Rubellite Energy : 04/05/2022 – Corporate Presentation

Rubellite Energy Inc.

Investor Presentation

April 5, 2022

Background

Newly created, growth-focused, pure play Clearwater company (TSX:RBY)

Since 2018, Perpetual / Rubellite has executed 35+ separate transactions to assemble a position of access to ~225 net sections across the Clearwater fairway

• ▪ Rubellite acquired all of Perpetual's Clearwater Assets for total consideration of $65.5 MM (including $59.2 mm in cash)

  • ▪ Rubellite incorporated on July 12, 2021

  • ▪ Clearwater Assets conveyed to Rubellite on July 15th

  • ▪ Public announcement of the Plan of Arrangement on July 16th

  • ▪ Plan of Arrangement closed on September 3rd

  • ▪ Equity Financings closed / released from Escrow on Oct 5, 2021

Spin-out of Rubellite assets, public listing and equity financing

• ▪ $83.5 MM in Equity Financings (October 5, 2021):

  • ▪ $30.0 MM Brokered Sub-Receipts Financing (closed into escrow July 13th)

  • ▪ $20.0 MM Non-Brokered Private Placement

  • ▪ $33.5 MM Arrangement Warrant ("rights offering") Financing for Perpetual shareholders fully backstopped by Sue Riddell Rose, President & CEO

    • ▪ $30.6 MM (91%) was initially subscribed for by shareholders pro rata

    • ▪ Oversubscribing shareholders fully took up the remaining $2.9 MM

  • ▪ All components of the financings priced at $2.00/share

  Assets assembled over three years through third party and crown land acquisitions, farm-ins and freehold mineral leasing

• ▪ $38.7 MM in Equity Financings (March 30, 2022):

  • ▪ $25.3 MM Brokered Financing

  • ▪ $13.4 MM Non-Brokered Private Placement

  • ▪ Both financings priced at $3.55/share

• ▪ Market capitalization ~$208 MM

  • ▪ 54.7 MM shares outstanding

  • ▪ 60.0 MM shares outstanding fully diluted (1)

    Captured strategic road infrastructure required for future development

  • ▪ Insider ownership of ~34.7%

  Significant delineation through Perpetual and competitor activity provided confidence in drilling inventory

  (1) Includes 4.0 MM Share Purchase Warrants (owned by Perpetual)

Investment Highlights

Robust growth opportunity in the prolific Clearwater play

• ▪ Access for public investors to participate in a high growth, pure play Clearwater explorer/producer

• ▪ ~225 net sections of highly prospective Clearwater lands with 600+ potential drilling locations

• ▪ Line of sight to additional exploratory land capture and M&A opportunities

• ▪ Rubellite controls and operates 100% of its Clearwater asset base

• ▪ Organic production growth from 350 bbl/d to 2,200 to 2,400 bbl/d average for 2022

• ▪ Highly profitable, full cycle IRRs with well payouts in less than one year at current strip pricing

• ▪ ~50% of development/step-out inventory of ~230 locations to support 5,000 - 10,000 bbl/d business plan

• ▪<5% of potential drilling locations booked in Year-End 2021 McDaniel Reserve Report

• ▪ Rapid, organic growth plan financed through equity capital raises and free funds flow

• ▪ Total cash costs of ~$15 to $18/bbl drives organic free funds flow forecast in 2022 at strip pricing

• ▪ Extensive infrastructure in core operating areas drives attractive capital efficiencies

• ▪ Future waterflood and EOR potential to mitigate production declines and increase recovery

• ▪ No debt and organic free funds flow positive in 2022

• ▪ $25 MM bank credit facility

• ▪ Prudent approach to hedging to protect capital investment plans and returns during growth ramp

• ▪ Forecast cash on balance sheet to allocate to accelerated organic growth, exploration activities, acquisitions and distributions to shareholders

• ▪ Strong management alignment with insider ownership of ~34.7%

• ▪ Strong governance with majority independent board members

• ▪ Unstimulated, multi-lateral drilling technology off multi-well pads supports environmentally responsible development with limited surface footprint and use of freshwater

