Precision Drilling : 2022 Management Information Circular

LETTER TO SHAREHOLDERS

This year's Annual and Special Meeting of Shareholders of Precision Drilling Corporation will be held at 10:00 a.m. MDT on Thursday, May 12, 2022. Due to pandemic related travel restrictions and public health concerns, 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 provides you with the opportunity to receive an update on our 2021 performance and our strategic priorities going forward. Inside this Circular, you will find important information and instructions about how to participate at our virtual meeting.

The strategic decisions we executed during the 2020 industry collapse and in 2021 not only addressed severe near-term challenges, but also ensured the Company was well positioned to capture opportunities emerging from an industry recovery. The Precision team took action and successfully addressed pandemic-related challenges associated with employee safety, service delivery, cost management and balance sheet preservation, while never losing focus on the health of our operations and ability to respond to demand increases for our High Performance, High Value services. To this end, we have strengthened our balance sheet and expanded our AlphaTM technologies and emissions-reducing solutions, recently branded as EverGreenTM. We will focus on retaining our highly skilled field personnel and critical office staff, maintaining our Super Series equipment and enhancing our key customer relationships, resulting in an organization well-positioned for an improving market during 2022.

In 2021, global energy demand began to recover from the 2020 pandemic-related collapse with the recovery periodically delayed by resurgent virus strains throughout the year. Ultimately, the combination of increased oil and natural gas demand and the multi-year period of upstream underinvestment resulted in strengthening commodity prices in the second half of the year, providing a positive backdrop for the oilfield services sector. In Canada, industry activity surpassed pre-pandemic levels as takeaway capacity continued to improve, price differentials shrank, and the preparation for liquified natural gas (LNG) exports progressed. In the U.S., the active rig count gradually rose throughout the year as some producers looked to develop and produce existing fields while exercising stringent capital discipline and prioritizing shareholder returns. We believe our customers' increased focus on shareholder returns is largely responsible for a breakdown in the traditional correlation between commodity prices and drilling activity, yet we believe this focus will result in a stronger and healthier energy industry over the longer term. Internationally, oilfield activity remained steady with several investment decisions deferred to 2022, providing a base of pent-up demand for oilfield services.

Precision focused on three strategic priorities in 2021: 1) expanding our digital leadership position; 2) maximizing operating leverage and strengthening our balance sheet; and 3) ensuring our growing ESG initiatives were recognized as a key competitive differentiator. Management has consistently succeeded in achieving the targets set out in our annual strategic priorities.

We succeeded in delivering on these priorities. We leveraged our high-quality, digitally-enabled Super Series fleet and lean cost structure to generate cash flow and reduce debt by $115 million, achieving approximately $665 million in debt reduction since the beginning of 2018. Furthering our AlphaTM digital strategy, Precision ended the year with 47 AlphaTM enabled Super Triple drilling rigs and increased paid AlphaAutomationTM days of 123% year-over-year. Finally, in addition to publishing our 2nd Corporate Responsibility Report and achieving several internal ESG milestones, Precision launched the EverGreenTM brand of environmental solutions and experienced strong uptake from customers in various emissions reducing and emissions tracking technologies. We invite you to read more about our Corporate Responsibility activities and priorities beginning on page 50.

The Russian invasion of Ukraine is producing a humanitarian tragedy resulting in unimaginable suffering for millions of people. As of the end of March 2022, the war continues and several countries have instituted severe economic sanctions upon Russia with the goal to reduce Russia's capacity to participate in the global economy. These sanctions, combined with Russia's decisions to limit exports of certain goods and commodities, and physical disruption of supply lines due to warfare, have challenged global supply chains across numerous industries. The supply chain disruptions accelerated existing price increases as economies continue to emerge from the COVID-19 pandemic, prompting worldwide inflation concerns. Although the outcome and long-term impact of the war is unknown, we recognize potential real-time and future impacts on our business. Outside of the Middle East, we do not have operations in Asia. Further, we do not operate in Russia, Ukraine or other countries in Europe. However, we are actively monitoring and taking action to reduce the impact of these disruptions on our ability to provide services to our customers.

Precision's management and Board believe the Company is well-positioned to capitalize on the improving energy industry and opportunities for the oilfield services sector in 2022. Precision's strategic focus on Super Series equipment, investing in our people, and commercially deploying digital and emissions reducing technologies will continue to serve as competitive differentiators as we address a more active market.

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 25.

You will also have an opportunity to participate in our 'say-on-pay' advisory vote. We have held this advisory vote every year since 2011 as we believe it is an important way to engage our shareholders and to receive direct and regular feedback on our approach to executive compensation. Historically, we have received consistently high shareholder voter turnout and strong support. However, in 2021 our advisory vote received only 42% shareholder support, with only 52% of the shares outstanding voting. Our Board and Human Resources and Compensation Committee (HRCC) consider this result to be unacceptable and have taken actions to re-engage with shareholders and adjust our compensation plans. As a result of feedback received from shareholders, we made several changes to executive compensation in 2021. You can read more about these changes in the message from the Chair of the Human Resources and Compensation Committee beginning on page 59, and the compensation discussion and analysis section beginning on page 63.

You will also vote on the reconfirmation and continuation of our shareholder rights plan and on the approval of amendments to our Omnibus Equity Incentive Plan (Omnibus Plan).

In 2019, shareholders approved our amended and restated shareholder rights plan, that must be reconfirmed every three years to continue. You can read more about our shareholder rights plan beginning on page 18.

Our Omnibus Plan was approved by shareholders in 2017, and we are seeking shareholder approval to amend the Omnibus Plan to increase the number of common shares available for issuance by 200,000 common shares (which is 1.47% of the current outstanding shares) and make other changes described in this Circular. You can read more about the proposed amendments to the Omnibus Plan beginning on page 21.

Your Vote Is Important

Your vote is very important to us. This is your opportunity to voice your opinion and vote on matters of key importance to our Company.

No matter how many shares you own, you can vote your shares by attending the virtual meeting, 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, TMX Investor Solutions Inc. (toll-free in North America) 1.800.761.6578 or 1.201.806.7301 (to call collect from outside North America). You may also send an email [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, AlphaTM technologies, EverGreenTM suite of environmental solutions, 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 2022, 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 12, 2022, which will be available athttps://web.lumiagm.com/275227875.

Sincerely,

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Steven W. Krablin

Kevin A. Neveu

Chair of the Board of Directors

President and Chief Executive Officer

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NOTICE OF OUR 2022 ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS