Corporate Presentation March 2015 TSX: YGR TSX: YGR Our job is to - PowerPoint PPT Presentation

Corporate Presentation March 2015 TSX: YGR TSX: YGR

• Our job is to create shareholder value • Integrity and ethical behavior are essential to success • Sound ethics and shareholders interests are compatible • It is okay to be wrong: own it, accept it, learn from it • Embrace adversity, it is a difficult business • Diversity of skill-sets within the team are critical to success • Loyalty, performance and achievement are recognized • Top decile performance in all categories is the goal • Full cycle Corporate IRR is what measures our success 2 TSX: YGR

Publicly listed junior oil and gas company TSX: YGR Shares Outstanding Basic 57.7 million Options/Warrants (weighted average $1.90) 4.1 million Fully Diluted 61.8 million Insider Ownership 16%/21% Basic/Fully Diluted Market Capitalization (at $1.25/share) $72 million Q4 Net Debt ($90 million in ATB credit facilities) $59 million Enterprise Value $131 million 2014 net debt to 2014 cash flow 1.56 : 1 Proved Developed @ Dec 31, 2014 (NPV10) 5.8 mmboe / $99.6 million Total Proved @ Dec 31, 2014 (NPV10) 20.5 mmboe / $225.4 million Proved plus Probable Reserves @ Dec 31, 2014 (NPV10) 37.4 mmboe /$395.1 million NAV / Share (with no undeveloped land value) @ Dec 31, 2014 $5.84 3 TSX: YGR

Management Team Randall Faminow, VP, Land Jim Evaskevich, President & CEO • • 30+ years of experience in all aspects of oil and gas land work, 30+ years extensive executive experience with strong including negotiation, acquisitions and divestments, contracts operations background and mergers James Glessing, CA, CFO Lorne Simpson B.Sc., C.E.T., VP, Operations • 15+ years oil and gas accounting experience • 30+ years experience in the industry • Executive and financial experience as CFO with North Peace • Supervisor, Drilling Ops with PetroBakken Energy Ltd. Energy Corp • Engineered, drilled or completed 250 HZ Cardium • Controller at BlackRock Ventures, wells, 200 HZ Bakken wells, 2 HZ Duvernay wells, 25 • Canadian Natural Resources, Shell and Deloitte HZ Montney wells, and dozens of Blue Sky, Viking, SWS, Glauc, and Rock Creek HZ wells Board of Directors Gordon Bowerman Neil Mackenzie • • Chairman Director of various public companies, including Canyon • President of Cove Resources Ltd Technical Services • • Founder of several successful private and public oil Currently a partner in Blackstone Fluids, an oil and gas and gas companies drilling fluids company Robert Weir Ted Morton • • President of Weir Resource Management Ltd A former Canadian politician and cabinet minister in the Alberta government • Has held various positions in the Alberta Government Jim Evaskevich included Minister of Energy (2011-2012), Minister of • President and CEO of Yangarra Resources Ltd Finance and Enterprise (2010-2011), and Minster of Sustainable Resources (2006-2010) 4 TSX: YGR

Half Cycle IRR (1) Full Cycle IRR (2) 80% 70% 60% 50% IRR 40% 67% 65% 30% 20% 41% 34% 33% 31% 27% 26% 24% 10% 12% 0% 2010 2011 2012 2013 2014 1. Half cycle IRR is based on actual drilling and completion costs, production to date and P+P reserves. 2. Full cycle IRR allocates all other capital costs to the wells (i.e. land, G&G, infrastructure) 5 TSX: YGR

$6,000 $5,000 473 498 $4,000 1,807 373 Equip 298 $3,000 Complete 1,792 273 1,376 Drill 1,187 1,134 $2,000 2,832 2,134 2,088 $1,000 1,808 1,563 $0 2010 2011 2012 2013 2014 6 TSX: YGR

2014 Production 2,870 boe /d Liquid Content 49% Sales Price $ 52.10 /boe Royalty income 0.81 / boe Royalty expense (3.35) / boe Production costs (6.89) / boe Transportation costs (1.58) / boe Field Operating netback $ 41.10 / boe Commodity contract settlement (0.49) / boe Operating netback $ 40.62 / boe G&A and other (excludes non-cash items) (2.05) / boe Finance expenses (2.36) / boe Cash flow netback $ 36.21 / boe 7 TSX: YGR

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50,000,000 4,000 40,000,000 (Cashflow) 3,000 (mboe) 30,000,000 2,000 20,000,000 1,000 10,000,000 Cashflow Production 0 0 2010 2011 2012 2013 2014 (est) 0.00006 Production per share 0.80 Cash Flow per Share 0.70 0.00005 0.60 0.00004 0.50 0.00003 0.40 0.30 0.00002 0.20 0.00001 0.10 - - 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 10 TSX: YGR

