Corporate Presentation November 2017

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Stephen Johnston
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1 Corporate Presentation November 2017

2 Forward Looking Statement / All Jurisdictions The information in this presentation is not an offer or recommendation to purchase or subscribe for securities in any one or more entities in the Pieridae Energy or to retain or sell any securities currently being held. This presentation does not take into account, nor is it intended to take into account, the potential and/or current individual investment objectives and/or the financial situation of investors. This presentation was prepared with due care and attention and the information contained herein is, to the best of Pieridae Energy s knowledge, as of the date of the presentation. This presentation contains forward-looking statements that are subject to risk factors associated with the gas and energy industry. The expectations reflected in these statements are currently considered reasonably based, but they may be affected by a range of variables that could cause actual results or trends to differ materially, including but not limited to: price and currency fluctuations, the ability to obtain reliable gas supply, gas reserve estimates, the ability to locate markets for LNG, fluctuations in gas and LNG prices, project site latent conditions, approvals and cost estimates, development progress, operating results, legislative, fiscal and regulatory developments, economic and financial markets conditions, including availability of financing. No representation or warranty (express or implied) is or will be made by any person (including Pieridae Energy and its officers, directors, employees, advisers and agents) in relation to the accuracy or completeness of all or part of this document, or any constituent or associated presentation, information or material (collectively, the Information), or the accuracy, likelihood of achievement or reasonableness of any projections, prospects or returns contained in, or implied by, the Information or any part of it. The Information includes information derived from third party sources that has not necessarily been independently verified. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, Pieridae Energy disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements in this presentation to reflect any change in expectations in relation to any forward looking statements or any change in events, conditions or circumstances on which any such statements were based. To the maximum extent permitted by law, each entity in the Pieridae Energy, along with each entity s respective officers, employees and advisers, excludes all liability (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from. Stock symbol: PEA on TSX Venture 1

Company Overview Pieridae Energy is an energy infrastructure development company focused on liquefied natural gas opportunities Currently developing Goldboro LNG, an LNG export terminal located in

3 Company Overview Pieridae Energy is an energy infrastructure development company focused on liquefied natural gas opportunities Currently developing Goldboro LNG, an LNG export terminal located in Goldboro, Nova Scotia, Canada Recently closed a business combination with Petrolia, becoming Canada s first publicly traded LNG Company (TSX-V:PEA) Pieridae will operate a traditional integrated LNG model that benefits from value differential between producing and consuming regions 2

Corporate Highlights 1 2 3 4 Experienced Management Team Integrated LNG Project Model Strong Customer Base World Class Partners Strong

Considerable gas trading and marketing experience in North America and Europe Opportunity to participate in Canadian integrated energy

between producing and consuming regions 20 year sales agreement with Uniper Global Commodities Canada (revenue stream of ~US$35bn)

Upstream Canada to secure and develop natural gas assets 5 6 Strategically Located Vast Upside Potential Desirable location suitable for

opportunity to exploit North American vs.

4 Corporate Highlights Experienced Management Team Integrated LNG Project Model Strong Customer Base World Class Partners Strong management team with North American LNG experience Extensive understanding of the North American and European energy markets Considerable gas trading and marketing experience in North America and Europe Opportunity to participate in Canadian integrated energy business Ability to diversify and mitigate the potential financial risk across the LNG value chain Benefit from the value differential between producing and consuming regions 20 year sales agreement with Uniper Global Commodities Canada (revenue stream of ~US$35bn) Go-public business combination with Petrolia created Canada s first publicly listed LNG company Strategic upstream partner with Orlen Upstream Canada to secure and develop natural gas assets 5 6 Strategically Located Vast Upside Potential Desirable location suitable for LNG markets in Europe, South America and Middle East Competitive shipping advantage over projects in the Gulf of Mexico Provides the opportunity to exploit North American vs. world price differentials Multiple train development plan leverages existing infrastructure and enhances economics Utilize existing infrastructure to mitigate costs and enhance economics Deploy debt guaranteed by German government for LNG facility construction 3

