News Release. fourth quarter of

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1 News Release May 7, 2014 For Immediate Release Xtreme Drilling and Coil Services Announces Record First Quarter Results Calgary, Alberta (TSX XDC) Xtreme Drilling and Coil Services ( Xtreme or the Company ) announces summary results for the three months ended March 31, It is anticipated that filing will take place on SEDAR of the Interim Consolidated Financial Statements and Management's Discussion and Analysis by Friday, May 9, Highlights Q Record adjusted EBITDA of $20.6 million. This is an increase of 5% from $ 19.7 million in the previous quarter and 7% over the first quarter of The record quarter was driven by the Coil Services segment where operating margin increased to $9.7 million on $22.3 million of revenue. This compares to the full year 2013 when the Coil Services segment reported $20.6 million on $56.7 million in revenue. The Drilling Services segment had a slight decrease in operating margin for the quarter to $15.0 million on $47.4 million in revenue; as compared to $15.7 million in operating margin on $44.6 million in revenue during the fourth quarter of This was due to the fact there were three rigs offline for recertification during the quarter. This reduced utilization by 84 days. Two additional rigs were being prepared for deployment to India and they were compensated at a reduced standby rate. Record revenue of $69.7 million in the first quarter of 2014, an increase of $7.0 million or 11% over the previous quarter and 29% over the first quarter of The increasee in revenue for the quarter was primarily due to an increase in the average revenuee per day in the Coil Services segment. Average revenuee per day increased to $57,474 from $51,162 in the fourth quarter of In addition the continued weakening of the Canadian Dollar accounted for approximately $2.6 million of the quarterly increase in revenue. The Company had 2,130 operating days, or 11 fewer days in the quarter than the fourth quarter of This resulted in a utilization rate of 88% compared to 90% in the fourth quarter The Drilling Segment achieved utilization of 90% onn 1,742 operating days. This was comprised of 1,538 operating days for the US Drilling fleet and 204 days for the Canadian Drilling fleet, which results in a utilization of 93% and 74%, respectively. During the first quarter, the US XDR drilling division performed a major overhaul on one rig and recertification on two additional rigs. This led to a decrease of 56 operating days in the US from the prior quarter. In addition, two rigs were being upgraded, modified and prepared for mobilization to India. These two rigs are included in operating days as they earned reducedd standby revenue during modification. In Canada, the Company s three drilling rigs operated for 204 days, which was down four days from the prior quarter due to the onset of the break-up period towards the end of the first quarter.

2 For the quarter, the Coil Services Segment achieved utilization of 78% on 388 operating days. This was comprised of a 97% utilization rate for the two XSR units in Saudi Arabia and an 84% utilization rate for the four actively marketed XSR units in the US. Included in the overall utilization is one additional unit that is currently idle in the US but marketed internationally. The US XSR units for the quarter averaged 19 operating days per month on each operating unit. After quarter end, Company had to idle one of the operating XSR units in South Texas due to an incident. It is anticipated that the unit will undergo repairs for approximately eight weeks and the estimated impact on revenues for the second quarter of 2014 will be approximately $2.0 million. Net Income of $2.9 million for the first quarter of 2014, or $.04 per fully diluted share. The Company ended the quarter with $121.8 million USD-funded debt on its $150 million USdollar denominated revolving credit facility. The funded debt to EBITDA ratio was 1.61 at quarter end. Capital expenditures totaled $8.7 million for the first quarter. In addition, Xtreme funded $10.5 million USD of the $13.5 million USD purchase of the Saudi Arabian joint venture partner. Currently, the Company anticipates full year 2014 capital expenditures to be between $58 and $62 million. This amount includes growth capital for two new XSR coil tubing units to be deployed in the second half of 2014, procurement of long lead items for two additional XSR coil tubing units scheduled for 2015, modifications and upgrades for the two XDR rigs mobilizing to India, the purchase of the Saudi JV and maintenance capital for the existing fleet.. The Company exited the quarter with $54.4 million in working capital. Conference Call Details Xtreme has scheduled a conference call on Thursday, May 8, 2014, beginning promptly at 10:00 am MDT (11:00 am CDT; 12:00 am EDT) to discuss the 2014 first quarter financial and operating results. Tom Wood, Chief Executive Officer, will host the conference call with participation from Matt Porter, Chief Financial Officer. Conference operator dial in numbers To participate in the conference call, please dial in as follows approximately ten minutes before the start time in your time zone (North America Toll Free) or (Alternate) Webcast link: An audio replay of the call will be available until Thursday, May 15, To access the replay, call or and enter pass code

