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<SEC-DOCUMENT>0000950129-09-001393.txt : 20090429
<SEC-HEADER>0000950129-09-001393.hdr.sgml : 20090429
<ACCEPTANCE-DATETIME>20090429153407
ACCESSION NUMBER:		0000950129-09-001393
CONFORMED SUBMISSION TYPE:	F-7
PUBLIC DOCUMENT COUNT:		5
FILED AS OF DATE:		20090429
DATE AS OF CHANGE:		20090429
EFFECTIVENESS DATE:		20090429

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-7
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-158888
		FILM NUMBER:		09779044

	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-7
<SEQUENCE>1
<FILENAME>h66553fv7.htm
<DESCRIPTION>FORM F-7
<TEXT>
<HTML>
<HEAD>
<TITLE>fv7</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<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="31%"></TD>
    <TD width="3%"></TD>
    <TD width="31%"></TD>
    <TD width="3%"></TD>
    <TD width="31%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="white-space: nowrap"><B>As filed with
the Securities and Exchange Commission on April&nbsp;29, 2009</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Registration No.&nbsp;333-</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</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"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

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

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM F-7</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"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</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"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</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 <BR>
incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Primary Standard Industrial<BR>
Classification Code Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer Identification Number)</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>
<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"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</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="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>David W. Wehlmann</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Robert F. Gray, Jr.</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>William S. Osler</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Precision Drilling Trust
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>William S. Moss III</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Bennett Jones LLP</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">10370 Richmond Avenue,
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Mayer Brown LLP
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">4500 Bankers Hall East</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Suite&nbsp;600
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">700 Louisiana Street, Suite&nbsp;3400
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">855 2nd Street SW</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Houston, Texas 77042
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Houston, Texas 77002
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Calgary, Alberta, Canada</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(713) 435-6100
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(713) 238-3000
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">T2P 4K7</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Fax: (713)&nbsp;435-6171
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Fax: (713)&nbsp;238-4600
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(403) 298-3100</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Fax: (403)&nbsp;265-7219</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This registration statement and any amendment thereto shall become effective upon filing with
the Commission in accordance with Rule&nbsp;467(a).
</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">&#111;</FONT>
</DIV>
<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</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="22%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="29%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&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 solid #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 nowrap align="center"><B>Title of each class of</B></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>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">34,441,950</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">CDN
$3.00</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">CDN $103,325,849.14</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">$4,727.78</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 solid #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.</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$103,325,849.14 at an exchange rate of
Cdn$.82 per U.S.$1.00.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, as a result of stock splits, stock dividends or similar transactions, the number of
securities purported to be registered on this registration statement changes, the provisions of
Rule&nbsp;416 shall apply to this registration statement.
</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 -->&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">

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




<!-- link1 "PART I INFORMATION REQUIRED TO BE SENT TO UNITHOLDERS" -->

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


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INFORMATION REQUIRED TO BE SENT TO UNITHOLDERS</B>

</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="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><FONT style="font-family: 'Times New Roman', Times">THIS
    DOCUMENT IS IMPORTANT AND REQUIRES YOU TO MAKE A DECISION PRIOR
    TO 4:30&#160;P.M. (CALGARY TIME) ON JUNE&nbsp;3, 2009. IF YOU ARE IN
    DOUBT AS TO HOW TO DEAL WITH IT, YOU SHOULD CONSULT YOUR
    INVESTMENT DEALER, STOCKBROKER, BANK MANAGER OR OTHER
    PROFESSIONAL ADVISOR.</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">
    <I>This offering of securities is made in all provinces and
    territories of Canada, in those states in the United States
    where an exemption from the applicable state securities laws is
    immediately available and in all jurisdictions (the
    <B>&#147;Offshore Jurisdictions&#148;) </B>outside Canada and
    the United States excluding any jurisdiction that does not
    provide a rights offering prospectus exemption substantially
    similar to the exemption provided in Canada or that otherwise
    requires obtaining any approvals of a regulatory authority in
    the Offshore Jurisdiction or the filing of any documents by
    Precision Drilling Trust (the <B>&#147;Trust&#148;) </B>in the
    Offshore Jurisdiction in connection with this offering. No
    securities commission or similar authority in Canada has in any
    way passed upon the merits of the securities offered hereunder
    and any representation to the contrary is an offense. This
    offering is not, and under no circumstances is to be construed
    as, an offering of any securities for sale in, or to any
    resident of, any other jurisdiction or a solicitation therein of
    any offer to buy any securities of Precision Drilling Trust.</I>
</DIV>

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

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">
<B><FONT style="font-family: 'Times New Roman', Times">Amended and
Restated Rights
    Offering Circular</FONT></B></TD>
    <TD nowrap align="right">    <FONT style="font-family: 'Times New Roman', Times">
    <B>April&#160;27, 2009</B>
    </FONT></TD>
</TR>

</TABLE>

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

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="h66553h6655300.gif" alt="(Precision Drilling logo graphic)">
</DIV>

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

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="h66553h6655303.gif" alt="(Precision Drilling logo lettering)">
</DIV>

<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">Offering
    of Rights to Subscribe for Trust&#160;Units</FONT></B>
</DIV>

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

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="35%"></TD>
    <TD width="1%"></TD>
    <TD width="64%"></TD>
</TR>

<TR>
    <TD valign="top">
    Entitlement to Rights: </TD>
    <TD></TD>
    <TD valign="bottom">
    One right (a <B>&#147;Right&#148;</B>) for each trust unit of
    the Trust (<B>&#147;Trust Units</B>&#148;) held on the Record
    Date (as defined herein) and 128,562 Rights to Computershare
    Trust Company of Canada (<B>&#147;Computershare&#148;</B> or the
    <B>&#147;Trustee&#148;</B>), registrar and transfer agent for
    the Trust Units and holder of the special voting unit (the
    <B>&#147;Special Voting Unit&#148;</B>) of the Trust as trustee
    under the Voting and Exchange Trust Agreement dated May 7, 2005
    (the <B>&#147;Voting and Exchange Trust Agreement&#148;</B>)
    between the Trust, Precision Drilling Limited Partnership
    (<B>&#147;PDLP&#148;</B>) and the Trustee, for the benefit of
    the holders of the 128,562 issued and outstanding Class B
    Limited Partnership Units (<B>&#147;Exchangeable
    Units&#148;</B>) of PDLP which are exchangeable into Trust Units
    on a one for one basis and are the economic equivalent of Trust
    Units. The Trustee will transfer the Rights it receives from the
    Trust to the holders of Exchangeable Units (the
    <B>&#147;Exchangeable Unitholders&#148;</B>) on the basis of one
    Right for each Exchangeable Unit held. Based on the number of
    issued and outstanding Trust Units and Exchangeable Units on the
    date of this Rights Offering Circular, 241,093,648 Rights will
    be issued under the Rights Offering.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Subscription Price: </TD>
    <TD></TD>
    <TD valign="bottom">
    $3.00 per Trust&#160;Unit (the <B>&#147;Subscription
    Price&#148;</B>).</TD>
</TR>


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

<TR>
    <TD valign="top">
    Basic Subscription Privilege: </TD>
    <TD></TD>
    <TD valign="bottom">
    Seven Rights will entitle the holder to subscribe for one Trust
    Unit at a price of $3.00, which is a price equal to
    approximately 61% of the weighted average closing price for the
    Trust Units on the Toronto Stock Exchange (the
    <B>&#147;TSX&#148;</B>) for the five trading days immediately
    prior to the date hereof.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Additional Subscription<BR>
    Privilege: </TD>
    <TD></TD>
    <TD valign="bottom">
    Holders who exercise their Rights in full are entitled to
    subscribe for additional Trust Units, if available, at the
    Subscription Price.</TD>
</TR>

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

<TR>
    <TD valign="top">
    Record Date: </TD>
    <TD></TD>
    <TD valign="bottom">
    May&#160;5, 2009</TD>
</TR>

</TABLE>

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

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="35%"></TD>
    <TD width="1%"></TD>
    <TD width="64%"></TD>
</TR>

<TR>
    <TD valign="top">
    Rights Expiry Time: </TD>
    <TD></TD>
    <TD valign="bottom">
    June&nbsp;3, 2009 at 4:30&#160;P.M. Calgary time (the
    <B>&#147;Rights Expiry Time&#148;</B>).</TD>
</TR>


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

<TR>
    <TD valign="top">
    Maximum Trust&#160;Units Issuable: </TD>
    <TD></TD>
    <TD valign="bottom">
    A maximum of 34,441,950 Trust&#160;Units will be issuable
    pursuant to the Rights Offering, representing approximately
    14.3% of the issued and outstanding Trust&#160;Units on the date
    hereof.</TD>
</TR>


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

<TR>
    <TD valign="top">
    Maximum Net Proceeds: </TD>
    <TD></TD>
    <TD valign="bottom">
    The Rights Offering will result in maximum net proceeds of
    approximately $103,125,850 from the sale of the
    Trust&#160;Units, after deducting estimated expenses of this
    Rights Offering of approximately $200,000.</TD>
</TR>


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

<TR>
    <TD valign="top">
    Minimum Proceeds: </TD>
    <TD></TD>
    <TD valign="bottom">
    The completion of the Rights Offering is not conditional upon
    the Trust receiving any minimum amount of subscriptions from
    holders of Rights.</TD>
</TR>


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

<TR>
    <TD valign="top">
    Listing: </TD>
    <TD></TD>
    <TD valign="bottom">
    The Rights and the Trust&#160;Units issuable on exercise of the
    Rights will be listed for trading on the TSX and the New York
    Stock Exchange (<B>&#147;NYSE&#148;</B>).</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In this Rights Offering Circular, all references to
    &#147;$&#148; are to Canadian dollars unless otherwise noted.
</DIV>

<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>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An investment in Trust&#160;Units should be considered
    speculative due to the nature of the Trust&#146;s business. See
    &#147;<I>Risk&#160;Factors</I>&#148; for certain considerations
    relevant to an investment in Trust&#160;Units.
</DIV>

<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>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This document contains certain forward-looking information and
    statements, including statements relating to matters that are
    not historical facts and statements of the Trust, beliefs,
    intentions and expectations about developments, results and
    events which will or may occur in the future, which 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 <I>United States
    Private Securities Litigation Reform Act of 1995</I>
    (collectively the &#147;forward-looking information and
    statements&#148;). Forward-looking information and statements
    are typically identified by words such as
    &#147;anticipate&#148;, &#147;could&#148;, &#147;should&#148;,
    &#147;expect&#148;, &#147;seek&#148;, &#147;may&#148;,
    &#147;intend&#148;, &#147;likely&#148;, &#147;will&#148;,
    &#147;plan&#148;, &#147;estimate&#148;, &#147;believe&#148; and
    similar expressions suggesting future outcomes or statements
    regarding an outlook.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Forward-looking information and statements are included
    throughout this document and include, but are not limited to,
    statements with respect to: the successful completion of the
    Rights Offering and the use of proceeds therefrom; performance
    of the oil and natural gas industry, including oil and natural
    gas commodity prices and supply and demand; demand for and
    status of drilling rigs and other equipment in the oil and
    natural gas industry; the Trust&#146;s business strategy,
    including the 2009 strategy and outlook for its business
    segments; the size and capabilities of the Trust&#146;s drilling
    and service rig fleet, its market share and position in the
    markets in which it operates; the integration of Precision (as
    defined herein) and Grey Wolf (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; demand
    for the Trust&#146;s products and services; financing strategy
    and compliance with debt covenants; expected results of cash
    conservation measures; credit risks; and other such matters.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All such forward-looking information and statements are based on
    certain assumptions and analyses made by the Trust in light of
    its experience and perception of historical trends, current
    conditions and expected future developments, as well as other
    factors the Trust believes are appropriate in the circumstances.
    These statements are, however, subject to known and unknown
    risks and uncertainties and other factors. As a result, actual
    results, performance or achievements could differ materially
    from those expressed in, or implied by, these forward-looking
    information and statements and, accordingly, no assurance can be
    given that any of the events anticipated by the forward-looking
    information and statements will transpire or occur, or if any of
    them do so, what benefits will be derived therefrom. These
    risks, uncertainties and other factors include, among others:
    the impact of general economic conditions in Canada and the
    United States; the availability of credit and equity globally to
    both Precision and the oil and gas companies that are its
    customers; industry conditions, including capital spending
    decisions, priority placed on high-performance rigs, the
    adoption of new environmental, taxation and other laws and
    regulations and changes in how they are interpreted and
    enforced; fluctuation in the demand for well servicing, contract
    drilling and ancillary oilfield services; the existence of
    operating risks inherent in well servicing, contract drilling
    and ancillary oilfield services; the volatility of oil and
    natural gas prices; oil and natural gas product supply and
    demand; risks inherent in the ability to generate sufficient
    cash flow from operations to meet current and future
    obligations; increased competition; sufficiency of funds for
    required capital
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</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 align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    expenditures, working capital and debt service; the failure to
    realize anticipated synergies in the Acquisition (as defined
    herein); the adequacy of sources of liquidity; the loss of
    &#147;mutual fund trust&#148; status; the effect of the Canadian
    federal government&#146;s SIFT Rules (as defined herein); the
    conversion of the Trust into a corporate structure and other
    unforeseen conditions which could impact the use of services
    supplied by Precision; fluctuations in interest rates and
    currency exchange rates; stock market volatility; and other
    factors, many of which are beyond the Trust&#146;s control.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although management of the Trust believes that the expectations
    reflected in such forward looking information and statements are
    reasonable, it can give no assurance that such expectations will
    prove to have been correct. Accordingly, readers should not
    place undue reliance upon any of the forward looking information
    and statements set out in this document. All of the forward
    looking information and statements of the Trust contained in
    this document are expressly qualified, in their entirety, by
    this cautionary statement. The various risks to which the Trust
    is exposed are described in additional detail in this document
    under the heading &#147;<I>Risk Factors</I>&#148;. The forward
    looking information and statements are made as of the date of
    this document, and the Trust assumes no obligation to update or
    revise them except as required pursuant to applicable securities
    laws.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</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 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 align="left">
<!-- TOC -->
</DIV>

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

<DIV style="margin-top: 12pt; 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="95%">&nbsp;</TD> <!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>  <!-- colindex=02 type=gutter -->
    <TD width="4%">&nbsp;</TD>  <!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'><B>PRECISION DRILLING TRUST</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>5</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'><B>BUSINESS OF PRECISION</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>6</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'><B>DETAILS OF THE RIGHTS OFFERING</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>10</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'><B>INTENTION OF INSIDERS TO EXERCISE
    RIGHTS</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>15</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'><B>USE OF PROCEEDS</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>15</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'><B>CERTAIN CANADIAN FEDERAL INCOME TAX
    CONSIDERATIONS</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>15</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'><B>CERTAIN UNITED STATES FEDERAL INCOME TAX
    CONSIDERATIONS</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>18</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'><B>ELIGIBILITY FOR INVESTMENT</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>21</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'><B>DESCRIPTION OF THE TRUST&#160;UNITS</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>21</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'><B>PRINCIPAL UNITHOLDERS</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>25</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'><B>CHANGES OF OWNERSHIP</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>26</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'><B>STATEMENT AS TO RESALE RESTRICTIONS</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>26</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'><B>RISK FACTORS</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>26</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'><B>INQUIRIES</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>40</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#115'><B>ADDITIONAL INFORMATION</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>40 </B>
</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="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</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='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">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: 4%; 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 <B>&#147;Declaration of Trust&#148;</B>). The head
    office and principal place of business of the Trust is located
    at Suite&#160;4200, 150&#160;&#151;
    6<SUP style="font-size: 85%; vertical-align: top">th</SUP>

