Grizzly Oil Sands

Canadian Oil Sands SummitFebruary 2014

Grizzly Oil Sands

Forward-Looking Statements

Certain statements, estimates and financial information contained in this presentation ("Estimates") constitute forward-

looking statements or information. Such forward-looking statements or information involve known and unknown risks

and uncertainties that could cause actual events or results to differ materially from the Estimates or results implied or

expressed in such forward-looking statements. While presented with numerical specificity, the Estimates are based (i)

on certain assumptions that are inherently subject to significant business, economic, regulatory, environmental,

seasonal, and competitive uncertainties, contingencies and risks including, without limitation, assumptions of resource,

ability to obtain debt and equity financing, capital costs, construction costs, well production performances, operating

costs, commodity pricing, differentials, royalty structures, regulatory approvals, and other known and unknown risks, all

of which are difficult to predict and many of which are beyond the control of Grizzly Oil Sands ULC ("Grizzly"); and (ii)

upon assumptions with respect to future business decisions that are subject to change.

There can be no assurance that the Estimates or the underlying assumptions will be realized and that actual results of

operations or future events will not be materially different from the Estimates. Under no circumstances should the

inclusion of the Estimates be regarded as a representation, undertaking, warranty or prediction by Grizzly, or any other

person with respect to the accuracy thereof or the accuracy of the underlying assumptions, or that Grizzly will achieve

or is likely to achieve any particular results. The Estimates are made as of the date of this presentation and Grizzly

disclaims any intent or obligation to update publicly or to revise any of the Estimates, whether as a result of new

information, future events or otherwise. Recipients are cautioned that forward-looking statements or information are not

guarantees of future performance and, accordingly, recipients are expressly cautioned not to put undue reliance on

forward-looking statements or information due to the inherent uncertainty therein.

There are significant differences in the criteria associated with the classification of reserves, prospective resources and

contingent resources. Contingent resources and prospective resources estimates involve additional risks, specifically

the risk of not achieving commerciality and exploration risk, respectively, not applicable to reserves estimates. No

adjustments for these risks have been made in the groupings of reserves and recoverable resources.

All reference to dollars in this presentation should be assumed to refer to Canadian dollars, unless otherwise noted. All

references to reserves and or resources represent Grizzly’s interest in reserves and resources prior to the deduction of

Crown royalties, unless otherwise noted.

2

Grizzly Oil Sands

Investment Highlights

• > 800,000 net acres in the Athabasca and Peace River oil sands regions (100%

operated, nearly 100% WI) focused on SAGD development

• ~ 3.4 billion bbls of 2P+Contingent Resources(1) across more than 30 project areas

• Significant exploration and exploitation technology upside potential

• Privately owned by Wexford Capital and Gulfport Energy Corporation

• Plan to have > 20 projects ready for development in the next 5 years, with bitumen

production potential of ~170,000 bbbls/d

• Grizzly’s “ARMS” development model enables repeatable and scalable project

development, reducing execution and financing risk

• Steam injection at Algar Lake Phase 1 has commenced

• Windell truck-to-rail terminal at Conklin, Alberta will be ready to ship Algar Lake

and 3rd party oil and receive diluent

• Rail car fleet has been leased to handle Algar Lake production

• Paulina rail-to-barge terminal project design and permitting on the lower

Mississippi River in Louisiana is advanced

3

One of the Largest

Oil Sands Land

Positions in Alberta

Repeatable &

Scalable

Development Model

Using Rail to

Consistently

Access Premium

Markets

1. Source: GLJ Petroleum Consultants Ltd., as at December 31, 2013

Grizzly Oil Sands

2013 Accomplishments

• Phase 1 construction is complete. Reservoir steam injection commenced in January 2014

• Completed a 29 well delineation drilling program last winter• Filed a 12,000 bbl/d development application in Q4 2013

• Evaluated results of preliminary delineation work and acquired land on this 345 mmbbl Contingent Resource(1) Peace River play

• Advanced the 12,000 bbl/d development application filed in Q4 2012

• Constructed Windell truck to rail terminal near May River• Completed design engineering and filed permits for Paulina rail-to-barge

terminal• Contracted 10 year rail rates with CN and leased rail cars• Began discussions for 3rd party business for both terminals

4

Algar Lake

May River

Thickwood

Rail Strategy

Cadotte

1. Source: GLJ Petroleum Consultants Ltd., as at December 31, 2013

Grizzly Oil Sands 5

800,000+ Net Acres of Alberta

Oil Sands Leases

Grizzly Oil Sands Lease

Other Oil Sands Lease

Alberta Oil Sands Areas

Producing Thermal Project

Under Construction Thermal Project

City of

Peace River

City of

Fort McMurray

Grizzly Oil Sands

Grizzly Assets

� Grizzly has a high quality resource based on Steam Assisted Gravity Drainage (“SAGD”) with

additional upside using other reservoir recovery processes

• 3.4 billion bbls of 2P + Contingent Resources(1)

• Resources primarily located in low risk clastic reservoirs, with some exposure to the carbonates

� Two thirds of current lease position remains unexplored, which provides upside potential

6

1. Source: GLJ Petroleum Consultants Ltd. as at December 31, 2013; All Contingent Resources herein refer to “Best Estimate”.

Proved

Reserves

(mmbbls)

2P Reserves

(mmbbls)

Contingent

Resources

(mmbbls)

2P Reserves

+ Contingent

Resources

(mmbbls)

Potential(1)

Plateau

Production

(bbls/d)

Clastics (Existing Technologies) (1)

Operating

Algar Lake Phase 1 67 114 35 149 21,000

Near-Term Development Projects

May River 0 157 662 819 120,000

Cadotte 0 0 345 345 34,000

Thickwood 0 0 114 114 18,000

Other Projects

Additional Growth Properties 0 0 1,769 1,769 230,000

Total Existing Technologies 67 271 2,925 3,196 423,000

Carbonates (Technology under Development) (1)

Additional Growth Properties 0 0 187 187 17,000

TOTAL 67 271 3,112 3,383 440,000

Grizzly Oil Sands

Grizzly’s ARMS Development Model

• Grizzly’s innovative Advanced, Relocatable, Modular, Standardized (ARMS) Development Model uses

proven technologies in a more flexible, compact form to generate 20,000 bbls/d of steam

• ARMS will allow Grizzly to exploit smaller bitumen pools and accelerate production from larger pools by

scaling steam capacity to match reservoir development requirements

• Repeatable and manageable project size allows Grizzly to drive down costs and reduce financing risk

• Reduced cost

• Shop focused construction vs. field

• 50% smaller footprint vs. typical SAGD facility

• Fewer pipe racks – less steel

• Advanced communications

• Re-use plants to reduce average cost over time

7

GRIZZLY’S ARMS PLANT CORE

• Reduced downtime

• Production trains can operate independently

• Self-generated power

• Advanced centralized process controls

• Reduced risk

• Portability allows Grizzly to manage production

levels over the life of a reservoir

Assembly in 3 months

Grizzly Oil Sands

Grizzly Project Development Portfolio

8

Property # ARMS

Plants

Production

Potential

(bbls/d)(1)

2P Reserves +

Contingent

Resources(2)

(mmbbls)

Status

Algar Lake 1 1 6,000 50 Producing

Algar Lake 2 1 6,000 50 Regulatory Approval Received

May River Phase 1 2 12,000 157 Regulatory Application filed December 2013

May River Full Field 12 90,000 662Plan to file Regulatory Application by

December 2016

Cadotte 7 50,000 345Plan to file Development Application by

December 2016

Thickwood 1 5,000 50 Regulatory Application filed December 2012

Total 24 170,000 1,314

1. Management Estimates; 2. Source: GLJ Petroleum Consultants Ltd., as at December 31, 2013

Attractive Project Portfolio ready for scalable development

Grizzly Oil Sands

Algar Lake Property ~ 12,000 bbls/d

• 100% W.I. in 56,960 contiguous acres of oil sands

leases in the southern Athabasca region

• GLJ has assigned 114 mmbbls of 2P Reserves and 35

mmbbls of Contingent Resources

• The Algar development area has been extensively

explored

• 65 cored delineation wells and an additional 16

appraisal exploration core holes outside of the initial

development area

• Reservoir characteristics

• Up to 22 metres thick bitumen pay

• No bottom water or top gas

• Continuous caprock over 40 metres thick

• Expansion potential:

• 18+ metre thick bitumen pay outside of the initial

development area

• Reservoir steam injection commenced in January 2014

• Ramp to full production by mid 2015

• Phase 2 regulatory approval is in hand

9

T88

T87

T86

T85

T84

T83

T82

T81

R8W4R10R11R12R13R14

Grizzly Oil Sands

Algar Lake Reference Well

AB-16-10-85-12W4

McMurray

Wabiskaw-D

DevonianDevonian

5m

Wabiska

10

Grizzly Oil Sands

Algar Lake Reservoir Quality

Gamma Ray Logs Over Horizontal Production Well Trajectories

Excellent Reservoir Quality over Entire Well LengthExcellent Reservoir Quality over Entire Well Length 11

Grizzly Oil Sands

Algar Lake Construction Pictures

12

Evaporator Tower & Construction Office / Phase 2 Site Tank Farm

Central Processing Facility Well Pad

Grizzly Oil Sands

May River Property ~ 100,000 bbls/d

13

• 46,720 acres of of 100% working interest oil

leases located in one of the most attractive

areas of the Athabasca oil sands

• GLJ has assigned 157 mmbbls of 2P reserves

and 662 mmbbls of Contingent Resources

• Adjacent to industry leading SAGD projects

including Statoil KKD project and close to

Jackfish, Christina Lake and CNRL Kirby

projects

• Located ~130 km southeast of the city of Fort

McMurray and 14 km from the town of Conklin.

