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<SEC-DOCUMENT>0000950129-09-000152.txt : 20090122
<SEC-HEADER>0000950129-09-000152.hdr.sgml : 20090122
<ACCEPTANCE-DATETIME>20090121200619
ACCESSION NUMBER:		0000950129-09-000152
CONFORMED SUBMISSION TYPE:	F-10
PUBLIC DOCUMENT COUNT:		8
FILED AS OF DATE:		20090122
DATE AS OF CHANGE:		20090121

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PRECISION DRILLING TRUST
		CENTRAL INDEX KEY:			0001013605
		STANDARD INDUSTRIAL CLASSIFICATION:	DRILLING OIL & GAS WELLS [1381]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			A0
		FISCAL YEAR END:			0430

	FILING VALUES:
		FORM TYPE:		F-10
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-156844
		FILM NUMBER:		09537719

	BUSINESS ADDRESS:	
		STREET 1:		150 - 6TH AVENUE S.W.
		STREET 2:		SUITE 4200
		CITY:			CALGARY
		STATE:			A0
		ZIP:			T2P 3Y7
		BUSINESS PHONE:		403-264-0251

	MAIL ADDRESS:	
		STREET 1:		150 - 6TH AVENUE S.W.
		STREET 2:		SUITE 4200
		CITY:			CALGARY
		STATE:			A0
		ZIP:			T2P 3Y7

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PRECISION DRILLING CORP
		DATE OF NAME CHANGE:	19960506
</SEC-HEADER>
<DOCUMENT>
<TYPE>F-10
<SEQUENCE>1
<FILENAME>h65377fv10.htm
<DESCRIPTION>FORM F-10 - REGISTRATION STATEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>fv10</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>As filed with the
Securities and Exchange Commission on January 21, 2009</B>

</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 0pt"><B>Registration
No.&nbsp;333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>
</DIV>


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM F-10</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>REGISTRATION STATEMENT UNDER<BR>
THE SECURITIES ACT OF 1933</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>PRECISION DRILLING TRUST</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of Registrant as specified in its charter<B>)</B></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Alberta, Canada</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>1381</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Not Applicable</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Province or other jurisdiction of
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Primary Standard Industrial
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer Identification Number)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Classification Code Number)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>4200, 150-6th Avenue S.W., Calgary, Alberta, Canada T2P 3Y7, (403)&nbsp;716-4500</B><BR>
(Address and telephone number of Registrant&#146;s principal executive offices)<BR>
<BR>
<B>CT Corporation System, 350 North St. Paul Street, Dallas, Texas 75201, (214)&nbsp;979-1172</B><BR>
(Name, address, and telephone number of agent for service in the United States)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Copies to:</B></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>David W. Wehlmann</B><BR>
Precision Drilling Trust <BR>
10370 Richmond Avenue, <BR>
Suite&nbsp;600<BR>
Houston, Texas 77042<BR>
(713)&nbsp;435-6100<BR>
Fax: (713)&nbsp;435-6171
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Robert F. Gray, Jr.<BR>
William S. Moss III</B><BR>
Mayer Brown LLP<BR>
700 Louisiana Street, Suite&nbsp;3400<BR>
Houston, Texas 77002<BR>
(713)&nbsp;238-3000<BR>
Fax: (713)&nbsp;238-4600
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Jon C. Truswell</B><br> Bennett Jones LLP<BR>
4500 Bankers Hall East<BR>
855 2nd Street SW<BR>
Calgary, Alberta, Canada<BR>
T2P 4K7<BR>
(403)&nbsp;298-3100<BR>
Fax: (403)&nbsp;265-7219</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Christopher J. Cummings</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Pat C. Finnerty</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Shearman &#038; Sterling LLP
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Blake, Cassels &#038; Graydon LLP</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Commerce Court West
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">855 &#151; 2nd Street S.W., Suite&nbsp;3500</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Suite&nbsp;4405, 199 Bay Street
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Bankers Hall East Tower</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Toronto, Ontario, Canada
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Calgary, Alberta, Canada</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">M5L 1E8
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">T2P 4J8</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(416) 360-8484
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">( 403) 260-9600</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Fax: <I>(</I>416) 360-2958
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Fax: (403)&nbsp;260-9700</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Approximate date of commencement of proposed sale of the securities to the public:<BR>
As soon as practicable after this Registration Statement is declared effective.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Province of Alberta, Canada</B><BR>
(Principal jurisdiction regulating this offering)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">It is proposed that this filing shall become effective (check appropriate box):
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">A.&nbsp;&nbsp;</TD>
    <TD width="1%"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD> upon filing with the Commission, pursuant to Rule 467(a) (if in connection with an offering being made contemporaneously in
the United States and Canada).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">B.</TD>
    <TD width="1%"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD> at some future date (check appropriate box below):</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%"><FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;</TD>
    <TD> pursuant to Rule 467(b) on at (designate a time not sooner than seven calendar
days after filing).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD> pursuant to Rule 467(b) on at (designate a time seven calendar days or sooner
after filing) because the securities regulatory authority in the review jurisdiction has
issued a receipt or notification of clearance on .</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD> pursuant to Rule 467(b) as soon as practicable after notification of the
Commission by the Registrant or the Canadian
securities regulatory authority of the review jurisdiction that a receipt or notification of
clearance has been issued with respect hereto.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD> after the filing of the next amendment to this Form (if preliminary material is
being filed).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any of the securities being registered on this Form are to be offered on a delayed or
continuous basis pursuant to the home jurisdiction&#146;s shelf
prospectus offering procedures, check the following box:
<FONT face="Wingdings">&#254;</FONT>
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALCULATION OF REGISTRATION FEE</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
</TR><TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="15" style="border-bottom: 3px double #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Proposed maximum</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Proposed maximum</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount to</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>offering price</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>aggregate</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount of</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="center"><B>Title of each class of securities to be registered</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>be registered (1) (2) (3)</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>per Security</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>offering price (2)</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>registration fee</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
                    <TD style="border-top: 2px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Trust Units</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Debt Securities</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Warrants</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Subscription Receipts</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000"><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>

<TD align="center" valign="bottom" style="border-top: 2px solid #000000">U.S.$800,000,000</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="center" valign="bottom" style="border-top: 2px solid #000000">100%</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>

<TD align="center" valign="bottom" style="border-top: 2px solid #000000">U.S.$800,000,000</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>

<TD align="center" valign="bottom" style="border-top: 2px solid #000000">U.S.$31,440</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="15" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<DIV style="margin-top: 3pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>In U.S. dollars or the equivalent thereof in foreign denominated currencies or currency units.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Estimated solely for purposes of calculating the registration fee. There are being registered
under this Registration Statement such indeterminate number of Trust Units (as hereinafter
defined) of the Registrant, such indeterminate number of debt securities of the Registrant,
such indeterminate number of warrants of the Registrant and such indeterminate number of
subscription receipts of the Registrant as shall have an aggregate initial offering price not
to exceed U.S.$800,000,000. The securities registered hereunder may be sold separately or as units
with other securities registered hereunder.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Based upon a proposed maximum offering price of
Cdn$800,000,000 at an exchange rate of Cdn$1.2604&nbsp;per
U.S.$1.00, the noon buying rate in New York City on January&nbsp;20, 2009 for cable transfers in
Canadian dollars as certified for customs purposes by the Federal Reserve Bank of New York.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Registrant hereby amends this Registration Statement on such date or dates as may be
necessary to delay its effective date until the Registration Statement shall become effective as
provided in Rule&nbsp;467 under the Securities Act of 1933, as amended, or on such date as the
Commission, acting pursuant to Section 8(a) of the Act, may determine.</B>
</DIV>



<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- TOC -->
<!-- /TOC -->


<!-- link1 "PART I" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">PART I
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INFORMATION REQUIRED TO BE<BR>
DELIVERED TO OFFEREES OR PURCHASERS</B>

</DIV>

<P align="RIGHT" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Information contained herein is subject to completion or amendment. A registration statement
relating to these securities has been filed with the Securities and Exchange Commission. These
securities may not be sold nor may offers to buy be accepted prior to the time the registration
statement becomes effective. This prospectus shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these securities in any State in
which such offer, solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such State.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Subject
to Completion, dated January 21, 2009</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><IMG src="h65377h6537703.gif" alt="(PRECISION DRILLING TRUST LOGO)">

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>$800,000,000</B></DIV>
<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Trust Units<BR>
Debt Securities<BR>
Warrants<BR>
Subscription Receipts</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Precision Drilling Trust (the &#147;<B>Trust</B>&#148;) may offer and issue, from time to time: (i)&nbsp;trust units
(the &#147;<B>Trust Units</B>&#148;); (ii)&nbsp;any bonds, debentures, notes or other evidences of indebtedness of any
kind, nature or description (the &#147;<B>Debt Securities</B>&#148;); (iii)&nbsp;warrants to purchase Trust Units and
warrants to purchase Debt Securities (the &#147;<B>Warrants</B>&#148;); and (iv)&nbsp;subscription receipts of the Trust
(the &#147;<B>Subscription Receipts</B>&#148; and together with the foregoing, collectively,
the &#147;<B>Securities</B>&#148;) of up
to $800,000,000 aggregate initial offering price of Securities (or the equivalent thereof in
one or more foreign currencies or composite currencies, including United States dollars during the
25&nbsp;month period that this
prospectus, including any amendments thereto, is valid. Securities may be offered separately or
together, in amounts, at prices and on terms to be determined based on market conditions at the
time of sale and set forth in one or more shelf prospectus supplements (each, a &#147;<B>Prospectus
Supplement</B>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The specific terms of the Securities with respect to a particular offering will be set out in
the applicable Prospectus Supplement and may include, where applicable: (i)&nbsp;in the case of Trust
Units, the number of Trust Units offered, the issue price (in the event the offering is a fixed
price distribution) and any other terms specific to the Trust Units being offered; (ii)&nbsp;in the case
of Debt Securities, the specific designation, aggregate principal amount, the currency or the
currency unit for which the Debt Securities may be purchased, the maturity, interest provisions,
authorized denominations, offering price, covenants, events of default, any terms for redemption or
retraction, any exchange or conversion terms, whether the debt is senior or subordinated and any
other terms specific to the Debt Securities being offered; (iii)&nbsp;in the case of Warrants, the
designation, number and terms of the Trust Units or Debt Securities purchasable upon exercise of
the Warrants, any procedures that will result in the adjustment of these numbers, the exercise
price, dates and periods of exercise, the currency in which the Warrants are issued and any other
specific terms; and (iv)&nbsp;in the case of Subscription Receipts, the number of Subscription Receipts
offered, the issue price, the terms, conditions and procedures for the conversion or exercise of
such Subscription Receipts into or for Trust Units or other securities or pursuant to which the
holders thereof will become entitled to receive Trust Units or such other securities, and any other
terms specific to the Subscription Receipts being offered. Where required by statute, regulation
or policy, and where Securities are offered in currencies other than Canadian dollars, appropriate
disclosure of foreign exchange rates applicable to such Securities will be included in the
Prospectus Supplement describing such Securities. The Trust may also include in a Prospectus
Supplement specific terms pertaining to the Securities which are not within the options and
parameters set forth in this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All shelf information permitted under applicable laws to be omitted from this prospectus will
be contained in one or more Prospectus Supplements that will be delivered to prospective purchasers
together with this prospectus. Each Prospectus Supplement will be deemed to be incorporated by
reference into this prospectus as of the date of the
Prospectus Supplement and only for the purposes of the offering of Securities to which the
Prospectus Supplement pertains.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Prospective investors should be aware that the acquisition of Securities may have tax
consequences both in Canada and the United States. Such consequences for investors who are
resident in, or citizens of, the United States may not be described fully herein. Prospective
investors should read the tax discussion, if any, in the applicable Prospectus Supplement and
consult with a tax advisor.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Trust is permitted, under a multi-jurisdictional disclosure system adopted by the United
States and Canada, to prepare this prospectus in accordance with Canadian disclosure requirements.
Prospective investors should be aware that such requirements are different from those of the United
States. The Trust has prepared its financial statements in accordance with Canadian GAAP (as
defined herein) and is subject to Canadian auditing and auditor independence standards. Therefore,
the Trust&#146;s financial statements may not be comparable to the financial statements of United States
companies in certain respects.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The enforcement by investors of civil liabilities under United States federal securities laws
may be affected adversely by the fact that the Trust has been settled under the laws of Canada,
that some or all of the trustees of the Trust and the directors and officers of Precision Drilling
Corporation (&#147;Precision&#148;), the administrator of the Trust, are residents of Canada and that all or
a significant portion of the assets of the Trust and said persons may be located outside of the
United States.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Neither the Securities and Exchange Commission (the &#147;SEC&#148;) nor any state or provincial
securities commission or similar regulatory authority has approved or disapproved of these
securities, or passed upon the adequacy or accuracy of this prospectus. Any representation to the
contrary is a criminal offence.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus constitutes a public offering of the Securities only in those jurisdictions
where they may be lawfully offered for sale and therein only by persons permitted to sell such
Securities. The Trust may offer and sell Securities to or through underwriters or dealers and also
may offer and sell certain Securities directly to other purchasers or through agents. A Prospectus
Supplement relating to each issue of Securities offered thereby will set forth the names of any
underwriters, dealers or agents involved in the sale of such Securities and the compensation of any
such underwriters, dealers or agents. Except as set out in a Prospectus Supplement relating to a
particular offering of Securities in connection with any offering of Securities, the underwriters,
dealers or agents, as the case may be, may over-allot or effect transactions intended to fix or
stabilize the market price of the Trust Units at a level above that which might otherwise prevail
in the open market. Such transactions, if commenced, may be discontinued at any time. See &#147;Plan of
Distribution&#148;. The issued and outstanding Trust Units of the Trust are listed on the Toronto Stock
Exchange (the &#147;<B>TSX</B>&#148;) under the symbol &#147;<B>PD.UN</B>&#148; and on the New York Stock Exchange (the &#147;<B>NYSE</B>&#148;) under
the symbol &#147;<B>PDS</B>&#148;. <B>No underwriter, dealer or agent in Canada or the United States has been involved
in the preparation of this prospectus or performed any review of the contents of this prospectus.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any offering of Debt Securities, Warrants or Subscription Receipts would be a new issue of
securities. <B>There is no market through which the Debt Securities, Warrants or Subscription Receipts
may be sold and purchasers may not be able to resell the Debt Securities, Warrants or Subscription
Receipts purchased under this prospectus or any Prospectus Supplement. This may affect the pricing
of the Debt Securities, Warrants or Subscription Receipts in the secondary market (if any), the
transparency and availability of trading prices (if any), the liquidity of the Debt Securities,
Warrants or Subscription Receipts (if any), and the extent of issuer regulation. See &#147;Risk
Factors&#148;</B>. Unless otherwise specified in the applicable Prospectus Supplement, the Debt Securities,
Warrants or Subscription Receipts will not be listed on any securities exchange.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A return on an investment in Trust Units is not comparable to the return on an investment in a
fixed-income security. The recovery of an initial investment in Trust Units is at risk, and the
anticipated return on such investment is based on many performance assumptions. <B>Although the Trust
intends to make distributions of available cash flow to holders of Trust Units (&#147;Unitholders&#148;),
these cash distributions are not guaranteed and may be reduced, suspended or eliminated. </B>The
actual amount distributed will depend on numerous factors including: the financial performance of
the Trust&#146;s operating subsidiaries, debt obligations, working capital requirements and future
capital requirements. In addition, the market value of the Trust Units may decline if the Trust&#146;s
cash distributions decline in the future, and that market value decline may be material.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>An investment in the Securities involves risks. See &#147;Risk Factors&#148;.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The after tax return from an investment in Trust Units to Unitholders subject to Canadian
income tax can be made up of both a return on capital and a return of capital. That composition
may change over time, thus affecting an investor&#146;s after tax return. Subject to certain amendments
to the <I>Income Tax Act </I>(Canada) (the &#147;<B>Tax Act</B>&#148;) made effective on October&nbsp;31, 2006 (the &#147;<B>SIFT
Rules</B>&#148;<B>)</B>, returns on capital generally are taxed as ordinary income in the hands of a Unitholder who
is resident in Canada for purposes of the Tax Act. Pursuant to the SIFT Rules, commencing January
1, 2011 (provided the Trust only experiences &#147;normal growth&#148; before then) certain distributions
from the Trust which otherwise would have been taxed as ordinary income generally will be
characterized as dividends and the Trust will be subject to tax at corporate rates on the amount of
those distributions. Returns of capital generally are not required to be (and under the SIFT Rules
will continue to not be required to be) included in income for Unitholders who are resident in
Canada for purposes of the Tax Act, but rather reduce the adjusted cost base of such Unitholder&#146;s
Trust Unit(s) for purposes of the Tax Act. Distributions of income to a Unitholder who is not
resident in Canada for purposes of the Tax Act, or that is a partnership that is not a &#147;Canadian
partnership&#148; for purposes of the Tax Act, generally will be subject to Canadian withholding tax.
Prospective investors should consult their own tax advisors with respect to the Canadian income tax
considerations applicable in their own circumstances. See &#147;Risk Factors&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Trust Units are not &#147;deposits&#148; within the meaning of the </B><B><I>Canada Deposit Insurance
Corporation Act </I></B><B>(Canada) and are not insured under the provisions of that Act or any other
legislation. Furthermore, the Trust is not a trust company and, accordingly, it is not registered
under any trust and loan company legislation as it does not carry on or intend to carry on the
business of a trust company.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The offering of Securities hereunder is subject to approval of certain legal matters on behalf
of the Trust by Bennett Jones LLP, Calgary, Alberta, Felesky Flynn LLP, Calgary, Alberta and Mayer
Brown LLP, Houston, Texas.
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>
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<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="95%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'>ABOUT THIS PROSPECTUS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'>EXCHANGE RATE INFORMATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'>WHERE YOU CAN FIND MORE INFORMATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'>DOCUMENTS FILED AS PART&#160;OF THE REGISTRATION
    STATEMENT</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'>FORWARD-LOOKING STATEMENTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'>DOCUMENTS INCORPORATED BY REFERENCE</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'>PRECISION DRILLING TRUST</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'>RECENT DEVELOPMENTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#109'>Acquisition of Grey Wolf, Inc.</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#110'>Goodwill</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#111'>General</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'>USE OF PROCEEDS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'>CONSOLIDATED CAPITALIZATION OF THE TRUST</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'>PRIOR SALES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#115'>Prior Sales</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#116'>Price Range and Trading Volume of the
    Trust&#160;Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#117'>DISTRIBUTIONS TO UNITHOLDERS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#118'>MATERIAL DEBT</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#119'>Secured Facility</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#120'>Bridge Facility</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#121'>General</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#122'>PLAN OF DISTRIBUTION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#123'>DESCRIPTION OF TRUST&#160;UNITS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#124'>Issuance of Trust&#160;Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#125'>Purchase of Trust&#160;Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#126'>Trust&#160;Unit Redemption&#160;Right</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#127'>Meetings of Unitholders</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#128'>Limitation on Non-Resident Ownership</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#129'>Amendments to the Declaration of Trust</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#130'>Term of the Trust</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#131'>Take-Over Bids</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#132'>DESCRIPTION OF DEBT SECURITIES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#133'>General</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#134'>Ranking</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#135'>Registration of Debt Securities</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#136'>Debt Securities in Certificated Form</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#137'>DESCRIPTION OF WARRANTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#138'>Trust&#160;Unit Warrants</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#139'>Debt Warrants</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#140'>SUBSCRIPTION RECEIPTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#141'>RISK FACTORS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#142'>Risks Relating to the Structure of the Trust</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#143'>Risks Relating to the Securities</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#144'>Risks Relating To The Business Currently
    Conducted By Precision</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#145'>Risks Relating to the Acquisition</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#146'>ENFORCEABILITY OF CIVIL LIABILITIES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#147'>STATUTORY RIGHTS OF WITHDRAWAL AND RESCISSION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#148'>INTEREST OF EXPERTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#149'>AUDITORS&#146; CONSENT</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43
</TD>
<TD>&nbsp;
</TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ABOUT
    THIS PROSPECTUS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless the context otherwise requires, all references in this
    prospectus to the &#147;Trust&#148; mean Precision Drilling
    Trust and, where the context requires, includes the Trust and
    all of its consolidated subsidiaries and any partnership of
    which the Trust and its subsidiaries are the partners.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise specifically stated, all financial information
    included and incorporated by reference in this prospectus is
    determined using Canadian generally accepted accounting
    principles, referred to as &#147;<B>Canadian GAAP</B>&#148;.
    &#147;<B>U.S.&#160;GAAP</B>&#148; means generally accepted
    accounting principles in the United States. The Trust prepares
    its financial statements in accordance with Canadian GAAP, which
    differs from U.S.&#160;GAAP. Therefore, the Trust&#146;s
    financial statements included and incorporated by reference in
    this prospectus may not be comparable to financial statements
    prepared in accordance with U.S.&#160;GAAP. Prospective
    investors should refer to note&#160;16 of the Trust&#146;s
    consolidated financial statements as at and for the year-ended
    December&#160;31, 2007 and the Interim GAAP&#160;Reconciliation
    (as defined herein) for a discussion of the principal
    differences between the Trust&#146;s financial results and
    financial condition determined under Canadian GAAP and under
    U.S.&#160;GAAP.
</DIV>
<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXCHANGE
    RATE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In this prospectus, references to &#147;<B>dollars</B>&#148;,
    &#147;<B>$</B>&#148;, and &#147;<B>Cdn.$</B>&#148; are to
    Canadian dollars, and references to &#147;<B>U.S.$</B>&#148; and
    &#147;<B>U.S.&#160;dollars</B>&#148; are to United States
    dollars. The exchange rate between the Canadian dollar and the
    United States dollar used in this prospectus varies depending on
    the date of the information contained herein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth: (i)&#160;the rates of exchange
    for the Canadian dollar, expressed in U.S.&#160;dollars in
    effect at the end of each of the periods indicated;
    (ii)&#160;the average of the exchange rates in effect on the
    last day of each month during such periods; and (iii)&#160;the
    high and low exchange rates during each period, in each case
    based on the inverse of the noon buying rate in New&#160;York
    City for cable transfers payable in Canadian dollars as
    certified for customs purposes by the Federal Reserve Bank of
    New York.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="52%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Nine Months<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year Ended December&#160;31</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>September&#160;30</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Rate at end of period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.831
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.858
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.858
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.012
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.817
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.004
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.944
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Average rate for period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.768
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.825
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.882
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.927
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.934
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.982
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    High for period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.849
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.869
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.910
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.091
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.029
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.004
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.029
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Low for period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.716
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.787
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.853
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.844
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.771
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.844
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.926
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;20, 2009, the inverse of the noon buying rate in
    New York City for cable transfers in Canadian dollars as
    certified for customs purposes by the Federal Reserve Bank of
    New York was Cdn.$1.2604 = U.S.$1.00.
</DIV>
<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND MORE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus is part of a registration statement on
    <FONT style="white-space: nowrap">Form&#160;F-10</FONT>
    relating to the Securities that the Trust has filed with the SEC
    (the &#147;<B>Registration Statement</B>&#148;). This prospectus
    does not contain all of the information set forth in the
    Registration Statement, certain parts of which are omitted in
    accordance with the rules and regulations of the SEC. United
    States investors should refer to the Registration Statement and
    the exhibits to the Registration Statement for further
    information with respect to the Trust and the Securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust files annual and quarterly reports, material change
    reports and other information with the securities commissions or
    similar regulatory authorities in each of the provinces of
    Canada and with the SEC. Under a multi-jurisdictional disclosure
    system adopted by the United States and Canada, these reports
    and other information (including financial information) may be
    prepared in accordance with the disclosure requirements in
    Canada, which differ from those in the United States.
    Prospective investors may read and download any public document
    that the Trust has filed with securities commissions or similar
    regulatory authorities in each of the provinces of Canada on the
    System for Electronic Document Analysis and Retrieval, which is
    commonly known by the acronym SEDAR, and which may be accessed
    at <U>www.sedar.com</U>. Prospective investors may read any
    document that the Trust files with or furnishes to the SEC at
    the SEC&#146;s public reference room at 100&#160;F&#160;Street,
    N.E., Washington,&#160;D.C. 20549. Prospective investors may
    also obtain copies of the same documents from the public
    reference room of the SEC at 100&#160;F&#160;Street, N.E.,
    Washington,&#160;D.C. 20549 by paying a fee. Please call the SEC
    at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    or contact it at <U>www.sec.gov</U> for further information on
    the public reference room. The Trust&#146;s filings are also
    electronically available from the SEC&#146;s Electronic Document
    Gathering and
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Retrieval System, which is commonly known by the acronym EDGAR,
    and which may be accessed at <U>www.sec.gov</U>, as well as from
    commercial document retrieval sources.
</DIV>
<A name='104'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DOCUMENTS
    FILED AS PART&#160;OF THE REGISTRATION STATEMENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following documents are being or will be filed with the SEC
    as part of the Registration Statement: (i)&#160;the documents
    referred to under the heading &#147;Documents Incorporated by
    Reference&#148;; (ii)&#160;the consents of KPMG LLP; and
    (iii)&#160;the powers of attorney from the Trust&#146;s trustees
    and Precision&#146;s officers.
</DIV>
<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FORWARD-LOOKING
    STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain statements contained in this prospectus, and in certain
    documents incorporated by reference into this prospectus,
    including statements that contain words such as
    &#147;could&#148;, &#147;should&#148;, &#147;can&#148;,
    &#147;anticipate&#148;, &#147;estimate&#148;,
    &#147;propose&#148;, &#147;plan&#148;, &#147;expect&#148;,
    &#147;believe&#148;, &#147;will&#148;, &#147;may&#148; and
    similar expressions and statements relating to matters that are
    not historical facts constitute &#147;forward-looking
    information&#148; within the meaning of applicable Canadian
    securities legislation and &#147;forward-looking
    statements&#148; within the meaning of the &#147;safe
    harbor&#148; provisions of the United States Private Securities
    Litigation Reform Act of 1995 (collectively,
    &#147;<B>forward-looking information and statements</B>&#148;).
    In particular, forward-looking information and statements
    include, but are not limited to: the impact of reductions in
    commodity prices; the potential impact and benefits of the
    Acquisition (as defined herein); the opportunities stemming from
    a focus on global contract drilling through United States
    expansion, international diversification opportunities and
    complementary product line expansion; that new drilling rigs are
    expected to be contracted with customers before completion; the
    timing of completion of rigs in Precision&#146;s rig build
    program; the impact of shale gas drilling in Canada and the
    United States; that unconventional drilling applications will
    require high performance drilling rigs; that continental natural
    gas will continue to be part of the long-term energy solution
    for North America; that wells have a steep rate of production
    decline in the first year necessitating additional drilling to
    replace rapidly depleting wells; the timing and results of
    international diversification opportunities; that planned asset
    growth will generally be financed through existing debt
    facilities or cash retained from continuing operations; and
    statements as to seasonal and weather conditions affecting the
    Canadian oil and natural gas industry and the demand for the
    Trust&#146;s services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The forward-looking information and statements contained in this
    prospectus and in certain documents incorporated by reference
    herein are based on certain assumptions and analysis made by the
    Trust in light of its experience and its perception of
    historical trends, current conditions and expected future
    developments as well as other factors it believes are
    appropriate in the circumstances. However, whether actual
    results, performance or achievements will conform to the
    Trust&#146;s expectations and predictions is subject to a number
    of known and unknown risks and uncertainties which could cause
    actual results to differ materially from the Trust&#146;s
    expectations. Such risks and uncertainties include, but are not
    limited to: fluctuations in the price and demand for and supply
    of oil and natural gas; fluctuations in the level of oil and
    natural gas exploration and development activities; fluctuations
    in the demand for well servicing, contract drilling and
    ancillary oilfield services; the effects of seasonal and weather
    conditions on operations and facilities; the existence of
    competitive operating risks inherent in well servicing, contract
    drilling and ancillary oilfield services; general economic,
    market or business conditions; changes in laws or regulations,
    including taxation, environmental and currency regulations; the
    lack of availability of qualified personnel or management;
    future capital expenditures and refurbishment, repair and
    upgrade costs; expected completion times for refurbishment and
    upgrade projects; sufficiency of funds for required capital
    expenditures, working capital and debt service; liabilities
    under laws and regulations protecting the environment; the
    impact of purchase accounting; expected outcomes of litigation,
    claims and disputes and their expected effects on the
    Trust&#146;s financial condition and results of operations;
    difficulties and delays in achieving synergies and cost savings;
    the Trust&#146;s ability to enter into and the terms of future
    contracts; the adequacy of sources of liquidity; inability to
    carry out plans and strategies as expected; loss of &#147;mutual
    fund trust&#148; status; the effect of Canadian federal
    government proposals regarding non-resident ownership; the
    conversion of the Trust into a corporate structure and other
    unforeseen conditions which could impact the use of services
    supplied by the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Consequently, all of the forward-looking information and
    statements made in this prospectus and in certain documents
    incorporated by reference in this prospectus are qualified by
    these cautionary statements and there can be no assurance that
    the actual results or developments anticipated by the Trust will
    be realized or, even if substantially realized, that they will
    have the expected consequences to or effects on the Trust or its
    business or operations. Readers are therefore cautioned not to
    place undue reliance on such forward-looking information and
    statements. Neither the Trust nor Precision are under any
    obligation to publicly update or revise any forward-looking
    information or statements except as expressly required by
    applicable securities laws.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 2 -
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<A name='106'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DOCUMENTS
    INCORPORATED BY REFERENCE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Information has been incorporated by reference in this
    prospectus from documents filed with securities commissions and
    similar regulatory authorities in Canada and with the SEC.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under applicable securities laws in Canada and the United
    States, the Canadian securities commissions or similar
    authorities and the SEC allow the Trust to incorporate by
    reference certain information that it files with the Canadian
    securities commissions or similar regulatory authorities, which
    means that the Trust can disclose important information to
    prospective investors by reference to those documents.
    Information that is incorporated by reference is an important
    part of this prospectus. The following documents of the Trust
    have been or will be filed with the various securities
    commissions or similar regulatory authorities in the provinces
    of Canada and with the SEC and are specifically incorporated by
    reference into and form an integral part of this prospectus:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    1.&#160;
</TD>
    <TD align="left">    the annual information form of the Trust dated March&#160;25,
    2008 for the year ended December&#160;31, 2007 (the
    &#147;<B>AIF</B>&#148;);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    2.&#160;
</TD>
    <TD align="left">    the audited comparative consolidated financial statements of the
    Trust as at and for the years ended December&#160;31, 2007 and
    2006, together with the notes thereto, the auditors&#146; report
    thereon and the auditors&#146; report on internal control over
    financial reporting as of December&#160;31, 2007;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    3.&#160;
</TD>
    <TD align="left">    management&#146;s discussion and analysis of the financial
    condition and results of operations of the Trust for the year
    ended December&#160;31, 2007;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    4.&#160;
</TD>
    <TD align="left">    the unaudited interim consolidated financial statements of the
    Trust for the three and nine month periods ended
    September&#160;30, 2008;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    5.&#160;
</TD>
    <TD align="left">    management&#146;s discussion and analysis of the financial
    condition and results of operations of the Trust for the nine
    month period ended September&#160;30, 2008;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    6.&#160;
</TD>
    <TD align="left">    the supplemental note entitled &#147;Reconciliation of Financial
    Statements to United States Generally Accepted Accounting
    Principles&#148; for the nine month period ended
    September&#160;30, 2008 and 2007 (the &#147;<B>Interim GAAP
    Reconciliation</B>&#148;);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    7.&#160;
</TD>
    <TD align="left">    the information circular of the Trust dated March&#160;28, 2008
    relating to the annual meeting of Unitholders held on
    May&#160;7, 2008;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    8.&#160;
</TD>
    <TD align="left">    the material change report of the Trust dated August&#160;28,
    2008 in respect of the agreement and plan of merger dated
    August&#160;24, 2008 among the Trust, Grey Wolf, Inc.
    (&#147;<B>Grey Wolf</B>&#148;), Precision and Precision Lobos
    Corporation (&#147;<B>Lobos</B>&#148;) pursuant to which the
    Trust agreed to indirectly acquire Grey Wolf (the
    &#147;<B>Acquisition</B>&#148;);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    9.&#160;
</TD>
    <TD align="left">    the material change report of the Trust dated December&#160;19,
    2008 in respect of the announcement of the expected principal
    terms of the credit facilities with the Trust&#146;s banking
    syndicate, consisting of Royal Bank of Canada, RBC Capital
    Markets, Deutsche Bank AG Cayman Islands Branch, Deutsche Bank
    Securities Inc., HSBC Bank Canada, HSBC Bank USA, National
    Association and The Toronto-Dominion Bank (collectively, the
    &#147;<B>Commitment Banks</B>&#148;), in conjunction with the
    Acquisition;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    10.&#160;
</TD>
    <TD align="left">    the material change report of the Trust dated December&#160;23,
    2008 in respect of the completion of the Acquisition pursuant to
    the agreement and plan of merger among the Trust, Grey Wolf,
    Precision and Lobos dated August&#160;24, 2008, as amended
    December&#160;2, 2008 (the &#147;<B>Grey Wolf
    MCR</B>&#148;);&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    11.&#160;
</TD>
    <TD align="left">    the business acquisition report of the Trust dated
    January&#160;21, 2009 in respect of the Acquisition (the
    &#147;<B>BAR</B>&#148;).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any documents of the type required by National Instrument
    <FONT style="white-space: nowrap">44-101</FONT>
    <I>Short Form&#160;Prospectus Distributions </I>to be
    incorporated by reference herein including, without limitation,
    any material change reports (excluding confidential material
    change reports), comparative interim financial statements,
    comparative annual financial statements and the auditors&#146;
    report thereon, management&#146;s discussion and analysis of
    financial condition and results of operations, information
    circulars, annual information forms and business acquisition
    reports filed by the Trust with the securities commissions or
    similar regulatory authorities in the provinces of Canada
    subsequent to the date of this prospectus and prior to the
    termination of this distribution are deemed to be incorporated
    by reference in this prospectus. To the extent that any document
    or information incorporated by reference into this prospectus is
    included in a report that is filed with or furnished to the SEC,
    such document or information shall be deemed to be incorporated
    by reference as an exhibit to the Registration Statement of
    which this prospectus forms a part.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Any statement contained in a document incorporated or deemed
    to be incorporated by reference herein shall be deemed to be
    modified or superseded for the purposes of this prospectus to
    the extent that a statement contained </B>
</DIV>