    Avenue S.W., Calgary, Alberta, T2P&#160;3Y7.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to a reorganization of the former Precision Drilling
    Corporation <B>(&#147;Precision&#148;)</B> into a &#147;mutual
    fund trust&#148; for purposes of the <I>Income Tax Act</I>
    (Canada), as amended from time to time (the <B>&#147;Tax
    Act&#148;</B>), the Trust issued Trust&#160;Units to certain
    former shareholders of Precision in exchange for such
    holders&#146; common shares pursuant to a plan of arrangement
    which was approved by the former shareholders of Precision at a
    special meeting held on October&#160;31, 2005 (the <B>&#147;Plan
    of Arrangement&#148;</B>).
</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">Organizational
    Structure of the Trust</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following diagram sets forth the organizational structure of
    the Trust and its material subsidiaries as of the date hereof:
</DIV>

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

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="h66553h6655301.gif" alt="(CHART)">
</DIV>

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

<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: 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">    As of March&#160;31, 2009, there were 206,065,086 PDLP A Units
    (as defined herein) outstanding.
</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">    As of March&#160;31, 2009, there were 128,562 Exchangeable Units
    outstanding.
</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 interest of 1194312 Alberta Ltd. in PDLP (as defined herein)
    is 0.001%.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</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='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">BUSINESS
    OF 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%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The beneficiaries of the Trust are the holders of
    Trust&#160;Units <B>(&#147;Unitholders&#148;</B>). The
    Trust&#146;s principal undertaking is to issue Trust&#160;Units
    and to indirectly carry on the business of the provision of
    land-based contract drilling, well servicing and ancillary
    oilfield services to oil and gas exploration and production
    companies through its direct and indirect subsidiaries. This
    business is carried out in two segments, Contract Drilling
    Services and Completion and Production Services.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 has a high quality fleet
    consisting of 374 drilling rigs, 229 service rigs and 29
    snubbing units 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 Canadian and United States customer base, deep drilling
    capabilities and positions in Canadian and United States
    sedimentary basins, provide it with a substantial foundation for
    expansion, both in North America and internationally. Precision
    presently offers its customers a complementary suite of wellsite
    products and services including camp and catering, wastewater
    treatment and rental equipment. Most of these complementary
    operations and the service rig business are located in Canada.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In Canada, the Contract Drilling Services segment includes land
    drilling services, camp and catering services, procurement and
    distribution of oilfield supplies and the manufacture and
    refurbishment of drilling and service rig equipment, and the
    Completion and Production Services segment includes 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. In the United States, the Contract Drilling
    Services segment includes land drilling services and trucking
    services for the movement of Precision rigs. Internationally,
    the Contract Drilling Services segment includes land drilling
    services. As at December&#160;31, 2008, Precision had over 7,200
    employees.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision&#146;s revenue by business segment from continuing
    operations is illustrated in the following table:
</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">(in
    thousands of Canadian dollars)</FONT></I></B>
</DIV>

<DIV style="margin-top: 9pt; 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="65%">&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="7%" 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="7%" 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 -->
</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>Years ended December 31,</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B><SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</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>2006</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">
    Contract Drilling Services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    809,317
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    694,340
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,009,821
</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">
    Completion and Production Services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    308,624
</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">
    327,471
</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">
    441,017
</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">
    Inter-segment Eliminations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (16,050
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12,610
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,254
</TD>
<TD nowrap align="left" valign="bottom">
    )
</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 style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Total Revenue</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,101,891
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,009,201
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,437,584
</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=480 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">
    Includes Precision Drilling Oilfield Services Corporation
    <B>(&#147;PDOS&#148;</B>) revenue for the eight day period from
    December&#160;23, 2008 through December&#160;31, 2008.
</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><FONT style="font-family: 'Times New Roman', Times">Precision
    Drilling Limited Partnership</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    PDLP is a limited partnership formed pursuant to the laws of the
    Province of Manitoba pursuant to a limited partnership agreement
    dated as of September&#160;28, 2005 (the <B>&#147;Limited
    Partnership Agreement&#148;</B>). The Trust holds a 99.91%
    partnership interest in PDLP through its holding of Class&#160;A
    Limited Partnership Units (the <B>&#147;PDLP A Units&#148;</B>)
    and the remaining 0.09% limited partnership interest in PDLP is
    held by former shareholders of Precision who elected to receive
    Exchangeable Units which are exchangeable into Trust&#160;Units
    on a one for one basis and are the economic equivalent of
    Trust&#160;Units. The general partner of PDLP is 1194312 Alberta
    Ltd. (the <B>&#147;General Partner&#148;</B>) which holds a
    nominal (0.001%) interest in PDLP.
</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">Precision
    Drilling Corporation</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Precision was originally incorporated on March&#160;25, 1985 and
    carried out amalgamations with wholly owned subsidiary companies
    on January&#160;1, 2000, January&#160;1, 2002 and
    January&#160;1, 2004 pursuant to articles of amalgamation and
    the <I>Business Corporations Act</I> (Alberta). On
    November&#160;7, 2005, Precision became a wholly owned
    subsidiary of PDLP. As part of the Plan of Arrangement,
    Precision amalgamated with a number of its wholly owned
    subsidiaries: 1195309 Alberta ULC on November&#160;23, 2005;
    Live Well Service Ltd. on January&#160;1, 2006; and Terra Water
    Group Ltd. on January&#160;1, 2007. In each amalgamation, the
    name of the amalgamated company remained &#147;Precision
    Drilling Corporation&#148;.
</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 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">Administration
    Agreement</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust and Precision are parties to an administration
    agreement entered into on November&#160;7, 2005 (the
    <B>&#147;Administration Agreement&#148;</B>). Under the terms of
    the Administration Agreement, Precision provides administrative
    and support services to the Trust including, without limitation,
    those necessary to:
</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="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    ensure compliance by the Trust with continuous disclosure
    obligations under applicable securities legislation;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    provide investor relations 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    provide or cause to be provided to Unitholders all information
    to which such Unitholders are entitled under the Declaration of
    Trust, including relevant information with respect to financial
    reporting and income taxes;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    call and hold meetings of Unitholders and distribute required
    materials, including notices of meetings and information
    circulars, in respect of all such meetings;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    assist the board of trustees of the Trust (the <B>&#147;Board of
    Trustees&#148;</B> and each member thereof, a
    <B>&#147;Trustee&#148;)</B> in calculating distributions to
    Unitholders; 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    generally provide all other services as may be necessary or as
    may be requested by the Board of Trustees.
</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><FONT style="font-family: 'Times New Roman', Times">The
    Acquisition</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On December&#160;23, 2008, the Trust completed the indirect
    acquisition of Grey Wolf, Inc. (<B>&#147;Grey Wolf&#148;)</B>
    (the <B>&#147;Acquisition&#148;)</B> pursuant to an agreement
    and plan of merger dated August&#160;24, 2008, as amended
    December&#160;2, 2008, with Grey Wolf, Precision and Precision
    Lobos Corporation <B>(&#147;Lobos&#148;</B> a subsidiary of the
    Trust). Pursuant to the Acquisition, Grey Wolf was merged with
    and into Lobos 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,
    which was subsequently renamed &#147;Precision Drilling Oilfield
    Services Corporation&#148;, became the surviving corporation.
</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">Material
    Debt</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the Acquisition, Precision entered into a new
    US$1.2&#160;billion senior secured credit facility (the
    <B>&#147;Secured Facility&#148;)</B> with a syndicate of lenders
    consisting of the 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 (the <B>&#147;Commitment
    Banks&#148;),</B> and certain other lenders, that is guaranteed
    by the Trust and is comprised of US$800&#160;million of term
    loans and a US$400&#160;million revolving credit facility and
    also entered into a US$400&#160;million unsecured credit
    facility (sometimes referred to as a bridge loan) with certain
    of the Commitment Banks (the <B>&#147;Unsecured
    Facility&#148;</B> and, together with the Secured Facility, the
    <B>&#147;Credit Facilities&#148;)</B> that is also guaranteed by
    the Trust. The Credit Facilities funded the cash portion of the
    purchase price of the Acquisition and refinanced the pre-closing
    Precision bank debt and certain pre-closing debt obligations of
    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">Secured
    Facility</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As at March&#160;31, 2009, Precision had borrowed approximately
    US$326&#160;million (Cdn$411&#160;million) under the term loan A
    facility (the <B>&#147;Term Loan A Facility&#148;),</B>
    approximately US$463&#160;million (Cdn$584&#160;million) under
    the term loan B facility (the <B>&#147;Term Loan B
    Facility&#148;)</B> and approximately US$87&#160;million
    (Cdn$110&#160;million) under the revolving credit facility (the
    <B>&#147;Revolving Credit Facility&#148;).</B> 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="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a blended effective interest rate, as at March&#160;31, 2009, of
    approximately 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>&nbsp;</TD>
    <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>&nbsp;</TD>
    <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; 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>&nbsp;</TD>
    <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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, up to US$200&#160;million of the Revolving Credit
    Facility is available for letters of credit in U.S. dollars
    and/or Canadian dollars.
</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 -->

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Secured Facility contains a number of affirmative covenants
    as well as 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:
    (i)&#160;incur additional indebtedness; (ii)&#160;sell assets;
    (iii)&#160;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; (iv)&#160;make investments or acquisitions;
    (v)&#160;incur liens on their assets; (vi)&#160;enter into
    mergers, consolidations or amalgamations; and (vii)&#160;make
    capital expenditures. The Secured Facility also requires the
    Trust and Precision to comply with the following financial
    ratios:
</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="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a maximum total leverage ratio of 3.00 to 1.00 as at the last
    day of any period of four consecutive fiscal quarters of the
    Trust beginning March&#160;31, 2009;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a minimum interest coverage ratio of 3.00 to 1.00 for any period
    of four consecutive fiscal quarters of the Trust beginning
    March&#160;31, 2009; 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a minimum fixed charge coverage ratio for any period of four
    consecutive fiscal quarters of the Trust beginning
    March&#160;31, 2009 of: (i)&#160;for any such period ending on
    or prior to December&#160;31, 2010, 1.00 to 1.00; and
    (ii)&#160;for any such period ending after December&#160;31,
    2010, 1.05 to 1.00.
</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: 4%; 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. 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, 10%
    of the original principal amount thereof 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Term Loan B Facility is 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: 4%; 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 <B>&#147;Subsidiary
    Guarantors&#148;)</B> 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: 4%; 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
    June&#160;10, 2009 (extended from March&#160;23, 2009)&#160;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 and/or upfront fees, reallocate within the term loans
    comprising the Secured Facility and amend certain covenants,
    financial ratio tests and other provisions for portions of the
    Secured Facility. It is anticipated that the Secured Facility
    will be successfully syndicated upon completion of the Rights
    Offering, primarily through the repayment and reduction of the
    Revolving Credit Facility and adjustments to the loan
    commitments of certain of the lenders under the Secured Facility.
</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">Unsecured
    Facility</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Approximately US$7.8&#160;million remains outstanding under the
    Unsecured Facility following the repayment of substantially all
    of the borrowings under the Unsecured Facility with the proceeds
    received by the Trust and Precision pursuant to the private
    placement described below under the heading <I>&#147;Private
    Placement&#148;.</I> The remaining amount outstanding under the
    Unsecured Facility is intended to be repaid with the proceeds of
    the Rights Offering. The loans under the Unsecured 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 Unsecured Facility or the Secured Facility or certain
    other conditions are not satisfied. The Unsecured Facility has
    been guaranteed by the Trust and each subsidiary of the Trust
    that guaranteed the Secured Facility. The Unsecured Facility
    contains a number of covenants
</DIV>

<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 align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    that, among other things, restrict, subject to certain
    exceptions, the Trust&#146;s, Precision&#146;s and their
    subsidiaries&#146; ability to: (i)&#160;incur additional
    indebtedness; (ii)&#160;sell assets; (iii)&#160;incur liens on
    their assets; and (iv)&#160;enter into mergers, consolidations
    or amalgamations. The Unsecured Facility also contains customary
    affirmative covenants and events of default, including customary
    cross payment defaults.
</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">Recent
    Developments</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="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Within the Secured Facility, US$69&#160;million
    (US$64&#160;million on February&#160;4, 2009 and
    US$5&#160;million on March&#160;26, 2009)&#160;has been
    reallocated from the Term Loan A Facility to the Term Loan B
    Facility. See <I>&#147;Business of Precision&#160;&#151;
    Material Debt&#148;.</I>
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    As at March&#160;20, 2009, holders of convertible notes of Grey
    Wolf representing US$262.3&#160;million notified the Trust that
    they would be accepting the purchase offer made pursuant to the
    terms thereof and PDOS purchased such notes at the principal
    balance plus accrued interest of US$2.3&#160;million on
    March&#160;24, 2009.
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    On February&#160;19, 2009, the Trust announced that Precision
    had postponed its previously announced offering of
    US$250&#160;million principal amount of senior notes due 2015
    due to unfavourable market conditions.
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    On February&#160;18, 2009, the Trust closed an offering of
    46&#160;million Trust&#160;Units at a price of US$3.75 per
    Trust&#160;Unit for aggregate gross proceeds of
    US$172.5&#160;million (the <B>&#147;Trust&#160;Unit
    Offering&#148;).</B> As a result of the Trust&#160;Unit
    Offering, the funds available under the Unsecured Facility were
    reduced to US$235&#160;million.
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    On February&#160;9, 2009, the Trust announced the suspension of
    cash distributions for an indefinite period. The suspension was
    taken in response to lower financial operating performance at
    the start of 2009 and will allow the Trust to increase debt
    repayment capability and balance sheet strength.
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Precision has experienced a reduction in the demand for its
    services in late 2008 and early 2009 in correlation with the
    significant downward trend in oil and natural gas prices over
    the same period. The following table summarizes the active
    land-based drilling rigs of Precision and the drilling industry
    as a whole in Canada and the United States as at the dates
    indicated:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 9pt; 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="60%">&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="6%" 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="5%" 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="5%" 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="5%" align="right">&nbsp;</TD>    <!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As at December 31, 2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As at March 31,2009</B>
</TD>
<TD>
&nbsp;
</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" style="border-bottom: 1px solid #000000">
    <B>Industry
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Precision<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Industry<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Precision<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></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 nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Canada
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    277
</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">
    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">
    96
</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">
    32
</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">
    United States
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,721
</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">
    115
</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">
    991
</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">
    63
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</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 style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,998
</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">
    176
</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">
    1087
</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">
    95
</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=480 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: 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">    Source: Canada&#160;&#151; Canadian Association of Oilwell
    Drilling Contractors (<B>&#147;CAODC&#148;</B>); United
    States&#160;&#151; Baker Hughes, Inc.
</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">    Does not include Precision&#146;s idle but contracted drilling
    rigs or Precision&#146;s two active drilling rigs in Mexico.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Management of the Trust believes that Precision will be able to
    meet its debt obligations under the Credit Facilities
    notwithstanding the current and anticipated near-term decline in
    drilling and well servicing activity.
</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="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    On January&#160;2, 2009, Precision transferred substantially all
    of the assets of its Precision Drilling, Rostel Industries and
    Columbia Oilfield Supply divisions to Precision Drilling Canada
    Limited Partnership <B>(&#147;PDCLP&#148;)</B> in consideration
    for 100% of the limited partnership interests in PDCLP. PDCLP
    carries on Precision&#146;s Contract Drilling Services business.
</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><FONT style="font-family: 'Times New Roman', Times">Private
    Placement</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;22, 2009, the Trust completed a private placement
    of 35,000,000 Trust&#160;Units at a price of $3.00 per
    Trust&#160;Unit and warrants to acquire 15,000,000
    Trust&#160;Units at an exercise price of $3.22 per
    Trust&#160;Unit (the <B>&#147;Warrants&#148;</B>) for aggregate
    proceeds of approximately $105&#160;million (the
    <B>&#147;Private Placement&#148;</B>). In addition, Precision
    completed a private placement of $175,000,000 principal amount
    of 10% senior unsecured notes (the <B>&#147;Senior</B>
    Notes&#148;). The purchaser of the Trust&#160;Units, Warrants
    and Senior Notes was Her Majesty the Queen in Right of the
    Province of Alberta (the <B>&#147;Private Placement
    Investor&#148;</B>), as represented by Alberta Investment
    Management Corporation. The proceeds from the issuance of the
    Trust&#160;Units, Warrants and Senior Notes were used to reduce
    the obligations of Precision under the Unsecured Facility.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Warrants have a five-year term and, if exercised in full,
    will provide the Trust with additional subscription proceeds of
    approximately $48.3&#160;million.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</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>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Senior Notes have an eight-year term, with one-third of the
    initial outstanding principal amount payable on each of the
    6<SUP style="font-size: 85%; vertical-align: top">th</SUP>,

    7<SUP style="font-size: 85%; vertical-align: top">th</SUP> and

    8<SUP style="font-size: 85%; vertical-align: top">th</SUP>

    anniversaries of the closing date of the private placement.
    Interest on the Senior Notes is 10% per annum, payable quarterly
    in arrears, provided that Precision is able, in certain
    circumstances, to defer the payment of that interest for as much
    as two years, in which case the interest rate is increased to
    12% and interest becomes payable on both the principal amount of
    the Senior Notes and the amount of the deferred interest, until
    the deferred interest is paid in full. The Senior Notes are
    unsecured and have been guaranteed by the Trust and each
    subsidiary of the Trust that guaranteed the Secured Facility.
    The terms of the Senior Notes contain 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: (i)&#160;incur additional
    indebtedness; (ii)&#160;sell assets; (iii)&#160;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; (iv)&#160;make
    investments or acquisitions; (v)&#160;incur liens on their
    assets; (vi)&#160;enter into mergers, consolidations or
    amalgamations; and (vii)&#160;make capital expenditures. The
    Senior Notes also contain customary affirmative covenants and
    events of default. Finally, the terms of the Senior Notes also
    require Precision to use a specified percentage of excess cash
    flow to repay indebtedness under the Secured Facility in
    circumstances where the Trust&#146;s consolidated debt to
    capitalization ratio (following the conversion of the Trust to a
    corporation) as at the last day of any fiscal year is in excess
    of 0.30 to 1.00, in addition to the prepayments from excess cash
    flow required to be made under the Secured Facility.
</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">DETAILS
    OF THE RIGHTS OFFERING</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">Issue of
    Rights</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each Unitholder of record at the close of business on
    May&#160;5, 2009 (the <B>&#147;Record Date&#148;</B>) is
    entitled to receive one Right for each Trust&#160;Unit held. In
    addition, 128,562 Rights will be provided to the Trustee as
    holder of the Special Voting Unit under the Voting and Exchange
    Trust&#160;Agreement for the benefit of the holders of the
    128,562 issued and outstanding Exchangeable Units of PDLP which
    are exchangeable into Trust&#160;Units on a one for one basis
    and are the economic equivalent of Trust&#160;Units. The Trustee
    will transfer the Rights it receives from the Trust to the
    holders of Exchangeable Units on the basis of one Right for each
    Exchangeable Unit held. Seven Rights confer the right to
    subscribe for one Trust&#160;Unit (the <B>&#147;Basic
    Subscription Privilege&#148;</B>) at the price of $3.00 per
    Trust&#160;Unit (the <B>&#147;Subscription Price&#148;</B>). The
    Subscription Price represents a price equal to approximately 61%
    of the weighted average closing price for the Trust&#160;Units
    on the TSX for the five trading days immediately prior to the
    date hereof. No fractional units will be issued. The
    subscription by any holder exercising a number of Rights not
    evenly divisible by seven will be rounded down to the next whole
    number of 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The offering price for the Rights was determined by the Board of
    Trustees having regard for regulatory requirements, and to
    issues such as dilution, market price, market forces, and the
    capital requirements of the Trust. The subscription for
    Trust&#160;Units upon the exercise of Rights is voluntary.
    Holders of Rights should consult their own advisers with respect
    to this Rights Offering.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Private Placement Investor has agreed to: (i)&#160;exercise
    all of the rights it receives under the Rights Offering in
    respect of the Trust&#160;Units that it acquired pursuant to the
    Private Placement; and (ii)&#160;to use reasonable commercial
    efforts to exercise any additional subscription privilege that
    may be available to it under the Rights Offering with a view to
    acquiring up to an additional 1,666,667 Trust&#160;Units. See
    <I>&#147;Business of the Trust&#160;&#151; Private
    Placement&#148;.</I>
</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">Rights
    Certificates</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Rights are evidenced by transferable certificates in the
    form approved by the Trust and Computershare (the
    <B>&#147;Rights Certificates&#148;</B>). A Rights Certificate is
    being sent to each registered Unitholder and, through the
    Trustee, each Exchangeable Unitholder, of record as of the
    Record Date. A register of holders of Rights Certificates will
    be maintained by Computershare. The Rights are listed on the TSX
    under the trading symbol &#147;PD.RT&#148; and on the NYSE under
    the trading symbol &#147;PDS RT&#148; and the Trust&#160;Units
    underlying the Rights are listed on the TSX under the symbol
    &#147;PD.UN&#148; and on the NYSE under the symbol
    &#147;PDS&#148;. If a Rights Certificate is lost, stolen or
    destroyed, a replacement Rights Certificate shall be issued only
    upon compliance with applicable statutory requirements and any
    other reasonable requirements imposed by the Trust or
    Computershare. Computershare should be contacted at the
    subscription office listed below under <I>&#147;Transmittal of
    Rights Certificates&#148;</I> in the event of the loss, theft or
    destruction of a Rights Certificate.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A holder of a Rights Certificate does not constitute the holder
    of a Trust&#160;Unit.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</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 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">Rights
    Expiry Time</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Rights Offering and the Rights evidenced by the Rights
    Certificates will expire at the Rights Expiry Time. The Trust
    reserves the right to extend the period of this Rights Offering,
    subject to obtaining any required regulatory approvals, if the
    Trust determines that the timely exercise of the Rights may have
    been prejudiced due to any disruption in postal service.
    <B>Rights not exercised by the Rights Expiry Time will be void
    and without value.</B>
</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">Basic
    Subscription Privilege</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Rights may be exercised by completing and signing Form&#160;1
    attached to each Rights Certificate. The holder of Rights (a
    <B>&#147;Subscriber&#148;</B>) or registered dealer representing
    such Subscriber must deliver or mail the Rights Certificate,
    with the total Subscription Price, to Computershare as specified
    below under <I>&#147;Transmittal of Rights
    Certificates&#148;.</I> Subscriptions may not be revoked after
    delivery to Computershare. The total Subscription Price must be
    paid in the manner described below under <I>&#147;Payment of
    Subscription Price&#148;. </I><B>Subscribers whose Rights are
    held by a registered dealer should contact such dealer in ample
    time to ensure that the completed Rights Certificates and the
    related payments are received by Computershare before the Rights
    Expiry Time.</B>
</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">Any
    Unitholder, Exchangeable Unitholder or transferee of a Rights
    Certificate who has any questions concerning the terms of this
    Rights Offering should contact their investment dealer,
    stockbroker, bank manager or other professional
    advisor.</FONT></B>
</DIV>

<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><FONT style="font-family: 'Times New Roman', Times">Additional
    Subscription Privilege</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Any holder of a Rights Certificate who exercises the right to
    subscribe for all the Trust&#160;Units that can be subscribed
    for with the Rights evidenced by such certificate pursuant to
    the Basic Subscription Privilege, also has the right (the
    &#147;Additional Subscription Privilege&#148;) of subscribing
    for additional Trust&#160;Units, if available, at the
    Subscription Price. The Trust&#160;Units available for such
    purpose (the &#147;Remaining Trust&#160;Units&#148;) will be
    those Trust&#160;Units that have not been subscribed and paid
    for pursuant to outstanding Rights by the Rights Expiry Time.</B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To exercise the Additional Subscription Privilege, any holder of
    a Rights Certificate who completes Form&#160;1 on the face of
    the Rights Certificate for the maximum number of whole
    Trust&#160;Units that can be subscribed for given the number of
    Rights evidenced by such certificate, must also complete
    Form&#160;2 on the face of the Rights Certificate and specify
    the number of additional Trust&#160;Units desired to be
    subscribed for. When the Subscriber or registered dealer
    representing a Subscriber delivers to Computershare the
    completed Rights Certificate and payment for the
    Trust&#160;Units initially subscribed for under Form&#160;1,
    payment in the manner described below under &#147;<I>Payment of
    Subscription Price</I>&#148; must also be enclosed for the
    additional Trust&#160;Units subscribed for under Form&#160;2,
    failing which such additional subscription shall be invalid.
    Funds received as payment of the Subscription Price for
    subscriptions made under the Additional Subscription Privilege
    will be placed in a segregated account with Computershare
    pending allocation of any Remaining Trust&#160;Units pursuant to
    the Additional Subscription Privilege.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If there are sufficient Remaining Trust&#160;Units to satisfy
    all additional subscriptions by participants in the Additional
    Subscription Privilege, each participant will be allotted the
    number of additional Trust&#160;Units for which they have
    subscribed.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the aggregate number of Trust&#160;Units subscribed for under
    the Additional Subscription Privilege exceeds the number of
    Remaining Trust&#160;Units, the Remaining Trust&#160;Units will
    be allotted to each participant in the Additional Subscription
    Privilege on a proportionate basis in accordance with the
    following formula: the number of the Remaining Trust&#160;Units
    allotted to each participant in the Additional Subscription
    Privilege will be the lesser of: (a)&#160;the number of
    Trust&#160;Units which that participant has subscribed for under
    the Additional Subscription Privilege; and (b)&#160;the product
    (disregarding fractions) of the multiplication of the number of
    Remaining Trust&#160;Units by a fraction of which the numerator
    is the number of Trust&#160;Units subscribed for by that
    participant under the Basic Subscription Privilege and the
    denominator is the aggregate number of Trust&#160;Units
    subscribed for under the Basic Subscription Privilege by all
    participants in the Additional Subscription Privilege. If any
    participant has subscribed for fewer Trust&#160;Units than the
    number resulting from the application of the formula in
    (b)&#160;above, the excess Trust&#160;Units will be allotted in
    a similar manner among the participants who were allotted fewer
    Trust&#160;Units than they subscribed for.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If as a result of the application of the foregoing formula, a
    participant in the Additional Subscription Privilege is allotted
    a number of Trust&#160;Units which falls short of the number
    specified in Form&#160;2 on the face of the participant&#146;s
    Rights Certificate, Computershare will, when mailing the
    certificates for the Trust&#160;Units issued to the participant,
    refund, without interest, the excess portion of the total
    Subscription Price paid by the participant.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</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: 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,
    Sale or Transfer of Rights</FONT></B>
</DIV>

<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><FONT style="font-family: 'Times New Roman', Times">The
    Rights are listed and posted for trading on the TSX under the
    trading symbol &#147;PD.RT&#148; and on the NYSE under the
    trading symbol &#147;PDS RT&#148; and will remain listed and
    posted for trading until noon (Toronto time) on June&#160;3,
    2009.</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unitholders and Exchangeable Unitholders may sell or transfer
    their Rights evidenced by a Rights Certificate by completing and
    signing Form&#160;3 attached to the Rights Certificate. A
    certificate so completed should be delivered to the appropriate
    person in ample time for the transferee to use it before the
    Rights Expiry Time.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Rights Certificate is properly assigned in full, it may
    be used by the new holder for subscription without obtaining a
    new Rights Certificate, provided that the signature of the new
    holder on the subscription form (Form&#160;1) and Form&#160;2,
    if applicable, corresponds in every particular with the name of
    such holder inserted at &#147;Name of Transferee&#148; on the
    transfer form (Form&#160;3).
</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">Payment
    of Subscription Price</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Subscription Price for all the Trust&#160;Units subscribed
    for, including those subscribed for under the Additional
    Subscription Privilege, must be paid in Canadian funds by
    certified cheque, bank draft or money order payable to the order
    of &#147;Computershare Investor Services Inc.&#148;. Unitholders
    holding their Trust&#160;Units through an intermediary, such as
    a broker, should contact their broker and make arrangements to
    put the broker in funds for the subscription and give
    appropriate instructions.
</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">Transmittal
    of Rights Certificates</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subscribers or registered dealers representing Subscribers
    should transmit Rights Certificates by mail, hand delivery or
    courier to Computershare at one the following offices:
</DIV>

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

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>By Hand or Courier to:</I>
</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9<SUP style="font-size: 85%; vertical-align: top">th</SUP>

    Floor, 100 University Ave<BR>
    Toronto, Ontario M5J&#160;2Y1<BR>
    Canada
</DIV>

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

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>By Mail to:</I>
</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    P.O. Box 7021
</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    31 Adelaide St. E
</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Toronto, Ontario M5C 3H2
</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Canada
</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Attention: Corporate Actions
</DIV>

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

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>By Mail to</I>
</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Suite&#160;600, 530&#160;&#150;
    8<SUP style="font-size: 85%; vertical-align: top">th</SUP>

    Avenue S.W.
</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Calgary, Alberta T2P 3S8
</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Canada
</DIV>

