MANAGEMENT S DISCUSSION & ANALYSIS FOR THE FIRST QUARTER ENDING MARCH 31, 2018

\ MANAGEMENT S DISCUSSION & ANALYSIS FOR THE FIRST QUARTER ENDING MARCH 31, 2018

FINANCIAL AND OPERATING HIGHLIGHTS (Expressed in thousands of Canadian dollars except per boe and share amounts) OPERATIONS Average daily production Three Months Ended March 31, 2018 March 31, 2017 Natural gas (mcf/d) 113,003 38,248 Light oil (bbl/d) 193 80 NGLs (bbl/d) 265 117 Total equivalent (boe/d) 19,292 6,572 Average prices Natural gas ($/mcf) $ 1.92 $ 2.72 Light oil ($/bbl) 69.33 60.15 NGLs ($/bbl) 49.19 40.37 Operating netback Revenue ($/boe) $ 14.21 $ 17.41 Realized gain on risk management contracts ($/boe) 0.76 0.14 Royalties ($/boe) (1.03) (0.57) Net operating expenses ($/boe) (11.38) (8.08) Transportation expenses ($/boe) (1.01) (2.00) Operating netback (1) ($/boe) $ 1.55 $ 6.90 FINANCIAL Petroleum and natural gas revenues (2) $ 24,666 $ 10,295 Cash provided by operating activities $ 5,611 $ 3,270 Per share basic and diluted $ 0.05 $ 0.03 Funds flow from operations (1) $ 240 $ 2,729 Per share basic and diluted $ 0.00 $ 0.03 Adjusted funds flow (1) $ 327 $ 2,828 Per share basic and diluted $ 0.00 $ 0.03 Net income (loss) and comprehensive income (loss) $ (5,097) $ 2,464 Per share basic and diluted $ (0.05) $ 0.03 Capital expenditures $ 821 $ 8,769 Property acquisitions $ 2,711 $ - Net debt (1,3) $ 61,247 $ 38,505 Shares outstanding ( 000s) 109,335 94,244 Weighted average shares outstanding basic and diluted ( 000s) 109,335 94,244 (1) Operating netback, funds flow from operations, adjusted funds, net operating expenses and net debt are non-ifrs measures. See Non- IFRS Measures. (2) Before royalties. (3) Net debt includes Bank debt under its Credit Facilities (as hereinafter defined), Term debt (as hereinafter defined) and working capital deficiency (surplus), excluding fair value of risk management contracts. 1

NON-IFRS MEASURES FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FLOW Two of the benchmarks Ikkuma Resources Corp. ( Ikkuma or the Corporation ) uses to evaluate its performance are funds flow from operations and adjusted funds flow, which are separate and distinct from cash provided by operating activities. Funds flow from operations and adjusted funds flow are non-ifrs measures that are commonly used in the oil and gas industry. Funds flow from operations represent cash provided by operating activities before changes in operating non-cash working capital. Adjusted funds flow represents cash provided by operating activities before changes in non-cash working capital and decommissioning obligation expenditures incurred. The Corporation considers both to be key measures that demonstrate the ability of the Corporation s continuing operations to generate the cash flow necessary to fund future growth through capital investment. Funds flow from operations or adjusted funds flow should not be considered an alternative to or more meaningful than cash provided by operating activities as determined in accordance with IFRS as an indicator of the Corporation s performance. Ikkuma s determination of funds flow from operations or adjusted funds flow may not be comparable with that of other companies. Ikkuma also presents funds flow from operations and adjusted funds flow per share whereby per share amounts are calculated using the weighted average shares outstanding consistent with the calculation of net loss per share. The following table reconciles Ikkuma s cash provided by operating activities to funds flow from operations and adjusted funds flow: (thousands of dollars) Three Months Ended March 31, Cash provided by operating activities $ 5,611 $ 3,270 Changes in non-cash working capital balances relating to operating activities (5,371) (541) Funds flow from operations $ 240 $ 2,729 Decommissioning obligation expenditures 87 99 Adjusted funds flow $ 327 $ 2,828 NET DEBT, NET BANK DEBT AND WORKING CAPITAL DEFICIENCY (SURPLUS) Net Bank debt is measured as bank indebtedness and net working capital deficiency (surplus). Net working capital deficiency (surplus) includes total current assets and current liabilities excluding short-term derivative assets and liabilities related to the Corporation s risk management activities. Net debt includes net Bank debt and the principal amount of the Term debt. Net Bank debt and net debt are used by management to analyze borrowing capacity. OPERATING NETBACK, OPERATING INCOME AND NET OPERATING EXPENSE Management uses certain industry benchmarks such as operating netback, operating income and net operating expense as derived from the netback to analyze financial and operating performance. These benchmarks as presented do not have any standardized meanings prescribed by IFRS and therefore may not be comparable with the calculation of similar measures for other entities. Operating netback equals petroleum and natural gas revenue including realized gains and losses on commodity risk management contracts less royalties, net operating expenses and transportation expenses calculated on a boe basis. Operating income is calculated in the same method as the operating netback, but is presented on a total basis rather than on a boe basis. Management considers operating netback and operating income as important measures to evaluate the Corporation s operational performance as these measures demonstrate Ikkuma s field level profitability relative to current commodity prices. Net operating expense is a non-ifrs measure calculated as operating expenses less other income. Other income includes gas processing income earned from fees charged to third parties at facilities where Ikkuma has an ownership interest. 2

