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• As previously announced the first 850XE upgrade was signed to a two year contract and is scheduled for delivery to Oklahoma in the third quarter of 2017. The 850XE design is Xtreme's next step in drilling innovation and technology. The proprietary design was developed specifically for today's major resource plays and is expected to be the most efficient and fastest moving "super spec" rig in the North American land market. The 850XE will be equipped with an 1,800hp AC electric drawworks, 850,000 pound capacity mast, proprietary X-pad optimizer walking system, a 7,500psi mud system with three pumps, integrated equipment monitoring and other proprietary design features. It will have a rated depth capacity in excess of 27,500 feet with 5-inch drill pipe and the ability to stand all drill pipe in the mast.

• As of the date of this press release, the Company had nine of 18 XDR rigs contracted in Canada, Colorado, North Dakota and Oklahoma. Of the nine rigs contracted seven are currently working with the remaining two anticipated to commence work in June.

Selected Quarterly Information from Continuing Operations

(unaudited)

Excerpt from Management's Discussion and Analysis
for the three months ended March 31, 2017

OUTLOOK

The recent U.S. land rig count approached 850, after bottoming out at fewer than 400 rigs in May of 2016. The majority of rigs that have gone back to work in the U.S. are high spec AC electric rigs. The market share of AC rigs in the U.S. has increased from 40% in the third quarter of 2014 to 67% currently. In fact, Xtreme estimates that approximately 600 AC rigs have returned to work as compared to 725 that were working at the peak of the market in the third quarter of 2014. The supply of AC electric shale capable drilling rigs is quickly going back to work in the United States. In certain basins, this tightening of supply is beginning to result in pricing increases.

Xtreme's 18 rig U.S. fleet and three rig Canadian fleet are 100% AC electric. The Company currently has eight of 10 XDR 500 rigs contracted in the United States with seven currently operating and the eighth expected to begin work in early June. In Canada, Xtreme has one of three XDR 200 rigs contracted and set to commence operation in June.

The pace of rig re-activations in the United States has put upward pressure on crew wages along with other re-activation expenses. In the second quarter, the Company will incur additional expenses related to the re-activation and mobilization of several rigs. This will reduce operating margins as not all of the cost increases are able to be passed through to the operator in the near term. However, if the current trend of re-activations continues then Xtreme anticipates that operating rates will begin to increase in the back half of 2017.

The process of reviewing options for the XDR 200 and 300 series rigs is progressing. The Company anticipates formal discussions with potential buyers or partners to commence in the near future with a target of closing any transaction in the second half of 2017. The goal in this process is to further focus Xtreme as a high/super spec US resource play drilling Company with ten XDR 500 rigs and three 850XE. Any proceeds from asset sales would provide additional liquidity and optionality to deploy in US resource plays.

In order to create value and deliver liquidity to shareholders the Company implemented a Substantial Issuer Bid to repurchase up to $25 million of Xtreme stock. The price range has been set between $2.40 and $2.80 per share and is open until June 1, 2017. The reduction in shares outstanding should add value for shareholders and the sale of assets provide additional liquidity and optionality.

Xtreme will exit 2017 with a fully optimized fleet of larger rigs, three 850XE rigs and 10 XDR 500 rigs, which should maintain high utilization levels in the current industry environment. This increased utilization and expected cash flow coupled with ample liquidity positions Xtreme to take advantage of future strategic opportunities.

Conference Call Details

Xtreme has scheduled a conference call to discuss results with investors, analysts, and stakeholders on Thursday, May 4, 2016, beginning promptly at 10:00 am MT (11:00 am CT, 12:00 am ET).

Matt Porter, President and Chief Executive Officer, will host the conference call.

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.

+1 844-889-6858 (North America Toll‐Free) or +1 661-378-9711 (International)

Webcast: http://edge.media-server.com/m/p/sziz3itj Conference ID: 8397614

An audio replay of the call will be available until Thursday, May 11, 2017. To access the replay, call +1 (855) 859-2056 or +1 (404) 537-3406 and enter Conference ID 8397614.

Xtreme Drilling Corp.
Interim Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
(unaudited)

Xtreme Drilling Corp.
Interim Consolidated Statements of (Loss) Income
For the three months ended March 31, 2017 and 2016
(in thousands of Canadian dollars, except share and per share data)
(unaudited)

Xtreme Drilling Corp.
Interim Consolidated Statements of Comprehensive (Loss) Income
For the three months ended March 31, 2017 and 2016
(in thousands of Canadian dollars)
(unaudited)

Xtreme Drilling Corp.
Interim Consolidated Statements of Changes in Equity
For the three months ended March 31, 2017 and 2016
(in thousands of Canadian dollars)
(unaudited)

Xtreme Drilling Corp.
Interim Consolidated Statements of Cash Flows
For the three months ended March 31, 2017 and 2016
(in thousands of Canadian dollars)
(unaudited)

Adjusted EBITDA from Continuing Operations

Adjusted EBITDA from Discontinued Operations

Adjusted EBITDA from Continuing and Discontinued Operations

Reader Advisory

This news release, or documents incorporated herein, contains forward-looking information ("FLI"). FLI is typically contained in statements with words such as "anticipate", "believe", "estimate", "expect", "plan", "schedule", "intend", "propose" or similar words suggesting future outcomes or an outlook. More particularly, this NEWS RELEASE contains FLI that may relate to contracting, marketing, financing, construction, modifications, deployment, operation, and utilization of drilling rigs in the Company's current and future fleet. Although Xtreme believes expectations reflected in such FLI 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 FLI not to be correct, including risks and uncertainties inherent in the Company's business.

FLI is based on certain factors and assumptions including, but not limited to:

• the assessment of current and projected future drilling and related operations;

• ongoing and future strategic business alliances,

• negotiations and opportunities to enter new, extend or complete existing contracts;

• the availability and cost of financing;

• 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 equipment, services and supplies, including labor, in a cost-effective and timely manner;

• the issuance of applied-for patents;

• changes in tax structures and 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 3, 2017, ultimately the assumptions may prove to be incorrect.

FLI is 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;

• currency exchange rates;

• commodity prices;

• access to credit and to equity markets;

• the availability and retention of qualified personnel;

• vendor-provided equipment components and services; and

• competition for customers.

Management's assumptions considered the following:

• ongoing access to key services, supplies and equipment required to continue operating and maintaining the rigs, 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, multi-well contracts or other 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, the following risk factors were considered:

• fluctuations in crude oil and natural gas prices, as well as supply and demand;

• fluctuation in currency exchange and interest rates;

• financial stability of Xtreme's customers;

• current and future applications for Xtreme's proprietary technology;

• related services provided by, and 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 economic, political and military events, as well as acts of terrorism, riots, strikes, insurrections, revolutions and civil war.

FLI 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 FLI 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 FLI to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such FLI or otherwise.

About Xtreme

Xtreme Drilling Corp. ("XDC" on the Toronto Stock Exchange) designs, builds, and operates a fleet of high specification AC drilling rigs featuring leading-edge proprietary technology. Currently Xtreme operates one service line - Drilling Services (XDR) under contracts with oil and natural gas exploration and production companies and integrated oilfield service providers in Canada and the United States. For more information about the Company, please visit www.xdccorp.com.