<DIV align="left" style="margin-left: 5%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Attention: Corporate Actions
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In case of postal service interruption, Subscribers and
    registered dealers representing Subscribers should deliver the
    Rights Certificates by hand or by courier to one of the
    addresses noted above.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The method of transmittal of a Rights Certificate is at the
    option and risk of the person effecting the same. The Trust
    recommends that Rights Certificates be delivered by hand or, if
    mailed, sent by registered mail.
</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">Dividing
    or Combining Rights Certificates</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Rights Certificate may be exchanged for two or more Rights
    Certificates, and two or more Rights Certificates may be
    exchanged for a single new Rights Certificate. In each case, the
    new Rights Certificate(s) will represent a whole number of
    Rights aggregating the same number of whole Rights as were
    evidenced by the original Rights Certificate(s). Such an
    exchange may be effected by completing Form&#160;4 attached to
    the Rights Certificate and surrendering it to Computershare at
    an office indicated under &#147;<I>Transmittal of Rights
    Certificates</I>&#148;. This should be done in ample time for
    the new Rights Certificates to be issued and used before the
    Rights Expiry Time.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<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">Delivery
    of Trust&#160;Unit Certificates</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certificates for the Trust&#160;Units subscribed for in
    accordance with the Rights Offering will be mailed to the
    address of the Subscriber as stated on the Rights Certificate,
    unless otherwise directed, as soon as practicable following the
    Rights Expiry Time.
</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">Signatures</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When the original holder signs any form on the Rights
    Certificate, the signature must correspond in every particular
    with the name of the holder as it appears on the face of the
    Rights Certificate. If the Rights Certificate is transferred
    (see &#147;<I>Purchase, Sale or Transfer of Rights</I>&#148;,
    above) the signature of the transferor must be guaranteed by a
    Canadian chartered bank or eligible guarantor institution with
    membership in an approved signature medallion program.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a Rights Certificate is issued to or transferred to two or
    more persons who hold the Rights evidenced thereby jointly, the
    signatures of all such joint holders shall be required on the
    appropriate forms in order to exercise the Basic Subscription
    Privilege and, if applicable, the Additional Subscription
    Privilege, or to sell or transfer Rights.
</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">Determinations
    as to Validity of Subscription</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All questions as to the validity, form, eligibility (including
    time of receipt) and acceptance of any subscription or request
    for transfer will be determined by Precision, on behalf of the
    Trust, in its sole discretion, whose determination shall be
    final and binding. All subscriptions are irrevocable. Precision,
    on behalf of the Trust, reserves the absolute right to reject
    any subscription if such subscription is not in proper form or
    if the acceptance thereof or the issuance of Trust&#160;Units
    pursuant thereto could be deemed unlawful. Without limiting the
    generality of the foregoing, Precision, on behalf of the Trust,
    shall reject a subscription received from a Subscriber if such
    subscription, alone or taken together with the subscriptions of
    Subscribers with whom such Subscriber is affiliated or
    associated for purposes of the unitholder rights plan agreement
    dated as of March&#160;9, 2007 (the <B>&#147;URP
    Agreement&#148;</B>) between the Trust and Computershare, as
    rights agent, would result in any Subscriber becoming an
    Acquiring Person (as that term is defined in the URP Agreement).
    Precision, on behalf of the Trust, also reserves the right to
    waive any defect with regard to any particular subscription.
    Neither the Trust nor Computershare will be under any duty to
    give any notification of any defect or irregularity in such
    subscriptions nor shall either of them incur any liability for
    failure to give such notification. A copy of the URP Agreement
    is available on the Canadian System for Electronic Document
    Analysis and Retrieval (<B>&#147;SEDAR</B>&#148;) at
    <U>www.sedar.com</U>.
</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">Unexercised
    Rights</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the ability of a Rights Certificate holder to divide
    a Rights Certificate by completing, at the same time,
    Form&#160;4 with the intention of obtaining a new certificate
    for the Rights such holder has chosen not to exercise, a Rights
    Certificate holder who, in Form&#160;1 on the Rights
    Certificate, exercises some but not all of the Rights evidenced
    by a Rights Certificate, will be deemed to have elected to waive
    the unexercised balance of such Rights and such unexercised
    balance of Rights will be void and of no value after the Rights
    Expiry Time. Similarly, if a Rights Certificate holder has
    failed to surrender such holder&#146;s Rights Certificate to
    Computershare, as of the Rights Expiry Time, has surrendered
    such holder&#146;s Rights Certificate but failed to complete
    Form&#160;1 or Form&#160;3 on the Rights Certificate, or has
    failed to make payment of the Subscription Price in respect of
    any Trust&#160;Units which such holder elects to subscribe for,
    such holder will be deemed to have elected to waive the Rights
    represented by such Rights Certificate (or such portion thereof
    in respect of which such holder has failed to make payment) and
    such Rights will be void and of no value after the Rights Expiry
    Time.
</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">Offshore
    Securityholders</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unitholders resident in or otherwise subject to the laws of the
    Offshore Jurisdictions (<B>&#147;Offshore
    Securityholders&#148;</B>) who wish to exercise the Rights
    represented by their Rights Certificate will be required to make
    the certification appearing in Form&#160;1 as attached to the
    Rights Certificate (the <B>&#147;Offshore
    Exemption&#160;Confirmation&#148;</B>) that such Offshore
    Securityholder&#146;s applicable Offshore Jurisdiction provides
    a rights offering prospectus exemption substantially similar to
    the exemption provided in Canada or does not otherwise require
    obtaining any approvals of a
</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">
    regulatory authority in the Offshore Jurisdiction or the filing
    of any documents by the Trust in such Offshore Jurisdiction in
    connection with the Rights Offering. <B>Offshore Securityholders
    should consult their own legal counsel in their applicable
    Offshore Jurisdiction in connection with any Offshore
    Exemption&#160;Confirmation.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<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">U.S.
    Securityholders</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The offering of Rights and Trust&#160;Units issuable on exercise
    thereof, to or for the account of residents of the United States
    (<B>&#147;U.S. Securityholders&#148;</B>) is subject to various
    provisions of United States securities laws, and is being made
    only to holders of Trust&#160;Units as of the Record Date. The
    Trust&#160;Units issuable to such persons upon exercise of
    Rights will be registered on
    <FONT style="white-space: nowrap">Form&#160;F-7</FONT>
    under the <I>United States Securities Act of 1933,</I> as
    amended (the <B>&#147;U.S. Securities Act&#148;</B>), and such
    Trust&#160;Units will not be subject to transfer restrictions
    under the U.S. Securities Act, except for restrictions
    applicable to &#147;affiliates&#148; of the Trust, as such term
    is defined under the U.S. Securities Act.
</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">Ineligible
    Securityholders</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Rights issued hereunder are only qualified for distribution
    in all provinces and territories of Canada, in the United States
    and in eligible Offshore Jurisdictions (together, the
    <B>&#147;Qualifying Jurisdictions&#148;</B>) and the Rights may
    not be exercised by or on behalf of Offshore Securityholders who
    fail to provide the Offshore Exemption&#160;Confirmation and
    return their Rights Certificate to Computershare to sell on the
    Offshore Securityholder&#146;s behalf (the <B>&#147;Ineligible
    Securityholders&#148;</B>). Accordingly, Rights Certificates
    will not be sent to holders of record of Trust&#160;Units with
    addresses or record in any jurisdiction other than the
    Qualifying Jurisdictions. Instead, Ineligible Securityholders
    will be sent a letter advising them that their Rights
    Certificates will be issued to, and held by, Computershare who
    will hold such Rights as agent for the benefit of all Ineligible
    Securityholders. The Subscription Agent will, prior to the
    Expiry Time, attempt to sell such Rights on the open market, on
    a best efforts basis. See &#147;<I>Sale by Subscription
    Agent</I>&#148;. The Subscription Agent&#146;s ability to sell
    such Rights, and the price obtained therefor, will be dependent
    on market conditions. The Subscription Agent shall not be
    subject to any liability for failure to sell any Rights of
    Ineligible Securityholders at a particular price, or at all.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In certain instances, Rights Certificates may, in the discretion
    of the Trust, be sent to a limited number of qualified holders
    of Trust&#160;Units resident in a jurisdiction outside of Canada
    or the United States where it is not unlawful to do so. As a
    condition to receiving any Rights Certificates, such holders may
    be required to provide evidence satisfactory to the Trust that
    it is not unlawful for them to participate in the Rights
    Offering.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A registered holder of Trust&#160;Units whose address appears on
    the records of the Trust as other than in the Qualifying
    Jurisdictions, but who holds Rights on behalf of a holder who is
    eligible to participate in the Rights Offering, must notify
    Computershare, in writing, on or before the
    7<SUP style="font-size: 85%; vertical-align: top">th</SUP> day

    prior to the Rights Expiry Time that the beneficial holder, on
    behalf of whom such Trust&#160;Units are held, wishes to
    participate in the Rights Offering. In such a case, the
    registered holder of Trust&#160;Units giving notification must
    provide evidence, satisfactory to Computershare and the Trust,
    as to the eligibility of the beneficial holder. Otherwise,
    Computershare will sell the Rights held on such beneficial
    holder&#146;s behalf as described above. <B>Accordingly,
    Computershare will not commence to attempt to sell Rights of
    Ineligible Securityholders until after the
    7<SUP style="font-size: 85%; vertical-align: top">th</SUP></B>

    <B>day prior to the Rights Expiry Time.</B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Holders of Rights who are Ineligible Securityholders should
    be aware that the acquisition and disposition of Rights may have
    tax consequences in the jurisdiction where they reside and in
    Canada or the United States which are not described herein.</B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Neither the Trust nor Computershare will accept subscriptions
    from any holder of Rights who is, or who the Trust or
    Computershare has reason to believe is, a resident of a
    jurisdiction in which the issue of Trust&#160;Units pursuant to
    the exercise of Rights would be in violation of applicable
    securities laws. The Trust will not issue Trust&#160;Units to
    such a holder unless such holder is able to satisfy the Trust
    that the receipt by such holder of the Rights and the issuance
    of Trust&#160;Units pursuant to the exercise of the Rights will
    not be in violation of the laws of the jurisdiction of residence
    of such 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><FONT style="font-family: 'Times New Roman', Times">Sale by
    Subscription Agent</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Subscription Agent will not commence to attempt to sell
    Rights of Ineligible Securityholders until after the
    7<SUP style="font-size: 85%; vertical-align: top">th</SUP></B>

    <B>day prior to the Expiry Time.</B> The net proceeds, if any,
    received by Computershare from the sale of such Rights will be
    divided among the Ineligible Securityholders <I>pro rata</I>
    according to the number of Trust&#160;Units held by them on the
    Record Date. The Subscription Agent will mail cheques thereof in
    an amount equal to the proceeds of such sale (net of reasonable
    expenses and any amount withheld in respect of Canadian taxes)
    to Ineligible Securityholders at their addresses appearing on
    the records of the Trust on the Record Date as soon as possible
    after the Expiry Time, provided that Computershare will not be
    required to make any such payment to any Ineligible
    Securityholder in the event that the amount owing to such holder
    is less than $10.00. Such amount will be used by the Trust to
    offset a portion of the remuneration of Computershare for its
    services.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
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<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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No charge will be made for the sale of Rights hereunder by
    Computershare except for a proportionate share of any brokerage
    commissions incurred by Computershare and the costs of or
    incurred by Computershare in connection with the sale of Rights.
    Ineligible Securityholders will not be entitled to instruct
    Computershare in respect to the price or the time at which the
    rights are to be sold. The Subscription Agent will endeavour to
    affect sale of Rights on the open market and any proceeds
    received by Computershare with respect to the sale of Rights net
    of brokerage fees and costs incurred and, if applicable, of
    Canadian tax required to be withheld, will be divided on a
    <I>pro rata</I> basis among such Ineligible Securityholders and
    delivered by mailing cheques (in Canadian funds) of
    Computershare therefor as soon as practicable to such Ineligible
    Securityholders as their addresses recorded on the books of the
    Trust. <B>There is a risk that the proceeds received from the
    sale of the Rights will not exceed the brokerage commission, if
    any, incurred by Computershare, and charges of Computershare in
    respect of the sale of such Rights. In that event, no proceeds
    will be credited to the Ineligible Securityholders.</B>
</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">Listing
    of Underlying Trust&#160;Units</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust&#160;Units issuable on exercise of the Rights have
    been listed on the TSX under the trading symbol
    &#147;PD.UN&#148; and on the NYSE under the symbol
    &#147;PDS&#148;.
</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">INTENTION
    OF INSIDERS TO EXERCISE RIGHTS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All Trustees, and all directors and officers of Precision intend
    to exercise at least a portion of the Rights they receive under
    this Rights Offering (subject to compliance with the laws of the
    jurisdiction in which they are resident), and those Trustees,
    directors and officers who exercise all of their Rights intend
    to exercise their Additional Subscription Privileges, if
    available.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As at March&#160;31, 2009 the Trustees and the directors and
    officers of Precision, as a group, own or have control over
    0.51% of the outstanding Trust&#160;Units. Should such Trustees,
    directors or officers purchase the maximum number of
    Trust&#160;Units pursuant to the Rights Offering, and additional
    Trust&#160;Units pursuant to the Additional Subscription
    Privilege, as applicable, the Trustees, directors or officers
    may increase their respective percentage ownership of the
    outstanding Trust&#160;Units following completion of this Rights
    Offering. If no other Unitholders or Exchangeable Unitholders
    exercise Rights pursuant to the Rights Offering and if the
    directors and officers of Precision exercise all their Rights
    they receive pursuant to the Rights Offering and the Trustees,
    maximum possible Rights exercisable by them pursuant to the
    Additional Subscription Privilege, the Trustees, directors and
    officers, as a group, would increase their ownership to 0.58% of
    the outstanding Trust&#160;Units after completion of the Rights
    Offering.
</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">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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust will receive gross proceeds from the Rights Offering
    of $103,325,850 and net proceeds of approximately $103,125,850
    after deducting expenses of the issue estimated at approximately
    $200,000. The completion of the Rights Offering is not
    conditional upon the Trust receiving any minimum amount of
    subscriptions from Unitholders. The proceeds of the Rights
    Offering will be used to repay the balance owing on the
    Unsecured Facility, to reduce the Secured Facility and for
    general corporate purposes. See &#147;<I>Business of
    Precision&#160;&#151; Material Debt</I>&#148;.
</DIV>
<A name='106'>
<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">CERTAIN
    CANADIAN FEDERAL INCOME TAX CONSIDERATIONS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the opinion of Felesky Flynn LLP, Canadian federal income tax
    counsel for the Trust, the following summary fairly describes
    the principal Canadian federal income tax considerations for the
    receipt of Rights under this Rights Offering Circular, as of the
    date of this Rights Offering Circular. This summary is only
    applicable to Unitholders who, for the purposes of the Tax Act
    and at relevant times, hold their Trust&#160;Units, and will
    hold the Rights and any Trust&#160;Units issued pursuant to the
    exercise of the Rights, as capital property, and deal at
    arm&#146;s length with 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Generally, the Trust&#160;Units and Rights should be considered
    to be capital property to a Unitholder unless such securities
    are held in the course of carrying on business or were acquired
    in one or more transactions which constitute an adventure or
    concern in the nature of trade. Certain holders who are resident
    in Canada, who might not otherwise be considered to hold the
    Trust&#160;Units and the Rights as capital property, may be
    entitled to make an irrevocable election in accordance with
    subsection 39(4) of the Tax Act to have their Trust&#160;Units,
    the Rights and any other Canadian security, as defined in the
    Tax Act, treated as capital property. Unitholders considering
    making such an election should consult their own tax advisors.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
</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>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This summary is based on the facts set out in this Rights
    Offering Circular, a certificate as to certain factual matters
    provided by the Trust, the current provisions of the Tax Act and
    the accompanying Regulations in force as of the date hereof and
    counsel&#146;s understanding of the current published
    administrative practices of the Canada Revenue Agency
    (<B>&#147;CRA&#148;</B>). This summary also takes into account
    relevant specific proposals to amend the Tax Act and the
    Regulations publicly announced by or on behalf of the Minister
    of Finance (Canada) prior to the date of this Rights Offering
    Circular (the <B>&#147;Proposed Amendments&#148;</B>). This
    summary is not exhaustive of all possible Canadian federal
    income tax consequences and, except for the Proposed Amendments,
    does not take into account or anticipate any changes in the law,
    whether by legislative, governmental or judicial actions, or
    changes in the administrative or assessing practice or policies
    of the CRA. This summary does not take into account provincial,
    territorial or foreign tax considerations, which may differ
    significantly from those discussed herein. No assurances can be
    given that Proposed Amendments will be enacted as currently
    proposed or at all.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This summary does not apply to a recipient of Rights that is a
    &#147;financial institution&#148;, a &#147;specified financial
    institution&#148;, or to a recipient of Rights an interest in
    which would be a &#147;tax shelter investment&#148; all as
    defined in the Tax Act, or to a recipient of Rights to which the
    functional currency reporting rules in subsection 261(4) of the
    Tax Act apply. Any such persons who receive Rights should
    consult their own tax advisors with respect to the receipt of
    Rights.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This summary and the opinions expressed under &#147;Eligibility
    for Investment&#148; are based on the assumption that the Trust
    qualifies and will continue to qualify at all relevant times as
    a &#147;mutual fund trust&#148; for purposes of the Tax Act. To
    qualify as a &#147;mutual fund trust&#148;, 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 it must not be
    established or maintained primarily for the benefit of
    non-residents unless all or substantially all of its property is
    other than &#147;taxable Canadian property&#148; as defined in
    the Tax Act. Based upon representations made by the Trust, it is
    intended that the requirements necessary for the Trust to
    qualify as a &#147;mutual fund trust&#148; will continue to be
    satisfied so that the Trust will continue to qualify as a
    &#147;mutual fund trust&#148; at all times throughout its
    existence. In the event that the Trust were to cease to qualify
    as a &#147;mutual fund trust&#148; for purposes of the Tax Act,
    the Rights and Trust&#160;Units could cease to be qualified
    investments for trusts governed by registered retirement savings
    plans, registered retirement income funds, deferred profit
    sharing plans and registered education savings plans, resulting
    in certain adverse tax consequences for such plans including, in
    the case of a registered education savings plan, the possibility
    that the plan&#146;s registration may be revoked.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>This summary is of a general nature only and does not take
    into account or consider the tax laws of any province or
    territory or of any jurisdiction outside Canada. This summary is
    not intended to be, nor should it be construed to be, legal or
    tax advice to any particular Unitholder or any person who
    acquires Rights, and no representations concerning the tax
    consequences to any particular Unitholder or person who acquires
    Rights are made. Unitholders should consult their own tax
    advisors regarding the income tax considerations applicable to
    them having regard for their particular circumstances.</B>
</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">Residents
    of Canada</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This portion of the summary is applicable to a Unitholder who,
    for the purposes of the Tax Act and at all relevant times, is
    resident in Canada.
</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">The
    Rights</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The tax consequences applicable to a Unitholder on the receipt
    of a Right are subject to different interpretations and are
    thus, not free from doubt. The fair market value, if any, of a
    Right issued hereunder may be required to be included in the
    income of a Unitholder as a taxable benefit from the Trust.
    Alternatively, the issuance of a Right may be considered a
    distribution of the Trust&#146;s capital such that the fair
    market value thereof, if any, will be deducted from the adjusted
    cost base of the Unitholder&#146;s existing Trust&#160;Units.
    Under either alternative, the Rights would have a cost to the
    Unitholder equal to their fair market value at the time of
    issuance. However, the CRA&#146;s current published
    administrative position is that where a trust grants an option
    to acquire units of the trust that are to be issued by the
    trust, there are no tax consequences to the trust or the
    recipient of the option. Based on this administrative position,
    the issuance of the Rights should have no immediate tax
    consequences for a Unitholder and, in particular, should not
    result in an income inclusion or a reduction on the adjusted
    cost base of the Unitholder&#146;s existing Trust&#160;Units.
    Consequently, the Unitholder would be deemed to acquire the
    Rights at a cost of nil. Unitholders should note that neither
    the CRA nor a court of law is bound by such administrative
    positions and that the CRA may change its administrative
    positions at any time.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
</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>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Right acquired by a Unitholder otherwise than pursuant to this
    Rights Offering will be regarded as identical to every other
    Right held by the Unitholder at that time as capital property.
    For the purpose of determining the adjusted cost base of each
    Right held by a Unitholder, the cost of Rights so acquired must
    be averaged with the adjusted cost base to the Unitholder of all
    other Rights held as capital property immediately prior to such
    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><FONT style="font-family: 'Times New Roman', Times">Exercise
    of Rights</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The exercise of Rights will be deemed not to constitute a
    disposition of property for purposes of the Tax Act and,
    consequently, no gain or loss will be realized upon the exercise
    of Rights. A Trust&#160;Unit acquired by a Unitholder upon the
    exercise of Rights will have a cost to the Unitholder equal to
    the aggregate of the subscription price paid for such
    Trust&#160;Unit and the adjusted cost base, if any, to the
    Unitholder of the Rights so exercised. The cost of a
    Trust&#160;Unit acquired by a Unitholder upon the exercise of
    Rights generally will be averaged with the adjusted cost base to
    the Unitholder of all other Trust&#160;Units held at that time
    as capital property to determine the adjusted cost base of each
    such Trust&#160;Unit to the Unitholder.
</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">Disposition
    of Rights</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the disposition of a Right by a Unitholder, other than
    pursuant to the exercise thereof, the Unitholder will realize a
    capital gain (or capital loss) to the extent that the proceeds
    of disposition, net of reasonable costs of the disposition,
    exceed (or are less than) the adjusted cost base of the Right to
    the Unitholder. One-half of any such capital gain (a
    <B>&#147;taxable capital gain&#148;)</B> will be included in the
    Unitholder&#146;s income, and one-half of any such capital loss
    (an <B>&#147;allowable capital loss&#148;)</B> may generally be
    deducted against taxable capital gains realized by the
    Unitholder in the year of disposition, and any excess may be
    deducted against taxable capital gains in any of the three
    immediately preceding years, or any subsequent year, in
    accordance with the detailed rules in the Tax Act in that regard.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Unitholder that throughout the relevant taxation year is a
    &#147;Canadian-controlled private corporation&#148; as defined
    in the Tax Act may be liable to pay an additional
    6<SUP style="font-size: 85%; vertical-align: top">2</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">3</SUB>%

