Pulse Oil — Interim / Quarterly Report 2021

Aug 31, 2021

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SECOND QUARTER 2021 MANAGEMENT’S DISCUSSION AND ANALYSIS – QUARTERLY HIGHLIGHTS

Dated August 30, 2021

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2021

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Q2 2021

Pulse Oil’s Second Quarter 2021 Management’s Discussion and Analysis

Overview

The following is management’s discussion and analysis (“MD&A”) of the condensed interim consolidated financial position and consolidated results of operations of Pulse Oil Corp. (the “Company” or “Pulse”) for the three and six months ended June 30, 2021 and to the date of this report on August 30, 2021. This MD&A should be read in conjunction with Pulse’s condensed interim consolidated financial statements for the three and six months ended June 30, 2021 and with the Company’s audited financial statements and the notes thereto for the year ended December 31, 2020 (the “2020 Financial Statements”). Pulse’s audited consolidated financial statements have been prepared in accordance with accounting policies consistent with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”). Results for the three and six months ended June 30, 2021 are not necessarily indicative of future results. All dollar amounts included in the following MD&A are expressed in Canadian dollars. Readers are cautioned that this MD&A contains “non-IFRS measures” and “forward-looking statements” which are discussed at the end of this MD&A.

Additional information regarding Pulse and its activities is available under its profile on SEDAR at www.sedar.com, or by requesting further information from Pulse’s head office located in Vancouver, British Columbia, Canada by emailing info@pulseoilcorp.com.

Description of Business

Pulse is the owner and operator of proven producing oil and gas assets in Alberta with significant opportunity to increase production, reserves and cashflow through a well planned, safe and technically diligent work program. Pulse currently trades on the TSX Venture Exchange (“TSXV”) under the symbol “PUL”. Following the successful completion of a Rights Offering that was announced in early 2021, raising total aggregate gross proceeds of $1,515,924, the company has been working to increase its production through reactivation of previously shut-in wells, workovers on key wells and the commissioning of its 100% owned production and water injection facility. Looking back, the past year that was difficult for both Pulse and our industry as a whole; it is with optimism that the company looks to the future for growth and re-building as our local and global economies recover. Pulse continues to be an active oil and gas producer focusing in Alberta.

Pulse’s success in the future will largely be determined by its ability to continue to complete the Bigoray enhanced oil recovery project (“EOR”), acquire new oil and gas assets in a competitive acquisition market, conduct operations safely and efficiently to increase production, cash flow and reserves to fund Pulse’s business plan. With the increases in production that have been achieved throughout the year to date, and Pulse’s optimism that the price of oil will remain at its current levels or higher for the foreseeable future, the Company will look to continue to grow its production to help fund future operations.

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Highlights of this MD&A

Pulse will discuss its key updates relating to its oil and gas assets in Alberta and will discuss the Company’s business plan, financial resources, and its updated share capital.

2021 Overview to Date

• McDaniel, a qualified independent reserves evaluator in accordance with National Instrument 51-101 and the COGE Handbook, completed their independent reserves assessment (the “Assessment”) on Pulse’s interests within the Bigoray and Queenstown core operating areas as at December 31, 2020. The Assessment was effective December 31, 2020 and resulted in a pre-tax net present value of $21.619 million for Pulse’s proved plus probable (“2p”) reserves and $13.666 million for Pulse’s proved (“1p”) reserves, using a 10% discount rate to Pulse’s net working interest. This represents a decrease in the value of 1p reserves of 23.4% and a decrease in the value of 2p reserves of 27.3% when compared to December 31, 2019. The decrease is a result of a conservative price forecast that had existed at December 31, 2020 and due to the releasing of a number of lands in the Queenstown area that had some future development wells and reserves associated.

• In January, the company was able to re-activate its first well in the Bigoray field, joining one well that had continued to produce, increasing production and cashflow.

• In March, the company re-activated 4 additional wells in the Queenstown field, while starting to mobilize equipment and infrastructure for a new water injection facility in its Bigoray field.

• On March 26, the company announced a rights offering to existing shareholders with a fully guaranteed standby agreement. The company successfully completed the rights offering raising total aggregate gross proceeds of $1,515,924 during the current period.

• During the period, the company completed the installation of an injection facility at its Bigoray field to be able to reactivate several wells. The company commissioned the facility in June 2021 with the reactivation of another well in the Bigoray field.

