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Corporate Presentation

February 2016

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Forward-looking statements

Statements that are not historical facts are forward-looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995 and forward looking information within the meaning of applicableCanadian legislation. These forward-looking statements are based on current expectations, estimates andassumptions concerning future events and are subject to a number of uncertainties and factors, many of whichare outside Precision's control, which could cause actual results to differ materially from those anticipated byPrecision and described in the forward looking statements. These forward-looking statements are also affectedby the risk factors, challenges and uncertainties described in Precision's Annual Report on Form 40-F (AnnualInformation Form in Canada) for the fiscal year ended December 31, 2014, and those set forth from time to timein Precision's filings with the Securities and Exchange Commission and the securities regulatory authorities ineach of the Provinces of Canada, which are available through Precision's website at www.precisiondrilling.com.

No assurance can be given that any of the events anticipated by the forward-looking statements will transpire oroccur or, if any of them do so, what benefits will be derived therefrom. Security holders, potential investors andother readers are urged to consider these factors carefully in evaluating the forward-looking statements whichspeak only as of the date made. Except as may be required by law, Precision expressly disclaims any intentionor obligation to revise or update any forward-looking statements and information whether as a result of newinformation, future events or otherwise.

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Historical North American Drilling Activity

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Jan, 2008

Jan, 2010

Jan, 2012

Jan, 2016

Jan, 2018

Jan, 2014

Jan, 2006

U.S. Land Rig Count10 Year History

Canadian Land Rig Count5 Year History

Source: Baker Hughes land rig count as of Feb. 12. 2016

0

100

200

300

400

500

600

700

800

January

Febru

ary

Marc

h

April

May

June

July

August

Septe

mber

Oct

ober

Novem

ber

Dece

mber

5 Year Range 2011 - 2015 2015 2016

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1. Maintain strong liquidity through the downturn

2. Sustain High Performance, High Value competitive positioning

3. Position for an eventual rebound

a. Asset integrity – maintain high quality and integrity of our Tier 1 drilling fleet

b. People – retain field leadership depth

c. Scale – to reduce costs while insuring access to materials and people in

rebound

Precision’s 2016 Strategic Priorities

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Managing Through The Cycle

___

Liquidity

Variable Cost Structure

238 Tier 1 Rigs Maintain High Performance

operations

Strong Balance Sheet with $445 million Cash

Variable operating and capital expenditures

Reduce overhead and G&A costs

60 Contracts for 2016 30 Contracts for 2017

Creates Shareholder Value

Diverse customer base Geographical diversification

Revenue Diversification

Revenue Security

Rig Capability

6Precision Super Triple rigs operating in Duvernay, 2015.

Fully Industrialized Development Drilling

Maximum Efficiency

Repeatability + Predictability

Risk Minimization

Technology Deployment

Long-term Economic Mindset

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High Performance Super Single and Super Triples Rig Fleet

101

93

16

U.S.145 Tier 1Rigs Added

Canada

International

Upgrade Candidates

11 Feb, 2016

254

129

8

1 Jan, 2009

1) As of February 11th 2016 - Includes 2 newbuild rigs for Kuwait to be delivered in early 2017. Include 16 upgrade candidates.

2) Decommissioned 79 drilling rigs on December 31, 2012.

1,2

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Career Path Management

Field Training

Investments

Structured Promotion

Programs

Long-term

Compensation

Programs

Permanent Training

Facilities with Fully

Functioning Rigs

Leadership Development Programs

World-Class

Safety Culture

and Processes

Tier 1 Assets

EXPERIENCED,

HIGHLY SKILLED

PRECISION CREWS

Precision HR Training and Processes

Structured Competency Standards

Structured Measured Retention Programs for Key Personnel

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Average market cap. of $41 billion (median $13 billion).2

Accounts for 86% of total revenue.

Credit risk for vast majority of contract book remains low.

Strong Contract Book backed by Well Capitalized Customers

National OilCompanies

8%

Private20%

Public 72%

1 Includes Canada, U.S. and International operations.2 As of February 8th 2016.

2015 Top 50 Customers 1

3631

25

21

9

8

30

2016 Average

60

70

Q1’16 2017 Average

Average Term Contracts

US CanadaInternational

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Positioned In Most Active North American RegionsComprehensive North American Coverage

Dots representative of areas where Precision has had operations in 2014 and 2015

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Focused International Footprint

Middle East 4 rigs in Saudi Arabia

2 rigs in Kurdistan

1 rig in Georgia

5 rigs in Kuwait

3 currently

2 to be deployed in early 2017

Focus on deep high pressure drilling

Specialized customer needs

Mexico 5 rigs in Mexico

Focus on IPM support

North America 135 rigs in Canada

102 rigs in U.S.

