TABLE OF CONTENTS. President s Message 1. Area Summaries 23. Executive Summary 2. Central Alberta Assets 25. Southeast Saskatchewan Assets 41

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1 ASSET BOOK

2 TABLE OF CONTENTS President s Message 1 Executive Summary 2 Corporate Overview 4 Strategy 5 Why Own Freehold? 6 Near Term Strategic Objectives 8 Canadian Land Overview 9 Royalties 11 1 The Royalty Advantage 12 Historical Financial Highlights 13 Historical Operating Highlights 14 Financial & Operating Summary 15 Reserves Summary 16 Asset Book 17 Area Summaries 23 Central Alberta Assets 25 Southeast Saskatchewan Assets 41 Western Saskatchewan Assets 47 Northwest Alberta Assets 57 Southern Alberta Excluding Shallow Gas 67 Shallow Gas 68 1 Year Review 69 Board of Directors 7 Executive Management 72 Governance 73 Glossary of Terms 75 Advisories and Assumptions 78 Corporate Information 83 Current & Future Upside Evaluation 18 Asset Valuation Summary 2 Long Life Option Value 22

3 PRESIDENT'S MESSAGE From left to right: Robert Lamond; Michael Stone; Thomas Mullane; David Spyker; Darren Gunderson Over the last 21 years, we have grown production, funds from operations and dividends while maintaining an effective yet conservative strategy. This Asset Book gives our shareholders and the investment community a detailed review of our royalty lands which have multiple years of development opportunities. Our strategy remains consistent: we create, enhance and deliver value. Freehold strives to provide shareholders with low risk, long-term income which is supported by our extensive asset base. Thomas J. Mullane President & Chief Executive Officer 217 ASSET BOOK PAGE 1

4 EXECUTIVE SUMMARY The Goal In creating the Asset Book, the goal was to provide Freehold investors a detailed document on the current value associated with our royalty portfolio as of December 31, 217. Through our comprehensive analysis, we have documented the future locations associated with our royalty lands. The Asset Book validates the multiple year value proposition Freehold s royalty assets provide investors. Our Strategy The Asset Book aligns with our strategy to create, enhance and deliver value to our shareholders. Findings in our Asset Book support our belief that Freehold s royalty assets provide significant value upside to our shareholders. Value Proposition The majority of our existing reserves are associated with oil focused, long life assets, generating significant free cash flow at current commodity prices. The Asset Book highlights drilling upside on Freehold s royalty lands with greater than 21, locations identified. Based on historical annual drilling levels, Freehold has approximately 45 years of future development upside. Large Untapped Resource Upside We have segmented our royalty portfolio into 5 regions and 23 plays. Identified approximately 152 mmboe of upside, over and above our Booked Reserves Volumes, associated with future development locations on our royalty lands. Our total royalty land holdings encompass approximately 5.7 million gross acres. 217 ASSET BOOK PAGE 2

5 The Undiscounted Total Value of our royalty portfolio is estimated at over $7 billion. Regions Total Future Royalty Locations (1) % Total Future Royalty Locations (1) Undiscounted Total Value ($mm) (1) Central Alberta 8,1 38 2,611 Southeast Saskatchewan 3, ,426 Western Saskatchewan 2, ,681 Northwest Alberta 1, Southern Alberta 2, Shallow Gas 3, Other 8 Total All Regions 21,124 $7,1 (1) Columns may not add due to rounding. 217 ASSET BOOK PAGE 3

6 CORPORATE OVERVIEW Freehold Royalties Ltd. (Freehold) is a dividend-paying corporation that trades on the Toronto Stock Exchange under the symbol FRU. Freehold is indirectly involved in the development and production of oil and natural gas in western Canada. We receive royalty revenue from our oil and natural gas properties as reserves are produced. Our primary focus is acquiring and managing oil and natural gas royalties, thereby providing a low risk income vehicle for our shareholders. From a $1 per share initial public offering in 1996, we have provided shareholders with a steady income stream returning almost $1.6 billion in dividends or $31.5 per share. A $1 initial investment in Freehold would be worth approximately $136 as of year end 217, implying approximately 13% average annual return over our history assuming all dividends were reinvested. $18 Return with dividends reinvested $16 $14 $12 $1 $8 $6 $4 $2 $ A $1 investment in Freehold at its Initial Public Offering would be valued at more than $136 today with dividends reinvested. IPO Freehold Royalties Ltd. TSX Composite Index TSX Oil & Gas Producers Index $136 $45 $ ASSET BOOK PAGE 4

7 STRATEGY As a leading royalty company, Freehold's objective is to deliver growth and low-risk attractive returns to shareholders over the long-term. Freehold accomplishes this by: CREATING VALUE Drive activity on our lands through lease outs Acquire royalties with acceptable risk profiles and long economic life ENHANCING VALUE Maximize royalty interests through comprehensive audit program Manage debt prudently DELIVERING VALUE Target a dividend with an adjusted payout ratio of 6-8% Deliver consistent returns to our shareholders 217 ASSET BOOK PAGE 5

8 WHY OWN FREEHOLD? Oil Price Leverage A change in West Texas Intermediate from US$5 to US$6/bbl increases our free cash flow by > 25%. Freehold s oil weighting provides strong torque to increasing oil prices. Monthly Free Cash Flow Per Share $.14 $.12 $.1 $.8 $.6 $.4 $.2 $. $4/bbl $5/bbl $6/bbl $7/bbl $8/bbl West Texas Intermediate (US$) Sustainability In 216, Freehold set an adjusted dividend payout target of 6%-8% of funds from operations to alleviate dividend volatility with changes to commodity prices. Based on our March 218 guidance, our adjusted dividend payout is estimated at 61%. 16% 14% 12% 1% 8% 6% 4% 2% % Adjusted Payout Ratio Aided by working interest dispositions and reduced debt levels, Freehold decreased Cash Costs to below $6/boe in 217, the lowest level in our history. Based on March 218 guidance, Cash Costs are forecast to be approximately $5/boe. In 217, Freehold generated an operating netback of $31/boe allowing us to allocate free cash to value enhancing acquisitions, dividends to our shareholders and debt reduction. 217 ASSET BOOK PAGE 6

9 Quality Assets, Multi-Year Upside Over our history, Freehold has built material land positions in various plays within Western Canada including Viking light oil, Saskatchewan light oil and Deep Basin liquids-rich natural gas. In 217, Freehold had near record drilling levels on its lands with 464 gross and 22.3 net locations drilled. Producers allocated approximately $75 million towards development activities on our lands which aided our production growth. Freehold has identified over 21, drilling locations on our lands that support multiple years of royalty growth. Strong Balance Sheet, Low Risk Business Freehold exited 217 with net debt of $69 million, implying net debt to trailing funds from operations of.6 times while retaining $9 million of available credit facility. A key advantage of royalties is that they provide exposure to top line revenue, without capital, operating and environmental costs. We employ a comprehensive compliance and audit program to ensure that the terms of our royalty agreements are followed. Over our history we have recovered $69 million from audit queries. 217 Royalty Wells Drilled 464 Gross (22.3 net) Bakken Cardium Montney Mannville Mannville Oil Mississippian Shaunavon Viking Other Viking Cardium Mississippian/ Bakken Shaunavon/ Mannville 217 ASSET BOOK PAGE 7

10 NEAR TERM STRATEGIC OBJECTIVES Enhanced Royalty Focus We remain committed to sharpening our royalty focus with the goal of improving the sustainability of our dividend. In 217, we disposed of approximately $32 million in working interest assets, bringing our royalty weighting to 89% of production and 96% of operating income, both all-time highs for Freehold. Based on March 218 guidance, royalties are expected to represent 93% of production and 99% of operating income. Improving the Growth Profile of Our Assets Through a combination of our leasing program and acquisition strategy, Freehold endeavors to provide production growth for our investors. In 217, Freehold issued 1 leases on our Mineral Title lands, compared to 3 in 216. We remain committed to growing organically through third party drilling. Freehold has been active on the acquisition front completing over $65 million in acquisitions over the past three years. Through successful transactions, Freehold has added opportunities in the Shaunavon, the Viking and the Cardium. We remain disciplined in our acquisition approach with a continued focus on maximizing value for our shareholders. Year Cost ($mm) Initial Royalty Production Acquired (boe/d) Asset Details 215 $411 2,1 8.5% GORR on 45, prospective acres in the Western Saskatchewan Viking Added 28, acres of Royalty and Mineral Title land in Western Canada 216 $163 1,7 Increased Freehold's Mineral Title lands by 47% to 1 million acres Increased overall royalty lands by approximately 7% 217 $87 42 Disposed of 8 boe/d of working interest assets Added to our positions in Western Saskatchewan Viking and Central Alberta Cardium Total $661 4, ASSET BOOK PAGE 8

11 CANADIAN LAND OVERVIEW In 167, the King of England granted approximately 1 billion acres of land (approximately 4% of Canada) to the Governor and Company of Adventurers of England Trading into Hudson s Bay, which would eventually form the Hudson s Bay Company of Canada (HBC). In 1871, an Order-in-Council initiated a uniform land survey of the three prairie provinces, as well as the railway belt of British Columbia. The land had to be accurately described and located before title to the land could be issued to HBC, the railway companies and school boards. Square townships were surveyed which span approximately 6 miles (9.7 kilometers) by 6 miles. Townships were designated by their respective number and range number in relation to the six principle meridians in western Canada. Every township is divided into 36 sections, each about 1 mile (1.6 kilometers) square. Sections are numbered within townships, beginning with the southeast sections. As part of a deal that transferred lands from HBC to the newly created Dominion of Canada, HBC retained 5% of the "fertile belt" (south of the north Saskatchewan and Winnipeg rivers). As a result, Section 8 and ¾'s of Section 26 of each Township were assigned to HBC. In 1974, HBC sold its Mineral Title interest in Western Canada to Siebens Oil & Gas Ltd. In 1979, Canpar Holdings Ltd. (owned by CN Pension Trust Funds) and Dome Petroleum jointly acquired the assets of Siebens Oil & Gas Ltd. In 1996, Canpar Holdings Ltd. and Rife Resources Ltd. (private companies owned by CN Pension Trust Funds) established Freehold Royalty Trust. Proceeds from Freehold s initial public offering were used to acquire all of Canpar s producing royalty interests. RANGE TOWNSHIP Section 8 1 MILE 6 MILES MILES Mineral Title ownership is one s legal possession of the right to win, work and recover specific minerals from under a parcel of land. There are typically two types of ownership, a surface owner and a mineral rights owner. Individual surface owners own the surface and shallow substances such as sand and gravel but not the minerals. Mineral owners have title to all mineral substances found on and under the property. The mineral owner has the right to explore for and recover the minerals including petroleum and natural gas. 217 ASSET BOOK PAGE 9

12 ROYALTIES 11 The term Royalties, as it relates to oil and gas, refers to ownership in the resource or revenue that is produced. An individual or company that owns a royalty interest typically does not bear any of the cost of producing the resource, yet still receives a portion of the resource or revenue. When an oil and gas company wants to drill it must negotiate access to mineral rights with the Mineral Title owner. When the Mineral Title owner leases those rights to a company it retains a percentage share of production called a Lessor Royalty. The Royalty is paid by the Lessee to the owner of the Mineral Title, the Lessor in the Lease. The Lessor Royalty is negotiated between the Lessor and Lessee and defines the Lessor s share of revenue from any production of leased substances. Types of Royalties Crown Royalties Approximately 9% of the Mineral Title land held in western Canada is held by the provincial Crown. As a revenue source, the Crown receives royalties associated with leases acquired by companies through a public land sale process. Mineral Title Royalties Approximately 1% of the Mineral Title lands in western Canada are held by private individuals or corporations. Mineral Title land is held in perpetuity and is not a contractual relationship, as is associated with other types of royalties. Royalty Assumption lands are Mineral Titles owned by third parties under which a defined title royalty in perpetuity is reserved to Freehold. Freehold maintains interests in approximately.1 million acres of Royalty Assumption lands. In total, Freehold maintains interests in approximately 1. million Mineral Title acres of which approximately.4 million acres are unleased. In 217, approximately 29% of production and 41% of operating income was derived from Mineral Titles. Freehold GORR Acreage Freehold Mineral Title Acreage 217 ASSET BOOK PAGE 1

13 Gross Overriding Royalty A Gross Overriding Royalty (GORR) is a contractual agreement between two parties which entitles the royalty holder to a share of the production from specific lands. Unlike Mineral Title land or Royalty Assumption land, GORR royalties are not held in perpetuity and expire upon the termination of the lease. The royalty percentage associated with a GORR is typically a lower rate, as Lessor Royalties are also due on these lands to the Mineral Title owner. GORRs are associated with an area of prospectivity that will likely see future development. It is our belief that GORR acreage can be as valuable as Mineral Title Land. Production Volume Royalties are contractual arrangements under which the producer of oil and gas production sells a percentage of its future production volumes in exchange for a cash payment and/or work commitments. Net Profit Interests are contractual agreements under which a predefined royalty percentage is paid out of a working interest owner s share of profits. A Net Profit Interest is a non-operating interest. Under a Net Profit Interest, the collector of royalties is exposed to operating costs, capital costs and asset retirement obligations. Freehold maintains interests in approximately 4.6 million acres of GORR lands, of which approximately 1.4 million acres are undeveloped. In 217, approximately 71% of production and 59% of operating income were derived from GORRs. Freehold manages one of the largest non-government portfolios of oil and natural gas royalties in Canada. Mineral Title Royalties % of Royalty Production Gross Overriding Royalties 29% 71% % of Royalty Operating Income % of Land 19% 59% 41% 81% 217 ASSET BOOK PAGE 11

14 THE ROYALTY ADVANTAGE Some of the key advantages and attributes of holding royalties include: Netback Advantage Royalties are generally a fixed percentage of an operator s revenue, which in turn is based on commodity prices. When commodity prices increase, so does the royalty netback. Reduced Capital Exposure Similar to working interest operators, the royalty holder assumes the benefit of their royalty share of production. However, the royalty holder typically has no obligation to contribute additional funds for any purpose (i.e. exploration/development drilling, royalties, operating costs and environmental/reclamation liabilities). By receiving revenues, the royalty holder is protected from cost overruns, cash cost inflation and counterparty issues associated with operating the lease. Working Interest Netback -Example- Royalty Interest Netback -Example- 1% 8% 6% Lessor Royalties Paid (15%) Operating Costs (25%) Royalty Netback (1% of royalty revenue) 4% 2% Working Interest Netback (6% of gross revenue) % With no cash expenses associated with production, royalty netbacks are higher than they are for working interest producers for a comparable BOE of equivalent production. Full Cycle Investment During times of weaker commodity prices royalty companies are able to grow through acquisitions as royalty opportunities are more available. Operators look to finance development through the sale of a royalty on their lands. During periods of improving commodity prices, royalty companies are able to grow through increased drilling and leasing on their lands. 217 ASSET BOOK PAGE 12

