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2017 Indigenous Relations Report Strengthening our Core People & Communities

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2017 Indigenous Relations Report

Strengthening our Core

People & Communities

Contents

1 Letter from Our CEO

2 Our Commitment to Indigenous Peoples

3 Supporting Business

4 Employment and Training

6 Community Investments

About CiveoCiveo (NYSE:CVEO) provides productive, balanced lifestyles for those who live and work away from home. As one of the world’s largest integrated providers of workforce accommodations, we bring the extensive experience of owning and/or operating over 32,000 rooms across properties in Canada, Australia and the U.S.

For over 40 years, Civeo has refined its scalable approach to housing hundreds or thousands of workers at a time for both long-term and temporary solutions. Our full suite of accommodation services also includes catering, facility management, water systems and logistics services.

Our belief is that a well-rested guest with a balanced lifestyle will be more productive at work – making your accommodations provider a key partner in the success of your operation.

Our properties are the next best thing to home – safe, comfortable and efficient living environments where guests can rest and recharge.

Letter from Our CEO

As we look back on 2017, we are reminded of the many people, partners and organizations who have come together to actively contribute their inspiration, leadership and insight to further our commitment to the Indigenous community. The collective achievements that are presented in this report are a result of the open and active collaboration between our partners, local communities, Indigenous businesses and our people.

PAR CertificationAs a result of our shared focus in 2017, Civeo proudly maintained its Silver Progressive Aboriginal Relations (PAR) certification from the Canadian Council for Aboriginal Business (CCAB). As voted on by members of the Indigenous business community, this is an objective measure of Civeo’s commitment to working with Indigenous communities for mutual benefit. This certification directly aligns with Civeo’s overarching value of maintaining a high level of corporate social responsibility with an emphasis on Indigenous relations and community engagement.

Supporting Indigenous Businesses In 2017, we continued to expand our supplier network of Indigenous companies for contracted services. Our ability to provide more opportunity to qualified Indigenous businesses was due in part to the development of new community relationships and increased capacity within the businesses associated with our long-term partnerships.

Employment and Career Development We are also encouraged to see our training and recruitment programs contributing to employment opportunities and career development. Through recruitment events, culinary arts training, educational assistance and internship programs, we remain committed to growing Indigenous employment across the many disciplines we rely on to deliver our services.

As we reflect on our shared accomplishments in 2017, I would like to offer my thanks to our Indigenous partners and many of the dedicated employees that each contribute in meaningful ways to our shared purpose.

Sincerely,

Bradley J. Dodson President & CEO

2017 Giving by the Numbers

C$46 Million Cumulative Indigenous business procurement spend since 2015

17 Number of Indigenous businesses contracted in 2017

15 Number of community partnerships in western Canada

7.6% Percentage of Civeo workforce who identify as Indigenous

9 Number of training participants in 2017

6 Number of Indspire scholarships awarded

2017 Indigenous Relations Report // 1

As many of Civeo’s projects in Canada operate in traditional territories, we work closely with Indigenous communities to explore mutually beneficial investment, employment and business opportunities.

Civeo’s commitment to Indigenous Peoples is guided by the following principles:

1. Civeo believes in the inherent rights of all Indigenous Peoples to: maintain social, cultural and spiritual identities; exercise jurisdiction over traditional lands; pursue sustainable economic prosperity.

2. Civeo will purposefully inform and educate employees, customers, suppliers and community stakeholders of the rights of self-determination of Indigenous Peoples as declared in the United Nations Declaration on the Rights of Indigenous Peoples.

3. Civeo acknowledges the reliance of its business on the consent of, and partnership with, Indigenous Peoples.

4. Civeo is committed to the principles of the Canadian Council of Aboriginal Business’ (CCAB) Progressive Aboriginal Relations (PAR) program and to:

• Reach and maintain 15% of its Canadian workforce from Indigenous communities.

• Develop and maintain meaningful business partnerships where revenues and profits are shared.

• Create opportunities, expand capacity and build partnerships with Indigenous- owned businesses.

• Make sustainable and meaningful contributions to communities and programs to support education and scholarship opportunities for the next generation of Indigenous leaders.

