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A SUSTAINABLE FREE CASH FLOW BUSINESS

INVESTOR UPDATE
FEBRUARY 2017
TSX: PNE
CAUTIONARY STATEMENTS
Certain statements contained in this presentation include statements which contain words such as anticipate, could, should, expect, seek, may, intend, likely, will, believe and
similar expressions, statements relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about development, results and events which
will or may occur in the future, constitute forward-looking information within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis
made by us derived from our experience and perceptions. In particular, this presentation contains statements regarding: the potential growth opportunities and benefits on Pine Cliff Energy
Ltd.s (Pine Cliff of the Company) assets; information regarding Pine Cliff on a pro forma basis; expected decline rates; the strategy of the Company and the ability of the Company to
execute on this strategy; expected cash/funds flow provided by operations; future returns on share price; future capital expenditures, including the amount, timing and nature thereof; oil and
natural gas prices and demand; cash flow / funds flow leverage to natural gas prices; corporate netbacks and break even price and its ability to provide protection from volatile commodity
prices; expected operating expenses, royalty rates, general and administrative expenses and interest expenses; expected free cash flow (defined herein); expected maintenance capital
(defined herein); expansion and other development trends of the oil and gas industry; reserve and resource volumes; estimated ultimate recoveries (EUR); estimated capital per well;
business strategy and outlook; expansion and growth of the business and operations; maintenance of existing customer, supplier and partner relationships; future acquisition opportunities
including the amount, timing, success and nature thereof; the ability of the Company to raise capital; the ability of the Company to deliver cash flow back to shareholders; the ability of the
Company to grow production, repay debt, repurchase shares; supply channels; accounting policies; credit risks; availability and number of drilling or recompletion locations, including the
timing and success thereof; expected internal rates of return (defined herein); expected IP365 (defined herein); the potential growth opportunities on the assets; change in Pine Cliffs LLR;
timing of asset retirement obligations; the operational, economic and financial impacts of the disposition of oil assets that closed on December 7, 2016 (the Oil Disposition), including the
impact on the break even point; the 2017 production guidance; the 2017 capital guidance, including the allocation of the capital budget; and other such matters. As such, many factors could
cause the performance or achievement of Pine Cliff to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking
statements. Because of the risks, uncertainties and assumptions contained herein, readers should not place undue reliance on these forward-looking statements. Any data, graphs or
information in this presentation compiled by a third party has been credited to that third party and Pine Cliff does not take responsibility for the accuracy of such information.
In addition, statements relating to "reserves" are by their nature forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the
reserves described can be profitably produced in the future. The recovery and reserves estimates provided herein are estimates only and there is no guarantee that the estimated reserves
will be recovered. Pine Cliff cautions that its future oil, natural gas and natural gas liquids production, revenues, cash flows, liquidity, plans for future operations, expenses, outlook for oil and
natural gas prices, timing and amount of future capital expenditures, and other forward-looking information is subject to all of the risks and uncertainties normally incident to the exploration for
and development and production and sale of oil and gas.
All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected
future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties, and assumptions are difficult to predict and may affect operations, and
may include, without limitation: foreign exchange fluctuations; equipment and labour shortages and inflationary costs; general economic conditions; industry conditions; changes in applicable
environmental, taxation and other laws and regulations as well as how such laws and regulations are interpreted and enforced; the ability of oil and natural gas companies to raise capital; the
effect of weather conditions on operations and facilities; the existence of operating risks; volatility of oil and natural gas prices; oil and gas product supply and demand; risks inherent in the
ability to generate sufficient cash flow from operations to meet current and future obligations; increased competition; stock market volatility; opportunities available to or pursued by us; and
other factors, many of which are beyond our control. The foregoing factors are not exhaustive.
Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that
any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits will be derived therefrom. Except as required by law, Pine Cliff
disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. The annual audit of our
consolidated financial statements is not yet complete and accordingly all financial and production amounts represent management's estimates which are unaudited and subject to revision.
The forward-looking information contained herein is expressly qualified by this cautionary statement.
This presentation contains the term barrels of oil equivalent (boe) which has been calculated on the basis of six thousand cubic feet equivalent (mcfe) of gas to one barrel of oil. This
conversion ratio is based on energy equivalence primarily at the burner tip and does not represent a value equivalency at the wellhead. The term boe may be misleading, particularly if used
in isolation.
This presentation contains a number of oil and gas metrics, including free cash flow, maintenance capital, initial production rates for the first 365 days (IP365) and internal rate of return
(IRR) which do not have standardized meanings or standard methods of calculation and many not be comparable to similar measures used by other companies. Such metrics have been
included herein to provide readers with additional measures to evaluate the Company. Expected free cash flow is estimated funds flow from operations less maintenance capital and facility
and plant turnaround capital. Maintenance capital is the estimated capital required to hold production flat. IRR is calculated by taking expected capital costs to drill, complete, equip and tie-in
wells against future net revenue and management estimates of operating costs, royalties, production rates and reserves. IP 365 is the expected initial production rates for the first 365 days
of production of a well. -1-
CORPORATE PROFILE
A UNIQUE SUSTAINABLE FREE CASH FLOW MODEL
Listing TSX: PNE Bank Line(4) $60 MM

