CORPORATE PRESENTATION

JULY 2018

BOLD IDEAS

FOR ENERGY

1

This presentation contains forward-looking statements relating to Perpetual's business and operations that are based on management's current expectations,estimates and projections about its business and operations. Words and phrases such as "anticipates," "expects," "believes," "estimates," "projected,""future," "goals," "forecast," "plan," "opportunities," "upside," "will," "impact," "target," and similar expressions are intended to identify such forward-lookingstatements. Such statements include, but are not limited to, statements pertaining to: Perpetual's spectrum of opportunities that can be optimized throughvariable commodity cycles and anticipated value creation arising from such opportunities; Perpetual's top strategic priorities including reducing debt andrestoring cash flow, growing value and scope of greater Edson liquids-rich gas, maximizing value of Eastern Alberta assets and advancing high impactopportunities; targeting additional asset sales for further balance sheet improvement; anticipated benefits of waterflood projects; reserve and resourceestimates; projected economics for various projects and expenditures; and future capital expenditure levels. These statements are not guarantees of futureperformance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore,actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place unduereliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Perpetual undertakes no obligationto update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: inaccuracies in theestimated timing and amount of future production of natural gas and oil due to numerous factors including permit delays or restrictions, weather, equipmentfailures, delays or lack of availability, unexpected subsurface or geologic conditions, lack of equity or debt capital, increases in the costs of rented orcontracted equipment, increases in labor costs, volumes of oil or gas greater or lesser than anticipated, and changes in applicable regulations and laws;unexpected problems with wells or other equipment, unexpected changes in operating costs and other expenses, including utilities, labor, transportation, welland oil field services, taxes, permit fees, regulatory compliance and other costs of operation; decreases in natural gas and oil prices, including price discountsand basis differentials; difficulties in accurately estimating the discovery, volumes, development potential and replacement of natural gas and oil reserves; theimpact of economic conditions on our business operations, financial condition and ability to raise equity or debt capital; variances in cash flow, liquidity andfinancial position; a significant reduction in our bank credit facility's borrowing base; availability of funds from the capital markets and under our bank creditfacility; our level of indebtedness; the ability of financial counterparties to perform or fulfill their obligations under existing agreements; write downs of ourasset carrying values and oil and gas property impairment; the discovery of previously unknown environmental issues; changes in our business and financialstrategy; inaccuracies in estimating the amount, nature and timing of capital expenditures, including future finding and development costs; the inability topredict the availability and terms of capital; issues with marketing of natural gas and oil including lack of access of markets, changes in pipeline andtransportation tariffs and costs, increases in minimum sales quality standards for oil or natural gas, changes in the supply-demand status of gas or oil in agiven market area, and the introduction of increased quantities of natural gas or oil into a given area due to new discoveries or new delivery systems; theimpact of weather limiting or damaging operations and the occurrence of natural disasters such as fires, floods, hurricanes, earthquakes and othercatastrophic events and natural disasters; the high-risk nature of drilling and producing natural gas and oil, including blow-outs, surface caterings, fires,explosions; the competitiveness of alternate energy sources or product substitutes; technological developments; changes in governmental regulation of thenatural gas and oil industry potentially leading to increased costs and limited development opportunities; changes in governmental regulation of derivatives;developments in natural gas-producing and oil-producing countries potentially having significant effects on the price of gas and oil; the effects of changedaccounting rules under generally accepted accounting principles and IFRS ; the amount of future abandonment and reclamation costs, asset retirement andenvironmental obligations; inability to execute strategic plans and realize projected economics, expectations and objectives for future operations and price riskmanagement strategies; and the other risk factors identified in our most recent financial statements and management's discussion and analysis and AnnualInformational Form and our other filings on SEDAR. Unpredictable or unknown factors not discussed herein also could have material adverse effects on ourbusiness and operations and on the forward-looking statements contained herein. 2

Forward Looking Statements

3

Financial Profile (TSX: “PMT”)March 31, 2018 except as noted

Common Shares o/s(1) 60.3 million

Management ownership 49%

Share price(1) $ 0.65

Market capitalization $ 39 million

Net bank debt(2)(4) $ 48 million

TOU share-based loan(3) $ 16 million

Term Loan $ 45 million

Senior unsecured notes $ 32 million

TOU Shares (1.66 million)(3) ($ 39 million)

Net debt(4) $ 102 million

Enterprise value(4) $ 141 million

(1) June 29, 2018 closing market price(2) Net Revolving bank debt, net of working capital(4) at March 31, 2018, adjusted for $10 million disposition proceeds closed May 14, 2018(3) Loan secured by 1.66 MM Tourmaline Oil Corp. (TSX: “TOU”) shares; closing market price at June 29, 2018 $23.49/share(4) See Non-GAAP measures advisory in this presentation

Financial Profile

4

Q4 2016 to H1 2018 – Executing the Transition

Dispositions:

▪ Shallow Gas Disposition October 1, 2016

▪ Sold northeast Alberta GORR ($10 million), closed May 14, 2018

Financing Transactions:

▪ AIMCo 8.1% 4 year Term Loan & 5.4 MM warrants ($45 million)

▪ Equity issuance 5.1 MM shares & 1.1 MM warrants ($9 million)

▪ Increased bank credit facility to $60 million ($54 million increase)

▪ Simplified & reduced TOU share based loan to $16.0 million - self funded with dividend

▪ Senior notes maturity extension to Jan 2022 ($17.9 million)

▪ Early redemption of 2018 Senior Notes in April 2017 ($27.6 million)

▪ Purchased and redeemed $1 million of 2019 Senior Notes

Operational

▪ Drilled 18 wells at East Edson & increased plant capacity to 78 MMcf/d

▪ Grew East Edson production 72% (Q4 2016 to Q1 2018)

Marketing

▪ Secured market diversification contracts to shift gas price exposure on 40,000 MMBtu from AECO to basket of five North American hubs

Positive Impact:

▪ High graded asset base for increased netbacks

▪ $118 million of new funding to manage obligations

▪ Secured liquidity to execute growth-oriented capital program

▪ Enhanced flexibility to manage TOU share investment

▪ Improved debt maturity profile with >50% of debt due in 2021 or beyond

Transformational transactions position Perpetual for value creation

5

• Mannville heavy oil

• Conventional shallow gas

• Viking shallow shale gas

• Bitumen

Eastern Alberta

• Edson Wilrich

• Multi-zone liquids-rich gas

• Tight oil & gas exploration

Deep Basin

LIQUIDS-RICH GAS East EdsonDeep Basin Other

HEAVY OILMannville

SHALLOW GAS & OTHERConventional Misc.PannyTight Shallow Gas

BITUMENPanny, Liege, Other

Asset Summary

Production(1) 12,742 boe/d

Natural Gas (86%) 10,994 boe/d

Oil and NGL (14%) 1,748 bbl/d

P+P Reserves(2) 66.6 MMboe

Reserve to Production Ratio (P+P) (RLI)(3) 13 Years

Bitumen (DPIIP)(4) 1,292 MMbbl

Tourmaline Oil Corp. Shares – 1.66 million(5) $ 39 million

Operating Profile

(1) Production – Q1 2018(2) Year End 2017 – N1 51-101 McDaniel Report on Reserves Data(3) Year-end Reserves divided by year one production estimate from 2017 McDaniel Report (4) DPIIP (Discovered Petroleum Initially In Place), evaluated by internal qualified reserves evaluator in

accordance with COGE Handbook effective January 1, 2018(5) Closing market price @ June 29, 2018 = $23.49/TOU share

6

High Graded Asset Base

Production base focused on East Edson Deep Basin and Mannville

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Building a foundation of resource-style plays

Robust multi-zone inventory for profitable exploration and development

High working interest, operatorship and infrastructure control

Higher value sales mix

Liquids-rich gas

▪Higher heat content gas

▪Condensate & NGL sales

Heavy oil

7

(1) Additional Asset Retirement (ARO) spending of $1.5 to $2.0 million in 2018 (2017 - $2.3 million)

(2) See Non-GAAP measures advisory in this presentation

Capital Spending

($ millions)

2017 Q1 2018Q2 – Q4 2018

Forecast

2018 Total

Forecast

West Central

Liquids-Rich Gas

$6514 gross

(13.4 net) drills

$9 1 gross (1.0 net) drills

(2 frac’s)

$3 - $50 drills

(1 frac)

$12 - $151 gross (1.0 net) drill

(3 frac’s)

Eastern$7

5 gross

(4.3 net) drills

$63 gross (3 net) drills

Waterflood Infrastructure

1 recompletion

$3 - $52 - 3 gross

(1.3 – 2.3 net) drills

5 recompletions

$9 - $105 - 6 gross

(4.3 – 5.3 net) drills

6 recompletions

Total(1)

$73 $15 $6 - $10 $21 - $25

Targeting 2018 capital funded from adjusted funds flow(2)

Monitoring gas prices to assess re-start of East Edson drilling program

8Execution-ready for H2 2018 drilling at East Edson if AECO gas prices improve

Growth-Oriented Capital Plan 54% exit rate production growth (December 2016 vs December 2017)

2018 year over year growth of 10%

2018 Capital Program Optimized for Value Prudently deferring East Edson spending to preserve reserves and value in extreme low AECO gas

price environment

Peak production during winter months to maximize capture of highest commodity prices

Summer shut-ins driven by extreme low AECO gas prices may shift portion of natural gas production profile to Q4 2018

Production Growth

(1) 2018 guidance released May 8, 2018

(1)

9

Market Diversification Strategy

Natural gas market shift to diversify portfolio

Physical delivery at AECO NIT

Receive Daily Index market price at five downstream delivery points, less published transportation and fuel costs, plus $0.02 USD/MMBtu premium

35,000 MMBtu/d effective Nov 1, 2017; 40,000 MMBtu/d on April 1, 2018

5 year term

Full opportunity to manage pricing / hedge new markets

Daily Index can be swapped to Monthly Index at any individual market to manage front month pricing

Term hedges can be established to manage price at any individual market, for all or any portion of the delivery period

Advantages to spread strategy vs. contracting pipe capacity

5 year exposure vs. longer term generally required for contracted pipe capacity matches expected timing for AECO supply to re-balance in broader market

No regulatory requirements or export permits required for US markets

Credit efficient structure through physical delivery obligation at AECO

Forecast to enhance funds flow in 2018

Estimated to enhance PMT netbacks in 2018 by ~$0.98/GJ on contracted volumes ($0.74/GJ blended across total 2018 natural gas volumes)

Gas market diversification contracts forecast to provide significant premium prices over AECO with increased pricing stability

AECO Fixed Price 14%

Empress 7%

Dawn 14%

Michcon 9%Chicago

21%

Malin 19%

NGL -Condensate

4%

NGL - Other 3%

Crude Oil Fixed 8%

Crude Oil 1%

2018 Price Exposure Net of Royalties (1)

(1) As per guidance released May 8, 2018(2) 2018 YTD Settled and Mark to Market June 29, 2018 = $33 million

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Operating Costs Transportation Costs Cash G&A

Interest Royalites Revenue

• Top quartile operating costs with East Edson concentration and 2016 sale of high fixed cost mature assets combined with infrastructure control, operatorship and low cost culture

• Reduced TCPL tolls through West Central Alberta production concentration

• Total cost structure decreased >17% in 2017 with growing production across largely fixed cost base

Reducing Costs

• Targeting higher value production mix

• Capital timing for peak production during winter months, allowing for declines through Q2/Q3

• Market diversification netback arrangement and hedging eliminates 2018 AECO exposure after royalties

Maximizing Revenue

10

Increasing Margins

Increasing margins driven by:

Maintaining netbacks despite lower current AECO prices

Maintaining Margins despite lower AECO 2018 forward strip

(1) 2018 Forecast reflects guidancereleased May 8, 2018

11

2018 Projected Adjusted Funds Flow(1) Sensitivities

2018 adjusted funds flow at current commodity prices(2) ~ $0.45/share

(1) Cash flows from operating activity sensitivities are comparable to adjusted funds flow sensitivities; See Non-GAAP measures advisory in this presentation

(2) See May 8, 2018 News Release “Outlook” for additional guidance, prior guidance assumptions and commodity price assumption.

(3) Q1 2018 Adjusted Funds Flow = $9.1 million

(4) 2018 Q2 – Q4 forward average prices May 7, 2018: ‘NYMEX gas price = US$2.78/MMBtu; WTI price = US$66.32/bbl; WCS differential = US$21.48/bbl;CAD/USD Exchange Rate US$1.00 = $1.281

Guidance assumptions Current Guidance(2) Prior Guidance(2)

Exploration and development expenditures $21 – $25 million $23 - $27 million

2018 cash costs $14.00 - $15.00/boe $13.00 - $14.00/boe

2018 average daily production 10,500 – 11,000 boe/d 11,500 boe/d

2018 average production mix 15% oil and NGL 17% oil and NGL

2018 Projected Adjusted Funds Flow: $25 to $28 million(2)

$0.0 $1.0 $2.0 $3.0 $4.0 $5.0

CAD/USD Exchange Rate (+/- $0.10)

WCS (+/- USD $2.50/bbl)

WTI (+/- USD $5.00/bbl)

NYMEX gas price (+/- $0.25 USD/MMBtu)

Adjusted Funds Flow Change ($ millions)

Q2 –Q4 Adjusted Funds Flow Sensitivities(1)(4)

12Positioned for short and long term value creation

Grow Value of Greater Edson Liquids-Rich Gas

Grow Value of Eastern Alberta Portfolio

Advance High Impact Opportunities

Optimize Balance Sheet For Growth

2018 Strategic Priorities

STRATEGIC PRIORITY #1

GROW VALUE OF GREATER EDSON LIQUIDS-RICH GAS

1466 (63.3 net) locations booked in 2017 Year End McDaniel reserve report

1 frac scheduled in Q4 2018; ERH drill-ready locations ready to execute

Edson Activity

ERH pad• 2,460 – 3,500 metres• 2-23 frac Q4 2018

Area Capacity: 78 MMcf/d• West Wolf: 65 MMcf/d• Rosevear: 13 MMcf/d

Pre 2017

2017

Q1 2018

H2 2018

2018 Drill ready

2014: East Edson JV Royalty deal

•Sold 5.6 MMcf/d plus associated liquids for $120 MM investment

2015: Growth driven by JV Royalty sale commitments

•Constructed new 30 MMcf/d West Wolf Lake plant on stream July 2015 & expanded to 45 MMcf/d September 2015