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    <BR>
    - 3 -
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>herein or in any other subsequently filed document which also
    is, or is deemed to be, incorporated by reference herein
    modifies or supersedes such statement. The modifying or
    superseding statement need not state that it has modified or
    superseded a prior statement or include any other information
    set forth in the document that it modifies or supersedes. The
    making of a modifying or superseding statement shall not be
    deemed an admission for any purposes that the modified or
    superseded statement, when made, constituted a
    misrepresentation, an untrue statement of a material fact or an
    omission to state a material fact that was required to be stated
    or that was necessary to make a statement not misleading in
    light of the circumstances in which it was made. Any statement
    so modified or superseded shall not be deemed, except as so
    modified or superseded, to constitute a part of this
    prospectus.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon a new annual information form and corresponding annual
    financial statements and related management&#146;s discussion
    and analysis being filed by the Trust with, and where required,
    accepted by, the applicable securities regulatory authorities
    during the currency of this prospectus, the previous annual
    information form and all annual financial statements, interim
    financial statements and the related management&#146;s
    discussion and analysis, material change reports, business
    acquisition reports and information circulars filed prior to the
    commencement of the Trust&#146;s financial year in respect of
    which the new annual information form is filed shall be deemed
    no longer to be incorporated by reference into this prospectus
    for purposes of future offers and sales of Securities hereunder.
    Upon interim consolidated financial statements and the related
    management&#146;s discussion and analysis being filed by the
    Trust with the applicable securities regulatory authorities
    during the currency of this prospectus, all interim consolidated
    financial statements and the related management&#146;s
    discussion and analysis filed prior to the new interim
    consolidated financial statements shall be deemed no longer to
    be incorporated in this prospectus for purposes of future offers
    and sales of Securities under this prospectus. Upon a new
    management information circular and proxy statement relating to
    an annual meeting of Unitholders being filed by the Trust with
    the applicable securities regulatory authorities during the
    currency of this prospectus, the management information circular
    and proxy statement for the preceding annual meeting of
    Unitholders shall be deemed no longer to be incorporated into
    this prospectus for purposes of future offers and sales of
    Securities under this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    One or more Prospectus Supplements containing the specific
    variable terms for an issue of Securities and other information
    in relation to those Securities will be delivered or made
    available to purchasers of such Securities together with this
    prospectus to the extent required by applicable securities laws
    and will be deemed to be incorporated by reference into this
    prospectus as of the date of the Prospectus Supplement solely
    for the purposes of the offering of the Securities covered by
    any such Prospectus Supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Prospective investors should rely only on the information
    contained in or incorporated by reference in this prospectus or
    any Prospectus Supplement. The Trust has not authorized anyone
    to provide prospective investors with different or additional
    information. The Trust is not making an offer of these
    Securities in any jurisdiction where the offer is not permitted
    by law. Prospective investors should not assume that the
    information contained in or incorporated by reference in this
    prospectus or any Prospectus Supplement is accurate as of any
    date other than the date of the applicable document.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<A name='107'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRECISION
    DRILLING TRUST</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust is an unincorporated open-ended investment trust
    established under the laws of the Province of Alberta pursuant
    to a declaration of trust dated September&#160;22, 2005 (the
    &#147;<B>Declaration of Trust</B>&#148;). The beneficiaries of
    the Trust are the Unitholders. The Trust&#146;s principal
    undertaking is to issue Trust&#160;Units and to carry on the
    business of the provision of land-based contract drilling
    services to oil and gas exploration and production companies
    through its direct and indirect subsidiaries. This business is
    carried out in two segments consisting of contract drilling
    services and completion and production services. Contract
    drilling services include land drilling services, camp and
    catering services, procurement and distribution of oilfield
    supplies and the manufacture and refurbishment of drilling and
    service rig equipment. Completion and production services
    include service rig well completion and workover services,
    snubbing services, wastewater treatment services and the rental
    of oilfield surface equipment, tubulars and well control
    equipment and wellsite accommodations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of the date of this prospectus, management believes that the
    Trust is the second largest land driller in North America, based
    on the number of rigs in its drilling rig fleet. The Trust
    presently operates in most conventional and unconventional oil
    and natural gas basins in Canada and the United States and has
    an emerging presence in Mexico. Management believes that the
    Trust&#146;s high performance drilling rigs, supply chain
    management systems and technology, together with its United
    States customer base, deep drilling capabilities and positions
    in United States basins, provides it with a substantial
    foundation for expansion, both in North America and
    internationally. After giving effect to the Acquisition, as of
    the date of this prospectus,
</DIV>

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    <BR>
    - 4 -
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the Trust has a high quality fleet consisting of 371 drilling
    rigs and 229 service rigs and 28 snubbing units. In addition,
    Precision presently offers its customers a complementary suite
    of wellsite products and services including camp and catering,
    wastewater treatment, snubbing and rental equipment. Most of
    these operations and the service rig business are located in
    Canada.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<A name='108'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RECENT
    DEVELOPMENTS</FONT></B>
</DIV>
</A>
<A name='109'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Acquisition
    of Grey Wolf, Inc.</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On December&#160;23, 2008, the Trust completed the Acquisition
    pursuant to an agreement and plan of merger dated
    August&#160;24, 2008, as amended December&#160;2, 2008 (the
    &#147;<B>Merger Agreement</B>&#148;), with Grey Wolf, Precision
    and Lobos. Pursuant to the Acquisition, Grey Wolf was merged
    with and into Lobos (a subsidiary held directly and indirectly
    by the Trust) pursuant to the Texas Business Corporations Act
    and the Texas Corporation Law. Accordingly, the separate legal
    existence of Grey Wolf has ceased and Lobos is the surviving
    corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the closing of the Acquisition, Messrs.&#160;Frank M.
    Brown, William T. Donovan and Trevor M. Turbidy, each of whom
    was a director of Grey Wolf, were appointed to the board of
    directors of Precision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms of the Merger Agreement, shareholders of Grey
    Wolf elected to receive either cash or Trust&#160;Units in
    exchange for their shares of Grey Wolf common stock. Each share
    of Grey Wolf common stock was convertible, at the option of the
    holder, into U.S.$9.02 in cash or 0.4225 Trust&#160;Units,
    subject to proration. The total consideration paid by the Trust
    to shareholders of Grey Wolf in connection with the Acquisition
    was approximately U.S.$897.2&#160;million and 34.4&#160;million
    Trust&#160;Units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At closing of the Acquisition, Grey Wolf had outstanding
    $321.2&#160;million aggregate principal amount of convertible
    notes. See &#147;Consolidated Capitalization of the Trust&#148;.
    Pursuant to the terms of the convertible notes, during the first
    quarter of 2009, Lobos, as successor to Grey Wolf, is required
    to make to the holders thereof a &#147;change of control&#148;
    offer to repurchase any or all of the outstanding convertible
    notes at 100% of the principal amount thereof, plus accrued but
    unpaid interest to the date of the repurchase, payable in cash.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Acquisition is described in greater detail in the BAR and
    the Grey Wolf MCR. The BAR also contains audited annual
    financial statements of Grey Wolf for the year ended
    December&#160;31, 2007, unaudited comparative interim financial
    statements of Grey Wolf for the nine months ended
    September&#160;30, 2008 and unaudited pro forma consolidated
    financial statements of the Trust for the year ended
    December&#160;31, 2007 and nine months ended September&#160;30,
    2008 that give effect to the Acquisition.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf Business Overview</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to giving effect to the Acquisition, Grey Wolf, a Texas
    corporation formed in 1980, was a holding company with no
    independent operations. Through its subsidiaries, Grey Wolf was
    engaged in the business of providing turnkey and onshore
    contract drilling services to the oil and gas industry in the
    United States and Mexico. Grey Wolf&#146;s business was, and, as
    presently conducted by Precision, is, cyclical and its financial
    results depend on several factors including the overall demand
    for land drilling services, the dayrates it receives for
    services, the level of demand for turnkey services and its
    success in drilling turnkey wells. References to &#147;Grey
    Wolf&#148; in this section refer, as the context requires, to
    the business operations of Grey Wolf as presently conducted by
    Precision through Lobos.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf conducts its operations primarily in the following
    United States drilling markets:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    Ark-La-Tex (consisting of northeast Texas, northern Louisiana
    and southern Arkansas);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    United States Gulf Coast in southern Louisiana and the upper
    Texas Gulf Coast;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    Mississippi/Alabama;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    South Texas;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    Rocky Mountain (consisting of Wyoming, Colorado, northwest Utah
    and northern New Mexico);&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    Mid-Continent (including west Texas, southwest New Mexico, the
    Barnett Shale area in north Texas and the mid-continent region).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As at December&#160;31, 2008, Grey Wolf had a fleet of 123 rigs.
    Its fleet has a deep-drilling bias with more than 96% of its
    rigs capable of withstanding high temperature and high pressure
    at depths exceeding 10,000&#160;feet. Approximately 95% of the
</DIV>

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    <BR>
    - 5 -
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    wells that Grey Wolf drills on a daywork and turnkey basis are
    targeted to natural gas. For the nine months ended
    September&#160;30, 2008, the utilization rate for Grey
    Wolf&#146;s rig fleet was 87%.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf&#146;s rig fleet consists of several different sizes
    of rigs to meet the demand of its customers in each of the
    markets it serves. Its rig fleet consists of two basic types of
    drilling rigs, mechanical and diesel electric. As of
    December&#160;31, 2008, Grey Wolf owned nine direct current
    diesel electric rigs and 69 Silicon Controlled Rectifier rigs.
    It also owned at December&#160;31, 2008, 44 mechanical rigs and
    one diesel electric rig that is trailer-mounted for greater
    mobility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf also utilizes 33 top drives in its drilling
    operations, which allows drilling with 90-foot lengths of drill
    pipe rather than 30-foot lengths, thus reducing the number of
    required connections in the drill string.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In 2007, Grey Wolf had over 210 customers which included
    independent producers and major oil and gas companies. In 2007,
    approximately 33% of Grey Wolf&#146;s revenue came from major
    oil and natural gas companies and large independent producers,
    while the remaining approximately 67% came from smaller
    independents, with no individual customer accounting for more
    than 10% of Grey Wolf&#146;s revenues. Grey Wolf primarily
    markets its drilling rigs on a regional basis through employee
    sales personnel.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf&#146;s contracts for drilling oil and natural gas
    wells are obtained either through competitive bidding or as a
    result of relationships and negotiations with customers.
    Contract terms offered by Grey Wolf are generally dependent on
    the complexity and risk of operations,
    <FONT style="white-space: nowrap">on-site</FONT>
    drilling conditions, type of equipment used and the anticipated
    duration of the work to be performed. Drilling contracts can be
    for a single or multiple wells. Term drilling contracts
    typically contain early termination penalties while non-term
    contracts are typically subject to termination by the customer
    on short notice or with little or no penalty. The contracts
    generally provide for compensation on either a daywork (where
    Grey Wolf provides a drilling rig with required personnel to a
    customer and the customer supervises the drilling of the well
    and the customer generally pays for the cost of drilling) or
    turnkey basis (where Grey Wolf contracts to drill a well to an
    agreed upon depth under specified conditions for a fixed price).
    See &#147;Risk Factors&#160;&#151; Unexpected cost overruns on
    turnkey drilling jobs could adversely affect Precision&#146;s
    revenues&#148;. From time to time, Grey Wolf also enters into
    informal, non-binding commitments with its customers to provide
    drilling rigs for future periods at agreed upon rates plus fuel
    and mobilization charges, if applicable, and escalation
    provisions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Acquisition
    Financing</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the Acquisition, Precision entered into a new
    U.S.$1.2&#160;billion senior secured credit facility with the
    Commitment Banks and certain other lenders (the &#147;<B>Secured
    Facility</B>&#148;) that is guaranteed by the Trust and is
    comprised of U.S.$800&#160;million of term loans and a
    U.S.$400&#160;million revolving facility and also entered into a
    U.S.&#160;$400&#160;million unsecured bridge credit facility
    with certain of the Commitment Banks (the &#147;<B>Bridge
    Facility</B>&#148; and, together with the Secured Facility, the
    &#147;<B>Credit Facilities</B>&#148;) that is also guaranteed by
    the Trust. The Credit Facilities funded the cash portion of the
    Acquisition and refinanced the pre-closing Precision bank debt
    and certain pre-closing debt obligations of Grey Wolf. The
    Bridge Facility is available to fund the repurchase of Grey Wolf
    convertible notes that may be tendered for repurchase by holders
    under a change of control offer to be made in the first quarter
    of 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a detailed description of the Credit Facilities, see
    &#147;Material Debt&#148;. Potential investors may refer to
    copies of the credit agreements governing such facilities, which
    are available online at <U>www.sedar.com</U> and
    <U>www.sec.gov</U>.
</DIV>
<A name='110'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Goodwill</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Canadian GAAP, the cost of the Acquisition is determined
    by reference to the fair value of the consideration paid by the
    Trust or the fair value of the assets acquired by the Trust.
    Canadian GAAP requires that the value of the Trust&#160;Units
    issued as partial consideration for the Acquisition be based on
    their market value over a reasonable period before and after the
    date the terms of the Acquisition were agreed to, being
    August&#160;24, 2008. Precision is currently assessing the
    implications of such valuation requirements on the allocation of
    the purchase price for the Acquisition and evaluating the
    carrying value of the resulting goodwill in the Acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, Precision is currently assessing and evaluating the
    carrying value of its goodwill, both prior to and subsequent to
    the Acquisition, to determine if, as a consequence of the
    deterioration in general economic conditions during 2008, an
    impairment writedown to goodwill is required under Canadian GAAP
    to be reflected in the audited annual consolidated financial
    statements of the Trust for the year ended December&#160;31,
    2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, Canadian GAAP requires that the Trust assess its
    goodwill balance at least annually for impairment and that any
    permanent impairment writedown be charged to net income. The
    calculation of any impairment is subject to management estimates
    and assumptions. Factors that may be considered in such a
    calculation include, but are not limited
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 6 -
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    to, declines in Trust&#160;Unit price and market capitalization,
    reduced future cash flow and earnings estimates, slower growth
    rates in the industry in which the Trust and its subsidiaries
    operate and general economic conditions. Any impairment would
    result in a writedown of the goodwill value and a non-cash
    charge against net income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    See &#147;Risk Factors&#160;&#151; The results of the
    Trust&#146;s annual assessment of goodwill may result in a
    non-cash charge against the consolidated net income of the
    Trust&#148;.
</DIV>
<A name='111'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On July&#160;31, 2008, Precision closed the acquisition of six
    service rigs from a private well servicing company for
    approximately $16&#160;million. The assets are positioned in
    south-eastern Saskatchewan and south-western Manitoba and
    strengthen Precision&#146;s capabilities in these oil regions.
    Subsequent to closing, Precision moved an additional three
    service rigs into these regions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s 19 2008 Super Series drilling rig build program
    was comprised of 10 Super Single rigs and nine Super Triple
    rigs, all but one of which are committed to customers. Eighteen
    of these rigs are under signed term customer contracts.
    Management expects the remaining capital cost of the rig build
    program for 2009 to be approximately $165&#160;million. Of the
    19 rigs, two were delivered in 2008 and management expects the
    remaining contracted rigs to be delivered before the fourth
    quarter of 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On August&#160;31, 2008, certain non-compete obligations from a
    2005 business divestiture that restricted the Trust&#146;s
    growth outside of North America and in certain business lines
    expired. Through its international subsidiaries, the Trust can
    now pursue global contract drilling opportunities without
    restriction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the Acquisition, Precision&#146;s organic growth
    in the United States accelerated during 2008 with nine rig moves
    from Canada representing an expansion of the then existing
    United States fleet by 47%.
</DIV>
<A name='112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as may otherwise be set forth in a Prospectus Supplement,
    the net proceeds to be received by the Trust from the issue and
    sale from time to time of Securities will be added to the
    general funds of the Trust to be used to repay existing
    indebtedness of the Trust (see &#147;Material Debt&#148; and
    &#147;Consolidated Capitalization of the Trust&#148;), to fund
    capital expenditures and for other general corporate purposes.
    Each Prospectus Supplement will contain specific information
    concerning the use of proceeds from that sale of Securities.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 7 -
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<A name='113'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CONSOLIDATED
    CAPITALIZATION OF THE TRUST</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the consolidated capitalization
    of the Trust as at September&#160;30, 2008 and as at
    December&#160;31, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="44%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="25%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="26%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>As at<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>As at<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>September&#160;30, 2008<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>December&#160;31, 2008<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Designation</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(unaudited)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(unaudited)</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" align="center" valign="bottom">
    (in Canadian GAAP, Cdn.$ millions, except unit amounts)
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Bank Debt</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Unsecured Revolving Credit
    Facility<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $231.8
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Secured
    Facility</B><SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Term Loan A
    Facility<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $489.2
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Term Loan B
    Facility<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $489.8
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revolving Credit
    Facility<SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $108.0
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Total Secured Facility</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>$1,087.0</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Bridge
    Facility</B><SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $168.4
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Convertible Notes</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    3.75%&#160;Notes<SUP style="font-size: 85%; vertical-align: top">(7)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $168.4
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Floating Rate
    Notes<SUP style="font-size: 85%; vertical-align: top">(8)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    &#151;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $152.8
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Total Debt</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>$231.8</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>$1,576.6</B>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Unitholders&#146;
    Equity</B><SUP style="font-size: 85%; vertical-align: top">(9)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $1,440.7
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $2,353.9
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Trust&#160;Units<SUP style="font-size: 85%; vertical-align: top">(10)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    (125,601,441 Trust Units)
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    (160,042,065 Trust Units)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $1.8
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $1.7
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Exchangeable
    Units<SUP style="font-size: 85%; vertical-align: top">(11)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    (156,483 Exchangeable Units)
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    (151,583  Exchangeable Units)
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Total Unitholders&#146; Equity</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>$1,442.5</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $2,355.6
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Total Capitalization</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>$1,674.3</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $3,932.2
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 2pt; margin-left: 0%; width: 12%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=479 length=60 -->



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 8pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (1)&#160;
</TD>
    <TD align="left">    Prior to the completion of the Acquisition, Precision had a
    $700&#160;million three-year revolving unsecured credit facility
    with a syndicate led by a Canadian chartered bank. Borrowings
    under this credit facility were repaid on December&#160;23, 2008
    with borrowings from the Secured Facility established by
    Precision in connection with the Acquisition. See &#147;Recent
    Developments&#160;&#151; Acquisition Financing&#148;.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (2)&#160;
</TD>
    <TD align="left">    In connection with the Acquisition, Precision established the
    Secured Facility which provides senior secured financing of up
    to approximately U.S.$1.2&#160;billion, consisting of a Term
    Loan A Facility in an aggregate principal amount of
    U.S.$400&#160;million, a Term Loan B Facility in an aggregate
    principal amount of U.S.$400&#160;million and a Revolving Credit
    Facility in the amount of U.S.$400&#160;million. The Secured
    Facility is provided to Precision by certain of the Commitment
    Banks and certain other lenders and is primarily secured by
    charges on substantially all present and future property of the
    Trust and its material subsidiaries. The Trust and its material
    subsidiaries have also guaranteed the obligations of Precision
    under the Secured Facility. As of December&#160;31, 2008, the
    Secured Facility had a blended effective interest rate of
    approximately 7.8% per annum, before original issue discounts
    and upfront fees. See &#147;Recent Developments&#160;&#151;
    Acquisition Financing&#148; and &#147;Material Debt&#160;&#151;
    Secured Facility&#148;.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (3)&#160;
</TD>
    <TD align="left">    The Term Loan A Facility was fully drawn by Precision in
    connection with the Acquisition and consists of a term loan
    <FONT style="white-space: nowrap">A-1</FONT> facility
    denominated in U.S. dollars in the amount of
    U.S.$381.1&#160;million ($466.7&#160;million) and a term loan
    <FONT style="white-space: nowrap">A-2</FONT> facility
    denominated in Canadian dollars in the amount of
    $22.5&#160;million. The Term Loan A Facility is repayable in
    quarterly installments in aggregate annual amounts equal to 5%
    of the original principal amount thereof in the first year
    following the closing date of the Acquisition, 10% of the
    original principal amount thereof in each of the second and
    third years following the closing date of the Acquisition and
    15% of the original principal amount thereof in the fourth and
    fifth years following the closing date of the Acquisition, with
    the balance payable on the final maturity date of
    December&#160;23, 2013. As of December&#160;31, 2008, the Term
    Loan A Facility had an effective interest rate of approximately
    6.3% per annum, before original issue discounts and upfront
    fees. See &#147;Material Debt&#160;&#151; Secured Facility&#148;.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (4)&#160;
</TD>
    <TD align="left">    The Term Loan B Facility was fully drawn by Precision in
    connection with the Acquisition and consists of a term loan B-1
    facility denominated in U.S. dollars in the amount of
    U.S.$325&#160;million ($398&#160;million) and a term loan B-2
    facility denominated in U.S. dollars in the amount of
    U.S.$75&#160;million ($91.8&#160;million). The Term Loan B
    Facility is repayable in quarterly installments in aggregate
    annual amounts equal to 5% of the original principal amount
    thereof with the balance payable on the final maturity date of
    September&#160;30, 2014. As of December&#160;31, 2008, the Term
    Loan B Facility had a blended effective interest rate of
    approximately 9.6% per annum, before original issue discounts
    and upfront fees. See &#147;Material Debt&#160;&#151; Secured
    Facility&#148;.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 8 -
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (5)&#160;
</TD>
    <TD align="left">    The U.S.$400&#160;million Revolving Credit Facility is available
    to Precision to finance working capital needs and for general
    corporate purposes. Under the Revolving Credit Facility amounts
    can be drawn in U.S. dollars and/or Canadian dollars and
    $108&#160;million was drawn down as at December&#160;31, 2008.
    Up to U.S.$200&#160;million of the Revolving Credit Facility is
    available for letters of credit denominated in United States
    and/or Canadian dollars. As of December&#160;31, 2008, the
    Revolving Credit Facility had a blended effective interest rate
    of approximately 6.5% per annum, before original issue
    discounts, upfront fees and commitment fees. See &#147;Material
    Debt&#160;&#151; Secured Facility&#148;.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (6)&#160;
</TD>
    <TD align="left">    In connection with the Acquisition, Precision established the
    Bridge Facility which provides senior unsecured financing of up
    to U.S.$400&#160;million. The Bridge Facility has been provided
    to Precision by certain of the Commitment Banks and has been
    guaranteed by the Trust and each subsidiary of the Trust that
    has guaranteed the Secured Facility. After the completion of the
    Acquisition and the related Acquisition financing transactions,
    approximately U.S.$137.5&#160;million ($168.4&#160;million) was
    outstanding under the Bridge Facility. Up to an additional
    approximately U.S.$262.5&#160;million is available under the
    Bridge Facility to fund the repurchase, in whole or in part, of
    outstanding Lobos (formerly Grey Wolf) convertible notes that
    may be tendered pursuant to the change of control offer for
    repurchase in the first quarter of 2009 and related fees and
    expenses, as described in Notes&#160;7 and 8 below. Loans under
    the Bridge Facility bear interest at a fixed rate per annum of
    17% and will initially mature on December&#160;23, 2009, and, to
    the extent unpaid on that date, will be converted into term
    loans that will mature on December&#160;23, 2016. Loans under
    the Bridge Facility are subject to mandatory prepayments from
    the net cash proceeds from the issuance or sale of any equity
    securities by the Trust (subject to certain exceptions). See
    &#147;Recent Developments&#160;&#151; Acquisition
    Financing&#148; and &#147;Material Debt&#160;&#151; Bridge
    Facility&#148;.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (7)&#160;
</TD>
    <TD align="left">    The U.S.$137.5&#160;million principal amount of 3.75% Contingent
    Convertible Notes of Lobos due May 2023 (the
    &#147;<B>3.75%&#160;Notes</B>&#148;) bear interest at 3.75% per
    annum. The 3.75%&#160;Notes are convertible into
    Trust&#160;Units, upon the occurrence of certain events, at a
    conversion price of U.S.$15.27 per Trust&#160;Unit, which is
    equal to a conversion rate of 65.4879 Trust&#160;Units per
    U.S.$1,000 principal amount of 3.75%&#160;Notes, subject to
    adjustment. The 3.75%&#160;Notes are general unsecured senior
    obligations of Lobos and are fully and unconditionally
    guaranteed, on a joint and several basis, by all of Lobos&#146;
    wholly-owned United States subsidiaries. The 3.75%&#160;Notes
    rank equally with the Floating Rate Notes (described in
    Note&#160;8 below). During the first quarter of 2009, as a
    result of the Acquisition (which constitutes a change of control
    under the terms of the indenture governing the
    3.75%&#160;Notes), Lobos is required to provide holders of the
    3.75%&#160;Notes with an offer to purchase all or a portion of
    their 3.75%&#160;Notes at 100% of the principal amount of the
    3.75%&#160;Notes, plus accrued but unpaid interest to the date
    of purchase, payable in cash.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (8)&#160;
</TD>
    <TD align="left">    The U.S.$124.8&#160;million principal amount of Contingent
    Convertible Floating Rate Notes of Lobos due April 2024 (the
    &#147;<B>Floating Rate Notes</B>&#148;) bear interest at a per
    annum rate equal to
    <FONT style="white-space: nowrap">3-month</FONT>
    LIBOR, adjusted quarterly, minus a spread of 0.05% to a maximum
    limit rate of interest of 6%. The Floating Rate Notes are
    convertible into Trust&#160;Units, upon the occurrence of
    certain events, at a conversion price of U.S.$15.41 per
    Trust&#160;Unit, which is equal to a conversion rate of 64.8929
    Trust&#160;Units per U.S.$1,000 principal amount of the Floating
    Rate Notes, subject to adjustment. The Floating Rate Notes are
    general unsecured senior obligations of Lobos and are fully and
    unconditionally guaranteed, on a joint and several basis, by all
    of Lobos&#146; wholly-owned United States subsidiaries. The
    Floating Rate Notes rank equally with the 3.75%&#160;Notes.
    During the first quarter of 2009, as a result of the Acquisition
    (which constitutes a change of control under the terms of the
    indenture governing the Floating Rate Notes), Lobos is required
    to provide holders of the Floating Rate Notes with an offer to
    purchase all or a portion of their Floating Rate Notes at 100%
    of the principal amount of the Floating Rate Notes, plus accrued
    but unpaid interest to the date of purchase, payable in cash.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (9)&#160;
</TD>
    <TD align="left">    Unitholder&#146;s Equity as at December&#160;31, 2008 has not
    been adjusted for results of operations for the three months
    ended December&#160;31, 2008 or for any possible impairment of
    goodwill. See &#147;Recent Developments&#160;&#151;
    Goodwill&#148; and &#147;Risk Factors&#160;&#151; The results of
    the Trust&#146;s annual assessment of goodwill may result in a
    non-cash charge against the consolidated net income of the
    Trust&#148;.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (10)&#160;
</TD>
    <TD align="left">    See &#147;Description of Trust&#160;Units&#148;.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (11)&#160;
</TD>
    <TD align="left">    Class&#160;B limited partnership units of Precision Drilling
    Limited Partnership (the &#147;<B>Exchangeable Units</B>&#148;)
    may be exchanged into Trust&#160;Units at any time at the option
    of the holder based on the exchange ratio in effect at the date
    of exchange. As at December&#160;31, 2008, the 151,583
    outstanding Exchangeable Units can be exchanged for 151,583
    Trust&#160;Units based on the December&#160;31, 2008 exchange
    ratio of one to one.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 9 -
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<A name='114'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRIOR
    SALES</FONT></B>
</DIV>
</A>
<A name='115'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Prior
    Sales</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes the issuances of Trust&#160;Units
    within the twelve month period prior to the date of this
    prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="55%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Description of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of Trust Units or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price per<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Date of Issuance</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Transaction</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Securities</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Security</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;23, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    Acquisition<SUP style="font-size: 85%; vertical-align: top">(1</SUP>

