5th November 2012

To our board and management

I am pleased to confirm that SKA International Group Ltd reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Mike Douglas
President & CEO

SKA International Group Ltd actively supports the Universal Declaration of Human Rights. We will not support or carry out business with any countries or regimes where flagrant human rights abuses are known e.g. torture, politically moviated disapparances etc.

SKA International Group Ltd has a Dignity at Work Policy and is committed to ensuring that all our employees are treated fairly and with respect. SKA International Group will not tolerate victimisation, bullying or harassment.

Implementation
As we progress and expand our operations base internationally all efforts are made to ensure that countries we are operating in comply with the Universal Declaration of Human Rights.

SKA has a Grievance Procedure in place and is implemented right from the start during employee induction program.

Staff consultation is run where organisational changes are being implemented to ensure staff are timely and correctly informed and have an opportunity to influence outcomes.

SKA has a range of Human Resources policies which relect our pro-active stance on human rights including our Dignity at Work Policy, Equal Opportunities Policy.

Outcome
In the past year SKA has not been subect to any investigations, legal cases or incidents involving Human Rights.

SKA supports the ILO Core Conventions and will not do business with any organisation who uses forced or child labour.

All SKA employees are issued with a contract of employment which clearly states their terms and conditions including salary, benefits and compensation. All staff are issued with a HR Handbook signed and accepted by the staff on the first day. HR Handbook includes full ranges of rules and regulations which include grievance, disciplinary procedures, sexual harrasment and IT abuse.

SKA complies with all relevant health and safety legislation and provides a range of different safety related training to staff as appropriate to their job role.

SKA consults with staff on a continous basis. SKA holds a half yearly briefing to all employees around the sites. SKA holds a yearly review and conference on 1st week of December. In the yearly conference, all division heads are required to present their achievements, challenges and following year outlook. The President will give the overall company performance and achivements and will set new objectives and goals for the following year. The conference will end with the yearly thank you diner and dance.

SKA has a range of Human Resources Policies which support best practices in terms of labour and employment including an Equal Oppotunities Policy, Appraisal Procedure and Training

SKA runs a system of annual appraisals each year to identify personal development needs and training requirements for all which include local nationals where SKA is operating. SKA's training calendar focuses on Safety and Health related modules. SKA issue training calendar on February of the year. SKA staff are informed 2 months in advance of their training.

SKA staff are given free health and required vacinnation. SKA staff are given free cooked healthy menu. SKA provide free gym to all staff.

SKA has not been subject to any health and safety statutory notices or prosecutions in the last year.

SKA has implemented a comprehensive Enviromental Policy and committment last year. SKA will be embarking on a recycling campaign throughout the company. SKA plan 90% electonic i.e. e-approval, e-procurement, e-payroll, e-HR.

In the coming year SKA will be expanding our current environmental procedures so we have a full Environmental Management System in operation - this should help us reduce environmetal incidents, increase training to staff in environment matters, have a proper auditng system in place and make us better able to respond to any issues should they arise.

Educational programs for all staff. SKA will be conducting quartely environmental talks and seminars to all staff.

When procuring, Environmental will be one of the key deciding factor. SKA will support vendors who has got good and tangible environmental friendly tools and equipment.

SKA is committed to achieving the ISO 14000 certification by year 2015.

SKA will implement stringet seletion criterial for procurement. SKA vendors will be encourge to participate and comitted to Environmental friendly products. SKA will be building recycling water container are its operation sites.

SKA has not had any reportable enviromental incidents within the last year and has not been subject to any statutory notices or prosecutions.

SKA is compliant with the Bribery Act and does not participate in any corruption, bribery or extortion. SKA supports the UN Convention Against Corruption and does not operate in countries or with organisations who are corrupt.

As we expand into new international markets in this coming year briefings will be given to staff in relation to bribery and corruption to ensure our continuing integrity as an international business.

The Legal Division is ultimately responsible for anti-corruption within SKA and our Bribery Policy is inthe process of being reviewed at the current time. SKA will be briefing the policy during the yearly conference. Human Resources will be scheduling training and briefing to all staff in Quarter 2 2013.

In the Company Policy there is extensive guidance on the acceptance of gifts which is not permitted without reference to their reporting manager/supervisor.

SKA has not been involved in any legal cases, rulings or other events related to corruptions or bribery.

SKA is audited by external audit company.