•Drilled to fill East Edson facilities and transportation contracts

▪ 60 MMcf/d plus NGL’s: 45 MMcf/d at West Wolf & 15 MMcf/d WI owner gas at Rosevear

2016: Preserving value in low gas price environment

•1 drill only and allowed for natural declines

•Shut-in sour volumes through third-party facility

2017: Drill to grow production to expanded TCPL transportand plant capacity

•1 rig Wilrich drilling program to fill existing infrastructure & meet new transport in December 2017 (originally scheduled for April 2018)

•Added 15 MMcf/d compression West Wolf for area capacity of 78 MMcf/d

2018: Optimize value through seasonal production

▪Allow declines and ramp up production for stronger winter month pricing

2019: Sustain with Wilrich and Secondary Zone Evaluation

▪Advance evaluation of secondary Viking, Notikewin, Fahler & Gething horizontal development potential supported by 3D seismic

15Infrastructure and inventory in place for profitable growth

East Edson

West Edson Sold to Tourmaline April 1/15 for 6.75 million TOU shares estimated at $258 million (~5,750 Boe/d)

Greater Edson Liquids-Rich Gas Wilrich Play Performance

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Edson Type Curves

Year End 2017 Reserve value reflects strong capital efficiencies & low operating costs

McDaniel YE 2017 TPP West Type Curve Economics (1)

Price Deck McDaniel January 1/2018

Capital (D,C & T) $ 4.5 MM

NPV @ 10 % $ 3.5 MM

ROR 45%

F&D $ 6.57/ boe

Capital Efficiency $7,800 boe/d

Payout 2.1 Years

Recycle Ratio 2.1

Year 1 Pricing $2.13/ GJ (Aeco); $54.06/bbl NGL

Operating Costs $1.57/ boe (first year)

Well Depth 4,350 M HZ; 2,625 TVD

Lateral Length 1,700 Meters

Type CurveIP 7.0 MMcf/d1 year exit rate 1.9 MMcf/d11.75 bbl/MMcf NGL/condensate

2P Reserves 4.1 Bcfe per well

Well defined TPP type curves(1) provide reliable forecasts ERH wells length-adjusted to increase rate & reserves per wellMcDaniel prices provides compelling investment thesisCurrent natural gas strip prices suggest deferring capital investment increases value

Average(2)

West TPP Type Curve(3)

West TPP Low Type Curve(3)

East TPP Type Curve(3)

(1) Actuals and type curves adjusted to common 1,800m length by linearly adjusting completed length; Rate*1,800/(completed horizontal length (m)). All rates are raw gas and exclude associated liquids

(2) Averages represent normalized moving average rate of all Perpetual wells rig released since Jan 2014”.(3) East Edson East and West type curves derived from 2017 N1 51-101 McDaniel Proved Plus Probable (TPP

Report) on reserves data (the “N1 51-101 Report”)

Continuous improvement in drilling & frac design driving strong capital efficiency & reduced future development capital

• 2017 - Monobore design proved up for 1,700 metre type curve length wells

• H2 2017/2018 – Transitioning to:

Optimized monobore design with consistent rig program and longer laterals

Extended reach horizontal wells (“ERH”) targeting 2,200 to 3,400 metre lateral lengths

Dissolvable frac balls, eliminating costs to drill out balls and seats

17

1) Capital efficiency = Cost to drill, complete, equip and tie in/first 12 months average daily production, based on actual capital and average daily production to date (with McDaniel 2017 PDP forecast for wells onstream less than 12 months). The ERH estimate is based on future estimates of proven undeveloped locations from the McDaniel 2017 report.

East Edson Wilrich Capital Efficiency

Targeting further improvements in capital efficiency

18Increasing production over fixed cost base driving top decile operating cost structure at East Edson of < $2.50/boe

Top Quartile Operating Cost Structure

(1)

(1) See May 8, 2018 news release “Outlook” for Operating Cost guidance assumptions

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STRATEGIC PRIORITY #2

GROW VALUE OF EASTERN ALBERTA PORTFOLIO

20

Eastern Alberta – Mannville

2018 Capital Program targeting development drilling and waterflood projects

Access to Large Resource• > 190 MMbbl Discovered Petroleum Initially In Place(1)

• 4.7 MMbbl produced to date (<3%)

• 2.9 MMbbl remaining TPP reserves (4% recovery factor)(1)

Low cost HZ development• $0.9 MM DC&T per well(1)

• Capital cost reduction of 30% materially enhances profitability in current commodity price environment

• Average expected initial rate ~50-120 bbl/d(1)

2017 Capital Program

•4 (3.3 net) heavy oil wells 3 exploratory / 1 development)

•Waterflood Expansion

2018 Capital Program

•Q1 3 (3 net) wells (7 laterals)

•H2 up to 3 (2.3 net) wells

•Continued waterflood expansion

8 Producing Mannville pools

•6 Lloyd, 2 Sparky

•Q1 2018 production ~860 boe/d

(1) Parameters as per 2017 NI51-101 McDaniel Report in accordance with COGE Handbook effective Jan 1, 2018. Recovery factor based on aggregate McDaniel TPP + Cum produced to date divided by aggregate DPIIP. Initial rates as per range in PPUD bookings.