RESULTS OF OPERATIONS PRODUCTION Three months ended March 31, Natural gas (mcf/d) 113,003 38,248 Light oil (bbl/d) 193 80 NGLs (bbl/d) 265 117 Total boe/d (1) 19,292 6,572 % Natural gas 98 97 (1) Excludes sulphur production Total production for the three months ended March 31, 2018 of 19,292 boe/d was 194% higher than the 6,572 boe/d reported in the three months ended March 31, 2017 due to the increased production associated with the December 21, 2017 acquisition of certain natural gas assets in the Foothills of Alberta (the Foothills Acquisition ). Due to the current low natural gas price environment, Ikkuma has shut-in a portion of its gas production in the second quarter of 2018. As a result, average daily production is expected to be in the range of 15,500 16,500 boe/d in the second quarter of 2018. The Corporation plans to bring this shut-in production on once natural gas prices improve, which is expected in the fourth quarter of 2018. PETROLEUM AND NATURAL GAS REVENUE (thousands of dollars, except per boe) Three months ended March 31, Revenue Natural gas $ 19,483 $ 9,379 Light oil 1,201 431 NGLs 1,173 424 Sulphur 2,809 61 Total $ 24,666 $ 10,295 Realized Prices Natural gas ($/mcf) $ 1.92 $ 2.72 Light oil ($/bbl) 69.33 60.15 NGLs ($/bbl) 49.19 40.37 Average price per boe (1) $ 14.21 $ 17.41 Benchmark Pricing Light oil Edmonton par (Cdn $/bbl) $ 71.17 $ 63.63 Natural gas AECO (7A) monthly index (Cdn $/mcf) $ 1.84 $ 2.93 Natural gas AECO (5A) daily index (Cdn $/mcf) $ 2.07 $ 2.69 (1) Includes sulphur revenue Ikkuma s revenue for the three months ended March 31, 2018 of $24.7 million was 140% higher than the $10.3 million reported in the three months ended March 31, 2017 due to the production increase period over period, which was offset by the decrease in the Corporation s realized gas price. Ikkuma s realized natural gas price of $1.92/mcf decreased 29% for the three months ended March 31, 2018 over the same period in 2017 due to the decline in AECO pricing, the Corporation s benchmark pricing. In the fourth 3

quarter of 2017, Ikkuma expanded its natural gas sales portfolio by selling gas on the AECO monthly index in addition to the AECO daily index. For the three months ended March 31, 2018, the AECO daily index price decreased 23% and the AECO monthly index price decreased 37% compared to the same period in 2017. Ikkuma s realized oil price of $69.33/bbl is 97% of the Edmonton Par reference price of $71.17 for the three months ended March 31, 2018. RISK MANAGEMENT CONTRACTS The Corporation enters into risk management commodity contracts in order to reduce volatility in financial results and protect the Corporation s financial position. Ikkuma s strategy focuses on the use of costless collars, options and swaps to limit exposure to fluctuations in commodity prices while allowing for participation in commodity price increases. The Corporation s financial risk management activities are conducted pursuant to the Corporation s Risk Management Policy approved by the board of directors. These contracts had the following impact on the condensed interim statements of income (loss) and comprehensive income (loss): (thousands of dollars, except per boe) Three months ended March 31, Realized gain on risk management contracts $ 1,321 $ 82 Per boe $ 0.76 $ 0.14 Unrealized gain (loss) on risk management contracts $ (440) $ 6,392 Per boe $ (0.25) $ 10.81 At March 31, 2018, the Corporation held the following risk management commodity contracts: Natural Gas (AECO $Cdn) Remaining Term Option Traded Volume (GJ/d) Strike Price January 1, 2019 - December 31, 2019 Call option - sold 7,000 $3.00 April 1, 2018 - December 31, 2018 Fixed price swap 5,000 $2.70 April 1, 2018 - December 31, 2018 Fixed price swap 5,500 $2.72 January 1, 2019 - December 31, 2019 Call option sold 6,000 $3.00 April 1, 2018 - December 31, 2018 Fixed price swap (1) 2,500 $2.80 November 1, 2018 - March 31, 2019 Fixed price swap 10,000 $1.89 (1) This contract has a European option whereby if the price on settlement each month exceeds $2.80/GJ the contract doubles to 5,000 GJ at $2.80. Light Oil (WTI $Cdn) Remaining Term Option Traded Volume (bbl/d) Strike Price February 1, 2018 - December 31, 2018 Call option - sold 200 $77.50 ROYALTIES (thousands of dollars, except per boe) Three months ended March 31, Royalties $ 1,781 $ 336 Per boe 1.03 0.57 Percentage of revenue ( Royalty Rate ) 7% 3% Ikkuma s Royalty Rate for the three months ended March 31, 2018 of 7% was 133% higher than the 3% reported in the first quarter last year due to additional gas cost allowance ( GCA ) adjustments recorded in the three months 4

ended March 31, 2017. The total GCA credits recorded in the prior year quarter were $0.6 million. Excluding the GCA credits, Ikkuma s Royalty Rate would have been 9% for the three months ended March 31, 2017, comparable to the Royalty Rate of 7% for the three months ended March 31, 2018. NET OPERATING EXPENSES (thousands of dollars, except per boe) Three months ended March 31, Operating expenses $ 20,077 $ 4,916 Other income (315) (136) Net operating expenses 19,762 4,780 Per boe $ 11.38 $ 8.08 Ikkuma s per unit net operating expenses for the three months ended March 31, 2018 of $11.38/boe was 41% higher than the comparable period in 2017. The increase is primarily due to the higher per unit operating expenses associated with the Foothills Acquisition properties. Field optimization initiatives are expected to reduce net operating expenses throughout 2018 on the acquired assets. TRANSPORTATION EXPENSES (thousands of dollars, except per boe) Three months ended March 31, Gas transportation $ 1,650 $ 1,135 Oil transportation 111 45 Total transportation expenses $ 1,761 $ 1,180 Per boe 1.01 2.00 The Corporation s transportation expense per boe for the three months ended March 31, 2018 of $1.01/boe was 50% lower than the $2.00/boe reported in the comparable period as the Foothills Acquisition properties have lower transportation expenses in comparison to Ikkuma s historical transportation costs. OPERATING INCOME & OPERATING NETBACKS Operating Income Three months ended March 31, (thousands of dollars) Revenue $ 24,666 $ 10,295 Realized gain on risk management contracts 1,321 82 Royalties (1,781) (336) Net operating expenses (19,762) (4,780) Transportation expenses (1,761) (1,180) Operating income $ 2,683 $ 4,081 5

