NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Reconciliation of Net Income and Comprehensive Income For the Year ended December 31, 2012 (1) IFRS 11 “Joint Arrangements” (2) IAS 19 (Revised 2011) “Employee Benefits” 63 AKITA DRILLING LTD.  ANNUAL REPORT Adjustments for changes in accounting policies $Thousands except per share amounts Before  Accounting  Policy  Changes IFRS 11  (1) IAS 19  (2) After  Accounting  Policy  Changes Revenue  $ 239,654   $ (36,214) $ -  $ 203,440  Costs and expenses Operating and maintenance 159,458  (21,604) -  137,854  Depreciation and amortization 24,342 -  - 24,342 Selling and administrative 19,012  (481)  (69)  18,462  Total costs and expenses  202,812   (22,085)  (69)  180,658  Revenue less costs and expenses  36,842   (14,129)  69  22,782  Equity income from joint ventures -  14,163 - 14,163 Other income (losses) Interest income  420   (35) -  385  Interest expense  (4) -  -  (4) Gain on sale of joint venture interests in rigs  and other assets  1,082  -  -  1,082  Net other gains  5 -  -  5  Total other income   1,503   (35) -  1,468  Income before income taxes  38,345   (1)  69  38,413  Income taxes 9,641 -   17 9,658 Net income for the year attributable  to shareholders   28,704   (1)  52  $ 28,755  Other comprehensive income -  -  (21)  (21) Net income and comprehensive  income for the year attributable to  shareholders  $ 28,704 $ (1)  $ 31  $ 28,734 Earnings per Class A and Class B  Share  Basic  $ 1.60  $ (0.00) $ 0.00  $ 1.60 Diluted  $ 1.60  $ (0.00) $ 0.00  $ 1.60 