Investor Presentation March 2017 TSX : HWO

1 Investor Presentation March 2017 TSX : HWO

2 DISCLAIMER Certain information contained within this presentation and statements made in conjunction with this presentation, including information and statements that contain words such as seek, anticipate, plan, continue, estimate, expect, may, will, project, predict, potential, targeting, intend, could, might, should, believe, forecast, can and similar expressions, are forwardlooking statements. In particular, forwardlooking statements in this presentation include, but are not limited to, statements with respect to future capital expenditures, future financial resources, anticipated equipment utilization levels, future oil and gas well activity, projections of market prices and costs, outcomes of specific events and trends in the oil and gas industry. These statements are derived from certain assumptions and analyses made by the Corporation based on its experience and perception of historical trends, current conditions, expected future developments and other factors that it believes are appropriate in the circumstances. These statements or predictions are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from the Corporation s expectations. These risks and uncertainties include the items discussed under the heading Risk Factors in the Corporations' most recently filed Annual Information Form as well as the Corporation s other public disclosure documents located on SEDAR (www.sedar.com). Consequently, all of the forward-looking information contained within this presentation and statements made in conjunction with this presentation are qualified by these cautionary statements and there can be no assurance that actual results or developments anticipated by the Company will be realized or that they will have the expected consequences or effects on the Corporation or its business or operations. Other than as required by applicable securities laws, the Corporation assumes no obligation to update publicly any such forward-looking information or statements, whether as a result of new information, future events or otherwise. 2

3 2016 Highlights Strong Financial Performance Delivered record adjusted EBITDA of $70.8 million (11% increase over 2015) Distributed $17 million to shareholders through dividends and share repurchases Maintained a strong balance sheet with no net debt Acquisition of a Service Rig Platform Acquisition of the third largest well servicing fleet in Canada which includes 85 service rigs (54 currently registered) and a substantial inventory of rental equipment Key management and majority of employees from Tervita Production Services have joined High Arctic, resulting in approximately 500 employees in Canada at year end Expanded geographical coverage in Western Canadian with seven new geographical locations in Cold Lake, Drayton Valley, Lloydminster, Blackfalds, Acheson and Whitecourt Larger client base that includes top tier exploration and production companies Facing tight markets with utilization at historic lows and pricing continuing to be pressured. However, there are signs of utilization improvement Evolving PNG Environment Acquisition of InterOil by ExxonMobil completed Ongoing negotiations with OilSearch in regards to Rig 103 / 104 Some activity emerging in the oilfield services M&A space

4 High Arctic Investment Thesis Solid track record Positioned for future growth Tier 1 Driller in PNG Canadian Well Servicing Leader Cyclical Timing Strong customer portfolio Multiple years of consecutive growth in adjusted EBITDA Industry leading history of shareholder returns Existing operating infrastructure to support organic growth in WCSB Solid balance sheet to capitalize on accretive growth opportunities Over 9 years of strong track record of operating in PNG The only operator of Tier 1 heli-portable drilling rigs in PNG Owns one of the largest fleets in WCSB with a strong operating base in oil sands corridor Recorded the 3 rd highest operating hours in WCSB in the past trailing twelve months Coming off the bottom of the cycle with a significantly reduced competition in the service rig sector Pricing will be driven by equipment availability and fundamentals rather than individual companies Solid client base that includes international supermajors and top tier Canadian E&P companies Number of clients with a long-term view on the energy markets with solid capital expenditure plans Experienced management Management team with significant depth of experience in energy services A diverse Board with North American and International experience

5 Business Overview High Arctic Energy Services is a market leader with diversified operations in Papua New Guinea (PNG) and Canada P N G Dominant market position for contract drilling, well completion and rental services in PNG Provides services in PNG to super majors and regional energy companies under long-term contracts Strong track record of 9 years of operations in PNG PNG s developing LNG industry reduces the impact of short-term oil & gas price volatility C a n a d a 2016 YE Revenue PNG $166.0 mm Canada $42.0 mm Owns and operates Canada s largest fleet of stand alone snubbing units Recently acquired service rig platform Flexibility to expand organically or through acquisition Solid platform established for growth across completion & production services landscape

