February, 2020

Opportunity overview

Opportunity Summary

Opportunity

◼ Privately held company owned 90% by insiders

◼ Team members with previous experience and success

with early stage Duvernay plays

◼ Unique opportunity to be an early stage investor in the

most prolific, scalable light oil resource play in Canada

◼ Large contiguous 100% working interest land base in

the heart of a significant new oil fairway extension.

◼ Premium reservoir characteristics, low cost early entry

and proximity to infrastructure result in top tier full cycle

economics that will compete favorably with leading

shale plays in North America

◼ Land position being de-risked by offsetting oil

production

Financing Strategy

◼ In 2020 will raise capital to fund Duvernay development

program

Early – Stage Land Capture Opportunity Prior to Development

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Source: GLJ Petroleum Consultants

Investment highlights

Opportunity to Invest in an Early Stage Top Tier North American Light Oil Resource Play

Prolific Light Oil

Resource

• Analogous rock to the Kaybob oil window, significantly over-pressured and highly receptive to fracturing

• Thick reservoir and high TOC content with ideal thermal maturity

• Dense well control and quiet depositional environment creates high predictability and repeatability

• New offset oil well confirms high quality (~40°API) oil production

Large Contiguous

Land Base and

Inventory

Best Netbacks and

Premium

Economics

• Early entrant establishing a land base of 176 sections in the heart of play

• Drilling inventory of >400 two mile horizontals in upper zone on existing land at 300m inter-well spacing

• Expansion potential to >200 sections and 500 locations with additional upside through down-spacing

• Produces North American leading operating netbacks of ~$50/boe at $60 WTI

• Analogous Kaybob oil window results are industry leading, conservative half cycle IRR’s of >50% and payback

of <2 years

• Break-even at $35 WTI, 6 years of 5% Crown royalties (13% Avg Lifetime)

Strategic Location

• Close proximity to town of Valleyview and major highways, farmland with year-round access

• 100% crown land and excellent tenure

• Access to well-developed surface infrastructure, oil / gas egress and gas processing, and fresh water for

unconstrained development and strong full cycle returns

Experience and

Leadership

• Management has a proven track record of identifying and developing high quality resource plays and

extensive Duvernay success

• Management and board heavily invested with 90% insider ownership

• Capturing new industry results and technical learnings at an exponential rate

Outsized Return

Potential

• Land position purchased at $42 / acre ($105 / ha), historical land prices in Kaybob at $10,000+/acre

• Early entry, cheap land capture and strategic location translate into top tier full cycle returns

• 10 year plan to grow to $2.5 Billion+ valuation

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Management Team

Team has had significant management and operational

experience in successfully prospecting and

developing resource plays, including the Duvernay

Mapped and evaluated the prospect, internally

financed and captured an initial 176 section land

position with opportunities to expand to 200+ sections

Developed collaborative relationships with leading

Duvernay players resulting in free real time capture of

information and best practices from >$1 billion of

capital expenditures and R&D

Larry Evans, Executive Chairman◼ Engineer, business strategy

◼ 32 Degrees Capital, numerous operating companies

Mitch Putnam, Executive Director◼ Geologist, business strategy

◼ 32 Degrees Capital, numerous operating companies

Brad Culver, President◼ Geophysicist with extensive experience prospecting and developing

resource plays including Duvernay

◼ Teine Energy, Birchcliff Energy, Encana Corporation

Melissa Fabreau, VP Engineering◼ Engineer specializing in resource play development strategy, reservoir

evaluation and project management

◼ 32 Degrees Capital, Enerplus Corporation

Trent Baker, CFO◼ Finance/Accountant focused on financial analysis and business strategy

◼ 32 Degrees Capital, KPMG

Drilling/Completions (TBD)

Operations (TBD)

Geoscientist (TBD)

Value creation through proven technical expertise and prudent financial stewardship

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Positioning The B-32 Land Base

Land Base

◼ 176 sections (>110,000 acres) of 100% crown land

◼ 4 year license terms with an extension of a 5 year

intermediate term

◼ 1 well continues 32 sections

Offsetting Activity

◼ $20+ MM currently being spent on 3 offsetting

Duvernay HZ wells by Hitic Energy, an early

mover in the Kaybob oil window

◼ First well came on production fall 2019 and

is a confirmed oil well

◼ Further production data from first well and

production results from next two wells will further

de-risk B-32’s land base

Reservoir Characterization

◼ 3 Hitic Energy wells drilled, 8 cored wells and 11

wells with oil shows within to define the sweet spot

◼ Black oil window

◼ > 15 MMbbl OOIP

◼ Tmax of 443°C – 450°C

◼ Confirmed 38°- 40° API light oil

◼ 4-6% TOC

◼ Confirmed 15 kPa/m (50% over-pressured)

