<SEC-DOCUMENT>0001173382-15-000010.txt : 20150527
<SEC-HEADER>0001173382-15-000010.hdr.sgml : 20150527
<ACCEPTANCE-DATETIME>20150527090847
ACCESSION NUMBER:		0001173382-15-000010
CONFORMED SUBMISSION TYPE:	SD
PUBLIC DOCUMENT COUNT:		2
<RULE>
<RULE-NAME>13p-1
<ITEM>
<ITEM-NUMBER>1.01
<ITEM-PERIOD>20140101
</ITEM>
<ITEM>
<ITEM-NUMBER>1.02
<ITEM-PERIOD>20140101
</ITEM>
</RULE>
FILED AS OF DATE:		20150527
DATE AS OF CHANGE:		20150527

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CAE INC
		CENTRAL INDEX KEY:			0001173382
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		SD
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31402
		FILM NUMBER:		15891046

	BUSINESS ADDRESS:	
		STREET 1:		2025 LOGISTICS DRIVE
		CITY:			MISSISSAUGA
		STATE:			A6
		ZIP:			L5S 1Z9
		BUSINESS PHONE:		514-341-6780

	MAIL ADDRESS:	
		STREET 1:		8585 COTE DE LIESSE, CP 1800
		STREET 2:		DEPT. 04
		CITY:			ST-LAURENT, QUEBEC
		STATE:			A6
		ZIP:			H4L 4X4
</SEC-HEADER>
<DOCUMENT>
<TYPE>SD
<SEQUENCE>1
<FILENAME>formsdmay26-15.htm
<DESCRIPTION>FORM SD
<TEXT>

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<p align=center style="margin:0in;margin-bottom:12.0pt;text-align:center;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:18.0pt;">UNITED
STATES<br>
SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p align=center style="margin:0in;margin-bottom:12.0pt;text-align:center;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:16.0pt;">Washington, D.C. 20549</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:18.0pt;">FORM SD</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:16.0pt;">Specialized Disclosure Report</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.25in;margin-left:0in;margin-right:0in;margin-top:.25in;text-align:center;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:18.0pt;">CAE INC.</font></b></p>

<div align=center>

<table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:75.0%;">
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  <p style="margin:0in;margin-bottom:.0001pt;text-indent:23.1pt;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Canada</font></b></p>
  </td>
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  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">1-31402</font></b></p>
  </td>
 <td valign=bottom width=30% style="padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Not Applicable</font></b></p>
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  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman" lang=EN-US style="font-size:11.0pt;">(State of incorporation )</font></p>
  </td>
 <td valign=top width=35% style="padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman" lang=EN-US style="font-size:11.0pt;">(Commission</font></p>
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman" lang=EN-US style="font-size:11.0pt;">File Number)</font></p>
  </td>
 <td valign=top width=30% style="padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman" lang=EN-US style="font-size:11.0pt;">(IRS Employer</font></p>
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman" lang=EN-US style="font-size:11.0pt;">Identification No. )</font></p>
  </td>
 </tr>
</table>

</div>

<p align=center style="margin:0in;margin-bottom:.0001pt;margin-top:12.0pt;text-align:center;"><b><font color=black face="Times New Roman" lang=FR-CA style="font-size:12.0pt;">8585 C&#244;te-de-Liesse, Saint-Laurent, Qu&#233;bec,
Canada H3Z 2G4</font></b></p>

<p align=center style="margin:0in;margin-bottom:12.0pt;text-align:center;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">(Address of principal executive offices) (Postal
Code)</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Hartland Paterson, telephone: (514) 734-5779</font></b></p>

<p align=center style="margin:0in;margin-bottom:12.0pt;text-align:center;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">(Name and telephone number of the person to
contact in connection with this report.)</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Check the appropriate box to indicate the rule
pursuant to which this form is being filed, and provide the period to which the
information in this form applies:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font color=black face=wingdings lang=EN-US style="font-size:12.0pt;">x</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> Rule 13p-1 under the Securities Exchange Act (17 CFR
240.13p-1) for the reporting period from January 1 to December 31, 2014.</font></p>








