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Cavvy Energy Ltd. Proxy Solicitation & Information Statement 2022

Apr 29, 2022

45516_rns_2022-04-29_bb60158f-2e89-4d9d-bd79-42a2c674a623.pdf

Proxy Solicitation & Information Statement

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Notice�of�Annual�&�Special�Meeting�of� Shareholders�to�be�held�on�May�26,�2022� Management�Information�Circular April�12,�2022�

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PIERIDAE�ENERGY�LIMITED

NOTICE�OF�ANNUAL�AND�SPECIAL�MEETING�OF�SHAREHOLDERS

Please�join�us�at�our�2022�annual�and�special�meeting�of�shareholders�(the�“ Meeting ”),�which�will�be�held�in�a�virtual� only�meeting�format.��

When��

May�26,�2022�� commencing�at�8:30�a.m.�(Mountain�Time)��

Where��

The�Meeting�will�be�held�via�live�audio�webcast�online�at:�meetnow.global/M4UGSLX

To�continue�to�mitigate�risks�to�the�health�and�safety�of�our�shareholders,�employees,�other�stakeholders�and� communities,�Pieridae�Energy�Limited�(“ Pieridae ”)�will�hold�the�Meeting�in�a�virtual�only�format,�which�will�be� conducted�via�live�audio�webcast.�Thus,�shareholders�will�have�the�opportunity�to�participate�in�the�Meeting�online� regardless�of�their�geographic�location.�During�the�Meeting,�participants�will�have�the�opportunity�to�ask�questions� and�to�vote�on�a�number�of�important�matters.�Interested�shareholders�are�encouraged�to�participate�in�the� Meeting.�Inside�this�document,�you�will�find�important�information�and�detailed�instructions�about�how�to� participate�in�the�Meeting�on�a�virtual�basis.��

What�the�Meeting�will�cover��

  1. Receiving �the�2021�consolidated�financial�statements�of�Pieridae�and�the�related�auditor’s�report;��

  2. Fixing� the�number�of�directors�of�Pieridae�to�be�elected�at�8;��

  3. Electing �the�directors�of�Pieridae;��

  4. Appointing �Ernst�&�Young�LLP�as�auditors�of�Pieridae;��

  5. Approving �the�amended�and�restated�stock�option�plan�of�Pieridae�(the�text�of�which�is�set�forth�in�Schedule� A�attached�to�the�Management�Information�Circular);��

  6. Advisory�Vote� on�our�approach�to�executive�compensation�(say�on�pay); and��

  7. Considering �any�other�business�that�is�properly�brought�before�the�Meeting�or�any�adjournment�or� postponement�thereof.���

Please�refer�to�the�attached�Management�Information�Circular�for�more�details.��

Your�vote�is�important��

The�attached�Management�Information�Circular�tells�you�about�the�items�of�business�for�consideration,�who�may� vote�and�how�you�can�vote.��Please�read�the�Management�Information�Circular�carefully�and�remember�to�vote.���

Non�Registered�Shareholders�(as�defined�in�the�accompanying�Management�Information�Circular)�who�receive�these� materials�through�their�broker�or�other�intermediary�are�requested�to�follow�the�instructions�for�voting�provided�to� you�by�your�broker�or�intermediary,�which�may�include�the�completion�and�delivery�of�a�voting�instruction�form.�� Shareholders�that�are�unable�to�participate�in�the�Meeting� or�any�adjournment�or�postponement�thereof�via�live�

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audio�webcast�are�requested�to�date�and�sign�either�the�accompanying�form�of�proxy�or�the�voting�instruction�form� issued�to�you�by�your�broker�or�other�intermediary,�and�mail�it�in�the�envelope�provided,�so�that� it�is�received�no� later�than�8:30�am�(Mountain�Time)�on�May�24,�2022 ,�to:�Computershare�Trust�Company�of�Canada,�Attention:� Proxy�department,�8th�floor,�100�University�Avenue,�Toronto,�Ontario�M5J�2Y1.��Alternatively,�Shareholders�may�use� the�internet�(www.investorvote.com)�or�the�telephone�(1�866�732�VOTE�(8683))�to�transmit�voting�instructions.�In� each�case,�proxies�must�be�received�by�Computershare�Trust�Company�of�Canada�not�later�than�8:30�am�(Mountain� Time)�on�May�24,�2022,�or�48�hours�before�the�time�of�the�adjourned�or�postponed�meeting�(excluding�weekends� and�holidays).�����

If�you�are�a�Non�Registered�Shareholder�(as�defined�in�the�accompanying�Management�Information�Circular)�and� do�not�complete�and�return�the�voting�instruction�form�and�other�materials�in�accordance�with�the�instructions� for�voting�provided�to�you�by�your�broker�or�intermediary,�you�may�not�be�entitled�to�vote�at�the�Meeting,�either� online�or�by�proxy.�

If�you�have�any�questions�about�the�Meeting�or�about�voting,�please�contact�Computershare�Trust�Company�of� Canada�by�telephone�(toll�free)�at�1�800�564�6253.�

By�order�of�the�Board�of�Directors�of�Pieridae�Energy�Limited�

dated�April�12,�2022�at�Calgary,�Alberta��

Thomas�E.�Valentine ”�� Thomas�E.�Valentine� Corporate�Secretary

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MANAGEMENT�INFORMATION�CIRCULAR

You�have�received�this�Management�Information�Circular�(the�“ Circular ”)�because�you�owned�common�shares� (“ Common�Shares ”)�of�Pieridae�Energy�Limited�(the�“ Corporation ”�or�“ Pieridae ”)�as�of�the�close�of�business�on�April� 12,�2022�(the�“ Record�Date ”).��

You�are�entitled�to�receive�notice�of,�and�to�vote�your�Common�Shares�at,�the�annual�and�special�meeting�(the� “ Meeting ”)�of�the�Corporation’s�shareholders�(the�“ Shareholders ”)�to�be�held�via�live�audio�webcast�online�at:� meetnow.global/M4UGSLX�on�May�26,�2022�commencing�at�8:30�a.m.�(Mountain�Time)�or�at�any�adjournment�or� postponement�thereof.���

The�management�of�Pieridae�is�soliciting�your�proxy�for�the�Meeting,�which�means�that�management�is�hereby� contacting�you�to�encourage�you�to�vote.��We�do�this�primarily�by�mail,�but�we�may�also�telephone�you.��All�associated� costs�(which�we�expect�to�be�minimal)�will�be�paid�by�the�Corporation.��

Within�the�Circular�you�will�find�important�information�about�the�Meeting,�the�items�of�business�to�be�considered� during�the�Meeting�and�detailed�instructions�about�how�to�participate�in�the�Meeting,�and�how�to�vote�your�Common� Shares,�on�a�virtual�basis.�Unless�otherwise�indicated,�all�information�contained�in�this�Circular�is�given�as�of�the�� Record�Date�and�all�dollar�amounts�referenced�herein�are�stated�in�the�Canadian�currency.���

The�Board�of�Directors�of�the�Corporation�has�approved�this�Circular�and�its�distribution�to�the�Shareholders.�

Dated�at�Calgary,�Alberta�on�April�12,�2022.��

Pieridae�Energy�Limited��

Alfred�Sorensen ”��

Alfred�Sorensen�

Chief�Executive�Officer��� Pieridae�Energy�Limited��

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TABLEOFCONTENTS
LETTERTOSHAREHOLDERS 8
PROXYINFORMATION 12
INTERESTOFCERTAINPERSONSORCOMPANIESINMATTERSTOBEACTEDUPON 15
SHAREHOLDERQUESTIONSANDANSWERS 16
WhyisPieridaehavingavirtualonlyMeeting? 16
HowwillShareholdersbeabletoparticipateattheMeeting? 16
Whoissolicitingmyproxy? 16
WillthefinancialstatementsoftheCorporationbepresentedattheMeeting? 16
OnwhatwillIbeaskedtovote? 17
HowwillthesemattersbedecidedattheMeeting? 17
HowmanyvotesdoIhave? 17
HowmanyCommonSharesareeligibletovote? 17
HowdoIvote? 17
HowdoIparticipateintheMeeting? 18
HowcanaNon�RegisteredShareholdervote? 18
HowcanaShareholdervotebyproxy? 19
Howwillmyproxybevoted? 20
WhatifIwanttorevokemyproxy? 20
Howareproxysolicited? 20
HowareMeetingMaterialsdeliveredtoShareholders? 20
BUSINESSOFTHEMEETING 21
RECEIVINGTHEANNUALREPORT 21
FIXINGTHENUMBEROFDIRECTORSTOBEELECTED 21
ELECTIONOFDIRECTORS 21
APPOINTMENTOFAUDITORS 23
ExternalAuditorServiceFees 23
PROPOSEDAPPROVALOFTHEAMENDEDANDRESTATEDSTOCKOPTIONPLAN 23

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ADVISORYVOTEONEXECUTIVECOMPENSATION(SAYONPAY) 24
INFORMATIONCONCERNINGNOMINEESFORELECTIONTOTHEBOARD 25
BIOGRAPHICALINFORMATIONREGARDINGTHENOMINEES 25
AlfredSorensen—DirectorandChiefExecutiveOfficer 25
CharlesBoulanger—Director 25
AndrewJudson—Director 26
KirenSingh—Director 26
RichardCouillard–DirectorNominee 27
PatriciaMcLeodQ.C.–DirectorNominee 28
GailHarding–DirectorNominee 28
DougDreisinger–DirectorNominee 29
COMPETENCIESANDSKILLSOFDIRECTORS 29
CEASETRADEORDERS,BANKRUPTCIES,PENALTIESANDSANCTIONS 30
MAJORITYVOTINGPOLICY 31
INFORMATIONCONCERNINGEXECUTIVECOMPENSATION 31
COMPENSATIONDISCUSSIONANDANALYSIS 32
ObjectivesofNEOCompensationProgramandCompensationPhilosophy 32
BaseCompensation 33
GroupRetirementSavingsPlan 33
DiscretionaryBonusProgram 33
TheStockOptionPlans 34
TheStockOptionsthatareOutstandingattheRecordDate 39
TheAnnualBurnRate 40
RisksAssociatedwithCompensationPoliciesandPractices 40
SUMMARYCOMPENSATIONTABLE 41
INCENTIVEPLANAWARDS 42
OutstandingShare�basedandOption�basedAwards 42
IncentivePlanAwards–ValueVestedorEarnedduringtheYear 43
SHAREOWNERSHIPPOLICY 44

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TERMINATIONANDCHANGEOFCONTROLBENEFITS 45
INFORMATIONCONCERNINGDIRECTORCOMPENSATION 46
DIRECTORCOMPENSATIONTABLE 47
SHARE�BASEDANDOPTION�BASEDAWARDS 48
INCENTIVEPLANAWARDS–VALUEVESTEDOREARNEDDURINGTHEYEAR 49
INDEMNIFICATIONOFDIRECTORSANDSENIORMANAGEMENT 49
LIABILITYINSURANCEFORDIRECTORSANDSENIORMANAGEMENT 49
EQUITYCOMPENSATIONPLANINFORMATION 50
StockOptionPlans 50
INDEBTEDNESSOFDIRECTORSANDEXECUTIVEOFFICERS 50
INTERESTOFINFORMEDPERSONSINMATERIALTRANSACTIONS 51
MANAGEMENTCONTRACTS 51
INFORMATIONCONCERNINGGOVERNANCE 51
BOARDOFDIRECTORS 51
ORIENTATIONANDCONTINUINGEDUCATION 52
ETHICALBUSINESSCONDUCT 52
ESGCOMMITMENT 52
NOMINATIONOFDIRECTORS 53
INFORMATIONCONCERNINGDIVERSITY 53
DIVERSITYSTATEMENT 53
CANADABUSINESSCORPORATIONSACTREQUIREDDISCLOSUREONDIVERSITY 53
COMPENSATION 55
BOARDCOMMITTEES 55
AuditCommittee 56
Governance&ESGCommittee 56
Reserves&Health,Safety&EnvironmentCommittee 57
Nomination&CompensationCommittee 57
REGISTRARANDTRANSFERAGENT 58
OTHERBUSINESS 58

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SHAREHOLDERPROPOSALS 58
ADVANCENOTICEBY�LAW 59
ADDITIONALINFORMATION 60
APPROVALOFDIRECTORS 60
SCHEDULEA–AMENDEDANDRESTATEDSTOCKOPTIONPLAN 61
SCHEDULEB–BOARDOFDIRECTORSMANDATE 71

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LETTER�TO�SHAREHOLDERS��

Turning�the�Page�

We�have�begun�to�look�beyond�the�pandemic�that�has�held�the�world�in�its�grasp�since�2020,�while�recognizing�its� profound�impact�on�the�macroeconomic�environment�within�our�industry.�It�was�encouraging�to�see�commodity�prices� offer�a�tangible�sign�of�hope�in�2021�many�had�been�looking�for,�surging�to�a�10�year�high�last�fall.[1] �Increased�demand� kickstarted�a�global�economic�recovery�the�likes�of�which�had�not�been�seen�since�the�negative�days�brought�on�by�the� pandemic.�One�needs�to�look�no�further�than�energy�prices�ending�2021�59%�higher�than�the�first�trading�day�of�the� year.[2]

From�an�overall�macroeconomic�perspective,�the�rise�in�energy�prices�helped�to�stabilize�the�ship�somewhat.�In�2022,� the�reopening�of�world�economies�is�placing�enormous�stress�on�existing�energy�production�infrastructure�worldwide.� Multi�year�under�investment�in�the�industry�the�past�three�years�means�energy�demand�has�and�will�likely�continue�to� surge�past�existing�production�capacity,�resulting�in�higher�and�more�volatile�energy�prices�for�the�foreseeable�future.� We�believe�this�macro�supply�demand�imbalance�will�take�many�years�to�correct.�Fortunately,�with�the�asset�mix� Pieridae�possesses,�we�are�exceptionally�well�placed�to�capitalize�on�these�circumstances�and�grow�our�business�across� all�commodity�lines.��

Building�on�strong�economics�and�the�Government�of�Alberta�lifting�COVID�restrictions,�we�now�have�the�opportunity� to�further�build�company�culture.�Bringing�collaboration�back�into�the�office�after�two�years�of�working�apart�will�help� energize�our�focus�and�direction.�Through�this�improved�environment,�we�can�better�pursue�synergies,�tackle�our� issues,�take�advantage�of�our�opportunities�and�build�on�past�successes.�

Pieridae�achieved�a�number�of�operational�successes�in�2021.�We�had�large�turnarounds,�which�are�planned� maintenance�shutdowns,�at�two�of�our�gas�complexes:�Jumping�Pound�and�Caroline.�Both�were�completed�very�close� to�budget�and�on�time,�which�took�a�significant�amount�of�planning�and�effort.�The�fact�that�we�were�able�to�complete� those�two�turnarounds�without�any�degree�of�COVID�related�interruption�is�a�testament�to�the�efforts�of�the�entire� Pieridae�team.�These�projects�ensured�the�facilities�were�ready�for�the�harsh�cold�of�winter�and�beyond.�

An�ongoing�commitment�to�safety�and�watching�COVID�move�to�our�rearview�mirror�were�offset�by�the�state�of�flux� our�company�experienced�for�a�number�of�months�in�2021.�This�was�primarily�due�to�the�announced�Strategic�Review� that�kicked�off�at�the�end�of�July.�The�process�initiated�opportunities�to�either�recapitalize�the�balance�sheet�or�to� monetize�certain�assets�or�the�company�itself.��

In�the�end,�the�special�Board�committee�set�up�to�oversee�the�Review�concluded�the�various�alternatives�presented� were�not�compelling�relative�to�the�company’s�stand�alone�prospects.�The�restructuring�of�Pieridae’s�credit�agreement� announced�January�4,�2022�played�a�pivotal�role�in�the�special�committee’s�conclusion�and�it�was�fully�supported�by� the�entire�Pieridae�Board.�

One�of�the�big�lessons�coming�out�of�that�process�is�that�the�marketplace�sees�Foothills�development�opportunities�as� challenging.�Our�job�in�2022�is�to�prove�that�while�yes,�they�are�challenging,�there�is�significant�economic�opportunity� in�doing�so�successfully.�We�need�to�prove�that�and�show�the�marketplace�the�Foothills�are�an�economic�place�to� develop�oil�and�gas�resources�that�are�competitive�with�the�Montney.�And�that’s�why�drilling�wells�this�year�is�such�an�

1 Bloomberg�‘Commodities�Prices�Are�Surging�Again’�–�September�13,�2021�

2�S&P�Goldman�Sachs�Commodity�Index�(GSCI)�

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important�part�of�our�overall�plan,�demonstrating�we�are�able�to�drill�economically�in�Alberta�to�bring�on�new� production�to�help�fill�up�our�gas�plants,�lower�per�unit�operating�costs�and�increase�revenue.�

Pieridae�also�continues�to�look�at�ways�to�strengthen�the�relationship�with�our�First�Nations�neighbours�on�Stoney� Nakoda�reserve�lands.�These�reserve�lands�contain�the�largest�untouched�conventional�resources�so�the�opportunity� to�bring�that�gas�supply�to�our�Jumping�Pound�facility�is�important�and�we�hope�to�initiate�that�process�in�2022.�It's�a� way�for�us�to�work�with�the�Indigenous�community�and�allow�the�Stoney�access�into�the�gas�plant�and�the�benefits�that� come�with�it.�

As�we�look�for�ways�to�add�additional�gas�to�those�plants,�we�continue�to�evolve�our�risk�management�processes�to� ensure�we�balance�meeting�our�obligations�to�hedge�and�protect�revenue�while�also�taking�advantage�of�rising� commodity�prices.�Hedging�was�very�expensive�for�us�in�2021�as�we�came�into�the�year�with�a�larger�percentage�of�our� gas�production�hedged�at�prices�far�below�market,�particularly�in�the�last�half�of�the�year.�

Hedging�can�be�a�useful�tool�but�it�can�become�very�expensive�because�you've�got�to�have�credit�to�do�it�and�ensure� volumes�are�available�when�needed.�It’s�a�delicate�balance�when�it�comes�to�understanding�the�impact�hedges�have� on�our�overall�business.�It�is�difficult�to�hedge�in�a�rising�market�and�you�also�need�to�be�prepared�to�hedge�in�a�falling� market.�Just�to�put�it�in�context,�look�at�what�happened�in�2020�when�natural�gas�and�crude�oil�prices�collapsed� significantly,�more�so�than�they�had�ever�had�before.�Pieridae�was�hedged�going�into�2020�and�those�hedges�performed� very�well.�One�of�the�reasons�we�survived�that�period�was�the�fact�that�we�took�advantage�of�our�hedge�position�and� it�allowed�us�to�monetize�our�position�and�participate�in�the�price�recovery.�So,�hedging�is�a�bit�of�a�double�edged� sword,�but�it�can�be�used�effectively�to�manage�the�capital�requirements�of�the�company�to�ensure�our�long�liquidity.�

Subsequent�to�the�Strategic�Review,�we�continue�to�look�for�ways�to�recapitalize�Pieridae’s�balance�sheet.�Nothing�is� more�important�than�refinancing�the�company’s�debt.�Discussions�to�find�solutions�that�make�sense�for�both� shareholders�and�for�our�lender�are�ongoing.�The�company�did�reach�an�agreement�with�our�main�lender�to�incorporate� the�$50�million�deferred�fee�owing�to�them�into�the�overall�loan�currently�due�in�October�of�2023.�The�deferred�fee�will� not�accrue�interest�while�outstanding.�

The�issue�of�the�transfer�of�licenses�from�Shell�to�Pieridae�for�the�Foothills�assets�we�purchased�in�the�fall�of�2019�must� be�resolved.�Late�in�2021,�the�Alberta�Energy�Regulator�or�AER�released�updated�guidelines�for�companies�when� transferring�assets.�Those�guidelines�are�significantly�more�stringent�than�what�existed�when�we�originally�did�the� transaction�with�Shell.�As�a�result,�both�Shell�and�Pieridae�decided�to�revise�the�application�and�plan�to�resubmit�at�a� future�date�under�the�new�regulatory�framework.�Importantly,�Pieridae�continues�to�own�the�Foothills�assets�and�has� responsibility�for�their�safe�operation�while�Shell�remains�the�licensee�� of�record.��

While�we�did�not�experience�any�significant�production�setbacks�due�to�the�COVID�pandemic�in�2021,�it�had�a�significant� impact�on�the�company�by�contributing�to�our�inability�to�reach�a�final�investment�decision�to�build�the�Goldboro�LNG� project,�fully�integrate�it�into�the�natural�gas�markets�in�Western�Canada,�and�finance�that�whole�process�by�having�our� long�term�natural�gas�sales�agreement�with�German�energy�company�Uniper.�Reaching�a�final�investment�decision�for� the�Project�would�have�allowed�us�the�ability�to�access�a�much�lower�cost�of�capital.�Our�business�plan�was�sidelined� as�a�result�of�the�inability�to�achieve�FID.��

This�outcome�has�changed�the�primary�focus�of�Pieridae�from�an�integrated�LNG�company�with�an�upstream�business� to�an�upstream�company�with�a�potential�LNG�option.��

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Fast�forward�to�early�2022�and�there�is�now�renewed�interest�in�our�project.�With�the�outbreak�of�war�between�Russia� and�Ukraine,�the�issue�of�security�of�supply�has�become�front�and�centre.�Pieridae�could�provide�a�solution�that�would� allow�Canada�to�take�a�leadership�role�in�supplying�much�needed�natural�gas�overseas�for�20�30�years,�pushing�back� against�the�dangers�presented�by�the�dependence�of�Europe�on�Russian�gas.�That�solution�is�in�the�form�of�a�net�zero� emissions�floating�LNG�facility.�The�potential�project�the�company�has�been�analyzing�has�a�capacity�of�2.4�million� tonnes�per�annum,�with�natural�gas�needs�of�400�mmcf/d,�which�is�5%�of�total�German�daily�consumption�–�an�amount� that�would�make�a�true�difference.�

What�we�need�is�a�commitment�of�support�from�the�Government�of�Canada�that�this�initiative�is�a�national�priority.�If� deemed�so,�then�pipeline�capacity�to�transport�the�gas�must�be�worked�out,�as�well�as�resolving�emissions�constraints� under�Nova�Scotia’s�cap�and�trade�program.�Having�the�Mi’kmaq�involved�as�partners�so�that�they�might�share�in�the� benefits�of�this�project�is�also�a�priority.�And�above�all,�there�will�be�no�project�unless�Pieridae�finds�a�partner�as�funding� for�an�LNG�initiative�will�not�be�done�on�the�back�of�the�company’s�current�balance�sheet.�

Natural�gas�continues�to�be�viewed�as�a�bridge�fuel�as�the�world�continues�a�methodical,�even�paced�transition�to�lower� carbon�fuels.�While�the�Ukraine�invasion�has�turned�energy�policy�on�its�head,�the�path�of�decreasing�CO2�emissions� along�with�a�greater�focus�on�diversity�and�equity�in�the�workplace�have�propelled�ESG,�or�Environmental,�Social�and� Governance,�into�the�spotlight�in�recent�years.�Pieridae�recognized�this�and�we�were�proud�to�release�our�inaugural� ESG�Report�in�2021.��

Some�important�steps�were�taken�such�as�implementing�diversity�surveys,�measuring�and�tracking�emissions�to� understand�how�we�can�best�reduce�them,�and�structuring�our�committees�at�the�Board�level�to�break�out�a�separate� Governance�and�ESG�Committee�to�give�this�area�the�focus�it�deserves.�

We�are�also�following�through�on�a�previous�commitment�to�add�additional,�senior�level�bench�strength�in�this�area�by� hiring�an�ESG�Director.�This�individual�will�report�directly�to�the�President�and�Chief�Operating�Officer�and�will�be�tasked� with�building�a�strategic�partnership�with�the�company’s�executive�leadership�team,�while�fulfilling�the�role�of�thought� leader�for�ESG�initiatives,�performance,�reporting,�governance�and�execution.�

Pieridae�has�a�plan�to�achieve�carbon�neutrality�by�2050.�A�lot�of�that�is�centered�around�carbon�sequestration�and� methane�emissions�reduction.�Although�it�is�going�to�be�challenging�to�meet�some�of�the�requirement’s�government� has�put�in�the�path�of�industry,�we�intend�to�show�the�marketplace�the�company�is�serious�about�meeting�this�goal,� and�we�will�be�devoting�the�appropriate�resources�to�these�efforts.�

Our�Caroline�Carbon�Capture�Blue�Power�Project�announced�in�May�of�2021�could�provide�a�long�term�solution�to� meeting�those�requirements.�It�is�quite�an�innovative�plan�where�we�combine�large�scale�carbon�storage�underground� while�producing�clean�power�to�both�operate�our�Caroline�Gas�Plant�and�then�sell�the�remaining�clean�electricity�to�the� Alberta�grid.�Our�goal�in�2022�is�to�conduct�an�updated�feasibility�study�for�the�project.�If�the�concept�makes�sense,�it� would�be�a�key�part�of�our�carbon�management�plan�which�we�also�aim�to�develop�and�deliver�this�year.�That�plan� would�be�aligned�with�our�ongoing�ESG�work.�

As�we�look�to�the�remainder�of�2022,�energy�continues�to�be�an�important�part�of�the�Canadian�story.�Canadian�exports� remain�driven�by�energy�which�plays�a�big�part�in�our�ability�to�finance�our�nation’s�social�programs.�We�remain�bullish� that�commodity�prices�will�remain�robust,�which�is�good�news�for�Pieridae.��

Our�strategic�plan�and�budget�for�2022�are�absolutely�focused�on�supporting�our�upstream�business,�refinancing�our� debt�and�delivering�growth�on�the�asset�base�we�have.�We�must�operate�as�efficiently�as�possible�and�increase�

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production�in�order�to�extend�the�life�of�our�facilities�and�lower�operating�costs,�leaning�on�a�revived�‘performance� culture’�to�make�this�all�happen.�

We�know�we�can�provide�the�energy�to�fuel�people’s�lives�during�the�energy�transition�and�our�industry�is�a�fundamental� core�component�of�that�transition.�Access�to�cheap,�low�cost�energy�is�one�of�the�things�that�has�a�dramatically�positive� impact�on�the�health�and�wealth�of�countries�and�their�‘security’�in�the�world�where�a�global�tyrant�can�upend�the� delicate�balance�at�any�time.�We�must�work�to�ensure�this�never�happens�again.�

Pieridae�would�not�have�achieved�what�it�did�in�2021�without�the�extraordinary�efforts�of�our�staff,�management�team� and�directors.�We�thank�them�for�their�dedication�and�loyalty�during�a�tumultuous�year.�We�also�thank�our�shareholders� and�other�stakeholders�for�their�support�of�and�belief�in�Pieridae.���

April�12,�2022��

  • �������“ Myron�Tétreault ”��

Alfred�Sorensen ”��

  • ��������Myron�Tétreault��

  • ��������Chair�of�the�Board�of�Directors��

Alfred�Sorensen� Chief�Executive�Officer���

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PROXY�INFORMATION��

DATE�OF�THE�INFORMATION�CIRCULAR

The�date�of�this�this�Management�Information�Circular�(the�“ Circular ”)�is�April�12,�2022�(the�“ Record�Date ”).���

VOTING

As�a�shareholder�of�Pieridae,�you�are�entitled�to�receive�notice�of,�and�to�vote�your�Common�Shares�at,�the�annual� and�special�meeting�(the�“ Meeting ”)�of�the�Corporation’s�shareholders�(the�“ Shareholders ”)�to�be�held�via�live�audio� webcast�online�at:�meetnow.global/M4UGSLX�on�May�26,�2022�commencing�at�8:30�a.m.�(Mountain�Time)�or�at�any� adjournment�or�postponement�thereof.���

At�least�two�persons�who�hold�or�represent�by�proxy�at�least�5%�of�the�issued�and�outstanding�Common�Shares�must� be�present�at�the�Meeting�in�order�to�constitute�a�quorum�thereby�enabling�the�Meeting�to�proceed.�If�you�submit� a�properly�executed�form�of�proxy�or�vote�by�telephone�or�the�internet,�you�will�be�considered�to�be�part�of�the� quorum.��

As�at�April�12,�2022�(the�“ Record�Date ”),�the�Corporation�had�157,681,871�Common�Shares�issued�and�outstanding.� Each�Common�Share�entitles�the�holder�thereof�to�one�vote�on�each�resolution�proposed�at�a�meeting�of� Shareholders.�Except�for�Common�Shares,�the�Corporation�has�not�issued�any�other�voting�security.��The�outstanding� Common�Shares�are�listed�on�the�Toronto�Stock�Exchange�under�the�symbol�“PEA”.���

With�the�exception�of�the�advisory�vote�on�executive�compensation,�we�must�receive�a�simple�majority�of�votes�cast� (50%�plus�1�vote)�for�each�of�the�items�put�forward�at�the�Meeting�in�order�for�that�item�to�be�approved.�� Computershare�Trust�Company�of�Canada�(“ Computershare ”),�our�transfer�agent�and�registrar,�will�count�the�votes� during�the�Meeting�in�its�capacity�as�the�Corporation’s�scrutineer.��

WHO�CAN�VOTE

If�you�held�Common�Shares�at�5:00�p.m.�(Mountain�Time)�on�the�Record�Date�(April�12,�2022),�you�are�entitled�to� receive�notice�of�and�vote�at�the�Meeting.�Each�Common�Share�that�you�own�entitles�you�to�one�vote�at�the�meeting� or�any�adjournment�or�postponement�thereof.��

We�are�not�aware�of�any�person�who�beneficially�owns�or�exercises�control�or�direction�over�(directly�or�indirectly)� more�than�10%�of�the�voting�rights�attached�to�the�Common�Shares�as�at�the�Record�Date,�except�the�following:��

  • (a) Alberta�Investment�Management�Corporation�is�the�registered�holder�of�23,419,546�(or�approximately� 14.9%)�of�the�issued�and�outstanding�Common�Shares�on�the�Record�Date;�and��

  • (b) Erikson�National�Energy�Inc.�is�the�registered�holder�of�23,255,813�(or�approximately�14.7%)�of�the� issued�and�outstanding�Common�Shares�on�the�Record�Date.��

HOW�TO�VOTE

You�can�vote�in�one�of�two�ways:��

  • (a) by�participating�in�the�Meeting�via�live�audio�webcast�online�at�meetnow.global/M4UGSLX; or�

  • (b) by�having�someone�else�vote�for�you�at�the�Meeting�via�live�audio�webcast�(called�voting�by�proxy).�

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The�rules�for�voting�depend�on�whether�you�are�a�“registered�shareholder”�or�a�“non�registered�shareholder”,�as� discussed�below.�

Registered�shareholders�

You are�a� registered�shareholder �of�Common�Shares�(a�“ Registered�Shareholder ”)�if�you�hold�the�share�certificate�in� your�name�or�your�shares�are�recorded�electronically�in�the�direct�registration�system.���

We�have�sent�you�a� proxy�form �with�this�package�if�you�would�like�someone�else�to�vote�for�you�at�the�Meeting.���

Non�registered�(beneficial)�shareholders�

You�are�a �non�registered�shareholder �of�Common�Shares�(a�“ Non�Registered�Shareholder ”)�if�you�hold�your�shares� through�an�intermediary�where�the�shares�are�registered�in�your�intermediary’s�name�and�you�are�the�beneficial� shareholder.�More�particularly,�you�are�a�Non�Registered�Shareholder�if�your�Common�Shares�are�held�on�your� behalf�but�registered�either:�(a)�in�the�name�of�an�intermediary�that�you�deal�with�in�respect�of�the�Common�Shares� (intermediaries�include,�among�others,�banks,�trust�companies,�securities�dealers�or�brokers�and�trustees�or� administrators�of�self�administered�RRSPs,�RRIFs,�RESPs�and�similar�plans);�or�(b)�in�the�name�of�a�clearing�agency� (such�as�The�Canadian�Depository�for�Securities�Limited)�of�which�the�intermediary�is�a�participant.��

We�do�not�have�the�names�of�Non�Registered�Shareholders�or�a�record�of�the�number�of�shares�that�are�owned�by� Non�Registered�Shareholders.��

Non�Registered�Shareholders�who�have�not�objected�to�their�intermediary�disclosing�certain�ownership�information� about�themselves�to�the�Corporation�are�referred�to�as�“Non�Objecting�Beneficial�Owners”�(“ NOBOs ”).�Non� Registered�Shareholders�who�have�objected�to�their�intermediary�disclosing�ownership�information�about� themselves�to�the�Corporation�are�referred�to�as�“Objecting�Beneficial�Owners”�(“ OBOs ”).���

In�accordance�with�the�requirements�as�set�out�in�National�Instrument�54�101�(Communications�with�Beneficial� Owners�of�Securities�of�a�Reporting�Issuer�of�the�Canadian�Securities�Administrators),�the�Corporation�has�distributed� copies�of�the�Notice�of�Meeting,�this�Circular,�the�form�of�proxy�and�the�supplemental�mailing�list�return�card� (collectively,�the�“ Meeting�Materials ”)�to�intermediaries�for�onward�distribution�to�NOBOs�and�OBOs.��

Intermediaries�are�required�to�forward�the�Meeting�Materials�to�Non�Registered�Shareholders�unless�a�Non� Registered�Shareholder�has�waived�the�right�to�receive�them.�The�Corporation�will�reimburse�intermediaries�for�the� cost�incurred�by�them�in�delivering�the�Meeting�Materials�to�OBOs.��

Only�Registered�Shareholders�or�duly�appointed�proxyholders�are�permitted�to�vote�at�the�Meeting.�Non� Registered�Shareholders�should�carefully�follow�the�instructions�of�their�intermediary,�including�those�regarding� when�and�where�the�proxy,�proxy�authorization�form�or�voting�instruction�form�is�to�be�delivered.���

REVOCABILITY�OF�PROXY�

Only�Registered�Shareholders�have�the�right�to�revoke�a�proxy.���

A�Non�Registered�Shareholder�who�wishes�to�change�its�vote�must�arrange�for�its�intermediary�to�revoke�its�proxy� on�its�behalf.�Your�intermediary�will�send�you�a� voting�instruction�form .��You�must�comply�with�the�instructions�on� the�voting�instruction�form�and�return�it�your�intermediary�for�your�vote�to�be�counted�at�the�Meeting.��

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VOTING�PROCEDURE

registeredshareholders registeredshareholders non�registered(beneficial)shareholders
Votingbyproxy
YourCommonShareswillbevotedatthe
Meetingaccordingtoyourinstructions.Send
yourvotinginstructionsbyusingyour_proxy_
form.
Youcansendyourinstructionsbymailinthe
addressedenvelopeenclosedherewithto
Computershare.Followtheinstructionsonthe
formcarefully.Yourinstructionsmustbe
receivedby8:30am(MountainTime)onMay
24,2022foryourvotetobecounted.Ifyouare
mailingtheform,besuretoallowenoughtime
fortheenvelopetobedelivered.
Ifyouareappointingaproxyholderotherthan
AlfredSorensenoralternatively,DarcyReding,
youmustregistersuchproxyholderwith
Computershare,whichisanadditionalstepto
becompletedonceyouhavesubmittedyour
formofproxy.Followtheinstructionsbelow
undertheheading“Registeryourproxyholder”.
Failuretoregistertheproxyholderwillresultin
theproxyholdernotreceivingaControlNumber
tovoteduringtheMeetingandwillonlybeing
abletoattendasaguestwithoutvoting
privileges.
IftheMeetingisadjournedorpostponed,your
proxymustbereceived48hoursbeforethe
timeofthereconvenedmeeting(excluding
weekendsandholidays).
Beneficialshareholdersshouldvotethrough
Broadridgeatwww.proxyvote.com.
YourCommonShareswillbevotedattheMeeting
accordingtoyourinstructions.Sendyourvoting
instructionsusingyour_votinginstructionform._
Mostintermediariesallowyoutosendyour
instructionsbymail,internet,telephoneorfax,but
eachhasitsownprocesssomakesureyoufollow
theinstructionsontheform.Yourintermediary
mustreceiveyourinstructionsinenoughtimeto
actonthem.Checkthedeadlineontheform.If
youaremailingyourinstructions,besuretoallow
enoughtimefortheenvelopetobedelivered.
Ifyouareappointingaproxyholderotherthan
AlfredSorensenoralternatively,DarcyReding,you
must
register
such
proxyholder
with
Computershare,whichisanadditionalsteptobe
completedonceyouhavesubmittedyourformof
proxy.Followtheinstructionsbelowunderthe
heading“Registeryourproxyholder”.Failureto
registertheproxyholderwillresultinthe
proxyholdernotreceivingaControlNumbertovote
duringtheMeetingandwillonlybeingableto
attendasaguestwithoutvotingprivileges.
Votingatthe
Meetingvialive
audiowebcast
IfyouwishtovoteattheMeeting,donot
completeandreturntheproxyform–yourvote
willbetakenandcountedattheMeeting,via
webcast.
Loginonlineat:
meetnow.global/M4UGSLX
Werecommendthatyoulogininatleastone
hourbeforetheMeetingstarts.Youwillneed
yourControlNumbertoaccesstheMeeting.
TovoteattheMeeting,youshouldstrikeoutthe
namesoftheManagementProxyholdersnamedin
thevotinginstructionformsenttoyoubyyour
intermediary,insertyourownnameinthespace
providedonthevotinginstructionform,followall
oftheapplicableinstructionsprovidedbyyour
intermediary
AND
register
yourself
as
a
proxyholder,asdescribedbelow.
Registeryour
proxyholder
To
register
a
third�party
proxyholder,
registeredshareholdersmustvisit:
http://www.computershare.com/Pieridae
by8:30am(MountainTime)onMay24,2022
andprovideComputersharewiththerequested
informationincludingyourHolderID.
Computersharewillprovidethethird�party
proxyholderwithan“invitecode”whichis
requiredtovoteattheMeeting.
Toregisteryourselforathird�partyproxyholder,
non�registeredshareholdersmustvisit:
http://www.computershare.com/Pieridae
by8:30am(MountainTime)onMay24,2022and
provideComputersharewiththerequested
informationincludingyourCUIDwhichisa4�
character
code
used
to
identify
the
financial/participantinstitution.IfyourCommon
Sharesareheldatabrokeragefirmandifyouhave

by�8:30�am�(Mountain�Time)�on�May�24,�2022�and� provide�Computershare�with�the�requested� information�including�your�CUID�which�is�a�4� character� code� used� to� identify� the� financial/participant�institution.�If�your�Common� Shares�are�held�at�a�brokerage�firm�and�if�you�have� received�a�Broadridge�Voting�Instruction�Form,�the� CUID�is�located�on�the�second�page�of�your�Voting

14

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registeredshareholders non�registered(beneficial)shareholders
InstructionForm,topleft�handcornerbesidethe
“ProxyDepositDate”.
Computersharewillprovidetheregistered
proxyholderwithan“invitecode”aftertheproxy
votingdeadlinehaspassed,whichisrequiredto
voteattheMeeting.
Changingyourvote Ifyouvotedbyphoneorinternet,thenvoting Thevotesofaproperlyappointedproxyholderare
againbyphoneorinternetwillrevokeyour notcounteduntiltheproxyholderattendsthe
previousvote. Meeting.Therefore,itwillnotbepossibleforanon�
Ifyoufaxedormailedyourproxy,youcan
revokeyourvoteandprovidenewvoting
registered(beneficial)shareholdertorevoketheir
proxyvote.
instructionsbyfaxormail.Thelettermustbe
signedbyyouoryourauthorizedattorney.If
the
shareholder
is
a
corporation,
the
instructionsmustincludeacorporatesealorbe
signedbyanauthorizedofficerorattorney.
Yourpreviousinstructionswillberevokedas
longas:

thenewvotinginstructionsarereceived
by8:30am(MountainTime)onMay24,
2022,or

youprovidethenewvotinginstructions
inanyotherwaypermittedbylaw.
Ifyouhavefollowedtheprocessforattending
andvotingattheMeetingonline,votingatthe
Meetingonlinewillrevokeyourpreviousproxy.
Moreaboutvoting Whenyousendintheproxyform,bydefaultyouareappointingAlfredSorensenand,inthe
byproxy alternative,DarcyReding,toactasyourproxyholderandvoteonyourbehalf.Theywillvoteyour
CommonSharesaccordingtothevotinginstructionsyouprovideontheproxyform.Ifyoudonot
providevotinginstructions,theywillvoteFORtheresolutionstobevotedonattheMeeting.Theproxy
formconfersdiscretionaryauthorityuponthepersonsnamedthereinwithrespecttoothermatters
whichmayproperlycomebeforetheMeetingoranyadjournmentorpostponementthereof.Asofthe
dateoftheCircular,Managementisnotawareofanysuchamendment,variationorothermatterto
comebeforetheMeeting.
Youalsohavetherighttoappointsomeone elsetorepresentyouattheMeetingoratany
adjournmentorpostponementthereof.Thispersondoesnotneedtobeashareholderofthe
Corporation.Simplywritethatperson’snameintheblankspaceprovidedontheproxyform.That
persondoesnotneedtobeashareholder.Yourvotewillbecountedaslongasthepersonyou
appointattendstheMeetingandvotesonyourbehalf.Ifamendmentsornewitemsarebrought
beforetheMeeting,yourproxyholdercanvoteasheorsheseesfit.

INTEREST�OF�CERTAIN�PERSONS�OR�COMPANIES�IN�MATTERS�TO�BE�ACTED�UPON���

Other�than�as�set�forth�in�this�Circular,�the�management�of�the�Corporation�(the�“ Management ”)�is�not�aware�of�any� material�interest,�direct�or�indirect,�by�way�of�beneficial�ownership�of�securities�or�otherwise,�of�any�person�who�has� been�a�director�or�executive�officer�of�the�Corporation�at�any�time�since�January�1,�2021�(the�beginning�of�the�

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Corporation’s�last�financial�year)�or�any�proposed�nominee�for�election�as�a�director,�or�any�associate�or�affiliate�of� any�of�the�foregoing�persons,�in�any�matter�to�be�acted�upon�at�the�Meeting�other�than�the�election�of�directors�or� the�appointment�of�auditors.��All�the�directors�and�executive�officers�of�the�Corporation�may�receive�incentive�stock� options�pursuant�to�the�Stock�Option�Plans.���

SHAREHOLDER�QUESTIONS�AND�ANSWERS��

Why�is�Pieridae�having�a�virtual�only�Meeting?��

To�continue�to�mitigate�risks�to�the�health�and�safety�of�our�shareholders,�employees,�other�stakeholders�and� communities,�the�Corporation�will�hold�the�Meeting�in�a�virtual�only�format,�which�will�be�conducted� via �live�audio� webcast.�Shareholders�will�have�the�opportunity�to�participate�in�the�Meeting�online�regardless�of�their�geographic� location.��

How�will�Shareholders�be�able�to�participate�at�the�Meeting?��

Registered�Shareholders�and�duly�appointed�third�party�proxyholders�who�participate�at�the�Meeting�online�will�be� able�to�listen�to�the�Meeting,�ask�questions�and�vote,�all�in�real�time,�provided�that�they�are�connected�to�the�internet� and�comply�with�all�of�the�requirements�set�out�below�under�“How�do�I�vote”�and�“How�do�I�participate�at�the� Meeting”.��

Non�Registered�Shareholders�should�have�received�this�Circular,�together�with�either�(a)�the�voting�instruction�form� (or�proxy�authorization�form)�from�your�intermediary�to�be�completed�and�signed�by�them�and�returned�to�the� intermediary�in�accordance�with�the�instructions�provided�by�the�intermediary,�or�(b)�a�form�of�proxy,�which�has� already�been�signed�by�the�intermediary�and�is�restricted�as�to�the�number�of�Common�Shares�beneficially�owned� by�you.�The�voting�instructions,�proxy�authorization�form�or�form�of�proxy�is�to�be�completed�by�you�and�delivered� to�Computershare’s�address:�Attention:�Proxy�Department,�8[th] �floor,�100�University�Avenue,�Toronto,�Ontario�M5J� 2Y1�by�8:30�am�(Mountain�Time)�on�May�24,�2022,�or�by�48�hours�before�the�Meeting�is�reconvened�if�it�was� postponed�or�adjourned�or�by�any�other�manner�permitted�by�law.�To�participate�in,�and�to�vote�during,�the�Meeting,� a�Non�Registered�Shareholder�must�complete,�sign,�and�return�the�voting�instruction�form�in�accordance�with�the� directions�provided�and�a�form�of�proxy�giving�the�right�to�participate�and�vote,�will�be�forwarded�to�the�Non� Registered�Shareholder.�

Non�Registered�Shareholders�who�have�not�duly�appointed�themselves�as�proxyholders�may�still�participate�in�the� Meeting�as�a�“guest”.�Guests�will�be�able�to�listen�to�the�Meeting�but�will�not�be�able�to�ask�questions�or�vote�at�the�� Meeting.�See�“How�do�I�vote”�and�“How�do�I�participate�at�the�Meeting”�below.��

Who�is�soliciting�my�proxy?���

The�Management�of�Pieridae�is�soliciting�your�proxy�for�use�at�the�Meeting�to�be�held�on�May�26,�2022.���

Will�the�financial�statements�of�the�Corporation�be�presented�at�the�Meeting?���

The�financial�statements�for�the�year�ended�December�31,�2021,�together�with�the�auditors’�report�on�these� statements,�will�be�presented�at�the�Meeting�as�the�first�order�of�business.���

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On�what�will�I�be�asked�to�vote?���

You�will�be�asked�to�vote�on�the�following:���

  • (a) to�fix�the�number�of�directors�of�the�Corporation�to�be�elected�as�8;��

  • (b) to�elect�the�directors�of�the�Corporation�for�the�ensuing�year;���

  • (c) to�appoint�Ernst�&�Young�LLP�as�the�auditors�of�the�Corporation�for�the�ensuing�year�and�authorize�the� board�of�directors�to�fix�their�remuneration;���

  • (d) to�consider�and,�if�deemed�advisable,�to�pass�an�ordinary�resolution�approving�the�amended�and�restated� stock�option�plan�(the�text�of�which�is�set�forth�in�attached�Schedule�A);��

  • (e) to�accept�our�approach�to�executive�compensation;�and��

  • (f) to�transact�any�other�business�which�may�be�properly�brought�before�the�Meeting.���

How�will�these�matters�be�decided�at�the�Meeting?���

A�majority�of�votes�cast�by�the�Shareholders,�either�by�proxy�or�in�person,�will�constitute�approval�of�each�of�the� matters�specified�in�this�Circular.���

How�many�votes�do�I�have?���

You�will�have�one�vote�for�each�Common�Share�that�you�hold�at�the�close�of�business�on�the�Record�Date�(April�12,� 2022).���

How�many�Common�Shares�are�eligible�to�vote?���

At�the�close�of�business�on�the�Record�Date,�there�were�157,681,871 Common�Shares�issued�and�outstanding.�Each� Common�Share�held�by�you�at�that�Record�Date�entitles�you�to�one�vote.���

How�do�I�vote?���

If�you�are�eligible�to�vote�and�your�Common�Shares�are�registered�in�your�name�at�the�close�of�business�on�the�Record� Date,�you�can�vote�your�Common�Shares:��

  • (a) by�completing�a�ballot�online�during�the�Meeting,�as�further�described�below�under�the�heading� “How�do�I� participate�at�the�Meeting” ;�or��

  • (b) by�proxy,�as�further�described�below�under�the�heading� “How�can�a�Registered�Shareholder�vote�by�proxy” ;� or��

  • (c) by�phone�by�calling�the�toll�free�number�listed�on�the�form�of�proxy�from�a�touch�tone�phone,�entering�your�� Control�Number�listed�on�the�form�of�proxy�and�following�the�voting�instructions.���

In�order�to�vote�the�Common�Shares�that�you�acquired�after�the�Record�Date,�you�must,�no�later�than�the� commencement�of�the�Meeting:���

  • (d) request�that�the�Corporation�add�your�name�to�the�list�of�voters;�and���

  • (e) properly�establish�ownership�of�the�Common�Shares�or�produce�properly�endorsed�share�certificates� evidencing�that�the�Common�Shares�have�been�transferred�to�you.���

17

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If�your�Common�Shares�are�registered�in�the�name�of�an�intermediary,�such�as�a�bank,�trust�company,�securities� broker�or�other�financial�institution,�(an�“ Intermediary ”)�please�see�the�instructions�below�under�the�heading� “How� can�a�Non�Registered�Shareholder�vote?” .��

How�do�I�participate�in�the�Meeting?��

Pieridae�is�holding�the�Meeting�in�a�virtual�only�format,�which�will�be�conducted� via �live�audio�webcast.�� Consequently,�Shareholders�will�not�be�able�to�attend�the�Meeting�in�person.��

Participating�in�the�Meeting�online�enables�Registered�Shareholders�and�duly�appointed�proxyholders,�including� Non�Registered�Shareholders�who�have�duly�appointed�themselves�as�proxyholder,�to�participate�at�the�Meeting� and�ask�questions,�all�in�real�time.�Registered�Shareholders�and�duly�appointed�proxyholders�can�vote�at�the� appropriate�times�during�the�Meeting.��

Guests,�including�Non�Registered�Shareholders�who�have�not�duly�appointed�themselves�as�proxyholder,�may�log�in� to�the�Meeting�as�a�Guest,�as�set�out�below,�and�may�listen�to�the�Meeting�but�will�not�be�able�to�vote.����

Log�in�online�at�meetnow.global/M4UGSLX�and�proceed�based�on�the�following�instructions.��

InstructionsforRegisteredShareholdersand InstructionsforGuests
Proxyholders
Registeredshareholders: Click“Guest”andthencompletetheonline
form.

The�Control�Number�is�located�on�the�form�of�proxy� or�in�the�email�notification�you�received�is�your� Control�Number.��

Duly�appointed�proxyholders:���

Computershare�will�provide�the�proxyholder�with�an� “invite�code”�by�e�mail�after�the�proxy�voting� deadline�has�passed�and�the�proxyholder�has�been� duly�appointed�AND�has�registered�as�described� under�the�heading�“ Appointment�of�a�third�party�as� proxy ”�above.��

If�you�participate�in�the�Meeting�online,�it�is�important�that�you�are�connected�to�the�internet�at�all�times�during�the� Meeting�in�order�to�vote�when�balloting�commences.�It�is�your�responsibility�to�ensure�connectivity�for�the�duration� of�the�Meeting.�You�should�allow�ample�time�to�check�into�the�Meeting�online�and�complete�the�related�procedure� and�we�recommend�that�you�log�in�at�least�thirty�minutes�before�the�Meeting�is�scheduled�to�begin.��

How�can�a�Non�Registered�Shareholder�vote?���

If�your�Common�Shares�are�not�registered�in�your�name,�they�will�be�held�by�an�Intermediary�such�as�a�bank,�trust� company,�securities�broker�or�other�financial�institution.� Each�Intermediary�has�its�own�procedures�that�should�be� carefully�followed�by�Non�Registered�Shareholders�to�ensure�that�their�Common�Shares�are�voted�at�the�Meeting,� including�when�and�where�the�proxy�or�voting�instruction�form�(or�proxy�authorization�form)�is�to�be�delivered.��

18

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How�can�a�Shareholder�vote�by�proxy?��

The�following�applies�to�Shareholders�who�wish�to�appoint�someone�as�their�proxyholder�other�than�the� Management�Proxyholders�named�in�the�form�of�proxy�or�voting�instruction�form.�This�includes�Non�Registered�� Shareholders�who�wish�to�appoint�themselves�as�proxyholder�to�participate�and�vote�at�the�Meeting.��

Shareholders�who�wish�to�appoint�someone�other�than�the�Management�Proxyholders�as�their�proxyholder�to� participate�in,�and�to�vote�their�Common�Shares�during,�the�Meeting�as�their�proxy�(including�Non�Registered� Shareholders�who�wish�to�appoint�themselves�as�their�proxyholder�to�participate�in,�and�to�vote�their�Common� Shares�during,�the�Meeting)�MUST�submit�their�form�of�proxy�or�voting�instruction�form,�as�applicable,�appointing� that�person�as�proxyholder�AND�register�that�proxyholder�online,�as�described�below.�Registering�your�proxyholder� is�an�additional�step�to�be�completed�AFTER�you�have�submitted�your�form�of�proxy�or�voting�instruction�form.� Failure�to�register�the�proxyholder�will�result�in�the�proxyholder�not�receiving�a�Control�Number�that�is�required�to� vote�at�the�Meeting.��

Step�1.���Submit�your�form�of�proxy�or�voting�instruction�form:���

To�appoint�someone�other�than�the�Management�Proxyholders�as�proxyholder,�insert�that�person’s�full�legal�name� in�the�blank�space�provided�in�the�form�of�proxy�or�voting�instruction�form�(if�permitted)�and�follow�the�instructions� for�submitting�such�form�of�proxy�or�voting�instruction�form.�This�must�be�completed�before�registering�such� proxyholder,�which�is�an�additional�step�to�be�completed�once�you�have�submitted�your�form�of�proxy�or�voting� instruction�form.��

If�you�are�a�Non�Registered�Shareholder�and�wish�to�vote�at�the�Meeting,�you�have�to�insert�your�own�name�in�the� space�provided�on�the�voting�instruction�form�sent�to�you�by�your�Intermediary,�follow�all�of�the�applicable� instructions�provided�by�your�intermediary�AND�register�yourself�as�your�proxyholder,�as�described�below.�By�doing� so,�you�are�instructing�your�Intermediary�to�appoint�you�as�proxyholder.�It�is�important�that�you�comply�with�the� signature�and�return�instructions�provided�by�your�Intermediary.�Please�also�see�further�instructions�above�under� the�heading�“How�do�I�participate�at�the�Meeting”.��

If�you�are�a�Non�Registered�Shareholder�located�in�the�U.S.A.�and�wish�to�vote�at�the�Meeting�or,�if�permitted,� appoint�a�third�party�as�your�proxyholder,�in�addition�to�the�steps�described�above�under�“How�do�I�participate�at� the�Meeting”,�you�must�obtain�a�valid�legal�proxy�from�your�Intermediary.�Follow�the�instructions�from�your� Intermediary�included�with�the�legal�proxy�form�and�the�voting�information�form�sent�to�you�or�contact�your� Intermediary�to�request�a�legal�proxy�form�or�a�legal�proxy�if�you�have�not�received�one.�After�obtaining�a�valid�legal� proxy�from�your�Intermediary,�you�must�then�submit�such�legal�proxy�to�Computershare.�Requests�for�registration� from�Non�Registered�Shareholders�located�in�the�U.S.A.�that�wish�to�vote�at�the�Meeting�or,�if�permitted,�appoint�a� third�party�as�their�proxyholder�must�be�sent�by�e�mail�or�by�courier�to:�[email protected]�(if�by� email),�or�Computershare,�Attention:�Proxy�Dept.,�8th�Floor,�100�University�Avenue,�Toronto,�Ontario�M5J�2Y1,� Canada�(if�by�courier),�and�in�both�cases,�must�be�labeled�“Legal�Proxy”�and�received�no�later�than�the�voting�deadline� of�8:30�a.m.�(Mountain�Time)�on�May�24,�2022.��

Step�2.���Register�your�proxyholder:���

To�register�a�third�party�proxyholder,�shareholders�must�visit�www.computershare.com/Pieridae�by�8:30�a.m.� (Mountain�Time)�on�May�24,�2022�and�provide�Computershare�with�the�required�proxyholder�contact�information� so�that�Computershare�may�provide�the�proxyholder�with�a�Control�Number�via�email.�Without�a�Control�Number,� proxyholders�will�not�be�able�to�vote�at�the�Meeting�but�will�be�able�to�participate�as�a�guest.�

19

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How�will�my�proxy�be�voted?���

On�the�form�of�proxy,�you�can�indicate�how�you�would�like�your�proxyholder�to�vote�your�Common�Shares�for�any� matter�put�to�a�vote�at�the�Meeting�and�on�any�ballot�that�may�be�called�for,�and�your�Common�Shares�will�be� voted�accordingly.���

If�you�do�not�indicate�how�you�want�your�Common�Shares�to�be�voted,�the�Management�Proxyholders�named�in�the� form�of�proxy�intend�to�vote�your�Common�Shares�in�the�following�manner:��

FOR the�fixing�of�the�number�of�the�number�directors�of�the�Corporation�to�be�elected�as�8;� FOR the�election�of�Management’s�nominees�for�directors;��

FOR the�appointment�of�Management’s�nominee,�Ernst�&�Young�LLP,�as�the�auditors�and�for�the�authorization� of�the�directors�to�fix�their�remuneration;���

FOR the�approval�of�the�amended�and�restated�stock�option�plan�(the�text�of�which�is�set�forth�in�attached� Schedule�A);�

FOR� our�approach�to�executive�compensation,�as�described�in�this�circular;�and� FOR� transacting�any�other�business�which�may�be�properly�brought�before�the�Meeting.��

What�if�I�want�to�revoke�my�proxy?���

If�you�are�a�registered�shareholder�you�can�revoke�your�voting�instructions�by�sending�us�a�notice�in�writing�(from� you�or�a�person�authorized�to�sign�on�your�behalf).�This�request�must�be�delivered�to�Computershare’s�address:� Attention:�Proxy�Department,�8th�floor,�100�University�Avenue,�Toronto,�Ontario�M5J�2Y1�by�8:30�am�(Mountain� Time)�on�May�24,�2022�or�by�48�hours�before�the�Meeting�is�reconvened�if�it�was�postponed�or�adjourned�or�by�any� other�manner�permitted�by�law.�Alternatively,�if�you�have�followed�the�process�for�attending�and�voting�at�the� Meeting�online,�voting�at�the�Meeting�online�will�revoke�your�previous�proxy.���

If�you�are�a�beneficial�shareholder,�contact�your�intermediary�to�find�out�how�to�change�or�revoke�your�voting� instructions�and�the�timing�requirements.�Intermediaries�may�set�deadlines�for�the�receipt�of�revocation�notices� that�are�farther�in�advance�of�the�Meeting�than�those�set�out�above�and,�accordingly,�any�such�revocation�should� be�completed�well�in�advance�of�the�deadline�prescribed�in�the�proxy�card�or�voting�instruction�form�to�ensure�it�is� given�effect�at�the�Meeting.���

How�are�proxy�solicited?���

The�solicitation�of�proxies�will�be�primarily�by�mail;�however,�proxies�may�be�solicited�personally�or�by�telephone�by� directors,�officers�and�regular�employees�of�the�Corporation.�The�cost�of�this�solicitation�will�be�paid�by�the� Corporation.���

How�are�Meeting�Materials�delivered�to�Shareholders?���

Meeting�Materials�are�sent�to�Registered�Shareholders�directly.�Meeting�Materials�are�sent�to�Intermediaries�to�be� forwarded�to�all�Non�Registered�Shareholders.�If�you�are�a�Non�Registered�Shareholder,�and�the�Corporation�or�its� agent�has�sent�these�materials�directly�to�you,�your�name�and�address�and�information�about�your�holdings�of� securities�have�been�obtained�in�accordance�with�applicable�securities�regulatory�requirements�from�the� Intermediary�holding�on�your�behalf.�The�Corporation�pays�the�cost�of�delivery�of�Meeting�Materials�for�all� Registered�Shareholders�and�Non�Registered�Shareholders,�including�to�Intermediaries�for�delivery�to�objecting�Non� Registered�Shareholders.���

20

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BUSINESS�OF�THE�MEETING

The�following�matters�will�be�presented�during�the�Meeting�for�consideration�by�the�Shareholders.��

As�of�the�Record�Date,�no�director�of�the�Corporation�has�informed�management�in�writing�that�he�or�she�intends�to� oppose�any�action�that�is�intended�to�be�taken�by�Management�at�the�Meeting.���

RECEIVING�THE�ANNUAL�REPORT���

A�copy�of�the�annual�report�of�the�Corporation�(the�“ Annual�Report ”),�including�the�consolidated�financial�statements� of�the�Corporation�for�the�year�ended�December�31,�2021,�the�report�of�auditors�thereon�and�the�related� management�discussion�and�analysis�(“ MD&A ”),�will�be�sent�under�a�separate�cover�to�all�Registered�Shareholders� and�to�those�Non�Registered�Shareholders�who�have�requested�a�copy�of�the�Annual�Report.���

The�Annual�Report�and�other�information�concerning�the�Corporation�is�available�on�the�Corporation’s�website�at� www.pieridaeenergy.com�and�under�the�Corporation’s�profile�on�SEDAR�at�www.sedar.com.���

FIXING�THE�NUMBER�OF�DIRECTORS�TO�BE�ELECTED���

It�is�proposed�that�the�number�of�directors�to�be�elected�at�the�Meeting�of�the�Shareholders�be�fixed�at�eight�(8).���

The�text�of�the�proposed�resolution�is�set�out�below.���

“IT�IS�RESOLVED�as�an�ordinary�resolution�that�the�number�of�directors�to�be�elected�at�the�annual� and�special�meeting�of�shareholders�of�Pieridae�Energy�Limited�held�on�May� 26 ,�2022�be�hereby�fixed� at�eight�(8)”��

The�Board�recommends�that�Shareholders�vote�FOR�this�resolution.���

In�the�absence�of�a�contrary�instruction�or�if�no�choice�is�specified�in�the�proxy�with�respect�to�the�following�matter,� the�Management�Proxyholders�intend�to�vote�FOR�the�resolution�fixing�the�number�of�directors�to�be�elected�at�the� Meeting�by�Shareholders�at�eight.���

ELECTION�OF�DIRECTORS���

The�members�of�the�board�of�directors�of�the�Corporation�(the�“ Board ”)�are�elected�at�each�annual�meeting�of� Shareholders�to�hold�office�until�the�conclusion�of�the�next�such�annual�meeting�of�Shareholders�unless�prior�to�that� meeting,�the�particular�director�resigns,�or�the�position�becomes�vacant�for�any�other�reason.�In�such�an�event,�the� bylaws�of�the�Corporation�(the�“ Bylaws ”)�permit�the�Board�to�fill�such�vacancy�subject�to�the�provisions�of�the� Canada�Business�Corporations�Act ,�R.S.C.�1985,�c�C�44,�as�amended,�(the�“ CBCA ”).��In�addition,�the�articles�of�the� Corporation�(the�“ Articles ”)�permit�the�Board�to�appoint�one�or�more�additional�directors�of�the�Corporation�who� shall�hold�office�for�a�term�expiring�not�later�than�the�close�of�the�next�annual�meeting�of�Shareholders�but�the�total� number�of�directors�so�appointed�may�not�exceed�one�third�of�the�number�of�directors�elected�at�the�previous� annual�meeting�of�Shareholders.����

21

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Mark�Horrox�resigned�from�his�position�as�director�on�August�11,�2021�due�to�the�potential�for�a�conflict�of�interest� between�Mr.�Horrox’s�employer�and�the�Corporation�related�to�the�strategic�review�process�undertaken�by�the� Special�Review�Committee,�the�details�of�which�can�be�found�on�page�46�–� Information�Concerning�Director� Compensation .�Mr.�Horrox� was�the�representative�of�Third�Eye�Capital�Corporation�pursuant�to�an�agreement� entered�into�among�Third�Eye�Capital�Corporation,�Erikson�National�Energy�Inc.�and�the�Corporation�and�became�a� director�in�2019.��In�compliance�with�the�by�laws,�the�Board�determined�not�to�replace�this�position�at�that�time.� The�Corporation�wishes�the�thank�Mr.�Horrox�for�his�contributions�during�his�time�as�director.���

Myron�Tétreault,�Charle�Gamba�and�Kjell�Pedersen�will�not�be�standing�for�re�election�to�the�Board.�Mr.�Tétreault� has�been�a�director�since�2009,�Mr.�Pedersen�since�2018�and�Mr.�Gamba�since�2019.�The�Corporation�would�like�to� take�the�opportunity�to�thank�Mr.�Tétreault,�Mr.�Pedersen�and�Mr.�Gamba�for�their�contributions�during�their�time� as�directors.��

The�Articles�allow�for�a�minimum�of�three,�and�a�maximum�of�eleven�directors�of�the�Corporation.�The�current� approved�number�of�directors�of�the�Corporation�is�eight[3] .�The�eight�proposed�nominees�for�election�to�the�Board� (collectively,�the�“ Nominees ”�and�each,�a�“ Nominee ”)�being:���

NAMEOFNOMINEE
DATEFIRSTELECTEDORAPPOINTED
ASADIRECTOROFTHECORPORATION
AlfredSorensen May29,2012
CharlesBoulanger December11,2012
AndrewJudson June12,2015
KirenSingh May26,2020
RichardCouillard newdirectornominee
PatriciaMcLeodQ.C. newdirectornominee
GailHardingQ.C. newdirectornominee
DougDreisinger newdirectornominee

TABLE 1

Except�for�Alfred�Sorensen,�all�of�the�other�Nominees�are�considered�to�be�independent.����

Please�refer�to�the�text�under�the�heading�“ Information�Concerning�Nominees�for�Election�to�the�Board ”�for�particular� biographical�and�other�information�concerning�each�Nominee�and�to�the�text�under�the�heading�“ INFORMATION� CONCERNING�GOVERNANCE ”�for�a�further�discussion�of�the�independence�of�the�Nominees.��

Each�Nominee�who�is�elected�as�a�director�will�hold�that�office�until�the�conclusion�of�the�next�annual�meeting�of�the� Corporation�or�until�their�resignation,�if�sooner.���

In�the�absence�of�a�contrary�instruction�or�if�no�choice�is�specified�in�the�proxy�with�respect�to�the�following�matter,� the�Management�Proxyholders�intend�to�vote�FOR�the�fixing�of�the�number�of�directors�to�be�elected�at�the�Meeting� at�eight�and�FOR�the�election�as�directors�of�the�Nominees�whose�names�are�set�forth�above.��

3 Due�to�Mr.�Horrox’s�resignation�the�number�of�directors�sitting�on�the�Board�is�currently�seven.�See�page�20�for�further�information.�

22

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APPOINTMENT�OF�AUDITORS���

Ernst�&�Young�LLP�has�been�the�Corporation’s�auditors�since�2014.�The�Board�proposes�to�re�appoint�Ernst�&�Young�� LLP, chartered�professional�accountants,�as�auditors�of�the�Corporation�at�remuneration�to�be�fixed�by�the�Board.�� The�proposed�resolution�is�set�out�below.���

“IT�IS�RESOLVED�as�an�ordinary�resolution�that�Ernst�&�Young�LLP�be�hereby�appointed�auditors�of� Pieridae�Energy�Limited�to�hold�office�until�the�close�of�the�next�annual�meeting�of�shareholders�of� the�corporation,�at�such�remuneration�as�may�be�fixed�by�the�corporation’s�board�of�directors.”��

The�Board�recommends�that�Shareholders�vote�FOR�this�resolution.����

In�the�absence�of�a�contrary�instruction�or�if�no�choice�is�specified�in�the�proxy�with�respect�to�the�following�matter,� the�Management�Proxyholders�intend�to�vote�FOR�the�appointment�of�Ernst�&�Young�LLP�as�auditors�of�the� Corporation�to�hold�office�until�the�next�annual�meeting�of�Shareholders�or�until�a�successor�is�appointed�and� authorizing�the�Board�to�fix�the�remuneration�of�the�auditors.���

External�Auditor�Service�Fees���

Information�regarding�the�amount�and�nature�of�the�fees�that�were�paid�by�the�Corporation�to�its�external�auditors� is�disclosed�on�page�37�of�the�annual�information�form�of�the�Corporation�for�the�year�ended�December�31,�2021,�a� copy�of�which�can�be�found�under�the�Corporation’s�profile�on�SEDAR�at�www.sedar.com�and�which�was�filed�on� SEDAR�on�March�24,�2022.��

PROPOSED�APPROVAL�OF�THE�AMENDED�AND�RESTATED�STOCK�OPTION�PLAN���

The�Corporation�has�made�further�amendments�to�the�stock�option�plan�that�was�approved�by�Shareholders�at�the� last�Annual�and�Special�Meeting�of�Shareholders�on�May�27,�2021.��The�further�amended�and�restated�plan�is�in�the� form�attached�hereto�as�Schedule�A�(the�“Amended�and�Restated�Stock�Option�Plan”),�as�approved�and�adopted�by� the�Board�on�May�19,�2021�and�posted�on�SEDAR�on�May�21,�2021.��

The�further�amendments�to�the�Amended�and�Restated�Stock�Option�Plan�were�occasioned�following�a�review�by�a� leading�proxy�advisory�firm�of�the�2021�Management�Information�Circular.��All�legitimate�concerns�of�shareholders� or�noted�deficiencies�in�best�practice�offered�by�leading�proxy�advisory�firms�are�taken�seriously�by�the�Corporation.� As�such,�having�duly�considered�the�concerns�identified,�the�Board�approved�and�adopted�the�proposed�revisions� for�submission�to�Shareholders.���

The�amendments,�as�contained�in�Schedule�A�of�the�Circular,�are�the�inclusion�of�a�new�section�2.7�and�a�fully�revised� section�5.3.�The�first�revision�addressed�the�recommendation�that�it�is�considered�more�appropriate�that�non� employee�director�participation�limits�be�introduced,�as�opposed�to�a�discretionary�participation,�as�was�the�policy’s� previous�basis.�The�second�revision�addressed�the�concern�that�the�plan�did�not�sufficiently�limit�the�ability�of�the� Board�to�amend�the�plan�without�shareholder�approval.�The�Board�fully�accepted�and�adopted�the�revisions�to�reflect� corporate�best�practice.���

The�Toronto�Stock�Exchange[4] �does�not�require�the�Corporation�to�seek�Shareholder�approval�for�the�amendment� introducing�non�employee�director�participation�limits�as�such�amendments�are�permitted�under�the�rules�and� under�the�Corporation’s�current�plan.��However,�the�Corporation�has�elected�to�submit�both�amendments�to� Shareholders�for�their�approval.��To�be�effective,�the�resolution�respecting�the�amended�and�restated�stock�option�

4�Security�Based�Compensation�Policy�

23

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plan�(the�“Stock�Option�Plan�Resolution”)�must�be�approved�by�a�majority�of�the�votes�cast�by�the�Shareholders� present�or�represented�by�proxy�at�the�Meeting.��The�text�of�the�Stock�Option�Plan�Resolution�is�set�out�below.����

“IT�IS�RESOLVED�as�an�ordinary�resolution�that:��

  • a. the�amendments�to�the�provisions�governing�non�employee�director�participation�limits,�which�were� approved�by�the�board�on�May�19,�2021,�the�text�of�which�is�reproduced�in�Schedule�A�to�the� Management�Information�Circular�dated�April�12,�2022,�be�accepted�and�adopted;�

  • b. the�amendments�to�the�provisions�governing�amendments�requiring�shareholder�approval,�which�were� approved�by�the�board�on�May�19,�2021,�the�text�of�which�is�reproduced�in�Schedule�A�to�the� Management�Information�Circular�dated�April�12,�2022,�be�accepted�and�adopted;�and

  • c. any�director�or�officer�of�Pieridae�Energy�Limited�is�hereby�authorized�to�execute�and�deliver,�whether� under�corporate�seal�or�otherwise,�any�agreements,�instruments,�notices,�consents,�acknowledgements,� certificates�and�other�documents�(including�any�documents�required�under�applicable�laws�or�regulatory� policies),�and�to�perform�and�do�all�such�other�acts�and�things,�as�any�such�director�or�officer�in�his�or� her�discretion�may�consider�to�be�necessary�or�advisable�from�time�to�time�in�order�to�give�effect�to�this� resolution.”��

The�Board�recommends�that�Shareholders�vote�FOR�the�approval�of�the�Stock�Option�Plan�Resolution.����

In�the�absence�of�a�contrary�instruction�or�if�no�choice�is�specified�in�the�proxy�with�respect�to�the�following�matter,� the�Management�Proxyholders�intend�to�vote�FOR�the�Stock�Option�Plan�Resolution.����

ADVISORY�VOTE�ON�EXECUTIVE�COMPENSATION�(SAY�ON�PAY)�

The�Corporation�is�pleased�to�provide�shareholders,�from�this�year�forward,�the�opportunity�to�vote�on�a�non�binding� advisory�resolution�to�accept�or�reject�our�approach�to�executive�compensation�as�more�particularly�described�in� this�Circular.���

The�Board�believes�its�executive�compensation�program�aligns�the�interests�of�the�executives�and�employees�with� those�of�the�Corporation’s�shareholders�through�our�commitment�to�providing�an�equitable�yet�market�competitive� compensation�program�that�will�attract,�motivate,�retain�and�reward�a�diverse,�qualified�and�dedicated�employee� cohort�at�all�levels�within�the�Corporation.�Please�review�“ INFORMATION�CONCERNING�EXECUTIVE�COMPENSATION ”� before�voting�on�this�matter.��

The�proposed�resolution�is�set�out�below.�

  • IT�IS�RESOLVED,�on�an�advisory�basis�and�not�to�diminish�the�role�and�responsibilities�of�the�Board� of�Directors,�that�the�shareholders�accept�the�approach�to�executive�compensation�disclosed�in�the� Management�Information�Circular�delivered�in�advance�of�the�2022�annual�and�special�meeting�of� shareholders. ”�

The�Board�recommends�that�Shareholders�vote�FOR�the�advisory�vote�to�accept�our�approach�to�executive� compensation.���

In�the�absence�of�a�contrary�instruction�or�if�no�choice�is�specified�in�the�proxy�with�respect�to�the�following�matter,� the�Management�Proxyholders�intend�to�vote�FOR�the�advisory�vote�to�accept�our�approach�to�executive� compensation.���

24

==> picture [108 x 37] intentionally omitted <==

As�this�is�an�advisory�vote,�the�results�are�not�binding�upon�the�Board,�however�the�Board�will�report�on�and�take� into�account�the�results�when�considering�compensation�in�the�future.��

INFORMATION�CONCERNING�NOMINEES�FOR�ELECTION�TO�THE�BOARD�

BIOGRAPHICAL�INFORMATION�REGARDING�THE�NOMINEES���

Alfred�Sorensen�—�Director�and�Chief�Executive�Officer�

NameofNominee:AlfredSorensen
Credentials:B.Comm.,CPA,CA
Age:61
Residence:Calgary,Alberta,Canada
Non�Independent
Mr.SorensenhasbeenthechiefexecutiveofficerofPieridaeEnergyLimited
sinceitsfoundingin2012.
HeobtainedaBachelorofCommercedegreefromtheUniversityofAlberta
in1983,qualifiedasacharteredaccountant(CA)in1987andiscurrentlya
charteredprofessionalaccountant(CPA).
Mr.Sorensenisaleadingentrepreneurintheenergyindustrywithover30
yearsofCanadianandinternationalexperience.Mr.Sorensenservedasthe
chiefexecutiveofficerofCanadianSpiritResourcesfrom2013to2015.
Mr.SorensenhasbeenthechiefexecutiveofficerofPieridaeEnergyLimited
sinceitsfoundingin2012.
HeobtainedaBachelorofCommercedegreefromtheUniversityofAlberta
in1983,qualifiedasacharteredaccountant(CA)in1987andiscurrentlya
charteredprofessionalaccountant(CPA).
Mr.Sorensenisaleadingentrepreneurintheenergyindustrywithover30
yearsofCanadianandinternationalexperience.Mr.Sorensenservedasthe
chiefexecutiveofficerofCanadianSpiritResourcesfrom2013to2015.
Mr.SorensenhasbeenthechiefexecutiveofficerofPieridaeEnergyLimited
sinceitsfoundingin2012.
HeobtainedaBachelorofCommercedegreefromtheUniversityofAlberta
in1983,qualifiedasacharteredaccountant(CA)in1987andiscurrentlya
charteredprofessionalaccountant(CPA).
Mr.Sorensenisaleadingentrepreneurintheenergyindustrywithover30
yearsofCanadianandinternationalexperience.Mr.Sorensenservedasthe
chiefexecutiveofficerofCanadianSpiritResourcesfrom2013to2015.
Boardmembershipsofotherpubliccorporations:none
Votingresultsat2021annualmeeting:
For:64,403,146(99.90%)
Withheld:67,623(0.10%)
DirectorsinceMay29,2012
CurrentlyholdspositionofChiefExecutiveOfficer
Boardmeetingattendance: 15outof15
NumberofCommonSharesbeneficiallyowned,controlledor
directedontheRecordDate:12,299,053
Mr.Sorensendidnotserveonanycommitteesof
theBoardduring2021.

Charles�Boulanger�—�Director���

NameofNominee:CharlesBoulanger

Credentials:B.Sc.A.,MechanicalEngineering
Age:64
Residence:QuebecCity,Quebec,Canada

Independent
Mr.BoulangeristhechiefexecutiveofficerofLeddartechInc.,aprivate
companythatoffersuniqueADAS(AdvancedDriverAssistanceSystem)
andAD(autonomousdriving)sensingandperceptiontechnologies.Heis
alsothepresidentofMoodyManagementInc.,aprivateinvestmentfirm.
Mr.Boulangerhasover35yearsofexperienceinseniormanagement
positionsinseveralindustrialsectorswithcompaniessuchShellCanada
Limited,asubsidiaryofRoyalDutchShell,IrvingOil,asubsidiaryofIrving
GroupofCompanies,GSIEnvironnementInc.andProlabTechnolubInc.
HecurrentlysitsontheboardsofChimieParachems.e.c.,andLeddarTech
Inc.
Mr.BoulangerearnedadegreeinmechanicalengineeringfromUniversité
Lavalin1981andgraduatedfromtheseniormanagementprogramatthe
InternationalCenterforResearchandStudiesinManagement(CIREM)in
1990.
Mr.BoulangeristhechiefexecutiveofficerofLeddartechInc.,aprivate
companythatoffersuniqueADAS(AdvancedDriverAssistanceSystem)
andAD(autonomousdriving)sensingandperceptiontechnologies.Heis
alsothepresidentofMoodyManagementInc.,aprivateinvestmentfirm.
Mr.Boulangerhasover35yearsofexperienceinseniormanagement
positionsinseveralindustrialsectorswithcompaniessuchShellCanada
Limited,asubsidiaryofRoyalDutchShell,IrvingOil,asubsidiaryofIrving
GroupofCompanies,GSIEnvironnementInc.andProlabTechnolubInc.
HecurrentlysitsontheboardsofChimieParachems.e.c.,andLeddarTech
Inc.
Mr.BoulangerearnedadegreeinmechanicalengineeringfromUniversité
Lavalin1981andgraduatedfromtheseniormanagementprogramatthe
InternationalCenterforResearchandStudiesinManagement(CIREM)in
1990.
Boardmembershipsofotherpubliccorporations:none
Votingresultsat2021annualmeeting:
For:64,389,544(99.87%)
DirectorsinceDecember11,2012
ThetermofofficewillexpireonMay26,2022

25

==> picture [108 x 37] intentionally omitted <==

Withheld:81,225(0.13%) Boardmeetingattendance: 15outof15
NumberofCommonSharesbeneficiallyowned,controlledor
directedontheRecordDate:352,795

AuditCommitteemeeting
attendance:
4outof4
Reserves&HSECommittee
meetingattendance:
3outof4
  • Andrew�Judson�—�Director���
NameofNominee:AndrewJudson

Credentials:B.A.,M.B.A.
Age:54
Residence:Calgary,Alberta,Canada

Independent
Mr.JudsonisadirectorofCondorPetroleumInc.,apublicCanadian
companyoperatingoilandgasdevelopmentsinTurkeyandKazakhstan.
Mr.JudsonalsoservesasaSeniorAdvisorforFortisCapitalAdvisors,a
partnerownedinvestmentbank.PreviouslyMr.JudsonwasaManaging
DirectorofCamcorPartnersInc.
Mr.Judsonhasmorethan25yearsofexperienceinCanadianenergy
capitalmarketsandhasadvisedsomeofthelargestinstitutionalinvestors
inCanada,theU.S.A.andEuropeonenergyinvestments.
Mr.JudsonisadirectorofCondorPetroleumInc.,apublicCanadian
companyoperatingoilandgasdevelopmentsinTurkeyandKazakhstan.
Mr.JudsonalsoservesasaSeniorAdvisorforFortisCapitalAdvisors,a
partnerownedinvestmentbank.PreviouslyMr.JudsonwasaManaging
DirectorofCamcorPartnersInc.
Mr.Judsonhasmorethan25yearsofexperienceinCanadianenergy
capitalmarketsandhasadvisedsomeofthelargestinstitutionalinvestors
inCanada,theU.S.A.andEuropeonenergyinvestments.
Mr.JudsonisadirectorofCondorPetroleumInc.,apublicCanadian
companyoperatingoilandgasdevelopmentsinTurkeyandKazakhstan.
Mr.JudsonalsoservesasaSeniorAdvisorforFortisCapitalAdvisors,a
partnerownedinvestmentbank.PreviouslyMr.JudsonwasaManaging
DirectorofCamcorPartnersInc.
Mr.Judsonhasmorethan25yearsofexperienceinCanadianenergy
capitalmarketsandhasadvisedsomeofthelargestinstitutionalinvestors
inCanada,theU.S.A.andEuropeonenergyinvestments.
Boardmembershipsofotherpubliccorporations:CondorPetroleumInc.
Votingresultsat2021annualmeeting:
For:64,249,014(99.66%)
Withheld:221,755(0.34%)
DirectorsinceJune12,2015
ThetermofofficewillexpireonMay26,2022
Boardmeetingattendance: 14outof15
NumberofCommonSharesbeneficiallyowned,controlledor
directedontheRecordDate:332,697
AuditCommittee
meetingattendance:
4outof4
Governance&Compensation
Committeemeetingattendance5:
2outof2
Nomination&Compensation
Committeeattendance6:
2outof2
SpecialReviewCommittee
meetingattendance:
26of27

Kiren�Singh�—�Director���

NameofNominee:KirenSingh

Credentials:B.Comm.,MBA,CFA,CRM,
ICD.D
Age:57
Residence:Canmore,Alberta,Canada

Independent
Ms.Singhisafinancialexecutiveandcorporatedirector.Ms.Singhserved
asChiefFinancialOfficer,VicePresidentRiskManagementandTreasurer
duringher30�yearcareerintheenergysectorwheresheledand
participatedinmorethan$4.5billioncorporatefinancingsand$11billionof
globalprojectfinancingsandinsuranceprogramsrepresentingprivately
heldandpubliclytradedCanadian(TorontoStockExchange)andUS(New
YorkStockExchange)corporationsincludingGibsonEnergyInc.,OPTI
CanadaInc.,ValueCreationInc.,ExxonMobilCorporationandMobil
Corporation.
Ms.SinghservesontheboardofTravelAlberta(Chair,Audit,Financeand
RiskCommittee).

5 Mr.�Judson�was�Chair�of�the�Governance�&�Compensation�Committee�until�it�ceased�following�a�reorganisation�effective�May�27,�2021.��

6 Mr.�Judson�became�Chair�of�the�Nomination�&�Compensation�Committee�effective�May�27,�2021.�

26

==> picture [108 x 37] intentionally omitted <==

She�holds�a�Masters�of�Business�Administration�and�Bachelor�of�Commerce� degrees�(University�of�Calgary),�a�Certified�Financial�Analyst�designation� (CFA�Institute),�CRM�(Global�Risk�Management�Institute)�and�ICD.D� (University�of�Toronto).

Board�memberships�of�other�public�corporations:�none�

SheholdsaMastersofBusinessAdministrationandBachelorofCommerce
degrees(UniversityofCalgary),aCertifiedFinancialAnalystdesignation
(CFAInstitute),CRM(GlobalRiskManagementInstitute)andICD.D
(UniversityofToronto).
SheholdsaMastersofBusinessAdministrationandBachelorofCommerce
degrees(UniversityofCalgary),aCertifiedFinancialAnalystdesignation
(CFAInstitute),CRM(GlobalRiskManagementInstitute)andICD.D
(UniversityofToronto).
SheholdsaMastersofBusinessAdministrationandBachelorofCommerce
degrees(UniversityofCalgary),aCertifiedFinancialAnalystdesignation
(CFAInstitute),CRM(GlobalRiskManagementInstitute)andICD.D
(UniversityofToronto).
Boardmembershipsofotherpubliccorporations:none
Votingresultsat2021annualmeeting:
For:64,404,679(99.90%)
Withheld:66,090(0.10%)
DirectorsinceMay26,2020
ThetermofofficewillexpireonMay26,2022
Boardmeetingattendance: 15outof15
NumberofCommonSharesbeneficiallyowned,controlledor
directedontheRecordDate:232,800
Governance&Compensation
Committeemeetingattendance7:
2outof2
Governance&ESGCommittee
meetingattendance8:
3outof3
AuditCommitteemeeting
attendance9:
2outof2
Nomination&Compensation
Committeemeeting
attendance10:
2outof2
SpecialReviewCommittee
meetingattendance:
27outof27
  • Richard�Couillard�–�Director�Nominee�[11]
RichardCouillard–DirectorNominee11
NameofNominee:RichardCouillard

Credentials:B.SC.(Hons.)geologyand
geophysics
Age:71
Residence:Calgary,Alberta,Canada

Independent
Mr.CouillardiscurrentlyPresidentandCEOofCouilOilEnergyInc.aprivate
corporation.Mr.Couillardhasover40years’experienceindomesticand
internationaloilandgasexploration,developmentandproductionactivities
whichincludes21yearswithChevronCorporationinavarietyoftechnical
andmanagementroles.Themajorityofhiscareerhasbeenfocussedonthe
WesternCanadianSedimentaryBasin.
Mr.Couillard’sdirectorshipshaveincludedCanadianSpiritResourcesInc.
(2003�2020),BadgerInfrastructureSolutionsincludingitspredecessors
2005�2015andKensingtonEnergyInc.2002�2005.Mr.Couillardholdsa
BachelorofScience(Honours)degreeingeologyandgeophysicsandisa
memberoftheCanadianSocietyofPetroleumGeologists(CSPG).
Boardmembershipsofotherpubliccorporations:none
Votingresultsat2021annualmeeting:N/A
NumberofCommonSharesbeneficiallyowned,controlledor
directedontheRecordDate:20,000
Boardmeetingattendance: N/A

7 Ms.�Singh�was�a�committee�member�until�it�ceased�following�a�reorganisation�effective�May�27,�2021.�

8 Ms.�Singh�became�the�Chair�of�the�Governance�&�ESG�Committee�effective�May�27,�2021.

9 Ms.�Singh�became�a�committee�member�following�the�reorganisation�effective�May�27,�2021.

10 Ms.�Singh�became�a�committee�member�following�the�reorganisation�effective�May�27,�2021.

11 Mr.�Couillard�is�not�currently�a�director�of�the�Corporation.�Accordingly,�voting�results�for�2021�nor�Board�or�committee�meeting�attendance� results�are�applicable.�

27

==> picture [108 x 37] intentionally omitted <==

Patricia�McLeod�Q.C.�–�Director�Nominee�[12]

NameofNominee:PatriciaMcLeodQ.C.

Credentials:Q.C.,ICD.D,MBA
Age:53
Residence:Calgary,Alberta,Canada

Independent
Ms.McLeod,Q.C.isanexperiencedcorporateboarddirector,formersenior
legalprofessionalandPrivacyandComplianceOfficerofmultipleregulated
companies.
Ms.McLeodQ.C.hasheldvicepresidentandGeneralCounselrolesin
energyutilitiesandelectricityretail,propertydevelopment,insuranceand
financialservicescompanies.Shehasextensivecorporate/commerciallegal
experienceaswellasadvisingonmergersandacquisitions,business
developmentandjointventuresforlargeinfrastructureprojects.
Ms.McLeodalsoservesontheboardsofAlbertaInnovates(Chair,
Governance&HRCommittee;Member,ExecutiveCommitteeandBusiness
PlanningandStrategyCommittee),theGreenLineBoard(Member,
Governance&HRCommitteeandBudget&RiskCommittee),theBeverage
ContainerManagementBoard(Chair,Governance&Compensation
Committee)andMINDDInc..PatriciaisalsotheBoardChairoftheCalgary
FilmCentreandaformerViceChairofCalgaryEconomicDevelopment.Ms.
McLeodisaformerChairoftheboardsofCalgaryCo�operativeAssociation,
theRealEstateCouncilofAlberta,theYWCAofCalgaryandcSPACEProjects.
SheholdsanMBA(QueensUniversity)andBachelorofLawsandaBachelor
ofCommerce(UniversityofAlberta)andanICD.D(Universityof
Calgary/InstituteofCorporateDirectors).
Ms.McLeod,Q.C.isanexperiencedcorporateboarddirector,formersenior
legalprofessionalandPrivacyandComplianceOfficerofmultipleregulated
companies.
Ms.McLeodQ.C.hasheldvicepresidentandGeneralCounselrolesin
energyutilitiesandelectricityretail,propertydevelopment,insuranceand
financialservicescompanies.Shehasextensivecorporate/commerciallegal
experienceaswellasadvisingonmergersandacquisitions,business
developmentandjointventuresforlargeinfrastructureprojects.
Ms.McLeodalsoservesontheboardsofAlbertaInnovates(Chair,
Governance&HRCommittee;Member,ExecutiveCommitteeandBusiness
PlanningandStrategyCommittee),theGreenLineBoard(Member,
Governance&HRCommitteeandBudget&RiskCommittee),theBeverage
ContainerManagementBoard(Chair,Governance&Compensation
Committee)andMINDDInc..PatriciaisalsotheBoardChairoftheCalgary
FilmCentreandaformerViceChairofCalgaryEconomicDevelopment.Ms.
McLeodisaformerChairoftheboardsofCalgaryCo�operativeAssociation,
theRealEstateCouncilofAlberta,theYWCAofCalgaryandcSPACEProjects.
SheholdsanMBA(QueensUniversity)andBachelorofLawsandaBachelor
ofCommerce(UniversityofAlberta)andanICD.D(Universityof
Calgary/InstituteofCorporateDirectors).
Ms.McLeod,Q.C.isanexperiencedcorporateboarddirector,formersenior
legalprofessionalandPrivacyandComplianceOfficerofmultipleregulated
companies.
Ms.McLeodQ.C.hasheldvicepresidentandGeneralCounselrolesin
energyutilitiesandelectricityretail,propertydevelopment,insuranceand
financialservicescompanies.Shehasextensivecorporate/commerciallegal
experienceaswellasadvisingonmergersandacquisitions,business
developmentandjointventuresforlargeinfrastructureprojects.
Ms.McLeodalsoservesontheboardsofAlbertaInnovates(Chair,
Governance&HRCommittee;Member,ExecutiveCommitteeandBusiness
PlanningandStrategyCommittee),theGreenLineBoard(Member,
Governance&HRCommitteeandBudget&RiskCommittee),theBeverage
ContainerManagementBoard(Chair,Governance&Compensation
Committee)andMINDDInc..PatriciaisalsotheBoardChairoftheCalgary
FilmCentreandaformerViceChairofCalgaryEconomicDevelopment.Ms.
McLeodisaformerChairoftheboardsofCalgaryCo�operativeAssociation,
theRealEstateCouncilofAlberta,theYWCAofCalgaryandcSPACEProjects.
SheholdsanMBA(QueensUniversity)andBachelorofLawsandaBachelor
ofCommerce(UniversityofAlberta)andanICD.D(Universityof
Calgary/InstituteofCorporateDirectors).
Boardmembershipsofotherpubliccorporations:none
Votingresultsat2021annualmeeting:N/A
NumberofCommonSharesbeneficiallyowned,controlledor
directedontheRecordDate:0
Boardmeetingattendance: N/A

Gail�Harding�–�Director�Nominee�[13]

NameofNominee:GailHardingQ.C.

Credentials:B.Ed.,LL.B.,ICD.D
Age:63
Residence:Calgary,Alberta,Canada

Independent
Ms.HardingwastheSeniorVicePresident,ChiefLegalOfficerandCorporate
SecretaryforCanadianWesternBankFinancialGroupuntilherretirementin
2018.ShewaspreviouslyapartneratthelawfirmFraserMilnerCasgrain
LLP,(whereshespecializedincapitalmarketsandmergersandacquisitions),
andLegalCounselandExchangeSecretaryattheAlbertaStockExchange.
Ms.Hardingbringsextensiveboardexperiencehavingservedontheboards
oftheAlbertaElectricSystemOperator,TheWorkers’CompensationBoard
(Alberta),ACEnergy(TSX�V),AlbertaBalletandnumeroussubsidiariesofthe
CWBFinancialGroup.ShecurrentlyservesontheboardsofMeridianCredit
Union(Chair,RiskCommittee)andtheAlbertaSecuritiesCommission.Ms.
HardingwasarecipientoftheCanadianGeneralCounselAward,theWomen
inLawLeadershipAward,andtheQueen’sCounseldesignationfromthe
ProvinceofAlberta.SheholdsBachelorofEducationandBachelorofLaws
degrees(UniversityofAlberta),ICD.D(InstituteofCorporateDirectors)and
FSA(SustainabilityAccountingStandardsBoard)designationsandisaFellow
oftheCanadianInstituteofBankers.