15 HISTORICAL FINANCIAL HIGHLIGHTS Royalty % of Operating Income 1 9 Freehold has seen a steady trending up in royalties as a percentage of operating income. This is primarily the result of reduced operating costs and increasing royalties as a percentage of production Royalty And Other Revenue ($mm) Freehold s royalty and other revenue is strongly correlated with crude oil and natural gas prices Funds from Operations per Share ($) Freehold s dividend remains positioned at 6%-8% of funds from operations, reinforcing its sustainability Cumulative Dividends per Share ($) Over its history, Freehold has returned $31.5/share or almost $1.6 billion in cumulative dividends to its shareholders Long Term Debt to Funds from Operations (times) Freehold remains committed to maintaining financial flexibility through its debt strategy. Over its history the company has positioned itself as a safe alternative for oil & gas investors ASSET BOOK PAGE 13

16 HISTORICAL OPERATING HIGHLIGHTS Royalty % of Production 1 9 In 217, royalties as a percentage of production totaled 89% of total corporate volumes. This marked a record high for Freehold over its history Production (boe/d) 14, 12, Freehold has grown its production by 38% over the past five years. 1, 8, 6, 4, 2, Total Proved Plus Probable Reserves (mmboe) Over the past five years, Freehold has grown its reserves by 53% Net Royalty Wells represented a near-record year in drilling for Freehold Royalty Acres (mm) 7 6 We have grown our royalty land position by 84% over the past five years ASSET BOOK PAGE 14

17 FINANCIAL & OPERATING SUMMARY Financial ($mm, or as noted) Year-ended December 31 Royalty and other revenue Net income (loss) (4.1) (11.2) 12.2 Per share (.5) (.1).1 Funds from operations Per share Acquisitions Net debt Dividends declared Per Share Revenue by Classification ($mm) Year-ended December 31 Royalty revenue by royalty type Mineral Title GORR Other Total royalty revenue Royalty revenue by product Crude oil NGL Natural gas Other Total royalty revenue Operational Year-ended December 31 Royalty interest production (boe/d) 6,195 6,85 8,31 9,936 1,963 Working interest production (boe/d) 2,718 2,375 2,635 2,283 1,387 % Royalty Total production (boe/d) 8,913 9,18 1,945 12,219 12,35 Light and medium oil (bbl/d) 3,24 2,986 3,956 4,293 4,58 Heavy oil (bbl/d) 2,262 2,249 2,22 2,16 1,695 NGL (bbl/d) ,39 Total oil and NGL (bbl/d) 5,721 5,772 6,757 7,113 6,792 Natural gas (mmcf/d) Oil equivalent (boe/d) 8,913 9,18 1,945 12,219 12,35 Total annual production (mboe) 3,253 3,35 3,995 4,472 4, ASSET BOOK PAGE 15

18 RESERVES SUMMARY (1)(2)(3) Net Reserves Proved Developed Producing Light & medium crude oil (mbbl) 3,415 3,837 5,64 5,41 5,291 Tight oil (mbbl) Heavy oil (mbbl) 4,167 3,994 3,981 3,242 2,522 Conventional natural gas (mmcf) 3,887 32,458 36,997 53,876 51,27 Coal bed methane (mmcf) 1,234 2,789 Shale gas (mmcf) 9 1,611 Natural gas liquids (mbbl) ,193 1,513 Total Oil Equivalent (mboe) 13,576 14,98 16,675 19,766 19,5 Total Proved Light & medium crude oil (mbbl) 3,56 4,14 7,635 7,21 6,756 Tight oil (mbbl) 1,84 1,17 Heavy oil (mbbl) 4,181 4,1 4,227 3,269 2,541 Conventional natural gas (mmcf) 35,243 6,369 58,33 71,82 66,96 Coal bed methane (mmcf) 2,195 2,789 Shale gas (mmcf) 1,356 2,883 Natural gas liquids (mbbl) 923 1,536 1,357 1,574 1,845 Total Oil Equivalent (mboe) 14,483 19,622 22,936 25,387 24,344 Total Proved Plus Probable Light & medium crude oil (mbbl) 5,828 7,12 12,346 1,95 1,251 Tight oil (mbbl) 1,66 1,626 Heavy oil (mbbl) 6,911 6,62 6,67 4,869 3,491 Conventional natural gas (mmcf) 53,627 82,894 89,599 15,12 96,36 Coal bed methane (mmcf) 3,413 3,377 Shale gas (mmcf) Before Income Tax (%) Before Income Tax (5%) 1,994 4,119 Natural gas liquids (mbbl) 1,436 2,175 2,15 2,398 2,712 Total Oil Equivalent (mboe) 23,113 29,713 36,54 38,28 35,336 Proved Developed Producing ($m) 756, , , , ,487 Total Proved ($m) 783,47 942,852 1,73,834 1,11,29 1,58,98 Total Proved Plus Probable ($m) 1,316,417 1,581,943 1,84,189 1,762,224 1,64,56 Proved Developed Producing ($m) 558,16 56, ,24 642, ,869 Total Proved ($m) 576, ,78 784, , ,81 Total Proved Plus Probable ($m) 856,847 1,48,112 1,174,349 1,176,145 1,114,224 (1) Under NI 51-11, gross reserves include only working interest assets before the deduction of royalties payable and do not include royalties receivable. Net reserves are comprised of working interests minus royalties payable plus royalties receivable. The majority of the Corporation s assets are royalty interests. This causes our gross reserves to be lower than our net reserves and may hinder an investor s ability to compare our reserves with others in our industry. (2) Columns may not add due to rounding. (3) In 215 and prior reserves coal bed methane and shale gas were included in conventional natural gas and tight oil was included in light and medium crude oil. 217 ASSET BOOK PAGE 16

19 ASSET BOOK In creating this Asset Book our goal is to provide an overview of our royalty portfolio, showcasing Freehold as an investment that offers a safe, conservative business model with multiple years of drilling inventory. We outlined five geographic areas (see figure below), and subdivided each into subgroups by formation of interest (ie: Central Alberta Cardium). Within each of these areas, Freehold s technical team looked at recent production and drilling activity taking place on our Royalty Lands. Each of the areas summarized in this Asset Book provide investors added detail on Freehold s GORR and Mineral Title Land position, including production, reserves, future drilling upside, and select financials. Northwest Alberta Western Saskatchewan Central Alberta Southeast Saskatchewan Freehold Royalty Lands Southern Alberta 217 ASSET BOOK PAGE 17

20 CURRENT & FUTURE UPSIDE EVALUATION In evaluating each area, the technical team used a methodical and consistent approach to assess upside potential on Freehold s existing assets. Freehold recognizes many uncertainties when forecasting the activities of other operators, including timing. The development of our Undiscounted Total Value methodology is outlined below. With the assistance of our independent reserve evaluators (Trimble) and using the price deck below, our published 2P Reserves were subdivided into each area and play. This is defined as Undiscounted Booked Reserves Value. Oil Natural Gas Trimble Report WTI Cushing Oklahoma Canadian Light Sweet Western Canadian Select AECO Price Forecast 4 API 2.5 API 3-Day Spot Year $US/bbl $Cdn/bbl $Cdn/bbl $Cdn/MMBtu Thereafter, per year: +2% +2% +2% +2% Within each of the geographic areas, the plays that are the main growth drivers for Freehold were identified (ie: the Shaunavon in Western Saskatchewan) and geological play outlines were created. Within each geological play outline, wells were selected that showed oil, gas or bitumen production within the last eight years. A buffer area was created around these recent producers, resulting in a production fairway for each play (see figure on page 19). Average producing well densities were then calculated within each production fairway. These fairways were used to evaluate the Freehold land position within each play. GORR and Mineral Title Lands falling within the production fairways were identified. Based on these production fairways and average well densities in the area, Freehold calculated a forecast of future upside locations associated with both our GORR and Mineral Title Lands to populate Future GORR Locations and Future Mineral Title Locations. These locations include our unbooked locations and Trimble Report booked locations. Average royalty rates for GORR and Mineral Title Lands were determined for each play area, and applied to the Future GORR Locations and Future Mineral Title Locations to estimate Freehold s net location interest. 217 ASSET BOOK PAGE 18

21 Royalty assets Within the production fairway Geological play outline Royalty assets Outside the production fairway Production fairway Recent producing wells Non-producing wells Production type curves for each production fairway were also created based on the average type curve from historic wells drilled. These type curves, combined with our constant commodity assumptions for Future Upside Value (noted to the right) were used to determine the Undiscounted Net Present Value of a well in each production fairway. This Undiscounted Net Present Value and the above forecast of future upside locations and estimate of net interest, formed the basis to determine the value for Undiscounted Future Upside Value. The Undiscounted Future Upside Value is in addition to any Undiscounted Booked Reserves Value for undeveloped reserves accounted for by the reserve evaluator. Commodity Assumptions for Future Upside Value Flat West Texas Intermediate (US$/bbl) 6. Western Canadian Select ($/bbl) 5. Edmonton Light Sweet ($/bbl) 7. AECO natural gas ($/mcf) 2.5 Exchange Rate (US$/CD$).8 Undiscounted Booked Reserves Value + Undiscounted Future Upside Value = Undiscounted Total Value 217 ASSET BOOK PAGE 19

22 ASSET VALUATION SUMMARY (1) The table below provides a summary of Freehold s Asset Book by geographic region and play. In total, we have estimated total royalty locations associated with Freehold s GORR and Mineral Title Land base at approximately 13,5 and 7,5 locations, respectively. Based on historical drilling levels this implies over 45 years of future drilling potential. Undiscounted Future Upside Value is added to our Undiscounted Booked Reserves Value for each of these respective areas, to generate Freehold s Undiscounted Total Value of approximately $7 billion, of which 77% is unbooked. Region/Play Booked Reserves Volume (mboe) Undiscounted Booked Reserves Value ($mm) Future Mineral Title Locations Future GORR Locations Total Future Royalty Locations Future Upside Volume (mboe) Undiscounted Future Upside Value ($mm) Future Upside Volume Plus Booked Reserves Volume (mboe) Undiscounted Total Value ($mm) Central Alberta Cardium Oil & Gas 3, , , Devonian Oil & Gas , , Duvernay Oil & Gas Mannville Gas 6, ,4 1,833 2, , Mannville Oil 1, ,38 2,288 3,327 32,696 1,22 34,643 1,141 Mississippian Oil & Gas , , Viking Oil , ,93 15 Other , , Total 13, ,158 5,844 8,1 69,788 2,37 83,453 2,611 Southeast Saskatchewan Bakken Oil , , Mississippian Oil 2, , ,129 12, ,137 1,2 Other , , Total 3, , ,316 17,2 1,123 21,88 1,426 Western Saskatchewan Bakken Oil , , Mannville Heavy Oil , , Shaunavon Oil , , Viking Oil 3, , , Other , , Total 5, ,22 1,655 2,678 22,845 1,288 28,59 1,681 Northwest Alberta Cardium Gas Mannville Gas 1, , , , , Montney Oil & Gas 1, , Spirit River Gas 1, , ,51 1 Other 1, , , Total 5, ,361 1,44 19, ,9 536 Southern Alberta Excluding Shallow Gas 1, ,942 2,316 12, ,7 477 Total 1, ,942 2,316 12, ,7 477 Shallow Gas Shallow Gas 1, ,563 3,41 1, , Total 1, ,563 3,41 1, , Other Ontario Total Total All Areas 32,8 $1,555 7,554 13,569 21, ,97 $5, ,5 $7,1 (1) Columns may not add due to rounding. 217 ASSET BOOK PAGE 2

23 ASSET VALUATION SUMMARY Future GORR Locations Shallow Gas Mannville Oil C AB S AB excluding Shallow Gas Mannville Gas C AB Viking Oil W SK Viking Oil C AB Cardium Oil & Gas C AB Mannville Heavy Oil W SK Mannville Gas NW AB Cardium Gas NW AB Devonian Oil & Gas C AB Spirit River Gas NW AB Shaunavon Oil W SK Mississippian Oil SE SK Mississippian Oil & Gas C AB Bakken Oil W SK Montney Oil & Gas NW AB Bakken Oil SE SK Duvernay Oil & Gas C AB 5 1, 1,5 2, 2,5 3, Future Mineral Title Locations Mississippian Oil SE SK Mannville Oil C AB Shallow Gas Bakken Oil SE SK Mannville Gas C AB Mannville Heavy Oil W SK S AB excluding Shallow Gas Viking Oil C AB Viking Oil W SK Shaunavon Oil W SK Devonian Oil & Gas C AB Cardium Oil & Gas C AB Bakken Oil W SK Mississippian Oil & Gas C AB Duvernay Oil & Gas C AB Mannville Gas NW AB Montney Oil & Gas NW AB Spirit River Gas NW AB Cardium Gas NW AB 5 1, 1,5 2, 2,5 Undiscounted Booked Reserves Value ($mm) Undiscounted Total Value ($mm) Viking Oil W SK Cardium Oil & Gas C AB Mississippian Oil SE SK Mannville Gas C AB Mannville Oil C AB S AB excluding Shallow Gas Bakken Oil SE SK Mannville Heavy Oil W SK Montney Oil & Gas NW AB Spirit River Gas NW AB Shallow Gas Mannville Gas NW AB Shaunavon Oil W SK Mississippian Oil & Gas C AB Devonian Oil & Gas C AB Bakken Oil W SK Cardium Gas NW AB Viking Oil C AB Duvernay Oil & Gas C AB Mannville Oil C AB Mississippian Oil SE SK Mannville Gas C AB S AB excluding Shallow Gas Mannville Heavy Oil W SK Viking Oil W SK Cardium Oil & Gas C AB Shallow Gas Devonian Oil & Gas C AB Bakken Oil SE SK Shaunavon Oil W SK Bakken Oil W SK Viking Oil C AB Mannville Gas NW AB Spirit River Gas NW AB Mississippian Oil & Gas C AB Montney Oil & Gas NW AB Cardium Gas NW AB Duvernay Oil & Gas C AB Undiscounted booked reserve value ($mm) Undiscounted future upside ($mm) , 1,2 217 ASSET BOOK PAGE 21

