Corporate Presentation February 2018

PrairieSky Royalty Snapshot

1

(1) Based on 236.0 million common shares outstanding as at December 31, 2017 and closing share price on the TSX of $32.06 on December 29, 2017, less PrairieSky’s cash balance.

TSX

PSK$7.5 Billion Enterprise Value(1)

Annual Dividend

$0.78 Per Common Share

236.0 Million Shares Outstanding

$50 Million NCIB

7.8 MillionAcres of Fee Lands

NW NE

SW SE

7.5 MillionAcres of GORR Lands

4Provinces

PositiveWorking capital

No Debt

Introduction to PrairieSky Royalty

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7.8 million acres of Fee Lands(1)

7.5 million acres of GORR lands(1)

Lands located throughout the heart of the oil and gas producing basins in Alberta, British Columbia, Saskatchewan and Manitoba

License to ~13,000 km2 of 3D seismic

and ~45,000 km of 2D seismic

Business model supports dividend payments

Operating margin(2) of 98%

Operating netback(2) of 86%No debt

Low risk revenue base

No capital commitments,operating costs, abandonment liabilitiesor reclamation charges associated withworking interest ownership

Over 75% of royalty revenue receivedfrom Fee lands(3)

Experienced team aligned with shareholder interests

Management team with an unparalleled understanding of the value of royalties

Technical team with deep experiencein Western Canada

Focused staff, all of whom have investedin PrairieSky shares

Directors and officers ownership of 2.4 million shares

(1) Fee Lands refer to lands with Petroleum and/or Natural Gas rights and exclude 1.1 million acres of Coal Only rights. GORR lands include GRT and Crown Interest Lands(2) For the year ended December 31, 2017. Operating margin represents royalty revenue less production & mineral tax expense. Operating netback represents operating margin less G&A expense.(3) For the year ended December 31, 2017.

NW NE

SW SE

Types of Royalties

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The following figure outlines the royalty hierarchy. As you move down the royalty hierarchy, costs increase andduration decreases.

Crown Royalties

Fee Simple Mineral Title -PrairieSky owns 7.8 million acres

Gross Overriding Royalties -PrairieSky owns 7.5 million acres

Streams

Net Profit Interest

Volumetric Production Payment

Working Interest

Royalty Advantage

Ownership in PrairieSky provides a long duration cash flow stream and the optionality associated with perpetual land title ownership.

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Exposure to: No exposure to:High margin cash flow streams Capital costs

New discovery/exploration optionality Environmental liabilities

Commodity price optionality Operations

Secondary and tertiary recoveries Operating costs

Shale opportunities

Technological advancements

Ownership in 12 million leasable, undeveloped acres

Higher Margin, Lower Risk

5

(1) Excludes the impact of Other Revenues (eg, lease rentals, bonus consideration, etc.). For the year ended December 31, 2017.(2) Excluding acquisitions and net change in future development capital.(3) Operating margin is calculated as average realized price ($/boe), less Production & Mineral Tax expense ($/boe), divided by the average realized price ($/boe).

Amounts per boe for PrairieSky Royalty are for the year ended December 31, 2017.

Margin Summary ($/boe)

Illustrative Working Interest Operator PrairieSky Royalty

PrairieSky Royalty offers higher margins than conventional working interest production

Providing the same revenue per boe, a royalty barrel realizes significantly higher margins than working interest models

No abandonment or environmental liabilities

No capital spending requirements

Incurred by Working Interest

Operators

Operating Margin (Including F&D)

Revenue (52% Gas Production)(1)

$28.84/boe

Operating / Transportation Costs

($10.25/boe)

F&D(2)

($10.00/boe)

$5.14/boe 18% of Revenue

Operating Margin(3)

$28.18/boe

98% of Revenue

Production & Mineral Tax($0.66/boe)

No royalties payable to the Crown on Fee Lands

Royalties($3.45/boe)

Recycling the Land Base

New drilling and production technologies can be utilized to pursue previously underexploited zones

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(1) Held by Production (“HBP”)

The perpetual nature of Fee Lands allows PrairieSky Royalty to continually recycle lands and grow its revenue base.

PrairieSky leases lands by zone – same aerial acreage can be leased separately for multiple zones

At the end of the primary lease term, any lands/rights not held by production revert back to PrairieSky Royalty

PrairieSky Royalty can re-lease to third parties who plan to more actively exploit, explore and/or develop those opportunities

PrairieSky Royalty sets lease terms to ensure the company remains competitive with adjacent Crown or freehold lands

License to ~13,000 km2 of 3D seismic and ~45,000 km of 2D seismic

Production History on our Fee Lands

Additional royalty production is generated on GORR Lands (not included above).