12 Ms.�McLeod�Q.C.�is�not�currently�a�director�of�the�Corporation.�Accordingly,�voting�results�for�2021�nor�Board�or�committee�meeting�attendance� results�are�applicable.�

13 Ms.�Harding�is�not�currently�a�director�of�the�Corporation.�Accordingly,�voting�results�for�2021�nor�Board�or�committee�meeting�attendance�results� are�applicable.�

28

==> picture [108 x 37] intentionally omitted <==

Boardmembershipsofotherpubliccorporations:none
Votingresultsat2021annualmeeting:N/A
NumberofCommonSharesbeneficiallyowned,controlledor
directedontheRecordDate:25,000
Boardmeetingattendance: N/A

Doug�Dreisinger�–�Director�Nominee�[14]

NameofNominee:DougDreisinger

Credentials:B.Sc(Honours)Chemical
Engineering
Age:61
Residence:Calgary,Alberta,Canada

Independent
Mr.Dreisingerhasover35years’experienceintheenergyand
chemicalindustryhavingworkedinbothdomesticandinternational
markets.Heisaconsultantprovidingstrategicandbusiness
developmentservicespredominantlyintheenergysector.
Mr.DreisingerworkedforNexen(nowCNOOC)for20yearsin
positionsrangingfromVicePresidentBusinessOperationsforthe
chemicalbusiness,toPresidentofGlobalEnergyMarketingand
Trading.HisskillsandexperienceatNexenincludetheLNG
developmentofAuroraLNGinconjunctionwiththeirdevelopment
partner,Inpex.
Mr.DreisingeriscurrentlyadirectorofConnacherOil&GasLimited,
aprivatelyheldCalgarybasedexploration,developmentand
productioncompany.HeisamemberoftheAssociationof
ProfessionalEngineersandGeoscientistsofAlberta(APEGA).
Mr.Dreisingerhasover35years’experienceintheenergyand
chemicalindustryhavingworkedinbothdomesticandinternational
markets.Heisaconsultantprovidingstrategicandbusiness
developmentservicespredominantlyintheenergysector.
Mr.DreisingerworkedforNexen(nowCNOOC)for20yearsin
positionsrangingfromVicePresidentBusinessOperationsforthe
chemicalbusiness,toPresidentofGlobalEnergyMarketingand
Trading.HisskillsandexperienceatNexenincludetheLNG
developmentofAuroraLNGinconjunctionwiththeirdevelopment
partner,Inpex.
Mr.DreisingeriscurrentlyadirectorofConnacherOil&GasLimited,
aprivatelyheldCalgarybasedexploration,developmentand
productioncompany.HeisamemberoftheAssociationof
ProfessionalEngineersandGeoscientistsofAlberta(APEGA).
Mr.Dreisingerhasover35years’experienceintheenergyand
chemicalindustryhavingworkedinbothdomesticandinternational
markets.Heisaconsultantprovidingstrategicandbusiness
developmentservicespredominantlyintheenergysector.
Mr.DreisingerworkedforNexen(nowCNOOC)for20yearsin
positionsrangingfromVicePresidentBusinessOperationsforthe
chemicalbusiness,toPresidentofGlobalEnergyMarketingand
Trading.HisskillsandexperienceatNexenincludetheLNG
developmentofAuroraLNGinconjunctionwiththeirdevelopment
partner,Inpex.
Mr.DreisingeriscurrentlyadirectorofConnacherOil&GasLimited,
aprivatelyheldCalgarybasedexploration,developmentand
productioncompany.HeisamemberoftheAssociationof
ProfessionalEngineersandGeoscientistsofAlberta(APEGA).
Boardmembershipsofotherpubliccorporations:none
Votingresultsat2021annualmeeting:N/A
NumberofCommonSharesbeneficiallyowned,controlledor
directedontheRecordDate:0
Boardmeetingattendance: N/A

COMPETENCIES�AND�SKILLS�OF�DIRECTORS���

The�following�table�indicates�the�competencies�and�skills�possessed�by�each�Nominee�(as�determined�by�the� Governance�&�Compensation�Committee)�in�those�particular�categories�that�are�most�relevant�to�the�Corporation� and�important�to�enable�the�Board�to�discharge�its�statutory�and�common�law�responsibilities.��

14 Mr.�Dreisinger�is�not�currently�a�director�of�the�Corporation.�Accordingly,�voting�results�for�2021�nor�Board�or�committee�meeting�attendance� results�are�applicable.�

29

==> picture [108 x 37] intentionally omitted <==

RANGE RANGE RANGE RANGE RANGE RANGE RANGE RANGE
3=HIGHEXPERTISE2=MODERATEEXPERTISE1=MINIMALORNOEXPERTISE
ALFRED
SORENSEN
CHARLES
BOULANGER
ANDREW
JUDSON
KIREN
SINGH
RICHARD
COUILLARD
PATRICIA
McLEOD
GAIL
HARDING
DOUG
DREISINGER
STRATEGICPLANNING 3 3 2 3 3 3 3 3
BUSINESSDEVELOPMENT 3 3 3 2 2 3 1 3
ENTERPRISERISKMANAGEMENT 3 2 2 3 3 3 3 2
OIL&GASOPERATIONS 2 2 2 2 3 1 1 2
RESERVESEVALUATION 2 2 2 1 3 1 1 2
HEALTH&SAFETY 3 2 2 2 3 2 2 2
AUDITANDFINANCIALREPORTING 3 3 2 3 2 2 3 2
CAPITALMARKETS 3 3 3 3 2 2 3 3
ENVIRONMENTAL,SOCIAL,
GOVERNANCE
3 2 2 3 2 3 3 2
HUMANRESOURCES&
COMPENSATION
3 3 2 2 2 3 2 2
LEGALANDREGULATORY 3 2 2 1 2 3 3 2
INFORMATION
TECHNOLOGY/CYBERSECURITY
2 2 1 2 2 2 2 2

TABLE 2

CEASE�TRADE�ORDERS,�BANKRUPTCIES,�PENALTIES�AND�SANCTIONS���

Except�as�noted�below,�to�the�knowledge�of�the�Corporation,�none�of�the�Nominees�are,�as�at�the�date�of�this�Circular,� or�have�been,�within�the�10�years�before�the�date�of�this�Circular,�a�director,�chief�executive�officer�(“ CEO ”)�or�chief� financial�officer�(“ CFO ”)�of�any�company�(including�the�Corporation)�that:�(a)�was�subject�to�a�cease�trade�order,�an� order�similar�to�a�cease�trade�order�or�an�order�that�denied�the�relevant�company�access�to�any�exemption�under� securities�legislation�that�was�in�effect�for�a�period�of�more�than�30�consecutive�days�(an�“ Order ”)�that�was�issued� while�the�proposed�director�was�acting�in�the�capacity�as�director,�CEO�or�CFO;�or�(b)�was�subject�to�an�Order�that� was�issued�after�the�proposed�director�ceased�to�be�a�director,�CEO�or�CFO�and�which�resulted�from�an�event�that� occurred�while�that�person�was�acting�in�the�capacity�as�director,�CEO�or�CFO;�(c)�are,�as�at�the�date�of�this�Circular,� or�have�been�within�ten�years�before�the�date�of�this�Circular,�a�director�or�executive�officer�of�any�company� (including�the�Corporation)�that,�while�that�person�was�acting�in�that�capacity,�or�within�a�year�of�that�person�ceasing� to�act�in�that�capacity,�became�bankrupt,�made�a�proposal�under�any�legislation�relating�to�bankruptcy�or�insolvency� or�was�subject�to�or�instituted�any�proceedings,�arrangement�or�compromise�with�creditors�or�had�a�receiver,� receiver�manager�or�trustee�appointed�to�hold�its�assets.��In�addition,�to�the�knowledge�of�the�Corporation,�no� Nominees�have�been�subject�to:�(i)�any�penalties�or�sanctions�imposed�by�a�court�relating�to�securities�legislation�or� by�a�security�regulatory�authority�or�has�entered�into�a�settlement�agreement�with�a�security�regulatory�authority,� or�(ii)�any�other�penalties�or�sanctions�imposed�by�a�court�or�regulatory�body�that�would�likely�be�considered� important�to�a�reasonable�security�holder�in�deciding�whether�to�vote�for�a�proposed�director.�except�as�described� below.�

30

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Mr.�Doug�Dreisinger�was�a�director�of�Connacher�Oil�and�Gas�Limited�(“Connacher”)�from�June�3,�2015�to�September� 30,�2019.�In�May�2016�Connacher�announced�that,�due�to�high�debt�and�depressed�oil�prices,�amongst�other�things,� it�had�initiated�proceedings�at�the�Court�of�Queen’s�Bench�of�Alberta�to�seek�creditor�protection�under�the� Companies’�Creditors�Arrangement�Act�(“CCAA”).�On�May�16,�2016�the�TSX�suspended�trading�of�Connacher’s� common�shares�subject�to�an�expedited�review�of�Connacher’s�ability�to�meet�the�requirements�for�continued�listing.� Effective�June�20,�2016,�the�common�shares�ceased�to�be�listed�on�the�TSX�for�failure�to�meet�continued�listing� requirements.�Connacher�obtained�a�stay�of�proceedings,�among�other�things,�under�the�CCAA�pursuant�to�an�Initial� Order�dated�May�17,�2016.�Under�the�Initial�Order,�Ernst�&�Young�Inc.�were�appointed�Monitor�of�Connacher�during� the�CCAA�proceedings.�The�stay�of�proceedings�was�extended�multiple�times�to�assist�Connacher�in�undertaking�two� sale�and�investment�solicitation�processes.�On�September�30,�2019�Connacher�announced�that�the�Amended�and� Restated�Plan�of�Compromise�and�Arrangement�(“Plan”)�dated�July�16,�2019�was�sanctioned�by�the�Court�of�Queen’s� Bench�of�Alberta�on�July�16,�2019�in�the�proceedings�under�the�CCAA.��The�Plan�became�effective�September�30,� 2019.�All�existing�equity�interests�(including�outstanding�common�shares)�were�cancelled�for�no�consideration�and� the�first�lien�lenders�(First�Lien�Credit�Agreement�May�23,�2014)�acquired�all�of�Connacher’s�new�share�capital�and.� Connacher�also�ceased�to�be�a�reporting�issuer.�Upon�the�successful�completion�of�the�Plan,�Mr.�Dreisinger�resigned� from�the�Board.�In�January�2020�Mr.�Dreisinger�joined�the�“new”�privately�held�Connacher�as�a�director�and�the� company�is�a�successful�and�growing�oilsands�company.���

No�proposed�director�of�the�Corporation�is�to�be�elected�under�any�arrangement�or�understanding�between�the� proposed�director�and�any�other�person�or�company,�except�the�directors�and�executive�officers�of�the�Corporation� acting�solely�in�such�capacity.�

MAJORITY�VOTING�POLICY���

The�Corporation�believes�that�each�member�of�the�Board�should�have�the�confidence�and�support�of�the� Shareholders.�To�that�end,�the�Corporation�approved�and�adopted�on�February�6,�2020�a�majority�voting�policy�for� directors�which�provides�that�if�any�nominee�in�an�uncontested�election�fails�to�receive�votes�in�favour�of�his�or�her� election�that�collectively�constitute�a�majority�(50%�+�1)�of�the�votes�cast,�that�nominee�will�be�considered�by�the� Board�not�to�have�received�the�support�of�the�Shareholders,�even�though�duly�elected�as�a�matter�of�corporate�law,� and�will�be�expected�to�submit�his�or�her�resignation�to�the�Board�immediately�upon�its�acceptance�by�the�Board.����

In�determining�the�Board’s�acceptance�of�a�resignation,�the�Board�will�refer�the�resignation�to�the�Nomination�&� Compensation�Committee�for�determination�of�the�possible�existence�of�any�exceptional�circumstances�relating�to� the�nominee,�the�composition�of�the�Board�or�the�voting�results�that�should�delay�the�acceptance�of�the�resignation� or�justify�rejecting�it.�The�majority�voting�policy�does�not�apply�if�there�are�contested�director�elections.�The� Corporation�shall�promptly�issue�a�news�release�regarding�the�election�of�directors�and�the�Board’s�decision�on�any� such�resignation.���

INFORMATION�CONCERNING�EXECUTIVE�COMPENSATION���

For�the�financial�year�ended�December�31,�2021�the�Corporation�had�five�named�executive�officers�(each�an�“ NEO ”� and�collectively,�the�“ NEOs ”)�namely,�Alfred�Sorensen�(CEO),�Adam�Gray�(CFO),�Darcy�Reding�(Chief�Operating� Officer),�Yvonne�McLeod�(Vice�President,�Drilling�&�Completions,�Health,�Safety,�Environment�&�Regulatory)�and� Thom�Dawson�(Senior�Vice�President,�Business�Development).��Each�NEO�is�an�employee�of�the�Corporation.���

31

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COMPENSATION�DISCUSSION�AND�ANALYSIS���

Objectives�of�NEO�Compensation�Program�and�Compensation�Philosophy�

The�objectives�of�the�Corporation’s�NEO�compensation�program�are�to:�(a)�attract,�motivate�and�retain�highly� qualified�and�dedicated�individuals;�(b)�align�the�interests�of�the�NEOs�with�those�of�the�Corporation’s�shareholders;� (c)�establish�an�objective�connection�between�NEO�compensation�and�the�Corporation’s�financial�and�business� performance;�and�(d)�incentivize�the�NEOs�to�lead�the�Corporation�in�achieving�its�corporate�objectives�and�fulfilling� its�corporate�strategy.�The�NEO�compensation�program�is,�therefore,�designed�to�reward�the�NEOs�for�increasing� shareholder�value.���

The�Corporation�maintains�an�incentive�program�which�financially�rewards�NEOs�to�the�degree�that�the�Corporation� achieves�its�pre�established�annual�goals.�In�addition,�the�Corporation�recognizes�the�importance�of�ensuring�that� overall�compensation�for�NEOs�is�not�only�internally�equitable,�but�also�competitive�within�the�market�segment.� Specifically,�the�Nomination�&�Compensation�Committee’s�review�and�evaluation�of�corporate�compensation�will� include�measurement�of,�among�others,�the�following�areas:�(a)�the�achievement�of�corporate�objectives,�such�as� financings,�partnerships,�and�other�business�development,�in�particular�having�regard�to�budgetary�constraints�and� other�challenges�facing�the�Corporation;�(b)�the�Corporation’s�financial�condition;�and�(c)�the�Corporation’s�share� price�and�market�capitalization.���

Compensation�policies,�practices�and�amounts�are�continuously�reviewed�and�compared�to�“best�practice”�standards� as�undertaken�by�peer�public�companies.��Compensation�amounts�and�structures�are�compared�to�available�relevant� industry�data�provided�by�independent�sources.�Additionally,�compensation�amounts�reflect�prevailing�market� conditions�and�the�performance�of�the�corporation,�and�the�individual�as�evaluated�by�the�Corporate�Goals�and� metrics�which�are�aligned�with�the�strategic�priorities�of�the�Corporation�as�determined�annually�by�the�Board.��

The�Corporation’s�compensation�program�for�employees�(including�NEOs)�consists�of�two�principal�components:�(a)� compensation�(other�than�paid�under�an�“incentive�plan”�as�defined�by�Form�51�102F6)�consisting�of�base� compensation;�and�(b)�compensation�awarded�under�an�incentive�plan�consisting�of�the�discretionary�bonus� program�and�the�stock�option�plans.�Each�component�has�a�different�function,�as�described�in�greater�detail�below,� but�all�elements�operate�in�unison�to�reward�the�NEOs�appropriately�for�personal�and�corporate�performance.���

The�following�line�graph�depicts�the�cumulative�total�shareholder�return�of�the�Corporation�(PEA)�over�the�five�most� recently�completed�financial�years.[15]

==> picture [258 x 144] intentionally omitted <==

----- Start of picture text -----

Total�Shareholder�Return
$200
$175
$150
$125
$100
$75
$50
$25
$0
2017 2018 2019 2020 2021 2022
PEA S&P�TSX�Comp S&P�TSX�Venture
----- End of picture text -----

The�trend�shown�by�this�graph�is�not�reflective�of� the�trend�in�compensation�reported�under�this� Circular�which�the�executive�officers�received�from� the�Corporation�over�the�same�five�year�period.��As� described�below,�the�compensation�received�by� executive� officers� is� composed� of� base� compensation,�which�has�remained�substantially� constant�over�the�time�period,�and�possibly� incentive�awards�which�are�received�by�executive� officers�periodically,�if�at�all,�upon�the�achievement� of�certain�of�the�pre�determined�objectives.�

15This�line�graph�is�based�on�the�assumption�that�$100�was�invested�on�the�first�day�of�the�five�year�period.�

32

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However,�the�achievement�of�those�objectives�does�not�necessarily�impact�the�trading�value�of�the�Common�Shares�of�the� Corporation�in�the�long�term.�

Base�Compensation��

The�Corporation�enters�into�a�written�contract�of�service�with�each�of�its�employees�(including�each�NEO)�which� requires�the�Corporation�to�pay�base�compensation�(including�overtime�pay�when�statutorily�mandated)�as�well�as� other�monetary�perquisites�(collectively,�“ base�compensation ”)�to�its�employees�in�consideration�for�the� performance�of�their�respective�duties�of�employment.��

The�payment�of�base�compensation�to�employees,�in�amounts�which�are�comparable�to�the�amounts�paid�to�similar� positions�in�the�natural�resource�industry,�is�essential�to�the�Corporation’s�ability�to�attract�and�retain�outstanding� employees�(including�each�NEO).�Base�compensation,�and�changes�in�base�compensation,�are�established�by�the� Corporation�taking�into�account�each�employee’s�expertise�and�experience�as�well�as�their�level�of�responsibility�and� competitive�pay�practices.�Base�compensation�is�reviewed�periodically,�and�adjusted�as�appropriate,�by�the� Corporation�to�reflect�performance�and�market�conditions.���

Any�increase�in�the�base�compensation�of�the�CEO�must�be�approved�by�the�Board�taking�into�consideration�the� recommendation�of�the�Nomination�&�Compensation�Committee.�The�CEO�is�responsible�for�determining�and� approving�any�increase�in�the�base�compensation�of�other�employees�(including�other�NEOs).����

Group�Retirement�Savings�Plan���

The�Corporation’s�group�retirement�savings�plan�implemented�in�late�2019�is�a�non�equity,�non�incentive�plan�that� is�available�to�all�permanent�employees�(including�the�NEOs).�This�plan�is�sponsored�by�the�Corporation�and�is� administered�by�The�Manufacturers�Life�Insurance�Company.��

The�plan’s�primary�purpose�is�to�provide�a�flexible�and�multi�faceted�retirement�savings�vehicle�to�employees�to� assist�them�in�saving�for�their�retirement.�This�plan�offers�each�participating�employee�the�ability�to�make�personal� contributions�to�the�plan�(up�to�certain�prescribed�limits)�which�the�employee�may�designate�toward�(a)�a�registered� retirement�savings�plan�(or�spousal�registered�retirement�savings�plan),�(b)�a�tax�free�savings�account�and�(c)�a� nonregistered�savings�plan.��In�order�to�further�assist�employees,�the�Corporation�has�agreed�to�contribute�to�the� registered�retirement�savings�plan�of�each�participating�employee�an�amount�equal�to�6%�of�the�employee’s�base� compensation�and�an�additional�amount�equal�to�the�lesser�of�the�contribution�made�by�the�participating�employee� to�the�group�retirement�savings�plan�and�4%�of�the�employee’s�base�compensation.��������

Discretionary�Bonus�Program�

The�Corporation’s�discretionary�bonus�program�is�a�non�equity�incentive�plan�that�is�available�to�all�permanent� employees�(including�the�NEOs).�Participation�in�the�program�is�a�component�of�overall�compensation�that� incentivizes�employees�to�meet�short�term,�pre�determined�objectives�which�are�intended�to�improve�the�overall� value�of�the�Corporation.�The�discretionary�bonus�program�also�serves�to�assist�the�Corporation�in�rewarding�and� retaining�valued�employees�and�are�understood�to�be�common�in�the�marketplace.����

Under�the�discretionary�bonus�program,�each�employee�(including�each�NEO)�is�eligible�for�an�annual�cash�bonus� which�is�quantified�on�a�rational�basis�and�informed�by�the�employee’s�level�of�responsibility,�base�compensation,� personal�performance�measured�against�pre�set�objectives�while�also�taking�into�account�the�overall�performance� of�the�Corporation.�The�amount�of�the�proposed�annual�bonus�award�to�the�CEO�and�the�aggregate�amount�of�the� proposed�annual�bonus�award�to�all�other�employees�is�approved�by�the�Board�taking�into�consideration�the�

33

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recommendation�of�the�Nomination�&�Compensation�Committee.�If�warranted�for�performance�or�other�reasons,� special�cash�bonuses�may�also�be�considered�from�time�to�time.��

The�Stock�Option�Plans���

The�Corporation�sponsors�two�distinct�stock�option�plans��the�Stock�Option�Plan�Number�One�and�the�Stock�Option� Plan�Number�Two).���

The�Stock�Option�Plan�Number�One�and�the�Stock�Option�Plan�Number�Two�(collectively,�the�“ Stock�Option�Plans ”)� were�established�and�designed�to�allow�the�Corporation,�through�Common�Shares,�to�retain�and�motivate�competent� directors,�senior�executives�and�other�employees�and�“consultants”�to�whom�the�Board�may�grant�stock�options� pursuant�to�the�Stock�Option�Plans�from�time�to�time�further�to�their�efforts�in�attaining�the�goals�of�the�Corporation� and�to�allow�such�individuals�to�purchase�Common�Shares�as�an�investment,�and�to�encourage�them�to�act�in�this� manner.����

BACKGROUND��

The�Stock�Option�Plan�Number�One�was�approved�and�adopted�by�the�Board�as�of�October�24,�2017,�and�was� amended�and�restated�by�the�Board�as�of�November�23,�2017,�and�again�as�of�March�19,�2020�and�approved�at�the� annual�and�special�meeting�of�Shareholders�held�on�June�27,�2018,�May�26,�2020,�and�on�May�27,�2021�respectively.���

As�Stock�Option�Plan�Number�One�was�not�presented�to�the�Shareholders�for�consideration�and�approval�at�the� annual�and�special�meeting�of�Shareholders�held�on�June�18,�2019,�as�was�required�by�the�policy�of�the�TSX�Venture� Exchange�at�that�time.��Therefore,�as�an�interim�measure,�the�Board�approved�and�adopted�a�second�stock�option� plan�(the�“ Stock�Option�Plan�Number�Two ”),�as�permitted�under�Section�3.9�of�Policy�4.4�of�the�TSX�Venture� Exchange,�on�June�18,�2019,�to�facilitate�the�granting�of�stock�options�until�the�Stock�Option�Plan�Number�One�was� able�to�be�put�forward�for�approval�by�the�Shareholders�at�the�next�meeting�of�Shareholders�held�on�May�26,�2020.�� Stock�Option�Plan�Number�Two�is�a�fixed�number�stock�option�plan�under�which�the�Corporation�is�authorized�to� grant�stock�options�up�to�a�maximum�of�8,412,199�Common�Shares�being�the�difference�between�10%�of�the�total� number�of�Common�Shares�that�were�issued�and�outstanding�as�at�June�18,�2019�and�the�number�of�Common�Shares� that�underlie�all�unexercised�and�unexpired�stock�options�that�were�previously�granted�by�the�Corporation�under� the�Stock�Option�Plan�Number�One.��Stock�Option�Plan�Number�Two�governs�only�those�stock�options�that�were� granted�thereunder�in�2019�and�it�is�intended�that�Stock�Option�Plan�Number�Two�will�be�terminated�by�the� Corporation�when�the�last�of�those�stock�options�is�exercised,�expires�or�is�otherwise�terminated.����

As�discussed�in�greater�detail�on�page�23�of�this�Circular,�the�Stock�Option�Plan�has�again�been�amended�and�restated� by�the�Board�on�May�19,�2021,�which�will�be�considered�at�the�annual�and�special�meeting�of�Shareholders�scheduled� for�May� 26 ,�2022.��

THE�PARTICULARS�OF�THE�STOCK�OPTION�PLANS

As�at�December�31,�2021,�and�as�at�the�Record�Date,�there�were�157,645,871�and�157,681,871 Common�Shares� issued�and�outstanding�respectively.��

Each�Eligible�Person�(as�defined�below)�is�eligible�for�an�annual�stock�option�grant�that�may�be�approved�from�time� to�time�by�the�Board�on�the�recommendation�of�the�Nomination�&�Compensation�Committee.�The�number�of�stock� options�granted�to�Eligible�Persons�is�informed�by�prevailing�competitive�and�market�conditions�and�is�based�on�the� level�of�their�respective�responsibility�as�well�as�their�respective�personal�performance,�and�the�performance�of�the� Corporation,�relative�to�pre�determined�objectives.�Stock�option�grants�may�also�be�considered�and�approved�by�the� Board,�if�warranted,�for�specific�performance�or�for�other�reasons�in�special�circumstances.�For�example,�directors�

34

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or�employees�may�be�granted�stock�options�upon�the�commencement�of�their�engagement�or�employment�with�the� Corporation.�When�determining�whether�and�how�many�new�stock�option�grants�will�be�approved,�the�Board� considers�all�relevant�factors.���

The�Stock�Option�Plan�Number�One�is�the�operative�plan�for�all�stock�option�grants�that�are�awarded�after�May�26,� 2020.��That�Stock�Option�Plan�Number�One�is�a�“rolling”�stock�option�plan�under�which�stock�options�may�be�granted� up�to�a�maximum�of�10%�of�the�Common�Shares�issued�and�outstanding�at�the�time�of�the�grant.�The�number�of� Common�Shares�that�may�be�reserved�under�the�Stock�Option�Plan�Number�One�automatically�increases�or� decreases�as�the�number�of�issued�and�outstanding�Common�Shares�increases�or�decreases.��

The�Stock�Option�Plan�Number�Two�was�established�by�the�Board�as�an�interim�measure�as�discussed�above�and�the�� Corporation�does�not�intend�to�grant�any�stock�options�under�that�plan�in�the�future.��

STOCKOPTIONPLAN
NUMBERONE
STOCKOPTIONPLAN
NUMBERTWO
Aggregatenumberof
CommonSharesthat
underliethestockoptions
awardedundereachofthe
StockOptionPlansasat
December31,2021.
4,567,690CommonSharesareissuableunder
thestockoptionswhichweregrantedunder
thePlanandareoutstandingasatDecember
31,2021.

TheseCommonSharesrepresent2.9%ofthe
aggregatenumberofCommonSharesthat
areissuedandoutstandingasatDecember
31,2021.
2,472,775CommonSharesareissuable
underthestockoptionswhichweregranted
underthePlanandareoutstandingasat
December31,2021.

TheseCommonSharesrepresent1.6%ofthe
aggregatenumberofCommonSharesthat
areissuedandoutstandingasatDecember
31,2021.
Aggregatenumberof
CommonSharesundereach
oftheStockOptionPlans
thatareavailableforgrant
asstockoptionsasat
December31,2021.
8,724,122CommonSharesunderthePlan
thatareavailableforgrantasstockoptions.
TheseCommonSharesrepresent5.5%ofthe
aggregatenumberofCommonSharesthat
areissuedandoutstandingasatDecember
31,2021.
TheCorporationdoesnotintendinthe
futuretograntanystockoptionsunderStock
OptionPlanNumberTwo.
Accordingly,asat31December,2021there
arenoCommonSharesunderStockOption
PlanNumberTwothatareavailableforgrant
asstockoptions.
Aggregatenumberof
CommonSharesthat
underliethestockoptions
awardedundereachofthe
StockOptionPlansasatthe
RecordDate.
4,429,690CommonSharesareissuableunder
thestockoptionswhichweregrantedunder
thePlanandareoutstandingasoftheRecord
Date.
TheseCommonSharesrepresent2.8%ofthe
aggregatenumberofCommonSharesthat
areissuedandoutstandingasoftheRecord
Date.
2,468,950CommonSharesareissuable
underthestockoptionswhichweregranted
underthePlanandareoutstandingasofthe
RecordDate.
TheseCommonSharesrepresent1.6%ofthe
aggregatenumberofCommonSharesthat
areissuedandoutstandingasoftheRecord
Date.

35

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STOCKOPTIONPLAN
NUMBERONE
STOCKOPTIONPLAN
NUMBERTWO
Aggregatenumberof
CommonSharesundereach
oftheStockOptionPlans
thatareavailableforgrant
asstockoptionsasatthe
RecordDate.
AsattheRecordDatethereare8,869,547
CommonSharesunderthePlanthatare
availableforgrantasstockoptions.
TheseCommonSharesrepresent5.6%ofthe
aggregatenumberofCommonSharesthat
areissuedandoutstandingasoftheRecord
Date.
TheCorporationdoesnotintendinthe
futuretograntanystockoptionsunderStock
OptionPlanNumberTwo.Therefore,all
stockoptionsgrantedinthefuturewillbe
grantedunderStockOptionPlanNumber
One,asamended.
Accordingly,asattheRecordDatethereare
noCommonSharesunderStockOptionPlan
NumberTwothatareavailableforgrantas
stockoptions.

Stock�Option�Plan�Number�Two�has�not�been�used�since�2019�and�will�not�be�used�by�the�Corporation�thereafter�to� issue�options.�As�such,�its�salient�terms�are�not�summarised�in�this�Circular.�The�following�table�summarizes�the� salient�terms�of�Stock�Option�Plan�Number�One�including�the�provisions�prior�to�the�amendments�proposed�to�be� accepted�by�Shareholders�herein.��

STOCKOPTIONPLANNUMBERONE
(INCLUDINGPROPOSEDAMENDMENTS)
CURRENTPROVISIONS
Numberof
Shares
Theoptionstobegrantedmustnotbeexercisableformore
than10%oftheCommonSharesissuedandoutstandingat
thetimetheoptionsaregranted,providedthatifthe
optionsexpireorareterminatedforanyreasonbeforethey
vestandareexercised,thenumberofCommonShares
underlyingsuchexpiredorterminatedoptionsmayagainbe
availableunderthePlan.
same
ExercisePrice TheBoardofDirectorsshallestablishtheexerciseprice,
whichwillnotbelessthantheclosingpriceoftheshareson
theExchangeonthetradingdayimmediatelyprecedingthe
dateofgrant.
same
Participation
Limits
(a)
ThemaximumnumberofSharesissuableatanytime
toEligiblePersonswhoareInsiderspursuanttothe
exerciseofOptionsgrantedunderthisPlanand
securitiesgrantedunderanyotherSecurityBased
CompensationArrangementoftheCorporationmust
notexceed10%oftheaggregatenumberofShares
issuedandoutstandingfromtimetotime(calculated
onanon�dilutedbasis).
(b)
ThemaximumnumberofSharesissuedtoEligible
PersonswhoareInsiderswithinanyoneyearperiod
pursuanttotheexerciseofOptionsgrantedunderthis
PlanandsecuritiesgrantedunderanyotherSecurity
BasedCompensationArrangementoftheCorporation
mustnotexceed10%oftheaggregatenumberof
Sharesissuedandoutstandingfromtimetotime
(calculatedonanon�dilutedbasis).
(c)
Thenumberofsharesthatareissuabletoeligible
personswhoarenon�employeedirectorsunderthis
PlanandanyotherSecurityBasedCompensation
(a) ThemaximumnumberofShares
issuableatanytimetoEligible
PersonswhoareInsiderspursuantto
theexerciseofOptionsgrantedunder
thisPlanandsecuritiesgrantedunder
any
other
Security
Based
CompensationArrangementofthe
Corporationmustnotexceed10%of
theaggregatenumberofShares
issuedandoutstandingfromtimeto
time(calculatedonanon�diluted
basis).
(b) ThemaximumnumberofShares
issuedtoEligiblePersonswhoare
Insiderswithinanyoneyearperiod
pursuanttotheexerciseofOptions
grantedunderthisPlanandsecurities
grantedunderanyotherSecurity
BasedCompensationArrangementof

36

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STOCKOPTIONPLANNUMBERONE
(INCLUDINGPROPOSEDAMENDMENTS)
CURRENTPROVISIONS
ArrangementoftheCorporationshallnotatanytime
exceed$150,000worthofSharesannuallypernon�
employeedirector,ofwhichnomorethan$100,000
maybeintheformofOptions.
theCorporationmustnotexceed10%
oftheaggregatenumberofShares
issuedandoutstandingfromtimeto
time(calculatedonanon�diluted
basis).
TermofOptions SubjecttoothertermswithinthePlan,theexpirydateofan
optionisthedateestablishedbytheBoardofDirectorsat
thetimeofthegrantingoftheparticularoption,provided
thatsuchdatedoesnotextendbeyondthefifthanniversary
ofthedateofgrantoftheoption.
same
Expiryofoptions SubjecttoothertermswithinthePlan,optionswillexpireon
thefollowingevents:
(a) Theexpirydateoftheoption;
(b) 90daysfollowingdeathoftheoptionholder;
(c) 90daysfollowingcessationofemploymentforall
optionsissuedonorafterOctober24,2017;
(d) Atthediscretionoftheboardofdirectorsand
subjecttotheapprovaloftheTorontoStock
Exchangeandwithpriornoticetotheoption
holder;
(e) Onthefirstdaytheoptioneeceasedemployment
iftheoptionholderwasterminatedforcause;
same
Assignment SubjecttoothertermswithinthePlan,optionscannotbe
assignedortransferred.
same
Changeof
Control
Thesuccessorcorporationmayeither(i)assumethe
Corporation'srightsandobligationsunderoutstanding
options,or(ii)substituteforoutstandingoptions
substantiallyequivalentoptionsinthesuccessorcorporation
inamannerthatsubstantiallypreservesanddoesnotimpair
therightsoftheoptioneeinanymaterialrespect.
Intheeventthatanassumptionorsubstitutionofoptionsis
notmadebythesuccessorcorporationpriortoorin
connectionwithaChangeofControl,alloptionsheldbyan
optioneeasatthedateoftheChangeofControl,whether
vestedorunvested,willautomaticallyvestasofthedateof
theChangeofControl.
Iftheemploymentofanoptioneeisterminatedduringthe
one(1)yearperiodafteraChangeofControlforanyreason
otherthanforcause,ortheoptioneeresignsasaresultof
constructivedismissal,thenanyunvestedoptionsheldby
theoptioneeasatthedateoftheChangeofControlshall
accelerateandwillfullyvesteffectiveonthedateofthe
ChangeofControlandalloptionsthatarevestedordeemed
tobevestedmaybeexercisedbytheoptioneewithin30
daysfromtheterminationdate.
same

37

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STOCKOPTIONPLANNUMBERONE
(INCLUDINGPROPOSEDAMENDMENTS)
CURRENTPROVISIONS
Retroactive
Amendments
TheBoardofDirectorsmay,subjecttotheapprovalofthe
ExchangeandsubjecttoothertermswithinthePlan,
retroactivelyamendthePlanand,withtheconsentofthe
affectedoptionees,retroactivelyamendthetermsand
conditionsoftheoptionsthathavebeengranteduntilthen.
same
Amendments
notrequiring
shareholder
approval
TheBoardofDirectorsmay,withouttheapprovalofthe
shareholders(otherthananyrequiredregulatoryorExchange
approvals)butsubjecttoothertermswithinthePlan,
suspend,discontinueoramendthisPlanoranyoption.
Examplesofthetypesofamendmentsthatmaybemadeby
theBoardwithoutShareholderapprovalinclude,without
limitation,thefollowing:
a) amendmentstoensurecontinuingcompliancewith
applicablelaws,regulations,requirements,rulesor
policiesoranygovernmentalauthorityoranystock
exchange;
b) amendmentsofa“housekeeping”nature,whichinclude
amendmentstoeliminateanyambiguityorcorrector
supplementanyprovisioncontainedherein;
c) amendmentsrespectingtheadministrationofthePlan;
d) changingthevestingprovisionsofthePlanoranyoption
certificate;
e) changingtheterminationprovisionsofanyOptionthat
doesnotentailanextensionbeyondtheoriginalexpiry
date;and
f) anyotheramendmentthatdoesnotrequiretheapproval
ofShareholders.
same
Amendments
requiring
shareholder
approval
SubjecttoothertermswithinthePlan,specific
shareholderapprovalisrequiredfor:
a) anychangetothemaximumnumberofsharesissuable
underthePlan,includinganincreasetothefixed
maximumpercentageorachangefromafixedmaximum
percentagetoafixedmaximumnumberofshares;
b) anyamendmentwhichreducestheexercisepriceofany
optionaftertheoptionshavebeengrantedorany
cancellationofanoptionandthesubstitutionofthat
optionbyanewoptionwithareducedprice;
c) anyamendmentwhichextendstheoptiontermbeyond
theoriginalexpirydate;
SubjecttoothertermswithinthePlan,
specific
shareholder
approval
is
requiredfor:
(a) areductionintheexerciseprice
underthePlanbenefitingan
InsideroftheCorporation;
(b) anextensionoftheoriginalExpiry
DateunderthePlanbenefitingan
InsideroftheCorporation;
(c) anyamendmenttoremoveorto
exceedtheInsiderParticipation
Limits;
(d) anincreasetothemaximum
numberofSharesissuableunder
thePlan;

38

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STOCKOPTIONPLANNUMBERONE
(INCLUDINGPROPOSEDAMENDMENTS)
CURRENTPROVISIONS
d) anyamendmenttoremoveortoexceedtheparticipation
limits;
e) anyamendmentwhichwouldallownon�employee
directorstobeeligibleforawardsunderthePlanona
discretionarybasisoranamendmentwhichwould
increaselimitsimposedonnon�employeedirector
participation;
f) anyamendmentwhichwouldpermitanyoptiongranted
underthePlantobetransferableorassignablebyany
EligiblePersonotherthanasalreadypermittedunderthe
Plan;
g) anyamendmenttotheamendmentprovision(section
5.2)ortheamendmentsrequiringshareholderapproval
provision(section5.3).
(e) anyamendmenttoSections5.2or
5.3hereof.