24 LONG LIFE OPTION VALUE Given the long life of royalty assets, one of the key advantages of ownership is the future option value the owner maintains many years down the road. The estimate for our Undiscounted Total Value is conservative as it does not include: Expansion of secondary and tertiary recovery methods (thermal recovery, polymer flooding and waterflooding are examples). McLaren Mannville Group Improvements in drilling and completion technology Colony Pense Waseca Sparky General Petroleum Rex Cantuar Lloydminster Cummings Dina Multi-Zone Optionality Future potential is further enhanced by the stacked nature of oil and gas reservoirs. A royalty holder could hold an interest in a single zone, all uphole zones from the producing zones, or the entire stratigraphic column. As producing plays often overlap between different zones, having multi-zone ownership is another advantage of owning royalties. Throughout the Asset Book, certain plays include a single reservoir while others have multiple producing and potential zones. The Mannville Group, illustrated above, is a good example of a play that has potential in multiple layered sequences. Improved Technology Historically, development was initially focused on vertical wells in the Western Canadian Sedimentary Basin, targeting oil and gas reservoirs with the highest permeability. As exploration and development methods improved, producers began focusing efforts on horizontal technology, testing areas that were uneconomic using previous development methods. In May 215, Freehold acquired an 8.5% royalty on 45, net acres of land prospective in the western Saskatchewan Viking. The Viking was one of the most active areas in Western Canada over the last three years, as a result of low cost drilling and robust economics. Historically, the play was developed with vertical wells. The exhibit below highlights the evolution of development of the increasing Viking play with producers utilizing horizontal lateral length, to improve economics and recoveries. The Viking highlights another key benefit of holding royalty land in that improvements in technology can further enhance value. Dodsland Viking Development Pre ASSET BOOK 21 to 214 Post 214 PAGE 22

25 AREA SUMMARIES The Area Summaries provide an extensive review of our royalty assets, including select financials, reserves and production. Our team reviewed and ranked each of our plays by booked reserve value, future upside locations and current production. We have put together 19 Area Summaries that reflect our top plays. Also included are four additional Other Area Summaries that highlight additional producing zones within each broader area (ie: Central Alberta - Other). This Asset Book will be updated as our royalty portfolio evolves through acquisitions, technological advancements or new play development. Northwest Alberta Central Alberta Southern Alberta Western Saskatchewan Southeast Saskatchewan Shallow Gas Other Future Mineral Title Locations 42 Future GORR Locations 3, ,361 2,563 2, , ,655 5,844 1,22 1,942 Undiscounted Future Upside Value ($mm) Undiscounted Total Value ($mm) ,123 1,426 2,37 2,611 1,288 1, ASSET BOOK PAGE 23

26 217 ASSET BOOK PAGE 24

27 CENTRAL ALBERTA CARDIUM OIL & GAS DEVONIAN OIL & GAS DUVERNAY OIL & GAS MANNVILLE GAS MANNVILLE OIL MISSISSIPPIAN OIL & GAS VIKING OIL Central Alberta remains a key focus area with a large portion of Freehold s upside locations. We see upside through our extensive land holdings, further improvements in drilling technology and the strength of our operators. 217 ASSET BOOK PAGE 25

28 CARDIUM OIL & GAS CENTRAL ALBERTA The Cardium Formation contains one of the largest accumulations of conventional crude oil in western Canada with Original Oil in Place estimated at over 1 billion barrels. The Cardium has a long history of development as far back as the 196 s with most of the early activities focused on vertical drilling, recently shifting to horizontal development. Production is primarily light oil offering high royalty netbacks. Key Payors: ARC Resources Ltd. Bonterra Energy Corp. Orlen Upstream Canada Inc. Petrus Resources Ltd. Ridgeback Resources Inc. Freehold land Geological play outline HIGHLIGHTS Added significant land position through a royalty acquisition completed in late 217 Light oil production generates strong economics In 217 royalty netbacks > $35/boe We estimate future upside at 676 royalty locations and $275 million Total Region Production and Drilling monthly mboe 8, 7, 6, 5, 4, 3, 2, 1, , 7, 6, 5, 4, 3, 2, 1, well count Producing Monthly OIL Producing Monthly GAS Producing Well Count 217 ASSET BOOK PAGE 26

29 Net Revenue and Production 217 Net Production by Product 12, 9 1, 8 7 8, 6 $m 6, 4, boe/d Natural Gas (boe/d) Oil (bbl/d) Natural Gas Liquids (bbl/d) 217 Net Production by Royalty Type 2, Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells % Horizontal 1% 1% 9% Land Summary 217 GORR Acres 1,754,234 Mineral Title Acres 178,382 Total Acres 1,932,616 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) 1,456 2,156 2,154 Total (boe/d) % GORR 65% 73% 64% % Mineral Title 35% 27% 36% 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 2,354 Natural Gas (mmcf) 6,91 Total (mboe) 3,54 Undiscounted Booked Value ($mm) 216 Net Revenue by Product Oil ($m) 6,916 6,868 7,27 Natural Gas Liquids ($m) 686 1,92 1,675 Natural Gas ($m) 1,284 1,48 1,474 Total ($m) 8,885 9,439 1,357 % GORR 66% 72% 69% % Mineral Title 34% 28% 31% Netback per boe $37.47 $31.47 $35.49 Total Upside Potential 217 Future Mineral Title Locations 12 Future GORR Locations 556 Future Upside (mboe) 1,417 Undiscounted Future Upside ($mm) 59 Total Volume (mboe) 4,921 Undiscounted Total Value ($mm) ASSET BOOK PAGE 27

30 DEVONIAN OIL & GAS CENTRAL ALBERTA With some of the first discoveries of hydrocarbons in Alberta, the Devonian has yielded a number of prolific oil and gas pools. Historically, development has focused on both vertical and then horizontal drilling with the goal to increase incremental recovery within the mature Devonian reservoirs. Light oil is generally the target. The Devonian in our evaluation includes prospective zones: Wabamun, Nisku, Ireton/Grosmont, Leduc, Beaverhill Lake, Gilwood, Muskeg, Keg River, Granite Wash and Horn River. Key Payors: Canadian Natural Resources Limited Husky Energy Inc. Shell Canada Limited TAQA North Ltd. Freehold land Geological play outline HIGHLIGHTS Royalty land base weighted towards GORRs Oil production volumes in the Devonian have remained relatively flat We estimate future upside at 349 royalty locations and $156 million Total Region Production and Drilling monthly mboe 8, 7, 6, 5, 4, 3, 2, 1, ,5 4, 3,5 3, 2,5 2, 1,5 1, 5 well count Producing Monthly OIL Producing Monthly GAS Producing Well Count 217 ASSET BOOK PAGE 28

31 Net Revenue and Production 217 Net Production by Product 2, , ,5 12 Natural Gas (boe/d) Oil (bbl/d) $m 1 boe/d Natural Gas Liquids (bbl/d) 1, Net Production by Royalty Type Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells..1. % Horizontal 1% 1% N/A Land Summary 217 GORR Acres 545,929 Mineral Title Acres 57,916 Total Acres 63,845 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) Total (boe/d) % GORR 59% 63% 69% % Mineral Title 41% 37% 31% 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 176 Natural Gas (mmcf) 3,6 Total (mboe) 677 Undiscounted Booked Value ($mm) 24 Net Revenue by Product Oil ($m) 1,363 1,26 1,379 Natural Gas Liquids ($m) Natural Gas ($m) Total ($m) 1,872 1,787 1,992 % GORR 52% 55% 59% % Mineral Title 48% 45% 41% Netback per boe $34.54 $28.31 $29.7 Total Upside Potential 217 Future Mineral Title Locations 133 Future GORR Locations 216 Future Upside (mboe) 5,266 Undiscounted Future Upside ($mm) 133 Total Volume (mboe) 5,943 Undiscounted Total Value ($mm) ASSET BOOK PAGE 29

32 DUVERNAY OIL & GAS CENTRAL ALBERTA The Duvernay is a Devonian aged Formation spanning from the edges of west central to central Alberta. It is estimated to contain over 44 tcf of natural gas and 6 billion barrels of Original Oil in Place. Active development started in 21 with drilling focused in the greater Kaybob area, recently shifting to oil focused targets in the East Shale Basin. Freehold land Geological play outline HIGHLIGHTS Subsequent to 217 year end, Freehold acquired a 1% royalty interest on 113,92 acres in the light oil prospective East Shale Basin, and as such, acreage and future GORR locations listed do not include this acquisition Development is funded by an active producer We estimate future upside at 3 royalty locations and $14 million Total Region Production and Drilling 5 2 monthly mboe well count Producing Monthly OIL Producing Monthly GAS Producing Well Count 217 ASSET BOOK PAGE 3

33 Intentionally left blank having no historical production or royalty revenue. This area has future prospectivity. Drilling Summary Gross Wells. 2.. Net Royalty Wells... % Horizontal N/A 1% N/A Land Summary 217 GORR Acres 442,24 Mineral Title Acres 52,364 Total Acres 494,389 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) Total (boe/d) % GORR N/A N/A N/A % Mineral Title N/A N/A N/A 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) Natural Gas (mmcf) Total (mboe) Undiscounted Booked Value ($mm) Net Revenue by Product Oil ($m) Natural Gas Liquids ($m) Natural Gas ($m) Total ($m) % GORR N/A N/A N/A % Mineral Title N/A N/A N/A Netback per boe $. $. $. Total Upside Potential 217 Future Mineral Title Locations 24 Future GORR Locations 6 Future Upside (mboe) 388 Undiscounted Future Upside ($mm) 14 Total Volume (mboe) 389 Undiscounted Total Value ($mm) ASSET BOOK PAGE 31

34 MANNVILLE GAS CENTRAL ALBERTA The Mannville Group spans multiple zones through most of central Alberta. Historically gas development was focused on vertical wells. As development shifted to horizontal drilling, economics improved. The Mannville gas is generally rich in associated liquids. The Mannville in our evaluation includes prospective zones: Colony, McLaren, Waseca, Sparky, Rex, Lloyd, Cummings/ Wabiskaw, Dina/McMurray, Bluesky, Gething, Cadomin, Glauconite, Ostracod, Ellerslie, Clearwater, Falher, Notikewin. Key Payors: Canadian Natural Resources Limited Cenovus Energy Inc. Paramount Resources Ltd. Perpetual Energy Inc. Freehold land Geological play outline HIGHLIGHTS Freehold maintains a large land position in the area Low decline production base 217 royalty production increased by 16% We estimate future upside at 1,833 royalty locations and $662 million Total Region Production and Drilling monthly mboe 8, 7, 6, 5, 4, 3, 2, 1, , 7, 6, 5, 4, 3, 2, 1, well count Producing Monthly OIL Producing Monthly GAS Producing Well Count 217 ASSET BOOK PAGE 32

35 Net Revenue and Production 217 Net Production by Product 4,5 8 $m 4, 3,5 3, 2,5 2, 1,5 1, boe/d Natural Gas (boe/d) Oil (bbl/d) Natural Gas Liquids (bbl/d) 217 Net Production by Royalty Type Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells.3..1 % Horizontal 1% N/A 1% Land Summary 217 GORR Acres 1,721,382 Mineral Title Acres 145,653 Total Acres 1,867,35 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) 1,99 3,19 3,436 Total (boe/d) % GORR 64% 69% 78% % Mineral Title 36% 31% 22% 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 774 Natural Gas (mmcf) 32,779 Total (mboe) 6,237 Undiscounted Booked Value ($mm) 166 Net Revenue by Product Oil ($m) Natural Gas Liquids ($m) ,574 Natural Gas ($m) 1,767 2,15 2,319 Total ($m) 2,351 3,147 3,931 % GORR 63% 7% 76% % Mineral Title 37% 3% 24% Netback per boe $17.7 $14.75 $15.83 Total Upside Potential 217 Future Mineral Title Locations 433 Future GORR Locations 1,4 Future Upside (mboe) 2,872 Undiscounted Future Upside ($mm) 496 Total Volume (mboe) 27,11 Undiscounted Total Value ($mm) ASSET BOOK PAGE 33

36 MANNVILLE OIL CENTRAL ALBERTA The Mannville Group spans multiple zones through most of Central Alberta. The Mannville is prospective for heavy oil through the shallower eastern part of central Alberta. The near-term development focus has been on horizontal drilling applications and new advancements in thermal recovery, polymer flooding and water floods. As technologies improve, it is expected incremental recovery additions will represent the primary driver behind value enhancement. The Mannville in of our evaluation includes prospective zones: Colony, McLaren, Waseca, Sparky, General Petroleum, Rex, Lloydminster, Cummings/Wabiskaw, Dina/McMurray, Bluesky, Gething, Cadomin, Glauconitic, Ostracod, Ellerslie and Detrital. Key Payors: Canadian Natural Resources Limited Cardinal Energy Ltd. Harvest Operations Corp. Perpetual Energy Operating Corp. Surge Energy Inc. Freehold land Geological play outline HIGHLIGHTS Active operators have kept activity levels strong We estimate future upside at 3,326 royalty locations and $1.1 billion Total Region Production and Drilling monthly mboe 12, 1, 8, 6, 4, 2, , 14, 12, 1, 8, 6, 4, 2, well count Producing Monthly OIL Producing Monthly GAS Producing Well Count 217 ASSET BOOK PAGE 34

37 Net Revenue and Production 217 Net Production by Product 2, 2, 17,5 15, 1,5 $m 12,5 1, 1, boe/d Natural Gas (boe/d) Natural Gas Liquids (bbl/d) Oil (bbl/d) 7,5 217 Net Production by Royalty Type 5, 5 2, Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells % Horizontal 26% 58% 8% Land Summary 217 GORR Acres 1,721,382 Mineral Title Acres 145,653 Total Acres 1,867,35 Net Production Summary Oil (bbl/d) 1,33 1,322 1,64 Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) Total (boe/d) 1,41 1,433 1,182 % GORR 57% 48% 58% % Mineral Title 43% 52% 42% 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 1,768 Natural Gas (mmcf) 1,81 Total (mboe) 1,948 Undiscounted Booked Value ($mm) 119 Net Revenue by Product Oil ($m) 18,397 15,628 17,412 Natural Gas Liquids ($m) Natural Gas ($m) Total ($m) 19,29 16,199 18,64 % GORR 58% 49% 58% % Mineral Title 42% 51% 42% Netback per boe $37.2 $3.97 $41.88 Total Upside Potential 217 Future Mineral Title Locations 1,38 Future GORR Locations 2,288 Future Upside (mboe) 32,696 Undiscounted Future Upside ($mm) 1,22 Total Volume (mboe) 34,643 Undiscounted Total Value ($mm) 1, ASSET BOOK PAGE 35

38 MISSISSIPPIAN OIL & GAS CENTRAL ALBERTA Oil prospectivity associated with the Mississippian in central Alberta is primarily focused on the southwestern portion of the play. The Mississippian has a long history of development spanning as far back as the 197 s. Horizontal development has unlocked resource bypassed by vertical development. The Mississippian in our evaluation includes prospective zones: Mount Head, Elkton/Turner Valley, Shunda, Pekisko and Banff. Key Payors: NAL Resources Management Limited Paramount Resources Ltd. Pengrowth Energy Corp. Shell Canada Limited Freehold land Geological play outline HIGHLIGHTS Production volumes have displayed modest growth over the past three years We estimate future upside at 147 royalty locations and $94 million Total Region Production and Drilling 2, 1, monthly mboe 1,5 1, well count Producing Monthly OIL Producing Monthly GAS Producing Well Count 217 ASSET BOOK PAGE 36

