PRECISION DRILLING Corp

Internal Control Environment

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ensure that Management, in conjunction with the external auditor and Audit Services, provides to the Committee an annual assessment on the Corporation's control environment as it pertains to the Corporation's financial reporting process and controls;

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in coordination with the Corporate Governance, Nominating and Risk Committee’s oversight of risk, review annually (or as necessary) significant financial risks or exposures and assess the steps Management has taken to monitor, control, report and mitigate such risks to the Corporation, including the Corporation’s risk assessment and risk management policies such as use of financial derivatives and hedging activities;

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review significant findings prepared by the external auditor and Audit Services together with Management's responses;

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review, in consultation with Audit Services and the external auditor, the audit plans of Audit Services and the external auditor and enquire as to the extent the planned scope can be relied upon to detect weaknesses in internal controls, fraud or other illegal acts. The Committee will assess the coordination of audit efforts to assure completeness of coverage and the effective use of audit resources. Any significant recommendations made by the auditor for the strengthening of internal controls shall be reviewed and discussed with Management;

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review annually the administrative reporting protocol for the head of Audit Services;

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review annually the performance and compensation of Audit Services;

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review and approve the annual Audit Services internal audit plan and all major changes to the plan, the internal auditing budget and staffing;

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review the following issues with Management and the head of Audit Services:

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significant findings of the Audit Services group as well as Management’s response to them;

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any difficulties encountered in the course of their internal audits, including any restrictions on the scope of their work or access to required information;

Precision Drilling Corporation 2023 Annual Information Form 51

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compliance with the Institute of Internal Auditors’ Standards for the Professional Practice of Internal Auditing;

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review and annually approve the Audit Services Charter;

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approve the appointment, replacement or dismissal of the head of the Audit Services;

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direct the head of Audit Services to review any specific areas the Committee deems necessary;

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confirm and assure annually the independence of Audit Services and the external auditor;