Market Capitalization(1) $246 MM Bank Debt(5) $30.9 MM

Average Daily Volume(2) 0.9 MM Other Debt(6) $41 MM

52-Week Trading Range $0.61 to $1.22 2017 Production Guidance 21,250 21,750 boe/d
- % natural gas 94%
Shares Issued(3) 307.0 MM 2017 Capital Guidance $18.5 MM

Directors and Officers Ownership Corporate Base Production Decline 10%


- Basic 10.7%
- Fully Diluted 12.7% Reserves (PDP/2P)(7) 53.8/70.9 mmboe

Tax Pools(8) ~$440 MM


(1) Reflects February 17, 2017 closing price of $0.80 per share
(2) Average daily trading volumes for February 17, 2016 to February 17,
2017
(3) As of September 30, 2016. In addition, as of February 17, 2017 there
were 21.6 MM stock options issued (7.0% of outstanding shares) and
4.5 MM common share purchase warrants issued
(4) $50 MM revolving syndicated credit facility and $10 MM operating

facility as of December 7, 2016, interest at prime plus 1.0% to 3.5% or


the bankers acceptance rate plus 2.0% to 4.5% based on the trailing 12
months debt to EBITDA
(5) Unaudited as at December 31, 2016 and excludes working capital

accounts and investments


(6) As of September 30, 2016: $11 MM of insider subordinated debt that

matures on July 29, 2018 and bears interest at 0.25% less than the
monthly average interest rate paid to the banking syndicate and $30
MM in promissory notes to Alberta Investment Management Company
(AIMCo) that mature on September 30, 2020 and bear interest at
6.75% annually
(7) Based on an independent reserve report prepared by McDaniel &

Associates Consultants Limited dated February 13, 2017


(8) As of September 30, 2016 -2-
FOCUS ON PER SHARE VALUE CREATION

Significant Insider Ownership


Interests aligned with shareholders to build per share
value

Predictable Business Model FINANCIAL


Low decline, low cost and low capital efficiencies FLEXIBILITY
form the foundation for a sustainable free cash
flow model

Free Cash Flow


Business is built to generate sustainable free INCREASING
cash flow CAPITAL PRUDENT
DISCIPLINE VALUE PER GROWTH
SHARE
Access to Capital
Six financings completed since Nov. 2012, the
most recent being the AIMCo and insider debt in
Q3 2016
EXPERIENCED
MANAGEMENT
Exceptional Track Record TEAM
Consistent delivery of superior long-term results supported by
decades of transaction execution experience

-3-
A UNIQUE, COUNTER-CYCLICAL STRATEGY
BUILDING A FREE CASH FLOW MODEL IN A VOLATILE COMMODITY PRICE ENVIRONMENT
PNE has been uniquely focused on a low-risk, natural gas asset consolidation strategy
in Western Canada with nine accretive acquisitions since 2012 (see Appendix for
acquisition metrics)

Weaker commodity prices have reduced industry cash flow and stimulated non-core
asset sales to fund debt repayment, capital expenditures and dividends

Capital markets are rewarding companies for strong balance sheets and focused asset
portfolios; sales of non-core properties expected to continue

Being a low cost operator with a strong balance sheet provides protection from volatile
commodity prices and flexibility for acquisitions

Ultimate goal is to be able to deliver sustainable cash flow back to shareholders

Pine Cliff is well-positioned to provide shareholders with increased


exposure to a rising natural gas price environment and increased
long-term shareholder value

-4-
WHAT WE HAVE BUILT
THREE MAJOR OPERATED CORE AREAS
2017 production guidance of 21,250
21,750 boe/d
Weighted 94% towards natural gas

Low Decline Rate


Corporate decline rate on base production of
10%

High Working Interest and Operatorship


Production is 85% operated
80% average working interest on land

Extensive Land Position


2.3 MM gross acres (1.8 MM net acres)

Significant Undrilled or Recompletion


Locations
Internally estimated at over 900 gross locations,
economic at less than $3.50/mcf AECO

Significant Operated Infrastructure


Includes export pipelines to the U.S. Pacific
Northwest and to Saskatchewan
See Appendix for further details on Core Areas and slide 12 for details on undrilled and recompletion locations
-5-
PREDICTABLE ASSET BASE
LOW COST + LOW DECLINE = SUSTAINABLE + PREDICTABLE ASSETS
2015G&Aperboe 2015Opex(inc.transport)perboe
14.00 30.00
12.00 25.00

Opex($/boe)
10.00 20.00
G&A($/boe)

15.00
8.00
10.00
6.00
5.00
4.00 0.00
2.00
0.00 Source: Canaccord Genuity Corp., May 2016

Source: Canaccord Genuity Corp., May 2016


50%
Decline
45%
Average:
40%
28%
Corporate Decline Rate [%]

35%

With one of the lowest 30%

production declines in the 25%

industry, low operating 20%

15%
expenses and low overhead,
10%
PNE is well positioned to 5%
generate free cash flow 0%

CNQ
TOU

PMT
POU

VET

PWT

PGF
RRX

DEE
RMP
PEY

BXE
NVA
BTE

KEL
SPE

AAV
ECA

CPG
BNE

ARX
TOG
PPY
SGY

HSE
PXX

WCP

EGL
PNE
CVE
VII

CR

ATH

TET

BIR
ERF

NBZ
Source: Scotiabank Statsbook June 2016
Note: ATH, CNQ, CVE, and HSE are Canadian production only and exclude oil
sands production. -6-
LOW CORPORATE BREAK EVEN KEY TO CASH FLOW