• Subsequent to the period, the company has completed another reactivation of a well that Pulse drilled in 2019, further increasing the production from the Bigoray field. Additionally, the company has begun testing two more wells nearby to its production facility to determine the feasibility of full-time production.

Second Quarter Discussion of Operations

Operations, for the three months ended June 30, 2021 and subsequent, continued the efforts of the company to re-establish production from recently shut-in wells due to the closure of a third party processing facility and the completion of a new processing facility. These efforts are intended to increase production and cash flow, particularly as prices for oil and gas have been steadily increasing throughout 2021 to date. Production has been re-established at 2 additional wells in the Bigoray field. Work has been completed to install a new water injection and processing facility at a Pulse Bigoray location.

The Company also reports that price differentials had remained low and oil pricing had continued to improve throughout the period and has continued through the date of this report. With the continued shut-in of the Queenstown field and the resulting impact of the third party facility closure, the company ended the 2020 fiscal

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year at approximately 25 bbl/d of total production. With the most recent reactivation, Pulse is currently producing 343 BOE/d (61% oil) as of the date of this report and has three additional wells that are expected to be activated by October 2021. The company will continue to monitor the change in pricing and make decisions that are in the best interest of the company and its shareholders.

Bigoray Assets (100% owned and operated):

These 100% owned and operated assets consist of proved and probable reserves (McDaniel & Associates Consultants Ltd.) of 1,517,200 BOE (NPV10: $19,860,300) as of December 31, 2020 and 5,349 net acres of land.

As described above, the company has completed its 100% owned processing and injection facility, allowing Pulse to be able to reactivate a number of wells that were forced to shut-in following the closure of a third-party processing facility that the Company had been producing to. With the completion of the facility, the Company continues to evaluate several other wells for potential reactivation that will allow for continued growth in the field.

Queenstown Assets (100% interest and operator):

These 100% owned and operated assets consist of proved and probable reserves (McDaniel & Associates Consultants Ltd.) of 288,800 BOE (NPV10: $1,758,700) as of December 31, 2020 and consist of 3,023 net acres of land.

During the quarter, all of the previously producing wells have been recently reactivated in the Queenstown field. The company was also able to negotiate more favorable lease terms on one of its key wells to improve the netback on the production. The company is continuing to explore additional workover options to be able to optimize production going forward.

During the quarter, all of the previously producing wells have been recently reactivated in the Queenstown field. The company was also able to negotiate more favorable lease terms on one of its key wells to improve the netback on the production. The company is continuing to explore additional workover options to be able to optimize production going forward.	During the quarter, all of the previously producing wells have been recently reactivated in the Queenstown field. The company was also able to negotiate more favorable lease terms on one of its key wells to improve the netback on the production. The company is continuing to explore additional workover options to be able to optimize production going forward.
Summary of Quarterly Results Q2 2021 Q1 2021 Q4 2020 Q3 2020
Revenue (gross)	$ 527,552 $ 359,480 $ 120,477 $ 285,075
Net income (loss) from continuing operations	$ (157,853) $ 231,470 $ (2,087,880) $ (216,590)
Net income (loss) per share from continuing operations	$ (0.00) $ 0.00 $ (0.01) $ (0.00)
Cash-flow from (used in) operating activities	$ (27,548) $ (146,870) $ (18,834) $ 89,752
Cash-flow provided by (used in) financing activities	$ 1,378,950 $ 356,119 $ (49,169) $ (40,831)

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Cash-flow used in investing activities	$ (753,283) $ (126,260) $ - $ (20,593)
Increase (decrease) in cash during the period	$ 598,119 $ 82,989 $ 30,335 $ 28,328
Cash	$ 783,619 $ 185,500 $ 102,511 $ 72,176
Total assets	$ 18,466,187 $ 17,364,240 $ 17,223,759 $ 18,736,856
Total non-current financial liabilities	$ 3,367,699 $ 3,230,985 $ 2,843,447 $ 2,819,886
Total liabilities	$ 5,198,132 $ 5,412,282 $ 5,495,221 $ 4,980,438
Shareholders deficit	$ (8,800,259) $ (8,642,406) $ (8,873,876) $ (6,845,996)

