Precision Drilling : 2021 Management Information Circular

Letter to Shareholders from the

Chair of the Board of Directors and the President and CEO

to our Shareholders

This year's annual meeting of shareholders of Precision Drilling Corporation (Precision or the Company) will be held at 10:00 a.m. MDT on Thursday, May 13, 2021. In keeping with our safety focused culture and because of the public health impact of the novel coronavirus COVID-19(COVID-19), we will be holding this year's meeting in a virtual-only format via live webcast. At the meeting, you will have the opportunity to ask questions and vote on several matters. Attending the virtual meeting is your opportunity to receive an update on our 2020 performance and our strategic priorities going forward. Inside this Management Information Circular (the Circular), you will find important information and instructions about how to participate at our virtual annual meeting.

2020 was a year of global challenges driven by the COVID-19 pandemic, which had devasting impacts on worldwide health and economic activity. At Precision, we are committed to assisting in the global response to the COVID-19 pandemic and while continuing to deliver our High Performance, High Value services. We remain focused on preserving the health and safety of our employees and customers, while supporting local communities and ensuring our operations remain strong and resilient. With COVID-19 vaccines now available, we are hopeful for a global economic recovery, but remain cognizant of existing health- related challenges in the near-term. During this time, our top priority will continue to be the well-being of our employees and customers.

The COVID-19 pandemic has resulted in extreme volatility in global stock markets and major financial stress to governments and companies in all business sectors. In addition, the oil and natural gas industry experienced sharp declines in crude oil prices after the OPEC+ Alliance failed to reach an agreement on production limitations during the spring of 2020. Given these developments, we undertook swift actions to align our business with the unprecedented disruption on the supply/demand equation for oil, the resulting precipitous decline in commodity prices and substantial reductions to the capital spending plans of our customers.

Our Board of Directors (Board) and Management first responded to the COVID-19 pandemic by implementing comprehensive safety protocols to protect the health and welfare of Precision staff and stakeholders, including a swift introduction of our Infectious Disease Plan: COVID-19 (Infectious Disease Plan). We avoided any shut down or interruption in services during the year and executed a series of steps to substantially preserve cash and build liquidity levels. During the year, we proactively amended certain covenants on our senior credit facility through March 31, 2022 and achieved full-year cash savings of approximately $150 million, inclusive of a 32% reduction to our 2020 capital budget and reducing overall fixed costs by over 35%, with over $30 million in annualized G&A savings. We immediately eliminated all non-essential travel, entertaining and other discretionary spending and reduced the share repurchase activity under our Normal Course Issuer Bid program to maintain liquidity. In addition, all members of the Board voluntarily agreed to a 20% reduction in compensation. Our Chief Executive Officer (CEO) voluntarily agreed to a 20% reduction in base salary and all other executives received a 10% reduction of their base salaries.

Our corporate priorities reflect our commitment to improving profitability and cash flow in this uncertain global economic landscape. We are confident the significant investments we have made over the past several years in rig technologies development, fleet quality, and support systems have positioned the Company well to endure the current market volatility. We continue to strengthen our balance sheet by reducing debt levels with free cash flow and managing debt maturities while retaining a strong liquidity position. We are pleased that Precision exceeded the high end of our annual debt reduction targeted range for the third consecutive year, despite unprecedented industry turbulence in 2020.

Corporate Responsibility has been at the core of our business philosophy since Precision's formation. We have always been driven by innovation, creativity and an entrepreneurial spirit combined with our commitment to the safety of our employees, customers, and the environment. We manage Precision for the long-term by taking a responsible approach and prioritizing building a durable business that yields long-term value for our stakeholders.

We believe that hydrocarbons will be an essential component of the global energy supply for many years to come and the Company is well-positioned to responsibly compete with our peers in assisting our customers in developing these resources. Our investment in rig technologies has significantly improved efficiencies for our customers and provided practical solutions for reducing greenhouse gas (GHG) emissions at the well site. Precision also provides an extensive list of emission-reducing

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alternatives to our customers including bi-fuel systems, natural gas engines and lithium battery storage on our rigs. Furthermore, the Company has expanded its presence in alternative energy programs, most notably our involvement in a geothermal drilling project in western Canada.

We invite you to read a summary of our Corporate Responsibility activities and priorities, including our 2020 initiatives, beginning on page 33.

Please Read this Circular

This Circular includes important information that will help you decide how to vote your shares.

This year we are asking you to elect eight directors to the Board for a term of one year. All of our nominees are qualified and experienced and have agreed to stand for election. You can read about each nominee beginning on page 19.

You will also have a say on executive pay at the meeting. We hold this advisory vote every year so we can receive regular feedback from shareholders. Our compensation decisions are based on corporate, individual and relative performance. Precision's incentive plans are carefully designed to support our high governance standards and pay-for-performance philosophy. In 2020, we temporarily reduced executive base salaries and Board annual retainers as part of our cash preservation efforts based on the current state of the market and feedback received from shareholders. Prior to the pandemic in 2020, we made more permanent changes to our executive compensation program in response to feedback from our shareholders, including implementing a negative total shareholder return (TSR) collar for performance share units (PSUs); adding the S&P 500 Index to our 2020 PSU peer group; applying a payout cap of five times the original grant for the 2020 PSUs; and ceasing the granting of stock options. You can read more about the changes we made for 2020 in the message from the Chair of the Human Resources and Compensation Committee beginning on page 63, and the compensation discussion and analysis section beginning on page 66.

Our leadership team has been executing the strategy we believe best positions Precision to withstand this challenging and volatile market environment and achieve long-term growth. We ask that you take some time to read this Circular and continue to support us by voting 'FOR' all resolutions.

Your Vote Is Important

You can vote your shares by attending the virtual meeting or using the enclosed proxy form or voting instruction form to vote by proxy. If you have any questions about voting, please contact our proxy solicitor, Kingsdale Advisors, at 1.888.518.1560 (toll free in North America) or 416.867.2272 (to call collect from outside North America). You may also send an email to [e-mail].

In Closing

These are particularly challenging times for the world and we appreciate the hard work and dedication of our Passionate People across the Precision organization. We have complete confidence in the value created by our adherence to Precision's Core Values, the deployment of our Super Series rig fleet and Alpha suite of technologies, and our operational support systems.

We are extremely proud of our standing as a leading North American drilling company with global diversification, a strong liquidity position and an excellent customer base. We have an experienced management team committed to our stakeholders and dedicated to growing equity value for our shareholders. We are confident in Precision's ability to successfully navigate through any challenges and opportunities in 2021, while continuing to strengthen our position as a leading provider of services to the oil and natural gas industry.

Please remember to vote. We thank you for your continued confidence and look forward to the virtual meeting on May 13, 2021, which will be available at https://web.lumiagm.com/456874580.

Sincerely,

Steven W. Krablin	Kevin A. Neveu
Chair of the Board of Directors	President and Chief Executive Officer

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NOTICE OF OUR 2021 ANNUAL MEETING OF SHAREHOLDERS

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