DISCLAIMER: FORWARD-LOOKING STATEMENTS

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2 DISCLAIMER: FORWARD-LOOKING STATEMENTS In the interest of providing potential investors with information regarding Reserve Royalty Income Trust ( RRIT ), this presentation contains certain forward-looking statements and other information (collectively forward-looking information or forward-looking statements ) about RRIT s current expectations, plans and projections. All statements contained herein that are not clearly historical in nature are forward-looking, and the words anticipate, believe, intend, expect, estimate, plans and similar expressions are generally intended to identify forward-looking statements. Such statements represent RRIT s internal projections, estimates or beliefs. This presentation contains forward-looking statements, concerning, among other things: RRIT s future plans and operations; RRIT s focus and investment and acquisition strategy; anticipated future yields and distributions, and the timing, amount and growth of such distributions; estimated debt; estimated production, product mix, cash flow, netback, revenue, distributions and payout ratio; the use of net cash flow; future opportunities and projects, gross overriding royalty forecasts, royalty income, multiple annualized cash flow, drilling locations and other upside therewith; inventory of royalty lands, including the acquisition of oil and gas royalties and the creation of such royalties; plans to drill, development upside and growth opportunities; anticipated margins; reserves; industry conditions and commodity pricing; and other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These statements are only predictions. Although RRIT believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements since such expectations are inherently subject to significant risk and contingencies. Many factors could cause RRIT s actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, RRIT. As a result, RRIT s actual results, performance or achievement could differ materially from those expressed, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur. In addition, the reader is cautioned that historical results are not necessarily indicative of future performance. These forward-looking statements are based on assumptions and are subject to numerous risks and uncertainties, certain of which are beyond RRIT s control. Some of the risks and other factors which could cause actual results to differ materially from those expressed in the forward-looking statements contained in this presentation include, but are not limited to: general economic conditions in Canada and globally; industry condition, including fluctuations in the price of oil and gas; imprecision of reserve estimates; environmental risks; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; availability of sufficient financial resources; commodity price and interest and exchange rate fluctuations; ability to access sufficient capital; ability to locate satisfactory properties for acquisition or participation; stock market volatility; changes in environmental and other regulations, incorrect assessments of the value of acquisitions and the benefits to be derived there from; supply and demand; market valuations; and competition for, among other things, capital, undeveloped land and skilled personnel. With respect to forward-looking statements contained in this presentation, RRIT has made assumptions regarding: future exchange rates; the price of oil and natural gas; the impact of increasing competition; conditions in general economic and financial markets; availability of skilled labour; cash flow; commodity prices; production rates; timing and amount of capital expenditures; royalty rates; effects of regulation by government agencies; future operating costs; and RRIT s ability to obtain financing on acceptable terms. RRIT has included the above summary of assumptions and risks related to forward-looking information provided in this presentation in order to provide readers with a more complete perspective on RRIT s future operations and such information may not be appropriate for other purposes. Readers are cautioned that the foregoing lists of factors are not exhaustive. These forward-looking statements are made as of the date of this presentation and RRIT disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. Certain information set out herein may be considered as financial outlook within the meaning of applicable securities laws. This financial outlook was approved by management of RRIT. The purpose of this financial outlook is to provide readers with disclosure regarding RRIT s reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.

3 OVERVIEW Reserve Royalty Income Trust (the Trust ) is a Calgary based, private oil and gas royalty trust. The Trust is focused on creating long-term value for its unit holders through growth and sustainable cash distributions derived from disciplined and creative oil and gas royalty investments. The Trust was co-founded in June 2013 by Rick F. (Buck) Braund and Randy Best. Reserve Royalty s properties are located in the Western Canadian Sedimentary Basin and focus on liquids-rich natural gas and conventional light and medium oil production. The Trust s business plan is to acquire existing oil and gas royalties and mineral fee title lands. The Trust will also create royalty income streams on producing and undeveloped lands through investing in oil and gas development with high quality operators. Management and Directors own 13.6% of the outstanding Million trust units to ensure alignment with unit holders.

