Prairie Provident Resources : June 2023 Presentation

Re-Positioning to Unlock

Significant Value for

Shareholders

TSX: PPR

Corporate Update

June 2023

Corporate Overview

Prairie Provident Resources | June 2023

CORPORATE SUMMARY

Production (Q1 2023) (boe/d)		3,733
Production mix		63% Liquids
Reserves (2P)(1)		31.9MMboe
Reserve Life Index (2P)(1)		20.1 years
PDP decline(1)		3.9%
Tax pools(2)		~$851MM
MARKET SUMMARY
Shares outstanding(3)		715.7MM
Market capitalization(3)(4)		$65.2MM
Net Debt(5)		$78.2MM
Enterprise value(6)		$138.5MM

Low Decline Asset Base

with long reserve life & significant upside potential through waterflooding

Large Inventory of Economic drilling in Princess, Michichi, Evi and Provost core areas

Experienced Executive,

Technical Team, and

Board of Directors

Evi

Provost

Michichi/Wheatland

Princess

1. Based on YE 2022 independent reserves evaluation by Sproule Associates Limited effective December 31, 2022. See "Reserves Data Disclosure" on Slide 25.
2. As at December 31, 2022.
3. Based on outstanding share count (fully diluted) as at June 1, 2023;
4. Calculated using PPR's TSX closing price of $0.085 per share on June 1, 2023.

2 (5) March 31, 2023 Net Debt adjusted for conversion of Prudential's unsecured notes, exercise of Prudential's warrants and $4MM equity financing. Net Debt is a non-GAAP financial measure. See "Non-GAAP Financial Measures and Oil and Gas Metrics" under "Reader Advisories" on Slide 22-25.

1. Based on outstanding share count (fully diluted) and pro forma Net Debt. Refer to footnotes (3), (4), and (5) above.

TSX: PPR

Recent Recapitalization

Prairie Provident Resources | June 2023

• PPR has recently executed a transformative recapitalization that has significantly improved its balance sheet
• Summary:
• • Unsecured notes converted to equity (common shares are escrowed with a tiered release schedule over 18 months)
  • New $5 million 2nd lien notes
  • Equity raise of $4 million
  • Secured credit facility extended to mid-2024
• Benefits:
• • Pro forma leverage reduced from $138 million to $72 million

• Expected interest savings of over $6 million per year
• Improved liquidity and flexibility

3

Pro Forma Recapitalization Overview

Significantly improves balance sheet health

Prairie Provident Resources | June 2023

			Transaction		PPR
	PPR		Adjustments(1)		Pro Forma
Share Price	$0.085				$0.085
Basic Shares Outstanding	130.3	(2)	585.4		715.7
Existing Warrants	34.3		(34.3)	(3)	-
New Equity Financing Warrants	-		48.0		48.0
Options	3.0		-		3.0
FD Shares Outstanding (MM Sh.)	167.6		599.1		766.7
Market Capitalization ($MM)	$14.2		$50.9		$65.2
Revolving Facility	$66.8		-		$66.8
Unsecured Notes	$71.5		($71.5)		-
New 2nd Lien	-		$4.9		$4.9
Total Borrowings Outstanding	$138.3		($66.6)		$71.7
Plus: Working Capital	($15.4)	(4)	$8.9		($6.4)
Net Debt (5)($MM)	$153.6		($75.5)		$78.2
Potential Proceeds from Equity Financing Warrants	-		($4.8)		($4.8)
Enterprise Value ($MM)	$167.9		($29.4)		$138.5

Net Debt ($MM)

$200
$154
$150
$100	$78
$50
$0
Current	Pro Forma

4

1. US$3.65MM issuance of second lien notes, Prudential's unsecured notes converted at $0.14 per share, and $4.0MM equity financing at $0.09 per unit. Excludes transaction costs.
2. Based on outstanding share count (basic) as at June 1, 2023.
3. Assumes exercise of Prudential's existing warrants as part of conversion of unsecured notes.

(5)	Converted using the month end exchange rate of $1.00 USD to $1.35 CAD as at March 31, 2023	TSX: PPR
(4)	As of March 31, 2023 (Q1/'23) excluding US$3.6mm proceeds from second lien issuance which closed during Q1 2023.

Pro Forma Investment Highlights

• Attractive pro forma value of ~$0.387(1) and $0.666(1) NAV per share based on 1P and 2P reserves, respectively

Prairie Provident Resources | June 2023

✓

✓

✓

Significantly reducing debt/leverage to enhance shareholder value with Prudential becoming a major shareholder in support of our strategy

Capital program will be focused on optimization and efficiency

Low risk in-fill drilling to enhance existing properties

• Wide breadth of growth opportunities from deep inventory of drill ready locations

5(1) Pro forma fully diluted 766.7 million shares outstanding following conversion of Prudential's unsecured notes, exercise of Prudential's warrants and $4MM equity financing.

TSX: PPR