    refundable tax on certain investment income, including taxable
    capital gains.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Capital gains realized by a Unitholder who is an individual may
    give rise to alternative minimum tax.
</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">Expiry of
    Rights</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the expiry of an unexercised Right, a Unitholder will
    realize a capital loss equal to the adjusted cost base, if any,
    of the Right to the Unitholder.
</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">Non
    Residents of Canada</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This portion of the summary is applicable to a Unitholder who,
    for the purposes of the Tax Act and at all relevant times, is
    not resident in Canada and is not deemed to be resident in
    Canada, and will not use or hold or be deemed to use or hold the
    Rights or the Trust&#160;Units in, or in the course of, carrying
    on business in Canada, and is not an insurer who carries on an
    insurance business in Canada and elsewhere (a
    <B>&#147;Non-Resident Holder&#148;</B>).
</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">The
    Rights</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With respect to the receipt of Rights, the tax considerations
    for Non-Resident Holders are generally the same as for residents
    of Canada. See <I>&#147;Certain Canadian Federal Income Tax
    Considerations&#160;&#151; Residents of Canada&#148;.</I>
</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">Disposition
    of Rights</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any gains realized by a Non-Resident Holder on a disposition or
    deemed disposition of Rights, other than on the exchange thereof
    for a Trust&#160;Unit, but including on the sale thereof by
    Computershare, should not give rise to any tax under the Tax Act
    for a Non-Resident Holder unless the Rights are &#147;taxable
    Canadian property&#148; and the Non-Resident Holder is not
    entitled to any relief under an applicable income tax treaty.
    Generally, Rights should not constitute &#147;taxable Canadian
    property&#148; to a Non-Resident Holder at the time of the
    disposition or deemed disposition thereof unless (i)&#160;the
    holder uses or holds or is deemed to use or hold the Rights (or
    the Trust&#160;Units issuable pursuant thereto) in, or in the
    course of, carrying on a business in Canada, (ii)&#160;the
    Rights (or the Trust&#160;Units issuable pursuant thereto) are
    &#147;designated insurance property&#148; of the holder for
    purposes of the Tax Act, (iii)&#160;the holder, persons with
    whom the holder does not deal at arm&#146;s length (within the
    meaning of the Tax Act) or the holder together with such persons
    owned 25% or more of the Trust&#160;Units at any time during the
    <FONT style="white-space: nowrap">60-month</FONT>
    period immediately preceding the disposition, or (iv)&#160;the
    Trust ceases to qualify as a mutual fund trust for the purposes
    of the Tax Act.
</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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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<A name='107'>
<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">CERTAIN
    UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mayer Brown LLP, United States counsel to the Trust, have
    advised the Trust that the following is a summary of certain
    material United States federal income tax consequences relevant
    to the receipt, exercise, termination or disposition of Rights
    and the ownership and disposition of Trust&#160;Units, but does
    not purport to be a complete analysis of all the potential tax
    considerations relating thereto. This summary is based on the
    tax laws of the United States (including the Internal Revenue
    Code of 1986, as amended (the <B>&#147;Code&#148;</B>), its
    legislative history, existing and proposed regulations
    thereunder, published rulings and court decisions) as in effect
    on the date hereof, all of which are subject to change, possibly
    with retroactive effect. The Trust has not sought any ruling
    from the Internal Revenue Service (<B>&#147;IRS&#148;</B>) with
    respect to the statements made and the conclusions reached in
    the following summary, and there can be no assurance that the
    IRS will agree with such statements and conclusions.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This summary applies only if a holder will hold the Rights
    and/or the Trust&#160;Units as capital assets within the meaning
    of Section&#160;1221 of the Code. This summary also does not
    address the tax considerations arising under the laws of any
    country other than the United States, any United States state,
    or any local jurisdiction. In addition, this summary does not
    address tax considerations applicable to an investor&#146;s
    particular circumstances or to investors that may be subject to
    special tax rules, including, without limitation:
</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="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    banks, insurance companies, or other financial institutions;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    holders subject to the alternative minimum tax;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    tax-exempt organizations;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    brokers or dealers in securities or commodities;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    traders in securities that elect to use a
    <FONT style="white-space: nowrap">mark-to-market</FONT>
    method of accounting for their securities holdings;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    foreign
    <FONT style="white-space: nowrap">(non-United</FONT>
    States) persons or entities;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    persons that are S-corporations, partnerships or other
    pass-through entities;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    expatriates and certain former citizens or long-term residents
    of the United States;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    holders whose functional currency is not the U.S. dollar;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    persons holding the Rights and/or Trust&#160;Units as part of a
    hedging, straddle, conversion or constructive sale transaction
    or other risk reduction transactions;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    grantor trusts;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    real estate investment trusts or regulated investment companies;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    holders that own stock of the Trust representing 10% or more of
    the voting power; or
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    persons who are resident or ordinarily resident in Canada.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Further, the following assumes that you will not, due to your
    particular circumstances, be restricted from receiving the
    Rights under applicable securities laws. <B>You should consult
    your tax advisors about the United States federal, state, local
    and foreign tax consequences to you of the exercise or
    disposition of the Rights and of the ownership and disposition
    of the Trust&#160;Units.</B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The summary below applies to you only if you are a beneficial
    owner of Rights and/or Trust&#160;Units not resident in Canada
    for purposes of the income tax treaty between the United States
    and Canada (the <B>&#147;U.S. Tax Treaty&#148;)</B> and you are,
    for United States federal income tax purposes:
</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="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an individual citizen or resident of the United States;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a corporation or other entity taxable as a corporation for
    United States federal income tax purposes created or organized
    in the United States or under the laws of the United States, any
    state thereof, or the District of Columbia;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an estate, the income of which is subject to United States
    federal income taxation regardless of its source; or
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a trust that (1)&#160;is subject to the primary supervision of a
    United States court and the control of one or more United States
    persons or (2)&#160;has a valid election in effect under
    applicable Treasury Regulations to be treated as a United States
    person.
</TD>
</TR>

</TABLE>

<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 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">Taxation
    of Rights</FONT></B>
</DIV>

<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">Receipt
    of Rights</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under section&#160;305 of the Code, a shareholder who receives a
    right to acquire shares generally will not be treated as having
    received a taxable distribution. However, a Unitholder who
    receives a Right will, in certain circumstances, be treated as
    having received a taxable dividend in an amount equal to the
    fair market value of such Right. In particular, a Unitholder who
    receives a Right generally will be treated as having received a
    taxable distribution if a Unitholder&#146;s proportionate
    interest in the earnings and profits or assets of the Trust is
    increased and any other Unitholder receives a distribution of
    cash or other property. For the purposes of the preceding
    sentence, the term &#147;Unitholder&#148; includes holders of warrants, options and
    convertible securities. The application of this rule is complex
    and subject to some uncertainty if a company has warrants,
    options or convertible securities outstanding. While the issue
    is not free from doubt, we believe that the distribution of the
    Rights should be treated as a non-taxable stock distribution
    under section&#160;305(a) of the Code and we and our agents
    (including the depositary) intend to treat the distribution of
    the Rights consistent with this belief. The following discussion
    assumes that our position is respected, and that you are not
    subject to United States federal income tax on the receipt (or
    deemed receipt) of a Right. However, our position is not binding
    on the IRS and there can be no assurance that the IRS will not
    disagree with such position. If our position were finally
    determined by the IRS or a court to be incorrect, the fair
    market value of the Rights you receive would be taxable to you
    as a dividend in the manner described below under &#147;Taxation
    of Trust&#160;Units &#151; Distributions&#148;. You are strongly
    urged to consult your tax advisors regarding the risk of having
    a taxable distribution as a result of the receipt of the Rights.
</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">Sale
    or Other Disposition of Rights</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon a sale or other disposition of a Right, you will recognize
    capital gain or loss in an amount equal to the difference
    between the amount realized on such sale or other disposition
    and your adjusted tax basis in the Right.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The amount realized on a sale or other disposition of a Right
    for cash generally will be the amount of cash you receive in
    exchange for such Right. If the consideration you receive for
    the Right is not paid in U.S. dollars, the amount realized will
    be the U.S. dollar value of the payment received determined by
    reference to the spot exchange rate in effect on the date of the
    sale or other disposition or, if the Right sold or exchanged is
    traded on an &#147;established securities market&#148; and you
    are a cash basis taxpayer or an electing accrual basis taxpayer,
    the spot exchange rate in effect on the settlement date.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the fair market value of the Rights on the date of their
    distribution equals or exceeds 15 percent of the fair market
    value on such date of the Trust&#160;Units with respect to which
    the Rights are distributed, your tax basis in such
    Trust&#160;Units must be allocated between such Trust&#160;Units
    and the Rights. Such an allocation must be made in proportion to
    the fair market value of the Trust&#160;Units and the fair
    market value of the Rights on the date the Rights are
    distributed.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the fair market value of the Rights on the date of their
    distribution is less than 15&#160;percent of the fair market
    value on such date of the Trust&#160;Units with respect to which
    the Rights are distributed, your tax basis in such Rights will
    be zero and your basis for the Trust&#160;Units with respect to
    which the Rights are distributed will remain unchanged.
    Notwithstanding the foregoing sentence, however, you may
    affirmatively elect (in a statement attached to your United
    States federal income tax return for the year in which the
    Rights were received) to allocate to the Rights a portion of
    your basis in such Trust&#160;Units in the manner described in
    the immediately preceding paragraph. Any such election is
    irrevocable and must be applied to all of the Rights you receive
    pursuant to this Offering.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the passive foreign investment company rules
    discussed below, any gain or loss you recognize on the sale or
    other disposition of a Right to a third party will be long-term
    capital gain or loss if your holding period in the Right is
    deemed to be greater than one year. Your holding period in a
    Right will be deemed to have begun on the same date as that of
    the Trust&#160;Unit with respect to which you received such
    Right. Any gain or loss will generally be treated as United
    States source gain or loss. The deductibility of capital losses
    is subject to limitations.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Your tax basis in any foreign currency you receive on the sale
    or other disposition of a Right will be equal to the U.S. dollar
    amount that you realized on the sale or disposition. Any gain or
    loss you realize on a subsequent conversion of foreign currency
    generally will be U.S. source ordinary income or loss.
</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">Termination
    of Rights</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, if you allow a Right to expire
    without the Right being exercised, sold or exchanged by you or
    on your behalf, no basis will be allocated to such Right and you
    will not realize any loss upon the expiration of such Right.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    19
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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: 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">Exercise
    of Rights</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The exercise of a Right by you will not be a taxable transaction
    for United States federal income tax purposes. Your initial
    basis in the Trust&#160;Units acquired upon exercise of a Right
    generally will be equal to the amount of cash paid for the
    Trust&#160;Units (in U.S. dollar value of the Canadian dollar
    denominated subscription price determined on the date of
    purchase) plus your basis (if any) in the Right in U.S. dollars.
</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">Taxation
    of Trust&#160;Units</FONT></B>
</DIV>

<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">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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the passive foreign investment company rules
    discussed below, the gross amount of any distribution by us of
    cash or property (including our Trust&#160;Units, unless such
    Trust&#160;Units are distributed pro rata to all Unitholders and
    certain other conditions are met) with respect to
    Trust&#160;Units will be includable in income by you as dividend
    income at the time of receipt to the extent such distributions
    are made from our current or accumulated earnings and profits as
    determined under United States federal income tax principles.
    Such a distribution will not be eligible for the distributions
    received deduction generally allowed to corporate shareholders.
    To the extent, if any, that the amount of any distribution by us
    exceeds our current and accumulated earnings and profits as
    determined under United States federal income tax principles, it
    will be treated first as a tax-free return of your adjusted tax
    basis in the Trust&#160;Units and thereafter as capital gain.
    Notwithstanding the foregoing, we do not intend to maintain
    calculations of earnings and profits as determined under United
    States federal income tax principles.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For taxable years beginning before January&#160;1, 2011,
    distributions received by an individual may be eligible for
    preferential rates of taxation, provided (1)&#160;certain
    holding period requirements are satisfied, (2)&#160;we are
    eligible for the benefits of the U.S. Tax Treaty, and
    (3)&#160;we are not, and in the preceding year were not, a
    &#147;passive foreign investment company&#148;. The
    determination of whether a distribution qualifies for the
    preferential rates must be made at the time the dividend is paid.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Distributions paid in Canadian dollars, including any Canadian
    withholding taxes, will be included in your gross income in a
    U.S. dollar amount calculated by reference to the exchange rate
    in effect on the date of receipt, regardless of whether the
    Canadian dollars are converted into U.S. dollars at that time.
    If Canadian dollars are converted into U.S. dollars on the date
    of receipt, you generally should not be required to recognize
    any foreign exchange gain or loss.
</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">Sale or
    Exchange of Trust&#160;Units</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the passive foreign investment company rules
    discussed below, generally you will recognize gain or loss on
    the sale or exchange of Trust&#160;Units equal to the difference
    between the amount realized on such sale or exchange and your
    adjusted tax basis in the Trust&#160;Units. Gain or loss
    recognized by you on the sale or exchange of a Trust&#160;Unit
    generally will be capital gain or loss and generally will be
    long-term if held more than one year and otherwise short-term.
    Long-term capital gains recognized by certain non-corporate
    United States holders, including individuals, generally will be
    subject to a reduced tax rate. The deductibility of capital
    losses is subject to limitations.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the consideration you receive for the Trust&#160;Units is not
    paid in U.S. dollars, the amount realized will be the U.S.
    dollar value of the payment received determined by reference to
    the spot exchange rate in effect on the date of the sale or
    other disposition or, if the Trust&#160;Unit sold or exchanged
    is traded on an &#147;established securities market&#148; and
    you are a cash basis taxpayer or an electing accrual basis
    taxpayer, the spot exchange rate in effect on the settlement
    date. You will have a tax basis in any foreign currency received
    equal to the U.S. dollar amount realized. Any gain or loss you
    realize on a subsequent conversion of foreign currency will be
    United States source ordinary income or loss.
</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">Foreign
    Tax Credit Considerations</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of the United States foreign tax credit
    limitations, distributions on the Trust&#160;Units will be
    foreign source income and generally will be &#147;passive
    category income&#148; but could, in the case of certain United
    States holders, constitute &#147;general category income.&#148;
    In general, gain or loss realized upon sale or exchange of the
    Trust&#160;Units by you will be United States source income or
    loss, as the case may be.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to certain complex limitations, including holding period
    requirements, generally you will be entitled to a credit against
    your United States federal income tax liability or a deduction
    in computing your United States federal taxable income in
    respect of any Canadian taxes withheld by us (to the extent not
    refundable). You should consult your tax advisors as to the
    consequences of Canadian withholding taxes and the availability
    of a foreign tax credit or deduction.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<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">Passive
    Foreign Investment Company Status</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, a
    <FONT style="white-space: nowrap">non-United</FONT>
    States corporation is classified as a passive foreign investment
    company (<B>&#147;PFIC&#148;</B>) for each taxable year in which
    (i)&#160;75% or more of its gross income is passive income (as
    defined for United States federal income tax purposes) or
    (ii)&#160;on average for such taxable year, 50% or more (by
    value) of its assets either produce or are held for the
    production of passive income. We believe that we are not and
    have never been a PFIC, and expect that we will not become a
    PFIC in the foreseeable future. However, PFIC classification is
    factual in nature, generally cannot be determined until the
    close of the taxable year in question, and is determined
    annually based on application of complex rules which are
    uncertain in some respects. Consequently, we cannot provide any
    assurance that we have not been or will not become a PFIC for
    any taxable year during which you hold or held Trust&#160;Units.
    If the Trust were determined to be a PFIC for any taxable year
    during which you held our Trust&#160;Units, you could be subject
    to special, adverse United States federal income tax rules
    (including increased tax liability and interest) on any gain
    realized on the sale or other disposition of Trust&#160;Units or
    on any &#147;excess distribution&#148; made to you. You should
    consult your tax advisors concerning the United States federal
    income tax consequences of the Trust being or having been a PFIC.
</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">Information
    Reporting and Backup Withholding</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A United States holder (other than an &#147;exempt
    recipient,&#148; including a corporation and certain other
    persons who, when required, demonstrate their exempt status) may
    be subject to backup withholding at a rate of 28%, and to
    information reporting requirements with respect to dividends or
    other payments on, and to proceeds from the sale or exchange of,
    Rights or Trust&#160;Units. In general, if a non-corporate
    United States holder subject to information reporting fails to
    furnish a correct taxpayer identification number or otherwise
    fails to comply with applicable backup withholding requirements,
    backup withholding may apply. Backup withholding is not an
    additional tax and may be credited against your regular United
    States federal income tax liability or refunded by the IRS where
    applicable provided the required information is furnished to the
    IRS in a timely manner.
</DIV>
<A name='108'>
<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">ELIGIBILITY
    FOR INVESTMENT</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the opinion of Felesky Flynn LLP, Canadian federal income tax
    counsel for the Trust, provided the Trust continues to qualify
    as a mutual fund trust for purposes of the Tax Act, the Rights
    will be qualified investments under the Tax Act for trusts
    governed by registered retirement savings plans, registered
    retirement income funds, registered disability savings plans,
    deferred profit sharing plans, tax free savings accounts and
    registered education savings plan (collectively,
    <B>&#147;Deferred Plans&#148;</B>) provided that the Rights are
    listed on a designated stock exchange (which includes the TSX)
    or the Trust deals at arm&#146;s length with each person who is
    an annuitant, a beneficiary, an employer or a subscriber under
    the governing plan of the Deferred Plan. Provided the Trust
    continues to qualify as a mutual fund trust for purposes of the
    Tax Act, the Trust&#160;Units issuable on the exercise of the
    Rights will be qualified investments under the Tax Act for
    Deferred Plans provided (i)&#160;the Trust&#160;Units are listed
    on a designated exchange (which includes the TSX) or
    (ii)&#160;the Trust qualifies as a mutual fund trust for
    purposes of 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, if the Trust&#160;Units or the
    Rights are &#147;prohibited investments&#148; for the purposes
    of a &#147;tax-free savings account&#148;, a holder of the
    &#147;tax-free savings account&#148; will be subject to a
    penalty tax as set out in the Tax Act. A &#147;prohibited
    investment&#148; includes an interest in a trust which does not
    deal at arm&#146;s length with the holder, or an interest in a
    trust (or a corporation, partnership or trust with which the
    trust does not deal at arm&#146;s length) in which the holder,
    either alone or together with persons with whom the holder does
    not deal at arm&#146;s length, has a significant interest
    (within the meaning of the Tax Act). Subscribers are advised to
    consult their own tax advisors in this regard.
</DIV>
<A name='109'>
<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 THE TRUST&#160;UNITS</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">Issuance
    of Trust&#160;Units</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: 4%; 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 may determine. The Declaration
    of Trust also provides that the Trustees 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 may determine.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<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>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 have determined that 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>

<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">Cash
    Distributions</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On February&#160;9, 2009, the Trust announced that it had
    suspended cash distributions for an indefinite period. This
    measure was taken in response to lower financial operating
    performance at the start of 2009. The previously announced
    distribution of $0.04 per unit payable on February&#160;17, 2009
    to Trust and PDLP Unitholders of record on January&#160;30, 2009
    was unaffected by the suspension. The Trust will continue to
    monitor its financial situation and evaluate the possibility of
    the reinstatement of monthly cash distributions based on the
    relevant factors in effect from time to time. See &#147;<I>Risk
    Factors&#160;&#151; Distributions on Trust&#160;Units have been
    suspended and may not be reinstated</I>&#148;.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the terms of the Declaration of Trust, the Trust is
    required to make distributions to Unitholders in amounts at
    least equal to its taxable income. Distributions may be monthly
    or special and in cash or in Trust&#160;Units
    (&#147;in-kind&#148;) at the discretion of the Board of
    Trustees. To the extent that additional cash distributions are
    paid and capital expenditure or investment programs are not
    adjusted, debt levels may increase. In the event that a
    distribution in the form of Trust&#160;Units is declared, the
    terms of the Declaration of Trust require that the outstanding
    Trust&#160;Units be consolidated immediately subsequent to the
    distribution. The number of outstanding Trust&#160;Units would
    remain at the number outstanding immediately prior to the
    Trust&#160;Unit distribution and an amount equal to the
    distribution would be allocated to the holders of
    Trust&#160;Units. For greater clarity, holders of
    Trust&#160;Units do not receive additional Trust&#160;Units
    during an &#147;in-kind&#148; issuance and consolidation process.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Trustees reviews the Trust&#146;s distribution
    policy from time to time. The actual amount distributed is
    dependent on various economic factors and distributions are
    declared at the discretion of the Board of Trustees. 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;
    maintenance expenditures and expansion capital expenditure
    requirements for the purchase of property, plant and equipment
    and the number of Trust&#160;Units and Exchangeable Units issued
    and outstanding.
</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">Trust&#160;Unit
    Redemption&#160;Right</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: 4%; 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><FONT style="font-family: 'Times New Roman', Times">Cash
    Redemption</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon receipt by the Trust of a notice to redeem
    Trust&#160;Units, the tendering Unitholder will thereafter be
    entitled to receive a price per Trust&#160;Unit (the
    <B>&#147;Market Redemption&#160;Price&#148;</B>) 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 10 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: 4%; 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>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
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<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: 4%; 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="4%"></TD>
    <TD width="5%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (a)&#160;
</TD>
    <TD align="left">
    the total amount payable by the Trust in respect of such
    Trust&#160;Units and all other Trust&#160;Units tendered for
    redemption in the same calendar month exceeds $50,000; provided
    that the Trustees 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>


<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>&nbsp;</TD>
    <TD>    (b)&#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 TSX or traded or quoted on any stock exchange or market
    which the Trustees consider, in their sole opinion, provides
    representative fair market value prices for the 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>&nbsp;</TD>
    <TD>    (c)&#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&#160;Units were tendered for redemption; or
</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>&nbsp;</TD>
    <TD>    (d)&#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><FONT style="font-family: 'Times New Roman', Times">In Specie
    Redemption</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: 4%; 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, the General Partner and Precision
    (the <B>&#147;Support Agreement&#148;</B>) provides that, upon
    the direction of the Trustees, 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
    <B>&#147;Redemption&#160;Notes&#148;</B>) 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 day of each calendar month that
    such Redemption&#160;Note is outstanding.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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: 4%; 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: 4%; 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 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 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: 4%; 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 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.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
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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">
    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 <I>&#147;Risk Factors&#160;&#151; Risks
    Relating to the Structure of the Trust&#148;.</I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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>

<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>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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, 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 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: 4%; 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 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 by virtue of
    the Special Voting Unit of the Trust issued pursuant to the
    Voting and Exchange Trust&#160;Agreement) 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: 4%; 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 at
    such meeting.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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>

<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>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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="4%"></TD>
    <TD width="5%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (a)&#160;
</TD>
    <TD align="left">
    if determined necessary or desirable by the Trustees, 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 become aware that the activities of
    the Trust and/or 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 on the
    Trust&#146;s behalf, is authorized to take such action as may be
    necessary in the opinion of the Trustees 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 and/or require the sale of
    Trust&#160;Units by non-residents of Canada on a basis
    determined by the Trustees and/or suspend distribution and/or
    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; 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>&nbsp;</TD>
    <TD>    (b)&#160;
</TD>
    <TD align="left">
    in addition to the foregoing, the transfer agent of the
    Trust&#160;Units, by or through the Trustees may, if determined
    appropriate by the Trustees, 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, 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. The operating procedures relating to
    such reservation system shall be determined by the Trustees and,
    prior to implementation, the Trust shall publicly announce the
    implementation of the same. Such operating procedures may, among
    other things, provide that
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</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 -->

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

<TR>
    <TD width="9%"></TD>
    <TD width="5%"></TD>
    <TD width="86%"></TD>
</TR>

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

<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>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trustees 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="4%"></TD>
    <TD width="5%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (a)&#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 or
    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>&nbsp;</TD>
    <TD>    (b)&#160;
</TD>
    <TD align="left">
    in a manner which, in the opinion of the Trustees, provides
    additional protection for the Unitholders;
</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>&nbsp;</TD>
    <TD>    (c)&#160;
</TD>
    <TD align="left">
    in a manner which, in the opinion of the Trustees, is necessary
    or desirable as a result of changes in Canadian tax laws;
</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>&nbsp;</TD>
    <TD>    (d)&#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, necessary or desirable and not prejudicial to the
    Unitholders; or
</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>&nbsp;</TD>
    <TD>    (e)&#160;
</TD>
    <TD align="left">
    to change the situs of, or the laws governing, the Trust which,
    in the opinion of the Trustees is desirable in order to provide
    Unitholders with the benefit of any legislation limiting their
    liability.
</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><FONT style="font-family: 'Times New Roman', Times">Term of
    the Trust</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: 4%; 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 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: 4%; 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 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, 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 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 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 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>

<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>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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='110'>
<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">PRINCIPAL
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An unlimited number of Trust&#160;Units may be created and
    issued by the Trust. At the date of this Rights Offering
    Circular the Trust had outstanding 241,065,086 Trust&#160;Units,
    each Trust&#160;Unit carrying the right to one vote. The
    Trust&#160;Units are the only class of voting securities of the
    Trust which are issued and outstanding. To the knowledge of the
    Board of Trustees, the board of directors and executive officers
    of Precision, as at the date of this Rights Offering Circular,
    the only persons or companies who beneficially own, directly or
    indirectly, or exercise control or direction over
    Trust&#160;Units entitled to more than ten percent (10%) of the
    outstanding Trust&#160;Units are as follows:
</DIV>

