RedWater Energy Corp. Receivership Sale

Grant Thornton Limited, the Receiver of RedWater Energy Corp. has retained CB Securities Inc. as its advisor for the sale of certain RedWater oil and gas properties, on an as is where is basis. Prospective buyers are asked to submit a Non-Binding Bid for any of the properties by September 22, 2016.

While the properties are available separately, the aggregate of the properties is summarized as follows:

• Opportunity to improve a Liability Management Rating (“LMR”)
  • RedWater Aggregate Deemed Assets of $4,490 thousand and Deemed Liabilities of $1,822 thousand, creating an August 2016 surplus of $2,667 thousand and LMR of 2.46
• Opportunity to acquire 82 Bbls/day of net oil and 219 Mcf/day of net gas
• Ability to increase production related to the acquisition with simple maintenance and low cost optimization projects
  • Near term addition of 52 Bbls/day net oil and 145 Mcf/day net gas
• Addition of lower risk, lower cost drilling inventory
  • Nine (9) net wells identified for expected addition of 310 to 460 Bbls/day of oil for ~$5.7 million of capital (2014 estimate)
• Purchasers would only need to have an LMR of at least 1:1 post-transaction
• Most of the production and upside available is in the Redwater area of Alberta

The AER, in accordance with the terms of the May 19, 2016 Court Order they consented to, has agreed to allow Grant Thornton, in its capacity as Receiver of RedWater, to sell the properties in this offering.

Prospective purchasers wishing to participate in this Offering are requested to direct their inquiries to Darryl Derouin at (403) 781-7041, email us at info@cbsecurities.com, or visit our website at RedWater Energy Corp. — CB Securities Inc. for more specific property information.