As an issuer whose Trust Units are listed on the Toronto Stock Exchange (TSX) and New York Stock Exchange (NYSE), the Trust is subject to various guidelines, requirements and disclosure rules governing the independence of the members of the Board of Trustees, the Board of Directors and Committees, including those requirements and rules imposed by the Governance Guidelines, the Audit Committee Rules, the Disclosure Rules, the NYSE Rules and the Sarbanes-Oxley Act.

The Trust meets the standards of the Governance Guidelines and Audit Committee Rules regarding independence and conforms to the standards of the applicable NYSE Rules regarding independent board members.

On the recommendation of the Corporate Governance and Nominating Committee, the Board of Trustees has affirmatively determined that each of the three members of the Board of Trustees have no direct or indirect material relationship with the Trust and are therefore independent. On this basis, the following members of the Board of Trustees are independent: Robert J.S. Gibson, Patrick M. Murray and Allen R. Hagerman.

On the recommendation of the Corporate Governance and Nominating Committee, the Board of Directors has affirmatively determined that eight of the nine members of the Board of Directors have no direct or indirect material relationship with Precision or the Trust and are therefore independent under the Governance Guidelines and Audit Committee Rules. On this basis, the following eight members of the Board of Directors are independent: W.C. (Mickey) Dunn, Robert J.S. Gibson, Allen R. Hagerman, Stephen J.J. Letwin, Patrick M. Murray, Frederick W. Pheasey, Robert L. Phillips and Brian A. Felesky, CM, Q.C. Kevin A. Neveu, the Chief Executive Officer of Precision, is not independent because of his executive office with Precision.

Please refer to Precision's 2008 Information Circular for additional information.

March 2008