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

About this update from Akita Drilling Ltd. Class A

CALGARY, AB, June 30, 2026 /CNW/ - AKITA Drilling Ltd. (TSX: AKT.A) (TSX: AKT.B) AKITA Drilling Ltd. ("AKITA" or the "Company") is pleased to announce the closing of its previously announced acquisition (the "Acquisition") of Fox Drilling Limited Partnership and its general partner, Fox Drilling Inc. (together, "Fox"), from Paramount Resources Ltd. ("Paramount") , together with the completion of the elimination of the Company's dual class share structure (the "Share Reorganization", and together with the Acquisition, the "Transaction"). 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 ("Class A Share") was changed into one Class B Common Share, and the Company's Class B Common Shares were redesignated as "Common Shares" ("Common Shares"). Accordingly, AKITA now 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 TSX 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 (the "Meeting"). Normal Course Issuer Bid As a consequence of the Share Reorganizatio...

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