Prairie Provident Resources : August 2023 Presentation

Re-Positioning to Unlock

Significant Value for

Shareholders

TSX: PPR

Annual General Meeting

August 23 2023

Corporate Overview

Prairie Provident Resources | June 2023

CORPORATE SUMMARY

Production (Q4 2022) (boe/d)		3,753
Production (H1 2023) (boe/d)		3,648
Production mix		63% Liquids
Reserves (2P)(1)		31.9MMboe
Reserve Life Index (2P)(1)		20.1 years
PDP decline(1)		3.9%
Tax pools(2)		~$851MM
MARKET SUMMARY
Shares outstanding(3)		715.3MM
Market capitalization(3)(4)		$88.1 MM
Net Debt(5)		$77.6MM
Enterprise value(6)		$160.9MM

Low Decline Asset Base with long reserve life & significant upside potential through waterflooding

Large Inventory of Economic drilling in

Princess, Michichi, Evi and Provost core areas

Experienced Executive,

Technical Team, and

Board of Directors

Evi

Provost Michichi/Wheatland

Princess

2

(1)	Based on YE 2022 independent reserves evaluation by Sproule Associates Limited effective December 31, 2022.
(2)	As at December 31, 2022.
(3)	Based on outstanding share count (fully diluted) as at June 30, 2023;
(4)	Calculated using PPR's TSX closing price of $0.085 per share on June 1, 2023.	TSX: PPR
(5)	June 30, 2023 Net Debt calculated using total borrowings outstanding less working capital. Working capital is calculated as current assets less accounts payable and accrued liabilities
(6)	Based on outstanding share count (fully diluted) and pro forma Net Debt. Refer to footnotes (3), (4), and (5) above.

Recent Recapitalization

Prairie Provident Resources | June 2023

• PPR has recently executed a recapitalization that has significantly improved its balance sheet
• Summary:
• • Unsecured notes converted to equity
  • New $5 million 2nd lien notes
  • Equity raise of $4 million
  • Secured credit facility extended to 07/01/2024
• Benefits:
• • Pro forma leverage reduced from $137 million (YE 2022) to $72 million (Q2 2023)
  • Expected interest savings of over $6 million per year

• Improved liquidity and flexibility

3

Pro Forma Recapitalization Overview

Significantly improves balance sheet health

	Transaction &	PPR
PPR	H1 2023	Pro Forma
Dec. 31	Adjustments(1)	Jun. 30

Prairie Provident Resources | June 2023

Basic Shares Outstanding(2)	130.1	585.2		715.3
Existing Warrants	34.3	(34.3)	(3)	-
New Equity Financing Warrants	-	48.0		48.0
Options	2.8	0.2		3.0
FD Shares Outstanding (MM Sh.)	167.2	599.1		766.7
Market Capitalization(4) ($MM)	$19.2	$68.9		$88.1
Revolving Facility	$66.8	($0.6)		$66.2
Unsecured Notes	$69.9	($69.9)		-
New 2nd Lien	-	$4.9		$4.9
Total Borrowings Outstanding	$136.8	($65.7)		$71.7
Plus: Working Capital(5)	($11.1)		$4.6		($6.5)
Net Debt (6)($MM)	$147.8		($70.2)		$77.6

Net Debt ($MM)

$200
$150	$148
$100		$78
$50
$0
	Current	Pro Forma

4

1. US$3.65MM issuance of second lien notes, Prudential's unsecured notes converted at $0.14 per share, and $4.0MM equity financing at $0.09 per unit. Excludes transaction costs.
2. Based on outstanding share count (basic) as at December 31, 2022 and June 30, 2023.
3. Assumes exercise of Prudential's existing warrants as part of conversion of unsecured notes.

(4)	Calculated using August 18, 2023 closing share price ($0.115) multiplied by fully diluted shares outstanding.	TSX: PPR
(5)	Calculated as current assets less accounts payable and accrued liabilities
(6)	Converted using the month end exchange rate of $1.00 USD to $1.35 CAD as at June 30, 2023 and $1.00 USD to $1.32 CAD as at June 30, 2023

Pro Forma Investment Highlights

Prairie Provident Resources | June 2023

• Significantly reducing debt/leverage to enhance shareholder value with Prudential becoming a major shareholder in support of our strategy
• Capital program will be focused on optimization and efficiency
• Low risk in-fill drilling to enhance existing properties
• Wide breadth of growth opportunities from deep inventory of drill ready locations

5(1) Pro forma fully diluted 766.7 million shares outstanding following conversion of Prudential's unsecured notes, exercise of Prudential's warrants and $4MM equity financing.

TSX: PPR