6 CORPORATE SNAPSHOT Shares Outstanding (Mar 22, 2017): 53.2 million Share Price (Mar 22, 2017): $5.10 Market Cap (Mar 22, 2017): Net Cash & Marketable Securities (Dec 31, 2016): $271.3 million $8.1 million 30 Day Average Trading Volume (Mar 22, 2017): 113,094 Trailing 12 Month Adjusted EBITDA (Dec 31, 2016): $70.8 Million Annual Dividend $0.198 Cyrus Capital 42% Insiders 6% Public 52% Dividend Yield (Mar 22, 2017): 3.88%

4 7 T R A C K R E C O R D O F Stable Growth REVENUE (as at December 31, 2016) ADJUSTED EBITDA (as at December 31, 2016) 250 80 34% 35% 200 150 100 50 70 60 50 40 30 27% 32 33 26% 40 27% 27% 42 29% 49 30% 64 70.8 30% 25% 20% 15% 0 2010 2011 2012 2013 2014 2015 2016 20 2010 2011 2012 2013 2014 2015 2016 10% Canadian Revenue PNG Revenue Adjusted EBITDA Adjusted EBITDA (%) Revenue growth expected to extend into 2017 7 years of consecutive adjusted EBITDA growth

87 Papua New Guinea Overview Stable and Growing Independent, established democracy and a stable business jurisdiction Part of the British Commonwealth with a parliamentary government Government working with industry to develop nation s natural resources (even in the current environment) Oil and Gas Activities Long History, with New Growth Oil exploration activities since 1920 s with OSL being established in PNG since 1929 Long-term LNG development commenced in 2008 Exxon s recently completed acquisition of InterOil confirms its position in PNG Macro Drivers for Growth Large un-explored resource base wells continue to define parameters of fields Low cost source of LNG to Asian markets High quality operators with financial strength High quality gas (i.e. high heating content) Domestic natural gas electricity development to support economic growth Its only just begun OSL has drilled approximately 55 wells to date

9 LNG Development Cost of LNG to Japan 10% return (US$/mmbtu) THE PNG ADVANTAGE Overview Stable and Growing PNG s LNG projects are advantageously situated to supply Asian buyers Large natural gas reserves current estimates PNG LNG: 9 tcf, Papua LNG: 8.6 tcf, encourages long-term drilling Globally contracted LNG supply is expected to be short of total anticipated demand by 2020 Largest growth in demand for LNG is expected to come from Asia resulting from changes in: Government policy Environmental strategy to replace coal US Gulf Coast $10.76 West Africa $8.76 Source: Wood Mackenzie East Africa $8.76 West Australia $8.73 PNG $7.59 East Australia $14.49 Proximity to growing Asian market s provides incentive to develop LNG projects despite industry downturn

10 PNG Outlook & Development NATURAL GAS + OIL PRODUCTION PNG LNG: Exxon is the operator Total forecast production includes 9.0 tcf of natural gas and 200+ million bbls of associated liquids over 30 years 89 LNG cargoes delivered (Oct 2016) Exploration to support expansion (e.g. P nyang) OSL: Targeting 4 to 6 exploration wells/yr Ongoing / planned drilling programs in Antelope 7, Muruk and P nyang Focusing investment in PNG to support 10 year growth platform Customer Base Elk-Antelope: Ownership: TOTAL, InterOil / Exxon and OSL Proven certification of 5.2tcf (average certification) Development wells required to feed LNG facility Exxon: Completed acquisition of InterOil Significant unexplored acreage Declared interest in expanding LNG capacity in PNG Recently announced new natural gas discovery in PNG North Highlands P nyang Juha Hides and Angore Kutubu Gobe Kopi Kumul PNG LNG Operating Elk / Antelope Valve and pigging station Oil/gas fields LNG Facility Triceratops InterOil New Discovery Port Moresby Oil export platform Oil / gas refinery Pipeline Proposed pipeline

11 P A P U A N E W G U I N E A Drilling Landscape Rig Type Owner / Operator Details Classification OSL / High Arctic 2-1,500 HP Rigs (103 /104) Tier 1 Heli Portable High Arctic 2-1,500 HP Rigs (115 /116) Tier 1 Contractor A 1 Rig circa mid 1970's Tier 2 Contractor B 1 Rig modified for limited heli use Tier 2 Operator 1-400 HP Rig Tier 2 Heli Portable Work Over Rig High Arctic 1 Rig 102 Tier 1 Land Rigs Contractor C 1 Land based rig High Arctic is the dominant Tier 1 drilling provider in PNG