Operating Netbacks Three months ended March 31, (thousands of dollars) Revenue $ 14.21 $ 17.41 Realized gain on risk management contracts 0.76 0.14 Royalties (1.03) (0.57) Net operating expenses (11.38) (8.08) Transportation expenses (1.01) (2.00) Operating netbacks $ 1.55 $ 6.90 Ikkuma s operating netback for the three months ended March 31, 2018 of $1.55/boe was 78% lower than the $6.90/boe reported for the three months ended March 31, 2017. The decrease in operating netback was due to the 29% decrease in the Corporation s realized gas pricing and an increase in net operating expenses associated with the Foothills Acquisitions properties. Field optimization initiatives are expected to reduce operating expenses throughout 2018 on the acquired assets. GENERAL AND ADMINISTRATIVE ( G&A ) EXPENSES (thousands of dollars, except per boe) Three months ended March 31, Gross costs $ 1,960 $ 1,462 Operator s recoveries (187) (114) Capitalized costs (380) (383) G&A expenses $ 1,383 $ 965 Per boe $ 0.80 $ 1.63 Per unit G&A expenses for the three months ended March 31, 2018 decreased by 51% to $0.80/boe compared to $1.63/boe in the prior year quarter due to the higher production volumes base period over period. FINANCE EXPENSES (thousands of dollars) Three months ended March 31, Interest and fees on Bank debt $ 169 $ 288 Interest on Term debt 804 - Accretion on deferred finance costs 111 - Accretion on decommissioning obligation 859 221 Total finance expenses $ 1,943 $ 509 Finance expense boe $ 1.12 $ 0.86 On May 25, 2017, Ikkuma entered into a $45.0 million second lien secured term loan facility (the Term debt ) that is repayable March 31, 2022 and bears interest at 7.25% per annum with semi-annual interest payments due June 30 and December 31 of each year. Accordingly, interest expense on the Term debt was $0.8 million for the three months ended March 31, 2018 and nil for the comparable period. The Term debt was used to repay outstanding bank indebtedness under the syndicated credit facilities ( Credit Facilities or Bank debt ), reducing the average drawings on the Corporation s Bank debt for the three months ended March 31, 2018. The average drawings on the Bank debt was $9.6 million for the three months ended March 31, 2018 and 65% lower than the average drawings of $27.1 million in the prior year quarter. 6

Accretion on decommissioning obligations for the three months ended March 31, 2018 of $0.9 million was substantially higher than the $0.2 million accretion expense for the first quarter of 2017. This is due to incremental accretion expense associated with the additional wells and facilities from the Foothills Acquisition. Accretion on deferred financing costs is comprised of debt issue costs of $0.6 million and the fair value of the warrants issued to AIMCo of $1.6 million and are being amortized over the life of the Term debt. SHARE-BASED COMPENSATION (thousands of dollars) Three months ended March 31, Gross costs $ 374 $ 22 Capitalized costs (110) (6) Total share-based compensation $ 264 $ 16 The Corporation had 9.4 million stock options outstanding as at March 31, 2018, as compared to 0.8 million stock options outstanding as at March 31, 2017. Share-based compensation expense for the three months ended March 31, 2018 increased as compared to the prior year quarter as a result of the increase in stock options outstanding. DEPLETION AND DEPRECIATION (thousands of dollars, except per boe) Three months ended March 31, Depletion and depreciation expense $ 5,519 $ 4,798 Per boe 3.18 8.11 Per unit depletion and depreciation expense for the three months ended March 31, 2018 is 61% lower than the comparable period of 2017 due to the lower depletion rates associated with assets acquired in the Foothills Acquisition and the reduction in the depletable base resulting from the fourth quarter 2017 impairment expense. IMPAIRMENT There were no impairment indicators identified for the three months ended March 31, 2018 or the first quarter of 2017. Commodity prices remain volatile, and accordingly, impairment charges or recoveries could be recorded in future periods. CAPITAL EXPENDITURES (thousands of dollars) Three months ended March 31, Land & Seismic $ 127 $ 129 Drilling and completions 311 8,510 Facilities, equipment and pipelines 375 126 Other 8 4 Total exploration and development $ 821 $ 8,769 Property acquisition 2,711 - Total capital expenditures $ 3,532 $ 8,769 Total exploration and development expenditures for the three months ended March 31, 2018 of $0.8 million was lower than the $8.8 million recorded in the three months ended March 31, 2017 due to decreased capital activity as 7