3 Selected Quarterly Financial Information Three months ended Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Revenue 69,703 62,681 59,692 53,268 Adjusted EBITDA 1 20,635 19,734 17,783 16,847 Adjusted EBITDA as a percentage of Revenue Adjusted EBITDA per share 1 - basic ($) Net income (loss) 2,896 (7,441) 3, Net income (loss) per share - basic ($) 0.04 (0.09) Capital assets 423, , , ,294 Total assets 532, , , ,326 Operating days 1 2,130 2,141 2,062 1,911 Utilization (percentage) - XDR Utilization (percentage) - XSR Utilization (percentage) - Total Weighted average rigs in service Total rigs, end of quarter Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Revenue 54,182 51,813 48,948 40,180 Adjusted EBITDA 1 19,234 15,029 4,459 7,695 Adjusted EBITDA as a percentage of Revenue Adjusted EBITDA per share 1 - basic ($) Net (loss) income 4,487 4,579 (2,935) (2,059) Net (loss) income per share - basic ($) (0.04) (0.03) Capital assets 417, , , ,397 Total assets 508, , , ,254 Operating days 1 1,949 1,891 1,742 1,494 Utilization (percentage) - XDR Utilization (percentage) - XSR Utilization (percentage) - Total Weighted average rigs in service Total rigs, end of quarter See Non-GAAP measures

4 Excerpt from Management s Discussion and Analysis for the three months ended March 31, 2014 Outlook For four consecutive quarters, Xtreme has posted increased revenue and EBITDA. Along with improving performance, management continues to explore markets to deploy the industry leading technology that has set Xtreme apart from its competitors. One of the primary objectives in 2014 is to leverage this reputation into growth opportunities. As previously announced, the Company is in the process of deploying two existing XDR 300 rigs to India. These rigs are expected to set a new performance standard in this market while earning a higher rate than would be achieved in the US or Canada. In addition, Xtreme will deliver two new build XSR coiled tubing units in the fourth quarter of 2014 to the Eagle Ford in South Texas. These two units will complement the four existing units which have built an impressive backlog of work due to their unmatched depth capacity and service quality. Xtreme is also focused on growth beyond 2014 as the Coil Services segment has clearly demonstrated the value proposition both in completion services in the United States and coiled tubing drilling in Saudi Arabia. Customer inquiries and requests for proposal have increased over the past six months and management is developing strategies beyond 2014 to address this customer demand. Drilling Services (XDR) The Company finished the first quarter with 15 of 18 XDR rigs in the US operating. Of the three rigs not in operation, one was down for extensive maintenance with a target to begin work on a new long term contract in Colorado around May 15. The other two rigs were in Houston going through an overhaul in anticipation of mobilizing to India in early May. They remain on standby rate while in transit and should begin operations in the third quarter on long term contracts. In Canada, one of three rigs was operating at quarter end. It is anticipated one rig will work through spring break up with the other two down due to the normal seasonality in that market. The Company recently signed two eighteen month contracts from an existing customer in the Bakken and a six month contract in the Greater Wattenberg field. This brings the total contracted days in the 21 rig Drilling Services segment to approximately 5,265 for the remainder of 2014 and 2,350 days for Coil Services (XSR) The seven unit Coil Services segment had a very strong quarter. XSR represented 32% of revenue and 39% of the operating margin during the quarter, both all-time highs for this segment. Xtreme believes that Coil Services both in the US and Saudi Arabia has the opportunity to be the next driver of growth. The technology has been developed over the past seven years and value proven over the last two. As resource plays mature, they require new technology to drive down development costs and consistency to maximize the value. Xtreme as demonstrated this value to customers as they are now willing to pay up for the greater efficiency and ultimate productivity of wells using Xtreme s XSR units. This is evidenced as revenue and operating margin per day have increased in the segment from $40,860 and $13,962 respectively in the first quarter of 2013 to $57,461 and $24,873 in the first quarter of 2014.