Adjacent to Windell rail terminal and other

infrastructure

• 122 stratigraphic wells have been drilled and

logged down to the McMurray Formation

• Initial 12,000 bbls/d regulatory development

application was filed in Q4 2013

• 80 km 2D full field seismic program is

underway in Q1 2014

Grizzly Oil Sands 14

GLJ Best Estimate Net Continuous

Bitumen Pay

819 MM Barrels of High Quality

Recoverable Bitumen

08-18-077-08 40 metres Net

Continuous Pay

• Multiple stacked

channel system

• Analogous to nearby

Cenovus, Devon, MEG

and Statoil projects

• Up to 40 metres thick

bitumen pay with

continuous cap rock

• High permeability

sands should deliver

bitumen at steam-oil

ratios in the 2.2 to 2.8

range

Grizzly Oil Sands

Cadotte Property ~ 50,000 bbls/d

15

• 100% W.I. in 48,960 acres

• GLJ has assigned 345 mmbbls of Contingent

Resources

• Up to 18 meters metres net continuous pay in

lower formation

• Delineation program planned in 2015

Grizzly Oil Sands

Thickwood Hills ~ 12,000 bbls/d

• 100% W.I. interest in 38,400 acres

• 59 cored delineation wells drilled

• GLJ has assigned 114 mmbbls of Contingent

Resources

• Reservoir characteristics (Wabiskaw D):

• Bitumen sand covers entire land block

• Clean, blocky sand up to 20 metres thick

• No bottom water or top gas

• Technology upside in Wabiskaw A:

• Thinner, laterally extensive resource with

excellent properties and less viscous bitumen

• 1.1 billion barrels of bitumen initially-in-place

(13 mmbbls included in contingent resources)

• Area competitors plan to pilot CSS and

conductive heating

• 12,000 bbls/d regulatory development

application filed in Q4 2012

16

R13W4R14R15R16

T88

T89

T90

T91

T92

Grizzly Oil Sands

Rail Transportation Strategy

• Rail provides consistent and flexible access to U.S.Gulf Coast and other markets offering Brent pricing

• Rail diluent requirements are 50% lower than pipeline requirements

• U.S.Gulf Coast refiners want minimum diluent, as shale gas condensate supply has saturated the market

• Condensate back-haul opportunities from the U.S.Gulf Coast are available to resource diluent requirements at lower cost

17

Potential markets for bitumen transport via rail

Potential Rail Transportation Routes

Grizzly Oil Sands

Grizzly’s Rail Transportation Strategy

18

Windell Terminal Site – Conklin, AB

Paulina Terminal Site - Louisiana

• Windell Terminal – 18,000 bbls/d capacity

• located adjacent to our May River site. 160,000 bbls/d of

existing and 1.5 MMbbls/d of planned industry bitumen

production in Windell’s service area

• Will be operational to handle Algar Lake oil production

• Capacity is expandable

• Paulina Terminal – 40,000 bbls/d capacity

• located in proximity to 8 complex refineries in the

Mississippi River with refining capacity of 2.4 MMbbls/d

• permitting is underway and expected to be completed in 6

months

• Grizzly has initiated discussions to handle 3rd party

volumes at both facilities

• Developing a rail loadout facility in Conklin, AB

(Windell Terminal) and a rail to barge off-load facility

on the lower Mississippi River (Paulina Terminal)

• Both terminals are located on CN main line. Grizzly

has a 10-year rate contract with CN.

Grizzly Oil Sands

2014 Business Plan Highlights

• Demonstrate Algar Lake reservoir and ARMS plant performance by executing a

successful production ramp

• Achieve positive cash flow by year end

• Advance the 12,000 bbls/d May River development application

• Conduct 2D seismic program to direct future core hole drilling to support the filing of a

“full field” development application

• Prepare ARMS design and execution plan based on Algar project experience

• Conduct detailed reservoir physical and simulation studies

• Delineation and regulatory work plans for 2015 execution

• Advance Thickwood regulatory development application

• Establish rail transportation capability, efficient blending metrics and access to

markets that transact based on world oil prices

• Receive development permits, sanction and construct Paulina

19

Algar Lake

May River

Thickwood

Rail

Strategy

Cadotte