the Corporation focused its efforts on the integration and optimization of the assets acquired in the Foothills Acquisition. During the first quarter of 2018, one of the right of first refusal ( ROFR ) agreements associated with the Foothills Acquisition, which was recorded in accounts receivable as at December 31, 2017, did not close and therefore the working interest in certain wells associated with this ROFR agreement have now been acquired by Ikkuma for $2.7 million. DECOMMISSIONING OBLIGATION As at March 31, 2018, the decommissioning obligation of the Corporation was $155.0 million (2017 - $45.0 million). CASH PROVIDED BY OPERATING ACTVITIES, ADJUSTED FUNDS FLOW AND NET LOSS (thousands of dollars, except per share amounts) Three Months Ended March 31, Cash provided by operating activities $ 5,611 $ 3,270 Adjusted funds flow $ 327 $ 2,828 Per share basic and diluted $ 0.00 $ 0.03 Net income (loss) $ (5,097) $ 2,464 Per share basic and diluted $ (0.05) $ 0.03 Ikkuma s increase in cash provided by operating activities for the three months ended March 31, 2018 as compared to same period last year is due to changes in non-cash working capital. Adjusted funds flow for the three months ended March 31, 2018 is 88% lower period over period due to a lower operating netback. A net loss was incurred in the period ended March 31, 2018 due to a lower price environment and higher operating expenses incurred to accommodate larger production volumes. DEFERRED INCOME TAX The Corporation s oil and natural gas reserves generate sufficient future cash flows to make it probable that future taxable profits will be available, which the Corporation can utilize the benefit of tax deductions. Accordingly, the Corporation has recognized a deferred income tax asset of $34.1 million relating to deductible temporary differences. Ikkuma has tax pools of approximately $251.7 million including $80.0 million of non-capital loss carry-forwards, available for deduction against future taxable income. Non-capital losses expire between 2026 and 2037. LIQUIDITY AND CAPITAL RESOURCES CAPITAL FUNDING The Corporation s objective when managing capital is to maintain a flexible capital structure that will allow it to execute on its capital expenditure program, which includes expenditures on oil and gas activities that may or may not be successful. Therefore, the Corporation monitors the level of risk incurred in its capital expenditures to balance the proportion of debt and equity in its capital structure. The Corporation considers its capital structure to include working capital, Bank debt, Term debt and shareholders equity with a primary objective of maintaining a strong financial position in order to continue the future growth of the Corporation. Ikkuma monitors its capital structure and makes adjustments on an ongoing basis in order to maintain the flexibility needed to achieve the Corporation s long-term objectives. To manage the capital structure the Corporation may adjust capital spending, hedge future revenue and costs, issue new equity, issue new debt, amend, revise or extend the terms of the existing Credit Facilities or repay existing debt through non-core asset sales. 8

LIQUIDITY RISK Liquidity risk is the risk that the Corporation will not be able to meets its financial obligations as they become due. The Corporation s approach to managing liquidity is to ensure that Ikkuma will have sufficient liquidity to meet its short-term and long-term financial obligations when due, under both normal and unusual conditions, without incurring unacceptable losses or risking harm to the Corporation s reputation. The Corporation s financial liabilities include accounts payable and accrued liabilities of $31.7 million that are due within the next year, Term debt outstanding of $45.0 million and Credit Facilities of $25.0 million with $1.7 million drawn as at March 31, 2018. On May 28, 2018, the Corporation entered into an Amending Agreement whereby the borrowing base of the Credit Facilities was re-determined at $25.0 million, of which $15.0 million is available at the full discretion of the Corporation and $10.0 million is restricted by the lenders. The Credit Facilities include a restriction that prevents the funds from being used for capital spending related to the Corporation s CEE flow-through share obligations and related commitments of $12.1 million that is required to be spent by December 31, 2018. As a result of this restriction on the Credit Facilities, alternative sources of financing will need to be obtained in order to meet the Corporation s commitments. Ikkuma is actively working on several options to fund the flow-through share obligations including asset dispositions or alternate financing, specifically, the Corporation has entered into a non-binding letter of intent to sell certain midstream assets pending execution of a definitive purchase and sale agreement. The Corporation has also engaged GMP FirstEnergy to sell non-core production and additional infrastructure assets through a public process. The Corporation is also pursuing other sources of liquidity. NET DEBT Management s goal is to maintain its balance sheet while managing risk and providing capital to fund expansion of the business. (thousands of dollars) As at: March 31, 2018 December 31, 2017 Net working capital deficiency (excluding risk management contracts) $ 14,498 $ 2,506 Bank debt 1,749 10,449 Net Bank debt $ 16,247 $ 12,955 Term debt (measured at principal amount) 45,000 45,000 Net debt $ 61,247 $ 57,955 WORKING CAPITAL The capital intensive nature of Ikkuma s activities generally results in the Corporation carrying a working capital deficit. Working capital deficiency includes cash and cash equivalents, prepaid expenses and deposits, and accounts receivable less accounts payable and accrued liabilities. The Corporation maintains sufficient unused credit lines to satisfy working capital deficiencies. COMMITMENTS Throughout the course of its ongoing business, the Corporation enters into various contractual obligations such as credit agreements, purchase of services, royalty agreements, operating agreements, processing agreements, right of way agreements and lease obligations for office space and field equipment. These obligations reflect market conditions prevailing at the time of contract. Ikkuma believes it has adequate sources of capital to fund all contractual obligations as they come due. The following are the obligations of the Corporation representing future commitments. 9

(thousands of dollars) 2018 2019 2020 2021 2022 Thereafter Total Operating lease $ 354 $ 116 $ - $ - $ - $ - $ 470 Flow-through shares 12,119 - - - - - 12,119 Interest on Term debt 2,458 3,263 3,271 3,263 804-13,059 Firm transportation 5,224 6,141 3,430 1,799 1,444 4,444 22,482 Total $ 20,155 $ 9,520 $ 6,701 $ 5,062 $ 2,248 $ 4,444 48,130 RELATED PARTY TRANSACTIONS The Corporation did not have any related party transactions in the three months ended March 31, 2018. COMMON SHARE INFORMATION Three months ended March 31, Outstanding common shares end of period 109,334,987 94,243,766 Weighted average outstanding common shares (1) basic and diluted 109,334,987 94,243,766 (1) The Corporation s stock options and performance warrants are antidilutive. At May 30, 2018, the Corporation had 109,334,987 shares, 9,383,700 stock options ($0.74 average strike price), 3,333,333 warrants ($1.00 strike price) and 6,750,000 warrants ($0.86 strike price) outstanding. As at May 30, 2018, there were no preferred shares issued or outstanding. OFF BALANCE SHEET ARRANGEMENTS The Corporation did not have any off balance sheet arrangements in the three months ended March 31, 2018. SUBSEQUENT EVENT On May 28, 2018, the Corporation entered into an Amending Agreement with respect to its syndicated Credit Facilities with its banking syndicate, whereby the borrowing base was re-determined and remained at $25.0 million, of which $15.0 million is available at the full discretion of the Corporation and $10.0 million is restricted by the lenders. The Credit Facilities include a restriction which prevents the funds from being used for capital spending related to the Corporation s CEE flow-through share obligations and related commitments. The renewal term out date was extended to May 30, 2019 and the financial covenant commencement period was extended to March 31, 2020. The Term debt facility was also amended to extend the commencement period of the financial covenants until March 31, 2020. 10

ADDITIONAL DISCLOSURES QUARTERLY ANALYSIS (thousands of dollars, except daily production, average wellhead price and per share amounts) Q1 2018 Q4 2017 Average daily production (boe/d) 19,292 7,324 5,707 5,861 6,571 5,967 5,866 5,921 Petroleum and natural gas revenue 24,666 8,385 5,120 9,362 10,295 10,669 7,670 4,576 Average wellhead price ($/boe) 14.21 12.45 9.75 17.55 17.41 19.43 14.21 8.49 Exploration and development expenditures 821 3,222 10,050 2,388 8,769 6,949 4,111 694 Property acquisitions 2,711 33,541 - - - - 27 2,713 Property dispositions - (20,082) - - - - - - Cash (used in) provided by operating activities 5,611 (4,826) 969 2,204 3,270 3,665 519 2,709 Per share basic and diluted 0.05 (0.04) 0.01 0.02 0.03 0.04 0.01 0.03 Funds flow from (used in) operations 240 (2,761) (1,212) 2,045 2,729 3,063 2,554 2,285 Per share basic and diluted 0.00 (0.03) (0.01) 0.02 0.03 0.03 0.03 0.03 Adjusted funds flow 327 (622) (576) 2,064 2,828 3,216 2,563 2,397 Per share basic and diluted 0.00 (0.01) (0.01) 0.02 0.03 0.03 0.03 0.03 Net income (loss) and comprehensive income (loss) (5,097) (34,120) (3,394) (898) 2,464 (8,971) (1,952) (9,441) Per share basic and diluted (0.05) (0.31) (0.03) (0.01) 0.03 (0.10) (0.02) (0.11) Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 Significant factors and trends that have impacted the Corporation s results during the above periods include: Q1 2018 production increased significantly from the prior year quarter due to the increased production from the wells related to the Foothills Acquisition, which closed on December 21, 2017. Q4 2017 production increased from Q3 2017 as a result of the production related to the Foothills Acquisition. Q4 2017 adjusted funds flow of $(0.6) million is due to the 44% decrease in realized natural gas pricing from the prior year quarter. Q4 2017 net loss of $36.5 million is primarily attributed to impairment expense of $63.0 million recognized on the Ojay/Narraway and Northern Foothills CGUs. This expense is partially offset by the gain on sale of property plant and equipment of $19.7 million and an increase in realized and unrealized gain on risk management commodity contracts. Q3 2017 adjusted funds flow of $(0.6) million is due to the 37% reduction in realized natural gas pricing from the prior year quarter and non-recurring G&A expenses of $0.2 million. Q2 2017 average daily production decreased from Q1 2017 due to scheduled turnaround maintenance. Q1 2017 net income of $2.5 million is due to a $6.4 million unrealized gain on risk management commodity contracts. Q4 2016 net loss of $9.0 million is primarily due to a $6.6 million unrealized loss on risk management commodity contracts and a $3.2 million impairment expense. Q3 2016 oil and natural gas revenue increase as natural gas prices improve in the quarter. Q2 2016 exploration and development expenses are lower due to spring breakup. Q2 2016 average daily production dropped from Q1 2016 due to shutting-in of uneconomic sour gas production along with downtime in June 2016 for scheduled turnaround maintenance. Q2 2016 oil and natural gas revenues were lower than previous quarters due to lower production volumes and a 30% drop in natural gas realized prices. CHANGES IN ACCOUNTING POLICIES The Corporation has applied the following new and revised accounting pronouncements in preparing the March 31, 2018 unaudited quarterly financial statements. The Corporation has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. 11

