diff --git a/workspace_tools/export/exporters.py b/workspace_tools/export/exporters.py
index d7353e9898..3debb6ccdf 100644
--- a/workspace_tools/export/exporters.py
+++ b/workspace_tools/export/exporters.py
@@ -5,6 +5,7 @@ from jinja2 import Template
 from contextlib import closing
 from zipfile import ZipFile, ZIP_DEFLATED
 
+from workspace_tools.utils import mkdir
 from workspace_tools.toolchains import TOOLCHAIN_CLASSES
 from workspace_tools.targets import TARGET_MAP
 
@@ -27,17 +28,22 @@ class Exporter():
     def __scan_and_copy(self, src_path, trg_path):
         resources = self.toolchain.scan_resources(src_path)
         
-        for r_type in ['headers', 's_sources', 'c_sources', 'cpp_sources', 'objects', 'libraries', 'linker_script']:
+        for r_type in ['headers', 's_sources', 'c_sources', 'cpp_sources',
+            'objects', 'libraries', 'linker_script',
+            'lib_builds', 'lib_refs', 'repo_files']:
             r = getattr(resources, r_type)
             if r:
                 self.toolchain.copy_files(r, trg_path, rel_path=src_path)
-        return resources.lib_builds
+        return resources
     
     def scan_and_copy_resources(self, prj_path, trg_path):
         # Copy only the file for the required target and toolchain
         lib_builds = []
+        repo_dirs = []
         for src in ['lib', 'src']:
-            lib_builds.extend(self.__scan_and_copy(join(prj_path, src), trg_path))
+            resources = self.__scan_and_copy(join(prj_path, src), trg_path)
+            lib_builds.extend(resources.lib_builds)
+            repo_dirs.extend(resources.repo_dirs)
         
         # The libraries builds
         for bld in lib_builds:
@@ -45,7 +51,12 @@ class Exporter():
             lib_data = self.build_url_resolver(build_url)
             lib_path = lib_data['path'].rstrip('\\/')
             self.__scan_and_copy(lib_path, join(trg_path, lib_data['name']))
-        
+            # create .hg dir in build dir so it's ignored when versioning
+            hgdir = join(trg_path, lib_data['name'], '.hg')
+            mkdir(hgdir)
+            fhandle = file(join(hgdir, 'keep.me'), 'a')
+            fhandle.close()
+
         # Final scan of the actual exported resources
         self.resources = self.toolchain.scan_resources(trg_path)
         self.resources.relative_to(trg_path, self.DOT_IN_RELATIVE_PATH)
diff --git a/workspace_tools/toolchains/__init__.py b/workspace_tools/toolchains/__init__.py
index a5ee60d497..88bce40702 100644
--- a/workspace_tools/toolchains/__init__.py
+++ b/workspace_tools/toolchains/__init__.py
@@ -59,6 +59,10 @@ class Resources:
         
         # mbed special files
         self.lib_builds = []
+        self.lib_refs = []
+        
+        self.repo_dirs = []
+        self.repo_files = []
         
         self.linker_script = None
     
@@ -75,13 +79,18 @@ class Resources:
         self.libraries += resources.libraries
         
         self.lib_builds += resources.lib_builds
+        self.lib_refs += resources.lib_refs
+        
+        self.repo_dirs += resources.repo_dirs
+        self.repo_files += resources.repo_files
         
         if resources.linker_script is not None:
             self.linker_script = resources.linker_script
     
     def relative_to(self, base, dot=False):
         for field in ['inc_dirs', 'headers', 's_sources', 'c_sources',
-                      'cpp_sources', 'lib_dirs', 'objects', 'libraries']:
+                      'cpp_sources', 'lib_dirs', 'objects', 'libraries',
+                      'lib_builds', 'lib_refs', 'repo_dirs', 'repo_files']:
             v = [rel_path(f, base, dot) for f in getattr(self, field)]
             setattr(self, field, v)
         if self.linker_script is not None:
@@ -89,7 +98,8 @@ class Resources:
     
     def win_to_unix(self):
         for field in ['inc_dirs', 'headers', 's_sources', 'c_sources',
-                      'cpp_sources', 'lib_dirs', 'objects', 'libraries']:
+                      'cpp_sources', 'lib_dirs', 'objects', 'libraries',
+                      'lib_builds', 'lib_refs', 'repo_dirs', 'repo_files']:
             v = [f.replace('\\', '/') for f in getattr(self, field)]
             setattr(self, field, v)
         if self.linker_script is not None:
@@ -240,6 +250,11 @@ class mbedToolchain:
         for root, dirs, files in walk(path):
             # Remove ignored directories
             for d in copy(dirs):
+                if d == '.hg':
+                    dir_path = join(root, d)
+                    resources.repo_dirs.append(dir_path)
+                    resources.repo_files.extend(self.scan_repository(dir_path))
+
                 if ((d.startswith('.') or d in self.legacy_ignore_dirs) or
                     (d.startswith('TARGET_') and d[7:] not in labels['TARGET']) or
                     (d.startswith('TOOLCHAIN_') and d[10:] not in labels['TOOLCHAIN'])):
@@ -275,11 +290,30 @@ class mbedToolchain:
                 elif ext == self.LINKER_EXT:
                     resources.linker_script = file_path
                 
+                elif ext == '.lib':
+                    resources.lib_refs.append(file_path)
                 elif ext == '.bld':
                     resources.lib_builds.append(file_path)
+                elif file == '.hgignore':
+                    resources.repo_files.append(file_path)
         
         return resources
-    
+
+    def scan_repository(self, path):
+        resources = []
+        
+        for root, dirs, files in walk(path):
+            # Remove ignored directories
+            for d in copy(dirs):
+                if d == '.' or d == '..':
+                    dirs.remove(d)
+            
+            for file in files:
+                file_path = join(root, file)
+                resources.append(file_path)
+        
+        return resources
+
     def copy_files(self, files_paths, trg_path, rel_path=None):
         # Handle a single file
         if type(files_paths) != ListType: files_paths = [files_paths]