1

Corporate Presentation August 2016

TSX : HWO

2

DISCLAIMER

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.

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 forward-looking statements. In particular, forward-looking 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.

2

3

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 da

• Owns and operates Canada’s largest fleet of stand alone snubbing units.

• Opportunity to expand organically or through acquisition 2015 Revenue

PNG $177.8 mm

Canada $32.1 mm

4

Shares outstanding

(Aug 15, 2016): 52.6 million

Share Price (Aug 15, 2016): $3.59

Market Cap (Aug 15, 2016): $188.9 million

Net Cash & Marketable Securities

(June 30, 2016): $50.5 million

30 Day Average Trading Volume 76,256

Trailing 12 Month Adjusted EBITDA

(June 30, 2016): $76.4 Million

Annual Dividend $0.198

Dividend Yield 5.52%

CORPORATE SNAPSHOT

Cyrus Capital 42%

Insiders 9%

Public 49%

5

Stable Growth T R A C K R E C O R D O F

4

0

50

100

150

200

250

2010 2011 2012 2013 2014 2015 TTM

Canadian Revenue PNG Revenue

32 33

40 42

49

64

76.4

27%

26%

27%

27%

29% 30%

36%

10%

15%

20%

25%

30%

35%

20

30

40

50

60

70

80

2010 2011 2012 2013 2014 2015 TTM

Adjusted EBITDA Adjusted EBITDA (%)

REVENUE (as at June 30, 2016)

ADJUSTED EBITDA (as at June 30, 2016)

6

Overview – Stable and Growing • Independent, established democracy and a stable business jurisdiction. • Part of the British Common wealth with a parliamentary government. • Government working with industry to develop nation (even in the current environment)

Papua New Guinea

Oil and Gas Activities – Long History, with New Growth • Oil exploration activities since 1920’s • Long-term LNG development commenced in 2008

Macro Drivers for Growth • Large un-explored resource base • 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

6

7

Overview – Stable and Growing • 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 • 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

LNG Development THE PNG ADVANTAGE

East Africa $8.76

West Africa $8.76

US Gulf Coast $10.76

West Australia $8.73

East Australia $14.49

PNG $7.59

Cost of LNG to Japan 10% return (US$/mmbtu)

Source: Wood Mackenzie

Proximity to growing Asian market’s provides incentive to

develop LNG projects despite industry downturn

8

PNG Outlook & Development

P’nyang

Juha

Kutubu

Kumul

Gobe Kopi

Triceratops InterOil New Discovery

PNG LNG Operating

Papua LNG Proposed

Port Moresby

Elk / Antelope

Hides and Angore

Valve and pigging station

Oil/gas fields

Oil export platform

LNG Facility

Oil / gas refinery

Proposed pipeline

Pipeline

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

• Shipments began Q2 2014

• Exploration to support expansion (e.g. P’nyang)

Elk / Antelope (Papua LNG): • Ownership: TOTAL, InterOil and OSL

• Reserve confirmation test underway to size LNG facility

• Development wells required to feed LNG facility.

OSL: • Targeting 4 to 6 exploration wells/yr. • Focusing investment in PNG to support

10 year growth platform. • Estimated 5 million BOE yet to be

discovered in PNG.

InterOil: • 14,000 unexplored acres.

8

NATURAL GAS + OIL PRODUCTION

Customer Base

9

Drill ing Landscape P A P U A N E W G U I N E A

Rig Type Owner / Operator Details Classification

Heli Portable

OSL / High Arctic 2 Rigs (103 /104) Tier 1

High Arctic 2 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

Heli Portable Work Over Rig High Arctic 1 Rig 102 Tier 1

Land Rigs Contractor C 1 Land based rig

Operator 1 Land based rig

High Arctic is the dominant Tier 1 drilling provider in PNG

10

PNG Drilling + Work Over Services

Rig 103 / 104 (leased from OSL) • Drilling services and support contracts with OSL through

mid 2016 (three year term)

• Strong relationship with OSL with a history of two 3-year contract renewals

Rig 115 / 116 (High Arctic owned) • AC self-erecting 1500 HP heli-portable triple

• 2 year drilling services contract with InterOil commencing with spud of first well

• Annualized operating revenue per rig of $30M USD

• including camp

Rig 102 (High Artic owned) • Only hydraulic work over rig in PNG

11

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.