39 Net Revenue and Production 217 Net Production by Product 1,4 16 1,2 14 1, 12 $m boe/d Natural Gas (boe/d) Oil (bbl/d) Natural Gas Liquids (bbl/d) 217 Net Production by Royalty Type Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells... Net Royalty Wells... % Horizontal N/A N/A N/A Land Summary 217 GORR Acres 53,122 Mineral Title Acres 57,83 Total Acres 587,924 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) Total (boe/d) % GORR 28% 33% 39% % Mineral Title 72% 67% 61% 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 238 Natural Gas (mmcf) 2,318 Total (mboe) 624 Undiscounted Booked Value ($mm) 24 Net Revenue by Product Oil ($m) Natural Gas Liquids ($m) Natural Gas ($m) Total ($m) 1,62 1,5 1,174 % GORR 22% 27% 29% % Mineral Title 78% 73% 71% Netback per boe $25.76 $21.6 $23.46 Total Upside Potential 217 Future Mineral Title Locations 89 Future GORR Locations 58 Future Upside (mboe) 3,533 Undiscounted Future Upside ($mm) 71 Total Volume (mboe) 4,157 Undiscounted Total Value ($mm) ASSET BOOK PAGE 37

40 VIKING OIL CENTRAL ALBERTA The Cretaceous Viking Formation is one of the earliest and most prolific oil and gas plays in Alberta. The first discovery was made in the 194 s. In recent years, horizontal drilling has revitalized the play. Key Payors: Long Run Exploration Ltd. Paramount Resources Ltd. Pengrowth Energy Corp. Tamarack Valley Energy Ltd. Freehold land Geological play outline HIGHLIGHTS Acquired majority of acreage through a 216 royalty acquisition 37 gross wells drilled in 217 versus 15 gross wells in 216 Viking Oil has seen an increase in activity and improved economics associated with the implementation of horizontal drilling We estimate future upside at 893 royalty locations and $15 million Total Region Production and Drilling monthly mboe 1,4 1,2 1, Producing Monthly OIL Producing Monthly GAS Producing Well Count 2,5 2, 1,5 1, 5 well count 217 ASSET BOOK PAGE 38

41 Net Revenue and Production 217 Net Production by Product 1,8 12 1,6 1,4 1 1,2 8 $m 1, boe/d Natural Gas (boe/d) Oil (bbl/d) Natural Gas Liquids (bbl/d) 217 Net Production by Royalty Type Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells % Horizontal 1% 93% 1% Land Summary 217 GORR Acres 1,67,68 Mineral Title Acres 158,346 Total Acres 1,766,26 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) Total (boe/d) % GORR 26% 38% 61% % Mineral Title 74% 62% 39% 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 16 Natural Gas (mmcf) 114 Total (mboe) 125 Undiscounted Booked Value ($mm) 8 Net Revenue by Product Oil ($m) 1, ,497 Natural Gas Liquids ($m) Natural Gas ($m) Total ($m) 1,343 1,17 1,75 % GORR 27% 4% 63% % Mineral Title 73% 6% 37% Netback per boe $42.82 $35.51 $43.38 Total Upside Potential 217 Future Mineral Title Locations 243 Future GORR Locations 65 Future Upside (mboe) 1,778 Undiscounted Future Upside ($mm) 97 Total Volume (mboe) 1,93 Undiscounted Total Value ($mm) ASSET BOOK PAGE 39

42 CENTRAL ALBERTA OTHER PROSPECTIVE ZONES INCLUDE: JURASSIC, SPIRIT RIVER, VIKING GAS AND UPPER CRETACEOUS PLAYS. FREEHOLD ACQUIRED THE MAJORITY OF ITS ROYALTY INTERESTS THROUGH A MANUFACTURED ROYALTY AT EAST EDSON IN 215. Net Revenue and Production 217 Net Production by Product 8, 1,6 7, 6, 1,2 5, $m 4, 8 boe/d Natural Gas (boe/d) Natural Gas Liquids (bbl/d) Oil (bbl/d) 3, 2, Net Production by Royalty Type 1, Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells % Horizontal 33% % % Land Summary 217 GORR Acres 1,643,936 Mineral Title Acres 174,848 Total Acres 1,818,783 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) 6,499 6,64 6,662 Total (boe/d) 1,232 1,246 1,271 % GORR 95% 95% 95% % Mineral Title 5% 5% 5% 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 139 Natural Gas (mmcf) 2,465 Total (mboe) 55 Undiscounted Booked Value ($mm) 16 Net Revenue by Product Oil ($m) Natural Gas Liquids ($m) 1,394 1,22 1,896 Natural Gas ($m) 5,322 3,833 4,77 Total ($m) 7,488 5,68 6,696 % GORR 91% 91% 91% % Mineral Title 9% 9% 9% Netback per boe $16.66 $12.49 $14.43 Total Upside Potential 217 Future Mineral Title Locations 77 Future GORR Locations 669 Future Potential (mboe) 3,837 Undiscounted Future Upside ($mm) 145 Total Volume (mboe) 4,387 Undiscounted Total Value ($mm) ASSET BOOK PAGE 4

43 SOUTHEAST SASKATCHEWAN BAKKEN OIL MISSISSIPPIAN OIL Southeast Saskatchewan includes Manitoba and represents Freehold s main Mineral Title royalty area. Freehold established a position in the area through a 21 acquisition and has added to it through subsequent acquisitions. Each of the plays offers strong netbacks resilient to downturns in commodity prices. The majority of Freehold s 217 leasing activity occurred in Southeast Saskatchewan. 217 ASSET BOOK PAGE 41

44 BAKKEN OIL SOUTHEAST SASKATCHEWAN The Bakken Formation is found in the Williston Basin, predominant in North Dakota, Montana and Saskatchewan. Early production targeted the Upper and Middle Bakken dolomitic sandstones. Current development is focused on bypassed pay sourced from the Middle Bakken. The Bakken Formation, much like most unconventional reservoirs, is vertically and laterally heterogeneous. Key Payors: Crescent Point Energy Corp. Tundra Oil & Gas Ltd. Freehold land Geological play outline HIGHLIGHTS Mineral Title acres added through acquisitions completed from 214 to 216 In 217 royalty netbacks > $54/boe We estimate future upside at 469 royalty locations and $152 million Total Region Production and Drilling monthly mboe 3,5 3, 2,5 2, 1,5 1, Producing Monthly OIL Producing Monthly GAS Producing Well Count 5, 4, 3, 2, 1, well count 217 ASSET BOOK PAGE 42

45 Net Revenue and Production 217 Net Production by Product 8, 4 7, 6, 3 5, Natural Gas (boe/d) Oil (bbl/d) $m 4, 2 boe/d Natural Gas Liquids (bbl/d) 3, 217 Net Production by Royalty Type 2, 1 1, Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells % Horizontal 1% 94% 1% Land Summary 217 GORR Acres 39,261 Mineral Title Acres 226,92 Total Acres 265,353 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) Total (boe/d) % GORR 11% 13% 15% % Mineral Title 89% 87% 85% 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 895 Natural Gas (mmcf) 349 Total (mboe) 953 Undiscounted Booked Value ($mm) 77 Net Revenue by Product Oil ($m) 6,325 5,663 6,416 Natural Gas Liquids ($m) Natural Gas ($m) Total ($m) 6,531 5,89 6,915 % GORR 11% 13% 14% % Mineral Title 89% 87% 86% Netback per boe $5.77 $45.89 $54.71 Total Upside Potential 217 Future Mineral Title Locations 451 Future GORR Locations 18 Future Upside (mboe) 1,37 Undiscounted Future Upside ($mm) 75 Total Volume (mboe) 2,26 Undiscounted Total Value ($mm) ASSET BOOK PAGE 43

46 MISSISSIPPIAN OIL SOUTHEAST SASKATCHEWAN The southeast Saskatchewan Williston Basin spans several Mississippian and Devonian oil bearing zones including the Bakken, Frobisher, Alilda, Midale and Torquay. Conventional Mississippian remains attractive for horizontal targets given their relatively low cost and strong economics. The Mississippian in our evaluation includes prospective zones: Ratcliffe, Midale, Frobisher, Kisbey, Alida, Tilston, Lodgepole/Souris Valley. Key Payors: Crescent Point Energy Corp. Spartan Energy Corp. TORC Oil & Gas Ltd. Tundra Oil & Gas Ltd. Freehold land Geological play outline HIGHLIGHTS Low drilling costs have kept activity levels strong In 217 royalty netbacks > $52/boe We estimate future upside at 2,129 royalty locations and $1 billion Total Region Production and Drilling monthly mboe 6, 5, 4, 3, 2, 1, Producing Monthly OIL Producing Monthly GAS Producing Well Count 12, 1, 8, 6, 4, 2, well count 217 ASSET BOOK PAGE 44

47 Net Revenue and Production 217 Net Production by Product 25, 1,2 2, 1, 8 15, Natural Gas (boe/d) Oil (bbl/d) $m 6 boe/d Natural Gas Liquids (bbl/d) 1, Net Production by Royalty Type 5, Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells % Horizontal 85% 91% 94% Land Summary 217 GORR Acres 143,169 Mineral Title Acres 238,637 Total Acres 381,86 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) Total (boe/d) 971 1,24 1,38 % GORR 25% 29% 3% % Mineral Title 75% 71% 7% 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 2,552 Natural Gas (mmcf) 93 Total (mboe) 2,72 Undiscounted Booked Value ($mm) 29 Net Revenue by Product Oil ($m) 16,13 15,438 19,92 Natural Gas Liquids ($m) Natural Gas ($m) Total ($m) 16,657 16,19 19,893 % GORR 25% 29% 3% % Mineral Title 75% 71% 7% Netback per boe $46.99 $43.12 $52.51 Total Upside Potential 217 Future Mineral Title Locations 1,996 Future GORR Locations 133 Future Potential (mboe) 12,435 Undiscounted Future Upside ($mm) 811 Total Volume (mboe) 15,137 Undiscounted Total Value ($mm) 1,2 217 ASSET BOOK PAGE 45

48 SOUTHEAST SASKATCHEWAN OTHER PROSPECTIVE ZONES INCLUDE: DEVONIAN (IE: WINNIPEGOSIS, TORQUAY) AND TRIASSIC (IE: AMARANTH) PLAYS. Net Revenue and Production 217 Net Production by Product 1,6 9 $m 1,4 1,2 1, boe/d Natural Gas (boe/d) Oil (bbl/d) Natural Gas Liquids (bbl/d) 217 Net Production by Royalty Type Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells % Horizontal 1% % 1% Land Summary 217 GORR Acres 92,755 Mineral Title Acres 22,54 Total Acres 312,89 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) Total (boe/d) % GORR 15% 18% 19% % Mineral Title 85% 82% 81% 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 229 Natural Gas (mmcf) 25 Total (mboe) 233 Undiscounted Booked Value ($mm) 18 Net Revenue by Product Oil ($m) 1,487 1,11 1,228 Natural Gas Liquids ($m) Natural Gas ($m) Total ($m) 1,499 1,124 1,245 % GORR 13% 17% 18% % Mineral Title 87% 83% 82% Netback per boe $49.79 $44.38 $54.35 Total Upside Potential 217 Future Mineral Title Locations 664 Future GORR Locations 54 Future Potential (mboe) 3,459 Undiscounted Future Upside ($mm) 237 Total Volume (mboe) 3,692 Undiscounted Total Value ($mm) ASSET BOOK PAGE 46

49 WESTERN SASKATCHEWAN BAKKEN OIL MANNVILLE HEAVY OIL SHAUNAVON OIL VIKING OIL Through recent acquisitions, Freehold has built its royalty position in Western Saskatchewan. The area offers strong economics which reflected in higher activity levels over the past three years. We see future upside associated with the Viking Dodsland area and activity in the Shaunavon. 217 ASSET BOOK PAGE 47

50 BAKKEN OIL WESTERN SASKATCHEWAN The Bakken Formation is a Mississippian oil bearing zone with prospectivity in western Saskatchewan. Development occurred as early as the 195 s with drilling for light to medium grade targets. Recent development has centered on optimization efforts surrounding existing waterfloods and the extension of pool boundaries. Key Payors: Cona Resources Ltd. Longhorn Oil & Gas Ltd. Teine Energy Ltd. Freehold land Geological play outline HIGHLIGHTS Land position totals approximately 85, acres In 217 royalty netbacks > $42/boe We estimate future upside at 136 royalty locations and $114 million Total Region Production and Drilling monthly mboe 3,5 3, 2,5 2, 1,5 1, Producing Monthly OIL Producing Monthly GAS Producing Well Count 5, 4, 3, 2, 1, well count 217 ASSET BOOK PAGE 48

51 Net Revenue and Production 217 Net Production by Product 1,4 9 1, , 6 $m boe/d Natural Gas (boe/d) Oil (bbl/d) Natural Gas Liquids (bbl/d) 217 Net Production by Royalty Type Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells % Horizontal N/A % % Land Summary 217 GORR Acres 34,367 Mineral Title Acres 5,281 Total Acres 84,648 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) Total (boe/d) % GORR 2% 19% 2% % Mineral Title 8% 81% 8% 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 237 Natural Gas (mmcf) 54 Total (mboe) 246 Undiscounted Booked Value ($mm) 16 Net Revenue by Product Oil ($m) ,287 Natural Gas Liquids ($m) Natural Gas ($m) Total ($m) 1, ,311 % GORR 21% 19% 2% % Mineral Title 79% 81% 8% Netback per boe $39.29 $32.56 $42.95 Total Upside Potential 217 Future Mineral Land Locations 94 Future GORR Locations 42 Future Upside (mboe) 1,617 Undiscounted Future Upside ($mm) 98 Total Volume (mboe) 1,863 Undiscounted Total Value ($mm) ASSET BOOK PAGE 49

52 MANNVILLE HEAVY OIL WESTERN SASKATCHEWAN The Mannville Group produces heavy oil in the Lloydminster area of western Saskatchewan. Development in recent years has undergone improvements with recovery technologies (ie: water, steam, polymer floods and horizontal drilling). The Mannville in our evaluation includes prospective zones: Colony, McLaren, Waseca, Sparky, General Petroleum, Rex, Lloydminster, Cummings and Dina. Key Payors: Canadian Natural Resources Limited Husky Energy Inc. Prairie Thunder Resources Ltd. Whitecap Resources Inc. Freehold land Geological play outline HIGHLIGHTS 2 gross locations drilled in 217, up from 13 locations in 216 We estimate future upside at 945 royalty locations and $414 million Total Region Production and Drilling monthly mboe 7, 6, 5, 4, 3, 2, 1, Producing Monthly OIL Producing Monthly GAS Producing Well Count 7, 6, 5, 4, 3, 2, 1, well count 217 ASSET BOOK PAGE 5

