MANAGEMENT’S DISCUSSION AND ANALYSIS The Company remains well positioned in terms of drilling potential for shallow and deep natural gas and  heavy and conventional crude oil. AKITA has the experience, personnel and financial resources to increase its  presence in Western Canada. Further, AKITA has successfully demonstrated its ability to convert conventional  rigs into pad configurations and is also currently constructing its first slant-capable rig. AKITA’s strategy over  the past years has been to develop equipment and key relationships to effectively target specific market  opportunities. As at December 31, 2013, management evaluated, under the supervision of and with the participation of the  President and Chief Executive Officer (the “CEO”) and the Vice President, Finance and Chief Financial Officer  (the “CFO”), the effectiveness of the Company’s disclosure controls and procedures (“DC&P”) as defined under  National Instrument 52-109. Based on that evaluation, the CEO and CFO concluded that the Company’s DC&P  was effective as at December 31, 2013. From time to time AKITA makes forward-looking statements. These statements include but are not limited  to comments with respect to AKITA’s objectives and strategies, financial condition, results of operations, the  outlook for industry and risk management discussions. By their nature, these forward-looking statements involve numerous assumptions, inherent risks and  uncertainties, both general and specific, and therefore carry the risk that the predictions and other forward- looking statements will not be realized. Readers of this MD&A are cautioned not to place undue reliance on  these statements as a number of important factors could cause actual future results to differ materially from  the plans, objectives, estimates and intentions expressed in such forward-looking statements. Forward-looking statements may be influenced by factors such as the level of exploration and development  activity carried on by AKITA’s customers; world crude oil prices and North American natural gas prices;  weather; access to capital markets; and government policies. We caution that the foregoing list of factors is  not exhaustive and that while relying on forward-looking statements to make decisions with respect to AKITA,  investors and others should carefully consider the foregoing factors as well as other uncertainties and events  prior to making a decision to invest in AKITA. Except where required by law, the Company does not undertake  to update any forward-looking statement, whether written or oral, that may be made from time to time by it or  on its behalf. Additional information is provided by the Company in its Annual Information Form, Notice of Annual Meeting  and Information Circular all dated March 5, 2014. Copies of these documents including additional copies  of the Annual Report for the year ended December 31, 2013 may be obtained upon request from the Vice  President, Finance and Chief Financial Officer of the Company at 900, 311 – 6th Avenue S.W., Calgary, Alberta,  T2P 3H2 or at www.sedar.com. There are no announced upcoming accounting standards (IFRS) changes that will affect AKITA in the near term. Upcoming Accounting Standard Changes Other Information Disclosure Controls and Internal Controls Over Financial Reporting Forward-Looking Statements 28 AKITA DRILLING LTD.  ANNUAL REPORT