PNG Equipment Rentals

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

MATTING CONTRACTS

11

41%

6% 53%

Term Contract

Prospective

Idle

11

12

Canadian Operations

Snubbing • 15 Stand Alone Units

• 3 Rig Assist Units

• Currently marketing 8 units

• 2016 addition of fully guided 285k and 170k units

Nitrogen • 11 Low Rate Unit

• 1 High Rate N2 Pumper

• 5 Nitrogen Transport

Rentals • High pressure BOP’s

OUR CUSTOMERS

Dominant Western Canadian Stand Alone Snubbing

Position Provides Platform to Expand

13

• 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

• Increasing number of high pressure horizontal wells has resulted in additional demand for higher capacity units

• Snubbing remains a necessary service for completions of long-reach horizontal wells

Canadian Snubbing Market # OF SNUBBING

UNITS AVAILABLE

AVERAGE WELL DEPTH (WESTERN CANADA)

13

High Arctic Owns and Operates Canada’s Largest

Fleet of Stand Alone Snubbing Units

18

11

8

6

2 2 High Arctic

Precision

Quattro

Powerstroke

Northern

Snub Co.

60% 58% 63%

70% 20% 24%

21% 19%

20% 18% 16% 11%

1,500

1,600

1,700

1,800

1,900

2,000

2,100

0%

20%

40%

60%

80%

100%

2012 2013 2014 2015

We

ll D

ep

th

We

ll Ty

pe

(%

)

Horizontal Vertical Other Avg. DepthSources: Geoactivity

Sources: Company Reports, High Arctic

14

$ millions (except per share amounts) 2016 2015

Revenue 98.2 93.4 5%

Adjusted EBITDA 36.9 24.5 51%

Adjusted EBITDA % of revenue 38% 26% 43% Net Earning per share (basic and diluted)(1)

0.33 0.22 50%

Fund From Ops. per share (basic)(1)

0.61 0.34 79%

Fund From Ops. per share (diluted)(1)

0.60 0.33 82%

Dividends per share(1) 0.10 0.10 -

Six months ended June 30,

$48.7 $43.5

$0.0

$20.0

$40.0

2015 2016

$14.1 $15.1

$0.0

$10.0

$20.0

2015 2016

$10.5

$13.4

$0.0

$5.0

$10.0

$15.0

2015 2016

REVENUE

ADJUSTED EBITDA

FUNDS FROM OPS.

(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.

Q2 Solid 2016 YTD Results

14

15

Financial Performance

INDEXED SHARE PRICE PERFORMANCE ENTERPRISE VALUE / EBITDA HISTORICAL RETURN ON EQUITY

High Arctic’s share price has historically outperformed industry peers

High Arctic consistently delivers strong returns to shareholders

High Arctic is trading at the lower end of the industry valuation spectrum

15

Sources: Lightyear Capital, Altacorp

Comps include AKT.A, ESN, TDG, PD, WRG, SVY, XDC

0%

50%

100%

150%

200%

250%

300%High Arctic

Competitors

0%

5%

10%

15%

20%

25%

30%

35% Competitors High / Low

High Arctic

0.0 x

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

7.0 x

8.0 x

9.0 x

10.0 x Competitors High / Low

High Arctic

16

$0.07

$0.15

$0.17

$0.20

$0.12

$0.01 $0.00

$0.10 $0.12

2012 2013 2014 2015 2016 YTD*

Dividends per share Repurchases per share

Growing Distributions T R A C K R E C O R D O F

Established history of dividend growth while maintaining conservative payout ratios

Additional distributions to shareholders through share repurchases

Disciplined distributions, without sacrificing capital resources to execute on growth opportunities