53 Net Revenue and Production 217 Net Production by Product 8, 6 7, 5 6, 5, 4 $m 4, 3 boe/d Natural Gas (boe/d) Natural Gas Liquids (bbl/d) Oil (bbl/d) 3, 2, 1, Net Production by Royalty Type Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells % Horizontal % 54% 5% Land Summary 217 GORR Acres 216,988 Mineral Title Acres 161,177 Total Acres 378,165 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) Total (boe/d) % GORR 38% 44% 46% % Mineral Title 62% 56% 54% 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 89 Natural Gas (mmcf) 81 Total (mboe) 94 Undiscounted Booked Value ($mm) 6 Net Revenue by Product Oil ($m) 6,873 4,537 6,572 Natural Gas Liquids ($m) 1 Natural Gas ($m) Total ($m) 6,943 4,577 6,617 % GORR 38% 44% 45% % Mineral Title 62% 56% 55% Netback per boe $38.7 $33. $44.76 Total Upside Potential 217 Future Mineral Title Locations 418 Future GORR Locations 527 Future Upside (mboe) 7,314 Undiscounted Future Upside ($mm) 354 Total Volume (mboe) 8,218 Undiscounted Total Value ($mm) ASSET BOOK PAGE 51

54 SHAUNAVON OIL WESTERN SASKATCHEWAN The Shaunavon Formation of Southwestern Saskatchewan has a well established production base from the Upper Shaunavon. Development and prospectivity within the play became more attractive recently through the application of horizontal drilling and new completion techniques. Freehold added to its Shaunavon royalty position in 216 with the area generating strong activity under current commodity prices. Key Payors: Coastal Resources Limited Crescent Point Energy Corp. Whitecap Resources Inc. Freehold land Geological play outline HIGHLIGHTS Acquired the majority of Mineral Title acreage through a 216 acquisition Increased drilling associated with strong economics Increased royalty production by 53% in 217 We estimate future upside at 324 royalty locations and $137 million Total Region Production and Drilling monthly mboe 1,2 1, ,8 1,6 1,4 1,2 1, well count Producing Monthly OIL Producing Monthly GAS Producing Well Count 217 ASSET BOOK PAGE 52

55 Net Revenue and Production 217 Net Production by Product 3,5 18 $m 3, 2,5 2, 1,5 1, boe/d Natural Gas (boe/d) Oil (bbl/d) Natural Gas Liquids (bbl/d) 217 Net Production by Royalty Type Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells..3.7 % Horizontal % 1% 1% Land Summary 217 GORR Acres 118,667 Mineral Title Acres 135,853 Total Acres 254,52 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) 5 13 Total (boe/d) % GORR 73% 7% 71% % Mineral Title 27% 3% 29% 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 424 Natural Gas (mmcf) 24 Total (mboe) 428 Undiscounted Booked Value ($mm) 3 Net Revenue by Product Oil ($m) 465 1,658 2,925 Natural Gas Liquids ($m) 2 3 Natural Gas ($m) 5 1 Total ($m) 465 1,664 2,938 % GORR 72% 64% 72% % Mineral Title 28% 36% 28% Netback per boe $44.25 $42.72 $49.22 Total Upside Potential 217 Future Mineral Title Locations 172 Future GORR Locations 152 Future Upside (mboe) 1,597 Undiscounted Future Upside ($mm) 17 Total Volume (mboe) 2,25 Undiscounted Total Value ($mm) ASSET BOOK PAGE 53

56 VIKING OIL WESTERN SASKATCHEWAN The Lower Cretaceous Viking Formation of Western Saskatchewan was deposited as part of an offshore deltaic to prograding shoreface. Viking oil has been produced from the region since the 195 s. Original Oil in Place is estimated at 6 billion barrels with less than 5% recovered to date. Advancements in horizontal multi-stage completion techniques have contributed to the revitalization and growth in this area. Key Payors: Raging River Exploration Inc. Teine Energy Ltd. Whitecap Resources Inc. Freehold land Geological play outline HIGHLIGHTS Development saw an increase in activity in 217 In 217 royalty production increased by 12% We estimate future upside at 899 royalty locations and $332 million Total Region Production and Drilling monthly mboe 3, 2,5 2, 1,5 1, Producing Monthly OIL Producing Monthly GAS Producing Well Count 1, 8, 6, 4, 2, well count 217 ASSET BOOK PAGE 54

57 Net Revenue and Production 217 Net Production by Product 25, 1 9 2, , 6 Natural Gas (boe/d) Oil (bbl/d) $m 5 boe/d Natural Gas Liquids (bbl/d) 1, 5, Net Production by Royalty Type Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells % Horizontal 98% 1% 1% Land Summary 217 GORR Acres 227,848 Mineral Title Acres 142,467 Total Acres 37,315 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) Total (boe/d) % GORR 63% 81% 74% % Mineral Title 37% 19% 26% 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 3,25 Natural Gas (mmcf) 1,745 Total (mboe) 3,496 Undiscounted Booked Value ($mm) 276 Net Revenue by Product Oil ($m) 1,443 13,444 18,7 Natural Gas Liquids ($m) Natural Gas ($m) Total ($m) 1,681 13,757 19,63 % GORR 84% 8% 74% % Mineral Title 16% 2% 26% Netback per boe $51.8 $45.77 $56.45 Total Upside Potential 217 Future Mineral Title Locations 181 Future GORR Locations 718 Future Upside (mboe) 1,54 Undiscounted Future Upside ($mm) 55 Total Volume (mboe) 5,36 Undiscounted Total Value ($mm) ASSET BOOK PAGE 55

58 WESTERN SASKATCHEWAN OTHER PROSPECTIVE ZONES INCLUDE: DEVONIAN, NON-SHAUNAVON JURASSIC AND VIKING GAS PLAYS. Net Revenue and Production 217 Net Production by Product 1,2 8 1, $m 6 4 boe/d Natural Gas (boe/d) Natural Gas Liquids (bbl/d) Oil (bbl/d) Net Production by Royalty Type Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells...5 % Horizontal % N/A 81% Land Summary 217 GORR Acres 227,848 Mineral Title Acres 161,177 Total Acres 389,25 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) Total (boe/d) % GORR 79% 82% 84% % Mineral Title 21% 18% 16% 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 124 Natural Gas (mmcf) 1 Total (mboe) 141 Undiscounted Booked Value ($mm) 9 Net Revenue by Product Oil ($m) Natural Gas Liquids ($m) Natural Gas ($m) Total ($m) ,21 % GORR 9% 82% 87% % Mineral Title 1% 18% 13% Netback per boe $3.95 $35.6 $4.98 Total Upside Potential 217 Future Mineral Title Locations 157 Future GORR Locations 217 Future Potential (mboe) 1,776 Undiscounted Future Upside ($mm) 674 Total Volume (mboe) 1,917 Undiscounted Total Value ($mm) ASSET BOOK PAGE 56

59 NORTHWEST ALBERTA CARDIUM GAS MANNVILLE GAS MONTNEY OIL & GAS SPIRIT RIVER GAS Freehold s Northwest Alberta royalty portfolio has upside associated with greater than 8 gross royalty locations. This area includes our Royalty Lands in British Columbia. 217 ASSET BOOK PAGE 57

60 CARDIUM GAS NORTHWEST ALBERTA Cardium natural gas is primarily located in the southeastern part of northwest Alberta. Early development was focused on delineation of multi-zone commingled wells and more recently on horizontal multi-stage fractured wells with targeted zones. Given the current commodity environment for natural gas, gains in efficiencies and cost control remain the key drivers behind future development. Key Payors: Canadian Natural Resources Limited Paramount Resources Ltd. Peyto Exploration & Development Corp. Tourmaline Oil Corp. Freehold land Geological play outline HIGHLIGHTS Production and acreage are weighted to GORRs Production volumes grew by 42% in 217 We estimate future upside at 242 royalty locations and $47 million Total Region Production and Drilling monthly mboe 3, 2,5 2, 1,5 1, Producing Monthly OIL Producing Monthly GAS Producing Well Count 2,5 2, 1,5 1, 5 well count 217 ASSET BOOK PAGE 58

61 Net Revenue and Production 217 Net Production by Product Natural Gas (boe/d) Oil (bbl/d) $m 4 8 boe/d Natural Gas Liquids (bbl/d) Net Production by Royalty Type Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells... Net Royalty Wells... % Horizontal N/A N/A N/A Land Summary 217 GORR Acres 393,48 Mineral Title Acres 3,346 Total Acres 396,394 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) Total (boe/d) % GORR 99% 1% 1% % Mineral Title 1% % % 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 51 Natural Gas (mmcf) 1,686 Total (mboe) 332 Undiscounted Booked Value ($mm) 8 Net Revenue by Product Oil ($m) Natural Gas Liquids ($m) Natural Gas ($m) Total ($m) % GORR 99% 1% 1% % Mineral Title 1% % % Netback per boe $18.67 $14.34 $14.27 Total Upside Potential 217 Future Mineral Title Locations Future GORR Locations 242 Future Upside (mboe) 2,48 Undiscounted Future Upside ($mm) 39 Total Volume (mboe) 2,812 Undiscounted Total Value ($mm) ASSET BOOK PAGE 59

62 MANNVILLE GAS NORTHWEST ALBERTA The Mannville Group includes multiple zones through northwest Alberta with future development of greater than 3 potential drilling locations. The Mannville Gas in our evaluation includes prospective zones: Bluesky, Gething and Cadomin. Key Payors: Bonavista Energy Corporation Canadian Natural Resources Limited Paramount Resources Ltd. Tourmaline Oil Corp. Freehold land HIGHLIGHTS In 217 production increased by 47% through acquisitions Geological play outline Prospects continue to be focused on horizontal drilling We estimate future upside at 334 royalty locations and $11 million Total Region Production and Drilling monthly mboe 14, 12, 1, 8, 6, 4, 2, , 1, 8, 6, 4, 2, well count Producing Monthly OIL Producing Monthly GAS Producing Well Count 217 ASSET BOOK PAGE 6

63 Net Revenue and Production 217 Net Production by Product 3,5 6 3, 5 $m 2,5 2, 1,5 1, boe/d Natural Gas (boe/d) Oil (bbl/d) Natural Gas Liquids (bbl/d) 217 Net Production by Royalty Type Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells % Horizontal 1% 67% 1% Land Summary 217 GORR Acres 393,511 Mineral Title Acres 2,549 Total Acres 396,59 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) 571 2,121 3,93 Total (boe/d) % GORR 98% 99% 1% % Mineral Title 2% 1% % 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 141 Natural Gas (mmcf) 7,641 Total (mboe) 1,415 Undiscounted Booked Value ($mm) 35 Net Revenue by Product Oil ($m) 1 1 Natural Gas Liquids ($m) Natural Gas ($m) 469 1,519 2,89 Total ($m) 618 1,959 2,876 % GORR 98% 99% 1% % Mineral Title 2% 1% % Netback per boe $15.16 $13.83 $13.86 Total Upside Potential 217 Future Mineral Title Locations 6 Future GORR Locations 327 Future Upside (mboe) 4,318 Undiscounted Future Upside ($mm) 66 Total Volume (mboe) 5,733 Undiscounted Total Value($mm) ASSET BOOK PAGE 61

64 MONTNEY OIL & GAS NORTHWEST ALBERTA The Montney in the northwest edge of Alberta to northeast British Columbia is regarded as a premier hydrocarbon resource. Since the early 2 s horizontal drilling has dominated activity. Key Payors: Delphi Energy Corp. Encana Corp. Hammerhead Resources Inc. SanLing Energy Ltd. Freehold land Geological play outline HIGHLIGHTS Acquired the majority of Montney royalty acreage through an acquisition in 216 Well capitalized producers and strong economics has resulted in increased drilling activity The Montney play generates strong liquid yields and economics We estimate future upside at 32 royalty locations and $58 million Total Region Production and Drilling monthly mboe 4, 35, 3, 25, 2, 15, 1, 5, Producing Monthly OIL Producing Monthly GAS Producing Well Count 7, 6, 5, 4, 3, 2, 1, well count 217 ASSET BOOK PAGE 62

65 Net Revenue and Production 217 Net Production by Product 6, 7 5, 6 4, 3, $m 2, boe/d Natural Gas (boe/d) Oil (bbl/d) Natural Gas Liquids (bbl/d) 217 Net Production by Royalty Type 1, Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells % Horizontal 1% 1% 1% Land Summary 217 GORR Acres 133,87 Mineral Title Acres 63 Total Acres 134,5 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) 1,297 1,71 2,29 Total (boe/d) % GORR 1% 1% 1% % Mineral Title % % % 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 473 Natural Gas (mmcf) 4,168 Total (mboe) 1,168 Undiscounted Booked Value ($mm) 45 Net Revenue by Product Oil ($m) 1,496 1,437 2,165 Natural Gas Liquids ($m) 485 1,118 2,12 Natural Gas ($m) ,346 Total ($m) 2,75 3,452 5,631 % GORR 1% 1% 1% % Mineral Title % % % Netback per boe $21.16 $2.83 $25.7 Total Upside Potential 217 Future Mineral Title Locations 4 Future GORR Locations 28 Future Upside (mboe) 796 Undiscounted Future Upside ($mm) Total Volume (mboe) 1,964 Undiscounted Total Value ($mm) ASSET BOOK PAGE 63

66 SPIRIT RIVER GAS NORTHWEST ALBERTA The Spirit River play has evolved into one of the top producing areas in the Western Canadian Sedimentary Basin since development began in 21. There is variability in well performance between the three main zones, which can be attributed to both geological heterogeneity and variations in completion design. There has been improvement in overall costs and efficiencies, leading to sustained development. The Spirit River Gas in our evaluation includes prospective zones: Notikewin, Falher and Wilrich. Key Payors: Canadian Natural Resources Limited Peyto Exploration & Development Corp. Repsol Canada Energy Partnership Tourmaline Oil Corp. Freehold land Geological play outline HIGHLIGHTS Development driven by well capitalized producers In 217 royalty production increased by 54% We estimate future upside at 28 royalty locations and $1 million Total Region Production and Drilling monthly mboe 14, 12, 1, 8, 6, 4, 2, , 3,5 3, 2,5 2, 1,5 1, 5 well count Producing Monthly OIL Producing Monthly GAS Producing Well Count 217 ASSET BOOK PAGE 64