BUILT FOR SUSTAINABILITY IN A VOLATILE COMMODITY PRICE ENVIRONMENT

At $1.77/mcf, PNE has one of the lowest all-in corporate break even gas prices in
the industry(1)
82% of PNEs production has positive cash flow at the field level at $1.50/mcf and
95% of PNEs production has positive cash flow at the field level at $2.00/mcf

(1)
Break Even Analysis
$/mcfe
Gas Price ($/m cf) $ 1.50 $ 1.77 $ 2.00 $ 2.50 $ 3.00 $ 3.50
Royalties (2) 7% (0.10) (0.13) (0.14) (0.18) (0.22) (0.25)
Operating Costs (3) $9.50/boe (1.58) (1.58) (1.58) (1.58) (1.58) (1.58)
Field Netback (0.18) 0.06 0.28 0.74 1.20 1.67
(4)
Oil & NGL Contribution (WTI US$50/bbl) 0.19 0.19 0.19 0.19 0.19 0.19
G&A, Interest and Dividends (5) $1.52/boe (0.25) (0.25) (0.25) (0.25) (0.25) (0.25)
Corporate Netback (0.24) 0.00 0.22 0.68 1.14 1.61
Corporate Netback ($/boe) (1.44) 0.00 1.32 4.08 6.84 9.66

(1) Before capital expenditures


(2) Three months ended September 30, 2016 reported
(3) 2016 guidance as disclosed in the third quarter 2016 Managements Discussion and Analysis less the estimated impact of the Oil Disposition
(4) Using US$50/bbl WTI, 1.339 US$/C$, adjusted for PNE estimated differentials for oil and NGLs and oil and NGL weighting adjusted for Oil Disposition every US$5/bbl movement in WTI
changes the break even gas price by ~$0.03/mcf
(5) Nine months ended September 30, 2016 reported adjusted for one time fees with respect to the borrowing base redetermination and the AIMCo debt and adjusted for the estimated impact of
the interest savings and dividend income related to the Oil Disposition -7-
HIGHLY LEVERAGED TO NAT GAS PRICING
ONE OF THE STRONGEST EXPOSURES TO NATURAL GAS PRICES IN THE INDUSTRY
Every $0.10 per mcf increase in AECO adds approximately $4.1 million to PNE funds
flow annually (or approximately $0.013 per basic share)(1)

2017E CFPS Estimate Sensitivities to WTI and AECO Price Changes


2x AECO
Sensitivity
55%

50%

45%
2017ECFPSSensitivitytoC$0.50/mcfchangetoAECO

PNE
40%

35%

30% 2x WTI
POU Sensitivity

25%
TET

20% TOU BIR

BNP PPY
KEL
15% CR
AAV BXE NVA

10%
ERF
ARX VII DEE BNE PWT
5% PEY PGF BTE
PSK EGL
FRU CJ SPE TOG
CPG PXX
VET SGY
NBZ RRX WCP
0%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55%
2017ECFPSSensitivitytoUS$10/bblchangetoWTI

Source: Scotiabank, September 2016


(1) Using 21,500 boe/d (mid point of 2017 guidance) and royalty rates of 8% -8-
FINANCIAL FLEXIBILITY
2016 FOCUS ON STRENGTHENING BALANCE SHEET
In less than six months and without equity dilution, PNE paid down $125 MM in bank
debt, reducing it to $30.9 MM at December 31, 2016 from $155.9 MM a year earlier

($MM)

Bank Debt, December 31, 2015 $155.9


$125 Million

Royalty Asset Disposition ($24.7)


Oil Asset Dispositions ($32.0)
AIMCo Debt Financing (September 30, 2020) ($30.0)
Insider Debt Financing (July 29, 2018) ($11.0)
Sale of Investments ($5.6)
Excess Funds From Operations (1) ($21.7)
Bank Debt, December 31, 2016 (2) $30.9

(1) Estimated, excess funds from operations includes funds flow from operations, capital expenditures and changes in non-cash working capital accounts
(2) Unaudited and does not include non-cash working capital accounts and investments. In addition to the bank debt, at December 31, 2016, PNE had $11 MM of insider subordinated debt that
matures on July 29, 2018 and a $30 MM promissory note to AIMCo that matures on September 30, 2020

-9-
CAPITAL ALLOCATION IS KEY IN 2017
PNE 2017 FOCUS ON OPTIMAL ALLOCATION OF FREE CASH FLOW

Debt
Repayment

Acquisitions
Free Cash
Flow Internal
Production
Growth

Dividend/Share
Repurchases

-10-
FREE CASH FLOW SENSITIVITY(1)
LOW MAINTENANCE CAPITAL YIELDS HIGH FREE CASH FLOW
With annual maintenance capital averaging $24.5 MM over the next five years(3),
PNE expects to maintain its production base
Average annual estimated capital efficiency of approximately $11,000/boe/d
Corporate free cash flow (FCF)(1) is estimated to occur above $2.45/mcf AECO

Average Annual Funds Flow Allocation (1)(2) Cumulative 5 year FCF (1)(2)
100 0.25 350 1.20
90 1.05
300
80 0.20 1.00