Through this commitment, Civeo will adhere to the highest standards of ethical business practices and open and transparent operations with the goal of unlocking opportunities for both Civeo and Indigenous Peoples.

Our Commitment to Indigenous Peoples

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PAR Silver Level Certification Civeo proudly maintains a Silver Level certi-fication in the Canadian Council for Aboriginal Business (CCAB) Progressive Aboriginal Relations (PAR) program.

The CCAB’s mission is to foster sustainable relations between First Nations, Inuit and Métis people and the Canadian business community.

The CCAB’s PAR initiative is an independent certification program designed to validate corporate performance in Indigenous relations for its participating members. Since the program’s introduction in 2001, PAR remains the premier corporate social responsibility program with an emphasis on Indigenous relations.

A Highly Coveted DesignationCiveo’s Silver Level PAR certification status is noteworthy because it is supported by an unbiased, independent, third-party verification of company reports, and awarded by a jury comprised of Indigenous business people.

As described by the CCAB, the certification signals to communities that PAR-status companies are:

• Good business partners,

• Great places to work, and

• Committed to prosperity in Indigenous communities.

Indigenous Business Procurement Exceeds $13 Million in 2017In 2017, Civeo purchased over C$13.5 million in goods and services from the Indigenous business community in Canada, adding to a cumulative spend of over C$46 million since 2015.

While market conditions in 2017 resulted in an overall reduction of purchasing activity, this commitment represented more than 12% of Civeo’s total Canadian procurement value.

A Principled ApproachThe underlying principle of Civeo’s Indigenous Procurement Policy is to support the long-term economic interests of Indigenous Peoples by promoting the participation of qualified Indigenous businesses to work with us on capital projects and ongoing operations.

Proactive Engagement of the Indigenous Business Community As part of our vendor engagement process, Civeo meets with community stakeholders including Indigenous-owned businesses, joint ventures and economic development offices to offer information on available contract opportu-nities and benefit or relationship agreements.

We then prequalify and award contracts to Indigenous businesses and PAR-certified com-panies through competitive sourcing events for goods and services required for Civeo projects.

Spending by Category Provided in the sidebar is an overview of the percentage of contracts (by dollar value) awarded to Indigenous businesses for each of Civeo’s largest categories of operational procurement.

Supporting Business

2017 Canada Indigenous Spending

99% Water and waste water hauling

97% Security services

24% Snow removal

18% Staff transportation

12% Goods and services procurement

6% Garbage disposal

2017 Indigenous Relations Report // 3

Growing Indigenous Employment to 15%One of the principles outlined in the Canadian Council of Aboriginal Business’ (CCAB) Pro-gressive Aboriginal Relations (PAR) program is for companies to maintain 15% of its Canadian workforce from Indigenous communities.

To align with the PAR principle, in 2015, Civeo developed a three-year plan to increase its rate of Indigenous employment to 15% by 2019. By year-end 2017, 7.9% of our employee population in Canada self-identified as being Indigenous.

Unlike previous years where growth required a heightened focus on recruitment and training to support the expansion of our business, market conditions in western Canada in 2017 resulted in an overall reduction in our workforce, and with it, fewer positions to fill in the organization.

While our ability to improve our Indigenous employment rate was challenged in 2017, our resolve to make sustained progress toward our 15% stretch goal remains.

Focus Areas To achieve our 15% goal, our Indigenous Employment Strategy focuses on three key activities:

1. Community Outreach Generate awareness in the community for Civeo, our industry and the careers that can be built within the occupations that support it.

2. Pro-active Recruitment Hold hiring fairs within the community, providing visibility and access to those who may not be able to travel to events being held in larger urban centres.

3. Training and Development Partnering with government and industry to help those interested in culinary, hospitality and water treatment trades to develop the skills they need to enter the workforce.

From culinary arts training to summer internships, Civeo remains committed to its investment in training initiatives that provide prospective Indigenous employees with the necessary skills for employ-ment. Highlighted below are some of the programs supported by Civeo throughout 2017.

NAIT Culinary Arts Training Program In partnership with Louis Bull First Nation and Northern Alberta Institute of Technology (NAIT), Civeo launched a Camp Cook Program aimed to train and employ students from Indigenous communities in the workforce accommodations industry.