5 Xtreme Drilling and Coil Services Corp. Interim Consolidated Statements of Financial Position (in thousands of Canadian dollars) (unaudited) Assets Mar 31, 2014 Dec 31, 2013 Current assets Cash and cash equivalents 8,030 12,220 Accounts receivable 68,975 60,084 Other receivables 1,378 1,306 Prepaid expenses and other 4,424 2,491 Income tax recoverable Inventory 8,752 8,181 91,711 84,744 Non-current assets Deferred tax asset 13,360 14,536 Property and equipment 423, ,523 Intangible assets 3,841 3,917 Total Assets 532, ,720 Liabilities and Equity Current liabilities Accounts payable and accrued liabilities 35,612 28,051 Fair value of non-controlling interest liability 12,763 Current portion of provision 1,658 Current portion of long-term debt ,270 41,483 Long-term liabilities Fair value of non-controlling interest liability 1,596 Long-term portion of provision 1,658 Long-term debt 133, ,407 Total Liabilities 172, ,486 Shareholders equity Share capital 329, ,416 Share option reserve 12,700 12,419 Accumulated deficit (10,180) (12,697) Foreign currency translation reserve 27,610 15, , ,281 Non-controlling interest 953 Total Shareholders Equity 359, ,234 Total Liabilities and Shareholders Equity 532, ,720

6 Xtreme Drilling and Coil Services Corp. Interim Consolidated Statements of Income For the three months ended March 31, 2014 and 2013 (in thousands of Canadian dollars, except share and per share data) (unaudited) Revenue 69,703 54,182 Expenses Operating expenses 45,067 32,397 General and administrative expenses 4, Change in fair value of non-controlling interest liability (206) Depreciation of property and equipment 13,230 8,543 Amortization of intangibles Stock-based compensation Foreign exchange (gain) loss (11) 1,873 Loss on sale of equipment Other expense Interest expense 1,226 2,119 Income before tax for the period 5,350 6,425 Tax expense Current 1, Deferred 1,170 1,220 Total tax expense 2,454 1,938 Net income for the period 2,896 4,487 Net income attributable to: Owners of the parent 2,896 4,049 Non-controlling interest 438 2,896 4,487 Net income per common share attributable to equity owners of the parent basic diluted Weighted average number of common shares basic 81,203,779 80,790,315 diluted 82,086,317 80,981,993

7 Xtreme Drilling and Coil Services Corp. Interim Consolidated Statements of Comprehensive Income For the three months ended March 31, 2014 and 2013 (in thousands of Canadian dollars) (unaudited) Net income for the period 2,896 4,487 Other comprehensive income Items may be subsequently reclassified to profit or loss Unrealized gain on translating financial statements of foreign operations 12,467 7,708 Dividends declared to non-controlling interest partner (1,332) Comprehensive income for the period 14,031 12,195

8 Xtreme Drilling and Coil Services Corp. Interim Consolidated Statements of Changes in Equity For the three months ended March 31, 2014 and 2013 (in thousands of Canadian dollars) (unaudited) Equity attributable to the owners of the parent Share capital Share option reserve Accumulated deficit Foreign currency translation reserve Total Noncontrolling interest Total shareholders equity Balance at Jan 1, ,197 11,572 (12,370) (11,314) 315,085 2, ,007 Net income for the year 4,049 4, ,487 Other comprehensive income Currency translation differences 7,519 7, ,708 Total comprehensive income 4,049 7,519 11, ,195 Employee share option scheme: Value of employees services Proceeds from shares issued (13) (13) (13) Total transactions with owners (13) Balance at Mar 31, ,184 11,792 (8,260) (3,795) 326,921 3, ,471 Balance at Jan 1, ,416 12,419 (12,697) 15, , ,234 Net income for the year 2,896 2,896 2,896 Other comprehensive income Currency translation differences 12,467 12,467 12,467 Dividends declared to noncontrolling interest partner (1,332) (1,332) Settlement for the purchase of non-controlling interest (379) (379) 379 partner Total comprehensive income 2,517 12,467 14,984 (953) 14,031 Employee share option scheme: Value of employee services ,154 1,154 Proceeds from shares issued 787 (436) Total transactions with owners 1, ,504 1,504 Balance at Mar 31, ,639 12,700 (10,180) 27, , ,769

9 Xtreme Drilling and Coil Services Corp. Interim Consolidated Statements of Cash Flows For the three months ended March 31, 2014 and 2013 (in thousands of Canadian dollars) (unaudited) Cash flow provided by: Operating activities Net income for the period 2,896 4,487 Items not affecting cash: Depreciation and amortization 13,306 8,619 Stock-based compensation Loss on sale of equipment Change in fair value of non-controlling interest liability (206) Interest expense 1,226 2,119 Interest paid (428) (2,094) Amortization of debt issuance costs (111) Unrealized foreign exchange (gain) loss (11) 1,873 Current tax expense 1, Deferred tax expense 1,170 1,220 Changes in items of working capital (9,712) 418 Net cash generated from operating activities 10,355 17,522 Financing activities Proceeds from exercise of stock options 787 Repayment of long-term debt (701) (5,238) Repayment of operating facility (1,393) Debt issuance cost 78 (22) Net cash generated from (used in) financing activities 164 (6,653) Investing activities Proceeds from sale of equipment 1, Capital expenditures (8,733) (3,517) Buyout of non-controlling interest partner (11,628) Changes in items of working capital relating to capital items 5,428 Net cash used in investing activities (13,896) (3,008) Effect of exchange rate changes on cash and cash equivalents (813) 105 (Decrease) increase in cash and cash equivalents (4,190) 7,966 Cash and cash equivalents - beginning of period 12,220 5,921 Cash and cash equivalents - end of period 8,030 13,887

