MANAGEMENT’S DISCUSSION AND ANALYSIS Class A and Class B Share Dividends Class A Non-Voting and Class B Common Shares Issued During 2013, AKITA declared dividends totalling $5,752,000 ($0.32 per share) on its Class A Non-Voting  shares and Class B Common shares, compared to $5,038,000 ($0.28 per share) for 2012. The payment of  any dividends is at the discretion of the Board of Directors and depends upon the financial condition of AKITA  and other factors. Since the inception of the quarterly dividend program in 1997, dividends have been paid in  each quarter of every year. The most recent dividend was declared on March 5, 2014 with a dividend rate of  $0.085 per share. Authorized An unlimited number of Series Preferred shares, issuable in series, designated as First Preferred Shares,  no par value An unlimited number of Series Preferred shares, issuable in series, designated as Second Preferred Shares,  no par value An unlimited number of Class A Non-Voting Shares An unlimited number of Class B Common Shares At March 5, 2014, the Company had 16,298,277 Class A Non-Voting shares and 1,653,784 Class B Common  shares outstanding. At that date, there were also 447,000 stock options outstanding, of which 240,100 were  exercisable. Per Share 2013 2012 Change % Change Dividends per share ($) 0.32 0.28 0.04 14% Class A Non-Voting Class B Common Total $Thousands Number of Shares Consideration Number of Shares Consideration Number of Shares Consideration January 1, 2012 16,376,421 21,942 1,653,884 1,366 18,030,305 23,308 Shares repurchased in 2012 (104,179) (140) - - (104,179) (140) Stock options exercised in 2012 2,000 18 - - 2,000 18 December 31, 2012 16,274,242 21,820 1,653,884 1,366 17,928,126 23,186 Shares repurchased in 2013 (9,065) (12) - - (9,065) (12) Stock options exercised in 2013 54,200 734 - - 54,200 734 Conversions Class B to Class A 100 - (100) - - - December 31, 2013 16,319,377 22,542 1,653,784 1,366 17,973,261 23,908 Exercisable options at Dec. 31, 2013 240,100 Unexercisable options at Dec. 31, 2013 206,900 21 AKITA DRILLING LTD.  ANNUAL REPORT