Focused on development drilling

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Increasing International Diversification

3%

46%51%

2012 2013

8%

46% 46%

2014

International revenue was 14% of total in 2015, up from 3% in 2012.

14%

48%37%

2015

Two additional contracted rigs to be

deployed in Q1 2017 to Kuwait.

7%

44%49%

InternationalU.S.Canada

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Capital Spending Highlights

$320

$187

$721

2016 Capital – $202 million

$158 million for Expansion & Upgrades Capital

2 new-build rigs for Kuwait

$44 million for Maintenance, Infrastructure and Upgrades

$44

$158

Maintenance & Infrastructure

Expansion & Upgrades

2016E

$44

$163

$423

$536

$708

$113

2013

$868

$142

2012

$726

2011

$176

2010

$605

$726

$121$158

$202

2009

$126

$50$30

$193 $410

$149

$459

2014

$857

$49

2015

Capital Expenditure Torque

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Balance Sheet Strength

1) Statistics refer to balance sheet and annual income statement as of 12/31/2015. Debt to total capital equals long-term debt to long-term debt plus equity. Interest coverage equals EBITDA divided by interest. Available liquidity, adjusted for amendment of revolver post quarter end.

2) Calculated as undrawn portion of revolver (adjusted for LCs outstanding) and cash using CAD/USD exchange rate and balance sheet numbers as at 12/31/2015.3) Current blended cash interest cost of our debt is approximately 6.2%.

Attractive Capital Structure (1)

Net debt to total capital: 40% Interest coverage: 3.6x

Long maturity, low cost debt Average interest rate of 6.2%

First Principal Payment due 2019 (3)

2019: $200 million 2020: US$650 million 2021: US$400 million 2024: US$400 million

Flexibility to react to market upturn or downturn

Announced Dividend Suspension on February 11th, 2016

Available liquidity as of12/31/2015 2

Revolver /operating facilitiesAvailability(Maturity: June 3, 2019)

Cash

$1,199

$754

$445

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Historical Annual Revenue and EBITDA

Annual Revenue (millions, YOY % change)

Annual EBITDA(millions,%)

$639(31%)

2012

$671(33%)

2011

$695(36%)

2010

$435(30%)

2009

$407(34%)

2015

$474(30%)

2014

$800(34%)

2013

+36%+5% -1%

+16%

2011

$1,951

2010

$1,430

2009

$1,197

2012

$2,041

$1,556

2015

-34%

+19%

2014

$2,351

2013

$2,030

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Cost Management In Lower Activity Environment

Variable Cost Structure Reduced Maintenance Capex

Limited Growth Capex

Variable Field Cost

Overhead Reductions

Positioned for Prolonged Downturn

Maintain High Performance, High Value

Operating center consolidation

2015 restructuring/severance costs of $21 million

Management reorganization

$100 million in annual fixed cost savings

Active Fixed Cost Management

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Precision Drilling Investment Merits

Leading North American driller with global diversification

High Performance Tier 1 fleet of rigs with Tier 1 crews

Strong balance sheet with $445*

million of cash

Contract position backed by excellent customer base

Experienced organization and management team

Delivering Shareholder Value

TSX: PDNYSE: PDS* As of December 31st 2015TSX: PD NYSE: PDS

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Appendix

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Canadian Activity Update

0

100

200

300

400

500

600

700

800

Ca

na

dia

n A

cti

ve

La

nd

Rig

Co

un

t

5 Year Range 2011 - 2015 2014 2015 2016

Source: Baker Hughes land rig count as of Feb. 12. 2016

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0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2000 2002 2004 2006 2008 2010 2012 2014 2016

U.S

. A

cti

ve

La

nd

Rig

Co

un

t

Oil Gas

Oil Drilling Dominates Activity

Source: BHI, as of February 5th, 2016

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PEOPLE

SYSTEMS & SCALE

DRILLING TECHNOLOGY

LOWER RISK

MAXIMUM EFFICIENCY

ATTRACTIVE RETURNS

PRODUCES

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SYSTEMS&

SCALE

IT Infrastructure and ERP

Supply Chain Management• Leverage Procurement• Vendor Management• Centralized Support

