CONSOLIDATED FINANCIAL STATEMENTS Consolidated Statements of Changes in Shareholders’ Equity $Thousands Attributable to the Shareholders of the Company Class A  Non-Voting  Shares Class B  Common  Shares Total  Class A and  Class B Shares Contributed  Surplus Accumulated  Other  Comprehensive  Income  (1) Retained Earnings  (1) Total Equity Balance at December 31, 2011  $ 21,942 $ 1,366 $ 23,308   $ 2,758 $ -  $174,704  200,770  Net income for the year - - - - - 28,755  28,755 Change in accounting policy  (IAS 19) - - - -  (21)  - (21) Shares repurchased  (140) -  (140) - -  (951)  (1,091) Stock options exercised 18 - 18 - - - 18 Stock options charged to expense - - -  302  - - 302 Dividends - - - - -  (5,038)  (5,038) Balance at December 31, 2012  $ 21,820 $ 1,366 $ 23,186   $ 3,060 $ (21) $197,470 $223,695  Net income for the year - - - - -  26,515   26,515  Remeasurement of pension  liability - - - -  109 - 109 Shares repurchased  (12) -  (12) - -  (126)  (138) Stock options exercised 734 - 734 (168) - -  566  Stock options charged to expense - - - 293 - - 293 Dividends - - - - -  (5,752)  (5,752) Balance at December 31, 2013  $ 22,542   $ 1,366   $ 23,908   $ 3,185  $ 88  $218,107  $245,288  (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.  34 AKITA DRILLING LTD.  ANNUAL REPORT