Clearwater Play Landscape

Amongst the best single well economics of any play in North America

Clearwater Play Evolution

• ▪ Since 2017, over 600 wells have been drilled, growing play production from nil to ~66,000 bbl/d in January 2022

  • ▪ 28 currently active rigs in the Clearwater play

• ▪ Public

  company M&A entrants highlighting significant investment plans:

  • ▪ Headwater Exploration (HWX-TSX)

    • • Cenovus' Clearwater assets (Nov 2020)

  • ▪ Tamarack Valley (TVE-TSX)

    • • Woodcote / Highwood assets (Dec 2020)

    • • Surge / Woodcote transaction (March 2021)

    • • Crestwynd transaction (Dec 2021)

ROR (%)

ROR - Gas (%)

Average ROR (96%)ROR - Oil (%)

Payout (yrs)

Payout (Yrs)

150% ~375%

Source: Peters & Co. Limited. June 2021

Clearwater Play

2.5

2.0

1.5

1.0

0.5

-

Source: geoSCOUT

Early development of Clearwater Play focused on Marten Hills and Nipisi Numerous new areas within the Clearwater fairway have proved to be highly economic

Rubellite Asset Profile ~225 net sections of prospective land and 600+ locations across the Clearwater fairway

Asset Map

Marten Hills - Proven Development

• ▪ Two (1.0 net) well pad (8-leg/well) commenced sales production late August

• ▪ 4 (2.0 net) wells planned for Q1 2022, 3 RR and onstream in Q1, 1 to be RR in April

• ▪ Up to 6 gross (3.0 net) additional prospective development locations and waterflood potential

• ▪ Active industry competitors include Spur, Headwater, Deltastream, Canadian Natural

Figure Lake - Development and Step-out Delineation

• ▪ One 2.5-leg producing well drilled in early stage of play by a predecessor operator

• ▪ Eight (8.0 net) wells drilled to prove up over 100 development/step-out locations

• ▪ Additional exploration potential captured

• ▪ Active industry competitors include Tamarack Valley, Rolling Hills and Summerland

Ukalta - Proven and Poised for Growth

• ▪ Six 6-leg wells on production at inception

• ▪ 86 development/step-out locations

• ▪ Active industry competitors include Spur and Tamarack Valley

• ▪ Significant exploration potential capturedin secondary zones

  Asset Summary:

  Ukalta Marten Hills(1) Figure Lake Exploratory(5)

  TOTAL

  18 2.5 9 0 29.5

  34 1.5 86 104.7

  10 3.5 15 0 28.5

  • 1. Marten Hills well counts are based on before payout working interest.

    66 0 137 0 203

    164 240

    0 3.5

    40 192

    188 188

    392

    623.5

  • 2. PUD and PPUD count are based on Year End 2021 McDaniel Reserve Report less Q1 drilling conversions to production

    (36.0 net at YE - 6.5 net conversions in Q1); Producing count includes 3.5 net wells recovering base oil load fluid

  • 3. Development and step-out locations are unbooked and within mapped outline of existing proven Clearwater zones where economic production has been established.

  • 4. Exploration locations are within mapped prospective Clearwater zones without proven economic production.

  • 5. Exploratory lands are included as before payout working interest, and include lands where drilling/work commitments are required for earning.

  Producing Wells

  • ▪ 16 (15.0 net) at Dec 31/21; Additional 5.0 net wells recovering base oil load fluid

  • ▪ 28 (26.0 net) currently producing; Additional 4 (3.5 net) wells recovering load oil

  Production (March 2022)

  • ▪ ~1,600 bbl/d average for March 2022, 2,000 bbl/d production milestone achieved at the end of March (100% conventional heavy crude; based on field estimates)

  Reserves (2)

  • ▪ Total proved plus probable of 6.0 MMboe

  Undeveloped Land

  • ▪ ~215.7 net sections or ~138,058 net acres

  Development/Step-out inventory to grow production organically to 5,000 - 10,000 bbl/d and sustain

  Exploration opportunities captured to augment future growth potential with success