Technical Support centres• Asset Integrity• Maintenance Standard• Centralized Support• In House Repair & Rebuild

Manufacturing + Capital Projects• Engineering• Project Management• Equipment Manufacturing (Rostel)

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8,680 employees completed training through Precision Tech centres in 2013 – 2015

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Global recruitment

7 Countries

10 Provinces

50 States

Toughnecks program processed 13,505 applications and hired 506 people in 2015

90% retention target of key field positions

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Safety & Operations

Training

Rig Build & Construction

Repair & Maintenance

Nisku Drilling Support Centre

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Completion & Production Segment: Full Well Cycle Exposure

Largest well service provider in Canada and established presence in U.S.

Over 150 Well Service, Snubbing and Coil Tubing rigs

Large fleet of high value rental equipment

Camps and Catering

Excellent footprint in Canada and Northern U.S.

Existing asset base supports solid cash flow generation

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International Revenue Growth

Inte

rna

tio

na

l R

eve

nu

e (

mil

lio

ns)

Compounded Annual Growth Rate

$240

$160

$200

$120

$0

$40

$80

+77%

20152014201320122011

Revenue

• Initiated Saudi with 3 Rigs

• Deployed additional 3 Rigs to Mexico

• Initiated Kurdistan with 3 Rigs

• Initiated Kuwait with 2 Rigs

• Deployed additional 1 rig to Saudi

• Deployed 1 rig to Georgia• Deployed additional 1 rig to Kuwait• Signed 2 newbuild contracts for

delivery to Kuwait in early 2017

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Commodity • Vertical gas • Vertical gas• Vertical oil• Horizontal gas emerges

• Horizontal gas, development mode• Horizontal oil/liquids growth• Vertical oil• Vertical gas declining

Customers • Small independents• Highly cyclic customer

demand

• Large cap independents• Mid cap independents• Small cap independents

• Integrated oil companies• National oil companies • Large cap independents• Mid cap independents• More stable demand

UnconventionalBasins

• Oil Sands • U.S. focused• 3 to 5 basins

• U.S. and Canada • Emerging Internationally• 20+ basins

Barriers to Entry & Competitive Advantage

• Low barriers• No differentiation

• Rig ownership• Capital• Technology bifurcation

emerging• High performance contractors

emerge• Shortage of Tier 1 rigs

• Technology bifurcation complete• Rig efficiency dominates• Scale benefits apparent• Capital needs large• Established track record• Robust support systems• Tier 1 rigs in demand

North American Market Has Transitioned To Industrialized Resource Drilling

1985-2005Reservoir Drilling

2005-2010Resource Drilling Emergence

2010-PRESENTIndustrial Resource Drilling

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Precision Commands Leadership In Canadian LNG Opportunity

Approved export capacity of 26Bcf/day 1

Opportunity for 20 to 25 rigs per Bcf of export capacity

Longer-term demand source

Require deeper Tier 1 rigs

ST-1200 and ST-1500 rigs ideal for type of development Pad walking Potential year around operations

Well capitalized players funding projects Want long-term partners with proven

track record

Precision has won approximately half of the awarded LNG related new builds

ST-1500 deployed in Northwestern Alberta in February 2014

1. Source: Risky Business: This issue of timing, entry and performance in the Asia-Pacific LNG Market, The School of Public Policy SPP Research Papers, University of Calgary

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Precision’s Tier 1 Super Series Fleet

High Performance Development Drilling Technology

INDUSTRY LEADING RIGSDelivering unrivaled economics through High Performance

Rapid Mobility Walking/skidding system Location to location Sophisticated connections

Small footprint Integrated components Cold weather operations

Smart Design

Automation & Safety Features

Pipe handling Electronics and hydraulics Advanced control systems

1) ST-1500 Requires as few as 42 truck loads in addition to 12 loads of tubular and any operator rental loads2) Requires as few as 36 truck loads in addition to 10 loads of tubular and any operator rental loads

Super Triple 1500 1

Super Triple 1200 2Super Single

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800, 525-8th Avenue S.W.

Calgary, Alberta, Canada T2P 1G1

Telephone: 403.716.4500

Facsimile: 403.264.0251

www.precisiondrilling.com