<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</div><a name="page_2"></a><p style="margin:0in;margin-bottom:12.0pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:12.0pt;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Section I&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Conflict Minerals Disclosure</font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Item 1.01 Conflict Minerals Disclosure and Report, Exhibit</font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">A copy of CAE INC.&#8217;s Conflict Minerals Report is
filed as Exhibit&nbsp;2.01 hereto and is publicly available at</font><i><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">www.cae.com. </font></i></p>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Item 1.02 Exhibit</font></b></p>

<p style="margin:0in;margin-bottom:24.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">CAE has filed, as an exhibit to this Form SD,
the Conflict Minerals Report required by Item&nbsp;1.01</font><font color=black face=arial,sans-serif lang=EN-US style="font-size:12.0pt;">. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Section 2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Exhibit</font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Item 2.01 Exhibit</font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">The following exhibit is filed as part of this
report:</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Exhibit 2.01 &#8212; Conflict Minerals Report as
required by Item 1.01 and 1.02 of this Form.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>




<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>

<HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</div><a name="page_3"></a><p align=center style="margin:0in;margin-bottom:12.0pt;text-align:center;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">SIGNATURES</font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
duly authorized undersigned.</font></p>

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  <td width=7% style="padding:0in 0in 0in 0in;">&nbsp;</td>
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 <td width=6% style="padding:0in 0in 0in 0in;">&nbsp;</td>
 <td width=28% style="padding:0in 0in 0in 0in;">&nbsp;</td>
 </tr>
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  <td colspan=2 valign=bottom width=66% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">CAE INC.</font></b></p>
  </td>
 <td valign=bottom width=6% style="padding:0in 0in 0in 0in;">&nbsp;</td>
 <td valign=bottom width=28% style="padding:0in 0in 0in 0in;">&nbsp;</td>
 </tr>
<tr>
  <td valign=bottom width=7% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=59% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=6% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=28% style="padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
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  <td valign=bottom width=7% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=59% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=6% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 <td valign=bottom width=28% style="padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>
  </td>
 </tr>
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  <td valign=bottom width=7% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">By:</font></p>
  </td>
 <td valign=bottom width=59% style="border-bottom:solid black 1.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">/s/ Hartland Paterson</font></p>
  </td>
 <td valign=bottom width=6% style="padding:0in 0in 0in 0in;">&nbsp;</td>
 <td valign=top width=28% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Date: May 26, 2015</font></p>
  </td>
 </tr>
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  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Name: Hartland
  Paterson</font></p>
  </td>
 <td valign=bottom width=6% style="padding:0in 0in 0in 0in;">&nbsp;</td>
 <td valign=bottom width=28% style="padding:0in 0in 0in 0in;">&nbsp;</td>
 </tr>
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  <td colspan=2 valign=bottom width=66% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;margin-left:.5in;text-indent:-.5in;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Title:   General Counsel, Chief Compliance
  Officer and Secretary</font></p>
  </td>
 <td valign=bottom width=6% style="padding:0in 0in 0in 0in;">&nbsp;</td>
 <td valign=bottom width=28% style="padding:0in 0in 0in 0in;">&nbsp;</td>
 </tr>
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<DOCUMENT>
<TYPE>EX-1.01
<SEQUENCE>2
<FILENAME>formsd-exhibitmay2615.htm
<DESCRIPTION>EXHIBIT 2.01 CONFLICT MINERALS REPORT
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<p align=right style="margin:0in;margin-bottom:.0001pt;text-align:right;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Exhibit 2.01</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Conflict
Minerals Report of CAE Inc. in Accordance with Rule 13p-1 under the Securities
Exchange Act of 1934</font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">This Conflict Minerals Report (this &#8220;Report&#8221;) </font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">of CAE Inc. (&#8220;CAE&#8221;) </font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">has been prepared for the
reporting period from January 1, 2014 to December 31, 2014 pursuant to Rule
13p-1 and Form SD (the &#8220;Rule&#8221;) promulgated under the Securities Exchange Act of
1934, as amended. &#160;The Rule imposes certain reporting obligations on SEC
registrants who manufacture or contract to manufacture products containing
conflict minerals which are necessary to the functionality or production of
their products. &#160;&#8220;Conflict Minerals&#8221; are defined as cassiterite,
columbite-tantalite (coltan), gold, wolframite, or their derivatives, which are
limited to tantalum, tin and tungsten and gold (&#8220;3TG&#8221;) for the purposes of this
assessment. &#160;The &#8220;Covered Countries&#8221; for the purposes of the Rule are the
Democratic Republic of the Congo, the Republic of the Congo, the Central
African Republic, South Sudan, Uganda, Rwanda, Burundi, Tanzania, Zambia and
Angola.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">If a registrant has reason to believe that any of the Conflict Minerals
necessary to the functionality or production of their products may have
originated in the Covered Countries, or if they are unable to determine the
country of origin of those conflict minerals, then the registrant must exercise
due diligence on the conflict minerals&#8217; source and chain of custody and submit
a Conflict Minerals Report to the SEC that includes a description of those due
diligence measures.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">This Report is not audited as the Rule provides that if a
registrant&#8217;s products are &#8220;DRC conflict undeterminable&#8221; for the 2014 reporting
period this Report is not subject to an independent private sector audit.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">This Report has been prepared by management of </font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">CAE</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">. &#160;The information includes the activities of all
majority-owned subsidiaries and variable interest entities that are required to
be consolidated. &#160;</font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">As a company in the simulator
manufacturing business, the supply chain with respect to CAE&#8217;s products is
complex, and there are many third parties in the supply chain between the
ultimate manufacturer of the products and the original sources. &#160;CAE is several
levels removed from the mining of Conflict Minerals and does not make purchases
of raw ore or unrefined Conflict Minerals and makes no purchases in the Covered
Countries. </font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Due Diligence Process</font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">CAE undertook due diligence to determine the Conflict
Minerals status of the necessary Conflict Minerals and 3TG used in components
for manufacturing CAE&#8217;s products. &#160;These due diligence measures took into
account the framework in The Organisation for Economic Co-operation and
Development (&#8220;OECD&#8221;) Due Diligence Guidance for Responsible Supply Chains of
Minerals from Conflict-Affected and High-Risk Areas, an internationally
recognized due diligence framework.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">CAE&#8217;s due diligence measures were based on the
Electronic Industry Citizenship Coalition (&#8220;EICC&#8221;) and Global e-Sustainability
(&#8220;GeSI&#8221;) initiative with the smelters and refiners of conflict minerals who
provide those conflict minerals to our suppliers. &#160;The conflict minerals survey
template contains questions about the origin of conflict minerals included in
their </font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">products, as well as supplier due diligence. &#160;The
template was developed to facilitate disclosure and communication of
information regarding smelters that provide material to a company&#8217;s supply
chain. &#160;It also includes questions regarding a supplier&#8217;s conflict-free policy,
engagement with its direct suppliers, and a listing of the smelters the
supplier and its suppliers use.</font></p>
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<p style="margin:0in;margin-bottom:6.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">CAE&#8217;s due diligence measures included:</font></p>

<ul type=disc style="margin-bottom:0in;margin-top:0in;">
 <li style="margin:0in;margin-bottom:6.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Identifying CAE products that include any Conflict
     Minerals &#8211; in our case, small elements of 3TG found in computer circuit
     board solder and filaments.</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> </font></li>
</ul>

<p style="margin-bottom:6.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;text-indent:-.25in;"><font face=symbol lang=EN-US style="font-size:10.0pt;">&#183;</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Conducting a supply-chain survey with direct
suppliers of sub-components containing Conflict Minerals using the EICC/GeSI
Conflict Minerals Reporting Template to identify the smelters and refiners,
including a reasonable inquiry into the country of origin of the Conflict Minerals,
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">in order to ascertain the origin of the minerals </font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">used in components for manufacturing CAE&#8217;s products.</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">
</font></p>