70 250

$ per basic share


0.80

$ per basic share


0.71
60 65 0.15
200
$ MM

$MM
50 44 0.60
323
40 23 0.10 150
0.37 0.40
30 219
3 3 3 3 100
20 0.05
115 0.20
10 24.5 24.5 24.5 24.5 50

0 -
- - -
2.45 3.00 3.50 4.00 2.45 3.00 3.50 4.00
AECO ($/mcf) AECO ($/mcf)
Maintenance Capital Facility and Plant Capital FCF FCF per share
Cumulative 5 year FCF 5 year FCF per share

(1) FCF is funds flow from operations less the capital require to keep PNEs production flat (maintenance capital) and facility and plant turnaround capital
(2) Funds flow from operations is calculated before income taxes and assumes royalty rates of 8% for all pricing scenarios, operating expenses of $9.55/boe, G&A expenses of $1.17/boe and interest of
5%. Funds flow analysis assumes $53/bbl WTI; exchange rate of 1.3 US$/C$ and adjusted for PNE estimated oil and NGL differentials
(3) Maintenance capital is the average estimated capital to hold production flat at approximately 21,700 boe/d over a five year period and will vary on an annual basis
-11-
FUTURE DRILLING OPPORTUNITIES
EXTENSIVE INVENTORY OF LOCATIONS TO SUPPLY LONG TERM MODEL
Approximately 62% of PNEs
GrossUndrilledLocations(1) undrilled locations are economic at
1,600 lower than $3.00/Mcf AECO(1)
1,400
PNE currently has over 900 gross
# Gross Locations

1,200
1,000 drilling and recompletion locations,
800 economic at less than $3.50/mcf(1)
1,334
600
400 823 922 Five years of maintaining
200
269
production uses only 34% of
0 PNEs estimated drilling and
<$2.25/mcf AECO <$3.00/mcf AECO <$3.50/mcf AECO <$4.50/mcf AECO
recompletion locations
Summary of Undrilled Locations(1)
Total Locations (1) Booked Locations (1) Total Capital per
Gross Net Gross Net well ($000's) (2) EUR (mboe) (1)
Carrot Creek Ellerslie (100 bbl/mmcf) 15 8 1 0.2 3,500 236
Pine Creek/McLeod Ellerslie (10 bbl/mmcf) 35 8 5 1.4 3,500 625
Pine Creek Bluesky 6 3 6 2.0 3,000 485
Recompletions (Viking, Mannville, Belly River, CBM) 213 165 2 1.0 85-150 25-108
Viking Colorado 138 138 24 24.0 700 89
Three Hills Creek CBM - Crown 416 207 48 48.0 330 49
Three Hills Creek CBM - Freehold 99 46 0 0.0 330 49
Willrich 21 9 5 1.5 3,700 458
Carrot Creek Rock Creek 14 5 3 1.0 4,100 332
Ghost Pine - Crown 377 272 0 0.0 330 24
Total 1,334 860 94 79.1

(1) Undrilled locations consist of drilling and recompletion locations booked in the independent reserve report dated February 13, 2017 prepared by McDaniel & Associates Consultants Limited and
unbooked drilling and recompletion locations. Unbooked drilling and recompletion locations are internal estimates based on evaluation of geologic, reserves and spacing based on industry
practice. There is no guarantee that the PNE will drill all undrilled locations and there is no certainty that the drilling of these locations will result in additional reserves or production or achieve
expected rates of return. PNE drilling activity depend on availability of capital, regulatory approvals, commodity prices, drilling costs and other factors. Undrilled locations pricing cutoffs assume
a 10% internal rate of return (IRR) using an oil price of US$45.00/bbl and an exchange rate of 1.2886 and PNE estimated differentials for oil and NGLs. -12-
(2) Capital per well is based on internal estimates using current cost assumptions
2017 CAPITAL PROGRAM
CONSERVATIVE CAPITAL SPENDING

2017CapitalBudgetAllocation($MM)
2017 capital budget of $18.5 MM
Facilityand
other $1.7
$13.5 MM directed to drilling at Edson
and Viking and recompletions
Major 13 gross (5.9 net) planned drills
Maintenance EdsonDrilling
$3.3 $6.8
9 gross (1.9 net) at Edson
4 gross (4.0 net) at Viking
Viking
Recompletions
$1.3
40 gross (39 net) planned recompletions
GhostPine
Recompletions VikingColorado
$2.6 Drilling $2.8 2017 production guidance of 21,250-
21,750 boe/d

-13-
NATURAL GAS OUTLOOK - SUPPLY
Monthly Dry Shale Gas Production U.S Weekly Cumulative Storage Withdrawals
bcf/d
50 bcf
2016/2017
45 Marcellus(PA,WV,OH&NY)
500 2015/2016
Haynesville(LA&TX)
40 5YearAverage
Natural gas EagleFord(TX)
35 Fayetteville(AR)
0 After a record
supply Barnett(TX) warm
growth 30 Woodford(OK) 500 2015/2016
declined in 25 Bakken(ND) winter, U.S.
2016 for the Antrim(MI,IN,&OH) 1000
20 Utica(OH,PA&WV)
storage is now
first time in less than the
RestofUS'shale' 1500
15 years 15
five year
10 2000 average
5
2500
0 1 4 7 10 13 16 19
Week
Source:GMP FirstEnergy,U.S.DOE/EIA(February 3,2017)
Source:EIANaturalGasWeeklyUpdate(January25,2017)