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Historical Gross Production on PSK Fee Lands

Source: Accumap

Cumulative production of 4.3 billion boe

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50,000

100,000

150,000

200,000

250,000

300,000

CD Avg. Oil (bbl/d) CD Avg. Gas (Boe/d)

PrairieSky Royalty Per Share Metrics

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(1)Acres per share based on number of common shares outstanding at December 31, 2017.

-

20,000

40,000

60,000

80,000

IPO Today

Acres per Million Shares(1)

0

20

40

60

80

100

120

140

Production per Million Shares

Revenues Generated from Royalty Properties

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PrairieSky generates revenues through leasing its Fee Lands and its GORR Interests, which includes Royalty Production Revenue, Bonus Consideration and Lease Rental Income.

Royalty Compliance analysis focuses on capturing mispaid royalties through forensic accounting.

Over $40 million in Compliance Revenue collected since IPO.

$-

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

$400.0

2014 2015 2016 2017

$ M

illio

ns

Royalty Production Revenue from Fee Lands Royalty Production Revenue from GORR Interests Bonus Consideration Lease Rental Income Other Income

Compliance revenue is recorded with Royalty Production Revenue from Fee Lands and GORR Interests in the financial statements.

Shareholder Alignment

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Board & Management invested $80 million

in PSK Shares

Decisions focused on core strategy and

creating long-term shareholder value

ShareholderAlignment“Pay for performance”

long-term incentives

All staff are shareholdersand maximize participation

in Employee Stock Purchase Plan

Total Shareholder Return Since IPO

PrairieSky has returned $667 million in dividends and $68 million in share buybacks to shareholders since IPO.

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Total shareholder return from IPO to December 31, 2017 is 27%

The dividend is well below the current, trailing and forward Free Cash Flow yield.

PrairieSky’s current dividend is $0.065 per month, $0.78 per year.

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 $45.00

 $‐

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AE

CO

$ p

er B

OE

& P

SK

Sha

re P

rice

US

$ W

TI p

er B

BL

WTI ($US/bbl) AECO ($/GJ) PSK ($/share)

WTI down 

44%AECO down

48%

Capital-Free Returns and Diversification

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PrairieSky Royalty E&Ps Midstream

Capital-Free Returns No capital investment required

Future embedded royalties and cash flow through perpetual land ownership

No environmental liabilities typically associated with working interests

Technology increases recovery factors and opens up new resource opportunities

x Requires significant capital or acquisitions for growth

x Responsibility for environmental liabilities

Technology increases recovery factors and opens up new resource opportunities

x Requires significant capital for growth

x Requires significant capital for maintenance

x Responsibility for environmental liabilities

Stable/Diversified Asset 15.3 million acres, over 36,000 producing wells, approximately 340 payors

/ x Generally concentrated incertain plays (operator/asset)

x Requires maintenance and facilities capital

Contractual commitments (certainty of fees, volumes)

Capital Structure Positive working capital, nil debt

$45.1 million of cash at December 31, 2017

x Moderate to high leverage x Moderate to high leverage

HIGH QUALITYROYALTIES = OPTIONALITY

Booked Reserves

Future Potential Optionality

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Expansion of productive trends

Material new pool discoveries

Improvements in drilling and completions technologies: incremental recovery via optimized completions, tighter inter-well spacing and additional application of multi-leg horizontal wells

Application of new or expansion of existing waterflood schemes

Application of new or expansion of existing EOR schemes

Well-defined productive trends

Value primarily assigned to infills and step-out drilling locations

Historical average production rate

Only major plays given future value

No value assigned to future waterflood or enhanced oil recovery schemes

Producing wells as of year end 2017

Optionality Beyond Current Valuation

Current Future Potential Valuation

Development of an Economic Resource Play Saskatchewan Viking

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Wells Drilled Before 20102,650 vertical wells drilled (in this map area)36 horizontal wells drilledHorizontal lateral length 1 mile or 0.5 mileDrilling density 4 to 8 wells per sectionMost wells target vertical well development areas

Wells Drilled as of January 2013800 total horizontal wells drilledHorizontal lateral length mostly 0.5 milesDrilling Density 8 to 16 wells per sectionDevelopment extends vertical pool boundaries

Wells Drilled as of April 20172,100 total horizontal wells drilledHorizontal lateral length 0.5 to 1 mileDrilling density 16 to 28 wells per sectionDevelopment is delineating new pool boundaries

PrairieSky Inventory Based on:

16 wellsper section in infill sections

8 wellsper section in offset sections

Central Alberta Duvernay

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Over 1 million acresof royalty lands in an emerging shale resource play.