4 2017 A POSITIVE YEAR OF CHANGE Started the transformation to a pure play royalty company Acquired 100 bbl/day of gross overriding oil royalty income in Wainwright, Alberta Sold 500 boe/day of natural gas and liquids non-operated, working interest production in Wapiti/South Wapiti Alberta Funds from Operations = $6.8 Million (6.4 cents/unit) Maintained Distribution at 4 cents/unit/year paid quarterly Greater than 50% of total revenue came from royalties Reduced bank debt by $3.5 Million to $2.7 Million

5 AB B O E / D O i l B B L / D G a s 2 2 M C F / D L i q u i d s 1 B B L / D M B O E ( 2 P ) ACQUIRED 2.5% GROSS OVERRIDING OIL ROYALTY $14.5 MM Low Decline With Upside Drilling

6 AB 900 B O E / D t o t a l O i l 1. 5 B B L / D G a s 4, M C F / D L i q u i d s B B L / D 3, M B O E ( 2 P ) SOLD WAPITI AND SOUTH WAPITI FOR $14.2 MM

7 2018 CONTINUING THE TRANSFORMATION Continuing the transformation to a pure play royalty company Acquired 18 sections of 100% working interest land in the Duvernay oil prospective East Shale Basin of Alberta Will develop/farm-out/sell the acquired Crown and Fee Title Duvernay oil acreage and retain a royalty on the lands Will pursue the sale or swap for royalties of our remaining 850 boe/day of natural gas and liquids non-operated, working interest production in Elmworth and the Deep Basin BC Forecast Funds from Operations = $4.8 Million Distribution Forecast at 4 cents/unit/year paid quarterly Royalty revenue is forecast to be greater than 80% of total revenue 10 new horizontal royalty wells drilled for us at no cost 4 oil wells and 6 natural gas wells

8 DUVERNAY OIL & GAS EAST SHALE BASIN OVERVIEW

9 PENHOLD AREA DUVERNAY OIL DEVELOPMENT 75 Net Potential Horizontal Drilling Locations source of royalty income

10 CUMULATIVE DISTRIBUTIONS 2013 Q ($ MM) 25 $21.6 MM 20 $18.4 MM 15 $14.2 MM to Q Distributions are a tax free return of capital, lowering an investor s acb

11 ROYALTY PAYORS Financially Stable, Public and Private Companies

12 MANAGEMENT TEAM AND BOARD OF DIRECTORS Rick F. (Buck) Braund Chairman & CEO (1) (3) Randy Best, P. Eng. (1)(2)(3) President & COO Director Mark Munro, CPA (2) VP Finance and CFO Michael Culbert Independent Director (1) (2) (3) Harry Jung (1) (3)* Independent Director Robert Puchniak Independent Director (1) (2)* David Ross (2) (3) Independent Director Partner, Burnet, Duckworth & Palmer (Barrister and Solicitors) Ken Rowan (1)* (2) Independent Director (1) Human Resources, Compensation and Corporate Governance Committee member (2) Audit Committee member (3) Reserve Committee member * Denotes Committee Chair

13 EXECUTIVE BIOGRAPHIES Rick F. Braund CHAIRMAN & CEO Rick (Buck) Braund is a co-founder and former chairman of the Board and Director of Peyto Exploration & Development Corp. from 1998 until his retirement from the Board in July Mr. Braund is a professional Landman and has been involved in the Canadian oil and gas business since 1977 in both private and publicly traded corporations. Mr. Braund was a co-founder and Director of both Gear Energy Corporation and Petrus Resources from 2010 until July Randy Best, P.Eng., PRESIDENT & COO Randy Best is a Professional Engineer with over 35 years of experience in the Canadian oil and gas industry. He was Senior Vice President, Corporate Development for Baytex Energy Ltd. from inception of the Trust in 2003 until January Mr. Best was responsible for acquisitions and divestitures, corporate planning and reserves. From 2000 to 2003 he was Managing Director of Waterous Securities, and previous to that he was President and Chief Executive Officer of Enercap Corporation, a private midstream company. Mr. Best is a practising member of The Association of Professional Engineers and Geoscientists of Alberta (APEGA).

14 EXECUTIVE BIOGRAPHIES Mark Munro, CPA, CA VP FINANCE & CFO Mark Munro is a Chartered Professional Accountant with over 10 years of experience in the Canadian oil and gas industry. Mr. Munro has held executive roles at public and private energy companies, most recently as a founder and Chief Financial Officer of Steppe Resources Inc. Mr. Munro has been a key contributor to strategic planning financial controls and reporting, and stakeholder relations throughout his career. Prior to his experience in industry, Mr. Munro held leadership roles working as an assurance manager at the Calgary office of a national accounting firm.