4

DISTRIBUTIONS TO SHAREHOLDERS THREE YEAR DIVIDEND GROWTH 1

1 Changes in dividend from June 30 2012 to June 30, 2016 2 Canadian energy services yield cos: AKT.A, CET, CFW, ESI, ESN, FRC, TDG, TCW and WRG

Canadian Energy Services Yield Cos2

2016 YTD figure shown as at July 31, 2016

32%

(100%)

(80%)

(60%)

(40%)

(20%)

0%

20%

40%

17

Balance Sheet • No Debt

Credit Facility • Maturity Aug. 31, 2017 • On side with all covenants

Significant Cash Balance

LIQUIDITY

Credit Facility $45 million

Cash $37.7 million

Short-term Investments $12.8 million

(as at June 30, 2016)

Liquidity and Balance Sheet W E L L P O S I T I O N E D W I T H S O L I D

Total $95.5 Million

18

Growth Strategy

• Depressed North American activity levels may lead to attractive valuations for acquisition targets. • Valuation gaps starting to narrow • Focus on quality operations, consistent with High Arctic’s operating culture.

• 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.

• Strong balance sheet and cash flows provide fuel for growth

• Organic growth of Canadian snubbing operations. • Fit for purpose solutions to meet customer needs.

• Goal is to maintain a solid balance sheet

18

19

Strategically Positioned for 2016 and Beyond

• The leader in PNG for contract drilling, well completions and rentals

• Exposure to long-term LNG development reduces exposure to short-term oil and gas volatility

• Conservative balance sheet with no debt

• Strong financial performance and growing EBITDA despite down-turn

• Positioned for opportunistic growth over next 24 months

• The leader in Canada for snubbing services

20

A P P E N D I X

21

• Partner, Cyrus Capital Partners • Managing Director, Cyrus Capital Partners Europe LLP

• Independent businessman • Former President and CEO of IROC Energy Services Corporation

• Partner at Warren Sinclair LLP, a law firm in Red Deer, AB. • A member of the Central Alberta Bar Association

• Independent geological consultant • Former Country Manager for Global Canada Geophysical Services

• Former EVP and General Counsel of High Arctic Energy Services • Member of the Law Society of Alberta and Institute of Chartered Accountants of Alberta

• Former VP of Operations Sylogist (a public consulting company) • Past executive roles in IT, courier and distribution

Appendix A: Board of Directors

Daniel Bordessa Independent

Thomas Alford Independent

Steven Vasey Independent

Christopher Warren Independent

Simon Batcup Independent

Michael Binnion Chairman of the Board

Dennis Sykora

• President and CEO of Questerre Energy Corporation • Chartered Accountant

21

• Former Federal Member of Parliament (Minister of Natural Resources; Minister of Finance) • Former senior investment banker with Merrill Lynch, Nesbitt Thomson and First Marathon

Joe Oliver Independent

• Direct of Investor Relations at Cyrus Capital Partners • Chartered Financial Analyst

Ember Shmitt Independent

22

Tim Braun CEO

Brian Peters, CA CFO

Michael Maguire VP, International

Daniel Beaulieu COO, Canada

• Over 35 years of oilfield services sector experience, primarily with large drilling contractors.

• 10+ years with Precision Drilling’s International drilling division

• Former COO of Saxon Energy Services

• Over 15 years of experience in corporate finance, accounting and audit. • Former CFO at IROC Energy Services, EnerMAX Services and Pure Energy Services

• Over 35 years of oilfield services sector experience. • Former business unit manager at Weatherford.

• Over 20 years of oilfield experience, including 7 years at Easternwell • Professional Engineer

Appendix B: Management Team

22

23

Contact us Tim Braun, CEO

Ph: (587) 318-3826

Email: tim.braun@haes.ca

Brian Peters, CFO

Ph: (587) 318-2218

Email: brian.peters@haes.ca

Analyst Coverage AltaCorp Capital Inc. Mark Westby

Industrial Alliance Elias Foscolos

National Bank Greg Coleman

PI Financial Brian Purdy

Website www.haes.ca

Head Office 444 – 5th Avenue SW, Suite 2010 Calgary, AB Canada T2P 2T8

TSX : HWO