</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,435,725
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    U.S.$
</TD>
<TD nowrap align="right" valign="bottom">
    9.02
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 2pt; margin-left: 0%; width: 12%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=479 length=60 -->



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 8pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Note:</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (1)&#160;</TD>
    <TD align="left">
    Pursuant to the Acquisition, each share of Grey Wolf common
    stock was convertible, at the option of the holder, into
    U.S.$9.02 in cash or 0.4225 Trust&#160;Units, subject to
    proration. The total consideration paid by the Trust to
    shareholders of Grey Wolf in connection with the Acquisition was
    approximately U.S.$897.2&#160;million and 34.4&#160;million
    Trust&#160;Units. Cash consideration elections exceeded the
    amount of cash available for cash elections. Accordingly, former
    Grey Wolf shareholders who properly chose to receive all-cash
    merger consideration received a prorated amount of cash
    consideration in the amount of U.S.$5.39 and 0.17 of a
    Trust&#160;Unit for each share of Grey Wolf common stock. Grey
    Wolf shareholders who elected to receive Trust&#160;Units or did
    not make a timely and valid merger consideration election
    received 0.4225 of a Trust&#160;Unit for each share of Grey Wolf
    common stock.
</TD>
</TR>

</TABLE>
<A name='116'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Price
    Range and Trading Volume of the Trust&#160;Units</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust&#160;Units trade on the TSX under the trading symbol
    &#147;PD.UN&#148; and on the NYSE under the trading symbol
    &#147;PDS&#148;. The following table sets forth the price range
    and trading volumes for the Trust&#160;Units on each of the TSX
    and NYSE as reported by each of the TSX and NYSE for the periods
    indicated:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="49%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>TSX</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>NYSE</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Period</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Volume</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Volume</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    ($)
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    ($)
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    (U.S.$)
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    (U.S.$)
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><U>2008</U></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    January
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,590,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.70
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,207,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    February
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,376,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.91
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,324,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    March
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.61
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,854,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,555,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    April
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,213,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.89
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,651,700
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    May
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,294,240
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.38
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.03
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,247,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    June
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.93
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,593,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.59
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.76
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,062,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    July
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,021,570
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,696,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    August
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,240,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.89
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,310,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    September
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,875,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,877,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    October
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.84
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,500,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.82
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.41
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42,644,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    November
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,142,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.36
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,437,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.77
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,587,520
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.57
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,393,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><U>2009</U></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    January (1 to 20)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.44
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,676,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.92
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,357,358
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;20, 2009, the last trading day prior to the date
    of this prospectus, the closing price of the Trust&#160;Units on
    the TSX was $7.52 and the closing price of the Trust&#160;Units
    on the NYSE was U.S.$5.92.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 10 -
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<A name='117'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DISTRIBUTIONS
    TO UNITHOLDERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Since January&#160;1, 2007, the following monthly distributions
    have been declared
    <FONT style="white-space: nowrap">and/or</FONT> paid
    by the Trust, as applicable, in cash or in-kind:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="18%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>For the Month Ended</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Distributions per Trust Unit</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Payment Date</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    ($)
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    January&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    February 15, 2007
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    February&#160;28, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 15, 2007
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    March&#160;30, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    April 17, 2007
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    April&#160;30, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    May 15, 2007
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    May&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    June 15, 2007
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    June&#160;30, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    July 17, 2007
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    July&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 15, 2007
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    August&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    September 18, 2007
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    September&#160;30, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    October 16, 2007
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    October&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    November 15, 2007
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    November&#160;30, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    December 18, 2007
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    January 15, 2008
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;31,
    2007<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    January 15, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;31,
    2007<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    January 15, 2008
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    January&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    February 15, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    February&#160;29, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    March 18, 2008
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    March&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    April 15, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    April&#160;30, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    May 15, 2008
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    May&#160;30, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    June 17, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    June&#160;30, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    July 15, 2008
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    July&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    August 15, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    August&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    September 16, 2008
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    September&#160;30, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    October 15, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    October&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    November 18, 2008
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    November&#160;30, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    December 16, 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    January 15, 2009
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;31,
    2008<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    January 15, 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    January&#160;31,
    2009<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    February 16, 2009
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 2pt; margin-left: 0%; width: 12%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=479 length=60 -->



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 8pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Notes:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (1)&#160;
</TD>
    <TD align="left">    Special year-end cash distribution.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (2)&#160;
</TD>
    <TD align="left">    Special year-end in-kind distribution.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (3)&#160;
</TD>
    <TD align="left">    On January&#160;21, 2009, the Trust declared a distribution of
    $0.04 per Trust Unit payable on February&#160;16, 2009 to
    Unitholders of record on January&#160;31, 2009.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The historical distributions described above may not be
    reflective of future distributions, which are subject to review
    by the board of trustees of the Trust taking into account the
    prevailing circumstances at the relevant time. See
    &#147;</B>Risk Factors&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The terms of the documents governing the Credit Facilities
    contain provisions that in effect ensure that the lenders have
    priority as to payment over the Unitholders in respect to the
    assets and income of the Trust and its subsidiaries. Amounts due
    and owing to the lenders under the Credit Facilities must be
    paid before any distributions can be made to Unitholders. This
    relative priority of payments could result in a temporary or
    permanent interruption of distributions to Unitholders.
</DIV>
<A name='118'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MATERIAL
    DEBT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the Acquisition, the Trust established the
    Secured Facility and the Bridge Facility. See &#147;Recent
    Developments&#160;&#151; Acquisition Financing&#148;.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 11 -
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Secured Facility is provided to Precision by certain of the
    Commitment Banks and certain other lenders and is primarily
    secured by charges on substantially all present and future
    property of the Trust and its material subsidiaries. The Bridge
    Facility is provided to Precision by certain of the Commitment
    Banks and is currently unsecured. The terms of the documents
    under which the Credit Facilities are made available contain
    representations and warranties, covenants and events of default
    customary for transactions of this nature, including, in the
    case of the Secured Facility, financial ratio tests which
    generally are to be satisfied on a quarterly basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary of certain terms of the Secured
    Facility and the Bridge Facility. Potential investors may refer
    to copies of the credit agreements governing such facilities,
    which are available online at <U>www.sedar.com</U> and
    <U>www.sec.gov</U>.
</DIV>
<A name='119'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Secured
    Facility</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision (as borrower) and the Trust (as a guarantor) have
    entered into a credit agreement dated December&#160;23, 2008
    governing the Secured Facility with the lenders parties thereto,
    Royal Bank of Canada, as administrative agent, Deutsche Bank
    Securities Inc., as syndication agent, and HSBC Bank Canada and
    The Toronto-Dominion Bank, as co-documentation agents.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Secured Facility provides senior secured financing of up to
    approximately U.S.$1.2&#160;billion, consisting of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    a term loan A facility in an aggregate principal amount of
    U.S.$400&#160;million (the &#147;<B>Term Loan A
    Facility</B>&#148;);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    a term loan B facility in an aggregate principal amount of
    U.S.$400&#160;million (the &#147;<B>Term Loan B
    Facility</B>&#148;);&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    a revolving credit facility in the amount of
    U.S.$400&#160;million (the &#147;<B>Revolving Credit
    Facility</B>&#148;).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The terms of the Secured Facility include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    a blended effective interest rate as at December&#160;31, 2008,
    of approximately 7.8% per annum, before original issue discounts
    and upfront fees;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    covenants requiring the Trust and Precision to comply with
    certain financial ratios;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    limits on distributions based on 20% of the Trust&#146;s
    operating cash flow before changes in working capital, provided
    that 50% of operating cash flow generated in excess of certain
    base case projections will also be permitted to be paid as
    distributions, subject to an overall cap of 30% of aggregate
    operating cash flow before changes in working capital;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    covenants that will limit the Trust&#146;s capital expenditures
    above an agreed base-case, allowing for certain exceptions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Up to U.S.$200&#160;million of the Revolving Credit Facility is
    available for letters of credit in U.S.&#160;dollars
    <FONT style="white-space: nowrap">and/or</FONT> Cdn.
    dollars. See &#147;Consolidated Capitalization of the
    Trust&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The interest rate on loans under the Secured Facility that are
    denominated in U.S.&#160;dollars is, at the option of Precision,
    either a margin over an adjusted United States base rate (the
    &#147;<B>ABR rate</B>&#148;) or a margin over a Eurodollar rate.
    The interest rate on loans denominated in Canadian dollars is,
    at the option of Precision, a margin over the Canadian prime
    rate or a margin over the bankers&#146; acceptance rate. Certain
    of the margins on the Revolving Credit Facility are subject to
    reduction based upon a leverage test.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Revolving Credit Facility provides for a commitment fee of
    0.60% (subject to reduction based on a leverage test) on the
    unused portion; a fee on the outstanding amount of the letters
    of credit denominated in U.S.$ equal to the margin applicable to
    the Eurodollar rate; and a fee on the outstanding amount of the
    letters of credit denominated in Cdn.$ equal to the margin
    applicable to the bankers&#146; acceptance rate (subject to
    reduction for non-financial letters of credit).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Secured Facility requires the following amounts to be used
    as prepayments of the term loans: (i)&#160;100% of the net cash
    proceeds of any incurrence of debt by the Trust, Precision or
    their subsidiaries (subject to certain exceptions);
    (ii)&#160;100% of the net cash proceeds of certain sales or
    other dispositions of any assets belonging to the Trust,
    Precision or their subsidiaries, except to the extent the Trust,
    Precision or their subsidiaries use the proceeds from the sale
    or disposition to acquire, improve or repair assets useful in
    their business within a specified period; and (iii)&#160;75% of
    the Trust&#146;s annual excess cash flow, which percentage will
    be reduced to 50%, 25% and 0% if the Trust achieves and
    maintains a consolidated leverage ratio of less than 2.00 to
    1.00, 1.25 to 1.00, and 0.75 to 1.00, respectively. In addition
    to mandatory prepayments, the Trust will have the option to
    prepay the loans under the Secured Facility generally without
    premium or penalty, other than customary &#147;breakage&#148;
    costs for Eurodollar rate loans.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Term Loan A Facility will be repayable in quarterly
    installments in aggregate annual amounts equal to 5% of the
    original principal amount thereof in the first year following
    the closing date, 10% of the original principal amount thereof
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 12 -
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    in the second year following the closing date, 10% of the
    original principal amount thereof in the third year following
    the closing date and 15% of the original principal amount
    thereof in the fourth and fifth years following the closing
    date, with the balance payable on the final maturity date
    thereof, which is December&#160;23, 2013.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Term Loan B Facility will be repayable in quarterly
    installments in an aggregate annual amount equal to 5% of the
    original principal amount thereof with the balance payable on
    the final maturity date thereof, which is September&#160;30,
    2014.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust, Precision and their material subsidiaries organized
    in Canada or the United States (other than certain excluded
    subsidiaries) and each other subsidiary that becomes a party to
    the collateral documents (collectively, the &#147;<B>Subsidiary
    Guarantors</B>&#148;) have pledged substantially all of their
    tangible and intangible assets (with certain exceptions) that
    are located in Canada or the United States as collateral,
    secured by a perfected first priority lien, subject to certain
    permitted liens. In addition, the Trust and the Subsidiary
    Guarantors have guaranteed the obligations of Precision under
    the Secured Facility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Secured Facility contains a number of covenants that, among
    other things, restrict, subject to certain exceptions, the
    Trust&#146;s, Precision&#146;s and their subsidiaries&#146;
    ability to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    incur additional indebtedness;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    sell assets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    pay dividends and distributions (including by the Trust to
    Unitholders) or purchase the Trust&#146;s, Precision&#146;s or
    their subsidiaries&#146; capital stock or trust units;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    make investments or acquisitions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    make optional payments or repurchases of any subordinated
    indebtedness and certain other debt;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    amend material agreements relating to the Acquisition and the
    financing thereof;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    change the Trust&#146;s, Precision&#146;s or their
    subsidiaries&#146; lines of business;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    engage in sale leasebacks;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    incur liens on their assets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    enter into mergers, consolidations or amalgamations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    make capital expenditures;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    enter into transactions with foreign subsidiaries of the Trust
    or Precision other than wholly-owned subsidiaries that provide
    guarantees;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    enter into swap agreements;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    make changes to their respective fiscal periods;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    enter into negative pledge clauses;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    agree to restrict subsidiary distributions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Secured Facility requires the Trust and Precision to comply
    with certain financial ratios, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    a maximum total leverage ratio;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    a minimum interest coverage ratio;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    a minimum fixed charge coverage ratio.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Secured Facility also contains customary affirmative
    covenants and events of default.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to complete a successful syndication of the Secured
    Facility, the Commitment Banks are entitled, prior to
    March&#160;23, 2009 (extendible to May&#160;22, 2009 at
    Precision&#146;s option) in consultation with Precision, to
    change certain of the terms of the Credit Facilities including,
    without limitation, to implement additional increases in
    interest rates, original issue discounts
    <FONT style="white-space: nowrap">and/or</FONT>
    upfront fees, reallocate up to U.S.$250&#160;million between the
    Term Loan A Facility and the Term Loan B Facility, reallocate up
    to U.S.$150&#160;million between the Secured Facility and the
    Bridge Facility and amend certain covenants, financial ratio
    tests and other provisions for portions of the Secured Facility.
    See &#147;Consolidated Capitalization of the Trust&#148;.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 13 -
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<A name='120'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Bridge
    Facility</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision (as the borrower) and the Trust (as a guarantor)
    entered into a credit agreement dated December&#160;23, 2008
    governing the Bridge Facility with the lenders parties thereto,
    Royal Bank of Canada, as syndication agent, Deutsche Bank AG
    Cayman Islands Branch, as administrative agent and HSBC Bank
    USA, National Association, as documentation agent. The Bridge
    Facility provides senior unsecured financing of up to
    U.S.$400&#160;million of which approximately
    U.S.$137.5&#160;million was drawn after completion of the
    Acquisition and the related financing transactions, with up to
    approximately an additional U.S.$262.5&#160;million available to
    fund, in whole or in part, the repurchase of Grey Wolf
    convertible notes that may be tendered for repurchase by holders
    under a change of control offer to be made in the first quarter
    of 2009. See &#147;Recent Developments&#160;&#151; Acquisition
    of Grey Wolf, Inc.&#148; and &#147;Consolidated Capitalization
    of the Trust&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The loans under the Bridge Facility bear interest at a fixed
    rate per annum of 17%, will initially mature on
    December&#160;23, 2009, and, to the extent unpaid on that date,
    will be converted into term loans that will mature on
    December&#160;23, 2016 provided that the loans will not be
    converted to term loans if an event of default has occurred
    under the Bridge Facility or the Secured Facility or certain
    other conditions are not satisfied.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The loans under the Bridge Facility are subject to mandatory
    prepayments from the net cash proceeds from the issuance or sale
    of any equity interests by the Trust (subject to certain
    exceptions), and, subject to the prior rights of the lenders
    under the Secured Facility, are also subject to mandatory
    prepayments from: (i)&#160;100% of the net cash proceeds of any
    incurrence of debt by the Trust, Precision or their subsidiaries
    (subject to certain exceptions); and (ii)&#160;100% of the net
    cash proceeds of certain sales or other dispositions of any
    assets belonging to the Trust, Precision or their subsidiaries,
    except to the extent the Trust, Precision or their subsidiaries
    use the proceeds from a sale or disposition to acquire, improve
    or repair assets to be used in their business within a specified
    period. In addition to mandatory prepayments, the Trust has the
    option to prepay the loans under the Bridge Facility, without
    premium or penalty, prior to the exchange of the loans for
    exchange notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    After the initial maturity date of the Bridge Facility of
    December&#160;23, 2009, each lender under the Bridge Facility
    may request the Trust issue an exchange note bearing interest at
    a specified interest rate (to be calculated on the date of
    issuance of such exchange note based on the greater of 16.66%
    and a market-based interest rate cap) in replacement for the
    term loan (or a portion thereof) made under the Bridge Facility.
    In the event that the Trust receives such a request, the Trust
    shall, as promptly as practicable after being requested to do
    so, among other things: (i)&#160;enter into an exchange note
    indenture pursuant to which the exchange notes will be issued
    and governed; (ii)&#160;enter into an exchange and registration
    rights agreement providing for, among other things, registration
    rights in respect of the exchange notes in favour of the holders
    thereof; and (iii)&#160;cause to be issued exchange notes in the
    same principal aggregate amount as the term loan being exchanged.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, after June&#160;30, 2009 (or after April&#160;1,
    2009 in certain circumstances), the lenders under the Bridge
    Facility may require that debt securities be issued and sold to
    repay amounts outstanding under the Bridge Facility, subject to
    certain specified terms and conditions. Precision has agreed to
    engage one or more investment banks to publicly sell or
    privately place debt securities in such circumstances, the
    proceeds of which will be used to repay outstanding loans under
    the Bridge Facility. The Trust may also, at any time, issue
    equity or debt securities and Precision may, at any time, issue
    debt securities to repay outstanding loans under the Bridge
    Facility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Bridge Facility is unsecured and has been guaranteed by the
    Trust and each subsidiary of the Trust that guaranteed the
    Secured Facility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Bridge Facility contains a number of covenants that, among
    other things, restrict, subject to certain exceptions, the
    Trust&#146;s, Precision&#146;s and their subsidiaries ability to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    make certain restricted payments (which include dividends,
    distributions (including by the Trust to Unitholders),
    redemptions and certain investments);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    make distributions to the Trust;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    incur additional indebtedness;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    sell assets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    enter into transactions with affiliates;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    incur liens on their assets;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 14 -
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    change the primary business of the Trust;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    enter into mergers, consolidations or amalgamations;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    amend certain material agreements.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Bridge Facility also contains customary affirmative
    covenants and events of default, including customary cross
    payment defaults.
</DIV>
<A name='121'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The terms of the documents governing the Credit Facilities
    contain provisions that in effect ensure that the lenders have
    priority as to payment over the Unitholders in respect to the
    assets and income of the Trust and its subsidiaries. Amounts due
    and owing to the lenders under the Credit Facilities must be
    paid before any distributions can be made to Unitholders. This
    relative priority of payments could result in a temporary or
    permanent interruption of distributions to Unitholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As at December&#160;31, 2008, approximately
    $1,087.0&#160;million was outstanding under the Secured Facility
    and approximately $168.4&#160;million was outstanding under the
    Bridge Facility. See &#147;Consolidated Capitalization of the
    Trust&#148;. The Revolving Credit Facility may be redrawn by
    Precision in the future to fund capital expenditures or for
    other corporate purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the time of the closing of the Acquisition, Grey Wolf had
    outstanding $321.2&#160;million aggregate principal amount of
    convertible notes, the obligations for which were assumed by
    Lobos. Pursuant to the terms of the convertible notes, during
    the first quarter of 2009, Lobos, as successor to Grey Wolf, is
    required to make to the holders thereof a &#147;change of
    control&#148; offer to repurchase any or all of the outstanding
    convertible notes at 100% of the principal amount thereof, plus
    accrued but unpaid interest to the date of the repurchase,
    payable in cash. See &#147;Consolidated Capitalization of the
    Trust&#148;.
</DIV>
<A name='122'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PLAN OF
    DISTRIBUTION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust may sell the Securities (i)&#160;to underwriters or
    dealers purchasing as principals, (ii)&#160;directly to one or
    more purchasers pursuant to applicable statutory exemptions, or
    (iii)&#160;through agents in Canada, the United States and
    elsewhere where permitted by law, for cash or other
    consideration. The Securities may be sold at fixed prices or
    non-fixed prices, such as prices determined by reference to the
    prevailing price of the Securities in a specified market, at
    market prices prevailing at the time of sale or at prices to be
    negotiated with purchasers, which prices may vary as between
    purchasers and during the period of distribution of the
    Securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Prospectus Supplement for any of the Securities being
    offered will set forth the terms of the offering of those
    Securities, including the name or names of any underwriters,
    dealers or agents, the purchase price of the Securities, the
    proceeds to the Trust from that sale if determinable, any
    underwriting fees or discounts and other items constituting
    underwriters&#146; compensation, any public offering price, and
    any discounts or concessions allowed or re-allowed or paid to
    dealers or agents. Only underwriters named in the relevant
    Prospectus Supplement are deemed to be underwriters in
    connection with the Securities offered by that Prospectus
    Supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If underwriters purchase Securities as principal, the Securities
    will be acquired by the underwriters for their own account and
    may be resold from time to time in one or more transactions,
    including negotiated transactions, at a fixed public offering
    price or at varying prices determined at the time of sale. The
    obligations of the underwriters to purchase those Securities
    will be subject to certain conditions precedent, and the
    underwriters will be obligated to purchase all the Securities
    offered by the Prospectus Supplement if any of such Securities
    are purchased. Any public offering price and any discounts or
    concessions allowed or reallowed or paid to dealers may be
    changed from time to time. The Securities may also be sold
    directly by the Trust at prices and upon terms agreed to by the
    purchaser and the Trust or through agents designated by the
    Trust from time to time. Any agent involved in the offering and
    sale of the Securities pursuant to this prospectus will be
    named, and any commissions payable by the Trust to that agent
    will be set forth, in the applicable Prospectus Supplement.
    Unless otherwise indicated in the Prospectus Supplement, any
    agent would be acting on a best efforts basis for the period of
    its appointment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust may agree to pay the underwriters a commission for
    various services relating to the issue and sale of any
    Securities offered by this prospectus. Any such commission will
    be paid out of the Trust&#146;s general funds. Underwriters,
    dealers and agents who participate in the distribution of the
    Securities may be entitled under agreements to be entered into
    with the Trust to indemnification against certain liabilities,
    including liabilities under securities legislation, or to
    contribution with respect to payments that those underwriters,
    dealers or agents may be required to make in respect thereof.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 15 -
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any offering of Securities, other than Trust&#160;Units, will be
    a new issue of securities with no established trading market.
    Unless otherwise specified in the applicable Prospectus
    Supplement, such Securities will not be listed on any securities
    exchange. Certain dealers may make a market in such Securities,
    but will not be obligated to do so and may discontinue any
    market making at any time without notice. No assurance can be
    given that any dealer will make a market in such Securities or
    as to the liquidity of the trading market, if any, for the such
    Securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as set out in a Prospectus Supplement relating to a
    particular offering of Securities in connection with any
    offering of Securities, the underwriters, dealers or agents, as
    the case may be, may over-allot or effect transactions intended
    to fix or stabilize the market price of the Units at a level
    above that which might otherwise prevail in the open market.
    Such transactions, if commenced, may be discontinued at any time.
</DIV>
<A name='123'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF TRUST&#160;UNITS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary of the material attributes and
    characteristics of the Trust&#160;Units and is subject to, and
    qualified in its entirety by, reference to the terms of the
    Declaration of Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of January&#160;20, 2009, there were 160,061,065
    Trust&#160;Units and 132,583 Exchangeable Units issued and
    outstanding. Each Exchangeable Unit can be exchanged into
    Trust&#160;Units at any time at the option of the holder based
    on the exchange ratio in effect at the date of exchange (being,
    as of the date of this prospectus, one for one). Each
    Trust&#160;Unit entitles the holder thereof to one vote at any
    meeting of Unitholders, or in respect of any written resolution
    of Unitholders, and represents an equal undivided beneficial
    interest in any distribution from the Trust (whether from
    income, net realized capital gains or other amounts) and in any
    net assets of the Trust in the event of the termination or
    winding up of the Trust. All Trust&#160;Units rank among
    themselves equally and rateably without discrimination,
    preference or priority whatsoever. Each Trust&#160;Unit is
    transferable, is not subject to any conversion or pre-emptive
    rights and entitles the holder thereof to require the Trust to
    redeem any or all of the Trust&#160;Units held by such holder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust&#160;Units do not represent a traditional investment
    and should not be viewed by investors as &#147;shares&#148; in
    either the Trust or Precision. As holders of Trust&#160;Units,
    Unitholders do not have the statutory rights normally associated
    with ownership of shares of a corporation including, for
    example, the right to bring &#147;oppression&#148; or
    &#147;derivative&#148; actions. The market price of the
    Trust&#160;Units will be sensitive to, among other things, the
    anticipated distributable income from the Trust, as well as a
    variety of market conditions including, but not limited to,
    interest rates, commodity prices and the ability of the Trust to
    maintain and grow revenues. Changes in market conditions may
    adversely affect the trading price of the Trust&#160;Units. See
    &#147;Risk Factors&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Trust&#160;Units are not &#147;deposits</B>&#148;<B>
    within the meaning of the <I>Canada Deposit Insurance
    Corporation Act </I>(Canada) and are not insured under the
    provisions of that Act or any other legislation. Furthermore,
    the Trust is not a trust company and, accordingly, is not
    registered under any trust and loan company legislation, as it
    does not carry on or intend to carry on the business of a trust
    company.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Trust is not a legally recognized entity within the
    relevant definitions of the <I>Bankruptcy and Insolvency Act
    </I>(Canada), the <I>Companies&#146; Creditors Arrangement Act
    </I>(Canada) and, in some cases, the <I>Winding Up and
    Restructuring Act </I>(Canada). As a result, in the event a
    restructuring of the Trust were necessary, the Trust would not
    be able to access the remedies available thereunder. In the
    event of a restructuring, the position of Unitholders may be
    different than that of the shareholders of a corporation.</B>
</DIV>
<A name='124'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Issuance
    of Trust&#160;Units</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Declaration of Trust provides that Trust&#160;Units,
    including rights, warrants, options or other securities
    convertible into or exchangeable for Trust&#160;Units, may be
    created, issued, sold and delivered on such terms and conditions
    and at such times as the trustees of the Trust may determine.
    The Declaration of Trust also provides that the trustees of the
    Trust may authorize the creation and issuance of any type of
    debt securities or convertible debt securities of the Trust from
    time to time on such terms and conditions to such persons and
    for such consideration as the trustees of the Trust may
    determine.
</DIV>
<A name='125'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Purchase
    of Trust&#160;Units</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust may from time to time purchase for cancellation some
    or all of the Trust&#160;Units (or other securities of the Trust
    which may be issued and outstanding from time to time) in the
    market, by private agreement or upon any recognized stock
    exchange on which such Trust&#160;Units are traded or pursuant
    to tenders received by the Trust upon request for tenders
    addressed to all holders of record of Trust&#160;Units, provided
    in each case that the trustees of the Trust have determined that
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 16 -
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    such purchases are in the best interests of the Trust. Any such
    purchases may constitute an &#147;issuer bid&#148; under
    Canadian provincial securities legislation and must be conducted
    in accordance with the applicable requirements thereof.
</DIV>
<A name='126'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Trust&#160;Unit
    Redemption&#160;Right</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Trust&#160;Units are redeemable at any time on demand by the
    holders thereof upon delivery to the Trust of a duly completed
    and properly executed notice requesting the Trust to redeem
    Trust&#160;Units. Upon receipt of the notice to redeem
    Trust&#160;Units by the Trust, the holder thereof shall
    thereafter cease to have any rights with respect to the
    Trust&#160;Units tendered for redemption (other than to receive
    the redemption payment therefor unless the redemption payment is
    not made as required) including the right to receive any
    distributions thereon which are declared payable on a date
    subsequent to the day of receipt by the Trust of the notice
    requesting redemption.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Cash
    Redemption</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon receipt by the Trust of the notice to redeem
    Trust&#160;Units, the tendering Unitholder will thereafter be
    entitled to receive a price per Trust&#160;Unit (the
    &#147;<B>Market Redemption&#160;Price</B>&#148;) equal to the
    lesser of: (a)&#160;90% of the market price per Trust&#160;Unit
    on the principal stock exchange on which the Trust&#160;Units
    are listed (or, if the Trust&#160;Units are not listed on any
    such exchange, on the principal market on which the
    Trust&#160;Units are quoted for trading) during the period of
    the last ten trading days immediately prior to the date on which
    the Trust&#160;Units were tendered for redemption; and
    (b)&#160;the closing market price per Trust&#160;Unit on the
    principal stock exchange on which the Trust&#160;Units are
    listed (or, if the Trust&#160;Units are not listed on any such
    exchange, on the principal market on which the Trust&#160;Units
    are quoted for trading) on the date that the Trust&#160;Units
    were tendered for redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The aggregate Market Redemption&#160;Price payable by the Trust
    in respect of the Trust&#160;Units tendered for redemption
    during any calendar month shall be satisfied by way of a cash
    payment on the last day of the calendar month following the
    month in which the Trust&#160;Units were tendered for redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unitholders will not receive cash upon the redemption of their
    Trust&#160;Units if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (a)&#160;&#160;&#160;</TD>
    <TD align="left">
    the total amount payable by the Trust in respect of such Trust
    Units and all other Trust&#160;Units tendered for redemption in
    the same calendar month exceeds $50,000; provided that the
    trustees of the Trust may, in their sole discretion, waive such
    limitation in respect of all Trust&#160;Units tendered for
    redemption in any calendar month. If this limitation is not so
    waived, the Trust&#160;Units tendered for redemption in such
    calendar month shall be redeemed for cash based on the Market
    Redemption&#160;Price and, unless any applicable regulatory
    approvals are required, by a distribution in specie of the
    Trust&#146;s assets, which may include Redemption&#160;Notes (as
    defined below) or other assets held by the Trust, on a pro-rata
    basis;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (b)&#160;&#160;&#160;</TD>
    <TD align="left">
    at the time such Trust&#160;Units are tendered for redemption,
    the outstanding Trust&#160;Units are not listed for trading on
    the Toronto Stock Exchange or traded or quoted on any stock
    exchange or market which the trustees of the Trust consider, in
    their sole opinion, provides representative fair market value
    prices for the Trust&#160;Units;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (c)&#160;&#160;&#160;</TD>
    <TD align="left">
    the normal trading of the Trust&#160;Units is suspended or
    halted on any stock exchange on which the Trust&#160;Units are
    listed for trading or, if not so listed, on any market on which
    the Trust&#160;Units are quoted for trading, on the date that
    such Trust&#160;Units tendered for redemption were tendered to
    the Trust for redemption or for more than five trading days
    during the ten day trading period prior to the date on which
    such Trust Units were tendered for redemption;&#160;or
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (d)&#160;&#160;&#160;</TD>
    <TD align="left">
    the redemption of Trust&#160;Units will result in the delisting
    of the Trust&#160;Units on the principal stock exchange on which
    the Trust&#160;Units are listed.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">In
    Specie Redemption</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a Unitholder is not entitled to receive cash upon the
    redemption of Trust&#160;Units as a result of one or more of the
    foregoing limitations, then each Trust&#160;Unit tendered for
    redemption will, subject to any applicable regulatory approvals,
    be redeemed by way of a distribution in specie. In such
    circumstances, the support agreement dated November&#160;7,
    2005, among the Trust, PDLP (as defined herein), the General
    Partner (as defined herein) and Precision (the &#147;<B>Support
    Agreement</B>&#148;) provides that, upon the direction of the
    trustees of the Trust, PDLP will request partial repayment of
    the debt incurred by Precision in connection with its conversion
    into a trust structure and use the funds received therefrom to
    subscribe for new notes from Precision (the
    &#147;<B>Redemption&#160;Notes</B>&#148;) with a 15&#160;year
    maturity and that will bear interest at a market rate to be
    determined by the board of directors of Precision, payable
    monthly in arrears on the 15th&#160;day of each calendar month
    that such Redemption&#160;Note is outstanding.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 17 -
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the terms of the Support Agreement, PDLP will
    distribute the Redemption&#160;Notes to the Trust as the holder
    of Class&#160;A limited partnership units of PDLP and the Trust
    will distribute these Redemption&#160;Notes to the redeeming
    Unitholders in satisfaction of the Market Redemption&#160;Price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the terms of the Support Agreement, Precision has
    agreed to enter into a note indenture, prior to issuance of the
    Redemption&#160;Notes, that will set out the definitive terms of
    the Redemption&#160;Notes and provide for a note trustee. The
    Support Agreement provides that the Redemption&#160;Notes will
    be direct, subordinated obligations of Precision ranking
    subordinate to all senior unsecured indebtedness. The Support
    Agreement further provides that the note indenture governing the
    Redemption&#160;Notes must contain events of default that are
    market standard for notes of this nature, the occurrence of
    which will result in the principal and any accrued and unpaid
    interest on the Redemption&#160;Notes being immediately due and
    payable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Rather than distributing Redemption&#160;Notes in satisfaction
    of the Market Redemption&#160;Price for Trust&#160;Units
    tendered for redemption in the circumstances described above,
    the trustees of the Trust may, provided certain conditions have
    been met, determine to satisfy the Market Redemption&#160;Price
    by way of an alternate distribution in specie to redeeming
    Unitholders. In order to make an in specie distribution other
    than Redemption&#160;Notes to redeeming Unitholders or for the
    Trust to redeem Trust&#160;Units with its own indebtedness, the
    trustees of the Trust must have received both a written opinion
    of tax counsel that such a distribution of Trust assets does not
    have a material adverse effect on other Unitholders and a
    written opinion from a financial advisor that such Trust assets
    being distributed in lieu of Redemption&#160;Notes would be
    reasonably considered to be financially equivalent in value to
    Redemption&#160;Notes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Where the Trust makes a distribution in specie of any assets of
    the Trust on the redemption of Trust&#160;Units by a Unitholder,
    the trustees of the Trust retain the discretion to designate to
    the account of such Unitholder any capital gains realized by the
    Trust or income of the Trust arising as a result of such
    redemption and distribution. It is anticipated that the
    redemption right described above will not be the primary
    mechanism for holders of Trust&#160;Units to dispose of their
    Trust&#160;Units. Redemption&#160;Notes or other Trust assets
    that may be distributed in specie to Unitholders in connection
    with a redemption will not be listed on any stock exchange, no
    market is expected to develop in Redemption&#160;Notes or other
    Trust assets and they may be subject to resale restrictions
    under applicable securities laws. Redemption&#160;Notes or other
    Trust assets so distributed may not be qualified investments for
    Exempt Plans (as defined herein) depending on the circumstances
    at the time. See &#147;Risk Factors &#151;&#160;Risks Relating
    to the Structure of the Trust&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The aggregate Market Redemption&#160;Price payable by the Trust
    in respect of the Trust&#160;Units tendered for redemption
    during any calendar month shall be paid by the transfer, to or
    to the order of the Unitholder who exercised the right of
    redemption, on the last day of the calendar month following the
    month in which the Trust&#160;Units were tendered for
    redemption, of Redemption&#160;Notes or Trust assets, as the
    case may be.
</DIV>
<A name='127'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Meetings
    of Unitholders</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Declaration of Trust provides that meetings of Unitholders
    must be called and held for, among other matters, the election
    of trustees of the Trust, the appointment or removal of the
    auditors of the Trust, the approval of amendments to the
    Declaration of Trust (except as described below under
    &#147;Amendments to the Declaration of Trust&#148;), the sale of
    all or substantially all of the Trust&#146;s assets and the
    dissolution or termination of the Trust. Meetings of Unitholders
    will be called and held annually for, among other things, the
    election of trustees of the Trust and the appointment of the
    auditors of the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A meeting of Unitholders may be convened at any time and for any
    purpose by the trustees of the Trust and must be convened,
    except in certain circumstances, if requisitioned by the holders
    of not less than 5% of all votes entitled to be voted at a
    meeting of Unitholders (including the votes attached to
    Exchangeable Units (as defined herein) by virtue of the special
    voting unit (the &#147;<B>Special Voting Unit</B>&#148;) of the
    Trust issued pursuant to the Voting and Exchange
    Trust&#160;Agreement dated November&#160;7, 2005, among the
    Trust, PDLP and Computershare Trust&#160;Company of Canada (the
    &#147;<B>Voting and Exchange Trust&#160;Agreement</B>&#148;)) by
    a written requisition. A requisition must, among other things,
    state in reasonable detail the business purpose for which the
    meeting is to be called.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the Voting and Exchange Trust&#160;Agreement, only
    Unitholders of record may attend and vote at meetings of
    Unitholders either in person or by proxy and a proxyholder need
    not be a Unitholder. Two persons present in person or
    represented by proxy and representing in the aggregate at least
    5% of the votes attaching to all outstanding Trust&#160;Units
    shall constitute a quorum for the transaction of business at all
    such meetings. For the purposes of determining such quorum, the
    Special Voting Unit shall be regarded as representing
    outstanding Trust&#160;Units equivalent in number to the number
    of Exchangeable Units represented by proxy by Computershare
    Trust&#160;Company of Canada at such meeting.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 18 -
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Declaration of Trust contains provisions as to the notice
    required and other procedures with respect to the calling and
    holding of meetings of Unitholders in accordance with the
    requirements of applicable laws.
</DIV>
<A name='128'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Limitation
    on Non-Resident Ownership</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is in the best interest of Unitholders that the Trust always
    qualify as a &#147;mutual fund trust&#148; under the Tax Act and
    in order to ensure the maintenance of such status the
    Declaration of Trust provides, in part, that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (a)&#160;&#160;&#160;</TD>
    <TD align="left">
    if determined necessary or desirable by the trustees of the
    Trust, in their sole discretion, the Trust may, from time to
    time, among other things, take all necessary steps to monitor
    the activities of the Trust and ownership of the
    Trust&#160;Units. If at any time the Trust or the trustees of
    the Trust become aware that the activities of the Trust
    <FONT style="white-space: nowrap">and/or</FONT>
    ownership of the Trust&#160;Units by non-residents of Canada may
    threaten the status of the Trust under the Tax Act as a
    &#147;unit trust&#148; or a &#147;mutual fund trust&#148;, the
    Trust, by or through the trustees of the Trust on the
    Trust&#146;s behalf, is authorized to take such action as may be
    necessary in the opinion of the trustees of the Trust to
    maintain the status of the Trust as a &#147;unit trust&#148; or
    a &#147;mutual fund trust&#148; including, without limitation,
    the imposition of restrictions on the issuance by the Trust of
    Trust&#160;Units or the transfer by any Unitholder of
    Trust&#160;Units to a non-resident of Canada
    <FONT style="white-space: nowrap">and/or</FONT>
    require the sale of Trust&#160;Units by non-residents of Canada
    on a basis determined by the trustees of the Trust
    <FONT style="white-space: nowrap">and/or</FONT>
    suspend distribution
    <FONT style="white-space: nowrap">and/or</FONT> other
    rights in respect of Trust&#160;Units held by non-residents of
    Canada transferred contrary to the foregoing provisions or not
    sold in accordance with the requirements thereof;&#160;and
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (b)&#160;&#160;&#160;</TD>
    <TD align="left">
    in addition to the foregoing, the transfer agent of the Trust
    Units, by or through the trustees of the Trust may, if
    determined appropriate by the trustees of the Trust, establish
    operating procedures for, and maintain, a reservation system
    which may limit the number of Trust&#160;Units that
    non-residents of Canada may hold, limit the transfer of the
    legal or beneficial interest in any Trust&#160;Units to
    non-residents of Canada unless selected through a process
    determined appropriate by the trustees of the Trust, which may
    either be a random selection process or a selection process
    based on the first to register, or such other basis as
    determined by the trustees of the Trust. The operating
    procedures relating to such reservation system shall be
    determined by the trustees of the Trust and, prior to
    implementation, the Trust shall publicly announce the
    implementation of the same. Such operating procedures may, among
    other things, provide that any transfer of a legal or beneficial
    interest in any Trust&#160;Units contrary to the provisions of
    such reservation system may not be recognized by the Trust.
</TD>
</TR>