2111 (10.0 net) locations booked in McDaniel year end 2017 Reserve Report

Unbooked Inventory of 31 (30.4 net) locations

Well Economics

Capital (D,C & T) $0.9 MM

NPV @ 10 % $1.5 MM

ROR 184 %

F&D $8.35 / boe

Payout 0.9 years

Capital Efficiency(First Year)

$10,500/boe/d

Recycle Ratio(First Year)

3.9

Oil over shakers while drilling Sparky development pad HZ pad site

Assumptions (1)

2018 Pricing(McDaniel Jan 2018 forecast)

CAD$47.90/bbl wellhead heavy priceWTI US$58.50/bbl; WCS CAD$51.90/bbl; Offset CAD$4.00/bbl

Operating Costs$6.03/boe (first year) &$13.83/boe (lifetime)

Average Well IP 100 bbl/d to 59 bbl/d in year 1

Ultimate Recovery 100 Mbbl oil per well

RoyaltiesMixed Crown (Modernized Royalty Framework) and Freehold

Mannville Heavy Oil Drilling Inventory

(1) Mannville Heavy Oil P+PUD (Total Proved Plus Probable) reserve parameters as per 2017 N1 51-101 McDaniel Report on Reserves Data

22

Mannville Heavy Oil Pools Waterflood Response

Waterflood response yielding positive technical revisions

Base annual decline rate estimated at 8%

Waterflood

Wedge Volumes

from Capital

Spent To-Date

F&D Netback Recycle Ratio

PoolCapital To-Date

($M)

To-date (Mar 2018)(Mbbl)

Ultimate(Mbbl)

To-date (March 2018)($/bbl)

Ultimate ($/bbl)

Q1 2018Netback ($/bbl)

To-date (Mar 2018)

Ultimate

B $3,640 283 943 $12.86 $3.86 $22.58 1.8 5.9

I2I $4,394 186 659 $23.61 $6.66 $25.51 1.1 3.9

Total $8,034 468 1,603 $17.17 $5.01

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23Large scope for increased reserves and value through continued waterflood management

Further potential with other enhanced recovery processes in future

Select Pools Currently Under

Waterflood

DPIIP (2)

(MMbbl)

Cumulativeproduction to YE 2017

(MMbbl)

TPP Reserves booked at YE

2017 (2)

(MMbbl)

Implied Recovery

Factor(%)

Sparky I2I (1) 25 0.5 0.4 4%

Upper Mannville B 133 3.4 1.7 4%

Upper Mannville T8T 11 0.2 0.5 7%

Total 169 4.2 2.7 4%

Internal forecasts suggest higher recoveries possible

Waterflood and Enhanced Oil Recovery Scope

(1) Net working interest(2) DPIIP (Discovered Petroleum Initially In Place) and TPP Reserves, as per 2017 NI 51-101 McDaniel

in accordance with COGE Handbook effective Jan 1, 2018

STRATEGIC PRIORITY #3

ADVANCE HIGH IMPACT OPPORTUNITIES

301 net sections (192,416 net acres) of oil sand leases

Various formation targets and ultimate recovery methods

6 potential project areas with varying potential

Over 1.3 billion bbls DPIIP (1) at Liege and Panny

Sold 37 net sections of select oil sands leases for $6.1 million in Q1 2016

Retained 1% GORR – Sold GORR for $10 million in Q2 2018

25Bitumen lands represent large resource in place and material option value

R1W5 R21 R17 R13W4R5R9

T98

T95

Perpetual OS Leases

Overriding Royalty Lands

Perpetual Panny Pilot

Experimental

Primary Projects

Thermal Projects

Bitumen

(1) DPIIP (Discovered Petroleum Initially In Place), evaluated by internal qualified reserves evaluator in accordance with COGE Handbook effective January 1, 2018

26

Excellent reservoir quality in Bluesky homogeneous estuarine sand facies

RoadsNatural Gas Pipeline Oil Well Effluent PipelinePerpetual Gas PlantPerpetual Oil Sands RightsOther Perpetual Lands

Low rate cold flow possible without solvent or thermal assistance

Average pay thickness 11 m

Low viscosity bitumen

• ~15,000 cp at 25oC

• 50,000 cp at 11oC reservoir temp

• Highly mobile at ~70oC

Panny Bluesky Resource Assessment

• 755 MMbbl DPIIP (1)

• Reservoir simulation model supports >50% recovery factor

• Resource sufficient to support >25,000 bbl/d commercial project for 20 - 25 years