5 Pieridae Today Completed business combination with Petrolia becoming Canada s first publicly traded LNG Company Provided go-public vehicle and access to natural gas feed stock in Eastern Canada Concurrent financing transaction Pro forma shares will be subject to a 12:1 consolidation and will trade under the symbol PEA in the TSX Venture Exchange Capital Structure Basic Shares: 49.1 million Market Capitalization: C$278 million Net Cash: C$29 million Entity Value: C$249 million Note: Market Capitalization is based on deemed transaction price Pro Forma Ownership Transaction closed on October 24, 2017 Next steps: Arrange commercial lending syndicate Timeline: Next 3-6 months Finalize LNG facility construction cost estimate Timeline: Next 3-6 months Begin construction of Goldboro LNG facility Timeline: Q Petrolia Shareholders 18% New Investors 11% Pieridae Shareholders 70% 4

6 Leadership Team Alfred Sorensen President, CEO & Director Mario Racicot Chief Financial Officer Founder of Continental Energy Marketing Ltd President of Duke Energy Canada President of Duke Energy International, London, UK Founder of Galveston LNG and the Kitimat LNG project in British Columbia Former Chief Financial Officer and Corporate Secretary at Petrolia Over 15 years of experience in Finance, IT and Operations Management Senior management positions at National Bank and executive positions with Innocap Martin Belanger President of Production Division Former interim CEO and board member at Petrolia Over 25 years of oil and gas experience Previously with Talisman Energy, PrimeWest Energy, TAQA, Laricina & TransCanada Pipelines Thomas Dawson President of LNG Division Founder of Galveston LNG and the Kitimat LNG project in British Columbia Over 25 years of leadership experience in the global energy industry Previously with Duke Energy, Engage Energy and Coastal Corp Myron Tetreault Chairman Andrew Judson Independent Directors Charles Boulanger Matthew Rees ORLEN Canada 5

Goldboro Facility Goldboro Facility Highlights

Max LNG Carrier Capacity: 145,000 250,000 m 3

Expected: 7 13 shipments/month Mooring: Two

Regulatory Permits in Place Environmental

export permit US Department of Energy LNG FTA

export permit The gas supply will be delivered

7 Goldboro Facility Goldboro Facility Highlights Send-out Capacity: Up to 10 million tonnes/year Max LNG Carrier Capacity: 145, ,000 m 3 Storage Tanks: 3 x 230,000 m 3 Shipments Expected: 7 13 shipments/month Mooring: Two berths Commercial Operations: Commence by 2022 Regulatory Permits in Place Environmental Assessment permit National Energy Board LNG export permit US Department of Energy LNG FTA export permit US DOE Non-Free Trade Agreement export permit The gas supply will be delivered via existing Maritimes & Northeast Pipeline (M&NP), located directly adjacent to the project site 6

Strategic Business Model Integrated Business Model Traditional LNG model that benefits from value differentials between producing and consuming regions Resource ownership allows Pieridae to manage

8 Strategic Business Model Integrated Business Model Traditional LNG model that benefits from value differentials between producing and consuming regions Resource ownership allows Pieridae to manage risks across the value chain similar to the super majors involved in the LNG industry Further upside through Pieridae s ability to optimize capital spending activities on upstream resource development on a year to year basis Model ensures high operating capacity is maintained and allows for optimized economics Upstream Model Advantages An integrated model is better able to manage the price risks throughout the value chain Compares favorably to the tolling model which has been pursued by some US LNG operators Ability to move to marginal cost throughout all components of the value chain to manage volatility in commodity prices Crucial for success given the inevitable commodity price swings over 20 years Flexibility to adjust capital allocations depending upon market conditions Distribution between upstream, processing and sales business segments Allows for a more efficient use of capital, lower overall costs and higher profit margins An example of this would be to forgo upstream capital investment in a particular year if local pricing points are below replacement development costs 7

Competitive Position Strategic Partner Cost of Capital Advantages As part of the sales agreement with Uniper, the German government has extended an untied loan guarantee ( UFK or Ungebundene

9 Competitive Position Strategic Partner Cost of Capital Advantages As part of the sales agreement with Uniper, the German government has extended an untied loan guarantee ( UFK or Ungebundene Finanzkredite ) for: Approximately US$3.0 billion to build its processing equipment at Goldboro Approximately US$1.0 billion to be used in the development of its gas properties Strategic long-term relationship with Uniper separates Pieridae from other North American LNG developers Pieridae is the only North American LNG project with a material 3 rd party sales contract in place Uniper s sales contract provides an estimated US$35 billion revenue stream Uniper has committed to a 20 year off-take contract for ~5.0 MMTPA or 0.75 bcf/d 1.5 MMTPA of Uniper s committed volumes are sold to the western European market, with the remaining volumes sold into highest priced market Guarantee provides Pieridae with a significant advantage over its competitors: Reduces risk from sourcing project financing Reduces Pieridae s cost of borrowing Agreement provides Pieridae with the flexibility to run optimal debt-to-equity structure Could reduce Pieridae s cost of capital by approximately 200 basis points Such reduction would translate into a cost advantage of US$1.00/MMBtu over a comparable integrated company without a similar guarantee 8