<DIV style="margin-top: 9pt; 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="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="14%" 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="25%" align="right">&nbsp;</TD>   <!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>     <!-- colindex=03 type=hang1 -->
</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>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Number of Trust Units</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Percentage of Outstanding Trust Units</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Private Placement Investor
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,000,000
</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">
    14.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the date of this Rights Offering Circular, PDLP had
    outstanding 206,065,086 Class&#160;A Limited Partnership Units,
    each of which is held by the Trust, and 128,562 Exchangeable
    Units, each of which are held by former shareholders of
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
</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">
    Precision who elected to receive Exchangeable Units in lieu of
    Trust&#160;Units at the time of the reorganization of the
    business of Precision into the Trust. The Exchangeable Units are
    the economic equivalent of the Trust&#160;Units, are
    exchangeable for Trust&#160;Units on a
    <FONT style="white-space: nowrap">one-for-one</FONT>
    basis at the option of the holder, entitle the holder to receive
    cash payments equal to cash distributions made by the Trust on
    the Trust&#160;Units, and entitle the holder to direct the
    Voting and Exchange Trustee to vote the Special Voting Unit at
    all meetings of holders of Trust&#160;Units. The Exchangeable
    Units are the only class of voting securities of PDLP which are
    issued and outstanding. To the knowledge of the directors and
    officers of the General Partner, a wholly-owned subsidiary of
    the Trust which has the exclusive authority to manage the
    business and affairs of PDLP on behalf of the Trust, as at the
    date of this Rights Offering
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Circular, no person or company beneficially owned, directly or
    indirectly, or exercised control or direction over Exchangeable
    Units entitled to more than ten percent (10%) of the outstanding
    Trust&#160;Units.
</DIV>
<A name='111'>
<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">CHANGES
    OF 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Since December&#160;31, 2008, there have been no issuances of
    Trust&#160;Units that have materially affected the control of
    the Trust and, to the knowledge of the directors and officers of
    Precision, no transfers of Trust&#160;Units that have materially
    affected the control of the Trust, except as described under the
    heading <I>&#147;Business of Precision&#160;&#151; Private
    Placement&#148;.</I>
</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">STATEMENT
    AS TO RESALE RESTRICTIONS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Securities legislation in Canada restricts the ability of a
    holder to trade the Rights and the Trust&#160;Units issuable
    upon the exercise of such Rights (the Rights and the
    Trust&#160;Units collectively, the
    <B>&#147;Securities&#148;</B>), without certain conditions
    having been fulfilled or applicable prospectus requirements
    having being complied with. The following is a general summary
    of the restrictions governing the first trade in the Securities.
    Additional restrictions apply to &#147;insiders&#148; and
    holders of the Securities who are &#147;control persons&#148; or
    the equivalent or who are deemed to be part of what is commonly
    referred to as a &#147;control block&#148; in respect of the
    Trust for purposes of securities legislation. <B>Each holder is
    urged to consult his or her professional advisors to determine
    the exact conditions and restrictions applicable to trades of
    the Securities.</B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Generally, in Canada, the Securities will be exempt from the
    prospectus requirements of securities legislation in the
    Canadian Qualifying Jurisdictions if:
</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="5%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (a)&#160;
</TD>
    <TD align="left">
    the Trust is and has been a &#147;reporting issuer&#148; for the
    four months immediately preceding the trade and is a
    &#147;qualifying issuer&#148;, as defined in National Instrument
    <FONT style="white-space: nowrap">45-102,</FONT> or
    if the Trust is not a &#147;qualifying issuer&#148;, then the
    Trust is and has been a &#147;reporting issuer&#148; for the
    twelve months immediately preceding the trade;
</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>&nbsp;</TD>
    <TD>    (b)&#160;
</TD>
    <TD align="left">
    the trade is not a &#147;control distribution&#148; as defined
    in the applicable securities legislation;
</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>&nbsp;</TD>
    <TD>    (c)&#160;
</TD>
    <TD align="left">
    no unusual effort is made to prepare the market or to create a
    demand for the Securities;
</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>&nbsp;</TD>
    <TD>    (d)&#160;
</TD>
    <TD align="left">
    no extraordinary commission or other consideration is paid in
    respect of such trade; 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>&nbsp;</TD>
    <TD>    (e)&#160;
</TD>
    <TD align="left">
    if the seller is an insider or officer of the Trust, the seller
    has no reasonable grounds to believe that the Trust is in
    default of applicable securities legislation.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If such conditions have not been met, then the Securities may
    not be resold except pursuant to a prospectus or prospectus
    exemption, which may only be available in limited circumstances.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Trust has been a reporting issuer for more than twelve
    months in each of the provinces of Ontario, Alberta, British
    Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Qu&#233;bec,
    New Brunswick, Nova Scotia, Prince Edward Island and
    Newfoundland and Labrador.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The foregoing is a summary only and is not intended to be
    exhaustive. Holders of Rights should consult with their advisors
    concerning restrictions on resale, and should not resell their
    Securities until they have determined that any such resale is in
    compliance with the requirements of applicable legislation.
</DIV>
<A name='113'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

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    <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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An investment in the Trust&#160;Units is subject to certain
    risks. Investors should carefully review and consider the risks
    described below and all other information contained herein
    before making an investment decision and consult their own
    experts where necessary. Investors are also directed to the risk
    factors set out under the heading <I>&#147;Risk
    Factors&#148;</I> in the Annual Information Form of the Trust
    for the fiscal year ended December&#160;31, 2008 which has been
    filed with the securities regulatory authorities in each of the
    provinces of Canada and with the Securities and Exchange
    Commission the
</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">
    United States (the <B>&#147;SEC&#148;</B>). The Annual
    Information Form is available in Canada on SEDAR at
    <U>www.sedar.com</U>. The Annual Information Form is available
    on
    <FONT style="white-space: nowrap">Form&#160;40-F</FONT>
    in the United States on the SEC&#146;s Electronic Document
    Gathering and Retrieval System (<B>&#147;EDGAR&#148;</B>) at
    <U>www.sec.gov</U>.
</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">Risks
    Relating To The Structure Of The Trust</FONT></B>
</DIV>

<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">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: 4%; 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, 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: 4%; 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: 4%; 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 Companies&#146; <I>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: 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">

    <I><FONT style="font-family: 'Times New Roman', Times">Sales of
    additional Trust&#160;Units could negatively affect the value of
    the Trust&#160;Units.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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
    fund the requirements of the Trust, Precision and other entities
    now or hereafter owned directly or indirectly by the Trust. 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
    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">

    <I><FONT style="font-family: 'Times New Roman', Times">The price
    of Trust&#160;Units may experience volatility.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The price of Trust&#160;Units may be
    volatile.</I>&#160;&#160;Some of the factors that could affect
    the price of the Trust&#160;Units are 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 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.
    Precision has experienced a reduction in the demand for its
    services in late 2008 and early 2009 in correlation with the
    significant downward trend in oil and natural gas prices over
    the same period.
</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">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 PDOS, the former
    Grey Wolf) through its interest in PDLP, which in turn owns 100%
    of the shares of Precision and the Promissory Note.
    Distributions to Unitholders 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
</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">
    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: 4%; 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 Unitholders. 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. See <I>&#147;Risk
    Factors&#160;&#151; Distributions on the Trust&#160;Units have
    been suspended and may not be reinstated&#148;.</I>
</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">

    <I><FONT style="font-family: 'Times New Roman', Times">Distributions
    on the Trust&#160;Units have been suspended and may not be
    reinstated.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On February&#160;9, 2009, the Trust announced that it had
    suspended cash distributions for an indefinite period. The
    Trust&#146;s ability to resume making cash distributions, if
    any, in the future and the actual cash flow available for
    distribution to Unitholders is a function of numerous factors
    including, among other things, the Trust&#146;s,
    Precision&#146;s and PDLP&#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 and/or
    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 or may not be reinstated, may be
    reinstated at amounts different than historical or recent
    amounts (and subsequently increased or reduced) or may be
    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
    reinstate its cash distributions or otherwise meet cash
    distribution expectations in the future, and that deterioration
    may be material. See <I>&#147;Risk Factors&#160;&#151; The Trust
    is dependent on Precision and its subsidiaries for the amount of
    cash available for distributions&#148;.</I>
</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">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 and the Senior Notes, see
    <I>&#147;Business of Precision&#160;&#151; Material Debt&#148;)
    </I>could preclude distributions altogether. See <I>&#147;Risk
    Factors&#160;&#151; Risks Relating to the Acquisition&#148;.</I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The terms of the documents governing the Credit Facilities and
    the Senior Notes contain provisions that in effect ensure that
    the lenders and the noteholder 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 and to the holder of the Senior Notes 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. See
    <I>&#147;Risk Factors &#151; Distributions on the
    Trust&#160;Units have been suspended and may not be
    reinstated&#148;.</I>
</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">

    <I><FONT style="font-family: 'Times New Roman', Times">The Trust
    may not be able to obtain financing or obtain financing on
    acceptable terms because of the deterioration of the credit and
    capital markets.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On February&#160;19, 2009, the Trust announced that Precision
    had postponed its previously announced offering of
    US$250&#160;million principal amount of senior notes due 2015
    due to unfavourable market conditions. Global financial markets
    and economic conditions have been, and continue to be, disrupted
    and volatile. The debt and equity capital markets have been
    exceedingly distressed. The re-pricing of credit risk and the
    current weak economic conditions have made, and will likely
    continue to make, it difficult to obtain funding on acceptable
    terms, if at all. In particular, the cost of raising money in
    the debt and equity capital markets has increased substantially,
    while the availability of funds from those markets has
    diminished significantly. Also, as a result of concerns about
    the stability of financial markets generally and the solvency of
    counterparties specifically, the cost of obtaining money from
    the credit markets has increased as many lenders and
    institutional investors have increased interest rates, enacted
    tighter lending standards, refused to refinance existing debt at
    maturity at all or on terms similar to the Trust&#146;s current
    debt and reduced and, in some cases, ceased to provide funding
    to borrowers.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Trust&#146;s business does not generate sufficient cash
    flow from operations to enable it to pay its indebtedness or to
    fund its other liquidity needs, then, as a consequence of these
    changes in the credit markets, the Trust cannot assure 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">
    future borrowings will be available to it under its credit
    facilities in sufficient amounts, either because the
    Trust&#146;s lending counterparties may be unwilling or unable
    to meet their funding obligations or because the Trust&#146;s
    borrowing base may decrease as a result of lower asset
    valuations, operating difficulties, lending requirements or
    regulations, or for any other reason. Moreover, even if lenders
    and institutional investors are willing and able to provide
    adequate funding, interest rates may rise in the future and
    therefore increase the cost of borrowing the Trust incurs on any
    of its floating rate debt. Finally, the Trust may need to
    refinance all or a portion of its indebtedness on or before
    maturity, sell assets, reduce or delay capital expenditures,
    seek additional equity financing or seek third-party financing
    to satisfy such obligations. The Trust cannot assure that it
    will be able to refinance any of its indebtedness on
    commercially reasonable terms or at all. There can be no
    assurance that the Trust&#146;s business, liquidity, financial
    condition, or results of operations will not be materially and
    adversely impacted in the future as a result of the existing or
    future credit market conditions. See <I>&#147;Business of
    Precision &#151; Material Debt&#148;.</I>
</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">

    <I><FONT style="font-family: 'Times New Roman', Times">Precision
    may be unable to obtain access to additional
    financing.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 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. See <I>&#147;Business of Precision &#151;
    Material Debt&#148;.</I>
</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">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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: 4%; 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: 4%; 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 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: 4%; 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 Document (the <B>&#147;Proposed
    Amendments&#148;</B>) 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: 4%; 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>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 and Rights held
    by Unitholders who are not resident in Canada for the purposes
    of the Tax Act <B>(&#147;Non-Canadian Holders&#148;</B>) 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 or Rights held by them unless they were exempt
    under an income tax convention, and Non-Canadian Holders may be
    subject to certain notification and withholding requirements on
    a disposition of their Trust&#160;Units or Rights. 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: 4%; 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
    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: 4%; 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 the Guidelines. 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: 4%; 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; amount of $4&#160;billion
    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: 4%; 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 March&#160;12,
    2009 the federal government enacted the SIFT Conversion Rules.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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>

<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">

    <I><FONT style="font-family: 'Times New Roman', Times">If the
    Trust ceases to qualify as a &#147;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></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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, <B>&#147;Exempt Plans&#148;</B>)
    and for trusts governed by &#147;tax-free savings
    accounts&#148;, as defined in the Tax Act. Where, at the end of
    any month, an Exempt Plan holds trust 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 units at the times such
    trust 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 units that are not qualified investments, such trust
    will become taxable on its income attributable to the trust
    units while they are not qualified investments, including the
    full amount of any capital gain realized on a disposition of
    trust units while they are not qualified investments. Where a
    trust governed by a &#147;registered education savings
    plan&#148; holds trust 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
    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 units at the time the trust
    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">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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
</DIV>

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    <BR>
    30
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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">
    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: 4%; 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 could be reorganized into a corporation and the
    Unitholders may become shareholders of that corporation which
    would own all of the Trust&#160;Units of the Trust. Under this
    form of reorganization, each Unitholder would exchange its
    Trust&#160;Units for shares of the successor corporation. Such
    reorganization would be subject to a review of all possible
    reorganization alternatives as well as 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: 4%; 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 or prior 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: 4%; 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">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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) may, for Canadian federal income tax purposes,
    be 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
    <B>(&#147;Canadian Holders&#148;</B>). 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">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 declared by the Trust in each of 2006,
    2007 and 2008. 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 in the year
    declared, 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">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 Unitholder resulting from or
    arising out of such Unitholder 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
</DIV>

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    <BR>
    31
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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">
    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">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 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">

    <I><FONT style="font-family: 'Times New Roman', Times">The Trust
    could face negative tax consequences for previous
    transactions.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 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 $382&#160;million as of
    December&#160;31, 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: 4%; 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 December&#160;31,
    2008. This $58&#160;million has been paid, recorded as a
    long-term receivable and included in the $382&#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">

    <I><FONT style="font-family: 'Times New Roman', Times">Changes
    in legislation may have an adverse effect on
    Unitholders.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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><FONT style="font-family: 'Times New Roman', Times">Risks
    Relating To The Business Currently Conducted By
    Precision</FONT></B>
</DIV>

<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">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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;LNG&#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: 4%; 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 the 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
    natural gas 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
</DIV>

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    <BR>
    32
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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">
    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>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#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>&nbsp;</TD>
    <TD>    &#149;&#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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the safety record of the contractor 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>&nbsp;</TD>
    <TD>    &#149;&#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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the ability to provide drilling equipment adaptable to, and
    personnel familiar with, new technologies and drilling
    techniques; 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>&nbsp;</TD>
    <TD>    &#149;&#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: 4%; 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: 4%; 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 may 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: 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">

    <I><FONT style="font-family: 'Times New Roman', Times">Deteriorating
    conditions in the credit markets may adversely affect
    business.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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: 4%; 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 and/or 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>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    33
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<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">

    <I><FONT style="font-family: 'Times New Roman', Times">Capital
    overbuild in the drilling industry could lead to a decline in
    demand for Precision&#146;s services.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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: 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">

    <I><FONT style="font-family: 'Times New Roman', Times">Business
    in Precision&#146;s industry is seasonal and highly
    variable.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In Canada and the northern part of the United States, 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 counties and provincial and state
    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 areas of western Canada 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 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 winter
    season.
</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">

    <I><FONT style="font-family: 'Times New Roman', Times">New
    technology could place Precision at a disadvantage versus
    competitors.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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
    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. 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">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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>
    34
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<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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although Precision has 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: 4%; 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: 4%; 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>

<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">

    <I><FONT style="font-family: 'Times New Roman', Times">The
    business of Precision is affected by governmental regulations
    and policies.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 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">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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: 4%; 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: 4%; 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: 4%; 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
</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%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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">

