Perpetual Energy Inc. announced that it has further extended the acceptance date for its previously announced proposal to exchange all of its 8.75% senior notes due March 15, 2018 and its 8.75% senior notes due July 23, 2019 for new 8.75% senior notes having an extended maturity date. The Note Exchange Proposal is now open for acceptance by holders of Existing Senior Notes until 5:00 p.m. (Toronto time) on January 23, 2017, or such later time and date on which the Note Exchange Proposal may be extended by Perpetual. It has been extended to provide additional time for holders of Existing Senior Notes who have not already tendered their Existing Senior Notes to participate in the Note Exchange Proposal. The completion of the Note Exchange Proposal is no longer conditional upon Noteholders holding in the aggregate at least $20 million aggregate principal amount of the issued and outstanding Existing Senior Notes accepting the Note Exchange Proposal and tendering their Existing Senior Notes prior to the Expiry Time on the Expiry Date. As of the date hereof, an aggregate of $17.4 million principal amount of Existing Senior Notes have been irrevocably tendered to the Note Exchange Proposal, consisting of $8.4 million principal amount of 2018 Senior Notes and $9.0 million principal amount of 2019 Senior Notes. On the Expiry Date, Perpetual will exchange the Tendered Notes and any additional Existing Senior Notes that are tendered on or prior to the Expiry Time on the Expiry Date for Exchange Senior Notes. Holders of Existing Senior Notes who elect to participate in the Note Exchange Proposal will receive $1,000 principal amount of Exchange Senior Notes for each $1,000 principal amount of Existing Senior Notes properly tendered to the Note Exchange Proposal. The Exchange Senior Notes will contain the same terms as the Existing Senior Notes other than now having: (i) an extended maturity date to January 23, 2022 (being five years from the Expiry Date of the Note Exchange Proposal); (ii) an increased annual interest rate for the first year, and only for the first year, that the Exchange Senior Notes are outstanding of 9.75% instead of 8.75%, which is equal to the equivalent of $10 per $1,000 principal amount of Existing Senior Notes validly tendered under the Note Exchange Proposal; and (iii) consequential changes to the interest payment dates and optional redemption provisions to give effect to the extended maturity date and increased annual interest rate for the first year that the Exchange Senior Notes are outstanding. Holders of Existing Senior Notes who accept and validly tender their Existing Senior Notes to the Note Exchange Proposal will also receive accrued and unpaid interest outstanding up to, but excluding, the Expiry Date. In particular, holders of 2018 Senior Notes who tender their 2018 Senior Notes to the Note Exchange Proposal will receive $31.16 per $1,000 principal amount of 2018 Senior Notes in cash. All holders of 2019 Senior Notes will receive their semi-annual interest payment of $43.75 per $1,000 principal amount of 2019 Senior Notes in cash regardless of whether or not they tender their 2019 Senior Notes to the Note Exchange Proposal. In each case the payments represent all accrued and unpaid interest outstanding up to, but excluding, the Expiry Date of January 23, 2017. There is currently outstanding $36.0 million aggregate principal amount of 2018 Senior Notes and $24.6 aggregate principal amount of 2019 Senior Notes. Assuming no additional Existing Senior Notes are properly tendered to the Note Exchange Proposal before the Expiry Time on the Expiry Date there will be $27.6 million aggregate principal amount of 2018 Senior Notes and $15.6 million aggregate principal amount of 2019 Senior Notes remaining outstanding and $17.4 million aggregate principal amount of Exchange Senior Notes outstanding upon completion of the Note Exchange Proposal.