12 PNG Drilling and Work Over Services Rig 103 / 104 (leased from OSL) Drilling services and support contracts with OSL extended to July 31, 2017. Discussions ongoing for longer extension Strong relationship with OSL spanning over 9 years of operations with a history of two 3-year contract renewals Rig 115 / 116 (High Arctic owned) AC self-erecting 1500 HP heli-portable triple Rig 115: contracted to June, 2017 Rig 116: 2 year drilling services contract commencing with spud of first well Rig 102 (High Artic owned) Only hydraulic work over rig in PNG

13 PNG Equipment Rentals Matting Inventory exceeding 10,000 rental mats in PNG High Arctic has PNG distributor rights The largest rental supplier of Dura-Base mats outside of the USA Possible expansion into other countries with similar challenging environments Camp Services Owns and manages two 103 man Heli-portable man camps Operates and manages two 93 man Heli- portable drilling rig camps Other Rental Equipment Cranes (ranging from 30 ton to 160 ton) Rig moving trucks Forklifts River pumps

14 GEOGRAPHICAL FOOTPRINT Canadian Acheson Operations Montney Grande Prairie Cold Lake Oil Sands Cold Lake Quality Equipment Total Marketed Whitecourt Cardium Duvernay Lloydminster Red Deer / Blackfalds Service Rigs 85 54 Snubbing 18 9 OUR CUSTOMERS Nitrogen Pumpers 12 7 Nitrogen Bulkers 5 3 Geographical Footprint Facilities strategically located to cover major basins in WCSB Exposure to heavy oil, light oil and natural gas basins Strong Western Canadian Service Rig and Snubbing Presence Provides Platform to Expand

15 14 Concord Well Servicing Operates one of the largest fleet of service rigs in WCSB Substantial position in heavy oil corridor and expanding into new areas (ie. Montney and Duvernay) made up majority of the well servicing revenues in 2015 / 2016 Facing tight markets with utilization at historic lows, but appears to be coming off the bottom Strategically located to cover major plays in WCSB with exposure to heavy and light oil Solid client base that includes international supermajors top tier Canadian E&P companies Industry leading safety culture and record Ability to react to an evolving market will determine success 1150 1050 950 850 actual DECLINING MARKET SUPPLY forecast 750 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Source: CAODC, High Arctic Estimate 70% 60% 50% 40% 30% 20% 10% High Arctic Industry Average INDUSTRY LEADING UTILIZATION 0% Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 High Arctic Utilization calculated on 68 registered rigs (Sept - Nov, 2016), 54 registered rigs (Dec 2016 Feb 2017) Source: CAODC

Well Type (%) 16 15 Canadian Snubbing # OF SNUBBING UNITS AVAILABLE High Arctic is a market leader for stand alone snubbing in Western Canada Jointed pipe snubbing allows rotation of pipe to over come friction in extended reach horizontal wells 8 6 2 2 11 18 High Arctic Precision Quattro Powerstroke Northern Snub Co. Increasing number of high pressure horizontal wells has resulted in additional demand for higher capacity units Recent capital additions have been directly aimed toward higher capacity units Sources: Company Reports, High Arctic 100% 80% WELL TYPE (ALBERTA) Snubbing remains a necessary service for completions of long-reach horizontal wells 60% 40% High Arctic Owns and Operates Canada s Largest Fleet of Stand Alone Snubbing Units 20% 0% 2010 2011 2012 2013 2014 2015 2016 Vertical / Directional Horizontal Source: Alberta Energy Regulators

