CONSOLIDATED FINANCIAL STATEMENTS Consolidated Statements of Financial Position $Thousands December 31,  2013 December 31,  2012  (1) January 1,  2012  (1) Assets Current Assets Cash $ 13,998  $ 11,003   $ 14,553  Term deposits Note 5 5,000 -  9,500  Accounts receivable Note 6 42,342  60,004   45,427  Income taxes recoverable - 4,487 - Prepaid expenses and other 365  159   413  61,705  75,653   69,893  Non-current Assets Restricted cash Note 7 5,950  3,000   3,000  Other long term assets 1,017  921   826  Investments in joint ventures  Note 8 10,092  4,825   5,672  Property, plant and equipment Note 9 212,984  204,969   166,812  Total Assets $ 291,748  $ 289,368   $ 246,203  Liabilities Current Liabilities Accounts payable and accrued liabilities Note 10 $ 18,865  $ 43,089   $ 26,623  Deferred revenue 334  95   146  Dividends payable Note 18 1,439  1,255   1,262  Income taxes payable 422 -  3,269  21,060  44,439   31,300  Non-current Liabilities Financial instruments Note 6 106 - - Deferred income taxes Note 11 22,738  18,886   12,151  Pension liability Note 12 2,556  2,348   1,982  Total Liabilities 46,460  65,673   45,433  Shareholders’ Equity Class A and Class B shares Note 13 23,908  23,186   23,308  Contributed surplus 3,185  3,060   2,758  Accumulated other comprehensive income 88 (21) - Retained earnings 218,107  197,470   174,704  Total Equity 245,288  223,695   200,770  Total Liabilities and Equity $ 291,748  $ 289,368   $ 246,203  Director Director 32 AKITA DRILLING LTD.  ANNUAL REPORT Approved by the Board, (1) Certain comparative figures have been restated to conform with IFRS 11 and IAS 19 (Note 22).  The accompanying notes are an integral part of these consolidated financial statements. 