Summary of Quarterly Results (Continued)	Q2 2020 Q1 2020 Q4 2019 Q3 2019
Revenue (gross)	$ 206,325 $ 378,368 $ 443,428 $ 698,048
Net income (loss) from continuing operations	$ (337,955) $ (533,904) $ (3,258,548) $ (252,276)
Net income (loss) per share from continuing Operations	$ (0.00) $ (0.00) $ (0.02) $ (0.00)
Cash-flow from (used in) operating activities	$ (110,926) $ (65,621) $ 4,596 $ (759,631)
Cash-flow provided by (used in) financing activities Cash-flow used in investing activities	$ (10,831) $ (125,000) $ (125,000) $ -
	$ (6,702) $ (16,277) $ (365,934) $ (946,105)
Increase (decrease) in cash during the period	$ (128,459) $ (206,898) $ (486,338) $ (1,705,736)
Cash	$ 43,848 $ 172,307 $ 379,205 $ 865,543
Total assets	$ 18,790,939 $ 19,007,724 $ 19,545,510 $ 22,302,311
Total non-current financial liabilities	$ 2,907,279 $ 2,961,558 $ 2,791,027 $ 2,474,794
Total liabilities	$ 4,757,931 $ 4,636,761 $ 4,640,643 $ 3,718,465
Shareholders deficit	$ (6,569,406) $ (6,231,451) $ (5,697,547) $ (2,018,548)

As of June 30, 2021, Pulse had negative working capital of $729,770 compared to negative working capital of

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$1,670,273 as at June 30, 2020. The working capital was reduced throughout 2020 and into 2021 as Pulse continued to invest capital on completion and workover operations on wells in both its Queenstown and Bigoray fields. Additional declines in oil pricing in 2020 further impacted the working capital of the company. Throughout 2021, the rebounding of commodity pricing has assisted in the cash flow of the Company and has allowed for an improvement in working capital. The completion of the rights offering during the period further assisted the company to reduce some of its current liabilities and invest into additional capital projects to improve it’s cash flow moving forward.

For each of the three most recently completed years, the financial data has been prepared in accordance with the accounting policies summarized in Note 3 of the 2020 Financial Statements.

Liquidity and Capital Resources

Liquidity and Capital Resources	Liquidity and Capital Resources	Liquidity and Capital Resources
For the period ended June 30, 2021 For the period ended June 30, 2020 For the period ended June 30, 2019
Cash	$ 783,619 $ 43,848 $ 2,571,279
Working capital	$ (729,770) $ (1,670,273) $ 1,239,882
Three Month Cash-flow from (used in) operating activities	$ (27,548) $ (110,926) $ (96,942)
Six Month Cash-flow from (used in) operating activities	$ (174,418) $ (176,547) $ (1,275,513)
Property acquisition liability	$ 973,785 $ 1,047,319 $ 1,213,944

Pulse continues to be prudent in forecasting any changes to current commodity prices, ensuring all business decisions are being completed with the understanding of the current cash flow of the company. All costs are being evaluated carefully to ensure the continued viability of the company.

The Company’s operational plan is in place to continue to use cash flow from operations and the rights offering that closed during the quarter, but continue to explore additional funding opportunities. Current capital is being implemented to test several additional wells for potential reactivation. Pulse’s short and long-term plans are heavily dependent on Pulse’s ability to fund the Bigoray EOR project, combined with cost-effective options to growing production rates and cashflow from existing wells.

Share Capital

During the period ended June 30, 2021, Pulse completed a rights offering. Pulse issued 151,592,357 common shares raising total gross aggregate proceeds of $1,515,924.

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As previously announced and described in the rights offering circular, Pulse entered into a Standby Commitment Agreement, in connection with the Standby Commitment Agreement the Standby Purchaser was issued an aggregate of 37,500,000 bonus non-transferable share purchase warrants (the “ Warrants ”). Each Warrant is exercisable for sixty (60) months from the date of issuance into one common share at a price of $0.05 per Common Share.

As of the date of this report, Pulse has 303,184,714 common shares outstanding and 37,500,000 warrants outstanding.

Pulse’s authorized share capital consists of one class of shares, being common shares.

For more information related to Pulse’s share capital, please refer to note 8 of the accompanying condensed interim consolidated financial statements for the period ended June 30, 2021.

Commitments and Contingencies

As at June 30, 2021 the Company has committed to the following:

Commitment Financial Implication Frequency Initial Payment Completion	Commitment Financial Implication Frequency Initial Payment Completion
Long-Term Liability– Bigoray Purchase	$31,932 Monthly October 1, 2021 May 1, 2024

Financial Instruments

As at June 30, 2021, the Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and property acquisition liability.