IFRS-9 Financial Instruments As of January 1, 2018, the Corporation has adopted IFRS-9 Financial Instruments, which is the result of the first phase of the IASB project to replace IAS-39 Financial Instruments: Recognition and Measurement. The new standard replaces the current multiple classification and measurement models for financial assets and liabilities with a single model that has two classification categories: amortized cost and fair value. The classification of financial assets under IFRS 9 is generally based on the business model for managing the financial assets and the financial asset s contractual cash flow characteristics. IFRS-9 eliminates the previous IFRS-39 categories of held to maturity, loans and receivables and available for sale. The new standard introduces changes to hedge accounting requirements to align accounting with an entity s risk management activities. The transition to IFRS-9 had no material effect on the Corporation s financial statements. Cash and cash equivalents, if any, accounts receivables and accounts payables continue to be measured at amortized cost and are now classified as amortized cost. Ikkuma does not currently apply hedge accounting to its financial instrument contracts. IFRS-15 Revenue from Contracts with Customers As of January 1, 2018, the Corporation has adopted IFRS-15 Revenue from Contracts with Customers. The standard replaces IAS-11 Construction Contracts; IAS-18 Revenue, IFRIC-13 Customer Loyalty Programmes, IFRIC-15 Agreements for the Construction of Real Estate, IFRIC-18 Transfers of Assets from Customers and SIC-31 Revenue-Barter Transactions Involving Advertising Services. The standard dictates the recognition and measurement requirements for reporting the nature, amount, timing and uncertainty of revenue resulting from an entity s contracts with customers. The Corporation adopted IFRS-15 via the modified retrospective adoption approach effective January 1, 2018. Ikkuma has reviewed its revenue streams and underlying contracts with customers using the IFRS 15 five-step model, which did not result in any changes to the comparative period or the opening deficit. Revenue Recognition Policy Revenue from the sale of petroleum and natural gas is measured based on the consideration specified in contracts with customers. The Corporation recognizes revenue when it transfers control of the product to the buyer. This is generally at the time the customer obtains legal title to the product and when it is physically transferred to the custody transfer point agreed with the customer, often terminals, pipelines or other transportation methods. The Corporation evaluates its arrangements with 3rd parties and partners to determine if the Corporation acts as the principal or as an agent. In making this evaluation, management considers if the Corporation obtains control of the product delivered, which is indicated by the Corporation having the primary responsibility for the delivery of the product, having the ability to establish prices or having inventory risk. If the Corporation acts in the capacity of an agent rather than as a principal in a transaction, then the revenue is recognized on a net-basis, only reflecting the fee, if any, realized by the Corporation from the transaction. FUTURE ACCOUNTING PRONOUNCEMENTS The Corporation has reviewed the following new and revised accounting pronouncements that have been issued but are not yet effective and determined that the following may have an impact on the Corporation s financial statements: IFRS-16 Leases As of January 1, 2019, the Corporation will be required to adopt IFRS-16 Leases. For lessees applying the new standard, a single recognition and measurement model for leases would be adopted and would require recognition of assets and liabilities for most leases. The standard may be applied retrospectively or by using a modified retrospective approach. Ikkuma is in the process of identifying and gathering contracts impacted by the new standard. It is anticipated that the adoption of IFRS-16 will have an impact on the Corporation s statement of financial position. 12

ADVISORIES Management s discussion and analysis ( MD&A ) is Ikkuma Resources Corp. s ( Ikkuma or the Corporation ) explanation of its financial performance for the period covered by the financial statements along with an analysis of the Corporation s financial position. Comments relate to and should be read in conjunction with the audited financial statements of the Corporation for the years ended December 31, 2017 and 2016, and the unaudited condensed interim financial statements as at and for the three months ended March 31, 2018 and 2017. This MD&A is dated May 30, 2018 and based on information available to that date. All figures provided herein and in the March 31, 2018 unaudited condensed interim financial statements are reported in Canadian dollars. FORWARD LOOKING STATEMENTS Ikkuma is a Canadian-based corporation whose common shares are traded on the TSX Venture Exchange ( TSX-V ) under the symbol IKM. This MD&A contains forward-looking statements. The use of any of the words expect, anticipate, continue, estimate, objective, ongoing, may, will, project, should, believe, plans, intends and similar expressions are intended to identify forward-looking statements or information. In particular this MD&A contains forward-looking statements pertaining to the following: the expectation that field optimization initiatives will reduce operating expenses throughout 2018 on the Foothills Acquisition properties, the pursuit of several options to fund the Corporation s flow-through share obligations and the sale of certain midstream assets and the sale of non-core production and additional infrastructure through a public process. In addition, management s assessment of future plans and operations, drilling plans, and the timing thereof, plans for the tie-in and completion of wells and the timing thereof, capital expenditures, timing of capital expenditures, and methods of financing capital expenditures and the ability to fund financial liabilities, production estimates, expected commodity mix and prices, future operating costs, future transportation costs, expected royalty rates, general and administrative expenses, interest rates, debt levels, funds from operations and the timing of and impact of implementing accounting policies, estimates regarding undeveloped land position and estimated future drilling, recompletion, or reactivation locations and anticipated impact on the Corporation s forecasts in respect of capital expenditures may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefit of acquisitions, the inability to fully realize the benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and inability to access sufficient capital from internal and external sources. As a consequence, the Corporation s actual results may differ materially from those expressed in, or implied by, the forward-looking statements. Forward-looking statements or information is based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although the Corporation believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements and information but which may prove to be incorrect. Although the Corporation believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Corporation can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document and other documents filed by the Corporation, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which the Corporation operates; the ability of the Corporation to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects which the Corporation has an interest in to operate the field in a safe, efficient and effective manner; the Corporation s ability to obtain financing on acceptable terms; changes in the Corporation s Credit Facilities; field production rates and decline rates; the ability to reduce operating costs; the ability to replace and expand oil and natural gas reserves through acquisition, development or exploration; the timing and costs of pipeline, storage and facility construction and expansion; the ability of the Corporation to secure adequate product transportation; future petroleum and natural gas prices; currency exchange and interest rates; the regulatory framework regarding royalties, taxes, and environmental matters in the jurisdictions in which the Corporation operates; and the Corporation s ability to successfully market its petroleum and natural gas products. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and 13

other factors that could affect the Corporation s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or at the Corporation s website (www.ikkumarescorp.com). Furthermore, the forward-looking statements contained in this MD&A are made as at the date of this document and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable securities laws. CONVERSIONS The oil and gas industry commonly expresses production volumes and reserves on a barrel of oil equivalent basis ( boe ) whereby natural gas volumes are converted at the ratio of six thousand cubic feet to one barrel of oil. The intention is to sum oil and natural gas measurement units into one basis for improved analysis of results and comparisons with other industry participants. Throughout this MD&A the Corporation has used the 6:1 boe measure which is the approximate energy equivalency of the two commodities during combustion. Boe does not represent a value equivalency at the wellhead nor at the plant gate which is where the Corporation sells its production volumes, and therefore, may be a misleading measure, particularly if used in isolation. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a 6:1 conversion may be misleading as an indication of value. 14