67 Net Revenue and Production 217 Net Production by Product 1,6 3 1,4 25 1,2 1, 2 Natural Gas (boe/d) Oil (bbl/d) $m 8 15 boe/d Natural Gas Liquids (bbl/d) Net Production by Royalty Type Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells.2..1 % Horizontal 1% % 1% Land Summary 217 GORR Acres 356,891 Mineral Title Acres 2,549 Total Acres 359,439 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) ,37 Total (boe/d) % GORR 99% 1% 1% % Mineral Title 1% % % 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 172 Natural Gas (mmcf) 8,19 Total (mboe) 1,537 Undiscounted Booked Value ($mm) 37 Net Revenue by Product Oil ($m) Natural Gas Liquids ($m) Natural Gas ($m) Total ($m) ,42 % GORR 99% 1% 1% % Mineral Title 1% % % Netback per boe $15.81 $13.71 $13.67 Total Upside Potential 217 Future Mineral Title Locations 2 Future GORR Locations 27 Future Upside (mboe) 4,974 Undiscounted Future Upside($mm) 63 Total Volume (mboe) 6,51 Undiscounted Total Value ($mm) ASSET BOOK PAGE 65

68 NORTHWEST ALBERTA OTHER PROSPECTIVE ZONES INCLUDE: DEVONIAN, MISSISSIPPIAN, NORDEGG, PERMIAN, NON-MONTNEY TRIASSIC, PEACE RIVER/VIKING AND DOE CREEK PLAYS. Net Revenue and Production 217 Net Production by Product 3,5 45 3, ,5 3 $mm 2, 1, boe/d Natural Gas (boe/d) Natural Gas Liquids (bbl/d) Oil (bbl/d) 1, Net Production by Royalty Type Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells.6.1. % Horizontal 88% 1% N/A Land Summary 217 GORR Acres 373,596 Mineral Title Acres 3,346 Total Acres 376,942 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) 1,73 1,414 1,684 Total (boe/d) % GORR 93% 95% 98% % Mineral Title 7% 5% 2% 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 284 Natural Gas (mmcf) 4,985 Total (mboe) 1,115 Undiscounted Booked Value ($mm) 35 Net Revenue by Product Oil ($m) 2,16 1,55 1,419 Natural Gas Liquids ($m) Natural Gas ($m) ,21 Total ($m) 3,13 2,747 3,149 % GORR 91% 94% 97% % Mineral Title 9% 6% 33% Netback per boe $27.88 $21.13 $21.53 Total Upside Potential 217 Future Mineral Title Locations 31 Future GORR Locations 557 Future Potential (mboe) 6,957 Undiscounted Future Upside ($mm) 196 Total Volume (mboe) 8,71 Undiscounted Total Value ($mm) ASSET BOOK PAGE 66

69 SOUTHERN ALBERTA EXCLUDING SHALLOW GAS Net Revenue and Production PROSPECTIVE ZONES INCLUDE: DEVONIAN, BIG VALLEY/EXSHAW, MISSISSIPPIAN, JURASSIC, LOWER AND UPPER MANNVILLE, VIKING AND CARDIUM PLAYS. 217 Net Production by Product 6, 5, , 35 3 Natural Gas (boe/d) Oil (bbl/d) $m 3, 25 boe/d Natural Gas Liquids (bbl/d) 2, 1, Net Production by Royalty Type Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells Net Royalty Wells % Horizontal 8% 67% 1% Land Summary 217 GORR Acres 671,832 Mineral Title Acres 83,75 Total Acres 754,97 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) 1,147 1,198 1,24 Total (boe/d) % GORR 76% 76% 75% % Mineral Title 24% 24% 25% 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 845 Natural Gas (mmcf) 5,339 Total (mboe) 1,734 Undiscounted Booked Value ($mm) 8 Net Revenue by Product Oil ($m) 2,27 2,789 3,884 Natural Gas Liquids ($m) Natural Gas ($m) Total ($m) 3,413 3,744 4,988 % GORR 74% 72% 71% % Mineral Title 26% 28% 29% Netback per boe $26.86 $25.54 $31.77 Total Upside Potential 217 Future Mineral Title Locations 374 Future GORR Locations 1,942 Future Potential (mboe) 12,273 Undiscounted Future Upside ($mm) 397 Total Volume (mboe) 14,7 Undiscounted Total Value ($mm) ASSET BOOK PAGE 67

70 SHALLOW GAS INCLUDES SHALLOW GAS ASSETS IN ALL REGIONS Net Revenue and Production 217 Net Production by Product 3, 8 2,5 6 2, $m 1, boe/d Natural Gas (boe/d) Oil (bbl/d) Natural Gas Liquids (bbl/d) 217 Net Production by Royalty Type Natural Gas ($m) Natural Gas Liquids ($m) Oil ($m) Total (boe/d) GORR Mineral Title Royalties Drilling Summary Gross Wells 3... Net Royalty Wells.4.. % Horizontal % N/A N/A Land Summary 217 GORR Acres 3,775,259 Mineral Title Acres 529,28 Total Acres 4,34,287 Net Production Summary Oil (bbl/d) Natural Gas Liquids (bbl/d) Natural Gas (mcf/d) 2,978 3,31 3,531 Total (boe/d) % GORR 57% 64% 67% % Mineral Title 43% 36% 33% 2P Reserves Summary 217 Oil & Natural Gas Liquids (mbbl) 42 Natural Gas (mmcf) 1,626 Total (mboe) 1,813 Undiscounted Booked Value ($mm) 37 Net Revenue by Product Oil ($m) Natural Gas Liquids ($m) Natural Gas ($m) 2,478 1,975 2,174 Total ($m) 2,565 2,9 2,322 % GORR 56% 64% 67% % Mineral Title 44% 36% 33% Netback per boe $13.92 $1.11 $1.56 Total Upside Potential 217 Future Mineral Title Locations 848 Future GORR Locations 2,563 Future Potential (mboe) 1,342 Undiscounted Future Upside ($mm) 225 Total Volume (mboe) 12,155 Undiscounted Total Value ($mm) ASSET BOOK PAGE 68

71 1 YEAR REVIEW (UNAUDITED) Financial ($mm, or as noted) Royalty and other revenue Net income (loss) (1) (4.1) (11.2) 12.2 Per share (2) (.5) (.1).1 Funds from operations Per share (2) Dividends declared Per share (2)(3) Acquisitions Capital expenditures Long-term debt Operating Production (boe/d) 7,84 7,32 7,615 7,476 8,85 8,913 9,18 1,945 12,219 12,35 Royalty interest (%) Oil and NGL (%) Land (gross acres, mm) Net reserves (mmboe) (4) Reserve life index (years) Share Data High ($) Low ($) Close ($) Volume (mm) Outstanding Shares (mm) At period end Weighted average (1) Freehold s IFRS transition date was January 1, 21 and reflects adjustments due to IFRS. Comparative information for has not been restated. (2) Prior to conversion to a corporation on December 31, 21, Freehold had trust units outstanding instead of shares. (3) Based on the number of shares issues and outstanding at each record date. (4) Net proved plus probable reserves. 217 ASSET BOOK PAGE 69

72 BOARD OF DIRECTORS Marvin F. Romanow - Chair of the Board Mr. Romanow is a Corporate Director, Executive in Residence at the University of Saskatchewan, and former oil and gas industry executive with over 3 years of experience. He has a proven track record in the areas of operating, financial and strategic leadership. His executive roles provided direct engagement with shareholders and directors at two major public corporations over the past 2 years. Mr. Romanow is a graduate of Harvard's Program of Management Development and in October 27 he completed INSEAD's Advance Management Programme. He has an MBA and a Bachelor of Engineering, with Great Distinction, from the University of Saskatchewan. Mr. Romanow holds the ICD.D designation from the Institute of Corporate Directors. He currently serves on the boards of SaskPower, Alberta Teacher's Retirement Fund and the Arnie Charbonneau Cancer Institute. Gary R. Bugeaud Mr. Bugeaud is a Corporate Director and was Managing Partner of Burnet, Duckworth & Palmer LLP until his retirement in December 213. He has over 23 years of legal experience focused on securities, corporate finance, mergers and acquisitions and corporate governance matters. Mr. Bugeaud has a Bachelor of Commerce (Finance) degree and a Bachelor of Laws degree from the University of Saskatchewan. Mr. Bugeaud holds the ICD.D designation from the Institute of Corporate Directors. He currently serves on the board of Raging River Exploration Inc. Peter T. Harrison Mr. Harrison is Manager, Oil and Gas Investments of the CN Investment Division (Montreal), which manages one of the largest corporate pension funds in Canada. Mr. Harrison has spent over 3 years analyzing business models and investing in public companies. Having managed multi-billion dollar equity portfolios and voted proxies for many years, he brings a deep understanding of investor concerns to the Board. He has been a director of several public and private companies. He has a Bachelor of Commerce (Finance) degree from McGill University, an MBA from the University of Western Ontario, and is a Chartered Financial Analyst. He is currently a director of Delphi Energy Corporation. J. Douglas Kay Mr. Kay is a Corporate Director and an experienced oil and gas industry executive with strong land, finance, negotiating and leadership skills. He has over 4 years of diverse responsibilities with Canadian based oil and gas exploration and production companies. Mr. Kay holds a Bachelor of Economics degree from the University of Calgary, is a graduate of the Management Development Program of the University of Western Ontario, and holds the designation of P. Land through the Canadian Association of Petroleum Landmen (CAPL). Mr. Kay holds the ICD.D designation from the Institute of Corporate Directors. He currently serves on the board of Westbrick Energy Ltd. as Chairman and is a former director and Chairman of the Explorers and Producers Association of Canada (EPAC). 217 ASSET BOOK PAGE 7

73 Arthur N. Korpach Mr. Korpach is a Corporate Director. He has four years of public company audit and 27 years of investment banking experience, with a focus on the energy sector. His experience includes providing advice on strategy, business plans, capital structure, credit strategy, financing, and mergers and acquisitions. He has advised clients on over 3 transactions. Mr. Korpach is a Fellow Chartered Accountant and a Chartered Business Valuator. He has a Bachelor of Commerce degree from the University of Saskatchewan and an MBA from Harvard Business School. Mr. Korpach holds the ICD.D designation from the Institute of Corporate Directors. Mr. Korpach serves on the board of the Heart & Stroke Foundation of Alberta. Susan M. MacKenzie Ms. MacKenzie is a Corporate Director, independent consultant and former oil and gas industry executive with over 25 years of energy sector experience in operations and service support areas. She has a proven track record in the areas of governance, strategy development, organizational alignment, operational execution and project management, and she has demonstrated success in corporation-wide policy development and implementation. Ms. MacKenzie holds a Bachelor of Engineering (Mechanical) degree from McGill University and an MBA from the University of Calgary. She is a Life member of the Association of Professional Engineers and Geoscientists of Alberta (APEGA) and holds the ICD.D designation from the Institute of Corporate Directors. She is a director of Enerplus Corporation, Fortis Alberta, Precision Drilling Corporation and TransGlobe Energy Corporation. Thomas J. Mullane Mr. Mullane is the President and Chief Executive Officer of the Corporation. He joined Rife in July 212 and was appointed President and Chief Executive Officer in May 213. He has over 25 years of industry experience and a broad background in exploitation and production engineering gathered from both domestic and international assignments. His roles have included responsibility and oversight of acquisitions, divestitures, exploitation and reservoir engineering management, with significant experience in horizontal drilling. Mr. Mullane holds a Bachelor of Science (Chemical Engineering) degree from the University of Alberta and is a member of the Association of Professional Engineers and Geoscientists of Alberta (APEGA). Aidan M. Walsh Mr. Walsh is Chief Executive Officer of Baccalieu Energy Inc. (Calgary), a private junior oil and gas company that he co-founded in 28. Mr. Walsh has over 4 years of oil and gas experience in production, marketing, transportation, acquisitions, finance, facility engineering and construction. He is a proven negotiator and a strategic thinker with strong leadership and analytical skills. He has experience interacting with industry partners as well as regulators and federal and provincial government representatives on issues affecting the Canadian oil and gas industry. Mr. Walsh has a Bachelor of Engineering (Mechanical) degree from Memorial University of Newfoundland and an MBA from the University of Calgary. He is a member of the Association of Professional Engineers and Geoscientists of Alberta (APEGA). Mr. Walsh holds the ICD.D designation from the Institute of Corporate Directors. He is currently a director of Baccalieu Energy Inc., Bonterra Energy Corp., and is a former director and Chairman of the Explorers and Producers Association of Canada (EPAC). 217 ASSET BOOK PAGE 71

74 EXECUTIVE MANAGEMENT Thomas J. Mullane Mr. Mullane is the President and Chief Executive Officer of the Corporation. He joined Rife in July 212 and was appointed President and Chief Executive Officer in May 213. He has over 25 years of industry experience and a broad background in exploitation and production engineering gathered from both domestic and international assignments. His roles have included responsibility and oversight of acquisitions, divestitures, exploitation and reservoir engineering management, with significant experience in horizontal drilling. Mr. Mullane holds a Bachelor of Science (Chemical Engineering) degree from the University of Alberta and is a member of the Association of Professional Engineers and Geoscientists of Alberta (APEGA). Darren G. Gunderson Mr. Gunderson is Vice-President, Finance and Chief Financial Officer of the Corporation. He joined Rife in 1991 and was appointed Vice-President, Finance and Chief Financial Officer in August 28. Mr. Gunderson holds a Bachelor of Commerce (Accounting) degree from the University of Saskatchewan and is a Chartered Public Accountant (CPA, CGA). Robert E. Lamond Mr. Lamond is Vice-President, Exploration of the Corporation. He joined Rife in September 217. He previously held various geoscience and managerial roles at Murphy Oil Corporation, Shell Canada Ltd. and Imperial Oil Ltd. Most recently he held the role of General Manager, Geoscience at Murphy Oil Corporation. Mr. Lamond holds a Bachelor of Science (Geology) degree from Queen's University and is a member of the Association of Professional Engineers and Geoscientists of Alberta (APEGA). David M. Spyker Mr. Spyker is Vice-President, Production of the Corporation. He joined Rife in November 216. Prior to, Mr. Spyker held various roles at Anderson Exploration Ltd., Anderson Energy Ltd. and Anderson Energy Inc. Most recently he held the role of Chief Operating Officer at Anderson Energy Inc. Mr. Spyker holds a Bachelor of Science (Mechanical Engineering) degree from the University of Alberta and is a member of the Association of Professional Engineers and Geoscientists of Alberta (APEGA). Michael J. Stone Mr. Stone is Vice-President, Land of the Corporation and has held such position since March 21. Mr. Stone holds a Bachelor of Commerce (Management) degree from the University of Calgary and is a member of the Canadian Association of Petroleum Landmen (CAPL). 217 ASSET BOOK PAGE 72

