CALGARY, Canada – March 10, 2022, High Arctic Energy Services Inc. (TSX: HWO) (the “Corporation” or “High Arctic”) released its’ fourth quarter and year-end results today. The audited consolidated financial statements, management discussion & analysis (“MD&A”), and annual information form for the year ended December 31, 2021 will be available on SEDAR at www.sedar.com, and on High Arctic’s website at haes.ca. Non-IFRS measures, such as EBITDA, Adjusted EBITDA, Adjusted Net Earnings (Loss), Operating margin % and working capital are included in this News Release. See Non-IFRS Measures section below. All amounts are denominated in Canadian dollars (“CAD”), unless otherwise indicated. Mike Maguire, Chief Executive Officer commented: “High Arctic closed out the 2021 fiscal year in excellent position. As underlying business fundamentals began to improve, surplus pre-pandemic cash of $9.7 million was paid to shareholders in the form of a special one-time dividend. We exited the year with a net cash position of $4.0 million, strengthened capital structure with fixed rate mortgage financing and an undrawn revolving credit facility, and increasing revenue fueled by positive pricing trends and the return to work in PNG. Entering 2022, global events have propelled the energy sector into significant supply constraint. Sanctions against Russia combined with the actions of global energy and transport corporations have removed substantial supply of both oil and gas, stressing the market at a time of increasing energy demand as Covid-19 restrictions are lifted. As a result, commodity price strength coupled with long-term security of supply assurances are expected to drive further increases in service activity. More Canadian oil is needed to supply foreign markets, and LNG is increasingly becoming the mobile, low emissions energy source of choice through this period of energy transition. The signing of the P’nyang gas agreement and the progression of the Papua LNG project towards FID, positions Papua New Guinea as a key source of new LNG supply to Asia and the sub-continent. High Arctic is ideally placed to benefit in both of these markets, and as a result we have undertaken to reinstate a regular monthly dividend.” Highlights The following highlights the Corporations results for Q4-2021 and YTD-2021: • High Arctic’s revenues increased 43% to $23.6 million in Q4-2021 relative to Q4-2020 and were 27% higher than Q3-2021, buoyed by renewed activity in the Drilling Services Segment during the quarter. In contrast, YTD-2021 revenues of $76.4 million were lower by 16% primarily due to significantly lower drilling services activity throughout 2021-year compared to the 2020-year which included a full quarter of pre-pandemic activity. • High Arctic’s oilfield services operating margin as a percentage of revenue was 19.9% in both Q4-2021 and YTD-2021, compared to 23% and 23.5% in the corresponding 2020-periods. • High Arctic achieved positive EBITDA of $1.2 million and $4.4 million for Q4-2021 and YTD-2021, while the net loss in the respective 2021-periods was $4.6 million and $18.6 million. • High Arctic returned value to shareholders through a $9.7 million special one-time cash dividend in Q4-2021 while maintaining a strong working capital balance of $29.7 million on December 31, 2021. At year end, High Arctic carried a cash balance of $12.0 million. • Cost reduction initiatives delivered $2.5 million or 19.4% lower general and administrative costs YTD-2021 over prior year, and $5.5 million lower than pre-pandemic YTD-2019 costs. • In December 2021, High Arctic completed a $8.1 million mortgage financing of Corporation owned and occupied land and buildings with an initial 5-year term and a fixed interest rate of 4.30%. Strategy Our 2022 Strategic Priorities build on the platform we created in 2021 and include: • Safety excellence and quality service delivery, • Actions aimed at generating free cash flow including: o Increased utilization of the Corporation’s world-class fleet of equipment, o Improved efficiency and work force productivity, and o Operating cost control, • Development of new and existing employees to grow our workforce to meet demand, • Pursuit of opportunities that secure the Corporation’s future as a lower emissions energy services provider, • Pursuit of opportunities for growth and corporate transactions in well understood markets that enhance shareholder value, and • Disciplined capital stewardship to improve returns for shareholders including dividends and common share buybacks. ——————– The audited consolidated financial statements (“Financial Statements”) and management discussion & analysis (“MD&A”) for the year ended December 31, 2021 will be available on SEDAR at www.sedar.com, and on High Arctic’s website at haes.ca. Non-IFRS measures, such as EBITDA, Adjusted EBITDA, EBITDA for purposes of long-term debt covenants, Adjusted net earnings (loss), Oilfield services operating margin, Operating margin %, Percent of revenue, Funds provided from operations, Working capital and Net cash are included in this News Release. See Non- IFRS Measures section, below. All amounts are denominated in Canadian dollars (“CAD”), unless otherwise indicated. Within this News Release, the three months ended December 31, 2021 may be referred to as the “Quarter” or “Q4- 2021”, and similarly the twelve months ended December 31, 2021 may be referred to as “YTD-2021”. The comparative three months ended December 31, 2020 may be referred to as “Q4-2020”, and similarly the twelve months ended December 31, 2020 may be referred to as “YTD-2020”. References to other quarters may be presented as “QX-20XX” with X being the quarter/year to which the commentary relates. All amounts are expressed in thousands of Canadian dollars, unless otherwise noted. Q4 2021 PR