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Pioneer Petroleums is proud to be a partner in GridSmartCity,™ Burlington Hydro’s initiative to begin transforming the electricity system of today into the smart grid of tomorrow. GridSmartCity includes a project to test an all-electric vehicle for fleet use. That’s where Pioneer comes in.

“Pioneer’s involvement in GridSmartCity exemplifies its commitment to renewable energy innovation, and its mandate to constantly search for innovative ways to enhance its customers’ retail experience and to differentiate its business in the marketplace,” explains Tim Hogarth, Pioneer Petroleums President & CEO.

An electric vehicle recharging station has been installed at Site 244 at 4499 Mainway in Burlington. The station will be used to charge Burlington Hydro’s new, all-electric, zero submission vehicle – the REV 300 ACX. It’s the first of its kind to be used in a commercial fleet in Canada and the first demonstration project studying the performance of an all-electric fleet vehicle in real-world conditions.

Electric vehicles have great potential for commercial fleet use because they operate from centralized hubs and usually travel within limited geographic ranges. The University

of Waterloo will be collecting and analyzing the project data including the performance of the charging station, which was made by Eaton Corporation.

The all-electric SUV’s lithium ion battery technology can quick-charge in 3.8 hours. A fast-charging system, which is under development will allow for a full charge in less than one hour. The REV (or Rapid Electric Vehicle) has a 160 kilometre range and travels up to 144 kilometres an hour. To learn more about the vehicle or the GridSmartCity initiative visit www.gridsmartcity.com.

Summer 2010

RetailerExPress

GridSmartCity™

Brad Duguid, Minister of Energy and Infrastructure, Province of Ontario (left) and Burlington Mayor Cam Jackson (right) celebrate the al l-electric vehicle's kick-off charge at Pioneer Petroleums.

The GridSmartCity SUV at the recharging station.

Retailer ExPress Summer 2010

Celebrates as Murray Hogarth Joins Business Hall of Fame

Pioneer

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Murray Hogarth with Cam Jackson (Mayor of Burlington)

Murray Hogarth, Executive Chairman of Pioneer Group Inc., and the company founder of Pioneer Petroleums was honoured as Burlington’s Entrepreneur of the Year on June 10th at a special gala event hosted by the Burlington Economic Development Corporation. Murray was also introduced as a much-deserved member of Burlington’s respected Business Hall of Fame. 500 people were in attendance for this celebration including Cam Jackson (Mayor of Burlington) and keynote speaker, Amanda Lang (Senior Business Correspondent CBC News). Congratulations Murray.

Murray’s Eight Secrets for Success as presented at the Entrepreneur of the Year Award dinner

Remember, your graduation 1. diploma is a passport to nothing – you must succeed on what you can do – not what they say you know. You must train yourself to recognize the opportunity for yourself out of the numerous ones that are always out there. You must think like an entrepreneur and look for the unmet needs which give you the opportunity to satisfy them.You must have the courage to act on it.2. Communicate good news and bad up-front and honestly.3. Be prepared to accept reasonable risks which you are confident you 4. can survive. These risks are mitigated by the confidence and vision you have for your company which must be reinforced with your employees.A successful company abides by the rule that they hire and keep only 5. the best people who have a strong work ethic and who will support your vision for the company.Be different, unique, and able to stand out from the crowd in your 6. appearance and marketing ideas.Maintain a flat lean organization in order to be the low cost operator. 7. Your business card at this stage should define you as a “Founder, CEO & Janitor” because you must be prepared to do everything.Install a sense of urgency in everything you and your employees do. 8. Fast decisions are a strategic advantage in a smaller company as many of your larger competitors are often managed by committee.

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www.pioneer.ca

* Adapted from Defusing Hostile Customers Workbook by Customer Service Expert Robert Bacal

ROAM Magazine is a free, Ontario-focused family-fun, adventure and travel magazine and it is a Pioneer exclusive!

This exciting new venture is designed to excite and

engage customers with the Pioneer brand. This free seasonal guide will be packed with easy-to-read, fun-filled destination ideas for affordable get-aways, seasonal events, day trips, excursions and adventure outings. Seventy-five thousand copies of ROAM will be distributed free at 130 Pioneer sites four times a year, beginning in Summer 2010.

Our mission is to help readers discover Ontario as a beautiful place and inspire them to Roam Ontario. It provides us with an affordable platform for connecting with customers, increasing

top-of-mind awareness, encouraging new trials and additional volume, all while offering clients an enjoyable and useful magazine at no cost -- just for being Pioneer customers.

