Precision Drilling Trust (the 'Trust') was created by a declaration of trust dated September 22, 2005 and is governed by a board of trustees composed of three members. The board of trustees has delegated a number of its duties to Precision Drilling Corporation (the 'Corporation'), administrator of the Trust. The Corporation is governed by a board of twelve directors and managed by our executive management team. Our investors hold units of the Trust or, if eligible to do so, Class B Limited Partnership units of Precision Drilling Limited Partnership ('PDLP'), a subsidiary of the Trust, whose units are the economic equivalent of, and exchangeable on a one-for-one basis into, units of the Trust. Holders of units of the Trust and PDLP are herein referred to as 'unitholders'.

At Precision, corporate governance means more than simply complying with a code. We believe that a strong culture of corporate governance and ethical behavior in decision-making is fundamental to the way we do business. We therefore keep a close eye on best practices and constantly develop and improve our own governance framework accordingly. We continued to enhance our focus on good corporate governance by building on our existing practices.

Some examples of the Trust's governance include:

• 100% of the trustees of the Trust are independent (3 out of 3);
• 92% of the directors of the Corporation are independent (11 out of 12);
• All members of the audit, compensation, and corporate governance and nominating committees are independent;
• An independent director serves as the Chairman of the board of directors;
• The independent members of the board of directors meet regularly without the presence of management;
• The board of directors oversees and approves the annual strategic plan;
• The board of directors' committees and chairs operate under written charters setting out their responsibilities;
• The Trust has unit ownership guidelines for trustees, directors, officers and senior management;
• The Trust has a joint code of business conduct and ethics policy to ensure that matters are handled ethically and with integrity;
• The board of directors conducts an annual self-evaluation to determine whether it and its committees are functioning effectively;
• The Trust has a whistleblower hotline to facilitate anonymous reporting of any questionable activities; and
• The Trust continues to evaluate best practices in corporate governance and incorporate those that are in the best interests of unitholders.
• The Trust's corporate governance structures, systems and practices conform with the applicable governance rules and guidelines established by the Canadian Securities Administrators and the United States Securities and Exchange Commission. The units of the Trust are listed for trading on the Toronto Stock Exchange and the New York Stock Exchange. A complete description of the Trust's corporate governance practices is set out in the Trust's 2009 Information Circular.