</TABLE>
<A name='129'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Amendments
    to the Declaration of Trust</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The trustees of the Trust may, without the consent, approval or
    ratification of any of the Unitholders, amend the Declaration of
    Trust at any time:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (a)&#160;&#160;&#160;</TD>
    <TD align="left">
    for the purpose of ensuring the Trust&#146;s continuing
    compliance with applicable laws, regulations or policies of any
    governmental authority having jurisdiction over the trustees of
    the Trust or the Trust;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (b)&#160;&#160;&#160;</TD>
    <TD align="left">
    in a manner which, in the opinion of the trustees of the Trust,
    provides additional protection for the Unitholders;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (c)&#160;&#160;&#160;</TD>
    <TD align="left">
    in a manner which, in the opinion of the trustees of the Trust,
    is necessary or desirable as a result of changes in Canadian tax
    laws;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (d)&#160;&#160;&#160;</TD>
    <TD align="left">
    to remove any conflicts or inconsistencies in the Declaration of
    Trust or to make minor corrections which are, in the opinion of
    the trustees of the Trust, necessary or desirable and not
    prejudicial to the Unitholders;&#160;or
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (e)&#160;&#160;&#160;</TD>
    <TD align="left">
    to change the situs of, or the laws governing, the Trust which,
    in the opinion of the trustees of the Trust is desirable in
    order to provide Unitholders with the benefit of any legislation
    limiting their liability.
</TD>
</TR>

</TABLE>
<A name='130'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Term of
    the Trust</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Unitholders may vote by special resolution to terminate the
    Trust at any meeting of the Unitholders duly called for that
    purpose, following which the trustees of the Trust shall
    commence to
    <FONT style="white-space: nowrap">wind-up</FONT> the
    affairs of the Trust (and shall thereafter be restricted to only
    such activities).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless the Trust is earlier terminated or extended by vote of
    the Unitholders, the trustees of the Trust shall commence to
    <FONT style="white-space: nowrap">wind-up</FONT> the
    affairs of the Trust on such date as may be determined by the
    trustees of the Trust, being not more than two years prior to
    the earlier of September&#160;21, 2105 and the date which is one
    day prior to the date, if any, the Trust would otherwise be void
    by virtue of any applicable rule against perpetuities then in
    force in Alberta. In the event that the Trust is
    <FONT style="white-space: nowrap">wound-up,</FONT>
    the trustees of the Trust will sell and convert into money the
    assets of the Trust in one transaction or in a series of
    transactions at public or private sales and do all other acts
    appropriate to liquidate the property of the Trust, and shall in
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 19 -
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    all respects act in accordance with the directions, if any, of
    the Unitholders (in respect of termination authorized pursuant
    to a special resolution). After paying, retiring or discharging
    or making provision for the payment, retirement or discharge of
    all known liabilities and obligations of the Trust and providing
    for indemnity against any other outstanding liabilities and
    obligations, the trustees of the Trust shall, subject to
    obtaining all necessary regulatory approvals, distribute the
    remaining part of the proceeds of the sale of the assets
    together with any cash forming part of the Trust&#146;s assets
    pro-rata among the Unitholders.
</DIV>
<A name='131'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Take-Over
    Bids</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Declaration of Trust contains provisions to the effect that
    if a take-over bid, as defined under the <I>Securities Act
    </I>(Alberta), is made for the Trust&#160;Units and not less
    than 90% of the Trust&#160;Units (including Trust&#160;Units
    issuable upon the conversion, exercise or exchange of any
    securities exchangeable into Trust&#160;Units but not including
    any Trust&#160;Units held at the date of the take-over bid by or
    on behalf of, or issuable to, the offeror or an affiliate or
    associate of the offeror) are taken up and paid for by the
    offeror, the offeror will be entitled to acquire the
    Trust&#160;Units and Exchangeable Units held by Unitholders who
    did not accept the take-over bid on the terms offered by the
    offeror.
</DIV>
<A name='132'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF DEBT SECURITIES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following description of the terms of Debt Securities sets
    forth certain general terms and provisions of Debt Securities in
    respect of which a Prospectus Supplement may be filed. The
    particular terms and provisions of Debt Securities offered by
    any Prospectus Supplement, and the extent to which the general
    terms and provisions described below may apply thereto, will be
    described in the Prospectus Supplement filed in respect of such
    Debt Securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Debt Securities may be offered separately or in combination with
    one or more other Securities. The Trust may, from time to time,
    issue debt securities and incur additional indebtedness other
    than through the issue of Debt Securities pursuant to this
    prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Debt Securities will be issued under one or more indentures
    (each, a &#147;<B>Trust&#160;Indenture</B>&#148;), in each case
    between the Trust and a financial institution organized under
    the laws of Canada or any province thereof and authorized to
    carry on business as a trustee (each, a
    &#147;<B>Trustee</B>&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following description sets forth certain general terms and
    provisions of the Debt Securities and is not intended to be
    complete. The particular terms and provisions of the Debt
    Securities and a description of how the general terms and
    provisions described below may apply to the Debt Securities will
    be included in the applicable Prospectus Supplement. The
    following description is subject to the detailed provisions of
    the applicable Trust&#160;Indenture. Accordingly, reference
    should also be made to the applicable Trust&#160;Indenture, a
    copy of which will be filed by the Trust with the securities
    commission or similar regulatory authority in each of the
    provinces of Canada after it has been entered into and will be
    available electronically at <U>www.sedar.com.</U>
</DIV>
<A name='133'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Debt Securities may be issued from time to time in one or
    more series. The Trust may specify a maximum aggregate principal
    amount for the Debt Securities of any series and, unless
    otherwise provided in the applicable Prospectus Supplement, a
    series of Debt Securities may be reopened for issuance of
    additional Debt Securities of such series.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any Prospectus Supplement for Debt Securities supplementing this
    prospectus will contain the specific terms and other information
    with respect to the Debt Securities being offered thereby,
    including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (a)&#160;&#160;&#160;</TD>
    <TD align="left">
    the designation, aggregate principal amount and authorized
    denominations of such Debt Securities;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (b)&#160;&#160;&#160;</TD>
    <TD align="left">
    any limit upon the aggregate principal amount of such Debt
    Securities;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (c)&#160;&#160;&#160;</TD>
    <TD align="left">
    the currency or currency units for which such Debt Securities
    may be purchased and the currency or currency units in which the
    principal and any interest is payable (in either case, if other
    than Canadian dollars);
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (d)&#160;&#160;&#160;</TD>
    <TD align="left">
    the issue price (at par, at a discount or at a premium) of such
    Debt Securities;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (e)&#160;&#160;&#160;</TD>
    <TD align="left">
    the date or dates on which such Debt Securities will be issued
    and delivered;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (f)&#160;&#160;&#160;</TD>
    <TD align="left">
    the date or dates on which such Debt Securities will mature,
    including any provision for the extension of a maturity date, or
    the method of determination of such date(s);
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (g)&#160;&#160;&#160;</TD>
    <TD align="left">
    the rate or rates per annum (either fixed or floating) at which
    such Debt Securities will bear interest (if any) and, if
    floating, the method of determination of such rate;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 20 -
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (h)&#160;&#160;&#160;</TD>
    <TD align="left">
    the date or dates from which any such interest will accrue and
    on which such interest will be payable and the record date or
    dates for the payment of such interest, or the method of
    determination of such date(s);
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (i)&#160;&#160;&#160;
</TD>
    <TD align="left">    if applicable, the provisions for subordination of such Debt
    Securities to other indebtedness of the Trust;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (j)&#160;&#160;&#160;
</TD>
    <TD align="left">    the Trustee under the Trust&#160;Indenture pursuant to which
    such Debt Securities are to be issued;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (k)&#160;&#160;&#160;</TD>
    <TD align="left">
    any redemption term or terms under which such Debt Securities
    may be defeased whether at or prior to maturity;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (l)&#160;&#160;&#160;</TD>
    <TD align="left">
    any repayment or sinking fund provisions;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (m)&#160;&#160;&#160;</TD>
    <TD align="left">
    any events of default applicable to such Debt Securities;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (n)&#160;&#160;&#160;
</TD>
    <TD align="left">    whether such Debt Securities are to be issued in registered form
    or in the form of temporary or permanent global securities and
    the basis of exchange, transfer and ownership thereof;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (o)&#160;&#160;&#160;
</TD>
    <TD align="left">    any exchange or conversion terms and any provisions for the
    adjustment thereof;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (p)&#160;&#160;&#160;
</TD>
    <TD align="left">    if applicable, the ability of the Trust to satisfy all or a
    portion of any redemption of such Debt Securities, any payment
    of any interest on such Debt Securities or any repayment of the
    principal owing upon the maturity of such Debt Securities
    through the issuance of securities of the Trust or of any other
    entity, and any restriction(s) on the persons to whom such
    securities may be issued;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (q)&#160;&#160;&#160;
</TD>
    <TD align="left">    the provisions applicable to the modification of the terms of
    the Trust&#160;Indenture;&#160;and
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (r)&#160;&#160;&#160;</TD>
    <TD align="left">
    any other specific terms or covenants applicable to such Debt
    Securities.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust reserves the right to include in a Prospectus
    Supplement specific terms pertaining to the Debt Securities
    which are not within the options and parameters set forth in
    this prospectus. In addition, to the extent that any particular
    terms of the Debt Securities described in a Prospectus
    Supplement differ from any of the terms described in this
    prospectus, the description of such terms set forth in this
    prospectus shall be deemed to have been superseded by the
    description of such differing terms set forth in such Prospectus
    Supplement with respect to such Debt Securities.
</DIV>
<A name='134'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Ranking</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Debt Securities will be direct unsecured obligations of the
    Trust. The Debt Securities will be senior or subordinated
    indebtedness of the Trust as described in the applicable
    Prospectus Supplement. If the Debt Securities are senior
    indebtedness, they will rank equally and rateably with all other
    unsecured indebtedness of the Trust from time to time issued and
    outstanding which is not subordinated. If the Debt Securities
    are subordinated indebtedness, they will be subordinated to
    senior indebtedness of the Trust as described in the applicable
    Prospectus Supplement, and they will rank equally and rateably
    with other subordinated indebtedness of the Trust from time to
    time issued and outstanding as described in the applicable
    Prospectus Supplement. The Trust reserves the right to specify
    in a Prospectus Supplement whether a particular series of
    subordinated Debt Securities is subordinated to any other series
    of subordinated Debt Securities.
</DIV>
<A name='135'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Registration
    of Debt Securities</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Debt
    Securities in Book Entry Form</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Debt Securities of any series may be issued in whole or in part
    in the form of one or more global securities (&#147;<B>Global
    Securities</B>&#148;) registered in the name of a designated
    clearing agency (a &#147;<B>Depositary</B>&#148;) or its nominee
    and held by or on behalf of the Depositary in accordance with
    the terms of the applicable Trust&#160;Indenture. The specific
    terms of the depositary arrangement with respect to any portion
    of a series of Debt Securities to be represented by a Global
    Security will, to the extent not described herein, be described
    in the Prospectus Supplement relating to such series.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Global Security may not be transferred, except as a whole
    between the Depositary and a nominee of the Depositary or as
    between nominees of the Depositary, or to a successor Depositary
    or nominee thereof, until it is wholly exchanged for Debt
    Securities in certificated non-book-entry form in accordance
    with the terms of the applicable Trust&#160;Indenture. So long
    as the Depositary for a Global Security, or its nominee, is the
    registered owner of such Global Security, such Depositary or
    such nominee, as the case may be, will be considered the sole
    owner or holder of the Debt Securities represented by such
    Global Security for all purposes under the applicable
    Trust&#160;Indenture and payments of principal of and interest,
    if any, on the Debt Securities represented by a Global Security
    will be made by the Trust to the Depositary or its nominee.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 21 -
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Owners of beneficial interests in a Global Security will not be
    entitled to have the Debt Securities represented by such Global
    Security registered in their names, will not receive or be
    entitled to receive physical delivery of such Debt Securities in
    certificated non-book-entry form, will not be considered the
    owners or holders thereof under the applicable
    Trust&#160;Indenture and will be unable to pledge Debt
    Securities as security.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No Global Security may be exchanged in whole or in part for Debt
    Securities registered, and no transfer of a Global Security in
    whole or in part may be registered, in the name of any person
    other than the Depositary for such Global Security or any
    nominee of such Depositary unless:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (a)&#160;&#160;&#160;</TD>
    <TD align="left">
    there is a requirement to do so under applicable law;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (b)&#160;&#160;&#160;</TD>
    <TD align="left">
    the book-entry system ceases to exist;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (c)&#160;&#160;&#160;</TD>
    <TD align="left">
    the Trust or the Depositary advise the Trustee that the
    Depositary is no longer willing or able to properly discharge
    its responsibilities as depositary with respect to the Debt
    Securities and the Trust is unable to locate a qualified
    successor;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (d)&#160;&#160;&#160;</TD>
    <TD align="left">
    the Trust decides, at its option, to terminate the book-entry
    system through the Depositary;&#160;or
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (e)&#160;&#160;&#160;</TD>
    <TD align="left">
    if provided for in the Trust&#160;Indenture, after the
    occurrence of an event of default thereunder (provided the
    Trustee has not waived the event of default in accordance with
    the terms of the Trust&#160;Indenture), participants acting on
    behalf of beneficial holders representing, in aggregate, a
    threshold percentage of the aggregate principal amount of the
    Debt Securities then outstanding advise the Depositary in
    writing that the continuation of a book-entry system through the
    Depositary is no longer in their best interest,
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    whereupon such Global Security shall be exchanged for
    certificated non-book-entry Debt Securities of the same series
    in an aggregate principal amount equal to the principal amount
    of such Global Security and registered in such names and
    denominations as the Depositary may direct.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Principal and interest payments, if any, on the Debt Securities
    represented by a Global Security registered in the name of a
    Depositary or its nominee will be made to such Depositary or its
    nominee, as the case may be, as the registered owner of such
    Global Security. Neither the Trust, the Trustee nor any paying
    agent for such Debt Securities will have any responsibility or
    liability for any aspect of the records relating to or payments
    made on account of beneficial ownership interests in such Global
    Security or for maintaining, supervising or reviewing any
    records relating to such beneficial ownership interests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust, any underwriters, dealers or agents and any Trustee
    identified in an accompanying Prospectus Supplement, as
    applicable, will not have any liability or responsibility for
    (i)&#160;records maintained by the Depositary relating to
    beneficial ownership interests in the Debt Securities held by
    the Depositary or the book-entry accounts maintained by the
    Depositary, (ii)&#160;maintaining, supervising or reviewing any
    records relating to any such beneficial ownership interests, or
    (iii)&#160;any advice or representation made by or with respect
    to the Depositary and contained in this prospectus or in any
    Prospectus Supplement or Trust&#160;Indenture with respect to
    the rules and regulations of the Depositary or at the direction
    of Depositary participants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise stated in the applicable Prospectus Supplement,
    CDS Clearing and Depository Services Inc. or its successor will
    act as Depositary for any Debt Securities represented by a
    Global Security.
</DIV>
<A name='136'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Debt
    Securities in Certificated Form</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Debt Securities of any series may be issued in whole or in part
    in registered form as provided in the applicable
    Trust&#160;Indenture.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event that the Debt Securities are issued in certificated
    non-book-entry form, principal and interest, if any, will be
    payable, the transfer of such Debt Securities will be
    registerable and such Debt Securities will be exchangeable for
    Debt Securities in other denominations of a like aggregate
    principal amount at the office or agency maintained by the
    Trust. Payment of principal and interest, if any, on Debt
    Securities in certificated non-book-entry form may be made by
    cheque mailed to the address of the holders entitled thereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the foregoing limitations, Debt Securities of any
    authorized form or denomination issued under the applicable
    Trust&#160;Indenture may be transferred or exchanged for Debt
    Securities of any other authorized form or denomination or
    denominations, any such transfer or exchange to be for an
    equivalent aggregate principal amount of Debt Securities of the
    same series, carrying the same rate of interest and same
    redemption and other provisions as the Debt Securities so
    transferred or exchanged. Exchanges of Debt Securities of any
    series may be made at the offices of the applicable Trustee
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 22 -
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    and at such other places as the Trust may from time to time
    designate with the approval of the applicable Trustee and may be
    specified in the applicable Prospectus Supplement. Unless
    otherwise specified in the applicable Prospectus Supplement, the
    applicable Trustee will be the registrar and transfer agent for
    the Debt Securities issued under the applicable
    Trust&#160;Indenture.
</DIV>
<A name='137'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF WARRANTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This section describes the general terms that will apply to any
    warrants (the &#147;<B>Warrants</B>&#148;) for the purchase of
    Trust&#160;Units (the &#147;<B>Trust&#160;Unit
    Warrants</B>&#148;) or for the purchase of Debt Securities (the
    &#147;<B>Debt Warrants</B>&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Warrants may be offered separately or together with
    Trust&#160;Units or Debt Securities, as the case may be. Each
    series of Warrants will be issued under a separate Warrant
    agreement to be entered into between the Trust and one or more
    banks or trust companies acting as Warrant agent. A copy of the
    Warrant agreement will be filed by the Trust with the securities
    commission or similar regulatory authority in each of the
    provinces of Canada after it has been entered into by the Trust
    and will be available electronically at <U>www.sedar.com.</U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The applicable Prospectus Supplement will include details of the
    Warrant agreements covering the Warrants being offered. The
    Warrant agent will act solely as the agent of the Trust and will
    not assume a relationship of agency with any holders of Warrant
    certificates or beneficial owners of Warrants. The following
    sets forth certain general terms and provisions of the Warrants
    offered under this prospectus. The specific terms of the
    Warrants, and the extent to which the general terms described in
    this section apply to those Warrants, will be set forth in the
    applicable Prospectus Supplement.
</DIV>
<A name='138'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Trust&#160;Unit
    Warrants</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The particular terms of each issue of Trust&#160;Unit Warrants
    will be described in the related Prospectus Supplement. This
    description will include, where applicable:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (a)&#160;&#160;&#160;</TD>
    <TD align="left">
    the designation and aggregate number of Trust&#160;Unit Warrants;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (b)&#160;&#160;&#160;</TD>
    <TD align="left">
    the price at which the Trust&#160;Unit Warrants will be offered;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (c)&#160;&#160;&#160;</TD>
    <TD align="left">
    the currency or currencies in which the Trust&#160;Unit Warrants
    will be offered;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (d)&#160;&#160;&#160;</TD>
    <TD align="left">
    the date on which the right to exercise the Trust&#160;Unit
    Warrants will commence and the date on which the right will
    expire;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (e)&#160;&#160;&#160;</TD>
    <TD align="left">
    the number of Trust&#160;Units that may be purchased upon
    exercise of each Trust&#160;Unit Warrant and the price at which
    and currency or currencies in which that amount of securities
    may be purchased upon exercise of each Trust&#160;Unit Warrant;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (f)&#160;&#160;&#160;</TD>
    <TD align="left">
    the designation and terms of any securities with which the Trust
    Unit Warrants will be offered, if any, and the number of the
    Trust&#160;Unit Warrants that will be offered with each security;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (g)&#160;&#160;&#160;
</TD>
    <TD align="left">    the date or dates, if any, on or after which the Trust&#160;Unit
    Warrants and the related securities will be transferable
    separately;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (h)&#160;&#160;&#160;
</TD>
    <TD align="left">    whether the Trust&#160;Unit Warrants are subject to redemption
    or call and, if so, the terms of such redemption or call
    provisions;&#160;and
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (i)&#160;&#160;&#160;</TD>
    <TD align="left">
    any other material terms or conditions of the Trust&#160;Unit
    Warrants.
</TD>
</TR>