The magazine also provides a highly effective and affordable advertising vehicle for our partners. “ROAM Magazine will be the voice of our brand and will enable us to connect our loyalty, partner programs and share information such as our Corporate Social Responsibility with our customers,” explains Geoff Hogarth, Director of Marketing. “There isn’t

anything else in the marketplace like ROAM Magazine, so we think it’s something our customers will notice and appreciate.”

The premier issue of ROAM Magazine is targeted to hit Pioneer sites the week of July 5th.

Pioneer Gives Customers Reason to

HST Arrives

July 1STThere likely won’t be much “harmony” at the pumps on July 1st when the new Harmonized Sales Tax (HST) takes effect. The HST will add 8% in new taxes to gas prices. Pioneer is trying to soften the blow for customers with a special promotion – in the form of a 3 week double Bonus Bucks promotion beginning July 1st.

The HST combines the 5% goods and service tax (GST) and the 8% provincial sales tax (PST) into one 13% tax. Since PST was not previously applied to gasoline, diesel, propane for cylinder refills, cigarettes or tobacco products, the HST results in an 8% increase in taxes on these items.

“We realize that this is going to be a trying time for retailers and employees, not only after the new tax comes into effect on July 1st, but in the days leading up to it,” says Laurie Reid, Pioneer’s Controller. “The sites are going to be very busy as people stock up before the new tax comes into effect. We are encouraging people to be patient.”

The following tips* may be helpful in dealing with upset customers: Decide in advance that you are going to keep your cool, • no matter what. This surprisingly simple technique can keep your frustration from growing and can disarm a customer who is trying to engage you in an argument.

Acknowledge their feelings with a simple comment that • shows you hear them and understand.

Try refocusing their attention. We can’t do anything about • the taxes, but we can offer them double Bonus Bucks to help off-set the sting of the new tax.

You should also be prepared to have extra staff available utilizing all POS paypoints to process the anticipated increase in customer traffic leading up to the July 1st HST change.

“Nobody likes a new tax, us included,” said Geoff Hogarth Director of Marketing. “We can’t do anything about the new tax, but we can soften the blow a little by making customers aware of the Bonus Bucks promotion.”

In addition to the POP for the Bonus Bucks promotion, new pump decals will be in place to explain the taxes. As well, staff at the sites will be wearing t-shirts advertising the 2x Bonus Bucks promotion. “Pioneer portion of that cost has not increased,” explains Geoff. “We want customers to be aware of this.”

Retailer ExPress Summer 2010

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On May 6th more than 200 excited school children lined the banks of Bronte Creek in Lowville, north of Burlington, to release Atlantic salmon fry. The special Conservation Day field trip, sponsored by Pioneer Petroleums, capped the children’s participation in the Lake Ontario Atlantic Salmon Restoration Program. Since the program began in 2006, more than two million salmon fry have been released into Lake Ontario tributaries and thousands of school children have engaged in acts of environmental stewardship and conservation.

“We had to feed the fish everyday and check the water temperature,” explained Ariel Baird-Kerr a Grade 5 student. Ariel and the other students from Hamilton schools raised the salmon fry in classroom hatcheries since February. After releasing the fish and enjoying a pizza lunch, the students participated in activities such as building bird boxes and studying the stream habitat.

“We’re introducing the children to the concept of stewardship, at a very early age, without them even realizing it,” remarked Mike Reader, Executive Director of the Ontario Federation of Anglers and Hunters (O.F.A.H.). The acclaimed program is an initiative of the O.F.A.H., the Ontario Ministry of Natural Resources and their partners.

“The salmon release is a great way for us to give back to our communities with a program that has a strong educational component, supports O.F.A. H. conservation efforts, and is fun and interesting for the children,” explained Tim Hogarth, CEO of Pioneer Petroleums. “We deal with a non-renewable resource in our business, and that’s one of the reasons we see a need to take action and support conservation efforts.”

Fishing celebrities Cam Brownson with Angler and Hunter Television, Italo Labignan from Canadian Sportfishing, and Wayne Izumi were on-hand to meet the kids and help them release their salmon fry into the wild. The Weather Network, Ontario Out of Doors Magazine, The Beer Store’s Chill Magazine, CHCH Television, and the Hamilton Spectator were also on hand to cover the event.

Bring Back the SAlMOn Conservation Day Field Trip for School Children

Ariel Baird-Kerr, a fifth grade student at Queen Victoria School in Hamilton, released her fish Bubbles.

Students from Hamilton's Queen Victoria School show their enthusiasm for the outdoors.

Aiden Prieur, Mark Tyleman (Albaneese Branding), Tim Hogarth (Pioneer) and daughter Avery release salmon fry.

Pioneer head office staff and retailers helping

out at Conservation Day.

Water study with dip nets.

