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AKITA Drilling Ltd | Q3 2011 Results | | Page 1 of 11 | September 11, 2026

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Commencing with the first quarterly report earlier this year, all financial information is reported for the Company in accordance with IFRS including for comparative periods except where noted. AKITA Drilling Ltd.’s net income for the three months ended September 30, 2011 was $6,926,000 ($0.38 per share) on revenue of $54,874,000 compared to $2,215,000 ($0.12 per share) on revenue of $34,042,000 for the corresponding period in 2010. Funds flow from operations for the quarter ended September 30, 2011 was $12,825,000 compared to $8,476,000 in the corresponding quarter in 2010. Net income for the nine months ended September 30, 2011 was $16,375,000 ($0.90 per share) on revenue of $143,969,000. Comparative figures for 2010 were net income of $2,614,000 ($0.14 per share) on revenue of $103,295,000. Funds flow from operations for the January to September period in 2011 was $29,776,000 which included a one-time tax charge of $2,432,000, related to the second quarter repatriation of one of the Company’s rigs from Alaska into Canada. Funds flow from operations for the January to September comparative period was $21,240,000. Rig activity increased significantly during the summer after a long and, in many cases, late break-up with third quarter utilization rates matching their highest level in over a decade for a third quarter. Operating statistics for the first nine months of 2011 and 2010 are as follows: Number of Drilling Rigs Operating Days Gross Net 3 months 9 months Canadian Operations 2011 37 34.075 2,140 5,142 2010 37 34.225 1,387 3,938 U.S. Operations 2011 0 0.0 0 0 2010 2 1.0 0 23 Total 2011 37 34.075 2,140 5,142 2010 39 35.225 1,387 3,961 AKITA’s capital program is on track to be the largest since 2001. The Company continues to execute its strategy to increase market penetration in self-moving pad rigs. Thus far in 2011, AKITA has converted two rigs from conventional into pad configurations and has built one new pad rig. The Company also has two further rigs that are undergoing conversion into pad rigs for this winter. Once these additional two projects are complete, AKITA will have 15 pad rigs in its fleet. The future outlook beyond the traditional strong winter drilling season includes significant uncertainty following break-up that will depend on, among other things, the price of crude oil, the ability for AKITA’s customers to access financing and overall confidence levels in the economy. AKITA is well positioned with financial and other resources to adapt to market conditions as they present themselves. We are pleased to announce that Mr. Harish Mohan joined our Board of Directors on August 1, 2011. Mr. Mohan brings a strong oil and gas drilling background and has held several senior financial and management positions including with a diversified, Canadian based, international group of companies. On behalf of the Board of Directors, Linda A. Heathcott Karl A. Ruud Chairman of the Board President and Chief Executive Officer To the Shareowners Q 3 DRILLING LTD. Interim report for 9 months ended September 30, 2011 Corporate Information DIRECTORS Loraine M. Charlton Corporate Director Calgary, Alberta Arthur C. Eastly Corporate Director Calgary, Alberta Linda A. Heathcott President, Spruce Meadows, President, Team Spruce Meadows Inc. Chairman of the Board of the Company Calgary, Alberta Harish K. Mohan Corporate Director Calgary, Alberta Dale R. Richardson Vice President, Sentgraf Enterprises Ltd. Calgary, Alberta Karl A. Ruud President and Chief Executive Officer of the Company Calgary, Alberta Nancy C. Southern Deputy Chair, President and Chief Executive Officer, ATCO Ltd. and Canadian Utilities Limited Calgary, Alberta Ronald D. Southern, C.C., C.B.E., B.Sc., LL.D. Chairman, ATCO Ltd. and Canadian Utilities Limited, Deputy Chairman of the Board of the Company Calgary, Alberta C. Perry Spitznagel, Q.C. Vice Chairman and Managing Partner (Calgary), Bennett Jones LLP Calgary, Alberta Charles W. Wilson Corporate Director Evergreen, Colorado OFFICERS Raymond T. Coleman Vice President, Operations Colin A. Dease Corporate Secretary Fred O. Hensel Vice President, Marketing Craig W. Kushner Director of Human Resources John M. Pahl Vice President, Joint Ventures and Business Development Murray J. Roth Vice President, Finance and Chief Financial Officer Karl A. Ruud President and Chief Executive Officer HEAD OFFICE