MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING  Management’s Responsibility for Financial Reporting The accompanying consolidated financial statements of AKITA Drilling Ltd., Management’s Discussion and  Analysis and other information relating to AKITA contained in this Annual Report are the responsibility of  management and have been approved by the Board of Directors. The consolidated financial statements  have been prepared in accordance with accounting policies detailed in the notes to the consolidated financial  statements and are in conformity with International Financial Reporting Standards (also referred to as “IFRS”)  using methods appropriate for the industry in which the Company operates. Where necessary, management  made estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure  of contingent assets and liabilities as at the date of the financial statements including estimates related  to transactions and operations that were incomplete at year-end, the useful lives of drilling rigs and other  assets, the measurement of the defined benefit pension liability and assumptions around future income tax  calculations. Financial information throughout this Annual Report is consistent with the consolidated financial  statements except as noted. Management ensures the integrity of the consolidated financial statements by maintaining a system of  internal control. This system of internal control is based on the control criteria framework of the Committee  of Sponsoring Organizations of the Treadway Commission published in their report titled, Internal Control  – Integrated Framework. The system is designed to provide reasonable assurance that transactions are  executed as authorized and accurately recorded; that assets are safeguarded; and that accounting records  are sufficiently reliable to permit the preparation of financial statements that conform in all material respects  with accounting principles generally accepted in Canada. The Company maintains disclosure controls and  procedures designed to ensure that information required to be disclosed in reports is disclosed, processed  and summarized and reported within specified time periods. Internal controls are monitored through self- assessments and are reinforced through a Code of Business Conduct, which sets forth the Company’s  commitment to conduct business with integrity, and within both the letter and the spirit of the law. PricewaterhouseCoopers LLP, the Company’s independent auditors, have conducted an examination of the  consolidated financial statements and have had full access to the Audit Committee. Their report appears on  page 31. The Board of Directors, through its Audit Committee comprised of three independent directors as defined  in National Instrument 52-110 – Audit Committees (“NI 52-110”), and one director who is exempt from the  independence requirements of NI 52-110, oversees management’s responsibilities for financial reporting. The Audit Committee meets regularly with management and the independent auditors to discuss auditing and  financial matters and to gain assurance that management is carrying out its responsibilities. 30 AKITA DRILLING LTD.  ANNUAL REPORT Karl A. Ruud  President and Chief Executive Officer  Murray J. Roth Vice President, Finance and Chief Financial Officer