</TABLE>
<A name='139'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Debt
    Warrants</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The particular terms of each issue of Debt Warrants will be
    described in the related Prospectus Supplement. This description
    will include, where applicable:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (a)&#160;&#160;&#160;</TD>
    <TD align="left">
    the designation and aggregate number of Debt Warrants;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (b)&#160;&#160;&#160;</TD>
    <TD align="left">
    the price at which the Debt Warrants will be offered;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (c)&#160;&#160;&#160;</TD>
    <TD align="left">
    the currency or currencies in which the Debt Warrants will be
    offered;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (d)&#160;&#160;&#160;</TD>
    <TD align="left">
    the aggregate principal amount, currency or currencies,
    denominations and terms of the series of Debt Securities that
    may be purchased upon exercise of the Debt Warrants;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (e)&#160;&#160;&#160;</TD>
    <TD align="left">
    the designation and terms of any securities with which the Debt
    Warrants are being offered, if any, and the number of the Debt
    Warrants that will be offered with each security;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 23 -
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (f)&#160;&#160;&#160;</TD>
    <TD align="left">
    the date or dates, if any, on or after which the Debt Warrants
    and the related securities will be transferable separately;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (g)&#160;&#160;&#160;
</TD>
    <TD align="left">    the principal amount of Debt Securities that may be purchased
    upon exercise of each Debt Warrant and the price at which and
    currency or currencies in which that principal amount of
    securities may be purchased upon exercise of each Debt Warrant;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (h)&#160;&#160;&#160;
</TD>
    <TD align="left">    the date on which the right to exercise the Debt Warrants will
    commence and the date on which the right will expire;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (i)&#160;&#160;&#160;
</TD>
    <TD align="left">    the minimum or maximum amount of Debt Warrants that may be
    exercised at any one time;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (j)&#160;&#160;&#160;
</TD>
    <TD align="left">    whether the Debt Warrants will be subject to redemption or call,
    and, if so, the terms of such redemption or call
    provisions;&#160;and
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (k)&#160;&#160;&#160;</TD>
    <TD align="left">
    any other material terms or conditions of the Debt Warrants.
</TD>
</TR>

</TABLE>
<A name='140'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SUBSCRIPTION
    RECEIPTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The particular terms and provisions of Subscription Receipts
    offered by any Prospectus Supplement, and the extent to which
    the general terms and provisions described below may apply
    thereto, will be described in the Prospectus Supplement filed in
    respect of such Subscription Receipts. This description will
    include, where applicable: (i)&#160;the number of Subscription
    Receipts; (ii)&#160;the price at which the Subscription Receipts
    will be offered; (iii)&#160;the procedures for the exchange of
    the Subscription Receipts into Trust&#160;Units or other
    securities; (iv)&#160;the number of Trust&#160;Units or other
    securities that may be obtained upon exercise of each
    Subscription Receipt; (v)&#160;the designation and terms of any
    other securities with which the Subscription Receipts will be
    offered, if any, and the number of Subscription Receipts that
    will be offered with each Trust&#160;Unit or security;
    (vi)&#160;the terms applicable to the gross proceeds from the
    sale of the Subscription Receipts plus any interest earned
    thereon; and (vii)&#160;any other material terms and conditions
    of the Subscription Receipts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subscription Receipts may be offered separately or in
    combination with one or more other Securities. The Subscription
    Receipts will be issued under a Subscription Receipt agreement.
    A copy of the Subscription Receipt agreement will be filed by
    the Trust with the securities commission or similar regulatory
    authority in each of the provinces of Canada after it has been
    entered into by the Trust and will be available electronically
    at <U>www.sedar.com.</U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the Subscription Receipt agreement, original
    purchasers of Subscription Receipts will have a contractual
    right of rescission against the Trust, following the issuance of
    the underlying Trust&#160;Units or other securities to such
    purchasers upon the surrender or deemed surrender of the
    Subscription Receipts, to receive the amount paid for the
    Subscription Receipts in the event that this prospectus and any
    amendment thereto contains a misrepresentation or is not
    delivered to such purchaser, provided such remedy for rescission
    is exercised within 180&#160;days from the closing date of the
    offering of Subscription Receipts.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 24 -
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<A name='141'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An investment in the Securities is subject to certain risks.
    Investors should carefully review and consider the risks
    described below and all other information contained in this
    prospectus and any Prospectus Supplement before making an
    investment decision and consult their own experts where
    necessary.
</DIV>
<A name='142'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Relating to the Structure of the Trust</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Trust is dependent on Precision and its subsidiaries for the
    amount of cash available for distributions.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To receive cash available for distribution, the Trust is
    dependent on the operations and assets of Precision (as well as
    its direct and indirect subsidiaries, including Lobos, the
    former Grey Wolf) through its interest in Precision Drilling
    Limited Partnership, a limited partnership formed under the laws
    of the Province of Manitoba (&#147;<B>PDLP</B>&#148;), which in
    turn owns 100% of the shares of Precision and the inter-company
    note owing by Precision to PDLP (the &#147;<B>Promissory
    Note</B>&#148;). Distributions to Unitholders and Exchangeable
    Units are dependent on the ability of Precision to make
    principal and interest payments on the Promissory Note,
    dividends and return of capital payments. The actual amount of
    cash available for distribution is dependent upon numerous
    factors relating to the business of Precision including
    profitability, changes in revenue, fluctuations in working
    capital, capital expenditure levels, applicable laws, compliance
    with contracts, contractual restrictions contained in the
    instruments governing its indebtedness, the impact of interest
    rates, the growth of the general economy, industry activity, the
    price of crude oil and natural gas, changes to tax laws,
    weather, future capital requirements and the number of
    Trust&#160;Units and Exchangeable Units issued and outstanding
    and potential tax liabilities resulting from any successful
    reassessments of prior taxation years by taxation authorities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any reduction in the amount of cash available for distribution,
    or actually distributed, by Precision to the Trust will
    adversely impact or limit the amount of cash available for
    distributions by the Trust to the Unitholders and the holders of
    Exchangeable Units. The market value of the Trust&#160;Units may
    deteriorate if the Trust is unable to meet distribution
    expectations in the future, and such deterioration may be
    material.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Distributions
    on the Trust&#160;Units are variable.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The actual cash flow available for distribution to Unitholders
    is a function of numerous factors including the Trust&#146;s,
    PDLP&#146;s and Precision&#146;s financial performance; debt
    covenants and obligations; working capital requirements; future
    upgrade capital expenditures and future expansion capital
    expenditure requirements for the purchase of property, plant and
    equipment; tax obligations; the impact of interest rates
    <FONT style="white-space: nowrap">and/or</FONT>
    foreign exchange rates; the growth of the general economy; the
    price of crude oil and natural gas; weather; and number of
    Trust&#160;Units and Exchangeable Units issued and outstanding.
    Cash distributions may be increased, reduced or suspended or
    eliminated entirely depending on the Trust&#146;s operations and
    the performance of its assets. The market value of the
    Trust&#160;Units may deteriorate if the Trust is unable to meet
    cash distribution expectations in the future, and that
    deterioration may be material.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Changes
    in legislation may have an adverse effect on
    Unitholders.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There can be no assurance that income tax laws related to the
    status of &#147;mutual fund trusts&#148;, the taxation of
    &#147;mutual fund trusts&#148;, or other matters will not be
    changed in a manner which adversely affects Unitholders.
    Environmental and applicable operating legislation may be
    changed in a manner which adversely affects Unitholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Risks
    associated with the taxation of the Trust and Precision could
    negatively affect the value of the
    Trust&#160;Units.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There can be no assurance that Canadian federal income tax laws
    and administrative policies respecting the treatment of
    &#147;mutual fund trusts&#148; will not be changed in a manner
    that adversely affects Unitholders. For example, if the Trust
    ceases to qualify as a &#147;mutual fund trust&#148; under the
    Tax Act, certain Canadian income tax considerations would be
    materially and adversely different in certain respects.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To qualify as a &#147;mutual fund trust&#148; for purposes of
    the Tax Act the Trust must continuously satisfy certain
    requirements as to the nature of its undertakings (primarily
    that it must restrict its activities to the investment of
    funds), its ability to distribute Trust&#160;Units to the
    public, the dispersal of ownership of its Trust&#160;Units and
    the requirement that, unless it meets certain exceptions, it
    must not be reasonable to consider that it was established or is
    maintained primarily for the benefit of Non-Canadian Holders (as
    defined herein).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As noted above, the Tax Act provides that a trust will not be
    considered to be a &#147;mutual fund trust&#148; for purposes of
    the Tax Act if it is established or is maintained primarily for
    the benefit of non-residents of Canada. However, this
    disqualification rule does not apply if all or substantially all
    of the trust&#146;s property is property other than
    &#147;taxable Canadian property&#148; as
</DIV>

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    <BR>
    - 25 -
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    defined in the Tax Act. Although no assurances can be provided,
    all or substantially all of the assets of the Trust should be
    property other than &#147;taxable Canadian property&#148; as
    defined in the Tax Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Relevant specific proposals to amend the Tax Act that have been
    publicly announced by the Minister of Finance (Canada) prior to
    the date of this prospectus (the &#147;<B>Proposed
    Amendments</B>&#148;) provide that the Trust will lose its
    status as a &#147;mutual fund trust&#148; if the aggregate fair
    market value of all Trust&#160;Units issued by the Trust and
    held by one or more non-residents of Canada or partnerships that
    are not &#147;Canadian partnerships&#148; (as defined in the Tax
    Act) is more than 50% of the aggregate fair market value of all
    of the Trust&#160;Units issued by the Trust and if more than 10%
    (based on fair market value) of the Trust&#146;s property
    consists of certain types of &#147;taxable Canadian
    property&#148;, &#147;Canadian resource property&#148; or
    &#147;timber resource property&#148;, all as defined in the Tax
    Act. Since no more than 10% of the Trust&#146;s property should
    be &#147;taxable Canadian property&#148;, &#147;Canadian
    resource property&#148; or &#147;timber resource property&#148;
    these Proposed Amendments should not adversely affect the
    Trust&#146;s status as a &#147;mutual fund trust&#148;. However,
    no assurances can be provided that no more than 10% of the
    Trust&#146;s property will be &#147;taxable Canadian
    property&#148;, &#147;Canadian resource property&#148; or
    &#147;timber resource property&#148; and, therefore, that, if
    enacted, these Proposed Amendments would not adversely affect
    the Trust&#146;s status as a &#147;mutual fund trust&#148; under
    the Tax Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Provided the Trust satisfies the foregoing requirements it
    should be a &#147;mutual fund trust&#148; for purposes of the
    Tax Act. If the Trust ceased to qualify as a &#147;mutual fund
    trust&#148; under the Tax Act, certain Canadian federal income
    tax considerations would be materially and adversely different
    in certain respects.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Moreover, if the Trust were to cease to qualify as a
    &#147;mutual fund trust&#148;, Trust&#160;Units held by
    Unitholders who are not resident in Canada for the purposes of
    the Tax Act (&#147;<B>Non-Canadian Holders</B>&#148;) would
    become &#147;taxable Canadian property&#148; under the Tax Act.
    These Non-Canadian Holders would be subject to Canadian income
    tax on any gains realized on a disposition of the
    Trust&#160;Units held by them unless they were exempt under an
    income tax convention, and Non-Canadian Holders would be subject
    to certain notification and withholding requirements on a
    disposition of their Trust&#160;Units. In addition, the Trust
    would be taxed on certain types of income distributed to
    Unitholders (apart from under the specified investment
    flow-through legislation discussed below). Payment of this tax
    may have adverse consequences for some Unitholders, particularly
    Non-Canadian Holders and residents of Canada that are otherwise
    exempt from Canadian income tax.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The SIFT Rules apply to trusts that are resident in Canada for
    purposes of the Tax Act, that hold one or more
    &#147;non-portfolio properties&#148;, and the trust units of
    which are listed on a stock exchange or other public market (a
    &#147;<B>SIFT Trust</B>&#148;). A SIFT Trust effectively is
    subject to tax on its income from non-portfolio properties and
    taxable capital gains from dispositions of non-portfolio
    properties paid, or made payable, to unitholders at a rate
    comparable to the combined federal and provincial corporate
    income tax rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general terms, a trust that existed on October&#160;31, 2006
    and to which the SIFT Rules otherwise would apply (i.e., the
    Trust), should not become a SIFT Trust until the earlier of
    January&#160;1, 2011 or the first day after December&#160;15,
    2006 that the trust exceeds &#147;normal growth&#148; determined
    by reference to guidelines first issued on December&#160;15,
    2006 by the Minister of Finance (Canada) and amended on
    December&#160;4, 2008 (the &#147;<B>Guidelines</B>&#148;). The
    Guidelines provide that a trust should not be considered to
    exceed &#147;normal growth&#148; if the trust does not issue new
    equity (including convertible debentures or other equity
    substitutes) that exceeds the greater of $50&#160;million per
    year or certain specified &#147;safe harbour&#148; amounts based
    on the market capitalization of the trust on October&#160;31,
    2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Provided that the Trust does not issue new equity (including
    debt that is convertible into equity) in an amount greater than
    the &#147;safe-harbour&#148; determined by reference to the
    market capitalization of the Trust on October&#160;31, 2006, the
    Trust should not be considered to exceed &#147;normal
    growth&#148; as set forth in the Guidelines. No assurances can
    be provided that the Trust will not otherwise become a SIFT
    Trust prior to January&#160;1, 2011.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As part of its ongoing strategic planning, the Trust will
    continue to examine and evaluate its various strategic
    alternatives, including its ability to reorganize its legal and
    tax structure to mitigate the expected impact of the SIFT Rules.
    While no assurances can be provided regarding the strategic
    alternatives, if any, that may be available, the strategic
    alternatives considered will recognize that on December&#160;20,
    2007 the Minister of Finance announced that the federal
    government remains committed to ensuring that a SIFT Trust may
    convert to a taxable Canadian corporation without undue tax
    consequences, and Proposed Amendments were released on
    November&#160;28, 2008 to specifically facilitate such a
    conversion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There can be no assurance that the Trust will not cease to
    qualify as a &#147;mutual fund trust&#148; under the Tax Act or
    that it will not become a SIFT Trust prior to January&#160;1,
    2011.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 26 -
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">A
    change in the structure of the Trust may have an adverse effect
    on Unitholders</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a result of the adoption of the SIFT Rules, management of the
    Trust may, from time to time, evaluate the organizational and
    capital structure of the Trust and its subsidiaries to ensure
    that it remains appropriate and efficient for the business of
    the Trust and the benefit of Unitholders. Such evaluation and
    review may result in the recommendation that Unitholders approve
    a conversion of the Trust to a corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event that such a recommendation were to be made,
    approved and implemented, the Trust&#146;s income trust
    structure would be reorganized into a corporation and the
    Unitholders would become shareholders of that corporation which
    would own all of the Trust&#160;Units of the Trust. Each
    Unitholder would exchange its Trust&#160;Units for shares of the
    successor corporation. Such a reorganization would be subject to
    approval of the Unitholders and to such other approvals as may
    be required, including regulatory, stock exchange and court
    approvals.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with any such reorganization, the current
    distribution policies of the Trust would be replaced by the
    dividend policy of the successor corporation which may result in
    a decrease in the cash amount distributed compared with the
    current distributions of the Trust. Furthermore, the
    reorganization would result in the conversion of the Trust into
    an entity that would be subject to Canadian federal and
    provincial income tax.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any such reorganization may occur prior to January&#160;1, 2011
    and may have an adverse impact on the market price of the
    Trust&#160;Units.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision
    has retained liabilities as a consequence of prior
    reorganizations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision, the successor entity to amalgamations involving its
    predecessor companies, has retained all liabilities of its
    predecessor companies, including liabilities relating to
    corporate and income tax matters.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Trust&#160;Units
    have certain risks not associated with traditional investments
    in the oil and natural gas services business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust&#160;Units do not represent a traditional investment
    in the oil and natural gas services business and should not be
    viewed as shares of a corporation. The Trust&#160;Units
    represent a fractional interest in the Trust. Unitholders do not
    have the statutory rights normally associated with ownership of
    shares of a corporation including, for example, the right to
    bring &#147;oppression&#148; or &#147;derivative&#148; actions.
    The Trust&#146;s sole assets are the shares of the General
    Partner (as defined herein), the Class&#160;A Limited
    Partnership Units of PDLP and other investments in securities.
    The price per Trust&#160;Unit is a function of anticipated net
    earnings, the amount of cash distributions paid by the Trust to
    Unitholders, the underlying assets of the Trust and
    management&#146;s ability to effect long-term growth in the
    value of Precision and other entities now or hereafter owned
    directly or indirectly by the Trust. The market price of the
    Trust&#160;Units are sensitive to a variety of market conditions
    including, but not limited to, interest rates, the growth of the
    general economy, the price of crude oil and natural gas and
    changes in law. Changes in market conditions may adversely
    affect the trading price of the Trust&#160;Units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust&#160;Units are not &#147;deposits&#148; within the
    meaning of the <I>Canada Deposit Insurance Corporation Act
    </I>(Canada) and are not insured under the provisions of that
    act or any other legislation. Furthermore, the Trust is not a
    trust company and, accordingly, is not registered under any
    trust and loan company legislation as it does not carry on or
    intend to carry on the business of a trust company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust is not a legally recognized entity within the relevant
    definitions of the <I>Bankruptcy and Insolvency Act
    </I>(Canada), the <I>Companies&#146; Creditors Arrangement Act
    </I>(Canada) and, in some cases, the <I>Winding Up and
    Restructuring Act </I>(Canada). As a result, in the event a
    restructuring of the Trust were necessary, the Trust would not
    be able to access the remedies available thereunder. In the
    event of a restructuring, the position of Unitholders may be
    different than that of the shareholders of a corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>If the Trust does not constitute a &#147;</I></B>qualified
    foreign corporation&#148; for United States federal income tax
    purposes, individual U.S.&#160;Holders (as defined below) may be
    taxed at a higher rate on distributions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Management expects that distributions it makes to non-corporate
    U.S.&#160;Holders (including individual U.S.&#160;Holders) that
    are treated as dividends for United States federal income tax
    purposes will be treated as qualified dividend income eligible
    for the reduced maximum rate to individuals of 15% (5% for
    individuals in lower tax brackets). However, if the Trust does
    not constitute a &#147;qualified foreign corporation&#148; for
    United States federal income tax purposes, and as a result such
    dividends to non-corporate U.S.&#160;Holders do not qualify for
    this reduced maximum rate, such holders will be subject to tax
    on such dividends at ordinary income rates (currently at a
    maximum rate of 35%). In addition, under current law, the
    preferential tax rate for qualified dividend income will not be
    available for taxable years beginning after December&#160;31,
    2010.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 27 -
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the purposes of this prospectus, the term
    &#147;U.S.&#160;Holder&#148; means a beneficial owner of
    Trust&#160;Units that for United States federal income tax
    purposes is:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (a)&#160;&#160;&#160;</TD>
    <TD align="left">
    an individual citizen or resident of the United States;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (b)&#160;&#160;&#160;</TD>
    <TD align="left">
    a corporation or other entity treated as a corporation for
    federal income tax purposes, created or organized in or under
    the laws of the United States or any State or the District of
    Columbia;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (c)&#160;&#160;&#160;</TD>
    <TD align="left">
    an estate that is subject to United States federal income tax on
    its income regardless of is source;&#160;or
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (d)&#160;&#160;&#160;</TD>
    <TD align="left">
    a trust, the substantial decisions of which are controlled by
    one or more United States persons and which is subject to the
    primary supervision of a United States court, or a trust that
    validly has elected under applicable Treasury regulations to be
    treated as a United States person for United States federal
    income tax purposes.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    composition for Canadian federal income tax purposes of
    distributions on Trust&#160;Units may change over time, and such
    changes could negatively affect the return on the
    Trust&#160;Units.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unlike interest payments on an interest-bearing security,
    distributions by income trusts on trust units (including the
    Trust&#160;Units) are, for Canadian federal income tax purposes,
    composed of different types of payments (portions of which may
    be fully or partially taxable or may constitute non-taxable
    &#147;returns of capital&#148;). The composition for Canadian
    federal income tax purposes of distributions may change over
    time, thus affecting the after-tax return to Unitholders who are
    resident in Canada for purposes of the Tax Act
    (&#147;<B>Canadian Holders</B>&#148;). Therefore, the rate of
    return for Canadian Holders over a defined period may not be
    comparable to the rate of return on a fixed-income security that
    provides a return on capital over the same period. This is
    because a Canadian Holder may receive distributions that
    constitute a return of capital (rather than a return on capital)
    to some extent during the relevant period. Returns on capital
    are generally taxed as ordinary income, dividends or taxable
    capital gains in the hands of a holder of Trust&#160;Units,
    while returns of capital are generally non-taxable to a Canadian
    Holder (but reduce the adjusted cost base in a Trust&#160;Unit
    for Canadian federal income tax purposes).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If the
    Trust ceases to qualify as a
    &#147;</FONT></I></B><FONT style="font-family: 'Times New Roman', Times">mutual
    fund trust&#148; under the Tax Act, the Trust&#160;Units will
    cease to be qualified investments for a variety of plans, which
    could have negative tax consequences.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Trust ceases to qualify as a &#147;mutual fund
    trust&#148;, the Trust&#160;Units will cease to be qualified
    investments for trusts governed by &#147;registered retirement
    savings plans&#148;, &#147;registered retirement income
    funds&#148;, &#147;deferred profit sharing plans&#148; and
    &#147;registered education savings plans&#148;, each as defined
    in the Tax Act (collectively, &#147;<B>Exempt Plans</B>&#148;)
    and for trusts governed by &#147;tax-free savings
    accounts&#148;, each as defined in the Tax Act. Where, at the
    end of any month, an Exempt Plan holds Trust&#160;Units that are
    not qualified investments, the Exempt Plan must, in respect of
    that month, pay a tax under Part&#160;XI.1 of the Tax Act equal
    to 1% of the fair market value of the Trust&#160;Units at the
    times such Trust&#160;Units were acquired by the Exempt Plan. In
    addition, where a trust governed by a &#147;registered
    retirement savings plan&#148; or &#147;registered retirement
    income fund&#148; holds Trust&#160;Units that are not qualified
    investments, such trust will become taxable on its income
    attributable to the Trust&#160;Units while they are not
    qualified investments, including the full amount of any capital
    gain realized on a disposition of Trust&#160;Units while they
    are not qualified investments. Where a trust governed by a
    &#147;registered education savings plan&#148; holds
    Trust&#160;Units that are not qualified investments, the
    plan&#146;s registration may be revoked. Where a trust governed
    by a &#147;tax-free savings account&#148; holds Trust&#160;Units
    that cease to be qualified investments, the holder of that
    &#147;tax-free savings account&#148; may be required to pay a
    tax under Part&#160;XI.01 of the Tax Act equal to 50% of the
    fair market value of such Trust&#160;Units at the time the
    Trust&#160;Units ceased to be a qualified investment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Trust expects to maintain its status as a
    &#147;</FONT></I></B><FONT style="font-family: 'Times New Roman', Times">foreign
    private issuer&#148; in the United States and thus will be
    exempt from a number of rules under the Exchange Act and will be
    permitted to file less information with the SEC than a company
    incorporated in the United States.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As a &#147;foreign private issuer&#148; the Trust is exempt from
    certain rules under the United States Securities Exchange Act of
    1934, as amended (the &#147;<B>Exchange Act</B>&#148;) that
    impose disclosure requirements, as well as procedural
    requirements, for proxy solicitations under Section&#160;14 of
    the Exchange Act. The officers, trustees of the Trust and
    principal Unitholders of the Trust are exempt from the reporting
    and &#147;short-swing&#148; profit recovery provisions of
    Section&#160;16 of the Exchange Act. Moreover, the Trust is not
    required to file periodic reports and financial statements with
    the SEC as frequently or as promptly as United States companies
    whose securities are registered under the Exchange Act, nor is
    it generally required to comply with Regulation&#160;FD, which
    restricts the selective disclosure of material nonpublic
    information. Accordingly, there may be less information
    concerning the Trust publicly available than there is for United
    States public companies and such information may not be provided
    as promptly. In addition, the Trust is permitted, under a
    multi-jurisdictional
</DIV>

