Rubellite Energy : March 14, 2024

Rubellite Energy Inc.

Corporate Overview

March 14, 2024

Corporate Profile

Growth-focused, pure play Clearwater E&P company (TSX:RBY)

Since inception in 2021, Rubellite has grown from 350 bbl/d to >4,500 bbl/d and assembled access to

530 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)
• • Incorporated on July 12, 2021; Clearwater Assets conveyed on July 15th
  • 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") - Fully Back-stopped
  • 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
• $20.0 MM Flow-Through Equity Financing (March 28, 2023)
• • Non-BrokeredPrivate Placement priced at $2.85/share

TSX	RBY
Shares Outstanding(1)	62.5 MM
Market Capitalization(2)	$148.6 MM
Net Debt (December 31, 2023)	$51.0 MM
Enterprise Value	$199.6 MM
Insider Ownership	~37.5%

1. 70.1 MM fully diluted including 4.0 MM Share Purchase Warrants (owned by Perpetual)
2. TSX:RBY March 13, 2024 closing price of $2.38/share

Assets

assembled

through crown land purchases, farm-ins, freehold mineral leasing

• third-partyacquisitions

Captured strategic

road & pipeline infrastructure to optimize pace and cost of development & operations

Spin-out of

Rubellite assets, public listing & equity financings

Exploration &

step-out

delineation

drilling

providing

confidence in

extensive

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

• Growth-focused,pure play Clearwater E&P company
• Access to over 530 net sections of prospective Clearwater lands
• Multiple exploration prospects captured with material location inventory potential if successful
• 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 initial 350 bbl/d in September 2021 to 4,209 bbl/d (Q4 2023 sales)
• Highly profitable, full cycle IRRs with attractive payout periods at current strip prices
• ~240 defined Development / Step-out drilling locations
• Development / Step-out drilling ongoing to validate and refine type curves
• Evaluation of exploration prospect inventory to inform sustainable target production level
• Rapid, organic growth plan financed through equity, adjusted funds flow and available credit facilities
• Total cash costs of ~$19.00 to $20.50/bbl drives attractive netbacks 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
• $57 MM bank credit facility
• Risk management with hedging to protect capital investment plans and returns during growth ramp up
• Line of sight to sustainable free funds flow; timing dependent on commodity prices, delineation results, exploration success and chosen pace of growth
• Free funds flow could be directed to accelerated organic growth, additional exploration activities, acquisitions and returns to shareholders
• Strong management alignment with insider ownership of ~37.5%
• Independent board oversight and strong corporate culture
• Unstimulated, multi-lateral drilling technology from multi-well pads supports environmentally responsible development with limited surface footprint and negligible 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, close to 1,600 wells have been drilled, growing play production from nil to >130,000 bbl/d by year-end 2023
• • ~75% of production at Marten Hills and Nipisi
  • Additional pools proven to the north at Peavine, Seal, Cadotte & McLeod; and to the south at Jarvie, Newbrook, Ukalta & Figure Lake
• Primary recovery heavy oil utilizing horizontal multi-lateral drilling
• Secondary recovery waterfloods initiated in multiple areas

ROR (%)		Payout (yrs)
		ROR Oil (%)

400%

350%

300%

250%

200%

150%

100%

50%

0%

ROR Gas (%)

Average ROR (162%)

2.0

1.8

1.6

1.4

1.2

1.0

0.8

0.6

0.4

0.2

0.0

Source: Peters & Co. Limited Fall 2023 estimates based on US$75/B WTI and C$3.38/Mcf AECO prices

Rate of Return (ROR) calculated as NPV10 / Initial Capital Spend

Early development of Clearwater Play focused on Marten Hills and Nipisi

Numerous new areas within the Clearwater fairway proving to be highly economic

Refer to Slide Notes and Advisories

3

Rubellite Asset Profile

477 net sections of prospective land; ~240 development / step-out Clearwater locations

Asset Map

Asset Summary

Cadotte

Dawson

Peavine

Area

Figure Lake/Edwand

Ukalta

Marten Hills(3)

Northern

Exploration(1)(3)

Other Exploration(3)

Land	Well Count	Production
		Q4 2023
(net sections)(1)	(net producing)(2)	(bbl/d)(3)
243.1	59.0	3,400
34.0	26.0	534
0.9	3.3	272
53.8	0.0	3
145.3	3.0	-