Pipeline Transportation Goldboro facility feed comes directly from the Maritimes & Northeast pipeline, which is already in place WCSB production to move through

10 Pipeline Transportation Goldboro facility feed comes directly from the Maritimes & Northeast pipeline, which is already in place WCSB production to move through the TransCanada mainline system, with a tolling structure similar to the recent 10 year Dawn to Empress transport agreement with producers Pipeline Paths to Facility 9

11 Pieridae Market Reach Goldboro provides a strategic shipping cost advantage in the Atlantic Basin Shorter distance to Europe, Middle East, South America and South Asia than Gulf Coast competitors Cost advantage in shipping and capital required to move product over the long term Goldboro is ideally positioned for Northeast US natural gas vehicle markets and the emerging LNG bunkering business Delivery capability from the Northeastern seaboard all the way to the Great Lakes Floating regas has led to a significant increase in global LNG demand 100 MMTPA of LNG required by 2025 US$65 billion in construction costs required to meet this increased market demand NGV LNG Bunkering Market Access Shipping Days Goldboro Corpus Christi Sabine Pass Northern Australia Zeebrugge (Belgium) Isle of Grain (UK) Cochin (India) Barcelona (Spain) Dubai (UAE) Rio (Brazil) Qatar 10

Competitive Processing Costs Industry leading construction costs of ~US$900/ton for 5 MMTPA and ~US$750/ton for 10 MMTPA Delivered Price to Europe (US$/MMBtu) Goldboro LNG facility costs are

period from 2012 to 2018 In addition, Pieridae s strategic location advantage in the Atlantic basin will allow it to be the most competitive supplier in the 2022 timeframe Construction Costs

12 Competitive Processing Costs Industry leading construction costs of ~US$900/ton for 5 MMTPA and ~US$750/ton for 10 MMTPA Delivered Price to Europe (US$/MMBtu) Goldboro LNG facility costs are on par with US brownfield projects and well below the global greenfield average of US$1,600/ton Cost advantage comes from the timing of the construction, which occurs post the large build period from 2012 to 2018 In addition, Pieridae s strategic location advantage in the Atlantic basin will allow it to be the most competitive supplier in the 2022 timeframe Construction Costs (US$ per Tonne Capacity) Delivered Price to South America (US$/MMBtu) Note: Cheniere and Goldboro Pricing Assumes (Low End Price: Delivery to Singapore, High End Price: Delivery to Korea) 11

13 LNG Markets Summary Return of the Integrated Business Model Integrated business model is the future of the North American industry Midstream model can t manage price risks on a cost effective basis no new credit quality customers Super majors are unwilling to use balance sheets to help monetize 3 rd party gas resources LNG producers need to own the entire value chain to manage risks LNG trading is following the evolutionary path of crude oil market trading LNG Pricing Convergence Forward markets will have only one price for LNG world wide, which will be adjusted for transportation Price will be consistent for both good and bad credit customers LNG pricing will remain heavily influenced by oil, which is the substitution fuel Entering into a period of accelerated demand post 2020 Accelerated LNG Demand New LNG demand is dominated by Floating Storage and Regasification Units ( FSRUs ) FSRUs have moved regas from a Cap-ex model to an Op-ex model, allowing for higher risk LNG buyers FSRUs have put regas within reach of any water based location Credit is becoming the driver for new liquefaction projects Constrained LNG Supply Long term, good credit customers willing to enter into a 20 year contract are difficult to source New liquefaction projects must be financed using the suppliers balance sheet and not the customers This means LNG projects must compete internally for capital on suppliers balance sheet 12