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    <BR>
    - 28 -
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    disclosure system adopted by the United States and Canada, to
    prepare its disclosure documents in accordance with Canadian
    disclosure requirements, including preparing its financial
    statements in accordance with Canadian GAAP, which differs in
    some respects from U.S.&#160;GAAP.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If an
    investor acquires 10% or more of the Trust&#160;Units it may be
    subject to taxation under the CFC rules.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under certain circumstances, a United States person who directly
    or indirectly owns 10% or more of the voting power of a foreign
    corporation that is a controlled foreign corporation
    (&#147;<B>CFC</B>&#148;) (generally, a foreign corporation in
    which 10% United States shareholders own more than 50% of the
    voting power of the foreign corporation) for an uninterrupted
    period of 30&#160;days or more during a taxable year and who
    holds any shares of the foreign corporation on the last day of
    the corporation&#146;s tax year must include in gross income for
    United States federal income tax purposes its pro rata share of
    certain income of the CFC even if such share is not distributed
    to such person. The Trust is not presently a CFC, but this could
    change in the future.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Trust&#146;s debt service obligations may limit the amount of
    cash available for distributions.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust and its affiliates may, from time to time, finance a
    significant portion of their growth (either from acquisitions or
    capital expenditure additions) and operations through debt.
    Amounts paid in respect of interest and principal on debt
    incurred by Precision and its affiliates may impair
    Precision&#146;s ability to satisfy its obligations under its
    debt instruments. Variations in interest rates and scheduled
    principal repayments could result in significant changes in the
    amount required to be applied to service debt before payment of
    inter-entity debt. This may result in lower levels of cash
    available for distribution by the Trust. Ultimately,
    subordination agreements or other debt obligations (including
    the terms of the Credit Facilities, see &#147;Material
    Debt&#148;) could preclude distributions altogether. See
    &#147;Risk Factors&#160;&#151; Risks Relating to the
    Acquisition&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The terms of the documents governing the Credit Facilities
    contain provisions that in effect ensure that the lenders have
    priority as to payment over the Unitholders in respect to the
    assets and income of the Trust and its subsidiaries. Amounts due
    and owing to the lenders under the Credit Facilities must be
    paid before any distributions can be made to Unitholders. This
    relative priority of payments could result in a temporary or
    permanent interruption of distributions to Unitholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Sales
    of additional Trust&#160;Units could negatively affect the value
    of the Trust Units.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust may issue additional Trust&#160;Units in the future to
    directly or indirectly fund capital expenditure requirements of
    Precision and other entities now or hereafter owned directly or
    indirectly by the Trust including to finance acquisitions by
    those entities. Such additional Trust&#160;Units may be issued
    without the approval of Unitholders. Unitholders have no
    pre-emptive rights in connection with such additional issues.
    The Board of Trustees of the Trust has discretion in connection
    with the price and the other terms of the issue of such
    additional Trust&#160;Units.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Issuance
    of additional Trust&#160;Units in lieu of cash distributions
    could negatively affect the value of the Trust&#160;Units and
    result in the payment of taxes.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Declaration of Trust provides that an amount equal to the
    taxable income of the Trust will be payable each year to
    Unitholders in order to reduce the Trust&#146;s taxable income
    to zero. Where in a particular year, the Trust does not have
    sufficient cash to distribute such an amount, the Declaration of
    Trust provides that additional Trust&#160;Units may be
    distributed in lieu of cash payments. Such &#147;in kind&#148;
    distributions have been made by the Trust in each of 2007, 2008
    and 2009. In such a case, Unitholders will generally be required
    to include an amount equal to the fair market value of those
    Trust&#160;Units in their taxable income, notwithstanding that
    they do not directly receive a cash payment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">A
    successful challenge by the tax authorities of the amount of
    interest expense deducted by Precision on its payments of
    promissory note interest could negatively affect the value of
    the Trust&#160;Units.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Income fund structures often involve significant amounts of
    inter-entity debt, which may generate substantial interest
    expense and which serves to reduce earnings and therefore income
    tax payable. This is the case in respect of Precision and its
    interest expense on the Promissory Note. There can be no
    assurance that the taxation authorities will not seek to
    challenge the amount of interest expense deducted. If such a
    challenge were to succeed against Precision or the Trust, it
    could have a material adverse affect on the amount of
    distributions paid by the Trust to Unitholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Trust could face negative tax consequences for previous
    transactions.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The business and operations of Precision prior to completion of
    the plan of arrangement pursuant to which former shareholders of
    Precision were issued Trust&#160;Units were complex and
    Precision has executed a number of significant
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 29 -
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    financings, business combinations, acquisitions and dispositions
    over the course of its history. The computation of income taxes
    payable as a result of these transactions involves many complex
    factors as well as Precision&#146;s interpretation of relevant
    tax legislation and regulations. Management believes that the
    provision for income tax is adequate and in accordance with
    generally accepted accounting principles and applicable
    legislation and regulations. However, there are a number of tax
    filing positions that can still be the subject of review by
    taxation authorities who may successfully challenge
    Precision&#146;s interpretation of the applicable tax
    legislation and regulations, with the result that additional
    taxes could be payable by Precision and the amount payable
    without penalties could be up to $390&#160;million as of
    September&#160;30, 2008. Any increase in tax liability would
    reduce the net assets of and funds available to the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust received Notices of Reassessment from a provincial
    taxing authority relating to a prior period tax filing position
    in the total amount of $58&#160;million as of September&#160;30,
    2008. This $58&#160;million has been paid, recorded as a
    long-term receivable and included in the $390&#160;million tax
    contingency disclosed in the preceding paragraph. The income
    tax-related portion of the applicable reassessments and the
    interest portion is $38&#160;million and $20&#160;million,
    respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">A
    successful challenge by the tax authorities of the amount of
    expenses deducted by the Trust or its subsidiaries could
    negatively affect the value of the
    Trust&#160;Units.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There can be no assurance that the applicable taxation
    authorities will agree with the classification of expenses
    claimed by the Trust or its subsidiaries. If the taxation
    authorities successfully challenge the deductibility of any such
    expenses, the return to Unitholders may be adversely affected.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    price of Trust&#160;Units may experience
    volatility.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The price of Trust&#160;Units may be volatile. Some of the
    factors that could affect the price of the Trust&#160;Units are
    quarterly increases or decreases in revenue or earnings, changes
    in cash distributions made by the Trust, changes in revenue or
    earnings estimates by the investment community, the ability of
    the Trust to implement its integration strategy and to realize
    the expected benefits from the Acquisition and speculation in
    the press or investment community about the Trust&#146;s
    financial condition or results of operations. General market
    conditions and Canadian, United States or international economic
    factors and political events unrelated to the performance of the
    Trust may also affect the price of Trust&#160;Units. For these
    reasons, investors should not rely on past trends in the price
    of Trust&#160;Units to predict the future price of
    Trust&#160;Units or the Trust&#146;s financial results.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision
    may be unable to obtain access to additional
    financing.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision may find it necessary in the future to obtain
    additional debt or equity financing through the Trust to support
    ongoing operations, to undertake capital expenditures, to repay
    existing indebtedness (including the Credit Facilities (see
    &#147;Consolidated Capitalization of the Trust&#148; and
    &#147;Material Debt&#148;)) or to undertake acquisitions or
    other business combination transactions. There can be no
    assurance that additional financing will be available to
    Precision when needed or on terms acceptable or favourable to
    Precision. Precision&#146;s inability to raise financing to
    support ongoing operations or to fund capital expenditures,
    acquisitions, debt repayments or other business combination
    transactions could limit Precision&#146;s growth and may have a
    material adverse effect upon Precision.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Trust may become a passive foreign investment company
    (&#147;</FONT></I></B><FONT style="font-family: 'Times New Roman', Times">PFIC&#148;),
    which could result in adverse United States tax consequences to
    United States investors.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Management does not believe that the Trust is, or will be
    treated as, a PFIC for United States tax purposes. Since PFIC
    status is determined on an annual basis and will depend on the
    composition of the Trust&#146;s income and assets from time to
    time, it is possible that the Trust could be considered a PFIC
    in 2008 or a future taxable year. Such characterization could
    result in adverse United States tax consequences to you if you
    are a United States investor. In particular, a United States
    investor would be subject to United States federal income tax at
    ordinary income rates, plus a possible interest charge, in
    respect of any gain derived from a disposition of the
    Trust&#160;Units, as well as certain distributions by the Trust.
    In addition, a
    <FONT style="white-space: nowrap">step-up</FONT> in
    the tax basis of the Trust&#160;Units would not be available
    upon the death of an individual holder.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Canadian
    withholding tax may exceed allowable United States foreign tax
    credits and reduce effective yield to United States
    investors.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Withholding of Canadian tax is imposed at a 25% rate (reduced to
    15% for recipients that are residents of the United States
    eligible for benefits under the Canada-United States Tax
    Convention) both on cash and non-cash distributions by the Trust
    to persons that are not Canadian residents. However, as certain
    non-cash distributions by the Trust generally will not be
    included in income for United States federal income tax
    purposes, such Canadian withholding tax may exceed a
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 30 -
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    U.S.&#160;Holder&#146;s allowable foreign tax credit for the
    taxable year of the distribution, potentially resulting in a
    reduced after-tax cash yield to United States investors for the
    year of such distribution.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    distribution of assets on redemption or termination of the Trust
    may have adverse consequences.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is anticipated that a redemption right will not be the
    primary mechanism for Unitholders to liquidate their investment.
    Securities which may be received as a result of a redemption of
    Trust&#160;Units will not be listed on any stock exchange and no
    market for such securities is expected to develop. The
    securities so distributed may not be qualified investments for
    Exempt Plans, depending upon the circumstances existing at that
    time. On termination of the Trust, the Board of Trustees of the
    Trust may distribute the securities directly to Unitholders,
    subject to obtaining all of the necessary regulatory approvals.
    In addition, there may be resale restrictions imposed by
    applicable law upon the recipients of securities pursuant to a
    redemption right.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Unitholders
    face a possibility of personal liability in connection with the
    obligations and affairs of the Trust.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Declaration of Trust provides that no Unitholder will be
    subject to any liability in connection with the Trust or its
    obligations and affairs and, in the event that a court
    determines that Unitholders are subject to any such liabilities,
    the liabilities will be enforceable only against, and will be
    satisfied only out of, the Trust&#146;s assets. Pursuant to the
    Declaration of Trust, the Trust will indemnify and hold harmless
    each Unitholder from any costs, damages, liabilities, expenses,
    charges and losses suffered by a holder resulting from or
    arising out of such holder not having such limited liability.
    The Declaration of Trust provides that all written instruments
    signed by or on behalf of the Trust must contain a provision to
    the effect that obligations under those instruments will not be
    binding upon Unitholders personally. Personal liability may
    however arise in respect of claims against the Trust that do not
    arise under contracts, including claims in tort, claims for
    taxes and possibly certain other statutory liabilities. The
    possibility of any personal liability of this nature arising is
    considered unlikely. The <I>Income Trusts Liability Act
    </I>(Alberta) came into force on July&#160;1, 2004. The
    legislation provides that a Unitholder will not be, as a
    beneficiary, liable for any act, default, obligation or
    liability of the trustee(s) of the Trust that arises after the
    legislation came into force. However, this legislation has not
    yet been ruled upon by the courts. The operations of the Trust
    will be conducted, upon the advice of counsel, in such a way and
    in such jurisdictions as to avoid as far as possible any
    material risk of liability to the Unitholders for claims against
    the Trust, including by obtaining appropriate insurance, where
    available and to the extent commercially feasible.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Asset
    valuation variability could negatively affect the value of the
    Trust Units.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The net asset value of the assets of the Trust from time to time
    will vary depending upon factors which are beyond the control of
    the Trust. The trading price of the Trust&#160;Units also
    fluctuates due to factors beyond the control of the Trust and
    such trading prices may be greater than the net asset value of
    the Trust&#146;s assets.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">There
    are risks associated with the indemnification of the limited
    partners of PDLP.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While the general partner of PDLP, 1194312 Alberta Ltd., a
    wholly-owned subsidiary of the Trust (the &#147;<B>General
    Partner</B>&#148;), has agreed pursuant to the terms of the
    Limited Partnership Agreement of PDLP to indemnify PDLP&#146;s
    limited partners, including holders of the class&#160;A limited
    partnership units of PDLP and the Exchangeable Units, the
    General Partner may not have sufficient assets to honour the
    indemnity.
</DIV>
<A name='143'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Relating to the Securities</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">There
    is no market through which the Securities (other than the
    Trust&#160;Units) may be sold.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There is currently no market through which any of the
    Securities, other than the Trust&#160;Units, may be sold and the
    purchasers of such Securities may not be able to resell such
    securities purchased under this prospectus and any Prospectus
    Supplement. There can be no assurance that a secondary market
    will develop for any of the Debt Securities, Warrants or
    Subscription Receipts that may be issued under this prospectus
    or that any secondary market which does develop will continue.
    This may affect the pricing of such Securities in the secondary
    market, if any, the transparency and availability of trading
    prices, the liquidity of the securities and the extent of
    regulation of such Securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The public offering prices of the Securities may be determined
    by negotiation between the Trust and underwriters based on
    several factors and may bear no relationship to the prices at
    which Securities will trade in the public market subsequent to
    such offering. See &#147;Plan of Distribution&#148;.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 31 -
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Credit
    ratings may not reflect all risks of an investment in Debt
    Securities and may change.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Credit ratings may not reflect all risks associated with an
    investment in Debt Securities. Any credit ratings applied to
    Debt Securities are an assessment of the Trust&#146;s ability to
    pay its obligations. Consequently, real or anticipated changes
    in the credit ratings will generally affect the market value of
    Debt Securities. The credit ratings, however, may not reflect
    the potential impact of risks related to structure, market or
    other factors discussed herein on the value of Debt Securities.
    There is no assurance that any credit rating assigned to Debt
    Securities will remain in effect for any given period of time or
    that any rating will not be lowered or withdrawn entirely by the
    relevant rating agency.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Increases
    in interest rates may cause the market price or value of Debt
    Securities to decline.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The market price or value of Debt Securities may decline as
    prevailing interest rates for comparable debt instruments rise.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Debt
    Securities will be effectively subordinated to creditors of the
    Trust&#146;s subsidiaries, partnerships and other
    entities.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust conducts its business through a number of corporate
    and partnership subsidiaries. The Debt Securities will be
    effectively subordinated to claims of creditors of the
    Trust&#146;s subsidiaries, in that the Trust&#146;s right to
    participate as a securityholder or partner in the distribution
    of the assets of any subsidiary upon any such distribution would
    be subject to the prior claims of the creditors of such
    subsidiary.
</DIV>
<A name='144'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Relating To The Business Currently Conducted By
    Precision</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    business of Precision is affected by governmental regulations
    and policies.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain activities of Precision are affected by factors that are
    beyond its control or influence. The drilling rig, camp and
    catering, service rig, snubbing, rentals, wastewater treatment
    and related service businesses and activities of Precision in
    Canada and the drilling rig, camp and catering and rentals
    business and activities of Precision in the United States are
    directly affected by fluctuations in exploration, development
    and production activity carried on by its customers which, in
    turn, is dictated by numerous factors including world energy
    prices and government policies. The addition, elimination or
    curtailment of government regulations and incentives could have
    a significant impact on the oil and natural gas business in
    Canada and the United States. These factors could lead to a
    decline in the demand for Precision&#146;s services, resulting
    in a material adverse effect on revenues, cash flows, earnings
    and cash distributions to Unitholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    operations of Precision are dependent on the price of oil and
    natural gas.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision sells its services to oil and natural gas exploration
    and production companies. Macro economic and geopolitical
    factors associated with oil and natural gas supply and demand
    are prime drivers for pricing and profitability within the
    oilfield services industry. Generally, when commodity prices are
    relatively high, demand for Precision&#146;s services are high,
    while the opposite is true when commodity prices are low. The
    markets for oil and natural gas are separate and distinct. Oil
    is a global commodity with a vast distribution network. As
    natural gas is most economically transported in its gaseous
    state via pipeline, its market is dependent on pipeline
    infrastructure and is subject to regional supply and demand
    factors. However, recent developments in the transportation of
    liquefied natural gas (&#147;<B>LNG</B>&#148;) in ocean going
    tanker ships have introduced an element of globalization to the
    natural gas market. Crude oil and natural gas prices are quite
    volatile, which accounts for much of the cyclical nature of the
    oilfield services business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Worldwide military, political and economic events, including
    initiatives by the Organization of Petroleum Exporting Countries
    and other major petroleum exporting countries, for instance, may
    affect both the demand for, and the supply of, oil and natural
    gas. Weather conditions, governmental regulation (both in Canada
    and elsewhere), levels of consumer demand, the availability of
    pipeline capacity, United States and Canadian storage levels and
    other factors beyond Precision&#146;s control may also affect
    the supply of and demand for oil and natural gas and thus lead
    to future price volatility. A prolonged reduction in oil and
    natural gas prices would likely depress the level of exploration
    and production activity. This would likely result in a
    corresponding decline in the demand for Precision&#146;s
    services and could have a material adverse effect on its
    revenues, cash flows and profitability. Lower oil and natural
    gas prices could also cause Precision&#146;s customers to seek
    to terminate, renegotiate or fail to honour Precision&#146;s
    drilling contracts which could affect the fair market value of
    its rig fleet which in turn could trigger a write down for
    accounting purposes, Precision&#146;s ability to retain skilled
    rig personnel and Precision&#146;s ability to obtain access to
    capital to finance and grow its businesses. There can be no
    assurance that the future level of demand for Precision&#146;s
    services or future conditions in the oil and natural gas and
    oilfield services industries will not decline.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 32 -
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s accounts receivable are with customers involved
    in the oil and natural gas industry, whose revenues may be
    impacted by fluctuations in commodity prices. The collection of
    receivables may be adversely affected by any prolonged weakness
    in oil and natural gas prices.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    intense price competition and cyclical nature of the contract
    drilling industry could have an adverse effect on revenue and
    profitability.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The contract drilling business is highly competitive with
    numerous industry participants, and the drilling contracts
    Precision competes for are usually awarded on the basis of
    competitive bids. Management believes pricing and rig
    availability are the primary factors considered by
    Precision&#146;s potential customers in determining which
    drilling contractor to select. Management believes other factors
    are also important. Among those factors are:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    the drilling capabilities and condition of drilling rigs;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    the quality of service and experience of rig crews;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    the safety record of the company and the particular drilling rig;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    the offering of ancillary services;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    the ability to provide drilling equipment adaptable to, and
    personnel familiar with, new technologies and drilling
    techniques;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    the mobility and efficiency of rigs.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The contract drilling industry historically has been cyclical
    and has experienced periods of low demand, excess rig supply,
    and low dayrates, followed by periods of high demand, short rig
    supply and increasing dayrates. Periods of excess drilling rig
    supply intensify the competition in the industry and often
    result in rigs being idle. There are numerous contract drilling
    competitors in each of the markets in which Precision competes.
    In all of those markets, an oversupply of drilling rigs can
    cause greater price competition. Contract drilling companies
    compete primarily on a regional basis, and the intensity of
    competition may vary significantly from region to region at any
    particular time. If demand for drilling services is better in a
    region where Precision operates, its competitors might respond
    by moving in suitable drilling rigs from other regions, by
    reactivating previously stacked rigs or purchasing new drilling
    rigs. An influx of drilling rigs into a market area from any
    source could rapidly intensify competition and make any
    improvement in demand for drilling rigs short-lived.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The number of drilling rigs competing for work in the market
    areas Precision serves has increased due to the entry into those
    markets of newly-built or newly-refurbished rigs. Management
    expects that more of these newer rigs will enter
    Precision&#146;s market areas over the next year. The addition
    of these drilling rigs in 2008 has and could continue to
    intensify price competition and possibly reduce customer demand
    for term drilling contracts, which would have an adverse effect
    on the revenues, cash flows and earnings of the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Capital overbuild in the drilling industry could lead to a
    decline in demand for Precision&#146;s services.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because of the long life nature of drilling equipment and the
    lag between the moment a decision to build a rig is made and the
    moment the rig is placed into service, the number of rigs in the
    industry does not always correlate to the level of demand for
    those rigs. Periods of high demand often spur increased capital
    expenditures on rigs, and those capital expenditures may exceed
    actual demand. Management believes that there is currently an
    excess of rigs in the North American oil and gas industry in
    relation to current levels of demand. This capital overbuild
    could cause Precision&#146;s competitors to lower their rates
    and could lead to a decrease in rates in the oilfield services
    industry generally, which would have an adverse effect on the
    revenues, cash flows and earnings of the Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Business in Precision&#146;s industry is seasonal and
    highly variable.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In Canada, the level of activity in the oilfield service
    industry is influenced by seasonal weather patterns. During the
    spring months, wet weather and the spring thaw make the ground
    unstable. Consequently, municipalities and provincial
    transportation departments enforce road bans that restrict the
    movement of rigs and other heavy equipment, thereby reducing
    activity levels and placing an increased level of importance on
    the location of Precision&#146;s equipment prior to imposition
    of the road bans. The timing and length of road bans is
    dependant upon the weather conditions leading to the spring thaw
    and the weather conditions during the thawing period.
    Additionally, certain oil and natural gas producing areas are
    located in sections of the Western Canada Sedimentary Basin that
    are inaccessible, other than during the winter months, because
    the ground surrounding or containing the drilling sites in these
    areas consists of terrain known as muskeg. Until the muskeg
    freezes, the rigs and other necessary equipment cannot cross the
    terrain to reach the drilling site. Moreover, once the rigs and
    other equipment have been moved to a drilling site, they may
    become stranded or otherwise
</DIV>

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    <BR>
    - 33 -
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    unable to relocate to another site should the muskeg thaw
    unexpectedly. Precision&#146;s business results depend, at least
    in part, upon the severity and duration of the Canadian winter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Deteriorating conditions in the credit markets may
    adversely affect business.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The ability to make scheduled payments on or to refinance debt
    obligations depends on the financial condition and operating
    performance of the Trust, which is subject to prevailing
    economic and competitive conditions and to certain financial,
    business and other factors beyond its control. The credit
    markets have recently experienced and continue to experience
    adverse conditions. Continuing volatility in the credit markets
    may increase costs associated with debt instruments due to
    increased spreads over relevant interest rate benchmarks, or
    affect the Trust&#146;s, or third parties it seeks to do
    business with, ability to access those markets. The Trust may be
    unable to maintain a level of cash flow from operating
    activities sufficient to permit it to pay the principal,
    premium, if any, and interest on its indebtedness.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, there has been substantial uncertainty in the
    capital markets and access to financing is uncertain. These
    conditions could have an adverse effect on the industry in which
    the Trust operates and its business, including future operating
    results. Precision&#146;s customers may curtail their drilling
    programs, which could result in a decrease in demand for
    drilling rigs and a reduction in dayrates, reduction in the
    number and profitability of turnkey jobs
    <FONT style="white-space: nowrap">and/or</FONT>
    utilization. In addition, certain customers could experience an
    inability to pay suppliers, including the Trust, in the event
    they are unable to access the capital markets to fund their
    business operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Poor
    safety performance could lead to a decline in the demand for
    services.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Standards for the prevention of incidents in the oil and gas
    industry are governed by service company safety policies and
    procedures, accepted industry safety practices, customer
    specific safety requirements, and health and safety legislation.
    Management believes that Precision&#146;s drilling and well
    servicing businesses are highly competitive with numerous
    competitors. A key factor considered by Precision&#146;s
    customers in selecting oilfield service providers is safety.
    Deterioration in Precision&#146;s safety performance could
    result in a decline in the demand for Precision&#146;s services
    and could have a material adverse effect on its revenues, cash
    flows, profitability and funds available for distributions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">New
    technology could place Precision at a disadvantage versus
    competitors.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Complex drilling programs for the exploration and development of
    remaining conventional and unconventional oil and natural gas
    reserves in North America demand high performance drilling rigs.
    The ability of drilling rig service providers to meet this
    demand will depend on continuous improvement of existing rig
    technology such as drive systems, control systems, automation,
    mud systems and top drives to improve drilling efficiency.
    Precision&#146;s ability to deliver equipment and services that
    are more efficient is critical to continued success. There is no
    assurance that competitors will not achieve technological
    improvements that are more advantageous, timely or cost
    effective than improvements developed by Precision.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision
    is subject to various risks from its foreign
    operations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision conducts a material portion of its business in the
    United States and is subject to risks inherent in such
    operations, such as: terrorist threats; fluctuations in currency
    and exchange controls; increases in duties and taxes; and
    changes in laws and policies governing operations. In addition,
    in the United States jurisdictions in which Precision operates,
    it is subject to various laws and regulations that govern the
    operation and taxation of its businesses in such jurisdictions
    and the imposition, application and interpretation of which laws
    and regulations can prove to be uncertain.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">There
    are risks associated with increased capital
    expenditures.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The timing and amount of capital expenditures by Precision will
    directly affect the amount of cash available for distribution to
    Unitholders. The cost of equipment has escalated over the past
    several years as a result of, among other things, high input
    costs. There can be no assurance that Precision will be able to
    recover higher capital costs through rate increases to its
    customers, and in such event, cash distributions may be reduced.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Unexpected
    cost overruns on turnkey drilling jobs could adversely affect
    Precision&#146;s revenues.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Grey Wolf historically derived a portion of its revenues from
    turnkey drilling contracts and management of Precision expects
    that turnkey drilling will continue to represent a part of
    Precision&#146;s revenue. The occurrence of operating cost
    overruns on turnkey jobs could have a material adverse effect on
    the Trust&#146;s financial position and results of operations.
    Under a typical turnkey drilling contract, Precision would agree
    to drill a well for a customer to a specified depth and under
    specified conditions for a fixed price. As part of this
    arrangement, Precision would typically provide technical
</DIV>