15 CORPORATE GOVERNANCE Statement of Corporate Governance The Board of Directors and the members of Reserve Royalty Income Trust s (RRIT) management are committed to maintaining the highest standards of corporate governance. Corporate Governance Mandates The Board has formally adopted a set of Corporate Governance Mandates which affirm RRIT s commitment to corporate governance. These Mandates provide guidance to both the Board and management in clarifying their respective roles and responsibilities. Human Resources, Compensation and Corporate Governance Mandate Audit Committee Mandate Reserves Committee Mandate

16 DIRECTOR BIOGRAPHIES Michael Culbert, Independent Director Michael Culbert served as President and CEO of Progress Energy until November 2016 when he was appointed Vice Chairman. Mr. Culbert continues to serve as a Director on the Boards of both Progress Energy and Pacific NorthWest LNG and also serves on the Board of Directors for Enerplus Corporation. Since 2001 Michael was instrumental in the PETRONAS acquisition and integration and subsequent development of Pacific NorthWest LNG integrated project. Michael led Pacific NorthWest LNG through the regulatory process with the project receiving its environmental certificates. Michael served as Vice President of Marketing and Business Development at Encal Energy Ltd. from 1995 to October From 1979 to 1995 Michael worked in various positions at Home Oil with increasing responsibility. Mr. Culbert holds a Bachelor of Science degree in Business Administration and has more than thirty years of diverse experience in the oil and gas industry. Michael was a member of the Canadian Association of Petroleum Producer s Board of Governors until November Harry Jung, P. Eng., Independent Director Harry Jung is a Professional Engineer with over 30 years experience in the oil and gas industry. Most recently he was President & CEO of GLJ Petroleum Consultants from 2005 until his retirement in Mr. Jung held the position of Chair of the Petroleum Society of Canadian Institute of Mining Metallurgy and Petroleum Standing Committee on Reserves Definitions, and was a member of the Society of Petroleum Evaluation Engineers Canadian Oil and Gas Evaluation Handbook (COGEH) Committee, the Alberta Securities Commission Oil and Gas Securities Task Force and the Society of Petroleum Engineers Reserves Definition Committee.

17 DIRECTOR BIOGRAPHIES Robert (Bob) Puchniak Independent Director Robert (Bob) Puchniak retired on April 30, 2015 as Executive Vice- President of James Richardson & Sons Limited. From March 2001 to March 2014 he was also Chief Financial Officer of James Richardson & Sons Limited. Prior thereto, Mr. Puchniak was President of Tundra Oil & Gas Limited for twenty-three years. Mr. Puchniak is Chairman and Director of both Tundra Oil & Gas Limited and Tundra Energy Marketing Limited. His is a member of the Board and Chair of the Investment Committee of the Winnipeg Foundation as well as being a member of the Board of Field Upgrading Limited. David W. Ross Independent Director David Ross is a lawyer and Partner at Burnet, Duckworth & Palmer LLP specializing in tax law including income funds and royalty trusts; cross border financings; partnerships & trusts; mergers and acquisitions; corporate reorganizations; estate plans; and structured finance. He received his Diploma in Law from the University of Oxford (New College) and completed his Bachelor of Laws and Bachelor of Arts (with Distinction) from the University of Alberta. He was called to Alberta Bar in David was named in Best Lawyers in Canada annually since 2006; named in Chambers Global Guide to the World s Leading Lawyers for Business, annually since 2004; named in Lexpert s Canadian Legal Directory as a leading lawyer in the field of Tax, annually since He is a member of Alberta Law Society, Canadian Bar Association, Canadian Tax Foundation, Canadian Petroleum Tax Society, and Society of Trust & Estate Practitioners.

18 DIRECTOR BIOGRAPHIES Ken Rowan, CFA Independent Director Ken Rowan is a former Managing Director, Institutional Sales at FirstEnergy Capital Corp., retiring in January 2012 after a 14 year career at FCC. He has over 30 years of capital markets experience and has advised institutional clients locally and around the world. Prior to a successful career with FirstEnergy he was one of the top ranking retail brokers with CIBC Wood Gundy. He is a graduate of the University of Toronto with a B.A. (Honours) Political Economy and is a Chartered Financial Analyst. Ken is a past president of the Calgary CFA Society and is well respected within the financial community in Calgary.

19 OTHER CORPORATE INFORMATION Auditors Bankers Engineering Consultants Legal Counsel Registrar and Transfer Agent KPMG ATB Financial Sproule Associates Ltd. Burnet, Duckworth & Palmer LLP Computershare

20 CONTACT US Rick F. (Buck) Braund CHAIRMAN & CEO Randy Best PRESIDENT & COO Reserve Royalty HEAD OFFICE Suite 1800, Street SW Calgary, Alberta T2P 3E6 Telephone: