPONSIBILITIES ..........................................................................................

    PROJECT MANAGER /CREW MANAGER RESPONSIBILITIES ..............................................................CONTRACTORS RESPONSIBILITY ......................................................................................................

    WORKER RESPONSIBILITIES .............................................................................................................VISITORS RESPONSIBILITY..............................................................................................................

    MEDIC RESPONSIBILITIES.................................................................................................................

    SAFETY ADVISOR RESPONSIBILITIES.................................................................................................

    RESPECTFUL WORKPLACE ..........................................................................................................EXPLANATION AND PROCEDURES .....................................................................................................

    MANAGEMENTS RESPONSIBILITIES:.................................................................................................

    GENERAL ..........................................................................................................................................CONFIDENTIALITY:............................................................................................................................

    TIMELINESS:......................................................................................................................................QUESTIONS: ......................................................................................................................................

    CORRECTIVE DISCIPLINARY PROCESS EXPLAINED.............................................................

    ENFORCEMENT SYSTEM OBJECTIVES ................................................................................................

    DEFINITIONS .....................................................................................................................................RESPONSIBILITIES .............................................................................................................................

    ENFORCEMENT PROCEDURES ...........................................................................................................

    ENFORCEMENT DOCUMENT DISTRIBUTION ......................................................................................

    NORMAL ENFORCEMENT SEQUENCE.................................................................................................PROGRESSION OF ENFORCEMENT DISCIPLINE ...................................................................................

    RADIO COMMUNICATION ............................................................................................................

    FIRST AID..........................................................................................................................................EMERGENCY EYEWASH FACILITIES..........................................................................................

    SECTION 3.1 COMPETENCIES, TRAINING, AND DOCUMENTATIONTRAINING PURPOSE.......................................................................................................................

    WORKER COMPETENCY ...............................................................................................................TRAINING ..........................................................................................................................................

    ORIENTATION....................................................................................................................................

    WHMISOR HAZAROUS COMMUNICATION TRAINING .......................................................................

    H2SAWARENESS..............................................................................................................................FIRST AID TRAINING ........................................................................................................................

    BLOOD BORNE PATHOGENS..............................................................................................................CERTIFICATION ...............................................................................................................................

    HAZMATORTDGCERTIFICATE....................................................................................................

    ATV/UTVOPERATORS CERTIFICATE .............................................................................................

    VEHICLE OPERATORS LICENSE .......................................................................................................DOCUMENTATION .............................................................................................................................

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    SECTION 3.0 ORGANIZATION AND RESPONSIBLITIES

    CORPORATE FLOW CHART

    Vice President of Area

    Overall responsibility for the daily operation of their divisionincluding: Contracts, Safety, Operations and Quality

    Corporate HSE Manager

    Responsible for Creation and Oversight of Health, Safety,Security and Environmental Management Programs including

    all Policies and Procedures

    Field Administrator

    Responsible tracking productionand all field costs

    Project Manager

    Responsible for oversight of all phases for advance fieldoperations as well as journey management and project

    orientation for all field personnel

    HSE Advisor

    Responsible for all advance safetysupport reporting

    Cutting CoordinatorResponsible for all line

    cutting operations, loadingGPS units, field audits,

    safety meetings, line Q/C

    Survey Supervisor

    Responsible forcoordinating surveying

    pipeline, locating, Q/C ofsurvey, field Audits, and

    safety meetings

    Drilling Supervisor

    Responsible for drillcoordination, explosiveinventory, drill audits,

    drilling Q/C, safety meeting/ management

    Mulching

    UnitsHand cutting Crews Mappers and GPS

    Surveyors

    PipelineLocators

    Heliportable DrillHelicopter

    S

    Track Drills

    And En vir o

    President

    Overall responsibility for the Viability, Dir ection, Reputation,and setting of goals to achieve the expectations of our

    Board, Employees and Customers.