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    <BR>
    - 34 -
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    expertise and engineering services, as well as most of the
    equipment required for the drilling of turnkey wells. Precision
    would use subcontractors for related services. In the typical
    turnkey drilling arrangement, Precision would not receive
    progress payments and would be entitled to be paid by the
    customer only after the terms of the drilling contract have been
    performed in full. In addition, from time to time, Grey Wolf had
    encountered difficulties on wells being drilled under turnkey
    contracts and has incurred related costs, not all of which have
    been covered by Grey Wolf&#146;s insurance, as described in
    Note&#160;9 to Grey Wolf&#146;s audited consolidated financial
    statements and Note&#160;12 to Grey Wolf&#146;s unaudited
    consolidated financial statements contained in the BAR. For
    these reasons, the risk under turnkey drilling contracts is
    substantially greater than for wells drilled on a daywork basis,
    because under such contracts Precision must assume most of the
    risks associated with drilling operations that are generally
    assumed by the customer under a daywork contract.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Compliance
    with various environmental laws, rules, legislation and
    guidelines could impose greater costs on Precision&#146;s
    business or lead to a decline in the demand for
    services.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There is growing concern about the apparent connection between
    the burning of fossil fuels and climate change. The issue of
    energy and the environment has created intense public debate in
    Canada and around the world in recent years that is likely to
    continue for the foreseeable future and could potentially have a
    significant impact on all aspects of the economy including the
    demand for hydrocarbons and resulting in lower demand for
    Precision&#146;s services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s operations are subject to numerous laws,
    regulations and guidelines governing the management,
    transportation and disposal of hazardous substances and other
    waste materials and otherwise relating to the protection of the
    environment and health and safety. These laws, regulations and
    guidelines include those relating to spills, releases, emissions
    and discharges of hazardous substances or other waste materials
    into the environment, requiring removal or remediation of
    pollutants or contaminants and imposing civil and criminal
    penalties for violations. Some of the laws, regulations and
    guidelines that apply to Precision&#146;s operations also
    authorize the recovery of natural resource damages by the
    government, injunctive relief, and the imposition of stop,
    control, remediation and abandonment orders. The costs arising
    from compliance with such laws, regulations and guidelines may
    be material to Precision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The trend in environmental regulation has been to impose more
    restrictions and limitations on activities that may impact the
    environment, including the generation and disposal of wastes and
    the use and handling of chemical substances. These restrictions
    and limitations have increased operating costs for both
    Precision and its customers. Any regulatory changes that impose
    additional environmental restrictions or requirements on
    Precision or its customers could adversely affect Precision
    through increased operating costs and potential decreased demand
    for Precision&#146;s services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While Precision maintains liability insurance, including
    insurance for environmental claims, the insurance is subject to
    coverage limits and certain of Precision&#146;s policies exclude
    coverage for damages resulting from environmental contamination.
    There can be no assurance that insurance will continue to be
    available to Precision on commercially reasonable terms, that
    the possible types of liabilities that may be incurred by
    Precision will be covered by Precision&#146;s insurance, or that
    the dollar amount of such liabilities will not exceed
    Precision&#146;s policy limits. Even a partially uninsured
    claim, if successful and of sufficient magnitude, could have a
    material adverse effect on Precision&#146;s business, results of
    operations, prospects and funds available for distributions
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Customer
    merger and acquisition activity could lead to a decline in the
    demand for services.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Merger and acquisition activity in the oil and natural gas
    exploration and production sector can impact demand for
    Precision&#146;s services as customers focus on internal
    reorganization activities prior to committing funds to
    significant drilling and capital maintenance projects.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">There
    are certain risks associated with Precision&#146;s dependence on
    third-party suppliers.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision sources certain key rig components, raw materials,
    equipment and component parts from a variety of suppliers
    located in Canada, the United States and overseas. Precision
    also outsources some or all services for the construction of
    drilling and service rigs. While alternate suppliers exist for
    most of these components, materials, equipment, parts and
    services, cost increases, delays in delivery due to high
    activity or other unforeseen circumstances may be experienced.
    Precision maintains relationships with a number of key suppliers
    and contractors, maintains an inventory of key components,
    materials, equipment and parts and orders long lead time
    components in advance. However, if the current or alternate
    suppliers are unable to provide or deliver the necessary
    components, materials, equipment, parts and services, any
    resulting delays by Precision in the provision of services to
    its customers may have a material adverse effect on
    Precision&#146;s business, results of operations, prospects and
    funds available for distributions.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 35 -
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Trust and Precision may face potential unknown
    liabilities.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There may be unknown liabilities assumed by the Trust through
    its direct and indirect interests in Precision and its other
    operating subsidiaries (including the former Grey Wolf),
    including those associated with prior acquisitions and
    dispositions by Precision as well as environmental issues or tax
    issues. Specifically, Precision has provided certain indemnities
    to the purchasers under the agreement dated September&#160;13,
    2005 between Precision and 1191678 Alberta Inc. The discovery of
    any material liabilities could have an adverse affect on the
    financial condition and results of discontinued operations of
    Precision and, as a result, the amount of cash available for
    distribution to Unitholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision&#146;s
    operations subject it to currency translation risk, which could
    cause results to fluctuate significantly from period to
    period.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s operations in the United States have revenue,
    expenses, assets and liabilities denominated in
    U.S.&#160;dollars. As a result Precision&#146;s income
    statement, balance sheet and statement of cash flow are impacted
    by changes in exchange rates between Canadian and United States
    currencies in three main aspects.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    <I>Translation of United States Currency Assets and Liabilities
    to Canadian Dollar.</I>&#160;&#160;Precision&#146;s  United
    States operations are considered self-sustaining operations and
    will be translated into Canadian dollars using the current rate
    method. Under this method, the assets and liabilities of
    Precision&#146;s operations in the United States will be
    recorded in the consolidated financial statements at the
    exchange rate in effect at the balance sheet dates and the
    unrealized gains and losses will be included in other
    comprehensive income, a component of unitholders&#146; equity.
    As a result, changes in the Canadian to U.S. dollar exchange
    rates will increase or decrease Precision&#146;s U.S. dollar
    denominated net assets on consolidation which will increase or
    decrease unitholders&#146; equity. The translation will increase
    and decrease Precision&#146;s U.S. dollar assets and liabilities
    as a result of changes in foreign exchange rates which could
    have a material impact on the amounts recorded in the balance
    sheet. In addition, under certain circumstances Canadian GAAP
    requires foreign exchange gains and losses that are accumulated
    in other comprehensive income to be recorded as a foreign
    exchange gain or loss in the statement of earnings. For
    Precision&#146;s integrated operations, non-monetary assets and
    liabilities are recorded in the financial statements at the
    exchange rate in effect at the time of the acquisition or
    expenditure. As a result, the book value of these assets and
    liabilities are not impacted by changes in exchange rates.
    Monetary assets and liabilities are converted at the exchange
    rate in effect at the balance sheet dates, and the unrealized
    gains and losses are shown on the statements of earnings as
    &#147;foreign exchange&#148;. Precision has a net monetary asset
    position for its United States operations, which are
    U.S.&#160;dollar based. As a result, if the Canadian dollar
    strengthens versus the U.S.&#160;dollar, Precision will incur a
    foreign exchange loss from the translation of net monetary
    assets.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    <I>Translation of United States Currency Statement of Earnings
    Items to Canadian Dollars.</I>&#160;&#160;Precision&#146;s
    United States operations generate revenue and incur expenses in
    U.S.&#160;dollars and the U.S.&#160;dollar based earnings are
    converted into Canadian dollars for purposes of financial
    statement consolidation and reporting. The conversion of the
    U.S.&#160;dollar based revenue and expenses to a Canadian dollar
    basis does not result in a foreign exchange gain or loss but
    does result in lower or higher net earnings from United States
    operations than would have occurred had the exchange rate not
    changed. If the Canadian dollar strengthens versus the
    U.S.&#160;dollar, the Canadian dollar equivalent of net earnings
    from United States will be negatively impacted. Precision does
    not currently hedge any of its exposure related to the
    translation of U.S.&#160;dollar based earnings into Canadian
    dollars.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    <I>Transaction Exposure.</I>&#160;&#160;The majority of
    Precision&#146;s United States operations are transacted in
    U.S.&#160;dollars. Transactions for Precision&#146;s Canadian
    operations are primarily transacted in Canadian dollars.
    However, Precision occasionally purchases goods and supplies in
    U.S.&#160;dollars. These transactions and foreign exchange
    exposure would not typically have a material impact on the
    Canadian operations&#146; financial results.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision&#146;s
    operations face many risks of interruption and casualty
    losses.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s operations are subject to many hazards inherent
    in the drilling, workover and well servicing industries,
    including blowouts, cratering, explosions, fires, loss of well
    control, loss of hole, damaged or lost drilling equipment and
    damage or loss from inclement weather or natural disasters and
    reservoir damage. Any of these hazards could result in personal
    injury or death, damage to or destruction of equipment and
    facilities, suspension of operations, environmental damage,
    damage to the property of others and damage to producing or
    potentially productive oil and natural gas formations through
    which Precision drills. Generally, drilling and service rig
    contracts provide for the division of responsibilities between a
    drilling or service rig company and its customer, and Precision
    seeks to obtain indemnification from its customers by contract
    for certain of these risks. Precision also seeks protection
    through insurance. However, Precision cannot ensure that such
    insurance or indemnification agreements will adequately protect
    it against liability from
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 36 -
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    all of the consequences of the hazards described above. The
    occurrence of an event not fully insured or indemnified against,
    or the failure of a customer or insurer to meet its
    indemnification or insurance obligations, could result in
    substantial losses. In addition, insurance may not be available
    to cover any or all of these risks, or, even if available, may
    not be adequate. Insurance premiums or other costs may rise
    significantly in the future, so as to make such insurance
    prohibitively expensive or uneconomic. This is particularly of
    concern in the wake of the September&#160;11, 2001 terrorist
    attacks in the United States and the severe hurricane damage in
    the United States Gulf Coast region in 2005 and 2007, both of
    which have resulted in significantly increased insurance costs,
    deductibles and coverage restrictions. In future insurance
    renewals, Precision may choose to increase its self insurance
    retentions (and thus assume a greater degree of risk) in order
    to reduce costs associated with increased insurance premiums.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Business
    acquisitions entail numerous risks and may disrupt
    Precision&#146;s business or distract management
    attention.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust contemplates that as part of its business strategy, it
    will continue to consider and evaluate acquisitions of, or
    significant investments in, businesses and assets that are
    complementary to it. Any acquisition that the Trust completes
    could have a material adverse effect on the Trust&#146;s
    operating results
    <FONT style="white-space: nowrap">and/or</FONT> the
    price of its securities. Acquisitions involve numerous risks,
    including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    unanticipated costs and liabilities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    difficulty of integrating the operations and assets of the
    acquired business;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    the ability to properly access and maintain an effective
    internal control environment over an acquired company in order
    to comply with public reporting requirements;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    potential loss of key employees and customers of the acquired
    companies;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    an increase in Precision&#146;s expenses and working capital
    requirements.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust may incur substantial indebtedness to finance future
    acquisitions and also may issue equity securities or convertible
    securities in connection with any such acquisitions. Debt
    service requirements could represent a significant burden on the
    Trust&#146;s results of operations and financial condition and
    the issuance of additional equity could be dilutive to
    Unitholders. The Trust will also be required to meet certain
    financial covenants in order to borrow money under its credit
    agreements to fund future acquisitions. Acquisitions could also
    divert the attention of management and other employees from
    Precision&#146;s day-to-day operations and the development of
    new business opportunities. Even if the Trust is successful in
    integrating its current or future acquisitions into its existing
    operations, the Trust may not derive the benefits, such as
    operational or administrative synergies, that the Trust expected
    from such acquisitions, which may result in the commitment of
    the Trust&#146;s capital resources without the expected returns
    on such capital. In addition, the Trust may not be able to
    continue to identify attractive acquisition opportunities or
    successfully acquire identified targets.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    results of the Trust&#146;s annual assessment of goodwill may
    result in a non-cash charge against the consolidated net income
    of the Trust.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision is currently assessing and evaluating the carrying
    value of its goodwill, both prior to and subsequent to the
    Acquisition, to determine if, as a consequence of the
    deterioration in general economic conditions during 2008, an
    impairment writedown to goodwill is required under Canadian GAAP
    to be reflected in the audited annual consolidated financial
    statements of the Trust for the year ended December&#160;31,
    2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, Canadian GAAP requires that the Trust assess its
    goodwill balance at least annually for impairment and that any
    permanent impairment writedown be charged to net income. The
    calculation of any impairment is subject to management estimates
    and assumptions. Factors that may be considered in such a
    calculation include, but are not limited to, declines in
    Trust&#160;Unit price and market capitalization, reduced future
    cash flow and earnings estimates, slower growth rates in the
    industry in which the Trust and its subsidiaries operate and
    general economic conditions. Any impairment would result in a
    writedown of the goodwill value and a non-cash charge against
    net income. If any impairment writedown to goodwill is required
    under Canadian GAAP, such writedown may be material.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Any
    difficulty Precision experiences retaining, replacing or adding
    personnel could adversely affect its business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision may not be able to find enough skilled labor to meet
    its needs, which could limit its growth. As a result, Precision
    may have problems finding enough skilled and unskilled laborers
    in the future if demand for its services increases. If Precision
    is not able to increase its service rates sufficiently to
    compensate for similar wage rate increases, its operating
    results may be adversely affected.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 37 -
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although Precision, and prior to the Acquisition, Grey Wolf,
    have not historically encountered material difficulty in hiring
    and retaining qualified rig crews, shortages of qualified
    personnel have occurred in the past in its industry during
    periods of high demand. The demand for qualified rig personnel
    has increased as a result of overall stronger demand for land
    drilling services over the last few years. Management believes
    the demand for qualified rig personnel could increase further as
    new and refurbished rigs are brought into service by the Trust
    and its competitors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Other factors may also inhibit the Trust&#146;s ability to find
    enough workers to meet its employment needs. The work currently
    performed by the employees of the Trust requires skilled workers
    who can perform physically demanding work. As a result of that
    industry&#146;s volatility and the demanding nature of the work,
    workers may choose to pursue employment in fields that offer a
    more desirable work environment at wage rates that are
    competitive with Precision&#146;s. Management believes that its
    success is dependent upon its ability to continue to employ and
    retain skilled technical personnel and qualified rig personnel.
    The Trust&#146;s inability to employ or retain skilled technical
    personnel and qualified rig personnel generally could have a
    material adverse effect on its operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s ability to provide reliable services is
    dependent upon the availability of well-trained, experienced
    crews to operate its field equipment. Precision must also
    balance the requirement to maintain a skilled workforce with the
    need to establish cost structures that fluctuate with activity
    levels. Within Precision the most experienced employees are
    retained during periods of low utilization by having them fill
    lower level positions on field crews. Many of Precision&#146;s
    businesses are currently experiencing manpower shortages in peak
    operating periods. These shortages are likely to be further
    challenged by the number of rigs being added to the industry
    along with the entrance and expansion of newly formed oilfield
    service companies.
</DIV>
<A name='145'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Relating to the Acquisition</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">All
    the anticipated benefits of the Acquisition may not be
    realized.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The success of the Acquisition will depend, in part, on the
    ability of the Trust to achieve the anticipated strategic
    benefits from integrating the businesses of Grey Wolf into the
    Trust. Management expects the Trust to benefit from modest
    operational synergies resulting from the integration of the
    capabilities of Grey Wolf as well as greater efficiencies from
    increased scale. If the Trust is not able to achieve these
    objectives, the anticipated cost synergies and other strategic
    benefits of the Acquisition may not be realized fully or at all
    or may take longer to realize than expected. The Trust may fail
    to realize some or all of the anticipated benefits of the
    Acquisition in the amounts and times projected for a number of
    reasons, including that the integration may take longer than
    anticipated, be more costly than anticipated or have
    unanticipated adverse results relating to the Trust&#146;s
    businesses. As a result of these factors, it is possible that
    the Trust will not achieve the anticipated operating synergies
    from the Acquisition.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Grey
    Wolf may not be integrated successfully.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to the Acquisition, the Trust and Grey Wolf operated
    independently. As a result, the combined operation of the
    resulting entities from the Acquisition will present challenges
    to management, including the integration of the operations,
    systems, technologies and personnel of Grey Wolf, and special
    risks, including possible unanticipated liabilities,
    unanticipated costs, diversion of management&#146;s attention,
    inconsistencies in standards, controls, procedures and policies,
    operational interruptions and the loss of key employees,
    customers or suppliers. The difficulties to be encountered in
    the transition and integration processes could have an adverse
    effect on the revenues, levels of expenses and operating results
    of the combined company. As a result, the Trust may not be able
    to successfully integrate Grey Wolf.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Trust has incurred and will incur significant transaction,
    integration and restructuring costs in connection with the
    Acquisition.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Significant costs of approximately U.S.$227.8&#160;million
    (after accounting for applicable discounts), including a
    U.S.$25&#160;million
    <FONT style="white-space: nowrap">break-up</FONT> fee
    payable by Grey Wolf to a third party, debt issuance costs,
    professional services fees, severance costs and other costs were
    incurred in respect of the Acquisition. Additionally, the Trust
    will incur integration and restructuring costs as the business
    operations of Grey Wolf are integrated with the business of the
    Trust. Although it is expected that, over time, the realization
    of efficiencies related to such integration will offset
    incremental transaction, Acquisition-related and restructuring
    costs, this net benefit may not be achieved in the near term, or
    at all. This may result in unanticipated costs and other changes
    in future financial results.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 38 -
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Trust and its subsidiaries have incurred substantial debt in
    connection with the Acquisition, which could have a material
    adverse effect on its financial position and limit its future
    operations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust and its subsidiaries have a significant amount of debt
    as a result of the financing of the Acquisition. See
    &#147;Recent Developments&#160;&#151; Acquisition
    Financing&#148;, &#147;Consolidated Capitalization of the
    Trust&#148; and &#147;Material Debt&#148;. As of
    December&#160;31, 2008, the Trust&#146;s total outstanding
    long-term debt was $1,576.6&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust&#146;s substantial debt could have a material adverse
    effect on its financial condition and results of operations as
    well as on the distributions that the Trust may pay to
    Unitholders. In particular, it could:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    increase the Trust&#146;s vulnerability to general adverse
    economic and industry conditions and require it to dedicate a
    substantial portion of its cash flow from operations to payments
    on its indebtedness, thereby reducing the availability of its
    cash flow to fund working capital, capital expenditures,
    acquisitions, other debt service requirements, distributions to
    Unitholders and other general corporate purposes;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    increase the Trust&#146;s exposure to risks inherent in interest
    rate fluctuations and changes in credit ratings or statements
    from rating agencies because certain of its borrowings
    (including borrowings under the Credit Facilities) are at
    variable rates of interest, which would result in higher
    interest expense to the extent the Trust has not hedged these
    risks against increases in interest rates;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    increase the Trust&#146;s exposure to exchange rate fluctuations
    because a change in the value of the Canadian dollar against the
    U.S.&#160;dollar will result in an increase or decrease in the
    Trust&#146;s U.S.&#160;dollar denominated debt, as expressed in
    Canadian dollars, as well as in the related interest expense;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    limit the Trust&#146;s flexibility in planning for, or reacting
    to, changes in its business or the industry in which it operates;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    place the Trust at a competitive disadvantage compared to its
    competitors that have less debt;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    limit the Trust&#146;s ability to borrow additional funds to
    meet its operating expenses, to make acquisitions and for other
    purposes;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">    limit the Trust&#146;s ability to construct, purchase or acquire
    new rigs.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust and its subsidiaries may be able to incur substantial
    additional debt in the future, including additional secured debt
    pursuant to the Credit Facilities and under operating
    facilities. This could further exacerbate the risks associated
    with its substantial debt.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Precision
    will require significant amounts of cash to service
    indebtedness.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision will require significant amounts of cash in order to
    service and repay indebtedness. The ability to generate cash in
    the future will be, to a certain extent, subject to general
    economic, financial, competitive and other factors that may be
    beyond management&#146;s control. In addition, the ability to
    borrow funds in the future to service debt will depend on
    covenants in the Credit Facilities and other debt agreements
    which may be entered into in the future. Future borrowings may
    not be available to the Trust or Precision under the Credit
    Facilities or from the capital markets in amounts sufficient to
    enable the Trust or Precision to pay obligations as they mature
    or to fund other liquidity needs (including the required
    repayments on the Bridge Facility and the Secured Facility
    described under &#147;Material Debt&#148;). If Precision is not
    able to obtain such borrowings or generate cash flow from
    operations in an amount sufficient to enable it to service and
    repay indebtedness, the Trust and Precision will need to
    refinance indebtedness or they will be in default under the
    agreements governing indebtedness. Such refinancing may not be
    available on favorable terms or at all. The inability to
    service, repay
    <FONT style="white-space: nowrap">and/or</FONT>
    refinance indebtedness could negatively impact the Trust&#146;s
    financial condition and results of operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Credit Facilities contain restrictive covenants.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of the Secured Facility and Bridge Facility contains a
    number of covenants that, among other things, restrict, the
    Trust&#146;s, Precision&#146;s and their subsidiaries&#146;
    ability to conduct certain activities. See &#147;Material
    Debt&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, under the Secured Facility, Precision will be
    required to satisfy and maintain certain financial ratio tests,
    which ratios may be changed by the lenders in certain
    circumstances. Precision&#146;s ability to meet such tests could
    be affected by events beyond its control, and Precision may not
    be able to meet such tests. A breach of any of these covenants
    could result in a default under the Secured Facility or Bridge
    Facility. Upon the occurrence of an event of default under the
    Credit Facilities, the lenders could elect to declare all
    amounts outstanding under the Credit Facilities to be
    immediately due and payable and terminate all commitments to
    extend further credit. If Precision is unable to repay those
    amounts, the lenders under the Credit Facilities could proceed
    to foreclose or otherwise realize upon the collateral granted to
    them to secure that
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    indebtedness. If the lenders under the Credit Facilities
    accelerate the repayment of borrowings, Precision may not have
    sufficient assets to repay the Credit Facilities as well as its
    unsecured indebtedness. The acceleration of indebtedness under
    one agreement may permit acceleration of indebtedness under
    other agreements that contain cross-default or
    cross-acceleration provisions. If indebtedness is accelerated,
    Precision may not be able to repay its indebtedness or borrow
    sufficient funds to refinance it. Even if Precision is able to
    obtain new financing, it may not be on commercially reasonable
    terms or on terms that are acceptable. The restrictions in the
    Credit Facilities may adversely affect the ability to finance
    future operations and capital needs and to pursue available
    business opportunities. Moreover, any new indebtedness incurred
    by Precision may impose financial restrictions and other
    covenants that may be more restrictive than the Credit
    Facilities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    terms of Precision&#146;s Credit Facilities may be amended by
    the lenders.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to complete a successful syndication of the Secured
    Facility, the Commitment Banks are entitled, prior to
    March&#160;23, 2009 (extendible to May&#160;22, 2009 at
    Precision&#146;s option) in consultation with Precision, to
    change certain of the terms of the Credit Facilities including,
    without limitation, to implement additional increases in
    interest rates, original issue discounts
    <FONT style="white-space: nowrap">and/or</FONT>
    upfront fees, reallocate up to U.S.$250&#160;million between the
    Term Loan A Facility and the Term Loan B Facility, reallocate up
    to U.S.$150&#160;million between the Secured Facility and the
    Bridge Facility and amend certain covenants, financial ratio
    tests and other provisions for portions of the Secured Facility.
    Such changes may result in materially increased or accelerated
    debt service payments or debt repayments, reduce cash
    distributions that may be made by the Trust to Unitholders or
    otherwise materially adversely affect the financial position and
    operations of the Trust. In addition, adverse market conditions
    could result in higher than expected interest
    <FONT style="white-space: nowrap">and/or</FONT>
    original issue discount rates or subject the Trust to
    restrictive covenants that impose restrictions and limitations
    that are in addition to, or more restrictive than, those
    currently existing.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Lobos,
    as the successor to Grey Wolf, is subject to litigation
    regarding the Acquisition which could have an adverse
    effect.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;4, 2008, Howard G. Ahrens filed a class action
    petition in a case styled Howard G. Ahrens, On Behalf of Itself
    and All Others Similarly Situated&#160;v. Grey Wolf, Inc., Frank
    M. Brown, William T. Donovan, Thomas P. Richards, Robert E.
    Rose, Trevor Turbidy, Steven A. Webster, and William R. Ziegler
    (Cause
    <FONT style="white-space: nowrap">No.&#160;2008-53565),</FONT>
    in the District Court of Harris County, Texas,
    127<SUP style="font-size: 85%; vertical-align: top">th</SUP>&#160;Judicial

    District. The petitioner, a purported Grey Wolf shareholder at
    the relevant time, filed suit on behalf of himself &#148;and all
    others similarly situated&#148; alleging (1)&#160;Grey
    Wolf&#146;s board of directors breached fiduciary duties owed to
    shareholders in connection with the Acquisition by, among other
    things, failing to take steps to maximize the value of Grey Wolf
    to public shareholders and (2)&#160;Grey Wolf aided and abetted
    the alleged breach of fiduciary duty by its board of directors.
    The plaintiff sought to enjoin the Acquisition and also asked
    for other relief, including an award of attorneys&#146; and
    experts&#146; fees. On October&#160;27, 2008, Grey Wolf and its
    board of directors challenged the plaintiff&#146;s standing to
    bring a direct action against the board of directors because,
    under Texas law, the members of the board of directors only owe
    fiduciary duties to Grey Wolf, not individual shareholders. The
    Court sustained this challenge and provided the plaintiff with
    the opportunity to amend his pleading, which he did on
    December&#160;12, 2008. The substance of the plaintiff&#146;s
    claims remained unchanged and the standing issue was re-urged.
    On December&#160;18, 2008, the Court ruled in favor of Grey Wolf
    and the board of directors, holding that the plaintiff could not
    enjoin the Acquisition. As of the date of this prospectus, this
    action currently remains pending.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;4, 2008, H. Alan Caplan filed a shareholder
    derivative petition in a case styled H. Alan Caplan&#160;v.
    Steven A. Webster, William R. Ziegler, Frank M. Brown, William
    T. Donovan, Thomas P. Richards, Robert E. Rose, Trevor Turbidy
    and Grey Wolf, Inc. (Cause
    <FONT style="white-space: nowrap">No.&#160;2008-53888)</FONT>
    in the
    165<SUP style="font-size: 85%; vertical-align: top">th</SUP>&#160;District

    Court of Harris County. The plaintiff asserts that he was a
    shareholder of Grey Wolf at the relevant time and alleges that
    Grey Wolf and its directors, in connection with the Acquisition,
    collectively and individually breached fiduciary duties of
    loyalty, good faith, candor and care. The lawsuit further
    alleges that, in connection with the Acquisition, Grey Wolf and
    its directors acted with negligence
    <FONT style="white-space: nowrap">and/or</FONT> gross
    negligence in (i)&#160;failing to maximize shareholder value and
    (ii)&#160;failing to adequately consider previous bona fide
    offers for Grey Wolf. The plaintiff seeks an award of monetary
    damages for all losses
    <FONT style="white-space: nowrap">and/or</FONT>
    damages suffered by Grey Wolf as a result of the allegations
    contained in the lawsuit and an award of attorneys&#146; and
    experts&#146; fees. On November&#160;17, 2008, Grey Wolf
    challenged this lawsuit based on the plaintiff&#146;s failure to
    provide the board of directors the statutorily required demand
    and opportunity to make a determination as to whether the
    lawsuit is in the best interest of the corporation. Three days
    after filing this challenge, the plaintiff submitted the
    required demand. Pursuant to Texas law, Grey Wolf&#146;s board
    of directors immediately formed a committee to investigate the
    allegations set forth in plaintiff&#146;s demand and, on
    December&#160;23, 2008, determined that the lawsuit was not in
    the best interest of the corporation. On the same date, Grey
    Wolf filed its motion to dismiss this lawsuit based on the board
    of director&#146;s determination. As of the date of this
    prospectus, no action by the plaintiff has taken place since the
    motion to dismiss was filed.
</DIV>

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    - 40 -
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On September&#160;11, 2008, Charles J. Crane filed a shareholder
    derivative petition in a case styled Charles J. Crane
    Derivatively On Behalf of Grey Wolf&#160;v. Thomas P. Richards,
    William R. Ziegler, William T. Donovan, Steven A. Webster,
    Robert E. Rose, Frank M. Brown, Trevor M. Turbidy; Precision
    Drilling Trust, Precision Drilling Corporation, and Precision
    Lobos Corporation (Cause
    <FONT style="white-space: nowrap">No.&#160;2008-55129),</FONT>
    in the
    269<SUP style="font-size: 85%; vertical-align: top">th</SUP>&#160;District

    Court of Harris County. The plaintiff asserts that he was a
    shareholder of Grey Wolf at the relevant time. The lawsuit
    alleges that Grey Wolf&#146;s directors breached their fiduciary
    duties owed to their shareholders in connection with the
    Acquisition by, among other things, permitting Precision to
    attempt to eliminate the public shareholders&#146; equity
    interest in Grey Wolf pursuant to a defective sales process and
    permitting Precision to buy Grey Wolf for an unfair price. The
    plaintiff also alleges that Precision aided and abetted this
    alleged breach of fiduciary duty by Grey Wolf&#146;s directors.
    The plaintiff sought to enjoin the Acquisition and also asks for
    other relief, including an award of attorneys&#146; and
    experts&#146; fees. On November&#160;17, 2008, Grey Wolf
    challenged this lawsuit based on the plaintiff&#146;s failure to
    provide the board of directors the statutorily required demand
    and opportunity to make a determination as to whether the
    lawsuit is in the best interest of the corporation. Two days
    after filing this challenge, the plaintiff submitted the
    required demand. Pursuant to Texas law, Grey Wolf&#146;s board
    of directors immediately formed a committee to investigate the
    allegations set forth in plaintiff&#146;s demand and, on
    December&#160;23, 2008, determined that the lawsuit was not in
    the best interest of the corporation. On the same date, Grey
    Wolf filed its motion to dismiss this lawsuit based on the board
    of director&#146;s determination. As of the date of this
    prospectus, no action by the plaintiff has taken place since the
    motion to dismiss was filed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These lawsuits are in the early stages. Management believes that
    these lawsuits are without merit and Lobos intends to defend
    them vigorously; however, the defense may be costly and could
    require substantial amounts of management&#146;s and potentially
    certain directors&#146; time, and if determined or settled in a
    manner adverse to Lobos, the litigation could negatively impact
    the Trust&#146;s financial condition.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Trust&#146;s consolidated results of operations may be
    negatively impacted by foreign currency
    fluctuations.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A substantial portion of the Trust&#146;s consolidated revenues
    following the Acquisition will be earned in non-Canadian
    currencies, primarily U.S.&#160;dollars. For purposes of
    financial reporting under Canadian GAAP, revenues and expenses
    denominated in non-Canadian currencies are translated into
    Canadian dollars at the average exchange rates prevailing during
    the year. It is expected that the Trust will continue to report
    its financial results in Canadian dollars. The revenues that are
    earned in currencies other than Canadian dollars are subject to
    unpredictable fluctuations if the values of non-Canadian
    currencies change relative to the Canadian dollar. Such
    fluctuations could decrease the Trust&#146;s revenues earned in
    non-Canadian currencies and have a material adverse impact on
    its business and results of operations.
</DIV>
<A name='146'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ENFORCEABILITY
    OF CIVIL LIABILITIES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust is an unincorporated open-ended investment trust
    established under the laws of the Province of Alberta pursuant
    to the Declaration of Trust. Some of the Trust&#146;s trustees
    and its subsidiaries&#146; directors and officers and experts
    named in this prospectus are residents of Canada or otherwise
    reside outside the United States, and a substantial portion of
    their assets, and a substantial portion of the Trust&#146;s
    assets, are located outside the United States. The Trust has
    appointed an agent for service of process in the United States,
    but it may be difficult for holders of Trust&#160;Units who
    reside in the United&#160;States to effect service within the
    United States upon those trustees, directors, officers and
    experts who are not residents of the United States. It may also
    be difficult for holders of Trust&#160;Units who reside in the
    United States to realize in the United States upon judgments of
    courts of the United States predicated upon the civil liability
    of the Trust and the civil liability of the trustees, directors,
    officers and experts under the United States federal securities
    laws. The Trust has filed with the SEC, concurrently with the
    Registration Statement, an appointment of agent for service of
    process on
    <FONT style="white-space: nowrap">Form&#160;F-X.</FONT>
    Under the
    <FONT style="white-space: nowrap">Form&#160;F-X,</FONT>
    the Trust appointed CT Corporation System as its agent for
    service of process in the United States in connection with any
    investigation or administrative proceeding conducted by the SEC,
    and any civil suit or action brought against or involving the
    Trust in a United States court arising out of or related to or
    concerning an offering of Securities.
</DIV>
<A name='147'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">STATUTORY
    RIGHTS OF WITHDRAWAL AND RESCISSION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless provided otherwise in a Prospectus Supplement, the
    following is a description of a purchaser&#146;s statutory
    rights. Securities legislation in certain of the provinces of
    Canada provides purchasers with the right to withdraw from an
    agreement to purchase securities. This right may be exercised
    within two business days after receipt or deemed receipt of a
    prospectus and any amendment. In several of the provinces, the
    securities legislation further provides a purchaser with
    remedies for rescission or, in some jurisdictions, revisions of
    the price or damages if the prospectus and any amendment
    contains a misrepresentation or is not delivered to the
    purchaser, provided that such remedies for rescission, revision
    of the
</DIV>

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    <BR>
    - 41 -
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    price or damages are exercised by the purchaser within the time
    limit prescribed by the securities legislation of the
    purchaser&#146;s province. The purchaser should refer to any
    applicable provisions of the securities legislation of the
    purchaser&#146;s province in which the purchaser resides for the
    particulars of these rights or consult with a legal advisor.
</DIV>
<A name='148'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEREST
    OF EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise specified in the Prospectus Supplement relating
    to an offering of Securities, certain legal matters relating to
    the offering of such Securities will be passed upon on behalf of
    the Trust by Bennett Jones LLP, with respect to matters of
    Canadian law, Felesky Flynn LLP, with respect to matters of
    Canadian federal income tax law, and Mayer Brown LLP, with
    respect to matters of United States law. As at the date hereof,
    the partners and associates of each of Bennett Jones LLP,
    Felesky Flynn LLP and Mayer Brown LLP, as a group, each owned,
    directly or indirectly, less than 1% of the outstanding
    Trust&#160;Units.
</DIV>