U.S. Natural Gas Supply Growth U.S. Natural Gas Rig Count

bcf/d

100
Forecast Operating
natural gas
Natural gas 90 drilling rigs in
supply 4.4
80 4.1 the U.S. still
4.6
growth 3.4 at historic
70
unlikely to lows, despite
60
materially Henry Hub
grow 50
84.5
natural gas
without an 40 75.8 80.4
65.7 66.3 70.9 74.1 72.4 72.4 price
increase in 30 recovery to
natural gas 20 over
prices 10 U.S.$3.00 per
0 MMBtu
2012 2013 2014 2015 2016 2017 2018 2019 2020
Source:GMPFirstEnergy,U.S.DOE/EIA(January2017) January25,2017
-14-
NATURAL GAS OUTLOOK - DEMAND
U.S. Annual LNG Export Capacity (Year End) U.S. Winter Cumulative HDDs
bcf/d
CorpusChristiT1&2
SabinePassT5&6 HDDs
12
CameronT1&2 Forecast 4,500 2015/2016
LNG export FreeportT1&2 4,000
10 2016/2017
capacity CovePointT1
3,500 Normal
forecast to 8 SabinePassT3&4
SabinePassT1&2 3,000 The last two
be over 10
6 ExistingReExport 2,500 winters have
bcf/d by the
been
end of 2,000
4 substantially
2020 1,500 below normal
2 1,000
500
0
2012 2014 2016 2018 2020 0

Source:GMPFirstEnergy,Reuters(January2017)
SourceGMPFirstEnergy,U.S.NOAA(January2017)

U.S. Net Exports of Natural Gas to Mexico U.S. Gas Demand Growth + Exports
bcf/d
bcf/d MexicoExports
6.0 Forecast 100 LNGExports Forecast Demand for
5.0 95 DomesticDemand natural gas
Mexico continues to
4.0 90 accelerate
exports are
now 3.0 85 in North
exceeding America,
80
2.0 with LNG
four bcf/d
75 exports
1.0
70 leading the
0.0 way
2009 2011 2013 2015 2017 2019 65
2012 2014 2016 2018 2020
Source:GMPFirstEnergy,U.S.DOE/EIA(January2017)
Source:GMPFirstEnergy,USDOE/EIA(January2017)
-15-
DEMONSTRATED PER SHARE VALUE GROWTH
Production (boe/d) Reserves (Mboe)(1)
25,000 80 80,000 300,000
BOE/Dpermillionshares 22,495
70 70,000 74% 250,000
66%

Daily Production per million shares


20,000 CAGR P+P

BOEpermillionshares
60,000
60 Reserves per

Reserves(MBOE)
Daily Production (BOE/D)

Production per basic 200,000


50,000
basic share(2)
15,000 share CAGR(1) from 50
40,000 150,000
2013 -2016 12,854
40
30,000
100,000
10,000
7,888 30 20,000
50,000
20 10,000
4,775
5,000

10 2012 2013 2014 2015 2016
775
PDP TotalProved P+P
2012 2013 2014 2015 2016
(unaudited) PDP/mmshares Proved/mmshares P+P/mmshares

Funds Flow From Operations ($000s) NPV 10% ($000s)(1)


AECO($/mcf)
$11,615

$14,000 $6.00
$10,089

350,000
$12,000
PDP TotalProved TotalP+P
$9,180

$5.00
300,000
$8,104

71%
$10,000
$7,507
FundsFlowFromOperaitons

$6,972
$6,550

250,000
$6,182

$8,000 $4.00 CAGR P+P NPV


$5,564

$5,555

10%(2)
AECO($/mcf)

200,000
$3,721

$6,000
$3,014

$3.00
$2,401

150,000
$4,000
$1,398

$3,655

100,000
$2,000 $2.00

50,000
$0
$1.00
($2,000) 0
2012 2013 2014 2015 2016
($4,000) $0.00
(1) Definitions: PDP proved developed producing, P+P proved and probable, NPV10% - net present value of future net revenue discounted at 10%, CAGR compounded annual growth rate
(2) From December 31, 2012 to December 31, 2016 -16-
COMPELLING VALUATION
STRONG EMPHASIS ON GROWTH OF SUSTAINABLE NATURAL GAS ASSETS

PNE generates one of the highest PNEs valuation is attractive


free cash flow yields(1) in the from a PDP reserves
industry perspective
3.0
PGF(5.8x) 140

2.5
QEC(3.0x)
120
EV/2015PDPReserves
CR 100

EV/PDP ($/boe)
2.0 PEYCPG
PPY
VET 80
2017D/CF

1.5 60
JOY
WCP
NVA 40
1.0 MQX BIR
TOG
TVE
SGY 20
GXE
RRX
0.5 BNE CJ 0
ERF

VET

PGF

PWT
VII

KEL

BIR
RRX

WCP

ARX

AAV
BNE
NVA
PPY
PEY

SGY

BXE
JOY
TOG

BNP

RMP
PNE
CPG

CJ
TET
TOU

ERF

NBZ
CR
PXX

0.0
FRU PNE
30% 20% 10% 0% 10% 20% 30%
2017freecashflowyield Source: Canaccord Genuity Corp., February 2017
LXE PPY GXE WCP RRX BIR CR PEY NVA TVE
JOY VET TVL CJ SGY TOG PNE ERF QEC ATH

Source: Canaccord Genuity Corp., January 2017


(1) 2017 FCF is based on Canaccord Genuity Corp. estimates and includes Canaccord
estimated capital expenditures for 2017. FCF yield is FCF/market capitalization.

