Rubellite Energy : 08/10/2022 – Presentation

Rubellite Energy Inc.

Corporate Overview

August 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

~300 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 ~$173 MM (2)
• • 54.7 MM shares outstanding
  • 60.1 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 August 9, 2022 Close $3.21/share; June 30, 2022 $2.7 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
• ~300 net sections of prospective Clearwater lands with ~200 Development / Step-out 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 average between 1,700 and 2,000 bbl/d for 2022
• Highly profitable, full cycle IRRs with payouts in less than one year at current strip pricing
• ~50% of development/step-out inventory locations supports 5,000 - 10,000 bbl/d ramp-up plan
• Evaluation of exploration prospect inventory to inform sustainable production growth level
• Assuming exploration success, <5% of potential drilling locations booked in YE2021 McDaniel Report
• Rapid, organic growth plan financed through equity, adjusted funds flow and available credit facilities
• Total cash costs of ~$17 to $20/bbl drives free funds flow forecast in 2023 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
• Free funds flow positive in 2023
• $25 MM bank credit facility
• Prudent approach to hedging to protect capital investment plans and returns during growth ramp
• Forecast cash on the balance sheet at the end of 2023 to allocate to accelerated organic growth, additional exploration activities, acquisitions and returns to shareholders
• Strong management alignment with insider ownership of ~34.6%
• Majority independent board members ensures solid governance
• 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

Clearwater Play

• 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, Seal, Utikuma & Golden, and to the south at Jarvie, Newbrook, Ukalta & Figure Lake
• 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)
• Secondary Recovery initiated and being monitored in several areas

800%	ROR Oil (%)	ROR Gas (%)	0.8
Average ROR (313%)	Payout (yrs)
700%	0.7
Average Payout (0.5 yrs)
600%		0.6
500%			0.5
400%			0.4
300%			0.3
200%			0.2
100%			0.1
-			-
(1) (%)			(yrs)
ROR			Payout

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

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 proven to be highly economic

Refer to Slide Notes and Advisories

3

Rubellite Asset Profile

~300 net sections of prospective land; ~200 development / step-out Clearwater locations

	Northern Exploration - Defining Potential
Asset Map	▪ 4 to 6 (3 to 4 net) wells planned prior to Q2 2023
▪	Peavine, Dawson, Cadotte
	▪ Additional exploration activity ongoing
			Marten Hills - Proven Development
			▪ Two (1.0 net BPO) well pad (8-leg/well)
			commenced sales production in Q3 2021
			▪ 6 (1.8 net APO) wells spud in H1 2022, 1
			RR in July
			▪ Up to 4 gross (1.2 net) additional
			prospective development locations and
			waterflood potential
			▪ Active industry competitors include Spur,
			Headwater, Deltastream, Canadian Natural
			Figure Lake - Development and Step-
			out Delineation - Poised for Growth
			▪ One 2.5-leg producing well drilled in early
			stage of play by a predecessor operator
			▪ Eight (8.0 net) wells drilled to encourage
			~160 PPUD & development/step-outs
			▪ Active industry competitors include
			Tamarack Valley, Clear North, Long Shore
			and Summerland
		ALPEN

Ukalta - Proven Development with

Secondary Zone Exploration

• Six 6-leg wells on production at inception
• 24 wells onstream
• 33 Primary Zone PPUD/Development wells
• Active industry competitors include Spur and Tamarack Valley

Asset Summary:

				Drilling Locations (net)	Total
				Development/
		Well Count
		Booked			Step-out
		(net)	Unbooked	Locations
		PUD/PPUD
	Net			Prospect	(net)
Area	Producing	minus H1
Sections	conversions	Inventory
	at				(Booked
				Development
		June 30,	YE 2021	Reserves +
		2022	(1)	Reserve	and Step-	Unbooked
			out	(3)
				Report(1)		Prospect
							Inventory)
Ukalta(3)	34	19		9.0	24	33
Marten Hills(2)	0.9	2.1	0.9	0	0.9
Figure Lake	90.2	8		15.0	146	161
Other Exploration(4)	105.6	1
Northern Exploration(4)(5)	67.1	0
TOTAL	297.8	30.1	24.9	170	194.9

1. PUD and PPUD count are based on Year End 2021 McDaniel Reserve Report less H1 2022 drilling conversions to producing (36.0 net at YE 2021).
2. Marten Hills PDP well count based on after payout 30% working interest.
3. Development and step-out locations are unbooked and within mapped outline of existing proven Clearwater zones where economic production has been established. Ukalta inventory reflects Tier One locations only.
4. Exploratory lands are within mapped prospective Clearwater zones without proven economic production.
5. Includes Peavine, Dawson and Cadotte exploratory lands at after payout working interest where drilling/work commitments are required for earning.

Producing Wells (June 30, 2022)

• 36 (33.0 net) wells producing to sales
• Additional 3 (2.3 net) wells recovering OBM load fluid

Production (Q2 2022)

• 1,478 bbl/d (100% conventional heavy crude)

Land

• 301 net sections at Before Payout Working Interest (298 net sections After Payout)
• 79.2 net 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