Categories of financial assets and financial liabilities

The carrying values of the Company’s financial instruments are classified into the following categories:

Financial instrument	Category	June 30, 2021	December 31, 2020
Cash and cash equivalents	FVTPL	783,619	102,511
Accounts receivable	Amortized cost	274,143	45,057
Accounts payable	Amortized cost	1,502,003	2,172,645
Propertyacquisition liability	Amortized cost	973,785	985,232

Fair value of financial instruments

IFRS 7 establishes a fair value hierarchy for financial instruments measured at fair value that reflects the significance of inputs in making fair value measurements as follows:

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• § Level 1 - applied to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

• § Level 2 - applies to assets or liabilities for which there are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly such as quoted prices for similar assets or liabilities in active markets or indirectly such as quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions.

• § Level 3 - applies to assets or liabilities for which there are unobservable market data.

As at June 30, 2021 and December 31, 2020, Cash and cash equivalents of $783,619 and $102,511 were measured at fair value on a recurring basis and classified as Level 1.

The fair value of the Company’s other financial instruments approximates their carrying value as at June 30, 2021 and December 31, 2020 because of the demand nature or short-term maturity of these instruments liabilities.

Financial instruments and risk management

The Company is exposed to various risks that arise from its business environment and the financial instruments it holds. The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk exposures and explains how these risks and its capital structure are managed.

Capital management

The Company’s objective is to maintain its capital base to maintain investor, creditor and market confidence and to sustain future development of the business. The Company manages its capital structure and makes adjustments to it, as it is able to, in light of changing economic conditions and the risks associated with working within the oil and natural gas industry. The Company considers its capital structure to include shareholders’ equity and working capital. In order to maintain or adjust the capital structure, the Company may issue shares, issue debentures or obtain new credit facilities.

In order to facilitate the management of its capital structure, the Company prepares annual capital expenditure budgets, which are updated throughout the year depending on a variety of factors such as current and forecast prices, actual capital deployment and general industry conditions. There has been no change to this approach for the year.

Liquidity risk

Liquidity risk is the risk that the Company will not meet its financial obligations as they become due. The Company’s approach to managing liquidity risk is to ensure, as far as reasonable, that it will have sufficient liquidity to meet is liabilities when they come due. Typically, the Company will ensure that it has sufficient cash on hand to meet expected operational expenses for a period of 60 days, including the servicing of financial obligations. To achieve this objective, the Company’s use of capital expenditure budgets, cash flow forecasts and authorizations for expenditures on both operated and non-operated projects assist the Company in management of liquidity risk.

The Company may need to seek a combination of debt, equity and/or asset divestitures to meet its operational requirements. As at June 30, 2021, the company has cash of $783,619 (December 31, 2020 - $102,511) to meet its current liabilities of $1,830,433 (December 31, 2020 - $2,651,774).

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Contractual undiscounted cash flow requirements for financial liabilities as at June 30, 2021 are as follows:

	<1 year	2-3 Years 4-5 Years	2-3 Years 4-5 Years	Thereafter	Total
Accounts payable and accrued liabilities $ 1,502,003		—	—	—	$1,502,003
Property acquisition liability	328,430	645,355	—	—	973,785
Reclamation provision	—	—	—	2,217,344	2,217,344
	$ 1,830,433	645,355	— $ 2,217,344		$4,693,132

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet is contractual obligations. Financial assets subject to credit risk include cash and cash equivalents and accounts receivable. Cash and cash equivalents are held with Canadian banks, and the Company does not believe cash and cash equivalents would be subject to material credit risk. Accounts receivable credit risk arises principally from sales of oil and gas products to various customers.

Related Party Transactions:

As required under IAS 24, related party transactions include compensation paid to the Company’s President, CEO, COO and CFO, as well as to the remaining board of directors (the “Board”) as part of the ordinary course of Pulse’s business. Pulse is of the view that the amounts incurred for services provided by related parties approximates what Pulse would incur to arms-length parties for the same services.

	Three Months	Three Months	Six Months	Six Months
	Ended	Ended	Ended	Ended
	June 30, 2021 $	June 30, 2020 $	June 30, 2021 $	June 30, 2020 $
Salaries paid to CEO	36,615	23,125	59,740	69,375
Management fees paid to CFO	19,173	12,500	31,673	37,500
Salaries paid to COO	-	23,125	-	69,375
	55,788	58,750	91,413	176,250

Pulse reports that no other related party transactions have occurred during the period ended June 30, 2021. Please also refer to note 9 of the accompanying condensed interim consolidated financial statements for the period ended June 30, 2021.