<ul type=disc style="margin-bottom:0in;margin-top:0in;">
 <li style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">A review of each reporting template
     returned by our suppliers for completeness of information provided.</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> </font></li>
</ul>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">CAE is an indirect purchaser of </font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Conflict Minerals
</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">and </font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">we rely on suppliers within our supply
chain, whose components may contain 3TGs, to provide us with information about
the source of potential 3TGs contained in the components supplied to us. &#160;</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Our
due diligence measures provide reasonable, not absolute, assurance regarding
the source and chain of custody of </font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Conflict Minerals</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">.
&#160;Our due diligence processes seek data from our direct suppliers and those
suppliers seek similar information within their supply chains to identify the
original sources of the </font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Conflict Minerals</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">. &#160;Such
sources of information may produce inaccurate or incomplete information.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;page-break-after:avoid;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">For 2013, the vast majority of our
survey responses from our suppliers indicated that their products either did
not contain 3TGs or contained 3TGs which did not originate from the Covered
Countries. &#160;Five direct suppliers did not respond, or responded in an
incomplete fashion, to the supply chain survey.&#160; CAE suspended or terminated
its supplier business relationship with those suppliers which provided
incomplete survey responses or failed to respond to CAE&#8217;s supply-chain survey.&#160;
For 2014, CAE received responses from 100% of the suppliers surveyed, although
not all suppliers provided information sufficient to identify the source of the
3TG used in their products or materials.&#160; Each of the responding suppliers
indicated that the suppliers&#8217; smelters were in the Conflict-Free Smelter
Program &#8211; validated as compliant (conflict-free) or active (in process of
certification). &#160;The Conflict-Free Smelter Program is part of the Conflict-Free
Sourcing Initiative of the EICC and GeSI.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;page-break-after:avoid;text-align:justify;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Conclusion</font></b></p>

<p style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">After exercising the due diligence described
above, CAE does not have sufficient information to conclusively determine
whether or not all of its products qualify as &#8220;DRC conflict free,&#8221; as defined
under the Rule. &#160;Accordingly, CAE has reasonably determined that certain of
these products are &#8220;DRC conflict undeterminable,&#8221; as defined in the Rule. &#160;</font></p>


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<p style="margin:0in;margin-bottom:12.0pt;page-break-after:avoid;text-align:justify;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Risk
Mitigation and Future Due Diligence Measures</font></b></p>

<p style="margin:0in;margin-bottom:6.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">In the next compliance period, CAE intends on
enhancing the following steps to improve the information gathered from its due
diligence measures to further mitigate the risk that its limited but necessary
use of Conflict Minerals does not benefit armed groups. &#160;These steps include,
but are not limited to:</font></p>

<ul type=disc style="margin-bottom:0in;margin-top:0in;">
 <li style="margin:0in;margin-bottom:6.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Continuing to drive its suppliers to obtain
     current, accurate, and complete information about their smelters and
     refiners of Conflict Minerals.</font></li>
 <li style="margin:0in;margin-bottom:6.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Increasing participation in third-party
     programs to encourage further improvement and reliability in traceability
     programs.</font></li>
 <li style="margin:0in;margin-bottom:6.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Continuing to inform our suppliers of CAE&#8217;s
     corporate policy on responsible sourcing.</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> </font></li>
 <li style="margin:0in;margin-bottom:6.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Only carrying on business with suppliers
     who complete in a satisfactory fashion our supplier&#8217;s smelter surveys.</font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"> </font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Each responding supplier must
     indicate to CAE that the suppliers&#8217; smelters are in the Conflict-Free
     Smelter Program &#8211; validated as compliant (conflict-free) or active (in
     process of certification). &#160;The Conflict-Free Smelter Program is part of
     the Conflict-Free Sourcing Initiative of the EICC and GeSI.</font></li>
 <li style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">In the event that CAE confirms that a
     supplier has failed to cooperate sufficiently with a due-diligence
     investigation, fails to follow requests for remediation or has otherwise
     violated this policy, CAE shall take necessary actions, including without
     limitation, termination of business with such supplier by stopping new
     orders.</font></li>
 <li style="margin:0in;margin-bottom:12.0pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Engaging an external auditor to validate
     CAE&#8217;s processes for compliance with our Conflict Minerals Policy.</font></li>
</ul>

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