-17-
WHY INVEST IN PINE CLIFF
Long life predictable natural gas assets with industry leading operating costs and decline
rate

Strong balance sheet to manage volatility in natural gas prices

Executing on a vision to assemble an asset base to deliver sustainable cash flow back
to its shareholders

One of the strongest per share sensitivities to natural gas price improvements

Significant management team and board stock ownership creates strong alignment with
shareholder interests

-18-
APPENDIX

-19-
BUILDING A FAMILIAR MODEL
A CLEAR VISION FOR LONG-TERM GROWTH WITH PROVEN EXPERIENCE
Pine Cliff management has a long-term view of value creation, with a counter-cyclical
focus to acquire natural gas assets that are non-core to their owners at good valuations
Similar to Bonterras origin with oil assets in 1998
Despite natural gas pricing fluctuations in the past four years, our approach to acquiring assets has remained
disciplined and consistent

Pine Cliffs Chairman and largest shareholder, George Fink, served the same roles with
both Bonterra Energy and Comaplex Minerals
Four out of six of Pine Cliffs board of directors also served on the boards and management teams of Bonterra
and Comaplex
Bonterra (TSX: BNE) has gone from $0.20 per share in 1998 to $25.08 per share on February 17, 2017, while
paying over $36.50 of dividends per share. A $20,000 investment in 1998 would equate to almost $6.2 million
today (including dividends and share appreciation)
Comaplex went from $0.60 per share in 1994 to $10.32 per share in 2010 when it was sold

$10.32
Pine Cliff Return(1) Combined Bonterra Return Share Price
Comaplex Return
Share Price
Share Price
Cum Dividend
$61.96

$0.80 $36.88

$25.08
$0.17 $0.60
2011 2012 2013 2014 2015 2016
1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
1994 1996 1998 2000 2002 2004 2006 2008 2010
(1) Pine Cliff return is presented since the change in strategic focus of the company and management appointment on December 21, 2011
Note: The Pine Cliff and Bonterra share prices are to closing on February 17, 2017.
-20-
AN ACTIVE FIVE YEARS OF ACQUISITIONS
TRANSACTION RECORD SINCE JANUARY 2012
$488,000,000
$2.70
MarketCap
11
$448,000,000 SharePrice
10
$408,000,000
9 12
$2.20
$368,000,000

$328,000,000 13 14

$288,000,000 $1.70

8
$248,000,000 7
4
6
$208,000,000 5
$1.20
3
$168,000,000
1
2
$128,000,000

$0.70
$88,000,000

$48,000,000

$8,000,000 $0.20

1. Dec 21/11 - Phil Hodge appointed President and CEO, George Fink appointed Chairman and 8. Oct 2/13 announced $20.0MM common share offering at $1.10/sh
announced $2.9MM rights offering and private placement
9. July 17/14 announced $100MM Southern Alberta/Saskatchewan asset acquisition
2. Feb 10/12 announced $23.5MM Carrot Creek/Edson acquisition
10. July 29/14 announced $33.3MM Carrot Creek/Edson asset acquisition
3. Aug 23/12- announced acquisition of Geomark Exploration Ltd.
11. Sept 2/14 announced $60.1MM equity offering at $2.05/sh
4. Nov 20/12 announced purchase of debt and security of Scope Energy and $5.4MM private
placement at $0.70/share 12. April 20/15 announced $14.1MM acquisition of additional assets in Edson

5. May 27/13 announced $34MM acquisition of additional 52% working interest in the Monogram Unit 13. Nov 9/15 announced $185MM acquisition of new core area in Central AB and $72MM
common share offering at $1.08/sh
6. June 4/13 announced $25MM common share offering at $0.88/share
14. Aug 10/16 issued $30MM promissory note and 4.5MM share purchase warrants at
7. July 17/13 announced $13.3MM acquisition of additional Southern Alberta assets and operatorship $1.38/sh to AIMCo and $11MM in promissory notes to insiders (July 29, 2016)
-21-
HISTORY OF ACCRETIVE ACQUISITIONS
ACQUISITION METRICS REFLECT DISCIPLINED VALUE FOCUSED STRATEGY
(1)
Transaction Metrics

Announcement Transaction Value Production P+P Reserves Flowing Barrel P+P Reserves P+P Reserves

Transaction Date ($million) (boe/d) (mmboe) ($/boe/d) ($/boe) ($/mcfe)

Central AB Assets Acquisition 9-Nov-15 $185.0 11,730 78.6 $15,772 $2.35 $0.39
Carrot Creek/Edson and Southern
20-Apr-15 $14.1 1,030 4.8 $13,699 $2.93 $0.49
AB Asset Acquisition
Carrot Creek/Edson Asset
29-Jul-14 $33.3 970 4.0 $34,278 $8.31 $1.39
Acquisition
Southern AB & SK Asset
17-Jul-14 $100.0 5,300 15.5 $18,868 $6.45 $1.08
Acquisition
Southern AB & SK Asset
17-Jul-13 $13.3 850 2.4 $15,588 $5.62 $0.94
Acquisition

Monogram Unit WI Acquisition 27-May-13 $33.7 1,600 7.7 $21,063 $4.39 $0.73

Skope Energy Inc. Acquisition 20-Nov-12 $28.0 3,500 9.4 $8,000 $2.98 $0.50

Carrot Creek/Edson Asset


10-Feb-12 $23.5 950 3.1 $24,737 $7.58 $1.26
Acquisition
$16,614 $3.43 $0.57

100 boe/d
to
22,000 boe/d
in
5 years
(1) Transaction metrics are calculated as of the acquisition announcement date -22-
RESERVE REPORT (1)

Summary of Remaining Oil and Gas Reserves as of December 31, 2016

Natural Gas (Non-


associated, associated Natural Gas
Light and Medium Oil and coal bed methane) Liquids Total Oil Equivalent NPV 10%
Gross Gross Gross Gross
Reserve Category: (Mbbl) (MMcf) (Mbbl) (Mboe) ($MM)
Proved
Developed Producing 509.6 297,548.4 2,539.8 52,640.8 269,462.4
Developed Non-Producing 0.9 260.5 13.8 58.1 461.8
Undeveloped 26.2 4,731.8 287.4 1,102.2 3,648.1
Total Proved 536.6 302,540.7 2,841.0 53,801.1 273,572.4
Probable 233.3 96,094.8 885.2 17,134.3 73,359.3
Total Proved plus Probable 770.0 398,635.5 3,726.2 70,935.4 346,931.7

ByClassification ByCategory
5% 1%

24%
PDP
NaturalGas
2% PDN/PUD
NGLs
Probable
74% Oil

94%

(1) Based on an independent reserve report prepared by McDaniel & Associates Consultants Limited. Please read in conjunction with Pine Cliffs press release dated
February 13, 2017, which can be found on www.sedar.com and is subject to the same cautionary statements as set out therein
-23-
CENTRAL ASSETS AREA OVERVIEW
PINE CLIFFS NEWEST AND LARGEST CORE
AREA ACQUIRED DECEMBER 2015
Gas weighted, low decline assets in the Ghost Pine
and Viking areas of Central Alberta
Q3 2016 production of 10,733 boe/d (88% natural gas),
48% of Pine Cliffs production
Ownership in key strategic infrastructure, including four
gas plants with third party revenue
Significant drilling and recompletion inventory in the
Horseshoe Canyon Coal Bed Methane infill drilling plus
potential for conventional

Ghost Pine Viking


Natural gas weighting 92% 98%
Net working interest acres 244,699 583,722
% Operated 65% 85%

-24-
SOUTHERN ASSETS AREA OVERVIEW
LOW DECLINE, LOW COST
PRODUCTION
Q3 2016 production of 9,350 boe/d
(mostly natural gas), 42% of Pine Cliffs
production
100% ownership of NEB regulated
pipelines delivering gas to Montana and
Saskatchewan
Gas sales into Saskatchewan at a
premium to AECO pricing.
Multi-zone area with production from
Cretaceous Milk River, Medicine Hat and
Second White Specks
Extensive land position of over 1,000,000
gross acres (800,000 net acres) with
recompletion and infill drilling upside

High

82% Working Interest -25-


EDSON AREA OVERVIEW
PINE CLIFFS FIRST CORE AREA,
ACQUIRED IN Q1 2012

Q3 2016 production of 2,220 boe/d (74%


natural gas), 10% of Pine Cliffs
production
Drilled three gross (one net well) in Q1
2016, all of which are performing at or
above expectations
Over 30 net, high quality locations
targeting the Wilrich, Bluesky, Ellerslie
and Rock Creek
High ownership in key pipelines and
facilities
Source of third party fee revenue
42% working interest, production is 43%
operated

30 High Quality Net Locations


-26-
HIGH QUALITY EDSON AREA LOCATIONS

MULTI ZONE, LIQUIDS RICH LOCATIONS (1)

Attractive and predictable high liquids yield


production
91 gross (32.4 net) multi-zone undrilled
locations of which 20 gross (6.1 net) are
booked locations
Carrot Creek Ellerslie locations are
expected to generate IRRs of approximately
50% (IP365 approximately 300 boe/d and
approximately 105 bbl/mmcf C5+)
Pine Creek Ellerslie locations are expected
to generate IRRs of approximately 70%
(IP365 approximately 500 boe/d and
approximately 15 bbl/mmcf C5+)
Pine Creek Bluesky locations are expected
to generate IRRs of approximately 50% (IP
365 approximately 350 boe/d and
approximately 25 bbl/mmcf C5+)
Large operated infrastructure
Ability to align firm service transportation
with production
(1) Undrilled locations consist of locations booked in the independent reserve report dated February 13, 2017 prepared by McDaniel & Associates Consultants Limited and unbooked locations. Unbooked
locations are internal estimates based on evaluation of geologic, reserves and spacing based on industry practice. There is no guarantee that the PNE will drill all undrilled locations and there is no
certainty that the drilling of these locations will result in additional reserves or production or achieve expected internal rates of return. PNE drilling activity will depend on availability of capital, regulatory
approvals, commodity prices, drilling costs and other factors. IRRs are estimated using a $3.00/mcf gas price, an oil price of US$45.00/bbl, exchange rate of 1.2886 and PNE estimated differentials for -27-
oil and NGLs
EMERGING COLORADO SHALE PLAY
SIGNIFICANT UPSIDE POTENTIAL COLORADO SHALE(1)

Industry started drilling


this area using
horizontal drilling
technology in 2014
138 gross (138 net)
locations have been
identified as economic
(IRR>10%) locations at
$3.00 / mcf gas price
Approximately 70%
recovery factor at three
horizontal wells/section
= 600 MMcf/well (1)
24 booked locations (1)