    Field Administ

    Responsible tracproduction and al

    costs

    Supervisor Field O

    Responsible for all safety, qualitycost tracking for all phases of the d

    Area HSE Coo rdinato r/Manager

    Responsible for Oversight of Safety Management Programincluding all Policies and Procedures for their Area of

    Operation

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    RESPONSIBILITIES

    This section identifies the key responsibilities of those members of the management that are deeme

    safety critical. That is, anybody that has a direct influence on the people and operation they areresponsible for supervising.

    Accountability for unsafe practices and resulting incidents lies with Line Management from the

    Managing Director to every level of supervisor and down to each individual employee. It is essenti

    members of the operation to understand what their HSE responsibility is.

    MANAGEMENT RESPONSIBILITY

    Establish a HSE-MS program to provide a safe and healthy work environment Establish a Management Team to oversee each area, department, and project to ensure

    competency in: safe work practices the safe handling, use, and storage of hazardous substances; detecting and controlling worker exposure to hydrogen sulphide; handling, using, maintaining, and storing personal protective equipment; appropriate responses to emergencies at the work site; the duties and responsibilities of all employees and contractors; training employees and contractors in safe work practices and procedures; health and safety programs and initiatives;

    Ensure that the green vest program in implemented to ensure new worker competency; Ensure monthly safety meetings to review and discuss safety, identify trend, and report stats. Report accidents/incidents to proper authorities

    Provide the proper facilities based on legislation and need Ensure that PPE is available, maintained, and workers have been trained in its use Support and evaluate Field Operation Supervisors in their health and safety activities Maintain all documentation for audit purposes Inform all workers of Tesla Exploration Ltd Safety Program Requirements Ensure workers are aware of rights and obligations under OSHA or OH&S Guidelines Ensure workers understand Right to Refuse Legislation Provide all material required by Federal, State, Provincial, or Community area legislation Conduct frequent documented inspections of your job sites to ensure compliance with Tesla

    Exploration Ltd safety policy and with all applicable legislation.

    Ensure all employees identify and report all hazards they encounter and that they are identifi

    all employees and establish a method of mitigating these hazards STOP WORK when an imminent dangerous situation is identified and correct the situation Follow industry recognized safe work procedures established for your area of operation. Provide the time and resources for employees to do their job safely and effectively. Investigate any incidents, accidents or near misses that HSE Manager requests and assist HSE

    Manager/Advisor with such an investigation.

    Assist in the creation of all site specific ERPs and ensure all employees have a project approvERP

    Employ only workers over the age of 18

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    PROJECT SUPERVISOR RESPONSIBILITIES

    That they or contractor shall ensure that all work at a place of employment is sufficiently andcompetently supervised. Supervisors have sufficient knowledge of all of the following with

    respect to matters that are within the scope of the supervisors responsibility: the federal, state

    provincial OH&S acts or regulations of the country or area of which they are operating, and other legislation that apply to the place of employment, any occupational health and safety

    program required by a place of employment, the safe handling, use, storage, production and

    disposal of chemical and biological substances, the need for and safe use of personal protecti

    equipment, emergency procedures required by these regulations, any other matters that arenecessary to ensure the health and safety of workers under their direction.

    Ensure that they have received appropriate training for their level of management according tcompetency guidelines

    Ensure all contractors on project have an approved safety program by area HSECoordinator/Manager

    Check and make sure all contractors understand Teslas safety program contractor requireme Determine and document all supervisors for each contractor (ERP) Check and determine with Area HSE department that each contractor is providing adequate

    training and supervision of employees.

    Enforce occupational health and safety regulations. Establish safe work procedures, and instruct where needed. Participate, as requested, in any s

    meeting or council that is set up to monitor/promote safety, and to forward any of your projec

    concerns or suggestions regarding safety issues.

    To work with the HSE Manager or his designee, in all investigations and safety initiatives. Ensure equipment is properly maintained. Insist on performance and behavior that meets the criteria set out in this safety manual and al

    work programs. Ensure all companyoperations comply with Teslas safety standards as outlined in this manu

    well as any relevant legislation.