LEAD Pilot Phase 1

• Phase 1 utilized a single horizontal well

• Heating commenced in October 2015

• First production in March 2016

• Cycle 2 May – September 2016

• Cycle 3 Solvent injection October 2016

• Cycle 4 December 2016 – May 2017

• IETP funding reimbursed 30% of all capital and operating costs through YE 2016

Pilot Phase 2

• Phase 2 utilizing solvent is currently being evaluated

Experimenting with lower energy intensity extraction technologies compared to traditional steam-based thermal methods to mobilize bitumen

Panny LEAD Pilot

Bitumen – Panny Bluesky

(1) DPIIP (Discovered Petroleum Initially In Place), evaluated by internal qualified reserves evaluator in accordance with COGE Handbook effective January 1, 2018

27Conductive heating with water or solvent injection for mobility and pressure support

First stage of pilot – single well Cyclic Heat Stimulation completed in Q2 2017

Electrical resistive heating and production in a single horizontal well to validate reservoir flow model and heater technology

Two highly instrumented observation wells in close proximity to the horizontal heater well monitoring reservoir response

Four cycles executed through 2016 and Q1 2017 of varying heat stimulation and solvent parameters

Exceeded cumulative oil production expectations by >100%

Second stage of pilot

Solvent screening study underway; Alternative heat delivery systems being evaluated

Second stage pilot design guided by first stage learnings and economic viability assessment to be scoped in H1 2018; Decision toproceed with second stage of pilot will follow

Pilot results will drive full scale development potential assessment

Top Gas

Heaters / Injectors

Oil

Producer

LEAD Pilot Stage 2 Configuration

LEAD Process Technology PilotLow Pressure Electro-Thermally Assisted Drive

STRATEGIC PRIORITY #4

OPTIMIZE BALANCE SHEET FOR GROWTH

29

Balance Sheet(1)

Year End Net Debt to TTM Funds Flow ratio forecast at 3.6 times

Bank debt: $48 million• Comprised of $37 million revolving bank debt and $11 million working capital deficiency

• Credit facility borrowing limit $60 million; Term through May 2019

• Next borrowing limit redetermination scheduled prior to November 30, 2018

Term Loan: $45 million• 8.1% interest rate; Matures March 2021

Senior Unsecured Notes: $32 million

TOU Share-based loan: $16 million• Matures July 2018 – Opportunity to re-finance

• 40% loan to value ratio(1)

• Margin triggers reset if loan to value ratio exceeds 55%

TOU Shares: 1.66 million @ $23.49/share(1) = ($39 million)

Net Debt(1): $102 million

(1) As of March 31 2018, adjusted for $10 million disposition proceeds announced May 14, 2018 and market price of TOU share investment June 29, 2018

Series Face ValueCoupon

RateMaturity

DateSemi Annual Interest

Payment dates

8.75% 2019 $14.6 million 8.75% July 23, 2019 January 23 & July 23

8.75% 2022 $17.9 million 9.75% to Jan 2018;

8.75% thereafter

Jan 23, 2022 January 23 & July 23

30

Debt Repayment and Liquidity Profile

2017 financings and recent asset sales strengthened debt repayment profile and secured funding for growth plans while enhancing liquidity

Available liquidity(1)(2) of ~$42 million

Comprised of available bank line plus TOU share investment, net of TOU share based loan

(1) As of March 31 2018, adjusted for disposition proceeds closed and market price of TOU share investment June 29, 2018(2) See Non-GAAP Measures advisory in this presentation

INVESTMENT THESIS

COMPELLING DISCOUNT TO NET ASSET VALUE

TORQUE TO GAS PRICE RECOVERY

32

Sum of the Parts – Year-End 2017

Year-End 2017 Reserve-Based NAV = $5.68/share

(1) Net asset value per share based on 59.3 million shares outstanding. Reserve valuation based on NPV10% McDaniel reserves and pricing; Independent third party undeveloped land assessment as at December 31, 2017

(2) As per (1) above; Undeveloped land replaced with risk-discounted unbooked inventory in East Edson and Mannville only; West Central and Eastern Alberta Other unbooked inventory locations captured only through undeveloped land valuation outside East Edson and Mannville; Includes incremental TOU share value based on 12 month TOU analyst consensus target price of $30.44/share

(3) As per (1) and (2) above; Unrisked unbooked inventory in East Edson and Mannville only; see oil and gas advisories in this presentation

Expect future PPDP growth & TPP reserve replacement through cycling in of East Edson technical reserves from unbooked inventory

▪ YE 2017 year-over-year reserve growth: 100% PDP; 44% PPDP; 9% TPP (As per 2017 and 2016 McDaniel NI 51-101 Report)

Unbooked Inventory Unbooked Inventory

Net Bank Debt

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Key Investment Highlights

High Quality Assets

Asset base repositioning for resource-style and diversification successful

Edson Wilrich liquids-rich gas inventory well-defined providing high capital efficiency growth

