<SEC-DOCUMENT>0001173382-18-000008.txt : 20180531
<SEC-HEADER>0001173382-18-000008.hdr.sgml : 20180531
<ACCEPTANCE-DATETIME>20180531130948
ACCESSION NUMBER:		0001173382-18-000008
CONFORMED SUBMISSION TYPE:	SD
PUBLIC DOCUMENT COUNT:		2
<RULE>
<RULE-NAME>13p-1
<ITEM>
<ITEM-NUMBER>1.01
<ITEM-PERIOD>20171231
</ITEM>
</RULE>
FILED AS OF DATE:		20180531
DATE AS OF CHANGE:		20180531

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:		18870837

	BUSINESS ADDRESS:	
		STREET 1:		8585 COTE DE LIESSE
		CITY:			ST-LAURENT
		STATE:			A8
		ZIP:			H4T 1G6
		BUSINESS PHONE:		514-341-6780

	MAIL ADDRESS:	
		STREET 1:		8585 COTE DE LIESSE
		CITY:			ST-LAURENT
		STATE:			A8
		ZIP:			H4T 1G6
</SEC-HEADER>
<DOCUMENT>
<TYPE>SD
<SEQUENCE>1
<FILENAME>formsdsignedmay31-18.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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  <td valign=bottom width=35% style="padding:0in 0in 0in 0in;">
  <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>
 <td valign=bottom width=35% 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;">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>
  </td>
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<tr>
  <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;">(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 H4T 1G6</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;">Mark Hounsell, 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, 2017.</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;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Section 1&#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;1.01 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 1.01 &#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>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:100.0%;">
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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>
<tr>
  <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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  <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>
<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;">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 face="Times New Roman" lang=EN-US style="font-size:12.0pt;">/s/ Mark Hounsell</font></p>
  </td>
 <td valign=bottom width=6% style="padding:0in 0in 0in 0in;">&nbsp;</td>
 <td valign=top width=28% style="border-bottom:solid windowtext 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;">Date: May 31, 2018</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: Mark Hounsell</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>
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  <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: &#160; General Counsel, Chief Compliance
  Officer and Corporate 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>
</table></div>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-align:justify;"><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 face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></b></p>





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<TYPE>EX-1.01
<SEQUENCE>2
<FILENAME>formsdexhibitmay31-18clean.htm
<DESCRIPTION>EXHIBIT 2.01
<TEXT>

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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 1.01</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, 2017 to December 31, 2017 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 its products may have
originated in the Covered Countries, or if it is 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;">The Report is not audited by an independent private sector auditor
in reliance on SEC guidance to the effect that the requirement of such an audit
has been stayed except if the registrant elects to describe its products as
&#8220;DRC conflict-free&#8221; in its Conflicts Minerals Report.</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 flight
simulator manufacturing business, the supply chain with respect to CAE&#8217;s
products is complex, and includes many third parties 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
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 Responsible
Minerals Initiative (&#8220;RMI&#8221;) (formerly the Conflict-Free Sourcing 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 products, as well as
supplier due diligence. &#160;The template was developed to facilitate disclosure
and communication of </font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">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:&#160; </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 plating, cable solder and a special application tungsten
     alloy counterweight.</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 RMI 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 3TG, to provide us with information about
the source of potential 3TG 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:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">Since 2013, CAE has
put in place and executed a formal Conflict Minerals program by communicating
its Conflict Minerals Policy to its suppliers and conducting supply-chain
surveys to determine the reasonable country of origin of 3TG used in its
products. CAE has established a yearly refresh process by which it continues to
survey its suppliers on the source of 3TG and continues to verify smelters
reported in supplier surveys for participation in the RMI&#8217;s flagship program,
the Responsible Minerals Assurance Process (&#8220;RMAP&#8221;, formerly the Conflict-Free
Smelter Program) as conformant or active. CAE utilizes supplier information to
create a CAE product Conflict Minerals Reporting Template. CAE has suspended or
terminated its business relationship with certain suppliers who failed to
respond or provide complete responses to the supply-chain survey.</font></p>

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

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">For 2017, CAE continued to monitor the use of 3TG in its
products. CAE refreshed the supply-chain survey with its suppliers in support
of its reasonable country of origin inquiry. In addition, </font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">CAE continued to verify the reported smelters&#8217; participation in the RMAP. While some suppliers indicated that some of
the smelters in their supply chain source from the Covered Countries, these
were reported as being compliant with the RMAP.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">&nbsp;</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;page-break-after:avoid;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 has reasonably determined that while some of the Conflict
Minerals necessary to the functionality or production of its products </font><font color=black face="Times New Roman" lang=EN-US style="font-size:12.0pt;">originated from a Covered Country, CAE has no reason to
believe that any of such Conflict Minerals directly or indirectly financed or
benefited armed groups.</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 supply-chain survey.</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 its smelters are in the RMAP &#8211; validated as conformant
     or active. &#160;</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>
</ul>




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