PRECISION DRILLING Corp

Purpose

The purpose of this document is to establish the terms of reference of the Audit Committee (the Committee) of Precision Drilling Corporation (the Corporation). The Committee is a permanent committee of the Board of Directors of the Corporation (the Board of Directors) appointed to assist the Board of Directors in fulfilling its oversight responsibilities with respect to financial reporting by the Corporation. Responsibility for accounting for transactions and internal control over financial reporting lies with senior management (Management) of the Corporation.

The requirement to have an audit committee is established in Section 171 of the Business Corporations Act (Alberta) and, in addition, is required pursuant to National Instrument 52-110 – Audit Committees, as adopted by the Canadian Securities Administrators and the United States Securities Exchange Act of 1934 (the Exchange Act), as amended for issuers listed on the New York Stock Exchange (the NYSE).

The Committee shall assist the Board of Directors in fulfilling its oversight responsibilities with respect to:

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the integrity of financial reporting to the Shareholders of the Corporation (the Shareholders) and to the Corporation’s other stakeholders including investors, customers, suppliers and employees;

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the integrity of the accounting and financial reporting process and system of controls, including the internal and external audit processes;

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the Corporation’s compliance with legal and regulatory requirements as they relate to financial reporting matters;

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the external auditor’s qualifications and independence;