Duvernay penetrations in Blue

Hitic Wells in Blue

Bounding depths 2500m to 2900m

Hitic Energy

B-32 Exploration

B-32 offers a unique opportunity to invest into a large contiguous land position currently being de-risked by offsetting activity

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Producing Oil Well

2 well Pad

Drilled May/June 2019

Strategic location & Infrastructure

Oil Egress◼ Proximal to oil terminals for initial trucking and

potential future connections for pipelines

◼ Pipeline options to underutilized existing infrastructure

◼ Pembina Phase VII expansion onstream in 2021

Gas Processing◼ TCPL receipt points with available firm service

◼ Two under-utilized active gas plants reducing need to build out new infrastructure

Water Sourcing◼ Numerous surface sources with no water

restrictions in the area

◼ Ability to add storage and water recycling to support future growth

Location/Access

◼ Proximal to Valleyview on well developed roads

◼ Farm land with year round access

Multiple Trucking Options in Area

• Pembina Valleyview Truck Terminal

• Tervita Disposal Facility

• Plains Midstream Facility

Scalable infrastructure in

place for future expansion

CNRL Sturgeon Lake Gas

Plant @10% utilization

TCPL Receipt Point

Sufficient capacity to

meet 10-year plan

B-32 Basin is located around legacy infrastructure with excess gathering, egress and water supply for future development

➢ Result is <$10 operating costs, modest facility/pipeline capital spending, and manageable firm commitments

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Reservoir Comparative

Pressure Maturity

0%

1%

2%

3%

4%

5%

6%

7%

8%

B-32 Vesta Kaybob OilWindow

PermianWolfcamp

"B"

TOC

(%

)

Storage

0

0.05

0.1

0.15

0.2

0.25

0.3

B-32 Vesta Kaybob OilWindow

PermianWolfcamp

"B"

Po

ssio

n's

Rat

io

Fracability

Reservoir Parameters in Line With Leading Duvernay and North American Oil Plays

Thickness Depth

400

410

420

430

440

450

460

B-32 Vesta Kaybob OilWindow

PermianWolfcamp

"B"

TMax

°C

6

0

5

10

15

20

25

30

35

40

45

B-32 Vesta Kaybob OilWindow

PermianWolfcamp

"B"

Ne

t P

ay (

m)

-

500

1,000

1,500

2,000

2,500

3,000

3,500

B-32 Vesta Kaybob OilWindow

PermianWolfcamp

"B"

Dri

llin

g D

ep

th (

m)

02468

101214161820

B-32 Vesta Kaybob OilWindow

PermianWolfcamp

"B"

Pre

ssu

re G

rad

ien

t (K

Pa/

m)

Industry developments

Kaybob Oil Window Development

◼ Analogous reservoir and geo-mechanical properties to B-32

◼ Hundreds of millions of dollars spent on R&D throughout the

basin

◼ Productivity has continued to increase with evolving

completion design and longer laterals as industry moves

towards the optimal frac recipe

◼ A number of cost savings initiatives including switching to

slickwater (from hybrid fluids) and using lower cost domestic

brown sand

◼ Oil window is moving from delineation into development,

which will drive considerable further cost savings

Emerging As The Premier Scalable Light Oil Play In Canada

◼ “Two Creeks Outperforming East Shale Basin”

B-32 Northern

Extension

KAYBOB

Analogous to Murphy’s Kaybob Oil wells, the B-32 Type Curve has room for improvement

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Murphy Oil Window Dataset

147 Duvernay Wells Drilled in 2019(50% Drilled In Liquids Window)

Source: Athabasca Oil

Two Creeks

Analog & Type Curve Comparison

Calendar Daily Oil Production

Cumulative Oil Production to Date

◼ The B-32 Type Curve of 570 bbl/d (89% Liquids) and an EUR of 400 mbbl

◼ Type curve has been developed based on the Murphy oil window dataset

◼ Active 2019 drilling will lead to new wells brought on production in 2020

– 14 – 2019 Murphy Drills

– 4 – 2019 Shell Drills

– 5 – 2019 Hitic Energy Drills

◼ B-32 will incorporate the learnings and advancements from industry activity into our first well

B-32 Type Curve

B-32 Type Curve

Analogous to Murphy’s Kaybob Oil wells the B-32 Type Curve has room for improvement