(1) Undrilled locations consist of locations booked in the independent reserve report dated February 13, 2017 prepared by McDaniel & Associates Consultants Limited and unbooked locations. Unbooked
locations are internal estimates based on evaluation of geologic, reserves and spacing based on industry practice. There is no guarantee that the PNE will drill all undrilled locations and there is no
certainty that the drilling of these locations will result in additional reserves or production or achieve expected internal rates of return. PNE drilling activity will depend on availability of capital, regulatory
approvals, commodity prices, drilling costs and other factors. IRR calculations assume a $3.00/mcf gas price and an oil price of US$45.00/bbl and an exchange rate of 1.2886 and PNE estimated -28-
differentials for oil and NGLs.
SIGNIFICANT LOW RISK CBM DEVELOPMENT
SIGNIFICANT UPSIDE POTENTIAL IN GHOST PINE HORSESHOE CANYON COAL
BED METHANE(1)

Attractive and predictable


low-cost production with long
reserve life
CBM infill drilling
opportunities plus potential
for conventional drilling
Approximately 416 gross
(207 net) have been identified
as economic (IRR>10%)
locations at $3.00 / mcf gas
price (1)
48 booked locations(1)
Infrastructure is operated,
segregated from conventional
production, and has low
operating cost requirements

(1) Undrilled locations consist of locations booked in the independent reserve report dated February 13, 2017 prepared by McDaniel & Associates Consultants Limited and unbooked locations. Unbooked
locations are internal estimates based on evaluation of geologic, reserves and spacing based on industry practice. There is no guarantee that the PNE will drill all undrilled locations and there is no
certainty that the drilling of these locations will result in additional reserves or production or achieve expected internal rates of return. PNE drilling activity will depend on availability of capital, regulatory
approvals, commodity prices, drilling costs and other factors. IRR calculations assume a $3.00/mcf gas price and an oil price of US$45.00/bbl and an exchange rate of 1.2886 and PNE estimated -29-
differentials for oil and NGLs.
UNDERSTANDING ARO AND LLR
With increasing attention on future abandonment liabilities in the oil and gas industry,
it is important for investors to know how companies intend to manage their future
asset retirement obligations. Two key acronyms to understand are ARO and LLR.

ARO LLR
= =
Asset Retirement Obligations Licensee Liability Rating
=
Decommissioning Liabilities Ratio of deemed asset value to deemed
abandonment and reclamation liability value

Companys future abandonment and Asset value based on gross company operated
reclamation liability of working interest share production and industry average netback multiplied
of wells, facilities, and pipelines by three years
Liability value based on gross company operated
Costs based on audited company estimates
wells, facilities, and pipelines as assigned by the
provincial regulator (AER)
Timing, inflation, and discount rate are
important considerations when comparing LLR < 1.0 require a security deposit with the AER
AROs in different companies and <2.0 currently requires AER approval to
purchase operated assets
As at September 30, 2016, PNE recorded an
ARO of $307.0 million on its balance sheet Rating is a present day snapshot and is updated
($310.9 million liability inflated at 1.78% and monthly
discounted at 1.82%) As of January 1, 2017, PNE had an Alberta LLR
September 30, 2016 ARO discounted at rating of 1.46 and a Saskatchewan LLR rating of
10% is $34.3 million 1.31 -30-
ANALYST COVERAGE
The following analysts provide research report coverage on Pine Cliff:

COMPANY ANALYST
AltaCorp Capital Patrick ORourke
Canaccord Genuity Anthony Petrucci
CIBC World Markets Dave Popowich
Clarus Securities Inc. Robert Par
Cormark Securities Inc. Amir Arif
Desjardins Capital Markets Jamie Kubik
GMP/FirstEnergy Stacey McDonald
Haywood Securities Inc. Darrell Bishop
Industrial Alliance Securities Inc. Michael Charlton
National Bank Financial Inc. Dan Payne
Paradigm Capital Ken Lin
Peters & Co. Dale Lewko
Scotia Capital Inc. Cameron Bean
TD Securities Inc. Aaron Bilkoski

By posting this list, Pine Cliff does not imply endorsement of or agreement with the information, conclusions or recommendations provided in the reports. Pine Cliff does not
-31-
distribute electronic copies of analyst reports.
CORPORATE INFORMATION
BOARD OF DIRECTORS HEAD OFFICE STOCK EXCHANGE LISTING
Gary J. Drummond 850, 1015 4th Street SW TSX Exchange
George F. Fink Calgary, Alberta T2R 1J4 Trading Symbol: PNE
Philip B. Hodge Phone: (403) 269-2289
Randy M. Jarock Fax: (587) 393-1693 WEBSITE
Carl R. Jonsson www.pinecliffenergy.com
William S. Rice REGISTRAR AND TRANSFER AGENT
Computershare Trust Company of INVESTOR CONTACT
OFFICERS Canada info@pinecliffenergy.com
George F. Fink
Chairman of the Board AUDITORS
Philip B. Hodge Deloitte LLP
President and Chief Executive Officer
Cheryne A. Lowe
Chief Financial Officer and Corporate Secretary
BANKERS
Terry L. McNeill Toronto-Dominion Bank
Chief Operating Officer Alberta Treasury Branches
Heather A. Isidoro National Bank of Canada
Vice President, Business Development Canadian Western Bank
Business Development Bank of Canada

-32-