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    <BR>
    - 42 -
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<A name='149'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">AUDITORS&#146;
    CONSENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consent
    of KPMG LLP</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors of Precision Drilling Corporation, as
    Administrator of Precision Drilling Trust
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have read the preliminary short form base shelf prospectus
    dated January&#160;21, 2009 relating to the sale and issue of
    trust units, debt securities, warrants and subscription receipts
    of Precision Drilling Trust (the &#147;<B>Trust</B>&#148;). We
    have complied with Canadian generally accepted standards for an
    auditors&#146; involvement with offering documents.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We consent to the incorporation by reference in the
    above-mentioned preliminary short form base shelf prospectus of
    our report to the unitholders of the Trust on the consolidated
    balance sheets of the Trust as at December&#160;31, 2007 and
    2006 and the consolidated statements of earnings and retained
    earnings (deficit) and cash flow for each of the years in the
    three-year period ended December&#160;31, 2007. We also consent
    to the incorporation by reference in the above-mentioned
    preliminary short form prospectus of our report to the Board of
    Directors of Precision Drilling Corporation as Administrator of
    Precision Drilling Trust and to the unitholders of the Trust on
    the effectiveness of internal control over financial reporting
    as of December&#160;31, 2007. Our reports are dated
    March&#160;20, 2008.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (signed) &#147;KPMG LLP&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Calgary, Canada<BR>
    January&#160;21, 2009
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consent
    of Independent Registered Public Accounting Firm</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors of Precision Drilling Corporation, as
    Administrator of Precision Drilling Trust:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We consent to the use of our report dated February&#160;28,
    2008, except as to Notes&#160;13 and 14, which are as of
    January&#160;20, 2009, with respect to the consolidated balance
    sheets of Grey Wolf, Inc. and subsidiaries as of
    December&#160;31, 2007 and 2006, and the related consolidated
    statements of operations, shareholders&#146; equity and
    comprehensive income, and cash flows for each of the years in
    the three-year period ended December&#160;31, 2007, and related
    financial statement schedule included in the business
    acquisition report of Precision Drilling Trust dated
    January&#160;21, 2009 which is incorporated by reference in the
    preliminary short form base shelf prospectus dated
    January&#160;21, 2009 relating the sale and issue of trust
    units, debt securities, warrants and subscription receipts of
    Precision Drilling Trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our report on the consolidated financial statements referred to
    above refers to a change in the methods of accounting for
    uncertainty in income taxes as of January&#160;1, 2007 and
    accounting for stock-based compensation plans as of
    January&#160;1, 2006, and differences in accounting principles
    generally accepted in Canada and the United States.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (signed) &#147;KPMG LLP&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Houston, Texas<BR>
    January&#160;21, 2009
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    - 43 -
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "PART II" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">PART II
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">INFORMATION NOT REQUIRED TO BE<BR>
DELIVERED TO OFFEREES OR PURCHASERS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Indemnification of Certain Persons</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Trust&#146;s Declaration of Trust, each trustee of the Trust, each former trustee of the
Trust, each officer of the Trust and each former officer of the Trust shall be entitled to be and
shall be indemnified and reimbursed out of the assets of the Trust in respect of any and all taxes,
penalties or interest in respect of unpaid taxes or other governmental charges imposed upon the
trustee or officer in consequence of such person&#146;s performance of such person&#146;s duties under the
Declaration of Trust and in respect of any and all costs, charges and expenses, including amounts
paid to settle an action or satisfy a judgment, reasonably incurred in respect of any civil,
criminal or administrative action or proceeding to which the trustee, former trustee, officer or
former officer is made a party by reason of being or having been a trustee or officer of the Trust
or, at the request of the Trust, a director, trustee or officer of any affiliate of the Trust;
provided that a trustee, former trustee, officer or former officer shall not be indemnified out of
the assets of the Trust in respect of unpaid taxes or other governmental charges or in respect of
such costs, charges and expenses that arise out of or as a result or in the course of his or her
failure to act honestly and in good faith with a view to the best interests of the Trust, or out of
or as a result of or in the course of his or her failure to exercise that degree of care, diligence
or skill that a reasonably prudent person would exercise in comparable circumstances or, in the
case of a criminal or administrative action or proceeding that is enforced by monetary penalty,
where such person did not have reasonable grounds for believing that his or her conduct was lawful.
A trustee, former trustee, officer or former officer shall not be entitled to satisfy any right of
indemnity or reimbursement granted herein, or otherwise existing under law, except out of the
assets of the Trust, and no holder of trust units or other trustee or officer shall be personally
liable to any person with respect to any claim for such indemnity or reimbursement as aforesaid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the administration agreement between the Trust and Precision, Precision and any
person who is serving or shall have served as a director, officer or employee of Precision shall be
indemnified and saved harmless by the Trust (in each case in relation to services provided in
respect of or for the benefit of such party) from and against all losses, claims, damages,
liabilities, obligations, costs and expenses (including judgments, fines, penalties amounts paid in
settlement and counsel and accountants&#146; fees) of whatsoever kind and nature incurred by, borne by
or asserted against any of such indemnified parties in any way arising from or related in any
manner to the administration agreement or the provision of services thereunder, unless such
indemnified party is found liable for or guilty of fraud, willful default or gross negligence.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Business Corporations Act (Alberta) (the &#147;ABCA&#148;), Precision may indemnify a present
or former director or officer or a person who acts or acted at Precision&#146;s request as a director or
officer of a body corporate of which Precision is or was a shareholder or creditor, and his or her
heirs and legal representatives, against all costs, charges and expenses, including an amount paid
to settle an action or satisfy a judgment, reasonably incurred by him or her in respect of any
civil, criminal or administrative action or proceeding to which he or she is made a party by reason
of being or having been a director or officer of Precision or that body corporate, if the director
or officer acted honestly and in good faith with a view to the best interests of Precision, and, in
the case of a criminal or administrative action or proceeding that is enforced by a monetary
penalty, had reasonable grounds for believing that his or her conduct was lawful. Such
indemnification may be in connection with a derivative action only with court approval. A director
or officer is entitled to indemnification from Precision as a matter of right if he or she was
substantially successful on the merits in the person&#146;s defense of the action or proceeding,
fulfilled the conditions set forth above, and is fairly and reasonably entitled to indemnify.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The by-laws of Precision provide that, subject to the limitations contained in the ABCA,
Precision shall indemnify a director or officer, a former director or officer, or a person who acts
or acted at Precision&#146;s request as a director or officer of a body corporate of which Precision is
or was a shareholder or creditor (or a person who undertakes or has undertaken any liability on
behalf of Precision or any such body corporate), and his or her heirs and legal representatives,
against all costs, charges and expenses, including an amount paid to settle an action or satisfy a
judgment, reasonably incurred by him or her in respect of any civil, criminal or administrative
action or proceeding to which he or she is made a party by reason of being or having been a
director or officer of Precision or
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->II-1 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">such body corporate, if he or she acted honestly and in good faith with a view to the best
interests of Precision; and, in the case of a criminal or administrative action or proceeding that
is enforced by a monetary penalty, he or she had reasonable grounds for believing that his or her
conduct was lawful.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The by-laws of Precision provide that Precision may, subject to the limitations contained in
the ABCA, purchase and maintain such insurance for the benefit of its directors and officers as
such, as the board of directors of Precision may from time to time determine.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar as indemnification for liabilities arising under the Securities
Act of 1933 may be permitted to trustees, officers or persons controlling
the registrant pursuant to the foregoing provisions, the registrant has
been informed that in the opinion of the U.S. Securities and Exchange Commission
such indemnification is against public policy and is therefore unenforceable.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->II-2 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBITS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>
<TR valign="top"><!-- Blank Space -->
 <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD></TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Annual Information Form of Precision Drilling Trust for the year ended December&nbsp;31, 2007,
dated March&nbsp;25, 2008 (included as part of the Form&nbsp;40-F filed with the Securities and
Exchange Commission on March&nbsp;28, 2008 and incorporated by reference herein).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Audited comparative consolidated financial statements of Precision Drilling Trust as at
December&nbsp;31, 2007 and 2006, the notes thereto, the auditors&#146; report thereon
and the auditors&#146; report on internal controls over financial reporting as of December&nbsp;31, 2007 (included
as part of the Form&nbsp;40-F filed with the Securities and Exchange Commission on March&nbsp;28,
2008 and incorporated by reference herein).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Management&#146;s discussion and analysis of financial condition and results of operations of
Precision Drilling Trust as at and for the year ended December&nbsp;31, 2007 (included as part
of the Form&nbsp;40-F filed with the Securities and Exchange Commission on March&nbsp;28, 2008 and
incorporated by reference herein).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Unaudited interim comparative consolidated financial statements
of Precision Drilling
Trust for the three and nine month periods ended September&nbsp;30, 2008 (filed with the Securities and
Exchange Commission as part of a Form&nbsp;6-K report on November&nbsp;13, 2008 and incorporated by
reference herein).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Management&#146;s discussion and analysis of financial condition
and results of operations of
Precision Drilling Trust for the three and nine month periods ended September&nbsp;30,
2008 (filed
with the Securities and Exchange Commission as part of a Form&nbsp;6-K report on November&nbsp;13,
2008 and incorporated by reference herein).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The supplemental note entitled &#147;Reconciliation of Financial Statements to United States
Generally Accepted Accounting Principles&#148; for the nine month periods ended September&nbsp;30,
2008 and 2007 (filed with the Securities and Exchange Commission as part of a Form&nbsp;6-K
report on December&nbsp;12, 2008 and incorporated by reference herein).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Information Circular of the Trust dated March&nbsp;28, 2008 (filed with the Securities and
Exchange Commission as part of a Form&nbsp;6-K report on April&nbsp;9, 2008 and incorporated by
reference herein).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*4.8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Material change report dated August&nbsp;28, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*4.9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Material change report dated December&nbsp;19, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*4.10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Material change report dated December&nbsp;23, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">**4.12
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of KPMG Calgary to be filed with the Alberta Securities Commission.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">**4.13
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of KPMG Houston to be filed with the Alberta Securities Commission.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">**4.14
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Bennett Jones LLP to be filed with the Alberta Securities Commission.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">**4.15
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Mayer Brown LLP to be filed with the Alberta Securities Commission.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-3 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>
<TR valign="top"><!-- Blank Space -->
 <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD></TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">**4.16
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Felesky Flynn LLP to be filed with the Alberta Securities Commission.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*5.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of KPMG Calgary.</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*5.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of KPMG Houston.</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">**5.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Bennett Jones LLP.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">**5.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Mayer Brown LLP.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">**5.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Felesky Flynn LLP.</TD>
</TR>


<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*6.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of attorney (pages III-2 of the Registration Statement).</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Filed herewith.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>To be filed by amendment.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio -->II-4 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "PART III" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">PART III
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">UNDERTAKING AND CONSENT TO SERVICE OF PROCESS

</DIV>
<!-- link2 "Item&nbsp;1. Undertaking" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1. Undertaking</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant undertakes to make available, in person or by telephone, representatives to
respond to inquiries made by the Commission staff, and to furnish promptly, when requested to do so
by the Commission staff, information relating to the securities registered pursuant to Form F-10 or
to transactions in said securities.
</DIV>
<!-- link2 "Item&nbsp;2. Consent to Service of Process" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2. Consent to Service of Process</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Concurrently with the filing of this Registration Statement, the Registrant is filing with
the Commission a written irrevocable consent and power of attorney on Form F-X.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any change to the name or address of the agent for service of the Registrant shall be
communicated promptly to the Commission by amendment of Form F-X referencing the file number
of the relevant registration statement.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->III-1 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<!-- link1 "SIGNATURES" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SIGNATURES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it
has reasonable grounds to believe that it meets all of the requirements for filing on Form F-10 and
has duly caused this Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Calgary, Province of Alberta, Country of Canada, on the
21<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> day of January, 2009.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">PRECISION DRILLING TRUST, <FONT style="font-variant: SMALL-CAPS">by its<BR>
administrator, Precision Drilling Corporation </FONT><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;&nbsp;/s/ Douglas J. Strong
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center">Douglas J. Strong&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center"><I>Chief Financial Officer,<BR>
Precision Drilling Corporation</I>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>POWER OF ATTORNEY</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each person whose signature appears below constitutes and appoints each of Douglas J. Strong
and Kenneth J. Haddad his or her true and lawful attorney-in-fact and agent, each acting alone,
with full power of substitution and resubstitution, for him or her and in his or her name, place
and stead, in any and all capacities, to sign any or all amendments (including post-effective
amendments) to this Registration Statement, and to file the same, with all exhibits thereto, and
other documents in connection therewith, with the Securities and Exchange Commission, granting unto
said attorneys-in-fact and agents, each acting alone, full power and authority to do and perform
each and every act and thing appropriate or necessary to be done in connection therewith, as fully
to all intents and purposes as he or she might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, or their substitute or
substitutes, may lawfully do or cause to be done by virtue&nbsp;hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Power and Attorney may be executed in multiple counterparts, each of which shall be
deemed an original, but which taken together shall constitute one instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has
been signed below by the following persons in the capacities and on the dates indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Signature</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Kevin A. Neveu
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Chief Executive Officer,
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">January 21, 2009</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Kevin A. Neveu
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Precision Drilling Corporation</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Douglas J. Strong
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Chief Financial Officer,
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">January 21, 2009</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Douglas J. Strong
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Precision Drilling Corporation</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Leonard C. Gambles
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Chief Accounting Officer,
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">January 21, 2009</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Leonard C. Gambles
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Precision Drilling Corporation</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Robert J.S. Gibson
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Trustee
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">January 21, 2009</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Robert J.S. Gibson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Allen R. Hagerman, FCA
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Trustee
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">January 21, 2009</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Allen R. Hagerman, FCA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Patrick M. Murray
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Trustee
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">January 21, 2009</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Patrick M. Murray</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->III-2 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">AUTHORIZED REPRESENTATIVE
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of Section 6(a) of the Securities Act of 1933, the undersigned
has signed this Registration Statement, solely in the capacity of the duly authorized
representative of Precision Drilling Trust in the United States, on January 21, 2009 in Houston,
Texas.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><FONT style="font-variant: SMALL-CAPS">Precision Drilling Corporation</FONT><BR>
<FONT style="font-variant: SMALL-CAPS">(Authorized Representative)</FONT><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Kenneth J. Haddad
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center">Kenneth J. Haddad&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center"><I>Vice President</I>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->III-3 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "EXHIBIT INDEX" -->
<DIV align="center" style="font-size: 10pt; margin-top: 18pt">EXHIBIT INDEX
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>
<TR valign="top"><!-- Blank Space -->
 <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD></TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Annual Information Form of Precision Drilling Trust for the year ended December&nbsp;31, 2007,
dated March&nbsp;25, 2008 (included as part of the Form&nbsp;40-F filed with the Securities and
Exchange Commission on March&nbsp;28, 2008 and incorporated by reference herein).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Audited comparative consolidated financial statements of Precision Drilling Trust as at
December&nbsp;31, 2007 and 2006, the notes thereto, the auditors&#146; report thereon
and the auditors&#146; report on internal controls over financial reporting as of December&nbsp;31, 2007 (included
as part of the Form&nbsp;40-F filed with the Securities and Exchange Commission on March&nbsp;28,
2008 and incorporated by reference herein).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Management&#146;s discussion and analysis of financial condition and results of operations of
Precision Drilling Trust as at and for the year ended December&nbsp;31, 2007 (included as part
of the Form&nbsp;40-F filed with the Securities and Exchange Commission on March&nbsp;28, 2008 and
incorporated by reference herein).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Unaudited interim comparative consolidated financial statements
of Precision Drilling
Trust for the three and nine month periods ended September&nbsp;30, 2008 (filed with the Securities and
Exchange Commission as part of a Form&nbsp;6-K report on November&nbsp;13, 2008 and incorporated by
reference herein).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Management&#146;s discussion and analysis of financial condition
and results of operations of
Precision Drilling Trust for the three and nine month periods ended September&nbsp;30,
2008 (filed
with the Securities and Exchange Commission as part of a Form&nbsp;6-K report on November&nbsp;13,
2008 and incorporated by reference herein).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The supplemental note entitled &#147;Reconciliation of Financial Statements to United States
Generally Accepted Accounting Principles&#148; for the nine month periods ended September&nbsp;30,
2008 and 2007 (filed with the Securities and Exchange Commission as part of a Form&nbsp;6-K
report on December&nbsp;12, 2008 and incorporated by reference herein).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Information Circular of the Trust dated March&nbsp;28, 2008 (filed with the Securities and
Exchange Commission as part of a Form&nbsp;6-K report on April&nbsp;9, 2008 and incorporated by
reference herein).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*4.8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Material change report dated August&nbsp;28, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*4.9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Material change report dated December&nbsp;19, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*4.10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Material change report dated December&nbsp;23, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">**4.12
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of KPMG Calgary to be filed with the Alberta Securities Commission.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">**4.13
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of KPMG Houston to be filed with the Alberta Securities Commission.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">**4.14
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Bennett Jones LLP to be filed with the Alberta Securities Commission.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">**4.15
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Mayer Brown LLP to be filed with the Alberta Securities Commission.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->E-1 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">**4.16
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Felesky Flynn LLP to be filed with the Alberta Securities Commission.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*5.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of KPMG Calgary.</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*5.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of KPMG Houston.</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">**5.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Bennett Jones LLP.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">**5.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Mayer Brown LLP.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">**5.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Felesky Flynn LLP.</TD>
</TR>


<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*6.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of attorney (pages III-2 of the Registration Statement).</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Filed herewith.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>To be filed by amendment.</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio -->E-2 <!-- /Folio -->
</DIV>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.8
<SEQUENCE>2
<FILENAME>h65377exv4w8.htm
<DESCRIPTION>EX-4.8
<TEXT>
<HTML>
<HEAD>
<TITLE>exv4w8</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;4.8</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>FORM 51-102F3</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>MATERIAL CHANGE REPORT</B>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Name and Address of Company:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Precision Drilling Trust (the &#147;<B>Trust</B>&#148;)<br>
4200, 150-6<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Avenue S.W.<br>
Calgary, AB T2P 3Y7</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Date of Material Change:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>August&nbsp;24, 2008</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>News Release:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A press release disclosing the material change, a copy of which is attached hereto, was
issued on August&nbsp;25, 2008 through the facilities of MarketWire and was filed with the
applicable securities regulatory authorities via SEDAR on the same date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Summary of Material Change:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Trust has entered into an agreement and plan of merger dated August&nbsp;24, 2008 (the
&#147;<B>Merger Agreement</B>&#148;) with Grey Wolf, Inc. (&#147;<B>Grey Wolf</B>&#148;), Precision Drilling Corporation (the
&#147;<B>Corporation</B>&#148;) and Precision Lobos Corporation (&#147;<B>Lobos</B>&#148;), pursuant to which the Trust will
indirectly acquire Grey Wolf.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Full Description of the Material Change:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Trust has entered into the <B>Merger Agreement </B>with Grey Wolf, the Corporation and Lobos,
pursuant to which the Trust will indirectly acquire Grey Wolf (the &#147;<B>Acquisition</B>&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Acquisition will be completed by way of a merger under the applicable laws of the State
of Texas. Pursuant to the Acquisition, Grey Wolf will be merged with and into Lobos
pursuant to the <I>Texas Business Corporations Act </I>and the <I>Texas Corporation Law</I>. Lobos is a
direct, wholly-owned subsidiary of the Trust. Following the completion of the Acquisition,
the separate legal existence of Grey Wolf shall cease and Lobos shall be the surviving
corporation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Under the terms of the Merger Agreement, shareholders of Grey Wolf may elect to receive
either cash or trust units of the Trust (the &#147;<B>Trust Units</B>&#148;) in exchange for their shares of
Grey Wolf common stock. Each share of Grey Wolf common stock will be convertible, at the
option of the holder, into U.S.$9.02 in cash or 0.4225 Trust Units, subject to proration.
The maximum amount of cash to be paid by the Trust will be approximately U.S.$1.12&nbsp;billion
and the maximum number of Trust Units to be issued will be approximately 42&nbsp;million. These
maximum amounts translate to U.S.$5.00 in cash and 0.1883 of a Trust Unit for each share of
Grey Wolf common stock.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Upon completion of the Acquisition, the former shareholders of Grey Wolf common stock will
own approximately 25% of the issued and outstanding Trust Units.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Trust, the Corporation, Lobos and Grey Wolf have each made customary representations,
warranties and covenants in the Merger Agreement, including, among others, covenants to
conduct their businesses in the ordinary course between the execution of the Merger
Agreement and the consummation of the Acquisition and covenants not to engage in certain
kinds of transactions during that period.</TD>
</TR>
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</div>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">- 2 -</Div>


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Completion of the Acquisition is subject to customary conditions, including, among others,
(i)&nbsp;approval of the Merger Agreement by shareholders of Grey Wolf, (ii)&nbsp;the receipt of
required regulatory approvals, (iii)&nbsp;the effectiveness of the registration statement that
will be filed by the Trust for the issuance of the Trust Units as consideration in the
Acquisition and the approval of the listing of the Trust Units on the New York Stock
Exchange and Toronto Stock Exchange and (iv)&nbsp;the absence of any material adverse effect with
respect to Grey Wolf&#146;s and the Trust&#146;s business, as applicable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financing is not a condition to consummation of the Acquisition. The Trust has received
commitments from Deutsche Bank Securities, Royal Bank of Canada, HSBC Bank and The Toronto
Dominion Bank to finance the cash portion of the merger consideration.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Merger Agreement contains certain termination rights for the Trust. Upon termination of
the Merger Agreement under certain specified circumstances, Grey Wolf would be required to
pay the Trust a termination fee of up to U.S.$64.0&nbsp;million.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is anticipated that a proxy statement will be mailed to Grey Wolf shareholders by the end
of the third quarter with the special meeting of Grey Wolf shareholders to consider the
Merger Agreement to be held before the end of 2008. No vote of holders of Trust Units is
required in connection with the Acquisition.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The foregoing description of the Merger Agreement does not purport to be complete and is
qualified in its entirety by reference to the Merger Agreement which has been filed on SEDAR
and is available at <U>www.sedar.com</U>.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Reliance on Subsection 7.1(2) or (3)&nbsp;of National Instrument 51-102:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Omitted Information:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Executive Officer:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For further information, please contact Darren Ruhr, Vice President, Corporate Services and
Corporate Secretary, at (403)&nbsp;716-4500.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Date of Report:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>August&nbsp;28, 2008.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.9
<SEQUENCE>3
<FILENAME>h65377exv4w9.htm
<DESCRIPTION>EX-4.9
<TEXT>
<HTML>
<HEAD>
<TITLE>exv4w9</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->



<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;4.9</B></DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>FORM 51-102F3</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>MATERIAL CHANGE REPORT</B>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Name and Address of Company:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Precision Drilling Trust (the &#147;<B>Trust</B>&#148;)<br>
4200, 150 &#151; 6<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Avenue S.W.<br>
Calgary, AB T2P 3Y7</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Date of Material Change:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>December&nbsp;11, 2008</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>News Release:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Press releases disclosing the material change, copies of which are attached hereto as
Schedule &#147;A&#148;, were issued on December&nbsp;11, 2008 and December&nbsp;18, 2008, respectively, through
the facilities of MarketWire and were filed with the applicable securities regulatory
authorities via SEDAR on such dates.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Summary of Material Change:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On December&nbsp;11, 2008, the Trust announced the expected principal terms of the credit
facilities (the &#147;<B>Credit Facilities</B>&#148;) with its banking syndicate, consisting of Royal Bank of
Canada, RBC Capital Markets, Deutsche Bank AG Cayman Islands Branch, Deutsche Bank
Securities Inc., HSBC Bank Canada, HSBC Bank USA, National Association and The
Toronto-Dominion Bank (collectively, the &#147;<B>Banks</B>&#148;), in conjunction with its proposed
acquisition (the &#147;<B>Acquisition</B>&#148;) of Grey Wolf, Inc. (&#147;<B>Grey Wolf</B>&#148;). Based on consultation
with the Banks, it is currently expected that the costs and fees for the Credit Facilities
will be more than originally anticipated. As a consequence, the Trust announced that it:
(i)&nbsp;will be pursuing a debt reduction program following completion of the Acquisition; (ii)
will be considering its distribution policy and may determine to reduce or suspend monthly
distributions following the Acquisition; and (iii)&nbsp;will be re-evaluating its planned capital
expenditure program including expansion and upgrade capital expenditures.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On December&nbsp;18, 2008, the Trust announced that following the closing of the Acquisition, the
Trust&#146;s board of trustees anticipates reducing monthly cash distributions by $0.09 per trust
unit to $0.04 per trust unit beginning with the distribution declared in January&nbsp;2009 for
payment in February&nbsp;2009.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Full Description of the Material Change:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On December&nbsp;11, 2008, the Trust announced the expected principal terms of the Credit
Facilities with its banking syndicate. In conjunction with the Acquisition, and as
previously disclosed, the Credit Facilities will consist of US$800&nbsp;million of senior secured
term loan facilities and a US$400&nbsp;million senior unsecured facility which will be used to
finance the cash portion of the consideration paid in connection with the Acquisition. The
Credit Facilities also include a US$400&nbsp;million senior secured revolving facility that will
be primarily used to finance working capital needs and general corporate purposes of the
Trust.</TD>
</TR>

</TABLE>
</div>

<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>






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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><!-- Folio -->- 2 -<!-- /Folio -->


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on consultation with the Banks, it is currently expected that the costs and fees for
the Credit Facilities will be more expensive than originally anticipated. The terms of the
financing are expected to include:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a blended cash interest rate of approximately 11% per annum before upfront
costs, increased from the 8% originally estimated in the pro forma financial
information included in the Trust&#146;s and Grey Wolf&#146;s proxy statement/prospectus
dated October&nbsp;28, 2008;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>additional upfront costs in the form of original issuance discounts and fees
of approximately US$76&nbsp;million which will reduce the proceeds of the financing
by a total of approximately US$133&nbsp;million;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>limits on distributions based on 20% of the Trust&#146;s operating cash flow
before changes in working capital, provided that 50% of operating cash flow
generated in excess of certain base case projections will also be permitted to
be paid as distributions, subject to an overall cap of 30% of aggregate
operating cash flow before changes in working capital;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>debt covenants that will limit the Trust&#146;s capital expenditures above an
agreed base-case, allowing for certain exceptions; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provisions reserved by the Banks to facilitate syndication of the Credit
Facilities for a period following closing which may result in further increases
in any or a combination of interest rates, original issue discounts or fees,
all subject to certain market-based indexing.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As a consequence, the Trust announced that it: (i)&nbsp;will be pursuing a debt reduction program
following completion of the Acquisition; (ii)&nbsp;will be considering its distribution policy
and may determine to reduce or suspend monthly distributions following the Acquisition; and
(iii)&nbsp;will be re-evaluating its planned capital expenditure program including expansion and
upgrade capital expenditures.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On December&nbsp;18, 2008, the Trust announced that following the closing of the Acquisition, the
Trust&#146;s board of trustees anticipates reducing monthly cash distributions by $0.09 per trust
unit to $0.04 per trust unit beginning with the distribution declared in January&nbsp;2009 for
payment in February&nbsp;2009.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>See the press releases attached hereto as Schedule &#147;A&#148; for a full description of the
material change.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Reliance on Subsection 7.1(2) or (3)&nbsp;of National Instrument 51-102:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Omitted Information:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</div>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">- 3 -</Div>


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Executive Officer:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For further information, please contact Darren Ruhr, Vice President, Corporate Services and
Corporate Secretary, at (403)&nbsp;716-4500.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Date of Report:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>December&nbsp;19, 2008.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.10
<SEQUENCE>4
<FILENAME>h65377exv4w10.htm
<DESCRIPTION>EX-4.10
<TEXT>
<HTML>
<HEAD>
<TITLE>exv4w10</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;4.10</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>FORM 51-102F3</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>MATERIAL CHANGE REPORT</B>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Name and Address of Company:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Precision Drilling Trust (the &#147;<B>Trust</B>&#148;)<br>
4200, 150 &#151; 6<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Avenue S.W.<br>
Calgary, AB T2P 3Y7</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Date of Material Change:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>December&nbsp;23, 2008</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>News Release:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A press release disclosing the material change, a copy of which is attached hereto as
Schedule &#147;A&#148;, was issued on December&nbsp;23, 2008 through the facilities of MarketWire and was
filed with the applicable securities regulatory authorities via SEDAR on the same date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Summary of Material Change:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Trust announced that it has closed its previously announced acquisition (the
&#147;<B>Acquisition</B>&#148;) of Grey Wolf, Inc. (&#147;<B>Grey Wolf</B>&#148;), pursuant to an agreement and plan of merger
dated August&nbsp;24, 2008, as amended December&nbsp;2, 2008 (the &#147;<B>Merger Agreement</B>&#148;), with Grey Wolf,
Precision Drilling Corporation and Precision Lobos Corporation (&#147;<B>Lobos</B>&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Full Description of the Material Change:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Acquisition was completed by way of a merger under the applicable laws of the State of
Texas. Pursuant to the Acquisition, Grey Wolf was merged with and into Lobos (a direct,
wholly-owned subsidiary of the Trust) pursuant to the <I>Texas Business Corporations Act </I>and
the <I>Texas Corporation Law</I>. Accordingly, the separate legal existence of Grey Wolf has ceased
and Lobos is the surviving corporation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Under the terms of the Merger Agreement, shareholders of Grey Wolf could elect to receive
either cash or trust units of the Trust (the &#147;<B>Trust Units</B>&#148;) in exchange for their shares of
Grey Wolf common stock. Each share of Grey Wolf common stock was convertible, at the option
of the holder, into U.S.$9.02 in cash or 0.4225 Trust Units, subject to proration. The
total consideration paid by the Trust to shareholders of Grey Wolf in connection with the
Acquisition was approximately U.S.$906,465,529 and 33,999,666 Trust Units.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>See the press release attached hereto as Schedule &#147;A&#148; for a full description of the material
change.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Reliance on Subsection 7.1(2) or (3)&nbsp;of National Instrument 51-102:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Omitted Information:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable.</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</div>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">- 2 -</Div>




<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Executive Officer:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For further information, please contact Darren Ruhr, Vice President, Corporate Services and
Corporate Secretary, at (403)&nbsp;716-4500.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Date of Report:</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>December&nbsp;23, 2008.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>5
<FILENAME>h65377exv5w1.htm
<DESCRIPTION>EX-5.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv5w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;5.1</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><IMG src="h65377h6537701.gif" alt="(KPMG LOGO)"></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>KPMG LLP</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Chartered Accountants</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone</TD>
<TD align="left" valign="top">&nbsp;(403)&nbsp;691-8000</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2700 205 &#151; 5<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Avenue SW
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax</TD>
<TD align="left" valign="top">&nbsp;(403)&nbsp;691-8008</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Calgary AB T2P 4B9
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Internet</TD>
<TD>&nbsp;www.kpmg.ca</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Consent of Independent Registered Public Accounting Firm</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board of Directors of Precision Drilling Corporation, as administrator of Precision Drilling
Trust
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We consent to the use of our reports dated March&nbsp;20, 2008, with respect to the consolidated balance
sheets of Precision Drilling Trust as of December&nbsp;31, 2007 and 2006, and the related consolidated
statements of earnings and retained earnings (deficit)&nbsp;and cash flow for each of the years in the
three-year period ended December&nbsp;31, 2007 and the effectiveness of internal control over financial
reporting as of December&nbsp;31, 2007, incorporated by reference in Precision Drilling Trust&#146;s
registration statement on Form&nbsp;F-10.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">/s/ KPMG LLP<BR><BR>
Calgary, Canada<BR>
January 21, 2009

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5.2
<SEQUENCE>6
<FILENAME>h65377exv5w2.htm
<DESCRIPTION>EX-5.2
<TEXT>
<HTML>
<HEAD>
<TITLE>exv5w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;5.2</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Consent of Independent Registered Public Accounting Firm</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">The Board of Directors of Precision Drilling Corporation, as Administrator of Precision Drilling
Trust:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We consent to the use of our
report dated February&nbsp;28, 2008, except as to Notes 13 and 14, which
are as of January&nbsp;20, 2009, with respect to the consolidated balance sheets of Grey Wolf, Inc. and
subsidiaries as of December&nbsp;31, 2007 and 2006, and the related consolidated statements of
operations, shareholders&#146; equity and comprehensive income, and cash flows for each of the years in
the three-year period ended December&nbsp;31, 2007, and related financial statement schedule
included in the business acquisition report of Precision Drilling Trust dated January&nbsp;21,
2009 which is incorporated by reference in Precision Drilling Trust&#146;s registration statement on Form F-10.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our report on the consolidated financial statements referred to above refers to a change in the
methods of accounting for uncertainty in income taxes as of January&nbsp;1, 2007 and accounting for
stock-based compensation plans as of January&nbsp;1, 2006, and differences in accounting principles
generally accepted in Canada and the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">/s/ KPMG LLP
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Houston, Texas<BR>
January&nbsp;21, 2009
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>




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<!1$50@I&@$`&(`"!"9R`!R<(@(`&8'J(0```.S\_
`
end
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