14 Appendix

15 Rebound in LNG Supply Demand Balance Current Situation Due to competitive substitution, collapsing oil prices have pushed LNG prices to historical lows Low prices triggered cyclical improvements in LNG demand compared to other energy sources The current long position in LNG is expected to move back to a net short position post 2020 time period Floating Regasification Demand Change Floating storage and regasification units (FSRU), have fundamentally changed LNG demand landscape FSRUs require half the time (2 years) and cost 50% less to build The reduction in cost has moved regasification terminals from a large upfront capital cost to a cheap annual lease cost, opening up the potential customer base enormously According to Tullett Prebon (Outlook Report) 30 MMtpa of new FSRUs capacity is on-stream by 2020 The number of LNG importing countries is set to grow rapidly and smaller markets previously considered as unviable, such as Jordan or Pakistan, are becoming mainstream By 2030, as much as 60% of incremental global demand for LNG will come from emerging markets 14

16 LNG Pricing Convergence LNG pricing is following a similar path of the crude oil markets 2018 NBP Price (US$/MMBtu) vs 2018 Brent (US$/bbl) In the forward markets there will only be one price for LNG world wide, adjusted for transportation LNG pricing in the forward markets will remain heavily influenced by oil, the substitution fuel Brent NBP (Scaled up 10x) One price for both good and bad credit customers Short term contracts will not price in the credit risk of customers There will not be any premium markets *January Contract Comparison (weekly prices) 2018 NBP Price (US$/MMBtu) vs 2018 Brent (US$/bbl) Only markets separated by transportation (premiums will be arbitraged away in forward markets) ENI and ExxonMobil moved pricing to Brent Oil pricing throughout Europe, Middle East and Asia Can hedge without having to negotiate with customer *January Contract Comparison (weekly) 15

17 LNG Demand Overview FSRUs have moved regas from a Cap-ex model to an Op-ex model, allowing for higher risk customers Previously had to expend US$0.8 to US$1.0 billion for capacity Can now lease capacity at around US$30 to US$40 million per year Permitting and siting times have been drastically reduced Project times of 5-6 years have been reduced to 2-3 years from permit start to operational FSRUs have put regas within reach of any water based location or credit quality customer Due to short term contract environment, credit quality standards can be lowered considerably Buyers will no longer compete on credit, they compete only on price Market Demand MMTPA An additional 100 MMTPA of LNG is expected to be required to meet global demand by

LNG Supply Shortfall With rising demand and only short term contracts, new liquefaction resides with those who can provide their own credit Super majors will lead new liquefaction supply Pieridae,

18 LNG Supply Shortfall With rising demand and only short term contracts, new liquefaction resides with those who can provide their own credit Super majors will lead new liquefaction supply Pieridae, acts as a super major with its debt guarantee from the German government Marginal price of LNG will have to move considerably higher to meet the rates of return required for project execution Return requirement is already surfacing through lack of new liquefaction FIDs post 2020 New Liquefaction FID Shortfall Goldboro operational Notes: 1) Assumes liquefaction capacity utilization rate of 95%(2021), 90%(2022) 85%(2023 forward) 2) FID shortfall grossed up to 85% for capacity utilization rate and 4 year new construction timing Source: Wood Mackenzie (Q3 2016) 17

Resource Transactions Quebec Basin Development Quebec Resource Plays In December of 2016 the Quebec provincial government passed Bill 106, which included the enactment of the Petroleum Resources Act

19 Resource Transactions Quebec Basin Development Quebec Resource Plays In December of 2016 the Quebec provincial government passed Bill 106, which included the enactment of the Petroleum Resources Act With the ability to begin to develop resources in Quebec, producers offer an opportunity for long term growth and feedstock for Pieridae s LNG facility October 2017, new regulations issued for completion work Pieridae will release its new resource results for Quebec by end of November 11 October

Resource Transactions New Brunswick Basin Development New Brunswick Resource Plays Pieridae entered into a JV agreement with Orlen Upstream Canada (previously Kicking Horse Resources) for the gas

20 Resource Transactions New Brunswick Basin Development New Brunswick Resource Plays Pieridae entered into a JV agreement with Orlen Upstream Canada (previously Kicking Horse Resources) for the gas resources in New Brunswick The JV has approximately 16 tcf of original gas in place ~50,000 gross acres The partnership is primarily targeting the Frederick Brooks and the Hiram Brook formation in the region 11 October

CHENIERE ENERGY, INC. Louisiana Energy Conference. June 2016

CHENIERE ENERGY, INC. Louisiana Energy Conference June 2016 Forward Looking Statements This presentation contains certain statements that are, or may be deemed to be, forward-looking statements within