10 Reader Advisory This news release, or documents incorporated herein, contains forward-looking statements ( FLS ). More particularly, this news release contains statements that may relate to contracting, marketing, financing, construction, modifications, deployment, operation, utilization of drilling rigs in the Company s current and future fleet, and any potential outcome relating to claims and litigation. Further, the FLS herein may relate to trade credit insurance carried by the Company to mitigate receivables collection risk. Although Xtreme believes expectations reflected in these FLS are reasonable, readers should not place undue reliance on them because Xtreme can give no assurance they will prove to be correct. There are many factors that could cause FLS not to be correct, including risks and uncertainties inherent in the Company's business. These statements are based on certain factors and assumptions including, but not limited to: the assessment of current and projected future operations; ongoing and future strategic business alliances, negotiations and opportunities to enter new, extend or complete existing contracts; the availability and cost of financing; foreign currency exchange rates; timing and magnitude of capital expenditures; expenses and other variables affecting rig operation, modification and construction; the ability and commitment of vendors to provide rig component equipment, services and supplies, including labor, in a cost-effective and timely manner; the issuance of applied-for patents; changes in tax rates; and government regulations. Although Xtreme considers the assumptions used to prepare this news release reasonable, based on information available to management as of May 7, 2014, ultimately the assumptions may prove to be incorrect. Forward-looking statements are also subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from management's current expectations. These factors include, but are not limited to: the cyclical nature of drilling market demand, foreign currency exchange rates, and commodity prices; access to credit and to equity markets; the availability of qualified personnel; vendor-provided rig components; and, competition for customers. Management s assumptions considered the following: compliance with the terms of the Company s current credit facility; ongoing access to key supplies and components required to continue operating and maintaining equipment, including fuel; continued successful performance of drilling and related equipment; expectations regarding gross margin; recruitment and retention of qualified personnel; continuation or extension of existing long-term or multi-well contracts; revenue expectations related to shorter-term drilling opportunities; willingness and ability of customers to remit amounts owing to Xtreme in accordance with normal industry practices; and management of accounts receivable in direct relation to revenue generation. In preparing this news release, management considered the following risk factors: fluctuations in crude oil and natural gas prices, supply and demand; fluctuation in foreign currency exchange and interest rates; financial stability of Xtreme s customers; current and future applications for Xtreme s proprietary technology; competition from other drilling contractors; regulatory and economic conditions in regions where Xtreme operates; environmental constraints; changes to government legislation; international trade barriers or restrictions; and, where appropriate, global political and military events.

11 Financial outlook information contained in this news release about prospective results of operations, financial position or cash provided by operating activities is based on assumptions about future events, including economic conditions and proposed courses of action, and on management s assessment of relevant information currently available. Readers are cautioned such financial outlook information contained in this news release is not appropriate for purposes other than for which it is disclosed here. Readers should not place undue importance on FLS and should not rely on this information as of any other date. Except as required pursuant to applicable securities laws, Xtreme disclaims any intention, and assumes no obligation, to update publicly or revise FLS to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such FLS or otherwise. About Xtreme Xtreme Drilling and Coil Services Corp. ( XDC on the Toronto Stock Exchange) designs, builds, and operates a fleet of high specification drilling rigs and coiled tubing well service units featuring leadingedge proprietary technology including AC high capacity coil injectors, deep re-entry drilling capability, modular transportation systems and continuous integration of in-house advances in methodologies. Currently Xtreme operates two service lines: Drilling Services (XDR) and Coil Services (XSR) under contracts with oil and natural gas exploration and production companies and integrated oilfield service providers in Canada, the United States and Saudi Arabia. For more information about the Company, please visit For further information, please contact: Matt Porter, Chief Financial Officer Tel: Xtreme Drilling and Coil Services Corp Katy Freeway, Suite ir@xtremecoil.com Houston, TX