Mr. Colin Dease reports

AKITA ANNOUNCES COMPLETION OF ACQUISITION OF FOX DRILLING AND ELIMINATION OF DUAL CLASS SHARE STRUCTURE

Akita Drilling Ltd. has completed its previously announced acquisition of Fox Drilling Limited Partnership and its general partner, Fox Drilling Inc., from Paramount Resources Ltd., together with the elimination of the company's dual-class share structure.

Pursuant to the acquisition, Akita has acquired all of Paramount's interests in Fox, a privately held drilling contractor that operates a fleet of six triple drilling rigs in the Western Canadian sedimentary basin, five of which are high-specification AC walking rigs, in consideration for the issuance of 19,264,270 common shares (as defined below) to Paramount. Paramount has announced that, in accordance with the purchase agreement governing the acquisition, it will distribute such common shares pro rata on July 16, 2026, to its shareholders of record as of July 9, 2026.

Concurrent with the closing of the acquisition, Akita entered into a rig utilization agreement with Paramount for a term of three years, pursuant to which Paramount has committed to utilize rigs of Akita for an aggregate total of 2,700 rig days during the term.

Immediately prior to the closing of the acquisition, Akita completed the share reorganization, pursuant to which, among other things, each outstanding Class A non-voting share was changed into one Class B common share, and the company's Class B common shares were redesignated as common shares. Accordingly, Akita has one class of outstanding equity securities, being the common shares, which carry one vote per share. Starting at the market open on July 6, 2026, the common shares will trade on the Toronto Stock Exchange under the symbol AKT, and the symbols AKT.A and AKT.B will be delisted.

Shareholder approvals

The special resolution to approve the share reorganization was approved by an overwhelming majority of holders of Class A shares and holders of Class B common shares, in each case, voting separately as a class, at a special meeting of shareholders held on June 29, 2026.

Normal course issuer bid

As a consequence of the share reorganization, the terms of Akita's normal course issuer bid have been amended to permit Akita to repurchase common shares under the NCIB in lieu of the Class A shares previously authorized for repurchase. As of June 29, 2026, Akita had repurchased for cancellation 1,522,585 Class A shares under its NCIB for aggregate consideration of $3,631,697 at a weighted-average price of $2.39 per Class A share. Accordingly, under its amended NCIB, Akita is authorized to repurchase for cancellation up to 381,435 common shares until Aug. 5, 2026. The terms of Akita's NCIB are otherwise unchanged.

Board reconstitution and management

In connection with the closing of the transaction, James H.T. Riddell and Jackson Riddell have been appointed to the board of directors of Akita. Harish K. Mohan, D. Neil Yeates and Henry G. Wilmot have retired from the board of directors. Akita thanks Mr. Mohan, Mr. Yeates and Mr. Wilmot for their contributions to Akita over the years. Linda Southern-Heathcott continues to serve as chair of the board.

Akita will continue to be led by Colin Dease, president and chief executive officer, and Darcy Reynolds, vice-president, finance, and chief financial officer.

About Akita Drilling Ltd.

Akita Drilling is a leading Canadian drilling service company with operations across key basins in Western Canada and select U.S. markets. The company is focused on delivering safe, high performance drilling services and long-term value to customers and shareholders.

We seek Safe Harbor.