    <I><FONT style="font-family: 'Times New Roman', Times">The Trust
    and Precision may face potential unknown liabilities.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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">

    <I><FONT style="font-family: 'Times New Roman', Times">Precision
    is subject to various risks from its foreign
    operations.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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">

    <I><FONT style="font-family: 'Times New Roman', Times">Precision&#146;s
    operations face many risks of interruption and casualty
    losses.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 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,
    2007 and 2008, all 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><FONT style="font-family: 'Times New Roman', Times">Risks
    Relating to the Acquisition</FONT></B>
</DIV>

<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">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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. The proceeds
    from the issuance of the Trust&#160;Units, Warrants and Senior
    Notes were used to reduce the obligations of Precision under the
    Unsecured Facility. See <I>&#147;Business of
    Precision&#160;&#151; Material Debt&#148;</I> and
    <I>&#147;Private Placement&#148;.</I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

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

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    36
</DIV><!-- END PAGE WIDTH -->
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<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="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    decrease the Trust&#146;s ability to satisfy its obligations
    under the Credit Facilities and the Senior Notes or other
    indebtedness and, if the Trust fails to comply with these
    requirements, an event of default could result;
</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increase the Trust&#146;s vulnerability to covenants relating to
    its indebtedness which may limit the Trust&#146;s ability to
    obtain additional financing for working capital, capital
    expenditures and other general corporate activities;
</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>&nbsp;</TD>
    <TD>    &#149;&#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>&nbsp;</TD>
    <TD>    &#149;&#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
    United States dollar will result in an increase or decrease in
    the Trust&#146;s United States 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increase the Trust&#146;s vulnerability to covenants relating to
    its indebtedness that may 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>&nbsp;</TD>
    <TD>    &#149;&#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>&nbsp;</TD>
    <TD>    &#149;&#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; 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>&nbsp;</TD>
    <TD>    &#149;&#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: 4%; 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 Secured Facility 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">

    <I><FONT style="font-family: 'Times New Roman', Times">Precision
    will require significant amounts of cash to service
    indebtedness.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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, the Senior Notes 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 Secured Facility 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. 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 and/or 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">

    <I><FONT style="font-family: 'Times New Roman', Times">The
    Credit Facilities and the Senior Notes contain restrictive
    covenants.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each of the Secured Facility, the Unsecured Facility and the
    Senior Notes 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.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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, the
    Unsecured Facility or the Senior Notes. 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. Upon the occurrence of an
    event of default under the Senior Notes, the noteholder could
    elect to declare all amounts outstanding under the Senior Notes
    to be immediately due and payable. If Precision is unable to
    repay those amounts payable under the Credit Facilities, the
    lenders under the Credit Facilities could proceed to foreclose
    or otherwise realize upon any collateral granted to them to
    secure that indebtedness. If the lenders or the noteholder
    accelerate the repayment of borrowings, Precision may not have
    sufficient assets to repay the Credit Facilities or the Senior
    Notes as well as other 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
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    37
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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">
    financing, it may not be on commercially reasonable terms or on
    terms that are acceptable. The restrictions in the Credit
    Facilities and the Senior Notes 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 and the Senior Notes.
</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">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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
    June&#160;10, 2009 (extended from March&#160;23, 2009)&#160;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 and/or upfront fees, reallocate within the term loans
    comprising the Secured Facility and between the Secured Facility
    and the Unsecured 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 and/or 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">

    <I><FONT style="font-family: 'Times New Roman', Times">All the
    anticipated benefits of the Acquisition may not be
    realized.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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">

    <I><FONT style="font-family: 'Times New Roman', Times">Grey Wolf
    may not be integrated successfully.</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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">

    <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>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 United States 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>

<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 This Rights Offering</FONT></B>
</DIV>

<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">

    <I><FONT style="font-family: 'Times New Roman', Times">Subscription
    Price not an Indication of Value</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Subscription Price is $3.00 for each Trust&#160;Unit
    purchased, which is a price equal to approximately 61% of the
    weighted average closing price for the Trust&#160;Units on the
    TSX for the five trading days immediately prior to the date
    hereof. The Subscription Price was determined by the Board of
    Trustees and does not necessarily bear any relationship to the
    book value of the Trust&#146;s assets, past operations, cash
    flows, losses, financial condition or any other established
    criteria for value. Unitholders and Exchangeable Unitholders
    should not consider the Subscription Price as an indication of
    the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    38
</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 align="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&#146;s value. After the date of this Rights Offering
    Circular, the Trust&#160;Units may trade at prices above or
    below the Subscription Price.
</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">

    <I><FONT style="font-family: 'Times New Roman', Times">Decline
    in the Trading Price May Occur</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The trading price of the Trust&#160;Units in the future may
    decline below the Subscription Price. The Trust can make no
    assurance that the Subscription Price will remain below any
    future trading price for the Trust&#160;Units. Future prices of
    the Trust&#160;Units may adjust positively or negatively
    depending on various factors including Precision&#146;s future
    revenues, Precision&#146;s operations, speculation in the trade
    or business press about Precision&#146;s operations, and overall
    conditions affecting Precision&#146;s businesses, economic
    trends and the securities markets.
</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">

    <I><FONT style="font-family: 'Times New Roman', Times">No
    Revocation of Right</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Even if the Trust&#160;Unit price declines below the
    Subscription Price for the Trust&#160;Units, resulting in a loss
    on Subscribers&#146; investments upon the exercise of the
    Subscribers&#146; Rights, Subscribers may not revoke or change
    the exercise of Rights after they send in their subscription
    forms and payment. The Trust may, in its discretion, extend the
    Rights Expiry Time in accordance with applicable Canadian
    securities laws and TSX policies. During any potential extension
    of time, the Trust&#160;Unit price may decline below the
    Subscription Price and result in a loss on Subscribers&#146;
    investments upon the exercise of the Rights. If the Rights
    Expiry Time is extended after Subscribers send in their
    subscription forms and payment, Subscribers still may not revoke
    or change the exercise of Rights.
</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">

    <I><FONT style="font-family: 'Times New Roman', Times">No
    Interest on Subscription Funds</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Trust cancels the Rights Offering, neither the Trust nor
    Computershare will have any obligation with respect to the
    Rights, except to return, without interest, any subscription
    payments to Subscribers.
</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">

    <I><FONT style="font-family: 'Times New Roman', Times">Participation
    in the Rights Offering is not Assured</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a Unitholder or an Exchangeable Unitholder exercises its
    Rights, it may not revoke the exercise for any reason unless the
    Trust amends the Rights Offering. If the Trust decides to
    terminate the Rights Offering, the Trust will not have any
    obligation with respect to the Rights except to return any
    subscription payments, without interest.
</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">

    <I><FONT style="font-family: 'Times New Roman', Times">Unitholders
    Need to Act Promptly and Follow Subscription
    Instructions</FONT></I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unitholders and Exchangeable Unitholders who desire to purchase
    Trust&#160;Units in this Rights Offering must act promptly to
    ensure that all required forms and payments are actually
    received by Computershare prior to 4:30&#160;p.m., Calgary time,
    on June&#160;3, 2009, the Rights Expiry Time, and any permitted
    extension of the Rights Expiry Time. If Unitholders fail to
    complete and sign the required subscription forms, send an
    incorrect payment amount, or otherwise fail to follow the
    subscription procedures that apply to the exercise of Rights by
    the holder, Computershare may, depending on the circumstances,
    reject the subscription or accept it to the extent of the
    payment received. Neither the Trust nor Computershare undertakes
    to Subscribers concerning, or will attempt to correct, an
    incomplete or incorrect subscription form or payment. The Trust
    has the sole discretion to determine whether an exercise of
    Rights properly follows the subscription procedures.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    39
</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">INQUIRIES</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Inquiries relating to this Rights Offering should be directed to
    one of:
</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">
    <I>By Mail to:</I>
</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">
    Suite&#160;600, 530&#160;&#151; 8th Avenue S.W.
</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, Alberta T2P 3S8
</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">
    Canada
</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">
    Attention: Corporate Actions
</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">
    <FONT style="white-space: nowrap">E-mail:</FONT>
    <U>corporateactions@computershare.com</U>
</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">
    Telephone:
    <FONT style="white-space: nowrap">(800)&#160;564-6253</FONT>
</DIV>

<DIV style="margin-top: 24pt; 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">
    <I>By Hand or Courier to:</I>
</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">
    9th Floor, 100 University Ave.
</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">
    Toronto, Ontario M5J 2Y1
</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">
    Canada
</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">
    <FONT style="white-space: nowrap">E-mail:</FONT>
    <U>corporateactions@computershare.com</U>
</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">
    Telephone:
    <FONT style="white-space: nowrap">(800)&#160;564-6253</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">
    <I>By Mail to:</I>
</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">
    P.O. Box 7021
</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">
    31 Adelaide St. E
</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">
    Toronto, Ontario M5C 3H2
</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">
    Canada
</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">
    Attention: Corporate Actions
</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">
    <FONT style="white-space: nowrap">E-mail:</FONT>
    <U>corporateactions@computershare.com</U>
</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">
    Telephone:
    <FONT style="white-space: nowrap">(800)&#160;564-6253</FONT>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>
<A name='115'>
<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">ADDITIONAL
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Documents affecting the rights of Unitholders, along with other
    information relating to the Trust, are available on SEDAR at
    <U>www.sedar.com</U> and EDGAR at <U>www.sec.gov.</U>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    40
</DIV><!-- END PAGE WIDTH -->
<!-- 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 II INFORMATION NOT REQUIRED TO BE SENT TO UNITHOLDERS" -->

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


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INFORMATION NOT REQUIRED TO BE SENT TO UNITHOLDERS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" 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"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Annual Information Form of Precision Drilling Trust for the
year ended December&nbsp;31, 2008, dated March&nbsp;30, 2009 (included as
part of the Form&nbsp;40-F filed with the Securities and Exchange
Commission on March&nbsp;30, 2009 and incorporated by reference
herein).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Audited comparative consolidated financial statements of
Precision Drilling Trust as at December&nbsp;31, 2008 and 2007, the
notes thereto and the auditors&#146; report thereon (included as
part of the Form&nbsp;40-F filed with the Securities and Exchange
Commission on March&nbsp;30, 2009 and incorporated by reference
herein).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.3</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">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, 2008 (included as part of the Form
40-F filed with the Securities and Exchange Commission on March
30, 2009 and incorporated by reference herein).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.4</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Information Circular of the
Trust dated April&nbsp;15, 2009 (filed
with the Securities and Exchange Commission as part of a Form
6-K report on April&nbsp;15, 2009 and incorporated by reference
herein).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Material change report dated August&nbsp;28, 2008 (included as part
of the Form&nbsp;F-10 filed with the Securities and Exchange
Commission on January&nbsp;22, 2009 and incorporated by reference
herein).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.6</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Material change report dated December&nbsp;19, 2008 (included as
part of the Form&nbsp;F-10 filed with the Securities and Exchange
Commission on January&nbsp;22, 2009 and incorporated by reference
herein).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.7</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Material change report dated December&nbsp;23, 2008 (included as
part of the Form&nbsp;F-10 filed with the Securities and Exchange
Commission on January&nbsp;22, 2009 and incorporated by reference
herein).</DIV></TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*3.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Consent of KPMG.</DIV></TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*4.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Power of attorney (pages III-2 of the Registration Statement).</DIV></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>

</TABLE>



<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">
<!-- link1 "PART III CONSENT TO SERVICE OF PROCESS" -->

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


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>CONSENT TO SERVICE OF PROCESS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>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="3%" 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>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" 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">
<!-- 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;&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-7 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
27<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of April, 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 administrator, Precision Drilling Corporation</FONT><BR><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/ Douglas J. Strong
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Douglas J. Strong&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left"><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;&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 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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;&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="3%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" 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" style="padding-top: 1em">
    <TD align="left" nowrap valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Kevin A. Neveu
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kevin A. Neveu</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Chief Executive Officer,<BR>
Precision Drilling Corporation
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April 27, 2009</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="left" nowrap valign="top">/s/ Douglas J. Strong
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Douglas J. Strong</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Chief Financial Officer,<BR>
Precision Drilling Corporation
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April 27, 2009</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="left" nowrap valign="top">/s/ Leonard C. Gambles
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leonard C. Gambles</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Chief Accounting Officer,<BR>
Precision Drilling Corporation
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April 27, 2009</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="left" nowrap valign="top">/s/ Robert J.S. Gibson
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Robert J.S. Gibson</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Trustee
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April 27, 2009</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="left" nowrap valign="top">/s/ Allen R. Hagerman, FCA
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allen R. Hagerman, FCA</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Trustee
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April 27, 2009</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="left" nowrap valign="top">/s/ Patrick M. Murray
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Patrick M. Murray</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Trustee
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April 27, 2009</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;&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 April&nbsp;27, 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><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="left">Kenneth J. Haddad&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left"><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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" 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"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Annual Information Form of Precision Drilling Trust for the
year ended December&nbsp;31, 2008, dated March&nbsp;30, 2009 (included as
part of the Form&nbsp;40-F filed with the Securities and Exchange
Commission on March&nbsp;30, 2009 and incorporated by reference
herein).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Audited comparative consolidated financial statements of
Precision Drilling Trust as at December&nbsp;31, 2008 and 2007, the
notes thereto and the auditors&#146; report thereon (included as
part of the Form&nbsp;40-F filed with the Securities and Exchange
Commission on March&nbsp;30, 2009 and incorporated by reference
herein).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.3</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">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, 2008 (included as part of the Form
40-F filed with the Securities and Exchange Commission on March
30, 2009 and incorporated by reference herein).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.4</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Information Circular of the
Trust dated April&nbsp;15, 2009 (filed
with the Securities and Exchange Commission as part of a Form
6-K report on April&nbsp;15, 2009 and incorporated by reference
herein).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Material change report dated August&nbsp;28, 2008 (included as part
of the Form&nbsp;F-10 filed with the Securities and Exchange
Commission on January&nbsp;22, 2009 and incorporated by reference
herein).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.6</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Material change report dated December&nbsp;19, 2008 (included as
part of the Form&nbsp;F-10 filed with the Securities and Exchange
Commission on January&nbsp;22, 2009 and incorporated by reference
herein).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.7</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Material change report dated December&nbsp;23, 2008 (included as
part of the Form&nbsp;F-10 filed with the Securities and Exchange
Commission on January&nbsp;22, 2009 and incorporated by reference
herein).</DIV></TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*3.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Consent of KPMG.</DIV></TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">*4.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Power of attorney (pages III-2 of the Registration Statement).</DIV></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>

</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio -->E-1<!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.1
<SEQUENCE>2
<FILENAME>h66553exv3w1.htm
<DESCRIPTION>EX-3.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv3w1</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;3.1</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="32%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<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>
    <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&nbsp;&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="white-space: nowrap">(403)&nbsp;691-8000</FONT></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>&nbsp;</TD>
    <TD align="left" valign="top">(403) 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;</TD>
    <TD align="left" valign="top"><u>www.kpmg.ca</u></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
report dated March&nbsp;23, 2009, with respect to the consolidated balance sheets of
Precision Drilling Trust as of December&nbsp;31, 2008 and 2007, and the related
consolidated statements of earnings and deficit, comprehensive income and cash flow for each of
the years in the three-year period ended December&nbsp;31, 2008,
incorporated by reference in Precision Drilling Trust&#146;s registration statement
on Form F-7.
</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">Calgary, Canada<BR>
April&nbsp;29, 2009
</DIV>



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



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>3
<FILENAME>h66553h6655300.gif
<DESCRIPTION>GRAPHIC
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