Off-Balance Sheet Arrangements

Pulse has certain arrangements, all of which are reflected in the contingencies and commitments table, which were entered into in the normal course of operations. All leases have been treated as operating leases whereby the lease payments are included in operating expenses or general and administrative expenses depending on the nature of the lease.

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Non-IFRS Financial Measures

This MD&A contains references to funds used in operations, cash provided by (used in) operations per share, and operating netback; which are not defined under IFRS as issued by the International Accounting Standards Board. These measures are non-IFRS financial measures that do not have any standardized meaning prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures presented by other issuers. Management of Pulse believes funds used in operations, cash provided by (used in) operations per share, and operating netback are relevant indicators of Pulse’s financial performance and its ability to fund future capital expenditures. Funds used in operations and operating netback should not be considered an alternative to or more meaningful than cash flow from operating activities, as determined in accordance with IFRS, as an indicator of Pulse's performance. Readers should refer to the “Operating Netback and Funds Used in Operations” heading above for a reconciliation of operating netback and funds used in operations to cash from operating activities, the most comparable measure calculated in accordance with IFRS.

Oil and Gas Metrics and Definitions

Production information is commonly reported in units of barrel of oil equivalent ("boe"). For purposes of computing such units, natural gas is converted to equivalent barrels of oil using a conversion factor of six thousand cubic feet to one barrel of oil (6:1). This conversion ratio of 6:1 is based on an energy equivalency conversion method primary applicable at the burner tip and does not represent a value equivalency at the wellhead. Such disclosure of boe’s may be misleading, particularly if used in isolation. Additionally, given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion ratio of 6:1 may be misleading as an indication of value. Readers should be aware that historical results are not necessarily indicative of future performance. Natural gas production is expressed in thousand cubic feet (“mcf”). Oil and natural gas liquids are expressed in barrels (“bbls”).

Terms that are used in this MD&A that are not otherwise defined herein are provided below:

Developed producing reserves are those gross reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty.

Developed non-producing reserves are those reserves that either have not been on production, or have previously been on production, but are shut in, and the date of resumption of production is unknown.

Developed reserves are those gross reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (for example, when compared to the cost of drilling a well) to put the reserves on production. The developed category may be sub-divided into producing and non-producing.

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Discovered Petroleum-initially-in-place is that quantity of petroleum, which is estimated, on a given date, to be contained in known accumulations, plus those quantities already produced therefrom.

Gross means (i) in relation to the Company's interest in production or reserves, its "company gross reserves", which are the Company's working interest (operating or non-operating) share before deduction of royalties and without including any royalty interests of the Company; and (ii) in relation to wells, the total number of wells in which the Company has an interest.

Net means, in relation to the Company's interest in wells or lands, the number of wells obtained by aggregating the Company's working interest in each of its gross wells.

Probable reserves are those additional gross reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.

Proved reserves are those gross reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.

Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on: (i) analysis of drilling, geological, geophysical and engineering data; (ii) the use of established technology; and (iii) specified economic conditions, which are generally accepted as being reasonable. Reserves are classified according to the degree of certainty associated with the estimates.

Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves classification (proved, probable) to which they are assigned.

Amplitude versus offset is the general term for referring to the dependency of the seismic attribute, amplitude, with the distance between the source and receiver (the offset). AVO analysis is a technique that geophysicists can execute on seismic data to determine a rock’s fluid content, porosity, density or seismic velocity, shear wave information and fluid indicators.

Proposed Transactions

There are no proposed transactions not already disclosed elsewhere in this MD&A.

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Forward Looking Statements

The MD&A contains forward-looking information statements within the meaning of Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “assume”, “believe”, “estimate”, “expect”, “forecast”, “guidance”, “may”, “plan”, “predict”, “project”, “should”, “will”, or similar words suggesting future outcomes. Forward-looking statements in this MD&A include, but are not limited to, statements with respect to: business combinations, financing, agreements, transactions, oil and natural gas acquisition, reserves, enhanced oil recovery, oil and natural gas production estimates and targets; statements regarding BOE/d production capabilities; anticipated revenue from oil and gas fields; completing acquisitions, development and exploration and other activities; capital expenditure programs and estimates; plans to drill wells; plans to grow reserves, production, and cash-flow. Forward-looking statements and information concerning anticipated financial performance are based on management’s assumptions using information currently available. Material factors or assumptions used to develop forward-looking information include that planned acquisitions will be completed, and assumptions as to development, enhanced oil recovery, financing, LLR, business combinations, drilling programs and results, construction operations and enhancements, potential business prospects, growth strategies, the ability to add production and reserves through acquisition, development and exploration activities, the ability to reduce costs and extend commitments, projected capital costs, government legislation, well performance, the ability to market production, the commodity price environment and quality differentials and exchange rates.