P+P Reserves (mboe) Reserve Value PV10 ($ millions) 40,000 500 400 30,000 300 Oil 20,000 NGL's 200 10,000 Natural gas 100 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Reserve Value PV10 ($ millions) P+P Reserves (mboe) 500 40,000 400 30,000 300 PROB 20,000 200 PUD PDNP 10,000 100 PDP 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 • Replaced 2013 production by 1,887% (614% in 2012) • Finding and development recycle ratio of 3.55 times on P+P reserves • Finding and development costs of $11.92/boe on proved plus probable reserves • Reserve life index of 34 years • Future development costs of $297 million 11 TSX: YGR

Central Alberta • Interest in 140 sections of land • 85 + horizontal wells drilled since 2010 • Focus • Cardium and Glauc plays Pembina Edmonton • Light oil Willesden Green • Rocky Mountain House High netback Ferrier Red Deer • Quick payouts Calgary 12 TSX: YGR TSX: YGR

Colorado Group 650m thick Cardium 5m • Vertical production Second White Specks 30m exists in all zones Viking 5m • All zones meet the criteria for horizontal drilling Glauconitic 20m Ellerslie 10m Rock Creek 15m Duvernay 13 TSX: YGR TSX: YGR

T44 T44 LOWE LOWER CARD UPPER UPPE R CARDIUM GASSY GASSY IUM OIL CAR CARDIUM T43 T43 DIUM WILLESDEN GREEN CARDIUM FIELD L L O O W W E E R R T42 T42 CAR CARDIUM DIUM P R O S P E C T I V E UPPE UPPER C C A A H R R D D Z I I T41 U U T41 M M O I L PRO ROSP SPECT CTIVE VE LOWER LOW ER CARD RDIUM IUM HZ HZ O OIL GAS T40 T40 FERRIER CARDIUM FIELD P R O S P E C HZ T I V E P O R I O L S H P E Z C Legend T OIL I V E Wells T39 T39 cardium wtr inj PROSPECTIVE HZ cardium gas GAS cardium oil Working PROSPECTIVE HZ OIL yangarra land Farmin land T38 T38 Cardium Show Map cardium pool outlines T37 T37 By : Poruchny Date : 2013/12/04 Scale = 1:85000 Project : cardium show map R9 R8 R7 R6 R5W5 14 TSX: YGR TSX: YGR

T42 T42 T41 T41 HOADLEY BARRIER ISLAND BARRIER ISLAND T40 T40 HOADLEY CHANNEL HANNEL any any cut cut amoun amount T39 T39 Legend Wells glauc @TD glauc pens HZ glauc liquid rich gas All Glauc liquid rich gas T38 T38 Working CHANNEL Yangarra land any any cut cut amoun amount Glauconite Show Map T37 T37 Porosity Trends By : Poruchny Date : 2013/12/04 Scale = 1:85000 Project : glauc show map2 R9 R8 R7 R6 R5 R4 R3W5 15 TSX: YGR

• Let industry de-risk the play • Continue land-base to 2020 with strat test wells • Larger players are migrating to the Duvernay which may provide opportunities in plays like the Cardium and Glauc in Central Alberta • Continue to collect data and further de- risk Yangarra’s acreage The Duvernay represents option value that is not reflected in the current share price 16 TSX: YGR

• Early production rates show initial liquids yields up to 200 bbl/MMcf • Duvernay operators are still establishing Best Practices for Drilling and Completion • Production data supports the emergence of an economically attractive liquids fairway • Geological parameters (mineralogy, thickness, HC potential, TOC, fractures, brittleness, net pay, etc.) are generally known from industry activity/results, public data/analysis and YGR proprietary work • Reservoir Characteristics evolving • Local variations in rock YGR Acreage properties/well performance can be expected with further drilling 17 TSX: YGR

• Very Active Areas with high capital investment currently by majors and large independents • North Block primarily in liquids window with new YGR NORTH BLOCK horizontal drilling by Vermillion/Black Swan immediately offsetting (2 miles) YGR land • South Block surrounded by drilling activity (Shell, Encana, Talisman, Black Swan Swan/Paramount) YGR SOUTH BLOCK 18 TSX: YGR

• Significant amounts of oil have been produced over the past 30 years from vertical wells • 10 to 20 million barrels of Original Oil in Place (OOIP) per section • Accumulated 45 gross (35 net) sections • Yangarra has 3 horizontal wells and 2 vertical wells in the SWS formation Yangarra Land 19 TSX: YGR

Oil Hedges 2015: 300 bbl/d hedged at C$102.56 WTI/bbl 2015: 500 bbl/d hedged with a costless collar C$65.00 WTI/bbl and a ceiling of C$73.50 WTI/bbl 2015: 800 bbl/d of Edmonton par to WTI differential hedges at US$6.75/bbl Natural Gas Hedges 2015: 2,000 GJ/d hedged at $4.11/GJ or $5.10/mcf* Interest Rate Swaps 4.70% Fixed rate on $10 million (June 2014-June 2018) 4.85% Fixed rate on $10 million (June 2014-June 2018) * Assumes Yangarra specific heat value 20 TSX: YGR

Appendix 21 TSX: YGR