Mannville heavy oil delivering diversified cash flow with material secondary recovery potential

Prospects for short and long term growth from resource-style plays

Increasing percentage of high netback production in asset mix

Track Record of Operational Performance

Execution and operational excellence in chosen strategies

Multiple Levers to Manage Balance Sheet

2018 capital program funded by adjusted funds flow

Additional potential for growth in available liquidity through TOU share price appreciation

Pursuing further asset dispositions to continue to enhance liquidity

Value

Trading well below ‘Reserve-Based’ Net Asset

Tremendous leverage to gas prices with asset mix and TOU exposure

No net exposure to 2018 AECO gas price

High impact value potential from medium to long term assets

Spectrum of opportunities for value creation upon emergence from bottom of commodity price cycle

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ADDITIONAL INFORMATION

Susan Riddell Rose President & CEO

Mark Schweitzer Vice President, Finance and CFO

info@perpetualenergy.com EMAIL

800.811.5522 TOLL FREE

403.269.4400 PHONE

403.269.4444 FAX

3200, 605 – 5 Avenue SWCalgary, Alberta Canada T2P 3H5

W W W. P E R P E T U A L E N E R G Y I N C . C O M

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Non GAAP Measure Advisories

NON-GAAP MEASURES: The terms “adjusted funds flow”, “adjusted funds flow per share”, “adjusted funds flow per boe”, “available liquidity”, “cash costs”, “gas over bitumen revenue, net ofpayments”, “net working capital deficiency (surplus)”, “net debt and net bank debt”, “operating netback”, “realized revenue” and “enterprise value” used in this presentation are not recognizedunder GAAP. Management believes that in addition to net income (loss) and net cash flows from operating activities as defined by GAAP, these terms are useful supplemental measures to evaluateperformance. Users are cautioned however that these measures should not be construed as an alternative to net income (loss) or net cash flows from operating activities determined in accordancewith GAAP as an indication of Perpetual’s performance and may not be comparable with the calculation of similar measurements by other entities. Additional information on these Non-GAAPmeasures, including reconciliations to applicable GAAP measures, are included in the Company’s most recently filed Management Discussion and Analysis and may be accessed through the SEDARwebsite (www.sedar.com) or Perpetual’s website (www.perpetualenergyinc.com).

Adjusted funds flow: Management uses adjusted funds flow and adjusted funds flow per boe as key measures to assess the ability of the Company to generate the funds necessary to financecapital expenditures, expenditures on decommissioning obligations and meet its financial obligations. Adjusted funds flow is calculated based on cash flows from operating activities, excludingchanges in non-cash working capital and expenditures on decommissioning obligations since Perpetual believes the timing of collection, payment or incurrence of these items is variable.Expenditures on decommissioning obligations may vary from period to period depending on capital programs and the maturity of our operating areas. Expenditures on decommissioning obligationsare managed through our capital budgeting process which considers available adjusted funds flow. The Company has also deducted the change in gas over bitumen royalty financing from adjustedfunds flow in order to present these payments net of gas over bitumen royalty credits. These payments are indexed to gas over bitumen royalty credits and are recorded as a reduction to theCorporation’s gas over bitumen royalty financing obligation in accordance with IFRS. Additionally, the Company has excluded payments of restructuring costs associated with the disposition of theShallow Gas Properties, which management considers to not be related to cash flow from operating activities. Restructuring costs include employee downsizing costs and surplus office leaseobligations. Commencing in the first quarter of 2018, the Company no longer excludes ‘exploration and evaluation – geological and geophysical costs’ (Q1 2018 and 2017 – nil) from the calculationof adjusted funds flow as these costs are no longer significant to the Company’s business. The calculation of adjusted funds flow for comparative periods has been adjusted to give effect to thischange. Adjusted funds flow per share is calculated using the same weighted average number of shares outstanding used in calculating earnings per share. Adjusted funds flow is not intended torepresent net cash flows from (used in) operating activities calculated in accordance with IFRS. Adjusted funds flow per boe is calculated as adjusted funds flow divided by total production sold in aperiod.

Available liquidity: Available Liquidity is defined as Perpetual’s Credit Facility Borrowing Limit, plus TOU share investment, less borrowings and letters of credit issued under the Credit Facility andTOU share margin loan. Management uses available liquidity to assess the ability of the Company to finance capital expenditures, expenditures on decommissioning obligations and meet financialobligations.

Cash costs: Management believes that cash costs assist management and investors in assessing Perpetual’s efficiency and overall cost structure. Cash costs are comprised of royalties, productionand operating, transportation, general and administrative and cash interest expense and net income. Cash costs per boe is calculated by dividing cash costs by total production sold in a period.

Net debt and net bank debt: Net bank debt is measured as current and long-term bank indebtedness including net working capital deficiency (surplus). Net debt includes the carrying value of netbank debt, the principal amount of the Term Loan, the principal amount of the TOU share margin loan and the principal amount of Senior Notes reduced for the mark-to-market value of the TOUshare investment. Net bank debt and net debt are used by management to analyze borrowing capacity.

Net working capital deficiency (surplus): Net working capital deficiency (surplus) includes total current assets and current liabilities excluding short-term derivative assets and liabilities related tothe Corporation’s risk management activities, current portion of gas over bitumen royalty financing, TOU share investment, TOU share margin loan and current portion of provisions.

Operating netback: Perpetual considers operating netback an important performance measure as it demonstrates its profitability relative to current commodity prices. Operating netback iscalculated by deducting royalties, operating costs, and transportation from realized revenue. Operating netback is also calculated on a per boe basis using production sold for the period. Operatingnetback on a per boe basis can vary significantly for each of the Company’s operating areas.

Realized revenue: Realized revenue is the sum of realized natural gas revenue, realized oil revenue and realized NGL revenue which includes realized gains (losses) on financial natural gas, crudeoil and foreign exchange contracts but excludes any realized gains (losses) resulting from contracts related to the disposition of the Shallow Gas Properties. Realized revenue, excluding foreignexchange contracts is used by management to calculate the Corporation’s net realized commodity prices, taking into account monthly settlements on financial crude oil and natural gas forwardsales, collars and basis differentials. These contracts are put in place to protect Perpetual’s adjusted funds flow from potential volatility in commodity prices, and as such, any related realized gainsor losses are considered part of the Corporation’s realized price.

Enterprise value: Enterprise value is equal to net debt plus the market value of issued equity and is used by management to analyze leverage. Enterprise value is not intended to represent the totalfunds from equity and debt received by the Corporation upon issuance.

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Oil and Gas Advisories

OIL AND GAS ADVISORIES: The presentation refers to F&D (finding and development costs), ROR (rate of return), payout and recycle ratio which have been prepared by management and areused to measure performance. These terms do not have standardized meanings or standard calculations and are not comparable to similar measures used by other entities. In this presentationinternal rate of return refers to the discount rate that makes the net present value of all cash flows of a project equal zero and payout refers to the time required to pay back the capitalexpenditures (on a before tax basis) of a project. The presentation also refers to capital efficiency which is defined as a type of capital efficiency that measures the cost to add an incrementalbarrel of flowing production. Specifically, for the average production efficiencies of our plays, Perpetual uses the total actual/projected drill, complete and tie-in capital divided by the total of thewell initial twelve-month production rate.

RESERVE ESTIMATES: The reserves estimates contained in this presentation represent our gross reserves as at December 31, 2017 and are defined under NI 51-101, as our interest beforededuction of royalties and without including any of our royalty interests. It should not be assumed that the present worth of estimated future net revenues presented in the tables above representsthe fair market value of the reserves. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material. The recovery and reserves estimates ofour crude oil, NGL and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and NGLreserves may be greater than or less than the estimates provided herein.

All future net revenues are estimated using forecast prices, arising from the anticipated development and production of our reserves, net of the associated royalties, operating costs, developmentcosts, and decommissioning obligations and are stated prior to provision for finance and general and administrative expenses. Future net revenues have been presented on a before tax basis.

Estimated values of future net revenue disclosed herein do not represent fair market value.The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to theeffects of aggregation.

Our estimated reserve based NAV is based on the estimated NPV10 of all future net revenue from our proved plus probable reserves, before tax, as estimated by McDaniel at year-end, with theestimated value of our undeveloped land, and less net debt. Common share values in our NAV per share metric are calculated using common shares outstanding, net of shares held in trust. Ourrisked and unrisked NAV includes Unbooked inventory comprised of 47 gross (40.4 net) drilling locations at East Edson and 31 gross (30.4 net) drilling locations at Mannville, for which reserveshave not been assigned.

VOLUME CONVERSIONS: Barrel of oil equivalent (“boe”) may be misleading, particularly if used in isolation. In accordance with National Instrument 51-101 (“NI 51-101”), a conversion ratio fornatural gas of 6 Mcf:1 bbl has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at thewellhead. In addition, utilizing a conversion on a 6 Mcf:1 bbl basis may be misleading as an indicator of value as the value ratio between natural gas and crude oil, based on the current prices ofnatural gas and crude oil, differ significantly from the energy equivalency of 6 Mcf:1 bbl.

BOE EQUIVALENTS: Perpetual’s aggregate proved and probable reserves are reported in barrels of oil equivalent (boe). Boe may be misleading, particularly if used in isolation. In accordancewith NI 51-101 a boe conversion ratio for natural gas of 6 Mcf: 1 boe has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and doesnot necessarily represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly differentfrom the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

The following abbreviations used in this presentation have the meanings set forth below:

bbls barrelsboe barrels of oil equivalentMcf thousand cubic feetMMcf million cubic feetMMBtu million British Thermal UnitsGJ gigajoules