Rubellite Energy : 05/11/2022 – Presentation

Rubellite Energy Inc.

Investor Presentation

May 11, 2022

Background

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

Since 2018, Perpetual / Rubellite has executed 35+ separate transactions to assemble access to

~270 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
• $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
• $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
• Enterprise value ~$215 MM (2)
• • 54.7 MM shares outstanding
  • 60.0 MM shares outstanding fully diluted (1)
  • Insider ownership of ~34.6%

1. Includes 4.0 MM Share Purchase Warrants (owned by Perpetual)
2. TSX:RBY May 10, 2022 Close $4.13/share; March 31, 2022 $10.9 MM positive Adjusted Working Capital

Assets

assembled over

three years

through third

party and

crown land

acquisitions, farm-ins and freehold mineral leasing

Captured strategic

road

infrastructure

required for future

development

Spin-out of

Rubellite assets, public listing and equity financing

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

Refer to Slide Notes and Advisories

1

Investment Highlights

Robust growth opportunity in the prolific Clearwater play

Expanding

Pure Play

Clearwater

Asset Base

Robust Organic

Production

Growth Profile

Fully Funded

Development

Unlocking Free

Funds Flow

Conservative

Capitalization

and Risk

Mitigation

Management

Alignment and

ESG Excellence

• Access for public investors to participate in a high growth, pure play Clearwater explorer/producer
• ~270 net sections of highly prospective Clearwater lands with 700+ 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 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 adjusted 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 ~34.6%
• 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

Refer to Slide Notes and Advisories

2

Clearwater Play Landscape

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

Clearwater Play Evolution

• Since 2017, ~850 wells have been drilled, growing play production from nil to ~84,000 bbl/d in April 2022
• • 79% of production at Marten Hills and Nipisi
  • Additional opportunities proven to the north at Peavine, Golden & Cadotte, and to the south at Jarvie, Newbrook & Ukalta
• 28 active rigs in Q1 2022 in the Clearwater play
• Public company M&A highlighting significant investment plans:
• • Headwater (HWX-TSX) - Cenovus' Clearwater assets (Nov 2020)
  • Tamarack Valley (TVE-TSX) - Woodcote/Highwood (Dec 2020), Surge/Woodcote (March 2021), Crestwynd (Dec 2021), Rolling Hills (April 2022)

800%				ROR Oil (%)		ROR Gas (%)
			Average ROR (313%)		Payout (yrs)
700%
			Average Payout (0.5 yrs)
600%

500%

400%

300%

200%

100%

ROR (1) (%)	-

Clearwater Play

Play historically dominated by private companies (Spur, Deltastream, Crestwynd, Woodcote)

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

- (yrs)Payout

Source: Peters & Co. Limited. April 2022 - Rate of Return (ROR) calculated as NPV10 / Initial Capital Spend

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

Refer to Slide Notes and Advisories

3

Rubellite Asset Profile

~270 net sections of prospective land and 700+ locations across the Clearwater fairway

Asset Map	Asset Summary:

Marten Hills - Proven Development

• Two (1.0 net) well pad (8-leg/well)

commenced sales production late August ▪ 4 (2.0 net) wells spud in Q1 2022, 3 RR

and onstream in Q1, 1 RR in early April

• Up to 6 gross (3.0 net) additional prospective development locations and waterflood potential
• Active industry competitors include Spur, Headwater, Deltastream, Canadian Natural

	Well	Drilling Locations (net)		Total
						Drilling
	Count	Booked
	Unbooked	Unbooked	Locations
	(net)	PUD/PPUD
	Prospect	Prospect		(net)
Area	Net	minus Q1
Inventory	Inventory
Sections Producing	conversions
					(Booked
	at		Development	Exploration	(4)
	YE 2021	Reserves +
	March 31
	and Step-
	2022(1)	Reserve			Prospect
	out	(3)
		Report(1)				Inventory)

Ukalta - Proven and Poised for Growth

• Six 6-leg wells on production at inception
• 76 development/step-out locations
• Significant exploration potential captured in secondary zones
• Active industry competitors include Spur and Tamarack Valley

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 ~155 PPUD & development/step-outs
• Additional exploration potential captured
• Active industry competitors include Tamarack Valley, Rolling Hills and Summerland

Ukalta	34	18	10	66	164	240
Marten Hills(2)	1.5	2.5	2.3	0	0	3.5
Figure Lake	131.8	9	15	140	90	245
Northern	105.7	0	0	0	236	236
Exploratory(5)
TOTAL	272.9	29.5	27.3	206	490	723.3

1. PUD and PPUD count are based on Year End 2021 McDaniel Reserve Report less Q1 2022 drilling conversions to producing (36.0 net at YE 2021; 8.7 net conversions in Q1 2022 including adjustment to Marten Hills PPUD; Producing count includes 3.5 net wells recovering base oil load fluid at March 31, 2022.
2. Marten Hills PDP well count based on before payout working interest; PPUD well count expected to be 7 gross (2.3 net).
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

• 28 (26.0 net) at Mar 31/22; Additional 4 (3.5 net) recovering base oil load fluid

Production (March 2022)

• ~1,525 bbl/d (100% conventional heavy crude)

Reserves (2)

• Total proved plus probable of 6.0 MMboe

Undeveloped Land

• ~166,191 net acres (excludes lands with booked reserves)
• Includes 43.8 sections acquired in Q2 2022 through crown sales and acquisitions

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

Refer to Slide Notes and Advisories

4