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www.pioneer.ca

As a major step in our commitment to environmental responsibility, Pioneer Petroleums has launched its first carbon audit. The audit will establish a benchmark of Pioneer’s carbon footprint at our retail sites today. We’ll then be able to compare future measurements against this benchmark to determine the impact of our sustainability initiatives.

The audit was arranged after Anthony DiMaulo, Director of Merchandising and Geoff Hogarth, Director of Marketing, participated in the ECOexectives program, a one day sustainability workshop that provides executives with the inspiration and the tools to initiate real change in their organizations. The program is championed by the Toronto Zoo and held at various locations within the Zoo.

“The Zoo is acting as a brain trust and a catalyst for change,” explains Geoff. “Seeing all the micro-climates at the zoo from the Arctic to Africa, makes you realize that it is a small planet and ultimately we have a big impact on it.” The inspiring setting is also a great teaching environment because of the Toronto Zoo’s focus on sustainability.

“Many of these businesses want to change but they just don’t know where to start,” explains Dave Ireland, Chair of

the ECOexecutive program. This program facilitates that process. It brings together experts, discusses current technologies and reduces the learning curve, which many companies find overwhelming in the midst of day-to-day operations.

The ECOexecutives program also creates a network of peers who can continue to share their experiences of implementing sustainability initiatives in their businesses. Pioneer’s carbon audit is being performed by e3 Solutions at Sites

244 (Burlington), 119 (Hamilton) and 38 (Hamilton). The three sites represent various standard formats ranging from a small standard store with pop coolers to a large format store with walk-in coolers and tunnel car wash. Once complete, that information will be extrapolated to determine Pioneer’s corporate carbon footprint. “We’re committed to operating in an environmentally responsible manner,” explains Geoff. “The carbon audit will help us to demonstrate that commitment.”

Pioneer’s First Carbon Audit

Site 242 Minden – Alnoor Gowani, son of retailer Nemy Gowani and her husband Amin, received his Junior Citizen Award from the Honourable David C. Onley, Lieutenant Governor of Ontario in March for saving a man from drowning last summer. Alnoor’s story was featured in the Pioneer ExPress Fall 2009 issue.

It’s AnimazingThis superior dog-washing technology was previously only available at pricey dog spas.

Now owners can wash their dogs for a fraction of the cost using technology that jets water down to the skin and vacuums it up immediately, no mess, no puddles and one very clean dog. The two-station Animazing dog wash is located in a converted coin-wash bay at Site 92 at 2430 Fairview Street in Burlington.

"It's great," said Marilyn Meston after washing Sophie, her Portuguese Water Dog.

Site 92One coin bay is equipped with two fully outfitted coin-operated dog washing stations, separated by a screen..

Retailer ExPress Summer 2010

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Winchester Hospital DonationPioneer gave back to the local community that has supported retailer Ben Henry at Site 161 in Winchester for the past 22 years with a $5,000 donation to the Winchester District Memorial Hospital. The funds support the hospital’s $5 million campaign for healthcare equipment.

Co-mingled or separated? Bins at each pump or each island? These questions and others are behind the recycling pilot project that is underway at Burlington sites 28, 92 and 244. Pioneer is testing various formats to gather the information needed in order to roll-out a program that is effective and convenient for customers, retailers and their employees.

All three locations feature a large recycling station in front of the convenience store, but different bin configurations on the islands. “We need to see if customers will walk to a recycling bin and how far,” explains Mike Dietrich, Manager of Car Wash and Maintenance. “That information will help us determine the ultimate bin placement around the pumps.”

Removal of the recycling materials from sites is a challenging issue. Currently there are upwards of 20 different companies picking up waste at Pioneer sites across Ontario, each with varying degrees of recycling abilities. In order to move forward on an effective waste recycling program, Pioneer needs to identify the requirements that companies would need to meet before going to tender.

The pilot is testing a co-mingled versus a separated waste stream disposal service. The co-mingled program appears to be the winner. Co-mingled waste streams enable the clear plastic waste bags from the recycling bins to be sealed and tossed into one large disposal bin. This eliminates the need for additional storage units and sorting and separating by employees. From there, the

disposal company picks up the bin ensuring that the cans, paper, plastic, and windshield washer jugs are sent to the right recycling stream.

The pilot will wrap up this September providing valuable information that is helping us to design a recycling program that will work across the entire network. In the interim, retailers are reminded to move to month to month agreements as their waste removal contracts expire, to facilitate recycling arrangements.

Site Recycling: What Works Best?

"Ben was the catalyst," said Dave MacFarlane (third from the left) pictured here with (left to right)

Chris Braceland, Ben Henry, Dave MacFarlane, Bob Carkner and Brian Kitchen..