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6 Month Cumulative Production

Murphy wells - 79 Mbbl

Type curve – 69 MbblB-32 Type Curve

Half Cycle Economics

Source: RBC Capital Markets

Based on flat prices: $60 WTI, US$5.50/bbl diff, $3/mcf Nymex, $0.8 USD/CAD

Light oil, 5% Royalty for first 5 years, sub-$10 operating costs to create industry leading netbacks

Development Base Case Assumptions

◼ Type curve IP30 of 570 bbl/d, EUR 400 Mbbl, GOR 800

scf/bbl

◼ 2,800 m (9000 ft) depth, 2 mile lateral length

◼ DCT $7.00 MM development well cost

◼ Pipeline connected

At $7.0 MM NPV10% per well the full development value of

400 locations is ~$2.8 Billion with further expansion

potential

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$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

First 12 Month Netback ($/boe) at US$60 WTI

Rates & Costs Base Case

IP30 Rate bbl/d 570

IP 365 bbl/d 248

EUR/Well Mbbl 400

% Liquids ¹ 89

Total Costs $MM 7.00

Average Royalty Rate % 14

Operating Costs (lifetime) $/boe 9.50

Payback years 1.73

IRR BT % 57

NPV 10 BT $MM 7.0

Netback $/boe 50.43

F&D Costs $/boe 15.56

Recycle Ratio x 3.24

Capital Efficiency (IP365) $/boed $25,098

¹GOR of 800scf/bbl

²Flat pricing using $60 WTI, Strip FX & AECO, Flat $10.00 CLS Diff

Economic assumptions: -$1.50 Diff (incl pipeline tariff) to CLS, 10%

Gas Shrinkage

Type Well Economics at US$60 WTI²

Summary

Proven Productivity

◼ Offset high quality oil production creates a low risk repeatable and scalable project

◼ Confirmed overpressure analogous to Murphy’s Kaybob North oil window

◼ All key reservoir parameters including pressure, storage, maturity, thickness of pay and fracability compare favorably

to North America’s top oil plays

Very large, scalable light oil project

◼ +176 sections, ability to acquire 100+ sections of additional Crown land

◼ Currently >400 locations, upside to 500+ with additional land capture

Attractive Economics

◼ Strong half cycle economics with conservative half cycle IRR’s >50% and payback <2 years

◼ Great full cycle economics due to early low cost entry, strong half cycle economics, and availability of egress and

infrastructure

◼ Break even @$35 WTI, 6 years of 5% Crown royalties (13% Avg Lifetime)

Risk/Reward

◼ Offsetting high quality oil production has confirmed productivity and further de-risked the opportunity

◼ Capturing exponential learnings through peer data and science with third parties’ capital

◼ Minimal capital exposure with large upside and project scalability

◼ 10 year plan to grow valuation to $2.5+ Billion and generate exceptional free cash flow

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B-32 Exploration represents a unique ground floor opportunity to capture an extremely large position in an emerging world

class resource play that is being de-risked through offset production and continuously improving analog data.

ManageMent Bio’s

Larry Evans, P.Eng. - Executive Chairman

As Executive Chairman, Larry brings over 40 years of relevant energy company experience to B-32 Exploration. His breath of experience includes business strategy, corporate

finance, merger and acquisitions and all engineering disciplines. Larry is a founding and Managing Partner of 32 Degrees Capital which has been focused on the Duvernay since

2016. Prior to founding 32 Degrees Capital, he was the founder and Chairman of Glacier Energy Ltd.; the founder, Chief Executive Officer and President of Ice Energy Ltd; the

founder, Chief Executive Officer and President of Avalanche Energy Ltd.; and the Chief Executive Officer and President of Colony Energy Ltd. All of the companies Larry founded

exhibited significant growth, generated superior returns for investors and were focused on resource play development. He currently serves on the Board of Directors of Artis

Exploration Ltd. a Duvernay focused company and Corval Energy Ltd. Larry holds a Bachelor of Science Degree in Engineering from the University of Manitoba and is a member

of the Association of Professional Engineers and Geoscientists of Alberta.