TABLE�3

The�Stock�Options�that�are�Outstanding�at�the�Record�Date��

Table�4,�below,�summarizes�the�Stock�Options�that�are�issued�and�outstanding�under�the�Stock�Option�Plans�as�at� the�Record�Date.���

GROUP DATEOFGRANT AGGREGATE
NUMBEROF
SHARESISSUABLE
EXERCISEPRICE
($)
EXPIRYDATE
TheStockOptionPlanNumberOne:
OfficersandEmployees January29,2018 388,500 5.67 January28,2023
Directors January29,2018 300,000 5.67 January28,2023
Directors June27,2018 125,000 5.67 June27,2023
OfficersandEmployees October8,2020 1,168,600 0.86 October8,2025
Directors November17,2020 390,000 0.86 November17,2025
OfficersandEmployees November17,2020 100,000 0.86 November17,2025
Directors August19,2021 263,590 0.30 August19,2026
OfficersandEmployees August19,2021 1,694,000 0.30 August19,2026
Total 4,429,690
TheStockOptionPlanNumberTwo:
Directors July3,2019 525,000 0.89 July3,2024
OfficersandEmployees July3,2019 1,368,950 0.89 July3,2024
OfficersandEmployees October21,2019 575,000 0.92 October21,2024
Total 2,468,950

TABLE�4

The�4,429,690�Common�Shares�underlying�the�then�issued�and�outstanding�Stock�Options�of�the�Corporation�granted� under�Stock�Option�Plan�Number�One�had�a�weighted�average�exercise�price�of�approximately�$1.50�per�Common� Share�and�the�2,468,950�Common�Shares�underlying�the�then�issued�and�outstanding�Stock�Options�of�the�

39

==> picture [108 x 37] intentionally omitted <==

Corporation�granted�under�Stock�Option�Plan�Number�Two�had�a�weighted�average�exercise�price�of�approximately� $0.90�per�Common�Share.��The�Corporation�is�permitted�under�the�Stock�Option�Plans�to�grant�stock�options,�in� aggregate,�up�to�a�maximum�of�10%�of�the�then�total�number�of�issued�and�outstanding�Common�Shares.���

The�Annual�Burn�Rate���

EQUITYCOMPENSATIONARRANGEMENT 2019 2020 2021
TheStockOptionPlanNumberOne:
StockOptionsissued(1)
WeightedAverageCommonSharesOutstanding
0 2,200,100 1,993,590
95,306,838 157,638,343 157,642,287
AnnualBurnRate 0 1.4% 1.3%
TheStockOptionPlanNumberTwo:
StockOptionsissued(1)
WeightedAverageCommonSharesOutstanding
4,264,341 0 0
95,306,838 157,638,343 157,642,287
AnnualBurnRate 4.5% 0 0
DirectorCompensationPolicy
CommonSharesIssued
WeightedAverageCommonSharesOutstanding
146,544 80,697 0
95,306,838 157,638,343 157,642,287
AnnualBurnRate 0.2% 0.1% 0

TABLE�5 (1) Each�to�acquire�one�Common�Share�

The�Corporation�did�not�issue�any�Common�Shares�at�any�time�during�the�twelve�months�prior�to�the�Record�Date,� other�than�40,000�issued�to�employees�on�exercise�of�stock�options.����

Risks�Associated�with�Compensation�Policies�and�Practices�

The�Board�and�its�Governance�&�ESG�Committee�and�Nomination�&�Compensation�Committee�have�considered�the� implications�of�the�risks�associated�with�the�Corporations’�compensation�policies�or�practices�and�has�concluded�that� the�programs�do�not�encourage�excessive�or�inappropriate�risk�taking�and�are�aligned�with�the�long�term�interests� of�shareholders.�In�particular,�it�is�noted�that�compensation�awards�are�granted�under�the�discretionary�bonus� program�and�under�the�Stock�Option�Plans�primarily�on�the�basis�of�the�degree�to�which�pre�established�individual� and�corporate�objectives�are�achieved.�In�each�case�the�Corporation�has�concluded,�at�the�time�that�each�such� objective�is�established,�that�its�concomitant�risk�profile�is�acceptable�to�the�Corporation�and�the�objective,�if� achieved,�aligns�with�the�long�term�interests�of�its�shareholders.�Additional�alignment�between�the�interests�of� directors�and�senior�employees�on�the�one�hand�with�the�interests�of�shareholders�on�the�other�hand,�is�achieved� through�the�Share�Ownership�Policy�which�prohibits�each�director�and�relevant�senior�employee�from�entering�into� any�agreement,�and�from�effecting�any�hedge�or�other�transaction,�which�has�as�one�of�its�purposes,�or�has�as�one� of�its�consequences�or�possible�consequences,�the�amelioration,�in�whole�or�in�part,�of�the�economic�impact�of�a� decrease,�or�possible�decrease,�in�the�market�value�of�the�Common�Shares�which�are�held�by�such�director�or�senior� employee.��

Each�member�of�the�Governance�&�ESG�Committee�and�Nomination�&�Compensation�Committee�has�been�in�a�senior� leadership�position�in�various�organizations,�and�in�those�capacities�obtained�direct�experience�relevant�to�executive� compensation�and�has�the�skills�and�experience�that�enable�the�Governance�&�ESG�Committee�and�Nomination�&�

40

==> picture [108 x 37] intentionally omitted <==

Compensation�Committee�to�make�recommendations�to�the�Board�on�the�suitability�of�the�Corporation’s� compensation�policies�and�practice�giving�due�regard�to�the�related�risk�factors.��

An�electronic�copy�of�the�mandate�of�the�Board�and�each�of�the�committees,�including�the�Governance�&�ESG� Committee,�can�be�obtained�from�the�Corporation’s�website�(www.pieridaeenergy.com).��

Compensation�policies�are�continuously�reviewed�and�updated�to�“best�practice”�standards�as�undertaken�by�peer� public�companies�and�applicable�regulatory�changes.��In�addition,�the�business�conduct�of�NEOs�and�individual� employees�are�evaluated�against�the�Corporation’s�prevailing�policies�including�(a)�the�Code�of�Ethical�Conduct,�(b)� the�Anti�Corruption�Policy,�(c)�the�Disclosure�Policy�and�the�Trading�Restrictions�and�Blackout�Period�Policy,�(d)�the� Hedging�Policy,�(e)�the�Policy�Establishing�Financial�Authority,�(f)�the�Credit�Policy�and�the�Investment�Policy�and�(g)� the�Policy�for�the�Prevention�of�Harassment,�each�of�which�further�protect�the�Corporation�from�the�adverse� consequences�of�inappropriate�conduct�and�excessive�risk�taking.���

Further,�on�March�23,�2022,�the�Board�approved�the�addition�of�a�“Clawback�Policy”.�This�policy�requires�all�members� of�senior�management[16] ,�whether�current�or�former,�to�immediately�repay�or�forfeit,�that�portion�of�bonuses�or� equity�based�compensation�paid,�granted�or�vested�by�them�if�the�Corporation�is�required�to�prepare�a�restatement� of�any�or�all�its�financial�statements�due�to�either�(i)�material�non�compliance�with�any�financial�reporting� requirements�under�applicable�securities�laws,�or�(ii)�gross�negligence�or�fraud�of�such�member�of�senior� management�as�either�admitted�to�or�as�proven�in�a�court�of�competent�jurisdiction.��

Compensation�plans�and�awards�are�compared�to�available�relevant�industry�data�provided�by�independent�sources.�� Additionally,�compensation�amounts�reflect�prevailing�market�conditions�and�the�performance�of�the�Corporation� and�the�individual�as�evaluated�by�the�Corporate�Goals�and�metrics�which�are�aligned�with�the�strategic�priorities�of� the�corporation�as�set�out�annually�by�the�Board�of�Directors.��

SUMMARY�COMPENSATION�TABLE���

The�following�table�presents�information�concerning�all�compensation�paid,�payable,�awarded,�granted,�given,�or� otherwise�provided�to�NEOs�by�the�Corporation�for�services�in�all�capacities�to�the�Corporation�during�the�last�three� financial�years:�����

NAMEAND
PRINCIPAL
POSITION
YEAR SALARY SHARE
BASED
AWARDS
OPTION
BASED
AWARDS
NON�EQUITY
INCENTIVEPLAN
COMPENSATION
(BONUS)
ALLOTHER
COMPENSATION
TOTAL
COMPENSATION
($) ($) ($) ($) ($) ($)
AlfredSorensen,
CEO(a)
2021 300,000 nil 23,148(d) 99,000 15,000 437,148
2020 278,307 nil 34,146(e) 155,315 15,576 483,344
2019 300,000 nil 77,885(f) 129,065 41,380 600,530
52,200(g)
AdamGray,CFO(b) 2021 238,500 nil 25,197(d) 77,006 7,115 347,818
2020 185,000 nil 22,100(e) nil 5,000 212,100
2019 n/a n/a n/a n/a n/a n/a
2021 265,000 nil 26,212(d) 64,171 7,692 363,075

16 Senior�Management�is�defined�as�collectively�the�CEO,�the�CFO,�the�COO�and�each�senior�vice�president.���

41

==> picture [108 x 37] intentionally omitted <==

NAMEAND
PRINCIPAL
POSITION
YEAR SALARY SHARE
BASED
AWARDS
OPTION
BASED
AWARDS
NON�EQUITY
INCENTIVEPLAN
COMPENSATION
(BONUS)
ALLOTHER
COMPENSATION
TOTAL
COMPENSATION
($) ($) ($) ($) ($) ($)
DarcyReding,COO
(c)
2020 n/a n/a n/a n/a n/a n/a
2019 n/a n/a n/a n/a n/a n/a
YvonneMcLeod,
Vice�President,
HSERDrilling&
Completions
2021 250,000 nil 7,175(d) 32,287 10,000(j) 299,462
2020 249,519 nil 15,483(e) 116,724 221,584(j) 603,310
2019 260,000 nil 64,904(f) 500 62,800(j) 420,829
32,625(g)
ThomasDawson,
SeniorVice�
President,Business
Development
2021 250,000 nil 6,277(d) 80,719 10,000 346,996
2020 249,519 nil 15,470(e) 80,266 10,385 355,640
2019 250,000 nil 64,890(f) 80,266 36,330 464,125
32,639(g)

TABLE 6

Notes:��

  • (a) Mr.�Sorensen�has�not�received�any�compensation�for�his�role�as�a�director�of�the�Corporation.�

  • (b) Mr.�Gray�was�appointed�CFO�effective�March�28,�2022.�Prior�to�this�Mr.�Gray�was�Interim�CFO�from�August�1,�2021.�Prior� thereto�Mr.�Gray�was�Vice�President�&�Controller�from�November�1,�2020,�until�July�31,�2021,�and�joined�the�Corporation�as� Controller�on�January�13,�2020.����

  • (c) Mr.�Reding�became�COO�when�he�joined�the�Corporation�on�April�5,�2021.

  • (d) To�align�with�market�practice,�the�estimated�fair�value�of�these�options�granted�on�August�19,�2021,�has�been�calculated�using� the�Black�Scholes�Merton�model,�with�the�following�assumptions:�expected�volatility�of�89%,�risk�free�interest�rate�of�0.60%� and�an�expected�life�of�3.3�years.�

  • (e) To�align�with�market�practice,�the�estimated�fair�value�of�these�options�granted�on�October�8,�2020,�has�been�calculated�using� the�Black�Scholes�Merton�model,�with�the�following�assumptions:�expected�volatility�of�86%,�risk�free�interest�rate�of�0.37%� and�an�expected�life�of�5.0�years.�

  • (f) To�align�with�market�practice,�the�estimated�fair�value�of�these�options�granted�on�April�24,�2019,�has�been�calculated�using� the�Black�Scholes�Merton�model,�with�the�following�assumptions:�expected�volatility�of�66%,�risk�free�interest�rate�of�1.44%� and�an�expected�life�of�4.6�years.�

  • (g) To�align�with�market�practice,�the�estimated�fair�value�of�these�options�granted�on�October�21,�2019,�has�been�calculated� using�the�Black�Scholes�Merton�model,�with�the�following�assumptions:�expected�volatility�of�67%,�risk�free�interest�rate�of� 1.58%�and�an�expected�life�of�3.3�years.�

INCENTIVE�PLAN�AWARDS���

Outstanding�Share�based�and�Option�based�Awards�

The�following�table�sets�forth�information�in�respect�of�all�awards�outstanding�as�at�December�31,�2021�granted�to� the�NEOs:���

42

==> picture [108 x 37] intentionally omitted <==

OPTION�BASEDAWARDS
NAME NUMBEROF
SECURITIES
UNDERLYING
UNEXERCISED
OPTIONS
OPTIONEXERCISE
PRICE
OPTIONEXPIRY
DATE
VALUEOF
UNEXERCISED
INTHE�MONEY
OPTIONS(a)
AlfredSorensen 195,000 $5.67 January29,2023 nil
163,934 $0.89 July3,2024 nil
120,000 $0.92 October21,2024 nil
100,000 $0.86 November17,2025 nil
143,500 $0.30 August19,2026 $1,435
AdamGray 50,000 $0.86 October8,2025 nil
141,000 $0.30 August19,2026 $1,410
DarcyReding 146,000 $0.30 August19,2026 $1,460
YvonneMcLeod 136,612 $0.89 July3,2024 nil
75,000 $0.92 October21,2024 nil
35,000 $0.86 October8,2025 nil
40,000 $0.30 August19,2026 $400
ThomasDawson 150,000 $5.67 January28,2023 nil
136,612 $0.89 July3,2024 nil
75,000 $0.92 October21,2024 nil
35,000 $0.86 October8,2025 nil
35,000 $0.30 August19,2026 $350

==> picture [27 x 6] intentionally omitted <==

----- Start of picture text -----

�TABLE�7
----- End of picture text -----

Notes:�

(a) The�value�is�calculated�based�on�the�difference�between�the�market�value�of�the�underlying�shares�at�December�31,�2021�and� the�exercise�price�of�the�option.�The�closing�trading�value�on�the�Toronto�Stock�Exchange�of�a�Common�Share�on�December� 31,�2021�was�$0.31.

Incentive�Plan�Awards�–�Value�Vested�or�Earned�during�the�Year����

The�following�table�provides�the�value�vested�in�relation�to�awards�held�by�each�NEO�during�the�financial�year�ended� December�31,�2021:���

NAME OPTION�BASEDAWARDS–VALUEVESTED NON�EQUITYINCENTIVEPLAN
COMPENSATION–VALUE
EARNEDDURINGTHEYEAR
DURINGTHEYEAR(a)
($) ($)
AlfredSorensen nil 99,000
AdamGray nil 77,006
DarcyReding nil 64,171
YvonneMcLeod nil 32,287
ThomasDawson nil 80,719

TABLE�8

Notes:�

(a) Because�the�exercise�price�was�above�the�market�price�at�the�time�of�granting�and�vesting,�the�value�vested�during�the�year�is� nil.�

43

==> picture [108 x 37] intentionally omitted <==

SHARE�OWNERSHIP�POLICY���

The�Board�believes�that,�in�order�to�achieve�better�alignment�of�the�interests�of�the�directors�and�the�senior� employees�of�the�Corporation�with�those�of�the�Corporation’s�shareholders,�its�directors�and�each�senior�employee� of�the�Corporation�should�maintain�a�minimum�value�of�Common�Share�ownership.�To�that�end,�the�Corporation�has� adopted�a�mandatory�share�ownership�policy�(the�“ Share�Ownership�Policy ”)�that�requires�each�non�executive� director�(other�than�any�such�director�who�is�nominated�to�the�Board�pursuant�to�a�contractual�obligation�of�the� Corporation)�and�each�senior�employee�of�the�Corporation,�no�later�than�the�date�that�is�three�years�after�the�later� of�(a)�October�24,�2017�and�(b)�the�day�that�the�individual�first�became�a�director�or�a�senior�employee�of�the� Corporation�(the�“ Application�Date ”),�to�directly�or�indirectly�acquire,�and�to�hold�throughout�the�period� commencing�on�the�Application�Date�and�continuing�while�they�remain�a�director�or�senior�employee�of�the� Corporation,�Common�Shares�which�in�aggregate�have�a�market�value�that:�(i)�is�at�least�three�times�the�annualized� cash�compensation�that�is�paid�or�payable�to�such�director�or�three�times�the�annual�base�salary�that�is�paid�or� payable�to�the�Chief�Executive�Officer,�as�the�case�may�be,�and�(ii)�is�at�least�two�times�the�annual�base�salary�that�is� paid�or�payable�to�each�other�senior�employee�of�the�Corporation.��

Directors�and�senior�employees�of�the�Corporation�have�confirmed�their�respective�Common�Share�ownership� position,�which�is�reported�in�the�table�below�for�each�such�director�and�senior�employee,�and�each�has�also� confirmed�that�such�position�is�their�beneficial�and�legal�ownership�position.����

Each�director�and�senior�employee�to�whom�the�Share�Ownership�Policy�applies�is�prohibited�by�the�Share�Ownership� Policy�from�entering�into�any�agreement,�and�from�effecting�any�hedge�or�other�transaction,�which�has�as�one�of�its� purposes,�or�has�as�one�of�its�consequences�or�possible�consequences,�the�amelioration,�in�whole�or�in�part,�of�the� economic�impact�of�a�decrease,�or�possible�decrease,�in�the�market�value�of�the�Common�Shares�which�are�held�by� such�director�or�senior�employee�determined�in�accordance�with�this�policy.���

As�the�number�of�Common�Shares�that�are�beneficially�owned,�or�controlled�or�directed,�either�directly�or�indirectly,� by�each�non�executive�director,�and�by�each�senior�employee,�is�not�within�the�knowledge�of�the�Corporation,�the� information�in�the�following�table�has�been�provided�to�the�Corporation�as�at�the�Record�Date�by�each�such�director� or�senior�employee�personally�and�individually.���

NAMEOFEACH
DIRECTOR
ANDSENIOR
EMPLOYEE
POSITION
HELD
COMMENCEMENT
DATE
APPLICATION
DATE(a)
NUMBEROF
COMMON
SHARESHELD
ONTHE
RECORDDATE
DEEMEDVALUEOF
COMMONSHARES
HELDONTHE
RECORDDATE(b)
MYRONTÉTREAULT
Director(Chairofthe
Board)
October24,2017 October24,2020 683,284 $587,624
CHARLESBOULANGER
Director October24,2017 October24,2020 352,795 $303,404
KJELLPEDERSEN
Director June27,2018 June27,2021 128,329 $110,363
ANDREWJUDSON
Director October24,2017 October24,2020 332,697 $286,119
CHARLEGAMBA
Director June18,2019 June18,2022 26,344 $22,656
KIRENSINGH
Director May26,2020 May26,2023 232,800 $200,208

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NAMEOFEACH
DIRECTOR
ANDSENIOR
EMPLOYEE
POSITION
HELD
COMMENCEMENT
DATE
APPLICATION
DATE(a)
NUMBEROF
COMMON
SHARESHELD
ONTHE
RECORDDATE
DEEMEDVALUEOF
COMMONSHARES
HELDONTHE
RECORDDATE(b)
ALFREDSORENSEN DirectorandChief
ExecutiveOfficer
October24,2017 October24,2020 12,299,053 $10,577,186
ADAMGRAY ChiefFinancialOfficer August1,2021 August1,2024 150,000 $129,000
DARCYREDING ChiefOperatingOfficer April5,2021 April5,2024 0 $0
THOMASDAWSON SeniorVicePresident
BusinessDevelopment
October24,2017 October24,2020 2,606,415 $2,241,517

TABLE�9��

Notes:�

  • (a) “Application�Date”�in�respect�of�an�individual�is�the�date�that�is�three�years�after�the�later�of�(i)�October�24,�2017�and�(ii)�the� date�that�the�individual�first�became�a�director�or�senior�employee�of�the�Corporation.�

  • (b) The�value�of�each�Common�Share�held�on�the�Record�Date�is�deemed�under�the�Share�Ownership�Policy�to�be�the�greater�of� (i)�$0.79,�being�the�quotient�obtained�when�the�aggregate�of�the�price�of�each�Share�which�was�traded�on�a�stock�exchange� during�the�twenty�five�consecutive�calendar�days�immediately�preceding�the�Record�Date�is�divided�by�the�aggregate�number� of�Shares�which�were�traded�on�a�stock�exchange�during�the�twenty�five�consecutive�calendar�days�immediately�preceding� the�Record�Date�and�(ii)�$0.86,�being�the�quotient�obtained�when�the�aggregate�proceeds�that�were�received�by�the�Company� on�the�issuance�of�Shares�in�the�course�of�the�most�recent�private�placement�is�divided�by�the�aggregate�number�of�Shares� which�were�issued�in�the�course�of�that�private�placement.�

Based�on�the�above�table,�with�the�exception�of�Mr.�Pedersen�and�Mr.�Judson[17] ,�each�of�the�remaining�directors�and� all�senior�employees�whose�corresponding�Application�Date�precedes�the�Record�Date,�is�in�compliance�with�the� Share�Ownership�Policy.�Consistent�with�the�Share�Ownership�Policy,�the�above�information�does�not�include� Common�Shares�that�are�issuable�upon�the�exercise�of�options,�warrants�or�other�convertible�securities�of�the� Corporation.��

TERMINATION�AND�CHANGE�OF�CONTROL�BENEFITS���

As�at�December�31,�2021�the�Corporation�was�a�party�to�an�employment�agreement�(each�a�“ Contract�of�Service ”)� with�each�NEO.�

Each�Contract�of�Service�stipulates�that�the�Corporation�may�terminate�the�Contract�of�Service�without�prior�notice� irrespective�of�whether�the�termination�is�for�“just�cause”�or�is�“without�just�cause”�by�providing�to�the�particular� NEO�either:�(a)�the�minimum�period�of�prior�notice�of�termination�that�the�Corporation�is�required�to�provide�to�the� NEO�pursuant�to�the�employment�standards�legislation�applicable�in�the�province�in�which�the�NEO�is�employed�or� (b)�a�payment�in�lieu�of�notice�in�an�amount�that�is�equal�to�the�amount�of�wages�that�would�have�been�earned�by� the�NEO�during�such�minimum�period�of�prior�notice,�computed�in�accordance�with�the�employment�standards� legislation�applicable�in�the�province�in�which�the�NEO�was�employed.���

Notwithstanding�the�foregoing,�each�Contract�of�Service�also�stipulates�that�if�the�Corporation�terminates�the� employment�of�the�particular�NEO�within�one�hundred�(100)�days�before,�or�at�any�time�after,�the�day�that�a�person� or�entity�(or�a�group�of�persons�or�group�of�entities�acting�jointly�or�in�concert)�becomes�the�owner�of,�or�is�able�to� exercise�control�or�direction�over,�more�than�50%�of�the�Common�Shares�of�the�Corporation,�the�minimum�period� of�prior�notice�determined�above�shall�be�deemed�to�be�the�lesser�of�(a)�twenty�four�months�and�(b)�the�aggregate�

17�Pursuant�to�the�terms�of�the�Share�Ownership�Policy,�Mr.�Pedersen�and�Mr�Judson�have�until�June�10,�2022�to�comply.��

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of�six�months�and�one�additional�month�for�each�calendar�year�throughout�which�the�NEO�was�employed�by�the� Corporation,�by�Pieridae�Alberta�Production�Ltd.�to�the�extent�that�such�employment�transpired�after�December�20,�� 2018�or�by�any�other�corporation�affiliated�with�the�Corporation.��

Each�Contract�of�Service�includes,�among�other�things,�a�covenant�of�confidentiality,�non�solicitation�and�non� competition.�If�at�any�time�the�Contract�of�Service�is�terminated�by�the�Corporation,�or�the�employee�resigns,�the� employee�will�continue�to�be�subject�to�the�covenant�of�confidentiality�indefinitely�and�to�be�subject�to�the� covenants�of�non�solicitation�and�non�competition�for�twelve�months�thereafter.���

NAME PAYMENTINTHEEVENT
OFTERMINATIONOF
EMPLOYMENTWITH
NOCHANGEOFCONTROL
ADDITIONALPAYMENTIN
THEEVENTOFTERMINATION
OFEMPLOYMENTAFTER
ACHANGEOFCONTROL
TOTALPAYMENT
AlfredSorensen $34,615 $375,000 $409,615
AdamGray $4,587 $159,000 $163,587
DarcyReding $5,096 $139,125 $144,221
YvonneMcLeod $24,038 $187,500 $211,538
ThomDawson $19,231 $208,333 $227,564

TABLE�10

INFORMATION�CONCERNING�DIRECTOR�COMPENSATION

  • The�Corporation�has�structured�director�compensation�with�the�following�goals�in�mind:��the�imperative�of� attracting�and�retaining�knowledgeable�and�experienced�individuals�who�have�integrity�and�who�possess�the� specific�skills�commensurate�with�the�Corporation’s�requirements�and�objectives;����

  • external�market�competitiveness�for�talent�and�to�the�principles�of�equity�and�fairness�while�recognizing�the� Corporation’s�objectives�of�fiscal�prudence�and�good�governance;����

  • the�need�to�align�the�Corporation’s�long�term�success�with�the�basis�of�compensation;����

  • the�importance�of�recognizing�the�additional�responsibilities�undertaken�by�the�Chair�of�the�Board�and�the� Chair�of�each�committee;�and���

  • the�application�of�the�Share�Ownership�Policy�of�the�Corporation�on�directors�(excluding�those�directors�who� have�otherwise�waived�all�compensation).���

The�following�table�discloses�the�annual�fee�that�is�payable�by�the�Corporation,�pursuant�to�its�directors’� compensation�policy�(the�“ Directors’�Compensation�Policy ”),�to�each�non�executive�director�of�the�Corporation�in� consideration�for�the�services�that�each�performed�during�2021�as�directors�of�the�Corporation.���

POSITION VALUE
ChairmanoftheBoard $135,000
ChairmanoftheAuditCommittee $100,000
ChairmanofallotherCommittees $95,000
otherDirectors $85,000

TABLE�11

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The�Directors’�Compensation�Policy�requires�that�annual�retainer�shall�be�paid�in�cash�(the�“ Payment�in�Cash ”)�at�or� about�the�end�of�the�first�pay�period�following�the�end�of�each�quarter.�Such�Payment�in�Cash�shall�be�prorated�on� the�basis�of�time�served�as�a�director�during�the�calendar�year.��

On�July�15,�2021,�the�Board�approved�the�establishment�of�and�a�mandate�for�a�special�review�committee�(“ Special� Review�Committee ”).�Its�role�was�to�steward�a�fully�marketed�process�with�advice�from�a�qualified�financial�advisor� to�pursue�and�evaluate�all�possible�strategic�options�for�the�Corporation�to�maximise�shareholder�value.��The�Special� Review�Committee�concluded�that�the�various�alternatives�presented�were�not�compelling�relative�to�the� Corporation’s�stand�alone�prospects�and�that�the�restructuring�of�the�Corporation’s�credit�agreement�played�a� significant�role�in�reaching�those�conclusions.�On�January�11,�2022,�the�Special�Review�Committee�was�disbanded.���

The�Special�Review�Committee�comprised�of�Andrew�Judson,�who�served�as�the�Chair,�Charle�Gamba�and�Kiren�Singh� (each�of�whom�were�considered�to�be�an�independent�member).�As�the�Corporation�had�no�precedent�for�the� establishment�of�nor�compensation�payable�for�one�off�committees,�the�Board�considered�similar�transactions�and� determined�fair�compensation�for�each�Committee�member�would�be�$5,000�per�month�with�the�Chair�to�be� compensated�$7,500�per�month.���

For�the�year�ended�December�31,�2021,�the�directors�of�the�Corporation�earned�an�aggregate�total�of�$705,968�in� director’s�fees�(exclusive�of�option�based�awards).�The�directors�are�reimbursed�for�all�reasonable�expenses�incurred� in�the�execution�of�their�functions�as�directors�of�the�Corporation.�The�aggregate�total�of�such�expenses�was�$114.30.��

DIRECTOR�COMPENSATION�TABLE���

The�following�table�sets�forth�information�with�respect�to�all�compensation�elements�paid�to�the�non�executive� directors�of�the�Corporation�during�the�year�ended�December�31,�2021.��

OPTION�BASED NON�EQUITY
NAME FEESEARNED(a) AWARDS(b) INCENTIVEPLAN ALLOTHER TOTAL
COMPENSATION(d) COMPENSATION
COMPENSATION
MyronTétreault 135,000 8,065 20,000 nil $163,065
CharlesBoulanger 100,000 7,259 nil 0 $107,259
AndrewJudson 95,000 7,259 nil 45,000 $147,259
KjellPedersen 95,000 6,225 nil nil $101,225
CharleGamba 85,000 6,452 nil 30,000 $121,452
MarkHorrox(c) notapplicable notapplicable notapplicable notapplicable notapplicable
KirenSingh 90,968 7,259 nil 30,000 $128,227

TABLE�12

����Notes:�

(a) Represents�the�Payment�in�Cash�made�or�due�to�directors�for�services�in�2021,�as�set�forth�in�the�Directors’�Compensation� Policy.���

(b) To�align�with�market�practice,�the�estimated�fair�value�of�these�options�granted�on�August�19,�2021�has�been�calculated� using�the�Black�Scholes�Merton�model,�with�the�following�assumptions:�expected�volatility�of�89%,�risk�free�interest�rate�of� 0.60%�and�an�expected�life�of�3.3�years.�

  • (c) In�accordance�with�the�Directors’�Compensation�Policy�adopted�by�the�Corporation,�Mark�Horrox�was�not�entitled�to�receive� compensation�for�serving�as�a�director�of�the�Corporation�due�to�the�fact�that�he�was�nominated�for�election�to�the�Board� pursuant�to�an�agreement�entered�into�among�Third�Eye�Capital�Corporation,�Erikson�National�Energy�Inc.�and�the� Corporation.�

  • (d) Represents�payment�in�cash�for�the�Special�Review�Committee.

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SHARE�BASED�AND�OPTION�BASED�AWARDS���

The�following�table�provides�information�concerning�awards�to�the�non�executive�directors�of�the�Corporation�during� the�year�ended�December�31,�2021.���

OPTION�BASEDAWARDS(a)
NAME NUMBEROF
SECURITIES
UNDERLYING
UNEXERCISED
OPTIONS
OPTIONEXERCISE
PRICE
OPTION
EXPIRYDATE
VALUEOFUNEXERCISED
IN�THE�MONEY
OPTIONS(b)
MyronTétreault 50,000 $0.30 Aug19,2026 500
CharlesBoulanger 45,000 $0.30 Aug19,2026 450
AndrewJudson 45,000 $0.30 Aug19,2026 450
KjellPedersen 38,590 $0.30 Aug19,2026 386
CharleGamba 40,000 $0.30 Aug19,2026 400
MarkHorrox(c) notapplicable notapplicable notapplicable notapplicable
KirenSingh 45,000 $0.30 Aug19,2026 450

TABLE�13

���Notes:�

(a) No�share�based�awards�were�issued�during�2021.�

(b) The�closing�trading�value�on�the�Toronto�Stock�Exchange�of�a�Common�Share�on�December�31,�2021,�was�$0.31.�The�value� is�calculated�based�on�the�difference�between�the�market�value�of�the�underlying�shares�at�December�31,�2021�and�the� exercise�price�of�the�option.

(c) In�accordance�with�the�Directors’�Compensation�Policy�adopted�by�the�Corporation�Mark�Horrox�is�not�entitled�to�receive� compensation�for�serving�as�a�director�of�the�Corporation�due�to�the�fact�that�he�was�nominated�for�election�to�the�Board� pursuant�to�an�agreement�entered�into�among�Third�Eye�Capital�Corporation,�Erikson�National�Energy�Inc.�and�the� Corporation.�

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INCENTIVE�PLAN�AWARDS�–�VALUE�VESTED�OR�EARNED�DURING�THE�YEAR���

The�following�table�provides�the�value�vested�in�relation�to�awards�held�by�each�non�executive�director�during�the� financial�year�ended�December�31,�2021����

NAME OPTION�BASEDAWARDS
(VALUEVESTEDDURING
THEYEAR)(a)
SHARE�BASEDAWARDS(VALUE
VESTEDDURINGTHEYEAR)(b)
MyronTétreault nil nil
CharlesBoulanger nil nil
KjellPedersen nil nil
AndrewJudson nil nil
CharleGamba nil nil
MarkHorrox(c) notapplicable notapplicable
KirenSingh nil nil

TABLE�14

Notes:�

(a) All�options�granted�to�non�executive�directors�vest�immediately�at�the�time�of�grant.�Because�the�exercise�price�was�above� the�market�price�at�the�time�of�granting�and�vesting,�the�value�vested�during�the�year�is�nil.��

(b) No�share�based�awards�were�issued�to�directors�during�2021.