AKITA Drilling Ltd., 900, 311 – 6th Avenue S.W., Calgary, Alberta T2P 3H2 (403)292-7979 BANKER Alberta Treasury Branches Calgary, Alberta COUNSEL Bennett Jones LLP Calgary, Alberta AUDITORS PricewaterhouseCoopers LLP Calgary, Alberta REGISTRAR AND TRANSFER AGENT CIBC Mellon Trust Company Calgary, Alberta and Toronto, Ontario 1-800-387-0825 SHARE SYMBOL/TSX Class A Non-Voting (AKT.A) Class B Common (AKT.B) WEBSITE www.akita-drilling.com 49 AkITA Drilling Ltd. 2011 Q3 ReportNotes to Consolidated Financial Statements Foreign Currency Risk The Company is exposed to changes in foreign exchange rates as revenues, capital expenditures, or financial instruments may fluctuate due to changing rates. At September 30, 2011 and December 31, 2010, AKITA’s exposure was limited substantially to its operations in the United States, which constituted 0% of its total revenue (2010 – 5%). Liquidity Risk The Company is exposed to liquidity risk through its working capital balance. At September 30, 2011 and December 31, 2010, this risk was limited due to having cash and term deposit balances significantly in excess of total current liabilities. 23. Accounting Standards Issued But Not Yet Applied IFRS 9 (Financial Instruments) addresses classification and measurement of financial assets that will replace IAS 39 (Financial Instruments: Recognition and Measurement). IFRS 9 has two measurement categories: amortized cost and fair value. All equity instruments are measured at fair value. A debt instrument is measured at amortized cost only if the entity is holding it to collect contractual cash flows and the cash flows represent principal and interest, otherwise, it is measured at fair value through profit and loss. The standard was updated to include guidance on financial liabilities and derecognition of financial instruments. This standard is required to be applied for accounting periods beginning on or after January 1, 2013, with earlier adoption permitted. IAS 1 (Presentation of Financial Statements) was amended to change the disclosure of items presented in other comprehensive income (OCI), including a requirement to separate items presented in OCI into two groups based on whether or not they may be recycled to profit and loss in the future. This change is effective for years beginning on or after July 1, 2012. IAS 19 (Employee Benefits) was amended to reflect (i) significant changes to recognition and measurement of defined benefit pension expense and termination benefits, and (ii) expanded disclosure requirements. This change is effective for years beginning on or after January 1, 2013. IFRS 13 (Fair Value Measurement and Disclosure) provides a single source of guidance on how to measure fair value where its use is already required or permitted by other IFRS and enhances disclosure requirements for information about fair value measurements. This standard is effective for years beginning on or after January 1, 2013. IFRS 10 (Consolidated Financial Statements) replaces the guidance on control and consolidation in IAS 27 (Consolidated and Separate Financial Statements) and SIC-12 (Consolidation – Special Purpose Entities). IFRS 10 changes the definition of control under IFRS so that the same criteria are applied to all entities to determine control. This standard is effective for years beginning on or after January 1, 2013. IFRS 11 (Joint Arrangements) replaces IAS 31 (Interests in Joint Ventures). IFRS 11 reduces the type of joint arrangements to two: joint ventures and joint operations. IFRS 11 requires the use of equity accounting for interests in joint ventures, eliminating the existing policy choice of proportionate consolidation for jointly controlled entities under IAS 31. Entities that participate in joint operations will follow accounting much like that for jointly controlled assets and jointly controlled operations under IAS 31. This standard is effective for years beginning on or after January 1, 2013. IFRS 12 (Disclosure of Interests in Other Entities) sets out the disclosure requirements for entities reporting under IFRS 10 and IFRS 11, and replaces the disclosure requirements currently found under IAS 28 (Investment in Associate’s). This standard is effective for years beginning on or after January 1, 2013. IAS 27 is renamed “Separate Financial Statements” and deals solely with separate financial statements, the guidance for which remains unchanged. This standard is effective for years beginning on or after January 1, 2013. The Company has not yet assessed the impact of the foregoing standards.