The objective of the program is to give partic-ipants a real-world, hands-on experience that allows them to practice cooking skills under the supervision of a project instructor. Civeo provides the students with an industrial kitchen, workspace and experience working in the field. After completion of the six-month program, participants are fully qualified to work as a cook apprentice.

Employment and Training

Boundary Lodge Achieves 30% Indigenous Employment RateAn example of Civeo’s commitment to Indigenous training and recruitment can be seen in its Boundary Lodge location. An Indigenous employment rate of 30% was achieved in 2017, with 16 of 55 employees identifying as Indigenous. This success was achieved through our working relationship with our partner, the Duncan’s First Nation.

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Four students were enrolled in the Camp Cook Program in 2017, seeking to ready themselves for careers in the culinary trades.

Mikisew Water Treatment and Wastewater Treatment Training ProgramIn partnership with the Mikisew Cree Nation, Civeo launched an Indigenous recruitment program for Water/Wastewater Treatment Technicians. The focus of this initiative was to provide employment and on-the-job training while Level 1 Water/Wastewater certification was completed. We believe this initiative presents exciting potential in a growth industry.

Summer Internship ProgramCiveo’s summer internship program is designed to provide students with exposure to a variety of business and operations disciplines as they contemplate their future career aspirations.

Under the mentorship of Civeo’s Manager of Indigenous Employment Strategies, Krista Laboucane, Civeo welcomed high- school students Sierra and Brianna from the Alexander First Nation to participate in the 2017 summer program.

Both students gained insightful work experience providing assistance in a number or areas of the organization including office management, safety administration, human resources manage-ment and community engagement and gave them the opportunity to develop important skills in Microsoft Word, Outlook and Excel.

Cultural Awareness InitiativesTo further our commitment to ensuring an inclusive work culture, Civeo developed and implemented several initiatives aimed at creating more awareness for Indigenous culture in the workplace. Examples of these initiatives in 2017 included:

• Indigenous Awareness courses to provide historic context, celebrate the community’s contributions and heritage and to discuss issues facing Indigenous Peoples.

• Consultation with employees on establishing cultural rooms and tipis at various locations.

• Establishment of Indigenous employee committees at various lodges to manage the implementation of programs, and to address emerging issues and concerns.

• Celebration of Canada’s National Indigenous People’s Day with activities across the organization.

First Nation’s performer, Adrian LaChance, receiving a protocol offering of a broadcloth and braid of sweetgrass at a Civeo cultural event.

2017 Indigenous Relations Report // 5

Community Investments

Each year, we are inspired by the grassroots programs that directly benefit people and causes in our partner communities. In 2017, our active participation in community-based initiatives focused on youth education and cultural events.

Indspire – Building Brighter FuturesThe Indspire Program provides Indigenous students with financial assistance to pursue post-secondary education. In the third year of a three-year pledge to the Building Brighter Futures scholarship program, Civeo proudly supported Indspire’s mission of investing in the education of Indigenous Peoples for the long-term benefit of these individuals, their families and their communities. In 2017, Civeo donated $16,800 supporting six students pursuing post-secondary education in Western Canada.

Aaron Grant, a psychology student in Northern British Columbia, expressed his appreciation for the opportunity that Civeo, in partnership with Indspire, provided him:

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“I would like to thank Civeo and Indspire for providing the support I require to fulfill my goals and aspirations. With your generous support, I will be able to help families in crisis

– especially the families living in rural communi-ties. As I spent an abundance of time living off the grid as a child, I have witnessed the effects of mental illnesses that we left untreated. I am here to change that.” – Aaron Grant, Student

Helping Hands School ProgramIn partnership with Mikisew Cree Nation, Civeo donated $3,000 to the Helping Hands School Program at Northlands School in Fort Chipewyan. This youth program is intended to encourage school attendance and support through after- school programming.

Civeo’s McClelland Lake Lodge employees inspired this initiative by using the funds from the lodge’s recyclable bottles, which were then matched by our Mikisew Partner and Civeo’s corporate offices.

Duncan’s First Nation Educational SupportIn collaboration with Duncan’s First Nation (DFN), Civeo supplied backpacks filled with school supplies for approximately 40 on-reserve students at various grade levels. In addition, at DFN’s Treaty Days, a lucky student received a personal iPad intended to help them achieve their educational goals.