Q4 REVENUE 17 16 2016 Year End Results $ millions (except per share amounts) Year ended December 31, 2016 2015 % Change $60.0 $40.0 $20.0 $0.0 $58.0 $62.3 2015 2016 Revenue 208.0 209.9 (1%) Adjusted EBITDA 70.8 64.0 11% Adjusted EBITDA % of revenue 34% 30% 12% Net Earning per share (diluted) (1) Fund From Ops. per share (diluted) (1) 0.85 0.58 47% 0.84 0.57 47% Dividends per share (1) 0.198 0.198 0% (1) The restricted shares held by a trustee under the Executive and Director Incentive Share Plan are included in the shares outstanding. The number of shares used in calculating the net earnings per share amounts is determined differently as explained in the Financial Statements. ADJUSTED EBITDA $20.0 $20.8 $18.3 $10.0 $0.0 2015 2016 FUNDS FROM OPS. $20.0 $19.8 $15.0 $15.9 $10.0 $5.0 $0.0 2015 2016

18 Financial Performance 25% 20% 15% 10% 5% HISTORICAL RETURN ON EQUITY Competitors High / Low High Arctic NET DEBT / EBITDA ENTERPRISE VALUE / EBITDA 0% 0.0 x 0.0 x 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 Sources: Altacorp, Company Reports Comps include ESI, PD, SVY, TDG, WRG, XDC 5.0 x 4.0 x 3.0 x 2.0 x 1.0 x Competitors High / Low High Arctic High Arctic s share price has historically outperformed industry peers High Arctic maintained a strong balance sheet throughout the industry downturn High Arctic is trading at the lower end of the industry valuation spectrum 10.0 x 9.0 x 8.0 x 7.0 x 6.0 x 5.0 x 4.0 x 3.0 x 2.0 x 1.0 x Competitors High / Low High Arctic

Distributions per share ($) 4 19 T R A C K R E C O R D O F Shareholder Returns $0.25 DISTRIBUTIONS TO SHAREHOLDERS (per share) INDEXED SHARE PRICE PERFORMANCE 300% $0.20 $0.17 $0.20 $0.20 250% $0.15 $0.15 200% $0.10 $0.07 $0.10 $0.12 150% 100% $0.05 $0.05 50% $0.01 $0.00 $- Sources: Company Reports Comps include ESI, PD, SVY, TDG, WRG, XDC 2012 2013 2014 2015 2016 2017 YTD Dividends per share Repurchases per share 0% Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 High Arctic Competitors High Arctic has maintained disciplined distributions, without sacrificing capital to execute on growth opportunities High Arctic has delivered industry leading returns to shareholders

20 W E L L P O S I T I O N E D W I T H S O L I D Balance Sheet and Liquidity LIQUIDITY (as at December 31, 2016) Balance Sheet Net Debt of nil Funded Debt / EBITDA ratio: < 0.5x Credit Facility Maturity Aug. 31, 2019 On side with all covenants Non-Cash Working Capital $25.3 million Short-term Investments $4.8 million Cash $27.3 million Credit Facility Available $21.0 million Total $78.0 Million

21 Growth Strategy Depressed North American activity levels may lead to attractive valuations for additional acquisition targets Valuation gaps starting to narrow Focus on quality operations, consistent with High Arctic s operating culture Potential for upward pricing pressure from low personnel & equipment availability Equipment availability will absolutely drive economics Diversification is key to long-term strength of High Arctic Geographic management team with strong North American and International experience Complementary product lines capture more of the customer value chain Exposure to light oil, heavy oil and natural gas production Organic growth Fit for purpose solutions to meet customer needs New opportunities arising for service rigs and snubbing units Solid operating base and strong balance sheet to support further accretive growth

22 2017 Strategic Priorities Solidify High Arctic s leading position in PNG as the driller of choice Organic growth in the WCSB through the recently acquired service rig platform (Concord Well Servicing) Actively pursue accretive acquisition opportunities within a depressed North American energy services sector Geographically and Operationally Diversified Energy Services Company

A P P E N D I X 23

24 Contact us Thomas Alford, CEO Ph: (587) 318-3826 Email: tom.alford@haes.ca Brian Peters, CFO Ph: (587) 318-2218 Email: brian.peters@haes.ca Head Office 700 2 nd Street SW, Suite 500 Calgary, AB Canada T2P 2W2 Analyst Coverage Acumen Capital AltaCorp Capital Inc. Cormark Securities Industrial Alliance National Bank PI Financial Brian Pow Aaron MacNeil Jason Zhang Elias Foscolos Greg Coleman Brian Purdy Website www.haes.ca TSX : HWO