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Site 234 Owen Sound Helps Fire VictimsSite 234 in Owen Sound threw a fundraiser on Saturday May 5th after the biggest apartment fire in recent memory left 10 families homeless. Representatives from Pepsi and First Choice Haircutters worked the pumps and pitched in with prizes and gifts. Local newspaper, television and radio stations provided great coverage of the event. By the end of the day more than $1,100 had been raised for the fire victims from customer donations and a special one-cent-a-litre promotion.

1. A big thank-you to (left-right) Rod's daughter Tasha Holmes (First Choice Haircutters), Tom Purtall (Pepsi), Melody Col l icott (Assistant Manager), Felicia Yack (Pepsi), Rod Holmes (Retailer Site 234) and Brianna Charlton (not pictured).

2.. Felicia Yack from Pepsi volunteers as a pump attendant.

3. Retailer Rod Holmes is interviewed for television.

Give What You CanOur thanks go out to our wonderful customers and employees who once again showed their support for the Children’s Hospitals of Ontario. Pioneer customers donated $94,832.58 during the annual two week campaign. Pioneer topped it up with another $32,167.42 for a total gift of $127,000 to help children requiring the specialized care of a pediatric hospital.

THe Give WHaT You Can donaTionS SuPPorT:Children’s Health Foundation (London) - $13,000 McMaster Children’s Hospital (Hamilton) - $50,000 The Hospital for Sick Children (Toronto) - $40,000 University Hospitals Kingston Foundation Pediatric Program - $11,000 Children’s Hospital of Eastern Ontario (CHEO) - $13,000

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Chile earthquake reliefWhen a major earthquake with an 8.8 magnitude hit Chile on February 27, 2010 the Chilean Red Cross had emergency response teams deployed in the area within four hours. The quake came just six weeks after the devastating earthquake in Haiti. Once again the International Red Cross had to issue an appeal to support relief efforts. The Pioneer Children’s Foundation responded with a $10,000 donation to Chile Earthquake Relief through the Canadian Red Cross. The funds provide relief goods, tents, tarpaulins as well as a field hospital, generators, water and sanitation teams.

Pioneer and its customers have donated more than $1.12 million for Children’s Hospitals since 1985.

www.pioneer.ca

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The Retailer ExPressSummer 2010 editionA publication for Pioneer Retailers and Head Office employees.

Send us your Pioneer stories.

Editor: Geoff Hogarth [email protected]

Assistant Editors: Kim Hoang [email protected]

Wendy eveleigh [email protected]

Tel: (905) 639-2060 Fax (905) 639-2490

© 2009 Pioneer Petroleums. All rights reserved.

www.pioneer.ca

Welcome to the Pioneer Network:Site 285 Toronto – Daoud (David) Ghaith the dealer at the new Pioneer-branded self serve gas station with nine car wash bays at 1980 Lawrence Avenue East, near Warden Avenue in Toronto.

Site 286 Milton – Khalid Yassi, Sami Bunni, Jawdat Arshat, and Salam Hamoudi, dealers at the new Pioneer-branded site at 8473 HWY 25 North, close to the 401.

Renovations and Upgrades:Site 106 Delhi – the former Tim Hortons outlet at 12 Church Street was completely renovated and opened in February as a brand new Snack Express. The renovated gas station opened on May 13th and the retailer is Debbie Brown.

Site 107 in Ancaster at 1180 Wilson Street West, reopened after its “Extreme Makeover” featured in the Winter 2009-2010 issue. The site is now completed and “it’s beautiful,” says Bob Reid, Pioneer’s Director of Development and Construction. The retailer at the site is Khalil Ashi.

Site 192 South Mountain at 10514 County Road – after a very brief closure long-time Pioneer dealer Rick Cauvier reopened in mid-May with a newly equipped 8 position gas station, new canopy branding and reclad store. Rick’s site includes a large grocery store and the only LCBO for miles. Rick has been with Pioneer since 1998.

At Site 266 at Keewatin and Burrows, a coin • carwash bay is being used to expand the convenience store to the On the Run format and a Tim Hortons drive through is being added. The work will be completed at the end of June. Construction is underway to build an On The • Run at Site 271 at 1640 Kenaston Boulevard.

The work is almost complete to convert • the self-serve Tim Hortons at Site 268, at Pembina and Edderton, to a full service walk-up with a drive-thru. The previous upgrade of the convenience store to the On the Run format was highlighted in the Winter 2008-2009 Retailer Express.Pioneer has acquired a new Esso site (now • Site 287) at 10 Main Street East in Neepawa, Manitoba, two hours west of Winnipeg. Pioneer also acquired the Esso site on King • Edward Street in Winnipeg. “It shows great promise,” says District Manager Kirk Melville.

Esso Acquisitions and Upgrades in Winnipeg:

Site 106

Site 107

Site 192 – After

Site 192 – Before

Site 287