(c) In�accordance�with�the�Directors’�Compensation�Policy�adopted�by�the�Corporation�Mark�Horrox�is�not�entitled�to�receive� compensation�for�serving�as�a�director�of�the�Corporation�due�to�the�fact�that�he�was�appointed,�or�was�nominated�for� election,�to�the�Board�at�the�request�of�a�principal�shareholder�that�owns�more�than�10%�of�the�issued�and�outstanding� Common�Shares.��

INDEMNIFICATION�OF�DIRECTORS�AND�SENIOR�MANAGEMENT���

The�Corporation�covenants�to�indemnify�and�save�harmless�the�directors�and�senior�management�of�the�Corporation� and�its�affiliated�entities�from�and�against�any�and�all�losses,�liabilities,�claims,�damages,�fines,�penalties,�costs,� charges�or�expenses�(including,�but�not�limited�to,�an�amount�paid�to�settle�any�action�or�to�satisfy�any�judgment,� legal�fees�on�a�solicitor�and�client�basis,�other�professional�fees,�out�of�pocket�expenses�for�attending�proceedings� including�discoveries,�trials,�hearings�and�meetings,�and�any�amount�for�which�the�indemnified�is�liable�by�reasons� of�any�statutory�provision�whether�civil,�criminal�or�otherwise,�and�whether�such�claim�is�anticipated,�threatened,� pending,�commenced,�continued�or�completed�and�the�foregoing�includes�any�appeal,�as�well�as�the�amount�of�any� taxes�or�interest�payable�as�a�result�of�other�payments�made�thereunder)�suffered�or�incurred�by�the�indemnified,� directly�or�indirectly,�as�a�result�or�by�reason�of�the�indemnified�being�or�having�been�a�director�or�officer�of�the� Corporation�or�any�of�its�affiliated�entities�or�by�reason�of�any�action�taken�or�not�taken�by�the�indemnified�in�the� capacity�of�director�or�officer�of�the�Corporation�or�of�any�of�its�affiliated�entities,�provided�that�he�or�she�acted� honestly�and�in�good�faith�with�a�view�to�the�best�interests�of�the�Corporation,�and,�in�the�case�of�a�criminal�or� administrative�action�or�proceeding,�that�he�or�she�had�reasonable�grounds�for�believing�that�his�or�her�conduct�was� lawful.�The�policy�provides�further�that�such�costs,�charges�or�expenses�must�not�be�suffered�or�incurred�as�a�result� of�the�fraud,�dishonesty�or�willful�default�by�the�indemnified.��

LIABILITY�INSURANCE�FOR�DIRECTORS�AND�SENIOR�MANAGEMENT���

The�Corporation�maintains�a�policy�of�insurance�for�the�benefit�of�its�directors�and�members�of�its�senior� management�which�cover�them�from�losses�(including�damages,�costs�and�similar�amounts)�which�they�suffer�or� incur�as�a�result�or�by�reason�of�being,�or�having�been,�a�director�or�a�member�of�its�senior�management�except�to�

49

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the�extent�that�such�losses�are�suffered�or�are�incurred�as�a�result�of�their�own�fraud,�dishonesty�or�willful�default.� The�insurance�policy,�effective�October�1,�2021,�and�expiring�on�September�30,�2022,�provides�coverage�of�$20� million�per�event�and�per�policy�year.��

EQUITY�COMPENSATION�PLAN�INFORMATION�

Other�than�the�Stock�Option�Plan�Number�One�and�Stock�Option�Plan�Number�Two,�the�Corporation�does�not� maintain�any�other�compensation�plans�under�which�Common�Shares�are�authorized�for�issuance.�The�following� table�sets�forth�information�regarding�the�Corporation’s�Stock�Option�Plans�as�at�December�31,�2021:��

PLANCATEGORY NUMBEROFCOMMON
SHARESTOBEISSUED
UPONEXERCISEOF
OUTSTANDINGOPTIONS
WEIGHTED�AVERAGE
EXERCISEPRICEOF
NUMBEROFCOMMONSHARES
REMAININGAVAILABLEFOR
FUTUREISSUEUNDEREUITY
OUTSTANDINGOPTIONS Q
COMPENSATIONPLANS(a)
Equitycompensationplansapprovedby
securityholders(i.e.StockOptionPlan
NumberOne)
4,567,690(b) $1.47 8,724,122(c)
Equitycompensationplansnot
approvedbysecurityholders(i.e.
StockOptionPlanNumberTwo)
2,472,775(d) $0.90 0(e)
Total 7,040,465 $1.27 8,724,122

TABLE 15�

Notes:�

  • (a) The�number�of�Common�Shares�remaining�available�for�future�issuance�under�equity�compensation�plans�exclude�the� number�of�Common�Shares�that�are�to�be�issued�upon�the�exercise�of�the�options�which�are�currently�outstanding.��

  • (b) Represents�the�number�of�Common�Shares�to�be�issued�upon�exercise�of�outstanding�options�that�were�granted�under�the� Stock�Option�Plan�Number�One�with�the�approval�of�the�Board.�

  • (c) Represents�the�number�of�Common�Shares�remaining�available�for�future�issuance�under�the�Stock�Option�Plan�Number� One�excluding�the�number�of�Common�Shares�remaining�available�for�future�issuance�under�the�Stock�Option�Plan�Number� Two.��

  • (d) Represents�the�number�of�Common�Shares�to�be�issued�upon�exercise�of�outstanding�options�that�were�granted�under�the� Stock�Option�Plan�Number�Two�with�the�approval�of�the�Board.�

  • (e) The�Corporation�does�not�intend�in�the�future�to�grant�any�stock�options�under�Stock�Option�Plan�Number�Two.�Therefore,� all�stock�options�granted�in�the�future�will�be�granted�under�Stock�Option�Plan�Number�One,�as�amended.�

As�at�the�Record�Date,�the�number�of�common�shares�remaining�available�for�future�issue�under�the�Amended�and� Restated�Stock�Option�Plan�is�8,724,122.��

Stock�Option�Plans���

As�of�the�Record�Date�stock�options�for�the�issuance�of�a�total�of�157,681,871 Common�Shares�are�outstanding.�See� the�section�entitled� “Information�Concerning�Executive�Compensation”� for�additional�information�pertaining�to�stock� options�held�by�the�executive�officers�and�the�directors�of�the�Corporation.�

INDEBTEDNESS�OF�DIRECTORS�AND�EXECUTIVE�OFFICERS

None�of�the�current�or�former�directors,�executive�officers�or�employees�of�the�Corporation,�nor�any�associate�or� affiliate�of�any�of�them,�is�or�was�indebted,�directly�or�indirectly,�to�the�Corporation�or�any�of�its�subsidiaries�at�any� time�since�January�1,�2021.����

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INTEREST�OF�INFORMED�PERSONS�IN�MATERIAL�TRANSACTIONS

Other�than�as�disclosed�in�this�Circular,�there�were�no�material�interests,�direct�or�indirect,�of�any�director�or� executive�officer�of�the�Corporation,�any�proposed�director�of�the�Corporation,�any�other�“informed�person”�(as�such� term�is�defined�in�NI�51�102�–� Continuous�Disclosure�Obligations ),�any�person�who,�to�the�knowledge�of�the�directors� or�officers�of�the�Corporation,�beneficially�owns�or�exercises�control�or�direction�over�securities�carrying�more�than� 10%�of�the�voting�rights�attached�to�any�class�of�outstanding�voting�securities�of�the�Corporation,�or�any�associate� or�affiliate�of�any�of�the�foregoing,�in�any�transaction�since�January�1,�2021�or�in�any�proposed�transaction�which�has� materially�affected,�or�would�materially�affect,�the�Corporation�or�any�of�its�subsidiaries.����

MANAGEMENT�CONTRACTS���

Although�the�Corporation�and�certain�of�its�subsidiaries�do�regularly�engage�persons�under�contracts�for�service,� none�of�those�persons�have�authority�to�enter�into�legal�relations�for�or�on�behalf�of�the�Corporation�or�those� subsidiaries�or�the�authority�to�incur�expenses�or�liabilities�on�their�behalf.��Accordingly,�there�are�no�management� functions�of�the�Corporation�or�any�of�its�subsidiaries�that�are�performed�to�any�substantial�degree�by�persons�other� than�their�respective�directors�or�executive�officers.���

INFORMATION�CONCERNING�GOVERNANCE���

BOARD�OF�DIRECTORS���

The�mandate�of�the�Board�is�to�supervise�the�management�of�the�affairs�of�the�Corporation�and�to�act�in�the�best� interests�of�the�Corporation.�The�Board�has�a�written�mandate�which�includes�a�position�description�of�the�Chair,� the�text�of�which�is�reproduced�in�Schedule�B�to�this�Circular.���

���

The�Board�meets�at�least�once�quarterly�and�at�each�meeting�it�reviews�the�activities�of�the�Corporation.�The� frequency�of�the�meetings�of�the�Board�and�the�nature�of�the�items�on�the�agenda�will�vary�depending�on�the� activities�and�priorities�of�the�Corporation.�The�non�executive�directors�do�not�hold�regularly�scheduled�meetings�at� which�members�of�management�are�not�in�attendance.�However,�during�each�meeting�of�the�Board�and�each� meeting�of�its�committees�an�in�camera�session�is�held�which�excludes�members�of�management�(including�directors� who�hold�an�executive�office).�������

Independent�members�of�the�current�Board�are�Myron�Tétreault,�Charles�Boulanger,�Andrew�Judson,�Kjell�Pedersen,� Charle�Gamba,�and�Kiren�Singh.�Alfred�Sorensen�is�deemed�to�be�a�non�independent�director�of�the�Corporation� pursuant�to�relevant�securities�legislation.��Of�the�director�nominees�being�proposed�for�election�on�pages�25�to�26� of�this�Circular,�Alfred�Sorensen�remains�the�only�non�independent�director.��

Each�director,�whether�or�not�independent,�is�expected�to�exercise�independent�judgement�at�all�times�when� discharging�their�responsibilities�as�a�director�of�the�Corporation.��The�Board�is�able�to�exercise�independent� supervision�over�management�due�to�the�fact�that�a�majority�of�the�members�of�the�Board�and�of�each�of�its� committees�is�composed�of�non�executive�directors�and�at�every�meeting�of�the�Board�and�of�each�of�its�committees,� the�non�executive�directors�on�the�Board�and�each�committee�meet�in�camera�in�the�absence�of�management.��In� addition,�the�Board’s�responsibilities�include�the�appointment�of�the�CEO,�the�approval�of�the�CEO’s�primary�duties� as�well�as�the�terms�and�conditions�(including�compensation)�of�the�CEO’s�employment�by�the�Corporation.��The�role� and�responsibilities�of�the�CEO�are�delineated�and�described�in�the�Mandate�of�the�Board�and�in�the�various�policies� approved�by�the�Board�and�adopted�by�the�Corporation,�including�the�Policy�Establishing�Financial�Authorities.��

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ORIENTATION�AND�CONTINUING�EDUCATION��

Directors�keep�themselves�informed�and�receive�copies�of�all�up�to�date�required�information�on�boards�of�directors� or�committees.�Due�to�the�limited�number�of�directors�and�the�emerging�nature�of�the�Corporation,�no�formal� training�system�has�been�established.��However,�upon�election�to�the�board,�new�directors�are�provided�with�copies� of�all�mandates,�policies�and�other�key�documents,�and�are�given�an�orientation�by�the�Chairman�and�CEO.��As�well,� they�are�provided�with�opportunities�to�meet�with�key�management�personnel�and�to�visit�corporate�sites�in�order� to�familiarize�themselves�with�the�operations�of�the�Corporation.�Directors�are�expected�to�update�their�knowledge� base�on�relevant�matters.�No�formal�continuing�education�program�has�been�established,�but�many�of�the�directors� have�pursued�continuous�learning�opportunities�independently.��

ETHICAL�BUSINESS�CONDUCT��

The�directors�and�senior�management�of�the�Corporation�lead�by�example�in�setting�the�highest�standards�in�ethical� business�conduct.��

The�Board�has�adopted�a�written�code�of�ethical�conduct�for�the�directors,�officers�and�other�employees�of�the� Corporation.�The�code�of�ethical�conduct�is�posted�on�the�website�which�the�Corporation�maintains�at� https://www.pieridaeenergy.com.���

In�addition,�the�Corporation�has�adopted�and�maintains�a�whistleblower�policy�whereby�individuals�are�invited�to� report�incidents�of�actual�or�suspected�non�compliance�with�the�code�of�conduct,�or�any�policy�adopted�by�the� Corporation,�to�the�Chair�of�the�Audit�Committee�via�a�third�party�email�address.�All�such�reports�are�investigated�in� accordance�with�the�whistleblower�policy.���

The�Board�has�approved,�and�the�Corporation�has�adopted,�a�disclosure�policy�which�requires�inter�alia�the�disclosure� of�conflicts�of�interest.�When�the�Board�becomes�aware�of�a�transaction�or�an�agreement�in�which�a�director�or� executive�officer�has�a�material�interest,�that�transaction�or�agreement�is�carefully�considered�by�those�directors� who�do�not�have�a�conflict�of�interest�and�is�discussed�and�voted�upon�by�them�without�the�participation�of�any� director�or�executive�officer�who�has�a�conflict�of�interest.��

ESG�COMMITMENT�

On�June�22,�2021�the�Corporation�launched�its�inaugural�ESG�Report,�a�copy�of�which�can�be�downloaded�at� https://pieridaeenergy.com/our�responsibility/esg�report.�This�report�defined�the�top�material�ESG�risks�and� opportunities�and�the�Corporation�made�a�number�of�commitments�including:��

  • Achieving�net�zero�emissions�by�2050,�with�plans�to�use�carbon�sequestration�and�other�technologies,�as�part� of�the�global�transition�to�a�low�carbon�energy�economy;�

  • Growing�and�honouring�relationships�with�the�Indigenous�Peoples�of�Canada�based�on�the�principles�of�trust,� mutual�respect,�fairness,�openness,�transparency�and�reconciliation;�

  • Being�a�good�neighbour�through�constructive�community�and�stakeholder�engagement�and�support�in�the� communities�where�we�live�and�operate;�

  • Meeting�our�Path�to�Zero�goals�for�Health,�Safety�and�Environment,�progressing�safety�competence,� safeguarding�our�culture�and�upholding�our�reputation�for�compliance;�and�

  • Building�a�diverse�culture�and�workplace�through�a�strong�and�sustainable�governance�framework.�

The�ESG�Report�will�be�updated�in�Fall�2022.��

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NOMINATION�OF�DIRECTORS��

The�Nomination�&�Compensation�Committee�is�responsible�for�identifying�and�assessing�new�candidates�for� nomination�and�election�to�the�Board.�The�members�of�the�Nomination�&�Compensation�Committee�and�the�CEO� identify�the�critical�skills�that�are�underrepresented�on�the�Board�and�they�collectively�identify�and�interview� potential�candidates�that�possess�those�critical�skills.���

The�Governance�&�ESG�Committee[18] �is�responsible�for�reviewing�and�assessing�the�size,�composition�and�operation� of�the�Board�and�its�committees�to�ensure�effective�decision�making�and�to�periodically�assess�and�review�the�skills,� areas�of�expertise,�backgrounds,�independence�and�qualifications�of�each�of�the�existing�members�of�the�Board.��

The�Board�regularly�considers�its�size�when�it�considers�the�number�of�directors�to�recommend�to�the�Shareholders� for�election�at�the�annual�meeting�of�shareholders,�taking�into�account�the�number�required�to�carry�out�the�Board's� duties�effectively�and�to�maintain�a�diversity�of�view�and�experience.��

INFORMATION�CONCERNING�DIVERSITY���

DIVERSITY�STATEMENT����

The�Corporation�values�the�benefits�that�diversity�can�bring�to�its�Board,�senior�management�team�and�employee� group.��These�benefits�include�the�promotion�of�differing�perspectives�and�the�broadening�of�ideas�while�improving� oversight,�decision�making�and�governance.��Moreover,�diversity�on�the�Board�and�the�senior�management�team� evidences�the�Corporation’s�dedication�to�diversity�at�all�levels�within�the�organization�and�its�commitment�to�foster� an�inclusive�corporate�culture�that�is�based�on�merit�and�is�free�of�bias�whether�conscious�or�unconscious.���

The�Corporation�believes�that�promotion�of�diversity�within�the�organization�is�best�served�through�an�objective� evaluation�of�the�knowledge,�experience,�expertise�and�backgrounds�of�each�nominee�for�director,�and�each� potential�employee,�in�close�proximity�to�the�needs�of�the�Corporation�and�enhanced�diversity�but�without�undue� focus�on�any�single�diversity�characteristic.�The�Corporation�at�all�times�strives�to�maintain�a�Board�and�a�senior� management�team�which�is�comprised�of�talented�and�dedicated�individuals�with�a�diverse�mix�of�knowledge,� experience,�expertise�and�backgrounds�who�collectively�are�able�to�execute�upon�the�strategic�objectives�of�the� Corporation�while�reflecting�the�diversity�within�the�society�in�which�the�Corporation�operates.�Thus,�the� Corporation�will�always�consider�candidates�based�on�objective�criteria�having�due�regard�to�the�benefits�of�diversity� and�the�needs�of�the�Corporation�when�assessing�the�composition�of�the�Board,�the�senior�management�team�and� employee�group�and�when�identifying�suitable�candidates�for�election�or�appointment�to�the�Board�or�for� employment�at�every�level.���

CANADA�BUSINESS�CORPORATIONS�ACT�REQUIRED�DISCLOSURE�ON�DIVERSITY

The�following�information�is�disclosed�by�the�Corporation�pursuant�to�Section�172.1�of�the�CBCA�and�Part�8.2�of�the� Canada�Business�Corporations�Regulations,�2001�SOR/2001�512,�as�amended�(collectively,�the�“ Applicable� Legislation ”).��

18�Prior�to�May�27,�2021�this�was�the�remit�of�the�Governance�&�Compensation�Committee

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For�the�purposes�of�complying�with�these�disclosure�obligations�under�Applicable�Legislation,�“designated�groups”� means�women,�Aboriginal�peoples[19] ,�persons�with�disabilities[20] �and�members�of�visible�minorities[21] �and,�at�the� election�of�the�Corporation,�includes�LGBT�persons[22] �and�“members�of�senior�management”�means�the�CEO,�CFO,� COO,�Chair�of�the�Board�of�Directors�and�each�vice�president�and�senior�vice�president.��

As�stated�in�its�written�diversity�statement,�the�Corporation�values�the�benefits�that�diversity�can�bring�to�its�Board,� management�and�employees.��Thus,�the�level�of�the�representation�of�designated�groups�on�its�Board�and�among� members�of�senior�management�will�be�considered�by�the�Corporation�among�the�relevant�factors�in�identifying�and� nominating�candidates�for�election�or�re�election�on�the�Board�and�in�appointing�members�of�senior�management.�� That�said,�at�this�time�the�Corporation�has�not,�for�any�designated�group,�established�a�target�number�or�a� percentage,�or�a�range�of�target�numbers�or�percentages,�for�members�of�that�group�to�hold�positions�on�its�Board� or�to�be�members�of�senior�management�by�a�specific�date.��Each�candidate�for�nomination�to�the�Board�or�for� membership�to�senior�management�must�be�evaluated�on�a�broad�spectrum�of�criteria�(including�their�degree�of� diversity)�and�in�each�case,�the�Corporation�must�engage�the�best�candidate�for�each�position.

As�of�the�Record�Date,�the�following�table�discloses�the�current�level�of�diversity�on�the�Corporation’s�Board�and� among�the�membership�of�senior�management.�

BOARD BOARD SENIORMANAGEMENT SENIORMANAGEMENT
NUMBER % NUMBER %
WOMEN 1 20% 1 14.2%
ABORIGINALPEOPLES 0 0% 0 0%
PERSONSWITHDISABILITIES 0 0% 0 0%
MEMBERSOFVISIBLEMINORITIES 1 20% 1 14.2%
LGBTPERSONS 0 0% 0 0%

TABLE 17����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������

With�the�adoption�of�its�written�diversity�statement,�the�Corporation�will�thereafter�monitor�the�level�of�diversity,� including�with�reference�to�each�designated�group,�that�exists�within�the�organization�and�will�prepare�a�written� diversity�report�at�least�annually�that�discloses�the�level�of�that�diversity�that�exists�at�that�time�on�the�Board,�among� the�members�of�senior�management�and�within�the�broader�employee�group.�It�is�anticipated�that�over�time,� progress�will�be�evident�from�a�chronological�comparison�of�the�results�disclosed�in�these�written�diversity�reports.��

The�Corporation�conducted�its�annual�diversity�survey�among�its�directors,�members�of�senior�management�and� employees�in�February�2022.��The�survey�is�undertaken�on�a�confidential�basis�and�participation�was�encouraged�but� was�not�mandatory.��An�email�invitation�to�participate�in�the�diversity�survey�was�sent�to�two�hundred�and�sixty�four� individuals�constituting�all�of�the�Corporation’s�directors�and�employees.��One�hundred�and�sixty�eight�responses� were�received�representing�a�63%�response�rate.���

19“Aboriginal�peoples”�means�persons�who�are�Indians,�Inuit�or�Métis.��

20�“Persons�with�disabilities”�means�persons�who�have�a�long�term�or�recurring�physical,�mental,�sensory,�psychiatric�or�learning�

impairment�and�who�either�(a)�consider�themselves�to�be�disadvantaged�in�employment�by�reason�of�that�impairment,�or�(b)�believe�that� a�employer�or�potential�employer�is�likely�to�consider�them�to�be�disadvantaged�in�employment�by�reason�of�that�impairment,�and� includes�persons�whose�functional�limitations�owing�to�their�impairment�have�been�accommodated�in�their�current�job�or�workplace.��

21�“Members�of�visible�minorities”�means�persons,�other�than�Aboriginal�peoples,�who�are�non�Caucasian�in�race�or�non�white�in�colour.���

22�“LGBT�persons”�means�persons,�other�than�members�of�any�other�designated�group,�who�self�identify�as�either�lesbian,�gay,�bisexual�or� transgender.

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The�following�table�depicts�certain�of�the�personal�characteristics�of�the�individuals�who�participated�in�the�diversity� survey.

NUMBEROF
INDIVIDUALS
%
WOMEN 33 19.64%
ABORIGINALPEOPLES 9 5.36%
PERSONSWITHDISABILITIES 9 5.36%
MEMBERSOFVISIBLEMINORITIES 20 11.98%
LGBTQ2S+PERSONS 12 7.19%

TABLE 18�����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������

The�Corporation�has�neither�adopted�term�limits�for�the�directors�on�its�Board�nor�adopted�any�formal�mechanisms� of�board�renewal.��However,�the�Nomination�&�Compensation�Committee�regularly�reviews�the�size�and�composition� of�the�Board�and�makes�appropriate�recommendations�to�the�Board�to�ensure�that�it�has�the�necessary�mix�of�skill� sets�and�backgrounds�to�effectively�perform�its�functions.��������

COMPENSATION��

Please�refer�above�to�the�sections�entitled� “Information�Concerning�Executive�Compensation” �and� “Information� Concerning�Director�Compensation” .��

BOARD�COMMITTEES��

In�exercising�its�mandated�duties,�in�2021�the�Board�undertook�a�review�and�assessment�of�the�effectiveness�and� contributions�of�individual�directors�and�the�committees.�Driven�by�the�changing�needs�of�the�Corporation,�it�was� determined�that,�effective�May�27,�2021,�the�committees�would�be�expanded�from�three�to�four�in� acknowledgement�of�the�growing�importance�ESG�plays�within�the�Corporation.�Accordingly,�the�membership�and� mandates�of�the�committees�were�reviewed�and,�where�appropriate,�refreshed.�This�included�the�movement�of� board�members�within�committees�and�the�updating�of�the�mandates�for�the�Governance�&�ESG�Committee,�the� Nomination�&�Compensation�Committee�and�the�Reserves�&�HSE�Committee.�The�Audit�Committee�and�the�Board� of�Directors�mandates�remained�unchanged.��

The�Board�now�has�four�standing�committees�as�indicated�below.��

PREVIOUSCOMMITTEES NEWCOMMITTEES
AuditCommittee AuditCommittee
Reserves&HSE Reserves&HSE
Governance&Compensation Governance&ESG
Nomination&Compensation

The�Board�will�continue�to�ensure�the�proper�functioning�of�the�Board,�the�Audit�Committee,�the�Governance�&�ESG� Committee,�the�Nomination�&�Compensation�Committee�as�well�as�the�Reserves�&�HSE�Committee�by�periodically� reviewing�and�assessing�the�effectiveness�and�contribution�of�individual�directors.�The�Board�has�adopted�a�written� mandate�of�each�committee.�Each�such�mandate�includes�a�position�description�of�the�Chair�of�each�committee.���

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Audit�Committee���

Information�regarding�the�composition�of�the�Audit�Committee,�the�relevant�education�and�experience�of�each�audit� committee�member,�the�amount�and�nature�of�the�fees�that�were�paid�by�the�Corporation�to�its�external�auditors� and�a�copy�of�the�mandate�of�the�Audit�Committee�are�disclosed�on�page�36�and�Appendix�D�of�the�annual� information�form�of�the�Corporation�for�the�year�ended�December�31,�2021,�a�copy�of�which�can�be�found�under�the� Corporation’s�profile�on�SEDAR�at www.sedar.com�and�which�was�filed�on�SEDAR�on�March�24,�2022.��

Governance�&�ESG�Committee�

The�Corporation�has�established�a�governance�&�ESG�committee�(the�“ Governance�&�ESG�Committee ”)�the�primary� objective�of�which�is�to�assist�the�directors�of�the�Corporation�in�satisfying�their�responsibilities�in�respect�of�the� effective�governance�of�the�Corporation�and�relevant�environment,�social�and�other�governance�matters.

Specifically,�the�Governance�&�ESG�Committee�is�charged�with�the�overall�responsibility�for�the�adequacy�and� effectives�of�the�Board’s�governance�practices.�This�includes,�amongst�other�things,�periodically�assessing,�reviewing,� and�making�appropriate�recommendations�on�its�governance�practices,�the�composition,�and�skills�of�serving� directors�and�new�directors�as�appropriate.��

It�also�provides�oversight�of�the�Corporation’s�global�human�resources�strategy,�policies�and�programs�with�special� focus�on�management�development�and�succession�and�leadership�planning.�

With�regards�to�the�Corporation’s�ESG�framework,�it�will�review�and�offer�guidance�and�recommendations�on�the� Corporation’s�ESG�framework�and�consider�and�recommend�policies�that�conform�with�this�framework.�In� conjunction�with�the�CEO,�it�shall�assist�the�Board�in�setting�the�Corporation’s�general�strategy�on�ESG�matters� including,�amongst�other�things,�the�identification�and�management�of�material�ESG�risks�and�opportunities,� reviewing�any�concomitant�ESG�goals,�setting�realistic�future�targets�and�the�integration�of�such�matters�into�the� business�strategy,�processes�and�compensation�philosophy�of�the�Corporation.��

The�Governance�&�ESG�Committee�is�currently�comprised�of�and�Kiren�Singh,�who�serves�as�the�Chair),�Kjell�Pedersen� and�Charle�Gamba�(each�of�whom�is�considered�to�be�an�independent�member).��

Ms.�Singh�has�more�than�25�years�of�experience�in�the�energy�industry�including�executive�roles�for�publicly�traded� corporations.��She�has�served�as�a�board�member�and�on�Human�Resource�and�Governance�committees�which�has� included�oversight�of�strategic�planning�and�development,�monitoring�and�measuring�executive�objective�setting,� performance�metrics�and�compensation�programs�for�private�and�crown�corporations.��Ms.�Singh�completed�her� Directors�Education�Program�and�received�her�ICD.D�designation�which�included�education�on�the�role�of�the� compensation�committee�and�evaluating�the�CEO�and�succession�planning.����

Mr.�Pedersen�has�filled�top�management�positions,�including�CEO,�in�large�international�and�national�oil�and�gas� companies�for�more�than�twenty�years�in�various�countries.�He�has�also�served�as�Chairman�of�boards�and�director� of�compensation�committee�in�other�public�and�private�companies�in�the�industry.�Mr.�Pedersen�has�through�his�MSc� education,�people�management�courses�and�extensive�experience�in�our�industry�in�several�countries,�gained� knowledge�of�the�opportunities�and�risks�associated�with�different�compensation�systems.�Through�his�board� memberships�in�private�and�public�companies�he�has�also�gained�a�good�understanding�of�corporate�governance�and� compensation�systems�relative�to�expectations�of�employees,�shareholders�and�the�public.���

Mr.�Gamba�founded�Canacol�Energy�Ltd.�in�2008.�He�has�held�a�variety�of�technical�and�management�roles�with�major� and�mid�sized�international�oil�companies,�with�the�majority�of�his�professional�career�focused�on�E&P�in�South�

56

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America.�Prior�to�creating�Canacol,�Mr.�Gamba�was�Vice�President�of�Exploration�for�Occidental�Oil�&�Gas�Company� based�in�Bogota,�Colombia.�In�his�8�years�with�Occidental,�he�has�lived�and�worked�in�Ecuador,�Qatar,�Colombia,�and� the�United�States,�working�in�a�variety�of�technical�and�management�roles.�He�started�his�career�as�a�geologist�with� Imperial�Oil�in�Calgary,�and�holds�an�MSc�and�PhD�in�Geology.�

Reserves�&�Health,�Safety�&�Environment�Committee�

The�Reserves�&�Health,�Safety�and�Environment�Committee�(“ Reserves�&�HSE�Committee ”)�is�responsible�for,�among� other�things,�consulting�with�the�Corporation's�senior�personnel�responsible�for�oil�and�gas�reserves�and�other� information�regarding�the�Corporation's�oil�and�gas�activities,�and�reviewing�and�reporting�to�the�Board�on:�(i)�the� Corporation's�procedures�relating�to�the�disclosure�of�such�information;�(ii)�the�appointment�of,�or�any�changes�to,� the�independent�consultants�engaged�to�report�on�the�Corporation's�oil�and�gas�reserves�pursuant�to�the� requirements�of�National�Instrument�51�101� Standards�of�Disclosure�for�Oil�and�Gas�Activities �(“ NI�51�101 ”);�and�(iii)� the�Corporation's�procedures�for�providing�information�to�the�consultants.���

The�Reserves�&�HSE�Committee�is�also�responsible�for,�among�other�things,�reviewing�the�health,�safety�and� environment�policies�of�the�Corporation�and�exercising�oversight�of�the�Corporation’s�compliance�with�all�applicable� law�in�the�conduct�of�its�activities.�Prior�to�filing�the�Statement�of�Reserves�Data�and�Other�Oil�and�Gas�Information� and�related�consultants'�report�required�under�NI�51�101,�the�Reserves�&�HSE�Committee�meets�with�responsible� management�of�the�Corporation�and�the�independent�consultants�to�review�the�evaluation�report,�and�thereafter� reports�to�the�Board�and�recommends,�as�appropriate,�the�approval,�release�and�filing�of�the�Statement�of�Reserves�� Data�and�Other�Oil�and�Gas�Information�and�related�reports�required�under�NI�51�101.���

The�Reserves�&�HSE�Committee�is�comprised�of�Kjell�Pedersen,�who�serves�as�the�Chair,�Charles�Boulanger�and�Charle� Gamba�(each�of�whom�is�considered�to�be�an�independent�member).���

Nomination�&�Compensation�Committee�

The�Corporation�has�established�the�Nomination�&�Compensation�Committee�(“ Nomination�&�Compensation� Committee ”)�the�primary�objective�of�which�is�to�assist�the�directors�of�the�Corporation�in�satisfying�their� responsibilities�in�respect�of�the�effective�management�of�its�human�resources�and�the�compensation�of�its�directors� and�the�CEO�and�the�evaluation�of�their�respective�performance.��

It�is�responsible�for�developing�and�recommending�policies�regarding�the�director�nomination�process�and�to�assess� the�qualifications,�expertise�and�characteristics�of�its�Board�members,�with�the�goal�of�developing�a�diverse,� experienced�and�high�quality�representation.��In�so�doing,�the�Committee�will�consider�such�factors�as� independence,�integrity,�diversity,�age,�skills,�financial�and�other�expertise,�breadth�of�experience,�knowledge�about� the�Corporation’s�business�or�industry�and�willingness�and�ability�to�devote�adequate�time�and�effort�to�Board� responsibilities�in�the�context�of�the�existing�composition,�other�areas�that�are�expected�to�contribute�to�the�Board’s� overall�effectiveness�and�needs�of�the�Board�and�its�committees.��

The�Nomination�&�Compensation Committee�is�also�charged�with�the�overall�responsibility�of�reviewing�and� administering�the�Corporation’s�compensation�philosophy,�establishing�and�fostering�its�compensation�policies�that� rewards�the�creation�of�shareholder�value�and�reflects�an�appropriate�balance�between�short�and�long�term� performance�and�monitoring�the�implementation�of�those�policies.�It�is�important�to�the�Corporation�to�ensure�that� it�is�capable�of�attracting,�motivating�and�retaining�individuals�who�will�contribute�to�the�success�of�the�Corporation.

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To�that�end,�the�Nomination�&�Compensation�Committee�is�specifically�responsible�for,�among�other�things,� establishing�the�overall�compensation�policies�of�the�Corporation�and�monitoring�their�implementation,�periodically� reviewing�those�policies�and�specific�compensation�practices�and�plans�of�the�Corporation�and�recommending� appropriate�changes�to�the�Board�for�consideration,�administering�the�Corporation’s�incentive�plans,�including�the� Stock�Option�Plans,�in�accordance�with�their�terms�and�recommending�to�the�Board�the�granting�of�incentives� (including�stock�option�grants)�as�appropriate.�The�Nomination�&�Compensation�Committee�periodically�reviews�and� approves�the�goals�and�objectives�of�the�Corporation�relative�to�the�evaluation�of�the�CEO’s�performance�and� compensation,�and�periodically�reviews�the�level�of�compensation�of�the�members�of�the�Board�and�its�committees� and�recommends�appropriate�changes�to�the�Board�for�consideration.�

In�discharging�its�responsibilities,�the�Nomination�&�Compensation�Committee�will�seek�the�advice�of�the�CEO.� However,�the�CEO�will�not�participate�in�the�deliberations�of�the�Nomination�&�Compensation Committee�or�the� Board�in�regard�to�the�evaluation�of�the�CEO’s�performance�or�on�matters�concerning�his�compensation.�The� Nomination�&�Compensation�may�not�delegate�any�of�its�responsibilities�under�its�mandate�to�another�entity�or�to� an�individual�without�the�approval�of�the�Board.���

The�Nomination�&�Compensation�Committee�is�comprised�of�Andrew�Judson,�who�serves�as�the�Chair,�Myron� Tétreault�and�Kiren�Singh�(each�of�whom�is�considered�to�be�an�independent�member).���

REGISTRAR�AND�TRANSFER�AGENT���

The�transfer�agent�and�registrar�for�the�Common�Shares�is�Computershare�Investor�Services�Inc.,�having�offices�at� 530�–�8th�Ave�SW,�Suite�600,�Calgary,�Alberta,�T2P�3S8.���

OTHER�BUSINESS���

Management�knows�of�no�amendment,�variation�or�other�matter�to�come�before�the�Meeting�other�than�those�set� forth�in�the�Notice�of�Meeting.�However,�if�any�other�matter�properly�comes�before�the�Meeting,�the�Common� Shares�represented�by�the�accompanying�proxy�will�be�voted�on�such�matter�in�accordance�with�the�best�judgment� of�the�person�or�persons�voting�the�proxy.���

SHAREHOLDER�PROPOSALS���

Pursuant�to�the�provisions�of�the�Canada�Business�Corporations�Act�(“CBCA”),�any�Shareholder�wishing�to�present�a� proposal�to�be�considered�for�inclusion�at�the�next�annual�meeting�of�Shareholders�in�2023�must�submit�such� proposal�to�the�Corporation�to�be�received�during�the�prescribed�period�which�is�the�60�day�period�that�begins�on� the�150th�day�before�the�anniversary�of�the�previous�annual�meeting�of�shareholders[23] .�Any�such�proposal�must� meet�all�the�requirements�of�the�CBCA�and�the�regulations.�A�shareholder�proposal�must�be�addressed�to�the� Corporate�Secretary�and�either�(i)�posted�to�Pieridae�Energy�Limited�at�308���4th�Avenue�S.W.,�Suite�3100,�Calgary,� Alberta,�Canada�T2P�0H7,�or�(ii)�emailed�to�[email protected].���

23�Pursuant�to�Section�16�of�Regulation�SOR/2022�40�when�read�in�conjunction�with�Section�137(5)(a)�of�the�CBCA.�

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ADVANCE�NOTICE�BY�LAW�

By�Law�No.3:�The�Advance�Notice�By�Law�(the�“By�Law”)�was�adopted�by�the�Board�on�February�6,�2020�and� confirmed�by�the�Shareholders�at�the�Annual�and�Special�Meeting�of�Shareholders�on�May�26,�2020.�The�by�law� establishes�the�procedures,�timeframe�and�forms�which�a�shareholder�must�follow�in�order�to�nominate�a�person�for� election�as�a�director�of�the�Corporation�at�the�Meeting.���

To�be�timely,�a�nominating�shareholder’s�notice�to�the�Corporate�Secretary�of�the�Corporation�must�be�made:��

  • (a) in�the�case�of�an�annual�meeting�(including�an�annual�and�special�meeting)�of�shareholders,�not�less�than� thirty�(30)�days�prior�to�the�date�of�the�annual�meeting�of�shareholders;�provided,�however,�that�in�the� event�that�the�annual�meeting�of�shareholders�is�to�be�held�on�a�date�that�is�less�than�fifty�(50)�days�after� the�date�on�which�the�first�public�announcement�(the�“Notice�Date”)�of�the�date�of�the�annual�meeting�was� made�by�the�Corporation,�notice�by�the�Nominating�Shareholder�may�be�made�not�later�than�the�close�of� business�on�the�tenth�(10th)�day�following�the�Notice�Date;���

  • (b) in�the�case�of�a�special�meeting�(which�is�not�also�an�annual�meeting)�of�shareholders�called�for�the�purpose� of�electing�directors�(whether�or�not�called�for�other�purposes�as�well),�not�later�than�the�close�of�business� on�the�fifteenth�(15th)�day�following�the�day�on�which�the�first�public�announcement�of�the�date�of�the� special�meeting�of�shareholders�was�made�by�the�Corporation;�and��

  • (c) in�the�case�of�an�annual�meeting�(including�an�annual�and�special�meeting)�of��shareholders�or�a�special� meeting�of�shareholders�called�for�the�purpose�of�electing�directors�(whether�or�not�also�called�for�other� purposes)�where�notice�and�access�is�used�for�delivery�of�proxy�related�materials,�not�less�than�forty�(40)� days�prior�to�the�date�of�the�meeting�(but�in�any�event,�not�prior�to�the�Notice�Date);�provided,�however,� that�in�the�event�that�the�meeting�is�to�be�held�on�a�date�that�is�less�than�fifty�(50)�days�after�the�Notice� Date,�notice�by�the�Nominating�Shareholder�shall�be�made,�in�the�case�of�an�annual�meeting�of� shareholders,�not�later�than�the�close�of�business�on�the�tenth�(10[th] )�day�following�the�Notice�Date�and,�in� the�case�of�a�special�meeting�of�shareholders,�not�later�than�the�close�of�business�on�the�fifteenth�(15[th] )�day� following�the�Notice�Date.��

  • (d) Each�of�the�notice�periods�set�forth�above�shall�reset�if�the�meeting�is�adjourned�and/or�postponed,�and�for� these�purposes�the�date�on�which�the�first�public�announcement�of�the�date�of�the�meeting�was�made�shall� be�the�date�of�the�first�public�announcement�of�the�adjournment�and/or�postponement.

Delivery�of�the�notice�must�be�addressed�for�the�attention�of�the�Corporate�Secretary�and�delivered�by�either�(i)� personal�delivery�to�Pieridae�Energy�Limited�308���4[th] �Avenue�S.W.,�Suite�3100�,�Calgary,�Alberta,�Canada�T2P�0H7��(ii)� facsimile�to�(403)�261�5902,�or�(iii)�email�to [email protected]�and�shall�be�deemed�to�have�been�given�and� made�only�at�the�time�it�is�served�by�personal�delivery,�email�or�sent�my�facsimile�transmission�(provided�that�receipt� of�confirmation�of�such�transmission�has�been�received)�to�the�Corporate�Secretary�at�the�address�noted�above.�If� delivery�or�electronic�communications�is�made�on�a�day�which�is�not�a�business�day�or�later�than�5.00�pm�Mountain� Time�on�a�day�which�is�a�business�day,�then�such�delivery�or�electronic�communication�shall�be�deemed�to�have�been� made�on�the�subsequent�day�that�is�a�business�day.��

The�chair�of�the�meeting�shall�have�the�power�and�duty�to�determine�whether�a�nomination�was�made�in�accordance� with�the�procedures�set�forth�in�the�By�Law�and,�if�any�proposed�nomination�is�not�in�compliance�with�the�B�Law,�to� declare�that�such�defective�nomination�shall�be�disregarded.�Notwithstanding�the�foregoing,�the�Board�may,�in�its�

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sole�discretion,�waive�all�or�any�requirements�in�the�By�Law.�A�copy�of�the�By�Law�can�be�found�on�our�website� (www.pieridaeenergy.com).��

ADDITIONAL�INFORMATION���

Additional�information�relating�to�the�Corporation�can�be�found�under�the�Corporation’s�profile�on�SEDAR�at� www.sedar.com.���

Additional�financial�information�is�provided�in�the�Corporation’s�comparative�financial�statements�for�the�year�ended� December�31,�2021,�and�related�and�management�discussion�and�analysis�which�can�be�found�under�the� Corporation’s�profile�on�SEDAR�at�www.sedar.com�or�on�the�Corporation’s�website�at�www.pieridaeenergy.com.� Shareholders�may�also�obtain�these�documents,�without�charge,�upon�request�sent�by�mail�to�the�CFO�at�Pieridae� Energy�Limited,�308�–�4th�Avenue�SW,�Suite�3100,�Calgary,�Alberta,�Canada�T2P�0H7�or�sent�by�email�to� [email protected].���

APPROVAL�OF�DIRECTORS���

The�contents�and�the�sending�of�this�Circular�have�been�approved�by�the�directors�of�the�Corporation.���

DATED�as�of�the�April�12,�2022.���

“Alfred�Sorensen“�

Alfred�Sorensen��� Chief�Executive�Officer�

60

SCHEDULE�A�–�AMENDED�AND�RESTATED�STOCK�OPTION�PLAN

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1�� Definitions�and�interpretation��

1.1� Definitions���

Unless�otherwise�required�by�the�context�or�subject�matter,�the�following�terms,�as�used�herein,�have�the� meanings�set�forth�below.����

  • a) Affiliate� has�the�meaning�given�to�that�term�in�the� Securities�Act �(Alberta),�including�the�rules�and� regulations�promulgated�thereunder,�as�may�be�amended�from�time�to�time.��

  • b) Black�Out�Period� has�the�meaning�given�to�that�term�in�Section�3.4�hereof.��

  • c) Board�of�Directors �means�the�board�of�directors�of�the�Corporation.���

  • d) Business�Day �means�a�day�that�is�not�a�Saturday,�Sunday�or�a�general�holiday�in�Alberta.��

  • e) Change�of�Control �means:��

  • (i) any�transaction�(other�than�a�transaction�described�in�clause�(iii)�below)�pursuant�to�which� any�person�or�group�of�persons�acting�jointly�or�in�concert�acquires�the�direct�or�indirect� beneficial�ownership�of�securities�of�the�Corporation�representing�50%�or�more�of�the� aggregate�voting�power�of�all�of�the�Corporation’s�then�issued�and�outstanding�securities� entitled�to�vote�in�the�election�of�directors�of�the�Corporation;��

  • (ii) a�consummated�arrangement,�amalgamation,�merger,�consolidation,�take�over�bid,� compulsory�acquisition�or�similar�transaction�involving�(directly�or�indirectly)�the� Corporation�if,�immediately�after�the�consummation�of�such�arrangement,�amalgamation,� merger,�consolidation�or�similar�transaction,�the�shareholders�of�the�Corporation� immediately�prior�thereto�do�not�beneficially�own,�directly�or�indirectly,�either�(A)� outstanding�voting�securities�representing�more�than�50%�of�the�combined�outstanding� voting�power�of�the�surviving�or�resulting�entity�in�such�arrangement,�amalgamation,� merger,�consolidation�or�similar�transaction��or�(B)�more�than�50%�of�the�combined� outstanding�voting�power�of�the�parent�of�the�surviving�or�resulting�entity�in�such� arrangement,�amalgamation,�merger,�consolidation�or�similar�transaction;��

  • (iii) the�sale,�lease,�exchange,�license�or�other�disposition�of�all�or�substantially�all�of�the� Corporation’s�assets�to�a�person�other�than�a�person�that�was�an�Affiliate�of�the�Corporation� at�the�time�of�such�sale,�lease,�exchange,�license�or�other�disposition,�other�than�a�sale,� lease,�exchange,�license�or�other�disposition�to�an�entity,�more�than�fifty�percent�(50%)�of� the�combined�voting�power�of�the�voting�securities�of�which�are�beneficially�owned�by� shareholders�of�the�Corporation�in�substantially�the�same�proportions�as�their�beneficial� ownership�of�the�outstanding�voting�securities�of�the�Corporation�immediately�prior�to�such� sale,�lease,�exchange,�license�or�other�disposition;��

  • (iv) the�passing�of�a�resolution�by�the�Board�of�Directors�or�Shareholders�to�substantially� liquidate�the�assets�of�the�Corporation�or�wind�up�the�Corporation’s�business�or�significantly� rearrange�its�affairs�in�one�or�more�transactions�or�series�of�transactions�or�the� commencement�of�proceedings�for�such�a�liquidation,�winding�up�or�re�arrangement� (except�where�such�re�arrangement�is�part�of�a� bona�fide� reorganization�of�the�Corporation� in�circumstances�where�the�business�of�the�Corporation�is�continued�and�the�shareholdings� remain�substantially�the�same�following�the�re�arrangement);���

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  • (v) the�election�at�a�meeting�of�the�Corporation’s�Shareholders�of�a�number�of�directors�to�the� Board�of�Directors�who�were�not�director�nominees�proposed�to�the�Corporation’s� Shareholders�by�the�Corporation’s�prior�Board�of�Directors,�and�would�represent�a�majority� of�the�Board�of�Directors;�or��

  • (vi) the�appointment�of�a�number�of�directors�to�the�Board�of�Directors�which�would�represent� a�majority�of�the�Board�of�Directors�and�which�were�nominated�by�any�holder�of�Shares�of� the�Corporation�or�by�any�group�of�holders�of�Shares�of�the�Corporation�acting�jointly�or�in� concert�and�not�approved�by�the�Corporation’s�prior�Board�of�Directors.

  • f) Constructive Dismissal �means�constructive�dismissal�as�defined�at�common�law;�however,�it�does�not� include�any�of�the�following�with�respect�to�an�Optionee:��

  • (i) a�reduction�in�compensation�unless�greater�than�15%�of�the�Optionee's�total�compensation;��

  • (ii) a�reduction�in�compensation,�regardless�of�quantum,�where�such�reduction�in� compensation�has�been�applied�in�a�similar�manner�to�all�or�substantially�all�employees�of� the�Corporation;��

  • (iii) a�change�in�duties�where�such�change�is�reasonably�required�pursuant�to�a�reorganization� or�restructuring�of�the�Corporation;��

  • (iv) a�re�location�of�position;��

  • (v) any�material�change�to�the�Optionee’s�terms�and�conditions�of�employment�made�with�the� consent�of�the�Optionee;�and��

  • (vi) a�promotion.��

  • g) Corporation� means�Pieridae�Energy�Limited�and�any�corporation�which�it�controls�pursuant�to�the� Canada�Business�Corporations�Act .���

  • h) Date�of�Grant �in�respect�of�an�Option�means�the�date�on�which�the�Board�of�Directors�grants�the� particular�Option�in�favour�of�an�individual.���

  • i) Eligible�Persons� means�directors,�senior�executives�and�employees�of�the�Corporation�and�Service� Providers�to�the�Corporation.��

  • j) Event� has�the�meaning�given�to�that�term�in�Section�3.8�hereof.��

  • k) Exchange �means�the�Toronto�Stock�Exchange.���

  • l) Exercise�Notice �in�respect�of�an�Option�means�the�notice�regarding�the�exercise�of�the�particular� Option,�in�the�form�approved�by�the�Corporation,�duly�executed�by�the�Optionee.���

  • m) Exercise�Period �in�respect�of�an�Option�means�the�period�during�which�the�particular�Option�may�be� exercised,�which�runs�from�the�Date�of�Grant�inclusively,�provided�that�all�of�the�regulatory�approvals� have�been�obtained,�up�to�and�including�the�Expiry�Date.���

  • n) Exercise�Price� in�respect�of�an�Option�means�the�price�at�which�the�Option�may�be�exercised,�as� established�pursuant�to�Section�3.6�hereof.���

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  • o) Expiry�Date �in�respect�of�an�Option�means�the�date�established�in�respect�thereof�pursuant�to�Section� 3.3�hereof.���

  • p) Insider� has�the�meaning�given�to�that�term�in�the�TSX�Company�Manual�[1] .��

  • q) Insider�Participation�Limits �means,�collectively,�the�limits�set�out�in�Section�2.6�hereof.���

  • r) Market�Value �means�the�closing�price�of�the�Shares�on�the�Exchange�on�the�trading�day�immediately� preceding�the�Date�of�Grant.���

  • s) Notice �has�the�meaning�given�to�that�term�in�Section�3.4�hereof��

  • t) Option�Certificate �in�respect�of�an�Option�means�the�certificate�representing�the�Option.���

  • u) Option� or� Options �means,�as�the�case�may�be,�one�or�several�options�granted�pursuant�to�the�Plan�for� the�purpose�of�purchasing�Shares.���

  • v) Optionee �in�respect�of�an�Option�means�the�employee,�director,�senior�executive�or�Service�Provider,� as�the�case�may�be,�their�Personal�Representative�that�hold�the�Option.���

  • w) Personal�Representative �of�an�Optionee�means�(i)�in�the�case�of�a�deceased�Optionee,�the�Optionee’s� legatees�in�accordance�with�the�terms�and�conditions�of�the�Optionee’s�last�will�or�the�Optionee’s� representative�with�respect�to�the�Optionee’s�estate;�and�(ii)�in�the�case�of�an�Optionee�who,�for�any� reason�whatsoever,�is�incapable�of�managing�his�or�her�affairs,�the�person�legally�authorized�to�act�on� behalf�of�such�Optionee.���

  • x) Plan �means�this�Stock�Option�Plan.���

  • y) Security�Based�Compensation�Arrangement �has�the�meaning�given�to�that�term�in�the�TSX�Company� Manual�[17] .��

  • z) Service�Provider� has�the�meaning�given�to�that�term�in�the�TSX�Company�Manual�[18] .��

  • aa) Share �or� Shares �means,�as�the�case�may�be,�one�or�several�common�shares�in�the�share�capital�of�the� Corporation.���

  • bb) Shareholder� means�a�holder�of�one�or�more�Shares.�

  • cc) Successor�Corporation �has�the�meaning�given�to�that�term�in�Section�5.4�a)�hereof.���

  • dd)� Termination�Date means�the�date�on�which�an�Optionee�ceases�to�be�an�Eligible�Person�as�a�result�of�a� termination�of�employment�or�engagement�with�the�Corporation�for�any�reason,�including�death,� disability,�resignation,�or�termination�with�or�without�cause,�but�not�including�an�Optionee’s�absence� from�active�employment�or�engagement�with�the�Corporation�during�a�period�of�authorized�leave�of� absence.�For�greater�certainty,�the�Termination�Date�shall�be�the�last�day�of�the�Optionee’s�actual�and� active�employment�or�engagement�with�the�Corporation,�whether�such�day�is�selected�by�agreement� with�the�individual,�unilaterally�by�the�Corporation�and�whether�with�or�without�advance�notice�to�the��

Optionee.�No�period�of�notice,�if�any,�or�payment�instead�of�notice�that�is�given�or�that�ought�to�have� been�given�under�applicable�law,�whether�by�statute,�imposed�by�common�law�or�otherwise,�in�respect� of�such�termination�of�employment�or�engagement�that�follows�or�is�in�respect�of�a�period�after�the� Optionee’s�last�day�of�actual�and�active�employment�or�engagement�will�be�considered�as�extending� the�Optionee’s�period�of�employment�or�engagement�for�the�purposes�of�determining�his�or�her� entitlement�under�this�Plan.��

  1. See�“Interpretation”�in�the�TSX�Company�Manual�

  2. Section�613(b)�of�the�TSX�Company�Manual� 3. ibid .�

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1.2�� Governing�Law���

The�Plan�is�established�pursuant�to�the�laws�in�effect�in�the�Province�of�Alberta�and�the�policies�of�the�Exchange,� and�its�provisions�shall�be�interpreted�pursuant�to�such�laws�and�policies.���

1.3�� Headings���

The�headings�herein�are�for�the�convenience�of�the�reader�and�shall�in�no�way�affect�the�interpretation�of�the� Plan.���

2�� Purpose�and�Participation��

2.1�� Purpose���

The�Plan�was�designed�to�allow�the�Corporation,�through�Shares,�to�retain�and�motivate�competent�directors,� senior�executives,�employees�and�Service�Providers,�to�compensate�directors,�senior�executives,�employees�and� Service�Providers�to�whom�the�Board�of�Directors�may�grant�Options�pursuant�to�the�Plan�from�time�to�time� further�to�their�efforts�in�attaining�the�goals�of�the�Corporation�and�to�allow�such�individuals�to�purchase�Shares� as�an�investment,�and�to�encourage�them�to�act�in�this�manner.���

2.2�� Participation���

From�time�to�time,�the�Board�of�Directors�will�designate,�at�its�discretion,�the�Eligible�Persons�who�are�to�be� granted�Options�and�will�establish�the�number�of�Shares�with�respect�to�which�each�Option�may�be�exercised� and�grant�the�Options�based�on�these�decisions.�The�granting�of�an�Option�to�an�Eligible�Person�will�not,�at�any� time,�entitle�such�person�to�receive�Options�thereafter,�nor�will�it�prevent�such�person�from�receiving�Options� thereafter.���

2.3�� Notice�of�Granted�Options���

  • a) After�the�Board�of�Directors�has�approved�the�granting�of�an�Option,�any�member�of�the�Board�of� Directors�or�any�other�individual�designated�by�the�Board�of�Directors�for�such�purpose�shall�give� written�notice�of�the�grant�(a� Notice )�to�the�applicable�Eligible�Person�and�shall�include�therewith� the�Option�Certificate�representing�the�Option�thus�granted.���

  • b) In�the�case�of�an�Option�which�is�proposed�to�be�granted�to�an�employee�of�the�Corporation�or�a� Service�Provider,�no�such�Option�shall�be�granted�by�the�Board�of�Directors�to�such�individual�unless� and�until�the�Corporation�has�declared�that�such�individual�is�a� bona�fide �employee�of�the� Corporation�or�a�Service�Provider,�as�the�case�may�be.���

2.4�� Copies�of�the�Text�of�the�Plan���

At�the�time�that�a�Notice�is�delivered�to�an�Eligible�Person�upon�the�initial�granting�of�an�Option,�that�Eligible� Person�must�be�provided�with�either�one�copy�of�the�text�of�the�Plan�or�the�address�of�the�website�from�which� the�text�of�the�Plan�can�be�downloaded�by�the�Eligible�Person,�and�within�ten�(10)�days�following�the�receipt�of� the�Notice�and�the�accompanying�Option�Certificate,�each�such�Eligible�Person�shall�sign�that�Notice� acknowledging�that�the�Eligible�Person�has�read�the�Plan�and�unconditionally�agreeing�to�the�terms�and� conditions�stipulated�in�the�Plan,�the�Option�Certificate�and�the�Notice.�Notwithstanding�any�other�provision� hereof,�the�grant�of�such�Option�by�the�Corporation�to�that�Eligible�Person�shall�not�be�effective�unless�and�until� the�Eligible�Person�complies�with�the�requirements�of�this�Section�2.4�and�all�of�the�other�conditions�herein� relating�to�such�Grant�are�satisfied.����

64

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2.5�� No�Additional�Rights���

The�Plan�does�not�entitle�an�Optionee�to�be,�or�continue�to�be,�an�employee�or�a�director�of�the�Corporation� nor�does�it�create�an�obligation�on�the�part�of�the�Optionee.�The�Plan�does�not�grant�the�Optionee�any�rights�as� a�Shareholder�with�respect�to�the�Shares�underlying�the�Options�before�such�time�as�the�Optionee�has�exercised� his�or�her�Options,�or�a�part�thereof,�and�he�or�she�is�duly�registered�as�a�Shareholder.�All�decisions�regarding� the�granting�of�Options�shall�be�made�at�the�sole�discretion�of�the�Board�of�Directors.�The�Plan�does�not�hinder,� limit,�force,�restrict,�or�prevent�the�Board�of�Directors�with�respect�to�the�allocation�or�the�issuance�of�Shares� or�of�any�other�security�of�the�Corporation,�except�as�specified�in�the�Plan.���

2.6�� Participation�Limits��

  • a) The�maximum�number�of�Shares�issuable�at�any�time�to�Eligible�Persons�who�are�Insiders�pursuant� to�the�exercise�of�Options�granted�under�this�Plan�and�securities�granted�under�any�other�Security� Based�Compensation�Arrangement�of�the�Corporation�must�not�exceed�10%�of�the�aggregate� number�of�Shares�issued�and�outstanding�from�time�to�time�(calculated�on�a�non�diluted�basis).��

  • b) The�maximum�number�of�Shares�issued�to�Eligible�Persons�who�are�Insiders�within�any�one�year� period�pursuant�to�the�exercise�of�Options�granted�under�this�Plan�and�securities�granted�under� any�other�Security�Based�Compensation�Arrangement�of�the�Corporation�must�not�exceed�10%�of� the�aggregate�number�of�Shares�issued�and�outstanding�from�time�to�time�(calculated�on�a�non� diluted�basis).���

  • 2.7 Non�Employee�Director�Participation�Limits�

  • a)� The�number�of�Shares�that�are�issuable�to�Eligible�Persons�who�are�non�employee�directors�under� this�Plan�and�any�other�Security�Based�Compensation�Arrangements�of�the�Corporation�shall�not�at� any�time�exceed�$150,000�worth�of�Shares�annually�per�non�employee�director,�of�which�no�more� than�$100,000�may�be�in�the�form�of�Options.�

3�� Terms�and�Conditions�of�the�Options��

3.1�� Issuance�of�Shares�by�the�Board�of�Directors���

The�Shares�to�be�issued�to�Optionees�upon�the�exercise�of�the�Options�shall�not�be�issued�by�the�Corporation� unless�and�until�the�issuance�of�such�Shares�is�duly�authorized�by�the�Board�of�Directors.���

3.2�� Number�of�Shares���

The�Options�to�be�granted�under�the�Plan�must�not�be�exercisable�for�more�than�10%�of�the�Shares�issued�and� outstanding�at�the�time�the�Options�are�granted,�provided�that�if�the�Options�expire�or�are�terminated�for�any� reason�before�they�vest�and�are�exercised,�the�number�of�Shares�underlying�such�expired�or�terminated�Options� may�again�be�available�under�the�Plan.���

3.3�� Term�of�Options���

Subject�to�Sections�3.5�and�5.2�hereof,�the�Expiry�Date�of�an�Option�is�the�date�established�by�the�Board�of�� Directors�at�the�time�of�the�granting�of�the�particular�Option,�provided�that�such�date�does�not�extend�beyond� the�fifth�anniversary�of�the�Date�of�Grant�of�the�Option,�or�such�later�date�as�determined�in�accordance�with� Section�3.4�hereof.���

65

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3.4�� Black�Out�Periods��

Despite�any�other�provision�of�this�Plan,�if�the�Expiry�Date�of�an�Option�falls�on,�or�within�nine�(9)�Business�Days� immediately�following,�a�date�upon�which�an�Optionee�is�prohibited�from�exercising�an�Option�due�to�a�blackout� period�or�other�trading�restriction�imposed�by�the�Corporation�(but,�for�greater�certainty,�not�a�cease�trade� order�or�other�restriction�imposed�by�any�person�other�than�the�Corporation)�(a�Black�Out�Period),�then�the� Expiry�Date�of�such�Option�will�be�automatically�extended�to�the�tenth�(10th)�Business�Day�following�the�date� the�relevant�black�out�period�or�other�trading�restriction�imposed�by�the�Corporation�is�lifted,�terminated�or� removed.��

3.5�� Termination�of�Options���

Subject�to�Section�3.1�hereof,�Optionees�may�exercise�an�Option�in�whole�or�in�part,�at�any�time�or�from�time�to� time�during�the�Exercise�Period,�provided�that�the�Option�has�vested�on�or�before�such�time�pursuant�to�the� terms�of�the�Option�Certificate�evidencing�such�Option�and�provided�that,�with�respect�to�the�exercise�of�a�part� of�an�Option,�the�Board�of�Directors�shall�be�entitled,�at�any�time�and�from�time�to�time,�to�establish�the�number� of�Shares�with�respect�to�which�an�Optionee�may�exercise�a�part�of�the�Option�held�by�such�Optionee.�All�of�the� Options,�or�parts�of�an�Option,�that�have�not�been�exercised�during�the�Exercise�Period�will�terminate�and� become�null�and�void�on�the�day�immediately�following�the�Expiry�Date.�The�Expiry�Date�of�an�Option�will� correspond�to�the�earlier�of:��

  • a) the�date�established�by�the�Board�of�Directors�as�the�Expiry�Date�at�the�time�of�the�granting�of�the� Option;�and���

  • b) the�date�established�pursuant�to�subparagraphs�(i)�to�(v)�hereinafter:���

  • (i) Death �–�Upon�the�death�of�an�Optionee�who�is�an�Eligible�Person,�the�date�established� hereby�in�respect�of�each�Option�held�by�such�Optionee�at�the�date�of�death�is�the�earlier�of� (A)�the�Expiry�Date�of�the�Option�and�(B)�the�expiry�of�a�period�of�ninety�(90)�days�following� the�Termination�Date;�provided�that�any�such�Options,�or�the�remainder�thereof,�which�are� vested�at�the�Termination�Date�and�which�have�been�granted�to�such�Optionee�may�be� exercised�on�or�before�such�date�by�the�Optionee’s�Personal�Representative�in�accordance� with�the�terms�of�the�Plan���

  • (ii) Cessation�of�Employment �–�If�an�Optionee�at�any�time�on�a�particular�day�ceases�to�be� employed�by�the�Corporation�(other�than�as�a�consequence�of�the�termination�of� employment�by�the�Corporation�for�cause),�or�ceases�to�hold�an�office�of�director�of�the� Corporation,�or�ceases�to�be�engaged�by�the�Corporation�as�a�Service�Provider,�for�any� reason�other�than�death�and�the�Option�is�held�by�the�Optionee�at�that�time,�the�date� established�hereby�in�respect�of�such�Option�is�three�hundred�and�sixty�five�(365)�days�after� the�Termination�Date�if�such�Option�was�granted�to�the�Optionee�by�the�Corporation�at�any� time�on�or�before�October�24,�2017,�and�in�any�other�case,�the�date�established�hereby�in� respect�of�such�Option�is�ninety�(90)�days�after�the�Termination�Date.��

  • (iii) Notwithstanding�subparagraphs�(i)�and�(ii)�above,�the�Board�of�Directors�may,�at�its� discretion�and�subject�to�the�approval�of�the�Exchange,�if�required,�by�means�of�a�prior� notice�sent�to�an�Optionee�or�to�his�or�her�Personal�Representative,�allow�an�Option,�or�part� of�an�Option,�to�remain�valid�and�in�effect,�and�may�direct�that�the�Expiry�Date�of�an�Option� or�part�of�an�Option�held�by�the�Optionee�be�deemed�to�be�the�Termination�Date,�or�a�date� after�any�of�such�events.���

66

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  • (iv) Termination�of�Employment�for�Cause �–�If�the�employment�of�an�Optionee�is�terminated�for� cause,�the�date�established�hereby�in�respect�of�each�Option�held�by�such�Optionee�is�the� first�day�that�the�Optionee�ceased�to�be�employed�by�the�Corporation�after�expiration�of� the�applicable�period�of�notice�of�termination,�if�any.��

  • (v) Discretion�of�the�Board�of�Directors �–�The�Board�of�Directors�may,�at�any�time�or�from�time� to�time,�with�the�consent�of�an�Optionee�and,�subject�to�the�approval�of�the�Exchange,� accelerate�or�postpone�the�Expiry�Date�of�an�Option�or�of�any�part�of�an�Option�held�by�the� Optionee�if�the�Board�of�Directors�establishes,�at�its�discretion,�that�this�measure�is� warranted�under�the�circumstances�and�provided�that�the�Expiry�Date�of�the�Option�does� not�extend�beyond�the�fifth�anniversary�of�the�Date�of�Grant.���

3.6�� Exercise�Price���

  • a) No�consideration�will�be�payable�with�respect�to�the�granting�of�an�Option.�Consideration�will�be� payable�pursuant�to�paragraph�3.6(b)�hereunder.���

  • b) At�the�time�of�the�granting�of�an�Option,�the�Board�of�Directors�shall�establish�the�price�at�which� an�Optionee�may�purchase�an�underlying�Share�upon�the�exercise�of�his�or�her�Option.�Said�price� will�not�be�less�than�the�Market�Value.���

  • c) The�Board�of�Directors�may�reduce�the�Exercise�Price�of�an�Option�with�the�consent�of�the� Optionee,�subject�to�the�prior�approval�of�the�disinterested�Shareholders�of�the�Corporation�and� any�other�requirements�of�the�Exchange,�if�the�Optionee�is�an�insider.����

3.7�� Assignment�of�Options���

Options�may�not�be�assigned�or�transferred.�However,�to�the�extent�provided�for�pursuant�to�Section�4.1�hereof,� the�Personal�Representative�of�an�Optionee�may�exercise�Options�during�the�Exercise�Period.���

3.8�� Adjustments���

Prior�to�the�exercise�of�an�Option,�if�a�stock�dividend�is�paid�with�respect�to�the�Shares�or�if�the�Shares�are� consolidated,�subdivided,�converted,�exchanged,�or�redesignated,�or�if�they�are�in�any�way�replaced�(collectively� an� Event ),�the�Option,�to�the�extent�that�it�has�not�been�exercised,�will,�subject�to�the�approval�of�the�Exchange,� entitle�the�holder�thereof,�upon�its�exercise�pursuant�to�its�terms�and�conditions,�to�the�number�and�type�of� Shares,�other�securities�or�assets�that�the�holder�would�have�been�entitled�to�receive�as�a�result�of�the�Event�as� if�such�holder�were�the�owner�of�the�underlying�Shares�at�the�time�the�Event�occurred,�and�the�Exercise�Price� of�the�Option�will�be�the�same�as�if�the�underlying�Shares�initially�subject�to�the�Option�had�been�purchased� pursuant�hereto.�No�fractional�Shares�will�be�issued�upon�the�exercise�of�the�Options,�and�if�an�Optionee�is� entitled�to�a�fraction�of�a�Share�as�a�result�of�an�Event,�then�such�Optionee�will�only�be�entitled�to�purchase�the� nearest�lower�full�number�of�Shares�and�no�payment�or�any�other�adjustment�will�be�made�with�respect�to�the� fractional�participation�that�is�not�taken�into�account.�If�an�Event�occurs,�the�number�of�Shares�that�the�Board� of�Directors�has�authorized�pursuant�to�the�Plan�as�set�forth�in�Section�3.2�hereof�will�be�adjusted�accordingly.��

4�� Exercise�of�Options��

4.1�� Exercise�of�Options���

Only�the�Optionee�or�his�or�her�Personal�Representative,�as�the�case�may�be,�has�the�right�hereunder�to�exercise� an�Option�in�accordance�with�the�provisions�of�the�Plan.�An�Optionee,�or�his�or�her�Personal�Representative,� may�exercise�an�Option�in�whole�or�in�part,�at�any�time�or�from�time�to�time�during�the�Exercise�Period�provided�

67

==> picture [108 x 37] intentionally omitted <==

that�the�Option�has�vested�on�or�before�such�time�pursuant�to�the�terms�of�the�Option�Certificate�evidencing� such�Option,�by�delivering�to�the�Board�of�Directors:���

  • a) an�Exercise�Notice�duly�signed�by�the�Optionee�or�his�or�her�Personal�Representative,�as�the�case� may�be;���

  • b) the�applicable�Option�Certificate;���

  • c) if�the�Exercise�Notice�is�signed�by�a�Personal�Representative�of�the�Optionee�whose�Options�are� exercised,�any�documentation�that�the�Corporation�may�request;�and��

  • d) and�a�certified�cheque�or�bank�draft�payable�to�the�Corporation�in�an�amount�equal�to�the� aggregate�of�(i)�the�aggregate�Exercise�Price�of�the�underlying�Shares�that�are�being�purchased�as� a�result�of�the�exercise�of�the�Option�and�(ii)�the�amount�of�the�applicable�withholding�tax�as� determined�by�the�Corporation.���

4.2��

Issuance�of�Shares���

As�soon�as�possible�after�the�receipt�of�the�Exercise�Notice,�the�Board�of�Directors�will�direct�management�to� ensure�that�a�certificate�for�the�Shares�thus�purchased�on�the�exercise�of�an�Option�is�delivered�to�the�Optionee� or�his�or�her�Personal�Representative,�as�the�case�may�be.�If�the�number�of�Shares�thus�purchased�is�less�than� the�number�of�Shares�represented�by�the�Option�Certificate�that�is�surrendered,�the�Board�of�Directors�shall� make�a�note�thereon�indicating�the�number�of�Shares�with�respect�to�which�the�Option�was�exercised�and�shall� return�such�Option�Certificate�to�the�Optionee�or�his�or�her�Personal�Representative,�as�the�case�may�be,�at�the� same�time�as�the�Share�certificate�mentioned�above�is�issued.���

4.3�� Conditions�of�the�Issuance���

The�issuance�of�Shares�by�the�Corporation�as�a�result�of�the�exercise�of�an�Option�is�subject�to�the�laws�(including� the� Income�Tax�Act �(Canada),�rules,�and�regulations�of�all�of�the�authorities�and�public�bodies�applicable�with� respect�to�the�issuance�and�the�distribution�of�Shares,�including�but�not�limited�to�the�Exchange.�The�Optionee� agrees�to�comply�with�all�of�these�laws,�rules,�and�regulations,�to�provide�the�Corporation�with�the�information,� reports,�and�covenants�necessary�in�order�to�comply�with�such�laws,�rules,�and�regulations,�and�to�fully� collaborate�with�the�Corporation�with�respect�to�such�compliance.���

5�� Administration,�Amendments�and�Termination�of�the�Plan�

5.1�� Administration��

The�Board�of�Directors�will�administer�the�Plan�in�its�sole�discretion.�The�Board�of�Directors�will�have�the�full� power�and�sole�responsibility�to�interpret�the�provisions�of�the�Plan�and�to�make�regulations�and�formulate� administrative�provisions�for�its�implementation,�and�to�make�such�changes�in�the�regulations�and� administrative�procedures�as,�from�time�to�time,�the�Board�of�Directors�deems�proper�and�in�the�best�interests� of�the�Corporation,�and�to�reserve�and�issue�Shares�issuable�pursuant�to�the�exercise�of�Options.��Such� regulations�and�provisions�may�include�the�delegation�to�a�committee�of�the�Board�of�Directors�of�such� administrative�duties�and�powers�of�the�Board�of�Directors�as�it�may,�in�its�sole�discretion,�deem�fit.�The� determinations�of�the�Board�of�Directors�in�the�administration�of�the�Plan�shall�be�final�and�conclusive.��

5.2�� Amendment��

The�Board�of�Directors�may,�at�any�time�and�from�time�to�time,�without�the�approval�of�the�Shareholders�(other� than�any�required�regulatory�or�Exchange�approvals),�suspend,�discontinue�or�amend�this�Plan�or�any�Option.��

68

==> picture [108 x 37] intentionally omitted <==

Examples�of�the�types�of�amendments�that�may�be�made�by�the�Board�without�Shareholder�approval�include,� without�limitation,�the�following:��

  • a) amendments�to�ensure�continuing�compliance�with�applicable�laws,�regulations,�requirements,� rules�or�policies�or�any�governmental�authority�or�any�stock�exchange;��

  • b) amendments�of�a�“housekeeping”�nature,�which�include�amendments�to�eliminate�any�ambiguity� or�correct�or�supplement�any�provision�contained�herein;��

  • c) amendments�respecting�the�administration�of�the�Plan;��

  • d) changing�the�vesting�provisions�of�the�Plan�or�any�Option�Certificate;���

  • e) changing�the�termination�provisions�of�any�Option�that�does�not�entail�an�extension�beyond�the� original�Expiry�Date;�and���

  • f) any�other�amendment�that�does�not�require�the�approval�of�Shareholders�under�Section�5.3� hereof.��

5.3�� Amendments�Requiring�Shareholder�Approval��

Notwithstanding�Section�5.2�hereof,�specific�Shareholder�approval�is�required�for:���

  • a) any�change�to�the�maximum�number�of�Shares�issuable�from�treasury�under�the�Plan,�including�an� increase�to�the�fixed�maximum�percentage�or�a�change�from�a�fixed�maximum�percentage�to�a�fixed� maximum�number�of�Shares,�other�than�an�adjustment�pursuant�to�Section�3.8;�

  • b) any�amendment�which�reduces�the�exercise�price�of�any�Option�after�the�Options�have�been�granted� or�any�cancellation�of�an�Option�and�the�substitution�of�that�Option�by�a�new�Option�with�a�reduced� price,�except�in�the�case�of�an�adjustment�pursuant�to�Section�3.8;�

  • c) any�amendment�which�extends�the�Option�Term�beyond�the�original�expiry�date,�except�as�provided� in�Section�3.4�hereof;�

  • d) any�amendment�to�remove�or�to�exceed�the�Insider�Participation�Limits;��

  • e) any�amendment�which�would�allow�non�employee�directors�to�be�eligible�for�awards�under�the�Plan� on�a�discretionary�basis�or�an�amendment�which�would�increase�limits�imposed�on�non�employee� director�participation�pursuant�to�Section�2.7;�

  • f) any�amendment�which�would�permit�any�Option�granted�under�the�Plan�to�be�transferable�or� assignable�by�any�Eligible�Person�other�than�as�allowed�by�Section�3.7;�

  • g) any�amendment�to�the�amendment�provisions�of�this�Plan�found�in�Section�5.2�or�this�Section�5.3.�

5.4�� Change�of�Control��

  • a) In�the�event�of�a�Change�of�Control,�the�surviving,�continuing,�successor�or�purchasing�corporation� or�Affiliate�thereof,�as�the�case�may�be�(the� Successor�Corporation ),�may�either�assume�the� Corporation's�rights�and�obligations�under�outstanding�Options�or�substitute�for�outstanding� Options�substantially�equivalent�options�in�the�Successor�Corporation�in�a�manner�that� substantially�preserves�and�does�not�impair�the�rights�of�the�Optionees�thereunder�in�any�material� respect.���

69

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  • b) In�the�event�that�an�assumption�or�substitution�of�Options�is�not�made�by�the�Successor� Corporation�in�accordance�with�paragraph�a)�prior�to�or�in�connection�with�a�Change�of�Control,�all� Options�held�by�an�Optionee�as�at�the�date�of�the�Change�of�Control,�whether�vested�or�unvested,� will�automatically�vest�as�of�the�date�of�the�Change�of�Control.��

  • c) If�the�employment�of�an�Optionee�is�terminated�by�the�Corporation�during�the�one�(1)�year�period� after�a�Change�of�Control�for�any�reason�other�than�for�Cause,�or�the�Optionee�resigns�from�his� employment�as�a�result�of�Constructive�Dismissal,�then�any�unvested�Options�held�by�the�Optionee� as�at�the�date�of�the�Change�of�Control�shall�accelerate�and�will�fully�vest�effective�on�the�date�of� the�Change�of�Control�and�all�Options�that�are�vested�or�deemed�to�be�vested�may�be�exercised�by� the�Optionee�within�30�days�from�the�Termination�Date.��

5.5��

�Retroactive�Amendment���

The�Board�of�Directors�may,�from�time�to�time�and�subject�to�the�approval�of�the�Exchange,�retroactively�amend� the�Plan�provided�they�are�permitted�to�do�so�under�this�Section�5�hereof,�and,�with�the�consent�of�the�affected�� Optionees,�retroactively�amend�the�terms�and�conditions�of�the�Options�that�have�been�granted�until�then.���

5.6�� Termination�of�the�Plan���

The�Board�of�Directors�may�terminate�the�Plan�at�any�time,�provided�that�such�termination�does�not�affect�the� rights�of�any�Optionee�pursuant�to�any�Option�and�does�not�amend�the�terms�and�conditions�of�any�Option�that� has�been�granted�to�such�Optionee�before�the�date�of�such�termination�and,�notwithstanding�such�termination,� the�Corporation,�the�Options,�and�the�Optionees�will�continue�to�be�subject�to�the�provisions�of�the�Plan.��

70

SCHEDULE�B�–�BOARD�OF�DIRECTORS�MANDATE��

==> picture [108 x 37] intentionally omitted <==

1. PRIMARY�OBJECTIVE���

The�primary�objective�of�the�Board�in�discharging�its�mandate�is�the�effective�and�efficient�conduct�by�the�Corporation� of�its�business�and�affairs�in�accordance�with�its�articles,�by�laws�and�policies,�and�in�a�manner�and�to�the�extent� consistent�with�applicable�law�and�with�the�purpose�of�enhancing�and�preserving�shareholder�value�while�taking�into� account�the�legitimate�interests�of�employees,�customers,�lenders�and�the�wider�communities.��

Accordingly,�the�Board�will�be�concerned�with�such�matters�as�strategic�and�financial�planning,�risk�assessment�and� mitigation,�senior�management�determination,�corporate�governance,�public�disclosure�and�compliance�monitoring.��

���

2. DIRECTORS��

Each�director�has�the�duty�to�act�in�the�best�interests�of�the�Corporation�and�in�so�doing�must�thoroughly�understand� the�nature�and�extent�of�the�Corporation’s�business�and�affairs�while�maintaining�an�acute�awareness�of�the�political,� economic,�social,�legal�and�environmental�realities�and�constraints�prevailing�in�all�jurisdictions�in�which�the� Corporation�conducts,�or�proposes�to�conduct,�its�business�and�affairs.��In�exercising�their�powers�and�in�discharging� their�duties,�the�directors�shall:�

  • act�honestly�and�in�good�faith�with�a�view�to�the�best�interests�of�the�Corporation;�

  • exercise�the�care,�diligence�and�skill�that�a�reasonably�prudent�person�would�exercise�in�comparable� circumstances;�

  • disclose�to�the�Corporation�the�nature�and�extent�of�any�interest�that�the�director�has�in�a�material� contract�or�material�transaction�with�the�Corporation�if�the�director�is�a�party�to�the�contract�or� transaction,�is�a�director�or�an�officer,�or�an�individual�acting�in�a�similar�capacity,�of�a�party�to�the�contract� or�transaction�or�has�a�material�interest�in�a�party�to�the�contract�or�transaction;�

  • comply�with�the�CBCA�and�the�regulations�enacted�thereunder�as�well�as�with�the�Corporation’s�articles� and�by�laws;�and�

  • comply�with�their�obligations�under�applicable�law�and�the�policies�adopted�by�the�Corporation.�

3. MANDATE�

(a)�� statutory�responsibilities��

  • �The�Board�has�the�statutory�responsibility:���

  • to�supervise�the�management�of�the�business�and�affairs�of�the�Corporation;���

  • to�review�and�to�approve�the�annual�consolidated�financial�statements�of�the�Corporation;���

  • to�place�before�the�shareholders�at�every�annual�meeting�the�annual�consolidated�financial�statements� of�the�Corporation,�the�report�of�the�auditor�and�any�further�information�respecting�the�financial�position� of�the�Corporation�and�the�results�of�its�operations�required�by�the�articles�and�by�laws�of�the� Corporation.���

The�Board�is�also�responsible�for�considering�the�following�matters�as�a�full�Board�which�in�law�may�not�be�delegated� to�management�or�to�a�committee�of�the�Board:���

71

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  • any�submission�to�the�shareholders�of�a�question�or�matter�requiring�the�approval�of�the�shareholders;���

  • the�filling�of�a�vacancy�among�the�directors�or�in�the�office�of�auditor,�or�appointment�of�additional� directors;���

  • the�declaration�of�dividends;���

  • the�purchase,�redemption�or�any�other�form�of�acquisition�of�securities�issued�by�the�Corporation;���

  • the�approval�of�a�management�proxy�circulars;���

  • the�approval�of�any�take�over�bid�circular�or�directors'�circular;���

  • the�approval�of�annual�consolidated�financial�statements�of�the�Corporation;�and���

  • the�adoption,�amendment�or�repeal�of�the�by�laws�of�the�Corporation.���

(b)�� strategic�and�financial�planning��

  • �The�Board�has�the�responsibility:���

  • to�review�and�consider�for�approval�the�strategic�and�financial�objectives�of�the�Corporation�proposed�by� management;���

  • to�review�and�consider�for�approval�the�operating�and�capital�budgets�of�the�Corporation�proposed�by� management;���

  • to�review�and�consider�for�approval�all�amendments�or�departures�from�the�established�strategic�and� financial�objectives�and�budgets�of�the�Corporation�as�proposed�by�management;�and���

  • to�review�financial�performance�of�the�Corporation�measured�against�the�financial�objectives�and�budgets� of�the�Corporation.���

(c)�� risk�assessment�and�mitigation��

The�Board�has�the�responsibility:���

  • to�ensure�that�management�has�identified�and�assessed�the�principal�risks�attendant�on�the�business�and� affairs�of�the�Corporation�and�has�achieved�an�appropriate�balance�between�the�risks�incurred�and�the� anticipated�benefits;�and���

  • to�confirm�that�there�are�systems�in�place�which�effectively�monitor�and�mitigate�those�risks�with�a�view� to�achieving�the�strategic�and�financial�objectives�of�the�Corporation.���

(d)�� senior�management�determination��

  • �The�Board�has�the�responsibility:���

  • to�appoint�the�CEO�and�approve�the�primary�duties�of�the�CEO;���

  • to�approve�the�terms�and�conditions�(including�compensation)�of�the�CEO’s�employment�by�the� Corporation;���

  • to�monitor�and�assess�the�performance�of�the�CEO�measured�against�the�strategic�and�financial�objectives� of�the�Corporation;���

  • if�requested�by�the�CEO,�to�advise�and�counsel�the�CEO�in�the�execution�of�the�CEO's�duties;���

  • in�consultation�with�the�CEO,�to�approve�the�appointment�of�the�other�Officers�and�to�approve�the�terms� and�conditions�(including�compensation)�of�those�Officer’s�employment�by�the�Corporation;�and���

  • to�assess�the�adequacy�of�the�processes�implemented�by�the�Corporation�to�train�and�develop�the�Officers� and�other�members�of�senior�management�and�to�achieve�the�orderly�succession�of�management.���

72

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(e)�� corporate�governance��

  • �The�Board�has�the�responsibility:���

  • to�implement�appropriate�structures�and�procedures�to�permit�the�Board�to�function�independently�of� management;���

  • to�analyze�the�definition�of�independence�and�its�application�to�individual�directors�on�a�periodic�basis;���

  • to�establish�appropriate�practices�for�the�regular�evaluation�of�the�effectiveness�of�the�Board,�its� committees�and�individual�directors;���

  • to�establish�committees�and�approve�their�respective�mandates�and�the�limits�of�authority�delegated�to� each�committee;���

  • to�establish�limits�of�authority�delegated�to�Officers;�and���

  • to�assess�the�integrity�and�professional�conduct�of�the�Officers�and�other�members�of�senior� management,�to�monitor�their�compliance�with�applicable�law�and�the�policies�adopted�by�the� Corporation�and�to�evaluate�their�success�in�creating�a�corporate�culture�of�integrity,�professionalism�and� compliance�with�legal�and�corporate�standards.���

(f)�� public�disclosure��

  • �The�Board�has�the�responsibility:���

  • to�supervise�the�Corporation’s�compliance�with�its�public�disclosure�obligations;���

  • to�verify�that�the�Corporation�has�in�place�policies�and�programs�that�ensure�that�the�Corporation� communicates�effectively�and�on�a�timely�basis�with�shareholders,�employees,�other�stakeholders�and� the�public�generally;���

  • to�verify�that�management�of�the�Corporation�discharges�its�responsibilities�in�relation�to�the�preparation� and�fair�presentation�of�the�Corporation’s�annual�consolidated�financial�statements�in�accordance�with� International�Financial�Reporting�Standards;���

  • to�verify�that�the�financial�performance�of�the�Corporation�is�adequately�reported�to�shareholders�and� regulators�on�a�timely�and�regular�basis;���

  • to�verify�the�timely�disclosure�of�any�other�developments�that�have,�or�could�have,�a�material�or� significant�impact�on�the�business�or�affairs�of�the�Corporation;�and���

  • to�report�at�least�annually�to�the�shareholders�of�the�Corporation�on�its�stewardship�of�the�business�and� affairs�of�the�Corporation.���

(g)�� compliance�monitoring��

  • �The�Board�has�the�responsibility�to:���

  • to�monitor�the�Corporation’s�compliance�with�applicable�law�in�the�conduct�of�its�business�and�affairs� including�compliance�with�each�of�its�contractual�obligations;���

  • to�monitor�the�Corporation’s�compliance�with�its�policies�and�procedures�in�the�conduct�of�its�business� and�affairs�including�compliance�with�policies�and�procedures�concerning�such�matters�as�the�health�and� safety�of�its�employees,�the�protection�of�the�environment�and�ethical�business�conduct;���

  • to�verify�that�the�Corporation�maintains�adequate�internal�controls�and�information�systems�for�the� purpose�of�ensuring�that�the�Corporation�satisfies�all�of�its�compliance�obligations;�and���

  • to�take�remedial�action�if�the�Corporation�fails�to�satisfy�any�of�its�compliance�obligations.���

73

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(h)�� other�responsibilities��

The�Board�has�the�responsibility�to:���

  • to�ensure�that�all�new�directors�receive�an�orientation�respecting�the�Corporation's�business�and�affairs� and�receive�continuing�education�opportunities�to�enhance�their�skills;�and���

  • to�take�such�other�action�that�is�consistent�with�this�mandate,�the�Corporation's�articles,�bylaws�and� policies�and�applicable�law�as�the�Board�considers�necessary�or�appropriate�acting�reasonably.���

4.������MEETINGS�AND�OPERATION��

The�Chair�or�any�two�directors�may�call�a�meeting�of�the�Board,�at�such�time�and�at�such�place�as�they�determine,�by� giving�at�least�forty�eight�hours’�notice�of�such�meeting�to�all�directors.���

The�Board�shall�meet�as�often�as�it�determines,�but�not�less�frequently�than�quarterly.���

Independent�directors�shall�meet�regularly�and�as�often�as�necessary�to�fulfill�their�responsibilities,�without�non� independent�directors�and�management�participation.���

A�quorum�for�meetings�of�the�Board�will�be�a�majority�of�directors�and�the�rules�for�calling,�holding,�conducting�and� adjourning�meetings�of�the�Board�will�be�those�prescribed�by�the�articles�and�by�laws�of�the�Corporation.���

The�affirmative�vote�of�a�majority�of�the�directors�participating�in�any�meeting�of�the�Board�is�necessary�for�the� adoption�of�any�resolution.���

The�Chair�will�preside�at�all�meetings�of�the�Board,�unless�the�Chair�is�not�present,�in�which�case�the�directors�that� are�present�will�designate�from�among�such�members�the�Chair�for�the�purposes�of�the�meeting.���

���

Agendas,�approved�by�the�Chair,�will�be�circulated�to�the�directors�along�with�background�information�on�a�timely� basis�prior�to�the�Board�meetings.�Minutes�of�all�meetings�of�the�Board�will�be�taken.�The�minutes�of�the�Board�will� be�recorded�and�maintained.���

All�directors�are�expected�to�allow�sufficient�time�to�review�meeting�materials�and�be�prepared�for�Board�meetings.� Directors�are�expected�to�attend�most,�if�not�all,�Board�meetings.���

A�director�or�directors�may�participate�in�a�meeting�of�the�Board�by�means�of�such�telephonic,�electronic�or�other� communication�facilities�that�permit�all�persons�participating�in�the�meeting�to�communicate�adequately�with�each� other,�and�a�director�participating�in�such�a�meeting�by�any�such�means�is�deemed�to�be�present�at�that�meeting.���

The�CEO�will�attend�meetings�of�the�Board�where�matters�relating�to�the�functions�as�the�Board�are�dealt�with,�unless� otherwise�excused�from�all�or�part�of�any�such�meeting�by�the�Chair.�The�Board�may�invite�such�other�Officers,� directors�and�employees�of�the�Corporation�as�it�sees�fit�from�time�to�time�to�attend�at�meetings�of�the�Board�and� assist�in�the�discussion�and�consideration�of�the�matters�being�considered�by�the�Board.���

Subject�to�the�articles�and�by�laws�of�the�Corporation�and�applicable�law,�the�Board�may�delegate�powers,�duties� and�responsibilities�to�committees�of�the�Board�and�the�Board�retains�the�responsibility�of�managing�its�own�affairs� including�selecting�its�Chair,�nominating�candidates�for�election�to�the�Board,�constituting�committees�of�the�full�

74

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Board,�determining�directors'�compensation�and�assessing�the�effectiveness�of�the�Board,�committees�and�directors� in�fulfilling�their�responsibilities.���

5. INDEPENDENT�ADVISORS��

The�Board�has�the�authority�to�retain�such�independent�advisors�as�it�may�consider�necessary�or�advisable�for�its� purposes.�The�expenses�related�to�such�engagement�shall�be�funded�by�the�Corporation.���

6. RESPONSIBILITIES�OF�THE�CHAIR��

The�Chair�of�the�Board�is�appointed�at�the�pleasure�of,�and�reports�to�the�Board.�The�responsibilities�of�the�Chair� include:���

  • working�collaboratively�with�the�CEO�to�coordinate�the�affairs�of�the�Board�and�to�ensure�effective� relations�with�Officers,�shareholders,�other�stakeholders�and�the�public;�and���

  • ensuring�that�the�Board�is�organized�properly,�functions�effectively,�and�meets�its�obligations�and�� responsibilities�in�all�aspects�of�its�work.���

(a)�� relationship�with�the�CEO��

The�Chair�will�maintain�unfettered�bi�lateral�communication�with�the�CEO.�The�Chair's�interaction�with�all�other� Officers�is�permitted�as�appropriate.���

The�Chair�will�work�collaboratively�with�the�CEO:���

  • to�act�as�the�principal�sounding�board,�counselor�and�confidant�for�the�CEO,�including�helping�to�review� strategies,�define�issues,�maintain�accountability,�and�build�relationships;���

  • to�ensure�the�CEO�is�aware�of�concerns�of�the�directors,�other�Officers,�shareholders,�other�stakeholders� and�the�public;���

  • to�assess,�in�conjunction�with�the�relevant�committees,�the�performance�of�the�CEO�and�provide�input� with�respect�to�compensation�and�succession;���

  • to�work�closely�with�the�CEO�to�ensure�management�strategies,�plans,�and�performance�are�appropriately� presented�to�the�Board;�and���

  • at�the�request�of�the�CEO,�to�provide�assistance�on�major�policy�issues�such�as�acquisitions,�divestitures,� and�new�strategic�initiatives.���

(b)�� relationship�with�the�board��

The�Chair�will�work�collaboratively�with�the�other�members�of�the�Board:���

  • to�lead�the�Board�in�monitoring�and�evaluating�the�performance�of�the�CEO,�the�accountability�of�the� CEO,�and�the�implementation�of�management�succession�and�development�plans;���

  • to�ensure�the�Board�receives�adequate�and�regular�updates�from�the�CEO�on�all�issues�important�to�the� interests�of�the�Corporation;���

  • to�maintain�a�liaison�and�communication�with�all�directors�and�committee�chairs�to�coordinate�input�from� directors,�and�optimize�the�effectiveness�of�the�Board�and�its�committees;�and���

  • in�collaboration�with�the�CEO,�to�ensure�data�requested�by�directors�or�committees�is�provided�in�a�timely� manner�and�meets�their�needs.���

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(c)�� board�meetings���

The�Chair�has�the�responsibility:���

  • to�chair�meetings�of�the�Board;���

  • to�ensure�the�directors�are�alert�to�their�obligations�to�the�Corporation,�shareholders,�management,�other� stakeholders�and�pursuant�to�law;���

  • to�establish�the�frequency�of�meetings�of�the�Board�and�review�such�frequency�from�time�to�time,�as� considered�appropriate�or�as�requested�by�the�directors;���

  • to�assist�the�appropriate�committee�in�identifying�a�slate�of�directors�to�be�nominated�for�election�to�the� Board;���

  • to�recommend�board�committees�and�their�composition,�review�the�need�for,�and�the�performance�and� suitability�of,�those�committees�and�make�such�adjustments�as�are�deemed�necessary�from�time�to�time,� all�in�conjunction�with�the�CEO�and�the�relevant�committees;���

  • to�prepare�the�agenda�and�coordinate�the�distribution�of�the�agenda,�information�packages�and�related� materials�for�meetings�of�the�Board�in�consultation�with�the�CEO;���

  • to�coordinate�the�review�and�assessment�of�individual�attendance,�performance�and�compensation�of� directors�and�the�size�and�composition,�and�overall�performance�of�the�Board,�all�in�conjunction�with�the� relevant�committees�of�the�Board;���

  • to�endeavor�to�ensure�that�the�Board's�key�discussions�take�place�when�as�many�of�the�directors�as� possible�are�present�and�that�essential�decisions�are�made�when�as�many�directors�as�possible�are�present� (either�in�person�or�by�telephone);���

  • to�endeavor�to�ensure�that�Board�meetings�can�be�scheduled�to�deal�with�important�business�that�arises� outside�of�the�regular�periodic�meetings;���

  • to�endeavor�to�ensure�that�the�Board�is�able�to�function�independently�of�management;���

  • to�consider,�and�allow�for,�when�appropriate�a�meeting�of�all�independent�directors,�so�that�Board� meetings�can�take�place�without�management�being�present;���

  • to�endeavor�to�ensure�reasonable�procedures�are�in�place�to�allow�for�directors�to�engage�outside� advisors�at�the�expense�of�the�Corporation,�in�appropriate�circumstances;�and���

  • to�apply�the�Rules�of�Order:���

  • to�ensure�that�the�meeting�is�duly�constituted;���

  • to�ensure�the�meeting�provides�for�reasonable�accommodation;���

  • to�confirm�the�admissibility�of�all�persons�at�the�meeting;���

  • to�preserve�order�and�the�control�of�the�meeting;�and���

  • to�ascertain�the�sense�of�the�meeting�by�a�vote�on�all�questions�properly�brought�before�the�meeting.���

(d)�� shareholder�meetings��

The�Chair�has�the�responsibility:���

  • to�chair�meetings�of�shareholders;���

  • to�ensure,�in�collaboration�with�the�CEO�and�relevant�committees,�that�the�Corporation's� management�and,�where�applicable,�the�Board�are�appropriately�represented�at�official�functions� and�meetings�with�major�shareholder�groups,�and�other�stakeholder�groups;���

  • at�the�request�of�the�CEO,�to�assist�in�representing�the�Corporation�at�specific�shareholder� presentations,�or�with�senior�levels�of�industry�or�government�to�promote�specific�corporate� objectives;���

76

==> picture [108 x 37] intentionally omitted <==

  • at�the�request�of�the�CEO,�to�undertake�public�service�activities�in�conjunction�with�the� Corporation's�charitable,�educational�and�cultural�objectives;�and���

  • to�apply�the�Rules�of�Order:���

  • to�ensure�that�the�meeting�is�duly�constituted;���

  • to�ensure�the�meeting�provides�for�reasonable�accommodation;���

  • to�confirm�the�admissibility�of�all�persons�at�the�meeting;���

  • to�preserve�order�and�the�control�of�the�meeting;���

  • to�appoint�scrutineers�if�requested�and�instructing�them�in�their�duties;���

  • to�rule�on�the�validity�of�proxies;�and���

  • to�ascertain�the�sense�of�the�meeting�by�a�vote�on�all�questions�properly�brought�before�the� meeting.���

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Head�Office:���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������

308���4[th] �Avenue�S.W.,�Suite�3100���� Calgary,�Alberta�� Canada�T2P�0H7��� Telephone:�403�261�5900�� Attention:�Director,�External�Relations���� [email protected]

https://www.pieridaeenergy.com

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