Rubellite Energy : 01/17/2023 – Corporate Presentation

Rubellite Energy Inc.

Corporate Overview

January 17, 2023

Background

Newly created, growth-focused, pure play Clearwater company (TSX:RBY)

Since 2018, Perpetual / Rubellite has executed 50+ separate transactions to assemble access to

345 net sections across the Clearwater fairway

• Rubellite acquired all of Perpetual's Clearwater Assets for total consideration of $65.5 MM (including $59.2 mm in cash)
• • Rubellite incorporated on July 12, 2021
  • Clearwater Assets conveyed to Rubellite on July 15th
  • Public announcement of the Plan of Arrangement on July 16th
  • Plan of Arrangement closed on September 3rd
  • Equity Financings closed / released from Escrow on Oct 5, 2021
• $83.5 MM in Equity Financings (October 5, 2021):
• • $30.0 MM Brokered Sub-Receipts Financing (closed into escrow July 13th)
  • $20.0 MM Non-Brokered Private Placement
  • $33.5 MM Arrangement Warrant ("rights offering") Financing for Perpetual shareholders fully backstopped by Sue Riddell Rose, President & CEO
  • • $30.6 MM (91%) was initially subscribed for by shareholders pro rata
    • Oversubscribing shareholders fully took up the remaining $2.9 MM
  • All components of the financings priced at $2.00/share
• $38.7 MM in Equity Financings (March 30, 2022):
• • $25.3 MM Brokered Financing
  • $13.4 MM Non-Brokered Private Placement
  • Both financings priced at $3.55/share
• Enterprise value ~$112 MM (2)
• • 54.8 MM shares outstanding
  • 61.2 MM shares outstanding fully diluted (1)
  • Insider ownership of ~34.1%

1. Includes 4.0 MM Share Purchase Warrants (owned by Perpetual)
2. TSX:RBY Jan 13, 2023 Close $1.80/share; Sept 30, 2022 Net Debt of $12.9 MM

Assets

assembled over

four years

through third

party and

crown land

acquisitions, farm-ins and freehold mineral leasing

Captured strategic

road

infrastructure

required for future

development

Spin-out of

Rubellite assets, public listing and equity financings

Significant delineation through Perpetual and competitor activity provided confidence in drilling inventory

Refer to Slide Notes and Advisories

1

Investment Highlights

Robust growth opportunity in the prolific Clearwater play

Expanding

Pure Play

Clearwater

Asset Base

Robust Organic

Production

Growth Profile

Fully Funded

Development

Unlocking Free

Funds Flow

Conservative

Capitalization

and Risk

Mitigation

Management

Alignment and

ESG Excellence

• High growth, pure play Clearwater explorer/producer
• ~345 net sections of prospective Clearwater lands and ~200 Development / Step-out drilling locations
• Multiple exploration prospects captured with material location inventory potential if successful
• Line of sight to additional exploratory land capture and M&A opportunities
• Rubellite controls and operates 100% of its Clearwater asset base
• Organic production growth from initial 350 bbl/d in September 2021 to >2,700 bbl/d in January 2023
• Highly profitable, full cycle IRRs with attractive payout periods at current strip prices
• Development / Step-out drilling ongoing to validate and refine type curves
• Evaluation of exploration prospect inventory to inform sustainable target production level
• Rapid, organic growth plan financed through equity, adjusted funds flow and available credit facilities
• Total cash costs of ~$18 to $20/bbl drives attractive netbacks at strip pricing
• Extensive infrastructure in core operating areas drives attractive capital efficiencies
• Future waterflood and EOR potential to mitigate production declines and increase recovery
• $40 MM bank credit facility
• Risk management with hedging to protect capital investment plans and returns during growth ramp
• Line of sight to sustainable free funds flow; timing dependent on commodity prices, delineation results, exploration success and chosen pace of growth
• Free funds flow could be directed to accelerated organic growth, additional exploration activities, acquisitions and returns to shareholders
• Strong management alignment with insider ownership of ~34.1%
• Majority independent board members ensures solid governance
• Unstimulated, multi-lateral drilling technology from multi-well pads supports environmentally responsible development with limited surface footprint and negligible use of freshwater

Refer to Slide Notes and Advisories

2

Clearwater Play Landscape

Amongst the best single well economics of any play in North America

Clearwater Play Evolution

Clearwater Play

• Since 2017, > 1,000 wells have been drilled, growing play production from nil to ~118,000 bbl/d by Q4 2022
• • ~80% of production at Marten Hills and Nipisi
  • Additional pools proven to the north at Peavine, Seal, Utikuma & Golden; and to the south at Jarvie, Newbrook, Ukalta & Figure Lake
• Primary recovery heavy oil utilizing horizontal multi-lateral drilling

▪ Secondary recovery waterfloods initiated in multiple areas

Source: Peters & Co. Limited estimates based on US$75/B WTI, US$4.00/Mcf NYMEX & C$3.78/Mcf AECO.

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

Early development of Clearwater Play focused on Marten Hills and Nipisi

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

Refer to Slide Notes and Advisories

3

Rubellite Asset Profile

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

Asset Map

Asset Summary:

	Land	Well Count	Production
Area	Net	Net	Q4 2022
	(sections)(1)	(producing)(3)	(bbl/d)(4)

Cadotte

Cranberry Lake

Dawson

Figure Lake

Ukalta

Marten Hills(5)

Northern Exploration(2) Other Exploration

TOTAL

120.9

35

0.9

70

118.8

345.6(2)(5)

19.0

25.0

4.5/3.3

0

3.0

50.3(3)(5)

915

860

405

0

0

2,180

Peavine

Marten Hills

Figure Lake

Ukalta

1. 349.25 net sections at Before Payout Working Interest (345.6 net sections After Payout).
2. Includes Peavine, Dawson and Cadotte exploratory lands at after payout working interest where drilling/work commitments are required for earning.
3. Producing well count at Dec 31, 2022 is 58 gross (51.5 net BPO / 50.3 net APO) with 1.0 net well recovering oil-based mud.
4. 100% conventional heavy crude; based on field estimates.
5. Production at Marten Hills is reported at the Before Payout Working Interest for the first 6 Test Wells. Project Payout is estimated to have occurred in December 2022. A notice of Payout to the Farmor will be issued in Q1 2023, at which time an election by the Farmor to convert to a Working Interest may occur.

Rubellite is one of the top 6 Clearwater Play land holders

Current production: 2,700 bbl/d (Jan 1-15, 2023)

Property Status:

Marten Hills: Developed on primary; Secondary recovery potential

Ukalta: Development ongoing

Figure Lake: Development ongoing; Step-out/extension potential

Northern Exploration: De-risking prospects at Dawson & Peavine

Other Exploration: Various stages of land capture & assessment

Source: geoScout and competitor disclosures

Refer to Slide Notes and Advisories

4