1

Investor Presentation

January 2016

2

Forward-looking statements

Statements that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and forward looking information within the meaning of applicable Canadian legislation. These forward-looking statements are based on current expectations, estimates and assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside Precision's control, which could cause actual results to differ materially from those anticipated by Precision and described in the forward looking statements. These forward-looking statements are also affected by the risk factors, challenges and uncertainties described in Precision's Annual Report on Form 40-F (Annual Information Form in Canada) for the fiscal year ended December 31, 2014, and those set forth from time to time in Precision's filings with the Securities and Exchange Commission and the securities regulatory authorities in each 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 or occur or, if any of them do so, what benefits will be derived therefrom. Security holders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements which speak only as of the date made. Except as may be required by law, Precision expressly disclaims any intention or obligation to revise or update any forward-looking statements and information whether as a result of new information, future events or otherwise.

3

Historical North American Drilling Activity

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Jan, 2010

Jan, 2012

Jan, 2008

Jan, 2006

Jan, 2014

Jan, 2016

U.S. Land Rig Count 10 Year History

Canadian Land Rig Count 5 Year History

Source: Baker Hughes land rig count

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

4

Management of Business Through Downturn

_ __

Liquidity

Variable Cost Structure

238 Tier 1 Rigs Maintain High Performance

operations

Strong Balance Sheet with $439 million Cash

Variable operating and capital expenditures

Reduce overhead and G&A costs

105 Contracts for 2015 64 Contracts for 2016

Creates Shareholder Value

Diverse customer base Geographical diversification

Revenue Diversification

Revenue Security

Rig Capability

5

High Performance Rig Fleet 1

101

93

U.S. 145 Tier 1

Rigs Added

Canada

International

22 October, 2015

238

129

8

1 Jan, 2009

1) As of October 22nd 2015 - Includes 1 newbuild for Canada to be delivered in Q4 2015 and 2 newbuild rigs for Kuwait to be delivered in early 2017, does not include prospective tier upgrades.

6

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

7

Average market cap. of $21 billion (median $12 billion).2

Accounts for 77% of total revenue.

Strong Contract Book backed by Well Capitalized Customers

5% Private

Public 8% National Oil

Companies

87%

1 Includes Canada, U.S. and International operations. 2 As of December 31st 2015.

2014 Top 50 Customers 1

4146

37

47

9

12

64

105

2015 Average

2016 Average

87

Q3’15

Average Term Contracts

International Canada US

8

Increasing Diversification of Revenue Contribution

7%

44% 49%

International U.S. Canada

3%

46% 51%

2012 2013

8%

46% 46%

2014

International revenue was 8% of total in 2014, up from 3% in 2012.

14%

51%

35%

YTD 2015

9

Historical Annual Revenue and EBITDA

Annual Revenue (millions)

Annual EBITDA (millions)

2014

$800

2013

$639

2012

$671

2011

$695

2010

$435

2009

$407

$597

TTM 2013 2014

$2,351

$2,030

2012

$2,041

2011

$1,951

2010

$1,430

2009

$1,197

TTM

$1,829

1) As of September 30th 2015

1 1

10

Capital Spending Highlights 1

1) Canadian dollar amount in millions. As of October 22, 2015

$320

$187

$721

2016 Capital – $180 million

$120 million for Expansion capital

2 new-build rigs for Kuwait

$60 million for Maintenance & Infrastructure

2015 Capital – $531 million

Constructed and delivered 18 newbuild Super Series rigs

13 to U.S.

4 to Canada

1 to Kuwait

$392 million spent in the first nine months of 2015

$60

$120

Maintenance & Infrastructure

Expansion & Upgrades

$59

$472

11

Balance Sheet Strength

1) Statistics refer to balance sheet and annual income statement as of 9/30/2015. 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 9/30/2015.

3) Current blended cash interest cost of our debt is approximately 6.2%.

Attractive Capital Structure (1)

Total debt to total capital: 47% Net debt to total capital: 37% Interest coverage: 4.6x

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

Available liquidity as of 9/30/2015 2

Revolver / operating facilities Availability

Cash

$1,166

$727

$439

12

Downturn Initiatives

Variable Cost Structure Reduced Maintenance Capex

Limited Growth Capex

Variable Field Cost

Overhead Reductions of more than $40 million Annualized

Positioned for Prolonged Downturn

Six facilities closed and consolidated in Canada & U.S.

Operating Centre Consolidation

13

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 $439 million of cash

Contract position backed by excellent customer base

Experienced organization and management team

TSX: PD NYSE: PDS

14

Appendix

15

Positioned In Most Active North American Regions Comprehensive North American Coverage

Dots representative of areas where Precision has had operations in 2015

16

Canadian Activity Update

Source: BHI

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 2010 - 2014 2013 2014 2015

17

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

U.S

. A

cti

ve

La

nd

Rig

Co

un

t

Oil GasSource: BHI

Oil Drilling Dominates Activity

Total rig count has dropped

64% from Peak

Oil rig count has dropped

66% from Peak

Source: BHI, as of November 25th, 2015

18

Key Financial Metrics

Key Operational

Metrics

• Operating Earnings

• Return on Capital Employed

• Total Shareholder Return

• Safety Performance

• Mechanical Downtime

• Employee Retention

Delivers Shareholder Value

19

PEOPLE

SYSTEMS & SCALE

DRILLING TECHNOLOGY

LOWER RISK

MAXIMUM EFFICIENCY

ATTRACTIVE RETURNS

PRODUCES

20

Balance Sheet Strength

$1.2 billion in available liquidity

Staggered long-term maturities starting 2019 to 2024

Average interest rate of 6.2%

Long track record of maintaining financial flexibility

Available liquidity as of 9/30/2015 1

Revolver / Operating Facilities Availability

Cash

$1,166

$727

$439

1.Calculated as undrawn portion of revolver (adjusted for LCs outstanding) and cash

using CAD/USD exchange rate and balance sheet numbers as at 9/30/2015.

Available liquidity, adjusted for amendment of revolver post quarter end.

21

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)

22

6,987 employees completed training through Precision Tech centres in 2013 & 2014

23

Global recruitment

7 Countries

10 Provinces

50 States

Toughnecks program processed 44,461 applications and hired 4,013 people in 2014

90% retention target of key field positions

24

Safety & Operations

Training

Rig Build & Construction

Repair & Maintenance

Nisku Drilling Support Centre

25 Precision Super Triple rigs operating in Duvernay, 2015.

Fully Industrialized Development Drilling

Maximum Efficiency

Repeatability + Predictability

Risk Minimization

Technology Deployment

Long-term Economic Mindset

26

Completion & Production Segment: Full Well Cycle Exposure

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

Over 170 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

27

Focused International Footprint

Middle East 4 rigs in Saudi Arabia

2 rigs in Kurdistan

5 rigs in Kuwait

3 currently

2 to be deployed in early 2017

1 rig in Georgia

Focus on deep high pressure drilling

Specialized customer needs

Mexico 6 rigs in Mexico

Focus on IPM support

North America 129 Tier 1 Rigs in Canada

101 Tier 1 Rigs in U.S.

Focused on development drilling

28

International Revenue Growth

Inte

rna

tio

na

l R

eve

nu

e (

mil

lio

ns)

‘$20

‘$10

‘$0

$60

$70

‘$50

‘$40

‘$30

+18%

Q1’15 Q4’14 Q3’14 Q2’14 Q1’14 Q4’13 Q3’13 Q2’13 Q1’13 Q4’12 Q3’12 Q2’12 Q1’12 Q3’15 Q2’15

Initiated Saudi with 3 Rigs

Deployed additional 3 Rigs to Mexico

Initiated Kurdistan with 2 Rigs

Revenue

Late Q2 2014 - Initiated Kuwait with 2 Rigs

Deployed additional 1 rig

to Saudi

Initiated Georgia with 1 rig

Compounded Quarterly Growth Rate

Deployed additional 1 rig to

Kuwait

29

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

Unconventional Basins

• 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

1985-2005 Reservoir Drilling

2005-2010 Resource Drilling Emergence

2010-PRESENT Industrial Resource Drilling

30

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

31

1) As of October 22nd 2015 - Includes 1 newbuild for Canada to be delivered in Q4 2015 and 2 newbuild rigs for Kuwait to be delivered in early 2017, does not include prospective tier upgrades.

PD Tier 1 + Tier 2 & PSST 1

109 120144

188200

217238

140 126

126

108103 74

73

103 109 67 26 2422

22

2011 2013

327

355

313 322

2012

333

2015E

337

2014 2010 2009

352

Tier 1

PSST

Tier 2

32

Precision’s Tier 1 Super Series Fleet

High Performance Development Drilling Technology

INDUSTRY LEADING RIGS Delivering 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 loads 2) 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 2 Super Single

33

800, 525-8th Avenue S.W.

Calgary, Alberta, Canada T2P 1G1

Telephone: 403.716.4500

Facsimile: 403.264.0251

www.precisiondrilling.com