INTERIM FINANCIAL STATEMENTS FOR THE FIRST QUARTER ENDING MARCH 31, 2018

CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION (Expressed in thousands of Canadian dollars; unaudited) As at: March 31, 2018 December 31, 2017 ASSETS Current assets Accounts receivable $ 16,631 $ 9,698 Prepaid expenses and deposits 567 569 Fair value of risk management contracts (Note 13) 5,183 5,661 Non-current assets 22,381 15,928 Exploration and evaluation (Note 6) 5,874 5,840 Property, plant and equipment (Note 7) 270,947 272,150 Deferred tax 34,129 32,360 Total Assets $ 333,331 $ 326,278 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities Accounts payable and accrued liabilities (Note 13) $ 31,696 $ 12,773 Non-current liabilities 31,696 12,773 Bank debt (Note 8) 1,749 10,449 Term debt (Note 9) 43,189 43,078 Flow-through share premium (Note 11) 1,702 1,702 Fair value of risk management contracts (Note 13) 31 69 Decommissioning obligation (Note 10) 154,963 153,483 Shareholders equity 201,634 208,781 Share capital (Note 11) 192,851 192,851 Warrants (Note 11) 3,468 3,468 Contributed surplus 27,852 27,478 Deficit (124,170) (119,073) 100,001 104,724 Total Liabilities and Shareholders Equity $ 333,331 $ 326,278 Commitments (Note 13 &14) Subsequent event (Note 15) The accompanying notes are an integral part of these condensed interim financial statements. 1

CONDENSED INTERIM STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (Expressed in thousands of Canadian dollars except per share amounts; unaudited) Revenues Three months ended March 31, Petroleum and natural gas (Note 5) $ 24,666 $ 10,295 Royalties (1,781) (336) 22,885 9,959 Realized gain on risk management contracts (Note 13) 1,321 82 Unrealized gain (loss) on risk management contracts (Note 13) (440) 6,392 Other income 315 136 24,081 16,569 Expenses Operating 20,077 4,916 Transportation 1,761 1,180 General and administrative 1,383 965 Share-based compensation (Note 12) 264 16 Depletion and depreciation (Note 7) 5,519 4,798 29,004 11,875 Income (loss) from operations (4,923) 4,694 Finance expense 1,943 509 Income (loss) before taxes (6,866) 4,185 Taxes Deferred tax expense (recovery) (1,769) 1,721 (1,769) 1,721 Net income (loss) and comprehensive income (loss) $ (5,097) $ 2,464 Income (loss) per share Basic and diluted $ (0.05) $ 0.03 The accompanying notes are an integral part of these condensed interim financial statements. 2

CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Expressed in thousands of Canadian dollars; unaudited) Share Capital Warrants Contributed Surplus Deficit Total Equity Balance at December 31, 2016 $ 182,320 $ 2,325 $ 26,781 $ (83,124) $ 128,302 Share-based compensation (Note 12) - - 22-22 Net income for the period - - - 2,464 2,464 Balance at March 31, 2017 $ 182,320 $ 2,325 $ 26,803 $ (80,660) $ 130,788 Issue of flow-through common shares, net of premium (Note 11) 10,638 - - - 10,638 Share issue costs, net of taxes (Note 11) (107) - - - (107) Share-based compensation (Note 12) - - 675-675 Issuance of warrants, net of taxes (Note 11) - 1,143 - - 1,143 Net loss for the period - - - (38,413) (38,413) Balance at December 31, 2017 $ 192,851 $ 3,468 $ 27,478 $ (119,073) $ 104,724 Share-based compensation (Note 12) - - 374-374 Net loss for the period - - - (5,097) (5,097) Balance at March 31, 2018 $ 192,851 $ 3,468 $ 27,852 $ (124,170) $ 100,001 The accompanying notes are an integral part of these condensed interim financial statements. 3

CONDENSED INTERIM STATEMENTS OF CASH FLOWS (Expressed in thousands of Canadian dollars; unaudited) Three months ended March 31, Operating activities Net income (loss) $ (5,097) $ 2,464 Depletion and depreciation 5,519 4,798 Share-based compensation 264 16 Unrealized loss (gain) on risk management contracts 440 (6,392) Accretion 970 221 Deferred tax expense (recovery) (1,769) 1,721 Decommissioning expenditures (87) (99) Changes in non-cash working capital 5,371 541 Cash provided by operating activities 5,611 3,270 Financing activities Increase (decrease) in bank debt (8,700) 4,557 Changes in non-cash working capital 881 - Cash provided by (used in) financing activities (7,819) 4,557 Investing activities Property, plant and equipment expenditures (787) (8,735) Exploration and evaluation asset expenditures (34) (34) Property, plant and equipment acquired, net (2,711) - Changes in non-cash working capital 5,740 942 Cash provided by (used in) investing activities 2,208 (7,827) Change in cash and cash equivalents - - Cash & cash equivalents, beginning of period - - Cash & cash equivalents, end of period $ - $ - The accompanying notes are an integral part of these condensed interim financial statements. 4