Management also assumes that in connection with the Bigoray Assets, its 100% owned subsidiary, Pulse Oil Operating Corp, will be able to work with the operator of the assets to maintain permit tenures in good standing, and that Pulse will be able to access equity capital when required and that Pulse will maintain access to necessary oil and gas industry services and equipment to conduct its operations. Management also assumes that in connection with the Queenstown Assets, its 100% owned subsidiary, Pulse Oil Operating Corp as operator, will work to maintain permit tenures in good standing, and that Pulse will be able to access equity capital when required and that Pulse will maintain access to necessary oil and gas industry services and equipment to conduct its operations. Pulse will maintain access to necessary oil and gas industry services and equipment to conduct its operations. Although management considers its assumptions to be reasonable based on these factors, they may prove to be incorrect.

Because forward-looking information addresses future events and conditions, it involves risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking information. These risks and uncertainties include, but are not limited to: access to capital, commodity price volatility; well performance and marketability of production; transportation and refining availability and costs; exploration and development costs; enhanced oil recovery costs, infrastructure costs; the recoverability of reserves; reserves estimates and valuations; the Company’s ability to add reserves through development and exploration activities; accessibility of services and equipment; fluctuations in currency exchange rates; and changes in government legislation and regulations.

The forward-looking statements contained herein are as of the date of this MD&A, and are subject to change after this date. Readers are cautioned that the foregoing list of factors that may affect future results is not exhaustive and as such undue reliance should not be placed on forward-looking statements. Except as

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required by applicable securities laws, with the exception of events or circumstances that occurred during the period to which the MD&A relates that are reasonably likely to cause actual results to differ materially from material forward-looking information for a period that is not yet complete that was previously disclosed to the public, the Company disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

Certain information in this MD&A may constitute “analogous information” as defined in National Instrument 51101 Standards of Disclosure for Oil and Gas Activities, including, but not limited to, information relating to areas with similar geological characteristics to the lands held by the Company. Such information is derived from a variety of publicly available information from government sources, regulatory agencies, public databases or other industry participants (as at the date stated therein) that the Company believes are predominantly independent in nature. The Company believes this information is relevant as it helps to define the reservoir characteristics in which the Company may hold an interest. The Company is unable to confirm that the analogous information was prepared by a qualified reserves evaluator or auditor and in accordance with the COGE Handbook. Such information is not an estimate of the reserves or resources attributable to lands held or to be held by the Company and there is no certainty that the reservoir data and economics information for the lands held by the Company will be similar to the information presented therein. The reader is cautioned that the data relied upon by the Company may be in error and/or may not be analogous to the Company’s land holdings.

Disclosure provided herein in respect of BOE (barrels of oil equivalent) may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Additional Information

Additional information regarding Pulse and its activities is available on SEDAR at www.sedar.com or on Pulse’s website at www.pulseoilcorp.com. Information can also be requested from Pulse’s head office located at Suite 500, 666 Burrard Street, Vancouver, British Columbia, Canada V6C 3P6.

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CORPORATE INFORMATION

A

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Board of Directors and Officers Garth Johnson[1, ] CPA

Chief Executive Officer, Director Drew Cadenhead, B.Sc., P. Geol

President / Chief Operating Officer, Director Dr. Douglas Ellenor[1 ] Ph.D. (Geol), B.Sc., (Hons Geol) Director

.Jack Doyle[1] , P. Eng. Director Daniel Bolstad Director

Aaron Doyle, P.Eng., CPA / CMA Chief Financial Officer Notes

1 Member of the Audit Committee

Stock Exchange Listing TSX Venture Exchange Common Share Trading Symbol: “PUL”

Legal Counsel Owen Bird Law Corp. Vancouver, BC

Parlee McLaws LLP Edmonton, AB

Bankers Bank of Montreal Vancouver, BC

Auditors Manning Elliott LLP Vancouver, BC

Independent Reserves Evaluators McDaniel and Associates Consultants Ltd. Calgary, AB

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Suite 500, 666 Burrard Street Vancouver, British Columbia V6C 3P6 604.909.1152 www.pulseoilcorp.com