Marten Hills

Nixon

Figure Lake

Ukalta

Source: geoScout and competitor disclosures

TOTAL	477.1	91.3	4,209

Production:

• Q4 2023 sales production of 4,209 bbl/d
• Q1 2024 production guidance of 4,450 - 4,500 bbl/d

Reserves(4): Total proved plus probable of 16.0 MMbbl at YE 2023

Property Status:

1. • Marten Hills - Developed on primary; Advancing secondary recovery
   • Ukalta - Focus on optimization
   • Figure Lake / Edwand - Development and Step-out delineation ongoing
   • Northern Exploration - De-risking prospect at Dawson
   • Other Exploration - New opportunity at Nixon; Other prospects in various stages of land capture & assessment
2. 477.1 net sections After Payout working interests includes option lands and farm-in exploratory lands at after payout working interest as at March 14, 2024.
3. Well count contributing to production during Q4 2023 was 99 gross (91.3 net APO)
4. 100% conventional heavy crude. Other Exploration volumes included in Figure Lake production.
5. Total Proved Plus Probable (TPP) reserves (Gross Working Interest before royalties) as per Year End 2023 McDaniel Reserve Report.

Refer to Slide Notes and Advisories

4

Corporate Performance

Operational Momentum Continues

Adjusted Funds Flow and Sales Production (bbl/d)

	5,000			(1)20,000	($M)
	4,450 - 4,500 bbl/d
		4,450
(bbl/d)Production	4,000				16,000	FlowFundsAdjusted
				-

3,000															12,000
														4,500
2,000															8,000
															bbl/d(1)
1,000															4,000
0															0
	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
2021	2022	2022	2022	2022	2023	2023	2023	2023 2024E

1. Q1 2024 sales production guidance

Q4 2023 Production By Area

		3	Marten Hills
	534	272
		Figure Lake /
			Edwand
			Ukalta
Q4 2023			Other
4,209 bbl/d	3,400

100% Heavy Oil

Operating Netback ($/bbl)

Net Asset Value(2)(3) ($MM)

$100.00	$400
$80.00	$350
$300
$60.00	$250
$40.00	$200
$150
$20.00	$100

$ 5.14/share

$ 3.99/share

$ 3.27/share

$ 2.00/share

$0.00	$50

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

$-

2021

2022

2022

2022

2022

2023

2023

2023

2023

$(50)

Royalties

Inception

YE 2021

YE 2022

YE 2023

Transportation

$(100)

Operating Costs

Bank Debt & Net Working Capital

Net Non-Reserve Well ARO

Revenue (after risk management contracts)

Other Assets

Total P+PDV NPV10

Operating Netback

Total P+PUD NPV10

Undeveloped Land

1. Total Proved Plus Probable (TPP) reserve value (NPV10) as per Year End 2023 McDaniel Reserve Reports and the Consultant Average Price Forecast; Undeveloped land value of $40.7 MM as per Year End 2023 Seaton-Jordan Report; Total Net Debt of $51.0 MM less $10 MM in MTM hedge gains relative to Consultant Average Price Forecast.
2. 2023 Proved Reserve-Based NAV (discounted at 10%), excluding value for undeveloped land, is $165 MM ($2.64/share).

Refer to Slide Notes and Advisories

5

2023 Reserves Highlights

Focused capital spending program at Figure Lake achieving strong reserve additions

2023 Corporate Reserves Additions

• TPP increased 56% year-over-year
• TPP per Debt Adjusted Share increased 23% year-over-year
• TPP additions replaced 5.8 times 2023 Annual Production
• TPP FD&A of $19.63/boe
• PDP increased 82% year-over-year
• PDP per Debt Adjusted Share increased 44% year-over-year
• PDP additions replaced 3.0 times 2023 Annual Production

Recycle Ratio(2)

• TPP Recycle Ratio of 2.9x (F&D of $18.03/boe)
• PDP Recycle Ratio of 2.2x (F&D of $24.22/boe)
• PPDP Recycle Ratio of 2.6x (F&D of $20.38/boe)

Reserve Life Index

• RLI's ranging from 4.4 years (PDP) to 13.3 years (TPP)

YE 2023 Reserves (Mboe)(1)

TP 10.0 MMboe

TPP 16.0 MMboe		PDP
93% Heavy Oil	5,455
6,058	PUD

Probable

4,501

Reserves Growth(1)