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS For the three months ended March 31, 2018 and 2017 (Expressed in thousands of Canadian dollars except per share amounts; unaudited) 1. REPORTING ENTITY The principle business activity of Ikkuma Resources Corp. ( Ikkuma or the Corporation ) is the exploration, development and production of petroleum and natural gas resources located in the foothills of Alberta and British Columbia. The Corporation is headquartered in Calgary and is an Alberta-based reporting entity whose shares are listed on the TSX Venture Exchange under the symbol: IKM.V. The principal address is located at 2700, 605 5th Avenue S.W. Calgary, AB, T2P 3H5. 2. BASIS OF PRESENTATION These condensed interim financial statements have been prepared in accordance with International Accounting Standard ( IAS ) 34 Interim Financial Reporting using accounting policies consistent with International Financial Reporting Standards ( IFRS ) and have been prepared following the same accounting policies and methods of computation in the Corporation s annual financial statement for the year ended December 31, 2017, except for as stated below. The condensed interim financial statements do not include certain disclosures that are required to be included in annual financial statements and they should be read in conjunction with the annual financial statements for the year ended December 31, 2017. These condensed interim financial statements were authorized for issuance by Ikkuma s Board of Directors on May 30, 2018. Certain comparative numbers have been reclassified to conform to current presentation. 3. CHANGES IN ACCOUNTING POLICIES The Corporation has applied the following new and revised accounting pronouncements in preparing the March 31, 2018 quarterly financial statements. The Corporation has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. IFRS-9 Financial Instruments As of January 1, 2018, the Corporation has adopted IFRS-9 Financial Instruments, which is the result of the first phase of the IASB project to replace IAS-39 Financial Instruments: Recognition and Measurement. The new standard replaces the current multiple classification and measurement models for financial assets and liabilities with a single model that has two classification categories: amortized cost and fair value. The classification of financial assets under IFRS 9 is generally based on the business model for managing the financial assets and the financial asset s contractual cash flow characteristics. IFRS- 9 eliminates the previous IFRS-39 categories of held to maturity, loans and receivables and available for sale. The new standard introduces changes to hedge accounting requirements to align accounting with an entity s risk management activities. The transition to IFRS-9 had no material effect on the Corporation s financial statements. Cash and cash equivalents, if any, accounts receivables and accounts payables continue to be measured at amortized cost and are now classified as amortized cost. Ikkuma does not currently apply hedge accounting to its financial instrument contracts. IFRS-15 Revenue from Contracts with Customers As of January 1, 2018, the Corporation has adopted IFRS-15 Revenue from Contracts with Customers. The standard replaces IAS-11 Construction Contracts; IAS-18 Revenue, IFRIC-13 Customer Loyalty Programmes, IFRIC-15 Agreements for the Construction of Real Estate, IFRIC-18 Transfers of Assets from Customers and SIC-31 Revenue-Barter Transactions Involving Advertising Services. The standard dictates the recognition and measurement requirements for reporting the nature, amount, timing and uncertainty of revenue resulting from an entity s contracts with customers. The Corporation adopted IFRS-15 via the modified retrospective adoption approach effective January 1, 2018. Ikkuma has reviewed its revenue streams and underlying contracts with customers using the IFRS 15 five-step model, which did not result in any changes to the comparative period or the opening deficit. 5

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS Revenue Recognition Policy Revenue from the sale of petroleum and natural gas is measured based on the consideration specified in contracts with customers. The Corporation recognizes revenue when it transfers control of the product to the buyer. This is generally at the time the customer obtains legal title to the product and when it is physically transferred to the custody transfer point agreed with the customer, often terminals, pipelines or other transportation methods. The Corporation evaluates its arrangements with 3rd parties and partners to determine if the Corporation acts as the principal or as an agent. In making this evaluation, management considers if the Corporation obtains control of the product delivered, which is indicated by the Corporation having the primary responsibility for the delivery of the product, having the ability to establish prices or having inventory risk. If the Corporation acts in the capacity of an agent rather than as a principal in a transaction, then the revenue is recognized on a net-basis, only reflecting the fee, if any, realized by the Corporation from the transaction. 4. FUTURE ACCOUNTING POLICIES As of January 1, 2019, the Corporation will be required to adopt IFRS-16 Leases. For lessees applying the new standard, a single recognition and measurement model for leases would be adopted and would require recognition of assets and liabilities for most leases. The standard may be applied retrospectively or by using a modified retrospective approach. Ikkuma is in the process of identifying and gathering contracts impacted by the new standard. It is anticipated that the adoption of IFRS-16 will have an impact on the Corporation s statement of financial position. 5. PETROLEUM AND NATURAL GAS REVENUE The Corporation s major revenue sources are comprised of sales from the production of light oil, natural gas, natural gas liquids ( NGLs ) and sulphur. The sale of these products is recognized when control of the product transfers to the customer and the cash collection is reasonably probable, upon delivery of the product. The sale of produced commodities are under contracts of varying terms of up to one year. Revenues are typically collected on the 25th day of the month following production. Product sales are based on fixed or variable price contracts. Transaction prices for variable priced contracts are based on benchmark commodity prices and other variable factors, including quality differentials and location. Gross Revenue (thousands of dollars) Major product lines Three months ended March 31, 2018 Three months ended March 31, 2017 Light oil $ 1,201 $ 431 Natural gas 19,483 9,380 NGLs 1,173 423 Sulphur 2,809 61 Total petroleum and natural gas revenue $ 24,666 $ 10,295 Ikkuma generates gas processing income for fees charged to third parties provided at facilities where Ikkuma has an ownership interest. This revenue is classified as other income on the condensed interim statement of income (loss) and comprehensive income (loss). 6