Mitch Putnam, P.Geol. - Executive Director

As Executive Director, Mitch Putnam brings over 35 years of relevant energy company experience to B-32 Exploration. He is one of the Founding Partners of 32 Degrees

Capital. Prior to founding the Firm, he was the founder and Director of Glacier Energy Ltd.; the founder, Director and Vice President Exploration of Ice Energy Ltd.; the founder

and Vice President Exploration of Avalanche Energy Ltd.; and Vice President Exploration of Colony Energy Ltd. All of the companies Mitch founded exhibited significant growth,

generated superior returns for investors and were focused on resource play development. He currently serves on the Board of Directors of Canamax Energy Ltd., Summerland

Energy Inc., Karve Energy Inc., Rising Star Resources Ltd. and Sitka Exploration Ltd. Mitch holds a Bachelor of Science Degree in Geology from the University of Alberta and is

a member of the Association of Professional Engineers, Geologists, and Geophysicists of Alberta.

Brad Culver, P.Geoph. - President

Brad Culver is a professional geophysicist with 30 years of experience in exploration and development. Brad started his career in the geophysical services business and founded

his first company in 1995. In 2000, he transitioned into an interpretation role with Alberta Energy Company, and then Encana for a decade. Prior to founding B-32 Exploration in

2018, Brad worked as a senior Geophysicist with Birchcliff Energy, and more recently as a Director of New Play Development with Teine Energy, where he was instrumental in

acquiring its initial position in the Duvernay West Shale play. Brad holds a Bachelor of Sciences (Hons) in geological sciences from Queen’s University and is a member of the

Association of Professional Engineers, Geologists, and Geophysicists of Alberta.

Melissa Fabreau, P.Eng., ICD.D – Vice President Engineering

Melissa Fabreau joined 32 Degrees Capital in 2014. She is primarily responsible for technical and engineering due diligence, monitoring of E&P portfolio companies and deal

sourcing, with a significant focus since 2016 on the Duvernay. Prior to joining the Firm she was a Senior Development and Reservoir Engineer at Enerplus Corporation focused

on developing resource plays in Western Canada. She has significant experience running project economics, reserve evaluations, reservoir characterization and developing long

term strategic plans. Melissa holds a Bachelor of Science in Mechanical Engineering with a minor in Petroleum Engineering from the University of Calgary (2003) and is a

member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta. She is also a member of the Institute of Corporate Directors (ICD.D).

Trent Baker, CPA, CA, ICD.D – Chief Financial Officer

Trent Baker has been with 32 Degrees Capital since 2007, beginning as an analyst and assuming increasing levels of responsibility until becoming a managing partner. He has

been responsible for deal sourcing, financial analysis, investment due diligence, accounting and back office support for investor relations, with a significant focus since 2016 on

the Duvernay. Prior to joining the Firm he worked in the audit and assurance department for KPMG. He currently serves on the Board of Directors for Vertex Resource Group

Ltd., CORE Linepipe, Inc., Vertex Downhole Ltd., and Sphere Energy Corp. Trent holds a Bachelor of Commerce degree from Queen’s University, is a member of the Chartered

Professional Accountants of Alberta and is a CFA charter holder. He is also a member of the Institute of Corporate Directors (ICD.D).

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Disclaimer

This presentation is confidential and for discussion purposes only. The contents are not to be reproduced, summarized or distributed.

These materials have been prepared for information purposes only in relation to B32 exploration and are not, under any circumstances, to

be construed as an offering of any securities for sale. No prospectus has been or will be filed in connection with an offering in Canada and

the shares have not been registered under the United States Securities Act of 1993, the securities laws of any state thereof or the

securities of any other jurisdiction, nor is such registration contemplated, and this presentation is not and under no circumstances should

be construed as a prospectus or other offering document. No securities commission or similar regulatory authority has passed on the

merits of the shares or reviewed these information materials and any representation to the contrary is an offence.

The information presented in this document is considered to be accurate, however there is no expressed or implied representation or

warranty as to the accuracy or completeness of any such information and does not constitute investment advice.

This presentation may contain forward–looking statements, including forward–looking statements regarding management’s assessment of

future plans and operations, business and investment strategies, expectations of returns, cash flow and earnings. Forward-looking

statements are based on current assumption, beliefs, internal expectations, estimates and projections of management. Such forward-

looking statements are based on information currently available to management. No person should rely on these forward-looking

statements because they involve known and unknown risks, uncertainties and other factors which are, in many cases, beyond the control

of management and may cause actual results, performance or achievements to differ materially from anticipated future results,

performance or achievements expressed or implied by the forward-looking statements.

The market and industry data contained in this presentation are based upon information from independent sources and other publications.

While management believes this data to be reliable, market and industry data is subject to variations and cannot be verified with complete

certainty. Management has not independently verified any of the data from third party sources referred to in this presentation or

ascertained the underlying assumptions relied upon by such sources.

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