75 GOVERNANCE The Manager Freehold does not have any employees. Under the Management Agreement, the Manager is responsible for managing Freehold s assets. Pursuant to an agreement between Rife and the Manager, Rife provides the Manager, which is a wholly-owned subsidiary of Rife, on a contract basis, with all necessary personnel, equipment and facilities required to provide management and operational services to Freehold. Rife is a private oil and gas company that has been in operation for over thirty-five years. Rife is wholly-owned by CN Pension Trust Funds, which also hold approximately 21.6% of outstanding Freehold Common Shares. Freehold pays its proportionate share of Rife s general and administrative costs. As well, the Manager receives a quarterly management fee paid in Common Shares. Board Mandate The Board of Directors is committed to maintaining a high standard of governance. The Board of Directors has responsibility for the overall stewardship of Freehold and its controlled entities and fulfills its responsibility by reviewing, discussing, and approving Freehold's strategic plan, organizational structure and supervising management, including retention of the Manager, with a view to preserving and enhancing the value of Freehold. Three standing committees help the Board of Directors carry out its responsibilities: Audit; Governance, Nominating and Compensation ( GNC ); and Reserves. All three are made up of independent and unrelated directors. Each committee has a written mandate that sets out responsibilities and areas of focus. Governance and Ethics The GNC Committee establishes the Corporation's governance principles and practices and reviews corporate policies, including our Code of Conduct and Conflict of Interest Policy. Rife s employees and consultants are required to adhere to Freehold's Code of Conduct and are expected to conduct business with integrity and high ethical standards. The GNC Committee monitors the performance of Rife on an ongoing basis, and collaborates with Rife to evaluate executive performance and compensation. Environmental and Sustainability Oversight As a royalty owner, Freehold does not directly operate any of our royalty assets. Royalty owners are not generally responsible for operating or capital costs, or environmental or reclamation liabilities. The projects on which we receive royalty revenue are owned and operated by independent oil and gas companies (commonly referred to as our Third Party Operators or Lessees ). Our royalty payors include some of the largest and most recognized third party operators in the Canadian oil and gas industry. These companies are committed to ethical, safe and environmentally responsible operations within the Canadian regulatory framework - which is one of the strongest in the world. Freehold also owns working interests in oil and natural gas properties. Our working interest assets represented 4% of our total operating income and 11% of total production in 217. We are liable for our share of ongoing environmental obligations and for the ultimate reclamation of our working interest properties upon abandonment. Environment, health and safety falls under the responsibility of Rife as manager of Freehold s assets. Rife has a comprehensive program that includes policies and procedures designed to protect the environment and the health and safety of its employees, contractors, and the public. Rife assesses Freehold s environmental, health and safety liabilities through pre-acquisition assessments, periodic assessments, and audits. Environmental, health and safety exposures are tracked and addressed with short and long-term initiatives. Freehold is committed to conducting our business in a manner that respects the environment and minimizes the impact that our operations may have on the quality of the air, land and water that surround us. We have an active well abandonment and site reclamation program for our working interest assets that ensures wells and facilities are decommissioned and abandoned at the end of their economic life. This proactive abandonment program is designed to mitigate any potential public or environmental risks and to maintain compliance with regulatory requirements. 217 ASSET BOOK PAGE 73

76 GOVERNANCE Community Investment Freehold has a long-standing history of supporting philanthropic organizations and local programming. These partnerships are an essential component of engaging and giving back to our local communities. Our Community Investment Program is Based on Three Pillars: 1. Building our Future Supporting child-focused organizations and educational programming ie: Brown Bagging for Kids, Boys and Girls Clubs of Calgary, Calgary Reads 2. Immediate Needs Supporting poverty focused organizations and social service programming ie: Calgary Food Bank, Salvation Army, United Way, Meals on Wheels 3. Ongoing Care Supporting health services and community programming ie: STARS Foundation, Kerby Centre, Calgary Humane Society, Ovarian Cancer Canada 217 ASSET BOOK PAGE 74

77 GLOSSARY OF TERMS Adjusted Payout Ratio - dividend payments to shareholders plus capital spending as a percentage of funds from operations. AIF - means Freehold s 217 Annual Information Form dated March 8, 218. Area - the geographic regions identified on Page 17. Asset Book - means this publication and includes all exhibits and attachments included within. Average Daily Production - total production divided by the number of days on production. Board of Directors - means the Board of Directors of Freehold. Cash Costs - are identified as royalty expense, operating expense, interest expense, general and administrative expense and share based compensation payments. CN Pension Trust Funds - means the pension trust funds for employees of Canadian National Railway Company. COGE Handbook - means the Canadian Oil and Gas Evaluation Handbook prepared jointly by The Society of Petroleum Evaluation Engineers (Calgary Chapter) and the Canadian Institute of Mining, Metallurgy & Petroleum (Petroleum Society), as amended from time to time. Common Shares - means the common shares of Freehold. Cumulative Dividends per Share - cumulative dividends paid to shareholders, or prior to 211 trust unitholders, divided by outstanding share count. Developed Producing Reserves - 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. Dividends per Share - dividends paid to shareholders divided by outstanding share count. Freehold, us, we, our or the Corporation - means Freehold Royalties Ltd. a corporation amalgamated under the Business Corporations Act (Alberta). All references to Freehold, us, we, our or the Corporation, unless the context otherwise requires, are references to Freehold Royalties Ltd., its predecessors, its subsidiaries and partnerships. Freehold pricing assumptions - the price assumptions used by Freehold to estimate Future Upside Value, which assume constant wellhead selling prices and reflect the current commodity environment as at December 31, 217. A summary of these price assumptions are highlighted on page 19 of this Asset Book. Funds from Operations - funds from operations is as presented in our statements of cash flows in our financial statements. Future GORR Locations - the number of future gross overriding royalty prospective drilling locations determined using the analysis outlined in the Current and Future Upside Evaluation section on page of this Asset Book. Future Mineral Title Locations - the number of future Mineral Title prospective drilling locations determined using the analysis outlined in the Current and Future Upside Evaluation section on page of this Asset Book. Future Upside Volume - is net to Freehold, total future crude oil, natural gas liquids and natural gas volumes associated with the Future Mineral Title Locations and Future GORR Locations using the respective type curves and the average net royalty interest by Region and formation we have applied to each of these locations, excluding reserves volumes identified in the Trimble Report. GORR Interests - means royalty and similar non-working interests (other than Lessor interests) including gross overriding royalty interests, production volume royalties and net profit interests. GORR Lands - certain lands in which Freehold holds gross overriding royalty interest in geographic areas, by formation as detailed through the Asset Book. Gross or gross - In relation to wells, the total number of wells in which we have an interest; and In relation to land, the total area in which we have an interest. 217 ASSET BOOK PAGE 75

78 GLOSSARY OF TERMS Gross Capital - represents the estimated capital investment made by oil and gas producers on Freehold s land for the drilling, completion and tie-in of wells. Hydrocarbon - a compound of hydrogen and carbon such as petroleum, natural gas and natural gas liquids. IFRS - International Financial Reporting Standards. Long term Debt to Funds from Operations - long term debt divided by funds from operations for the trailing 12-months. Management Agreement - the fourth amended and restated agreement dated November 9, 215 among the Manager, Rife, the Corporation and certain of the Corporation s subsidiary entities. Management Fee - the fee payable to the Manager pursuant to the Management Agreement. Manager - Rife Resources Management Ltd., a wholly owned subsidiary of Rife Resources Ltd. Mineral Title Lands - prospective lands for petroleum and natural gas and certain other minerals in which Freehold holds a Mineral Title interest in geographic areas, by formation as detailed through the Asset Book. Mineral Title Ownership - defined as one s legal possession of the right to win, work and recover specific minerals from under a parcel of land. Mineral owners have title to all mineral substances found on and under the property. The mineral owner has the right to explore for and recover the minerals including petroleum and natural gas. Net or net - In relation to production and reserves, our royalty interest Netback - operating netback (see advisory relating to Non-GAAP Financial Measures). Netback Price - for royalties represents the price received on a per boe basis by dividing Revenue by Net Production. Net Present Value - is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. Net Royalty Wells - the aggregate obtained by multiplying each gross well by our royalty interest percentage. NGL or Natural Gas Liquids - those hydrocarbon components that can be recovered from natural gas liquids including, but not limited to ethane, propane, butanes, pentanes, condensate plus small quantities of non-hydrocarbons. Original Gas in Place - amount of natural gas first estimated to be in a reservoir. Gas initially in place differs from natural gas reserves as it relates to the total amount of gas that is potentially in a reservoir and is not representative of the amount of gas that can be recovered. See Analogous Information in the Advisories for more information. Original Oil in Place - amount of crude oil first estimated to be in a reservoir. Oil initially in place differs from oil reserves as it relates to the total amount of oil that is potentially in a reservoir and is not representative of the amount of oil that can be recovered. See Analogous Information in the Advisories for more information. Play - a geologic formation or a group of formations in the same region that are controlled by the same set of geological and production circumstances, including but not limited to reservoir type, geologic age, primary product, well type, and/or completion type. Probable Reserves - are those additional 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 Plus Probable or 2P Reserves - Proved Reserves plus Probable Reserves. Proved Reserves - are those 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. Region - the geographic areas identified on Page 17. Reserve life index - is a measure of how long reserves will last at current production rates with no addition to reserves. Rife - Rife Resources Ltd. Royalty % of Operating Income - royalty revenue as a percentage of total corporate operating income. Royalty % of Production - royalty production as a percentage of total corporate volumes. 217 ASSET BOOK PAGE 76

79 Royalty Income - income to the Corporation from its royalties in oil, natural gas, NGL and potash resources. Royalty Lands - the lands from which the Corporation derives Royalty Income. Royalty Revenue - royalty revenue generated by the sale of royalty production. Shareholders - the holders from time to time of the Common Shares. Trimble - Trimble Engineering Associates Ltd, independent qualified reserve evaluators of Calgary, Alberta. Trimble Pricing Assumptions - the forecast costs and price assumptions used in the Trimble Report that assume increases in wellhead selling prices and inflation with respect to future operating and capital costs. Oil and natural gas benchmark reference pricing, inflation and exchange rates as at December 31, 217 utilized in the Trimble Report are highlighted on page 18 of the Asset Book. Trimble Report - the report dated January 26, 218 prepared by Trimble evaluating the oil, natural gas, natural gas liquids and sulfur reserves attributable to the Corporation as at December 31, 217. Total Booked Reserves - represents the total Proved Plus Probable reserve volumes included in the Trimble Report. TSX - the Toronto Stock Exchange. Type Curve - a production curve of a representative type well for a play and or area. The curve is typically established by calculating the average production rate of a number of producing wells for each time period. Undiscounted Booked Reserve Value - the value of the reserve volumes included in the Trimble report utilizing the Trimble Report s estimates for reserves using Trimble Pricing Assumptions. The Undiscounted Booked Reserve Value does not agree with the year-end Trimble Report in Freehold s Annual Information Form due to the inclusion of working interest reserves in the Annual Information Form. Undiscounted Future Upside Value - is the value of Future Upside Volume when applied to Freehold s pricing assumptions highlighted on page 19 of the Asset Book. Undiscounted Total Value - is the sum of Undiscounted Booked Reserve Value and Undiscounted Future Upside Value. Abbreviations AECO reference pricing point for natural gas storage facility near the Alberta/Saskatchewan border bbl and bbls barrel and barrels, respectively, each representing imperial gallons or 42 U.S. gallons bbl/d barrels per day boe barrels of oil equivalent boe/d barrels of oil equivalent per day $m thousands of dollars $mm millions of dollars m one thousand mm one million mbbl one thousand barrels mboe one thousand barrels of oil equivalent mmboe one million barrels of oil equivalent mcf one thousand cubic feet mcf/d one thousand cubic feet per day mmcf one million cubic feet mmcf/d one million cubic feet per day NGL natural gas liquids WCS Western Canadian Select WTI West Texas Intermediate tcf trillion cubic feet Conversion Factors To Convert From To Multiply By mcf cubic meters cubic meters cubic feet bbls cubic meters.159 cubic meters bbls 6.29 feet meters.35 meters feet miles kilometers 1.69 kilometers miles.621 acres hectares.447 hectares acres ASSET BOOK PAGE 77

80 ADVISORIES AND ASSUMPTIONS Third Party and Public Information Except where otherwise stated, the disclosure in this Asset Book relating to the Royalty Lands and operations on such lands is based on information publicly disclosed by the operators of these lands and information/data available in the public domain as at December 31, 217. Although certain of this information has been independently verified by Freehold, as a royalty owner, Freehold may not have complete, current and accurate information relating to the Royalty Lands described in this Asset Book. Additionally, Freehold may, from time to time, receive operating, technical and financial information from operators on the Royalty Lands, which it is not permitted to disclose to the public. Freehold is dependent on operators on the Royalty Lands and their qualified persons to provide information to Freehold or on publicly available information to prepare required disclosure pertaining to the Royalty Lands and generally has limited ability to independently verify such information. Although Freehold does not have any knowledge that such information may not be accurate, there can be no assurance that such third party information is complete or accurate. Some information publicly reported by operators may relate to a larger property than the area covered by Freehold s royalty interest. Freehold s royalty interests often cover only a portion of the publicly reported reserves and production of the property. Advisory Relating to Forward Looking Information This Asset Book contains forward looking information and forward looking statements within the meaning of applicable securities laws, which may include, but are not limited to: statements with respect to future events or future performance; management s belief that our Royalty Lands have multiple years of development opportunity; the intent to provide shareholders with low risk, long term income; the estimate of potential future locations associated with our Royalty Lands; the expectation that Freehold s royalty assets provide investors with a multi-year value proposition; our strategy to create, enhance and deliver value to our shareholders; our belief that Freehold s royalty assets provide significant value upside to our shareholders; our belief that our existing reserves are associated with oil focused, long life assets that can generate significant cash flow at current commodity prices; the future drilling locations and future development upside identified on our Royalty Lands; the potential volumes and values associated with our potential future upside; our strategies for creating, enhancing and delivering value; our targeted adjusted payout ratio; the sensitivities of our free cash flow to changes in commodity prices; our expected adjusted dividend payout ratio in 218; our expected cash costs in 218; our belief that identified drilling locations support multiple years of royalty growth; the expected benefits and advantages of our royalty portfolio; our intent to continue to focus on increasing our royalties relative to working interests with the goal of improving the sustainability of our dividend; the expected percentage that royalty production and operating income will represent of Freehold s total production and operating income in 218; Freehold s belief that Freehold provides a low risk vehicle for investors; and the expected production formations or zones and key drivers to development in each of the areas described in the Area Summaries presented herein. In addition, statements (including data in tables) relating to reserves and resources are forward looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates and assumptions are accurate and that such reserves and resources will be realized. Such forward looking statements reflect management s current beliefs and are based on information currently available to management. Often, but not always, forward looking statements can be identified by the use of words such as plans, expects, is expected, budgets, scheduled, estimates, forecasts, predicts, projects, intends, targets, aims, anticipates or believes or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions may, could, should, would, might or will be taken, occur or be achieved. Forward looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Freehold to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. A number of factors could cause actual events or results to differ materially from any forward looking statement, including, without limitation: fluctuations in the prices of crude oil, natural gas and NGL that drive royalty revenue; changes in national, provincial and local government legislation and regulations, including permitting and licensing regimes and taxation policies and the enforcement thereof; regulatory and political or economic developments in any of the jurisdictions where properties in which Freehold holds a royalty interest are located; risks related to the operators of the properties in which Freehold holds a royalty interest, including changes in the ownership and control of such operators; influence of macroeconomic developments; business opportunities that become available to, or are pursued by Freehold; reduced access to debt and equity capital; litigation; 217 ASSET BOOK PAGE 78