“The partnership between Civeo and Duncan’s First Nations is based upon mutual respect. Civeo has demonstrated a strong and clear understanding of the principles of consulta-tion and consent that are required in order to operate within the Nation’s territory” – Virginia (Martha) Gladue, Chief, Duncan’s First Nation

Pemmican DaysFor the third year in a row, Civeo provided sponsorship support and active participation in the Saulteau First Nation’s Pemmican Days, an event enjoyed by more than 400 guests.

2017 Indigenous Relations Report // 7

Community Spotlight on Fort McKay Métis Fort McKay is located in the heart of Alberta’s oil sands, 50 km north of Fort McMurray. Similar to other traditional lands in the area, the oil sands development has transformed the community, shifting their lifestyle from a land-based economy to one that leverages developments in the energy sector.

Since 2009, Civeo has enjoyed a mutually- beneficial partnership with McKay Métis Group Ltd. (MMG), a social enterprise owned and operated by the Fort McKay Métis community.

A shuttle contract set up by Civeo in 2009 led to the founding of the McKay Métis Group Ltd. The contract was set up to shuttle workers back and forth from oil sands operations to Civeo lodge properties. The community did not have the resources to operate a shuttle service but the President at the time, Ron Quintal, believed so strongly in the benefits of the partnership that he took out a personal loan to purchase the necessary shuttle vans.

Since then, the relationship between McKay Métis Group and Civeo has continued to grow into additional business opportunities including snow removal, catering and housekeeping. This includes Buffalo Métis Catering (BMC), a joint-venture partnership with Civeo and three Métis locals from the communities of Fort McKay, Fort Chipewyan and Conklin. The business is a significant revenue generator for the community providing catering and housekeeping services for Civeo’s lodges in the oil sands region.

“We owe our success to Civeo,” McKay’s current CEO, Dwayne Roth states. “We are looking forward to helping Civeo grow even more in years to come. We are genuine partners – when they grow, we grow.”

As a community-owned company, McKay Métis Group invests 100% of its profits back into the community, funding essential services such as youth programing, social work and community infrastructure.

Going forward, McKay Métis Group hopes to leverage their partnership with Civeo to expand the business in the region.

National Indigenous People’s DayIn 1995, Canada’s Royal Commission on Aborig-inal Peoples recommended the designation of a day to recognize the unique heritage and diverse cultures of Canada’s First Nations, Inuit and Métis people. A year later, then Governor General of Canada, Romeo Leblanc, announced the proclamation declaring June 21 of each year as National Aboriginal Day.

The date itself has significant meaning. For generations, many Indigenous Peoples and communities have celebrated their culture and heritage on or near this day as it coincides with the summer solstice as the longest day of the year.

Canada’s Prime Minister, Justin Trudeau, has highlighted the importance of this day to the country.

“Every year, we join together on this day to recognize the fundamental contributions that First Nations, Inuit and the Métis Nation have made to the identity and culture of all Canadians. The history, art, traditions and cultures of Indigenous Peoples have shaped our past, and continue to shape who we are today.”

Fort McKay Métis Group CEO, Dwayne Roth

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In this spirit, Civeo is proud to actively celebrate National Indigenous People’s Day each year with employee events planned across the organization. In 2017, Civeo’s Edmonton employees hosted Jenna Broomfield to share her Inuit heritage. Born and raised in the small community of North West River Nunatsiavut/Labrador, Jenna is an accomplished law student and a renowned Inuit throat singer, having performed this traditional form of music around the world.

Civeo also celebrated at pow-wow festivals with our partner communities, and at our lodges with a variety of different Indigenous entertainers, including national drummers, dancers and guest speakers.

National Indigenous People’s Day in Edmonton – Jenna Broomfield

National Indigenous People’s Day at our Wapasu Creek Lodge

2017 Indigenous Relations Report // 9

Edmonton3790 98th Street NWEdmonton, Alberta T6E 6B4 Canada

Calgary Altius Centre500 – 4th Avenue SW Suite 2610Calgary, Alberta T2P 2V6 Canada www.civeo.com

FPO