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    TESLA EXPLORATIONS HSE MANUAL 2010

    PROJECT MANAGER / CREW MANAGER RESPONSIBILITIES

    Ensure that they have received appropriate training for their level of management according tcompetency guidelines

    Make sure all contractors on project have an approved safety program Check and make sure all contractors understand Teslas safety program Provide an orientation session for all contractors and visitors upon arrival to the project Coordinate all contractors on the project Determine and document all on site supervisors for each sub-contractor Clarify role of each on site supervisor for each sub-contractor Check and determine with HSE Manager that each sub-contractor is providing adequate train

    and supervision of employees. Ensure that all employees are supervised, trained, and receive direction in their day to day tas Identify hazards and coordinate the identification and communication of hazards between the

    various contractors on the project. Create an effective site specific ERP and Coordinate it with contractors on project. There wi

    only one ERP on a project and all personnel and contractors must use and follow it. Follow all guideline for safety meetings and make sure contractors have prepared their emplo

    for the possible job specific dangers during these meetings, daily.

    Ensure that all employees are supervised, trained, and receive direction in their day to day tas Identify hazards and coordinate the identification and communication of hazards between the

    various contractors on the project.

    Create an effective site specific ERP and Coordinate it with contractors on project. There wionly one ERP on a project and all contractors must use and follow it.

    Enforce occupational health and safety regulations. Establish safe work procedures, and instruct where needed. Participate, in any safety meeting

    council that is set up to monitor/promote safety, and to forward any of your safety concern or

    suggestions regarding safety issues. Correct unsafe acts and conditions. Ensure that only authorized, adequately trained workers operate equipment. Report and investigate all accidents, near misses, injuries, or illnesses. Ensure that only authorized, adequately trained workers operate equipment and that equipme

    safe, unaltered, and in good repair To work with the HSE Manager or his appointed Advisor, in all investigations and safety

    initiatives. Ensure equipment is properly maintained. Insist on performance and behavior that meets the criteria set out in this safety manual and al

    work programs. Ensure all company and contractor operations comply with Teslas safety standards as outlin

    this manual, as well as any relevant legislation. To tour the worksite daily and monitor for unsafe acts or conditions

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    TESLA EXPLORATIONS HSE MANUAL 2010

    CONTRACTORS RESPONSIBILITY

    The contractor shall give notice in writing to every employer, worker or self-employed persothe place of employment, setting out the name of the person who is supervising the work on

    of the contractor, any emergency facilities provided by the contractor for the use of the emploworkers or self employed persons and the existence of a committee or representative, if any, place of employment and the means to contact the committee representative.

    Provide all of your employees with a documented project orientation Ensure workers are aware of their rights and obligations under OH&S Guidelines Ensure workers understand the Right to Refuse Legislation Ensure that new employees to your organization receive instruction and direct supervision fr

    competent worker until they are designated competent Ensure only competent workers operate equipment. Ensure all employees identify and report all hazards they encounter and that they are identifi

    all employees and establish a method of mitigating these hazards STOP WORK when an imminent dangerous situation is observed and correct the situation; a

    as, document all relevant facts and forward to the Project Manager or Crew Manager.

    Follow industry recognized safe work procedures established for your area of operation. Ensure all employees have, are wearing, and maintaining appropriate personal protective

    equipment Participate in training programs that Tesla might put in place. Report all accidents, incidents or near misses to the Project Manager and Teslas HSE Manag All Contractors shall forward a copy of their safety manual to Tesla Exploration Ltd area HS

    representative and have it approved before they will be allowed on a program.

    Comply with procedures listed in the contractors safety manual that which have been approvTesla Exploration Ltd HSE Manager

    To participate in the creation a hazard assessment form listing all of the hazards that was

    discovered during your phase of operation. Provide the time and resources for employees to do their job safely and effectively. To make available any field personnel on a program site to under go drug and alcohol testing

    the request of Tesla Exploration Ltd Management, HSE Personnel, or the Project Manager or

    Crew Manager after any incident or accident on the project. Investigate any incidents, accidents or near misses that Teslas HSE Manager requests and as

    them with such an investigation. Assist in the creation of all site specific ERPs and ensure all employees have a project approved ERP

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    TESLA EXPLORATIONS HSE MANUAL 2010

    WORKER RESPONSIBILITIES

    Take reasonable care to protect your own health and safety and that of other workers. To abide by the following:

    Following safe work procedures Complying with rules and regulations Wearing and maintaining appropriate personal protective equipment Participating in training programs, safety and tailgate meetings. Becoming thoroughly familiar with Tesla Exploration Ltd safety policies Refuse work that poses imminent danger. (Sec. 27 OH&S Act) Report unsafe acts, unsafe conditions or equipment, and correct them. Report an accident, near misses, injuries, and illnesses. Always conduct yourself in a professional manner in dress and conduct

    VISITORS RESPONSIBILITY

    Take care to protect your own health, safety, and that of other workers. To cooperate with Tesla by:

    Following safe work procedures. Complying with rules and regulations. Wearing and maintaining appropriate personal protective equipment. Participating in training programs that the Tesla Exploration Service Inc. might put in place for y

    benefit.

    To cooperate fully with field personnel that is in charge of your area of visitation. (Example: Staboss when in staging, drill push when with the drills etc.)

    To complete a visitor orientation before you go into the field or visit a work sites.

    MEDIC RESPONSIBILITIES

    To provide competent care to the best of their ability and within their scope of practice and medicresponsibilities.

    To communicate with line management and the crew as to their qualifications and the type of medicaconditions that they are qualified to provide.

    To work with HSE Advisor and Line Management on the creation and maintaining of the ERP and anadditions or changes to the emergency response assessment

    To keep an accurate and up to date log of all medical treatments and forward this to HSE Advisor of project

    To keep an accurate count of all medical supplies that conforms to the requirements for the operationthe requirements of the emergency response assessment

    To comply with the requirements of Tesla Exploration Ltd Contractor Requirements To provide assessments for patient care such as need for transport, accompaniment, etc. Medics are forbidden to hand off patient care to a lesser qualified person unless exhausted, unable to

    continue care, or is required to attend to multiple patients.

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    TESLA EXPLORATIONS HSE MANUAL 2010

    SAFETY ADVISOR RESPONSIBILITIES

    To advise crew or project manager on HSE compliance issues To ensure completion of all HSE related paperwork and reporting requirements To educate all workers on HSE related issues To ensure compliance to all federal, state, provincial or other governmental agency laws, regulations,

    best practices

    To assist crew or project management in the safe operation of the crew or contractors To ensure competency, orientation, and training requirements are met In the absence of a Tesla Exploration Ltd. HSE Advisor, the P.M., R.C.M., Advance Man

    Drill Push, or whoever is in charge of the crew will become the HSE (Health Safety andEnvironment) Representative and will assume all the responsibilities of this position.

    At no time should any work site be without an HSE Representative. The crew must beadvised of who the designated HSE Representative is.

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    TESLA EXPLORATIONS HSE MANUAL 2010

    RESPECTFUL WORKPLACE

    EXPLANATION AND PROCEDURES

    Purpose:The purpose of this policy is to ensure employees of their right to work in an envirofree from violence, discrimination and harassment, and to be treated with dignity and respectpolicy is to clarify what is meant by violence and harassment and to outline the processes for resoThis policy underlines the seriousness of violence and harassment in the workplace and urg

    employees to work toward its elimination either as a participant or as an observer. There

    acceptable level of violence or harassment at this company. All Tesla employees are responsibstopping unwelcome behaviour that is brought to their attention, maintaining an awareness of

    behaviour is appropriate, and acquainting themselves with the Respectful Workplace polic

    procedures. Our employees are advised to consult a health professional for treatment or refeexposed to workplace violence, should they feel in any way that our in house services are inadequ

    not appropriate to their needs.

    MANAGEMENTS RESPONSIBILITIES: The management of this company is respoand accountable for eliminating workplace harassment, and for ensuring that there is emp

    education about harassment in the workplace. Management is committed to developing and info

    employees about Tesla policies and procedures for handling of complaints of harassment, cond

    investigations, and liaising with legal counsel. Management will take appropriate action wcomplaint is filed or if harassment is believed to be taking place.

    Application of This Policy: This policy shall apply to all Tesla (including affiliates or rcompanies) buildings and work sites.