81 title, permit or license disputes related to interests on any of the properties in which Freehold holds a royalty interest; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the properties in which Freehold holds a royalty interest; actual hydrocarbon content may differ from the reserves and resources contained in evaluation reports; rate and timing of production differences from resource estimates and other evaluation reports; risks and hazards associated with the business of exploration and development on any of the properties in which Freehold holds a royalty interest, including, but not limited to unusual or unexpected geological conditions, natural disasters, terrorism, civil unrest or a political change; and the integration of acquired assets. The statements contained in this Asset Book are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Freehold holds a royalty interest by the owners or operators of such properties in a manner consistent with good oilfield practices and all applicable regulations; the availability of capital to such operators to further develop such properties; the accuracy of public statements and disclosures made by the operators on the Royalty Lands; no material adverse change in the market prices of the commodities that underlie the asset portfolio; no material changes to existing tax treatment; no adverse development in respect of any significant property in which Freehold holds a royalty interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in production; integration of acquired assets; the accuracy of assumptions and information used in Freehold s internal assessments of its Royalty Lands and the prospectivity thereof, including with respect to acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However, there can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements and investors are cautioned that forward looking statements are not guarantees of future performance. Freehold cannot assure investors that actual results will be consistent with these forward looking statements. Accordingly, investors should not place undue reliance on forward looking statements due to the inherent uncertainty therein. To the extent any guidance or forward looking statements herein constitute a financial outlook, they are included herein to provide readers with an understanding of management s plans and assumptions for budgeting purposes and readers are cautioned that the information may not be appropriate for other purposes. For additional information with respect to risks, uncertainties and assumptions, please refer to the Risk Factors section in our AIF filed with the Canadian securities regulatory authorities and available at and on our website at The forward looking statements herein are made as of April 9, 218 only and Freehold does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Advisory Relating to Presentation of Oil and Natural Gas Reserves, Royalty Revenue and Production Information This Asset Book contains information relating to crude oil, natural gas and NGL reserves and other information prepared in accordance with the requirements of Canadian securities laws in effect in Canada. The estimates of reserves and associated future net revenues have been evaluated by our independent qualified reserves evaluator, Trimble, in accordance with NI and the COGE Handbook effective as of the relevant date noted with respect to such estimates herein using the Trimble Pricing Assumptions effective as of December 31, 217. Trimble was not involved in the analysis of the Future Upside Volume or the Undiscounted Future Upside presented herein, other than the Future Upside Volume that was identified in the Trimble Report. The net royalty revenue and net royalty production reported by geographic region and play are reported on a production period basis and include estimates for data unavailable as at December 31, 217, and does not represent Freehold s actual royalty revenue or royalty production received by accounting period as disclosed in the Financial & Operating section on pages 13, 14 and 15 of this Asset Book. For the purpose of presenting net royalty revenue and net royalty production by geographic region in this Asset Book, Freehold allocated prior period adjustments to the appropriate production periods to allow for better comparisons between periods. The effect of all significant royalty acquisitions from 215 to 217 have been included as of the closing date of the acquisition. When acquiring royalty assets, the acquirer generally does not have access to detailed levels of information to properly disclose data for periods prior to the closing date of the acquisition. 217 ASSET BOOK PAGE 79

82 ADVISORIES AND ASSUMPTIONS Freehold s annual select corporate results, prepared in accordance with IFRS, are included in the Financial & Operating section on page 15. Further information can be found in our annual audited financial statements as at and for the year ended December 31, 217 and accompanying management s discussion and analysis filed with the Canadian securities regulatory authorities and available at and Freehold s website at Readers are strongly advised to refer to the detailed reserves and other information contained under the headings Reserves Data and Other Oil and Gas Information in our AIF filed with the Canadian securities regulatory authorities and available at and on our website at Advisory Relating to the Payment of Dividends In this Asset Book the Corporation has disclosed our historic dividend payments, including our Cumulative Dividends per Share, and our expected Adjusted Payout Ratio. The historic dividends paid by the Corporation and the expected Adjusted Payout Ratio are not necessarily indicative of future dividends to be paid on the Common Shares. The amount of future cash dividends paid by the Corporation, if any, will be subject to the discretion of the Board of Directors and may vary depending on a variety of factors and conditions existing from time to time, including funds from operations, fluctuations in commodity prices, production levels, capital expenditure requirements, debt service requirements and debt levels, operating costs, royalty burdens, foreign exchange rates and the satisfaction of the liquidity and solvency tests imposed by applicable corporate law for the declaration and payment of dividends. Depending on these and various other factors, many of which will be beyond the control of the Corporation, the dividend policy of the Corporation from time to time and, as a result, future cash dividends could be reduced or suspended entirely. Advisory Relating to Non-GAAP Financial Measures Within this Asset Book, references are made to terms commonly used as key performance indicators in the oil and natural gas industry. We believe that, operating income, operating netback, basic payout ratio, Adjusted Payout Ratio, free cash flow and Cash Costs are useful supplemental measures for management and investors to analyze operating performance, financial leverage, and liquidity, and we use these terms to facilitate the understanding and comparability of our results of operations and financial position. However, these terms do not have any standardized meanings prescribed under Canadian Generally Accepted Accounting Principles (GAAP) and therefore may not be comparable with the calculations of similar measures for other entities. Operating income, which is calculated as royalty and other revenue less royalties and operating expenses, represents the cash margin for product sold. Operating netback, which is calculated as average unit sales price less royalties and operating expenses, represents the cash margin for product sold, calculated on a per boe basis. Payout ratios are often used for dividend paying companies in the oil and gas industry to identify its dividend levels in relation to the funds it receives and uses in its capital and operational activities. Basic payout ratio is calculated as dividends declared as a percentage of funds from operations. Adjusted Payout Ratio is calculated as dividends paid in cash plus capital expenditures as a percentage of funds from operations. Free cash flow is calculated by subtracting capital expenditures from funds from operations. Free cash flow is a measure often used by dividend paying companies to determine cash available for payment of dividends, paying down debt or investment. Cash Costs is a total of certain cash expenses in the statement of income (loss) deducted in determining funds from operations. For Freehold cash costs are identified as royalty expense, operating expense, general and administrative expense, interest expense and share based compensation payments. It is key to funds from operations, representing the ability to, sustain dividends, repay debt and fund capital expenditures. We refer to various per boe figures which provide meaningful information on our operational performance. We derive per boe figures by dividing the relevant revenue or cost figure by the total volume of oil, NGL and natural gas production during the period, with natural gas converted to equivalent barrels of oil as described on page ASSET BOOK PAGE 8

83 For further information related to these non-gaap terms, including reconciliations to the most directly comparable GAAP terms, see our most recent management s discussion and analysis, which is available at and on our website at Advisory Relating Future Upside In this presentation, Freehold has presented an analysis of the potential upside (including both volumes and values) of the Royalty Lands. The potential upside has been internally prepared by Freehold utilizing the assumptions and methodology on page 18 and 19 of the Asset Book. The volumes represented as Future Upside Value and the values presented as Undiscounted Future Upside Value in this Asset Book are not intended, and should not be construed, to represent an estimate of reserves or resources or the value associated with reserves or resources. The volumes presented as Future Upside Volumes and the values presented as Undiscounted Future Upside Value have been presented to help investors understand management s assumptions utilized in determining areas of potential growth as well as part of the analysis utilized by management in assessing its potential royalty acquisitions; however, such Future Upside Volume and Undiscounted Future Upside Value are not determinative of the resources and the value of such resources that will actually be recovered from our Royalty Lands. It is improbable that the actual volumes recovered and associated values will equal the Future Upside Volume and Undiscounted Future Upside Value presented herein as the actual volumes and associated values could be greater or less than the Future Upside Volume and Undiscounted Future Upside Value presented herein. There are more risks and uncertainties associated with the Future Upside Volume and Undiscounted Future Upside Value than there would be with an estimate of reserves or resources. The risks associated with the analysis of the potential upside presented herein include, but are not limited to, the risk that the operators will not have availability of capital to further develop such properties; the accuracy of public statements and disclosures made by the operators on the Royalty Lands; the risk that no resources will be discovered in areas where Freehold has assumed there are resources for the purpose of analyzing the potential upside; the risk that if resources are discovered that they will not be recoverable; the risk that the character and quality of the reservoir will not be as good as in areas where there are existing wells; the risk that the actual performance of wells will not achieve the same performance as projected in the type curves; the risk that a material adverse change in the market price of the commodities that underlie the asset portfolio will affect future drilling and the value of any resources recovered; the risk that regulatory approvals will not be received for the development of such Royalty Lands; the risk that no operators will be willing or able to lease and develop the Royalty Lands; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. In addition many of the risks set out under the heading Risk Factors of the AIF filed with the Canadian securities regulatory authorities available at and on our website at are relevant to the disclosure of the potential upside presented herein. Advisory Related to Future Drilling Locations This presentation discloses several categories of drilling locations referred to as upside locations, Future GORR Locations or Future Mineral Title Locations. Such drilling locations constitute unbooked drilling locations and proved locations or probable locations derived from, or booked in, the Trimble Report. Proved and probable drilling locations account for drilling locations that have been attributed proved and/or probable reserves, as applicable, in the Trimble Report. Unbooked locations are internal estimates based on Freehold s prospective acreage using the methodology set out on page 18 and 19 of this Asset Book. Unbooked locations do not have attributed reserves or resources. The upside locations, Future GORR Locations and Future Mineral Title Locations presented herein do not represent a forecast of the drilling that may take place on the Royalty Lands but rather show the potential future drilling that could occur on such Royalty Lands based on the methodology set out on page 18 and 19. It is unlikely that the number of wells drilled on our Royalty Lands will equal the number of upside locations, Future GORR Locations and Future Mineral Title Locations presented herein. There is also no certainty that the actual wells drilled on our Royalty Lands will result in additional oil and gas reserves, resources or production. The drilling locations on our Royalty Lands that are actually drilled will ultimately depend upon the willingness and ability of operators of such lands to proceed with such drilling, the assessment of the recoverability of resources by operators, availability of capital of the operators, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information and certain other factors. While certain of the unbooked drilling locations have been derisked by drilling existing 217 ASSET BOOK PAGE 81

84 ADVISORIES AND ASSUMPTIONS wells in relative close proximity to such unbooked drilling locations, other unbooked drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves or production. Advisory Related to Analogous Information Estimates of volumes of Original Oil in Place or Original Gas in Place and related recovery factors have been presented in this Asset Book for certain areas or formations that Freehold has royalty interests and such estimates of volumes and recovery factors may constitute analogous information as defined in NI Such information has been based on publicly available information and Freehold has not independently verified the information. Such estimates have not been prepared in accordance with NI or the COGE Book and Freehold cannot confirm that such estimates have been prepared by a qualified reserves evaluator. In some instances Freehold utilized documents including Canadian Discovery Digest and other sources of publicly available information. Management of Freehold believes the information is relevant to help demonstrate the basis for Freehold s belief in the value and future potential of the Royalty Lands relating to such areas or formations and to show some of the underlying assumptions for Freehold s business plans and strategies; however, such analogous information is not intended to represent an estimate of the quantity, value or recovery factors associated with Freehold s Royalty Lands in such areas or formations. Original Oil in Place and Original Gas in Place are generally considered to be equivalent to Total Petroleum Initially-In-Place (TPIIP) as defined in the COGE Handbook, which is that quantity of petroleum that is estimated to exist in naturally occurring accumulations. It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered. A portion of the TPIIP is considered undiscovered and there is no certainty that any portion of such undiscovered resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of such undiscovered resources. With respect to the portion of the TPIIP that is considered discovered resources, there is no certainty that it will be commercially viable to produce any portion of such discovered resources. A significant portion of the estimated volumes of TPIIP will never be recovered. Conversion of Natural Gas to Barrels of Oil Equivalent (BOE) To provide a single unit of production for analytical purposes, natural gas production and reserves volumes are converted mathematically to equivalent barrels of oil (boe). We use the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). The 6:1 boe ratio is based on an energy equivalency conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the boe ratio is useful for comparative measures and observing trends, it does not accurately reflect individual product values and might be misleading, particularly if used in isolation. As well, given that the value ratio, based on the current price of crude oil to natural gas, is significantly different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio may be misleading as an indication of value. 217 ASSET BOOK PAGE 82

85 CORPORATE INFORMATION Freehold Royalties Ltd. 4, Avenue SW Calgary, AB T2P 3N4 t f w. freeholdroyalties.com THE MANAGER Rife Resources Management Ltd. t w. rife.com INVESTOR RELATIONS Matt J. Donohue Manager, Investor Relations t tf e. investorrelations@freehold.com AUDITORS KPMG LLP BANKERS Canadian Imperial Bank of Commerce Bank of Montreal Royal Bank of Canada The Toronto-Dominion Bank LEGAL COUNSEL Burnet, Duckworth & Palmer LLP RESERVE EVALUATORS Trimble Engineering Associates Ltd. STOCK EXCHANGE AND TRADING SYMBOL Toronto Stock Exchange (TSX) Common Shares: FRU TRANSFER AGENT AND REGISTRAR Computershare Trust Company of Canada BOARD OF DIRECTORS Marvin F. Romanow Chair of the Board Gary R. Bugeaud (1) (2) Corporate Director Peter T. Harrison Manager, Oil and Gas Investments CN Investment Division J. Douglas Kay (2) (3) Corporate Director Arthur N. Korpach (1) (2) Corporate Director Susan M. MacKenzie (2) (3) Corporate Director Thomas J. Mullane President and Chief Executive Officer Rife Resources Ltd. Aidan M. Walsh (1) (3) Chief Executive Officer Baccalieu Energy Inc. (1) Audit Committee (2) Governance, Nominating and Compensation Committee (3) Reserves Committee OFFICERS Marvin F. Romanow Chair of the Board Thomas J. Mullane President and Chief Executive Officer Darren G. Gunderson Vice-President, Finance and Chief Financial Officer Robert E. Lamond Vice-President, Exploration David M. Spyker Vice-President, Production Michael J. Stone Vice-President, Land Michael J. Mogan Controller Karen C. Taylor Corporate Secretary 217 ASSET BOOK PAGE 83

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