	18,000
	16,000
Mboe	14,000
12,000
Reserves	10,000
8,000
	6,000

4,000

2,000

0

			PDP				TPP
	July 21		YE 2021		YE 2022		YE 2023

Reserves / Debt-Adjusted Share(1)

	0.20
	0.18
	0.16
boe/share	0.14
0.12

0.10

0.08

0.06

0.04

0.02

0.00

	PDP/Debt Adjusted Share	TPP/Debt Adjusted Share
	July 2021		YE 2021		YE 2022		YE 2023

1. Proved Developed Producing (PDP), Proved Undeveloped (PUD) and Proved Plus Probable (TPP) reserves as per Year End 2023 McDaniel Reserve Report.
2. Based on 2023 average netback of $53.14/bbl (excluding hedging gains/losses); F&D excluding

acquisitions.

Refer to Slide Notes and Advisories

6

2023 Net Present Value of Reserves

Reserve additions through the drill bit drove 50% increase in NPV10 value year-over-year

YE 2023 Reserve Value

NPV(10) $MM(1)

$116

$148

$58

PDP PUD Probable

TP $206 MM ($3.30/share)

TPP $322 MM ($5.15/share)

1. Proved Developed Producing (PDP), Proved Undeveloped (PUD) and Proved Plus Probable (TPP) reserves values as per Year End 2023 McDaniel Reserve Report based on the Jan 1, 2024 Consultant Average Price Forecast.
2. Proved Plus Probable (TPP) reserves values as per Year End 2022 McDaniel Reserve Report based on the Jan 1, 2023 Consultant Average Price Forecast.

Refer to Slide Notes and Advisories

7

Southern Clearwater

Active Development and Extension Activity Ongoing

Southern Clearwater Play Fairway	Play History

Greater Figure Lake

Ukalta

Source: geoScout and competitor disclosures

Figure Lake - Development &

Step-out Delineation Fueling RBY

Growth

• 3,400 bbl/d Q4 2023 sales, including 436 bbl/d sales contribution from Acquired Lands for the quarter
• One 2.5-leg producing well drilled in early stage of play by a predecessor operator to set up exploration concept
• Sold 3-5% royalty on portion of lands to fund initial four well exploration program (South Pad & North Pad)
• Entered into agreement with Buffalo Lake Metis Settlement
• Accelerated development & step-out activity in 2022 and 2023
• Acquisition closed Nov 8, 2023 adding ~800 bbl/d of production and 107 net sections of land (90% undeveloped)
• Sold 1.5% Top-Up Royalty for $8 MM in Dec 2023
• 59 (59.0 net) multi-lat wells contributing to sales at the end of Q4 2023

Ukalta - Development

with Secondary Zone Exploration

• 534 bbl/d Q4 2023 sales
• Six 6-leg wells on production at RBY inception
• 26 (26.0 net) wells onstream Q4 2023
• Active industry competitors include Spur and Tamarack Valley

Refer to Slide Notes and Advisories

8

Acquisition

P&S executed October 19, 2023 - Closed November 8, 2023

Nixon

Figure Lake /

Edwand

Acquisition Summary

• Purchase Price: $34.0 MM - Effective Oct 1, 2023
• Production: 800 bbl/d (estimated at closing November 8, 2023)
• • 15 producing wells in Greater Figure Lake
  • Contributed 436 bbl/d to RBY Q4 2023 sales production
• Greater Figure Lake Area Land: 107 net sections
• • 27,392 net hectares, net of expected near-term expiries
  • Undeveloped Land = 96 net sections (24,482 net ha)
  • 49 high-graded inventory locations
  • • 15 development locations at Figure Lake & South Edwand
    • 34 additional step-out locations in Greater Edwand area
    • Multiple additional exploratory prospects
• Nixon Area Land: 108 net sections of exploration acreage
• • Undeveloped Land = 108 net sections (27,648 net ha)

Key Strategic Rationale

• In line with robust Clearwater growth strategy
• Acquisition in core operating area highly synergistic to operating, administrative and capital execution activities
• Base production adds funds flow to enhance flexibility, support accelerated organic growth in strong oil price environment, and continue to pursue exploration & consolidation
• Adds strategic inventory outside Key Wildlife Biodiversity Areas at Figure Lake
• Materially increases undeveloped land position and exposure to exploration opportunities at Figure Lake, Edwand and Nixon

Acquisition Metrics(1)

• $28,500 per flowing boe/d

Rubellite Energy Inc.

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