Duvernay is in early stages of contributing to PrairieSky’s revenues:

Crown land sales totaled $25 million in 2016 and $334 million in 2017.

Potential for significant royalty production growth.

Monthly royaltyproduction revenue of

~$100,000 (65 boe/d), up from ~$25,000 (20 boe/d) in 2016 from a handful of wells.

Collected

~$40 million year to date in lease bonus revenue.

Pembina / Thorsby

Ferrier /Willesden Green Cygnet

Wimborne

Investing in Future Growth Opportunities

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NW NE

SW SE

~600,000acres of 15 year oil sands leases in the Jarvie, Marten Hills and Nipisi areas.

An emerging capital efficient oil play, with scale and large OOIP reservoirs in the Clearwatergroup sands.

PrairieSky has re-invested its cash lease bonus consideration into new emerging oil resource play opportunities to provide liquids growth in the medium to long term.

0 6 Miles0 6 Miles

Diversity in Top Payers

Exposure to various operators with diverse expertise ranging from private companies to Majors

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12 months of Revenue by Top 25 Companies ($MM)

Top25 Payers

Bonavista Energy

Canbriam Energy

Cona Resources

Crescent Point

Encana

Husky Energy

Manitok Energy

Novus Energy

Pine Cliff Energy

Raging River Exploration

TAQA North

Tourmaline Oil

Whitecap Resources

Canadian Natural Resources

Cardinal Energy

Conoco

Ember Resources

Granite Oil

KNOC

NAL Resources

Pengrowth Energy

Prairie Provident

Tamarack Valley

Teine Energy

Venturion Oil

Top 10 payers represent 49%of product revenue, while the top 25 payers represent 72%of product revenue

- 5.0 10.0 15.0 20.0 25.0 30.0 35.0

25242322212019181716151413121110

987654321

10 Year Free Cash Flow Generation

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FX($US / $CAD)

AECO($/Mcf)

WTI($/bbl)

10 Year Average Annual Production (boe/d)

22,000 26,000 28,000 30,000 32,000

10 Year Free Cash Flow (Billions)

0.80 $1.50 $45.00 $1.8 $2.0 $2.1 $2.3 $2.5

0.80 $1.50 $50.00 $1.9 $2.2 $2.3 $2.5 $2.7

0.80 $1.50 $55.00 $2.1 $2.4 $2.5 $2.7 $2.9

0.80 $1.50 $60.00 $2.2 $2.5 $2.7 $3.0 $3.2

0.80 $1.50 $65.00 $2.4 $2.7 $2.9 $3.2 $3.4

2017 free cash flow $290.2 million 2017 royalty production 25,259 boe/d

APPENDIX

Focus on Core Strategies Q4 & 2017

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Land & Royalty Compliance

Lease issuance bonus consideration of $19.0 million in Q4 2017, $67.0 million 2017

Active leasing in 2017, which is a precursor to new exploration and development drilling and future royalty production

In 2017 entered into ~140 new leasing arrangements with over 80 different counterparties

~735 wells spud on PrairieSky lands in 2017

Continued focus on reducing administrative expenses

Cash administrative expenses of $3.00/boein 2017, expected to be in low $3.00/boe range for 2018

PrairieSky has almost tripled its land base since IPO while maintaining headcount and continuing to reduce G&A per boe

Collected $10.6 million in compliance recoveries in 2017

Since IPO, collected more than $40 million in compliance recoveries

Over 300 net sections of land returned to PSK inventory in 2017

PrairieSky pursues acquisitions that are accretive on a per share basis and match the quality and duration of its existing assets

Acquired GORRs on emerging resource plays and other smaller acquisitions within existing cash flows

Managing Controllable Costs

Leasing Lands

Accretive Acquisitions

Financial Highlights

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$millions, unless otherwise noted

Three months endedDecember 31

Year endedDecember 31

2017 2016 2017 2016

Production Volumes

Natural Gas (Mmcf/d) 75.2 78.2 78.1 74.7

Crude Oil (bbls/d) 9,419 8,583 9,565 8,455

NGLs (bbls/d) 2,454 2,362 2,677 2,403

Total Production (boe/d)(1) 24,406 23,978 25,259 23,308

Financial Information

Revenue 91.5 67.9 345.7 224.2

Funds from Operations 81.1 61.8 290.2 200.2

per Share(2) $0.34 $0.27 $1.23 $0.88

per BOE $36.12 $28.01 $31.48 $23.47

Net Earnings (Loss) 39.9 16.1 120.6 20.0

per Share $0.17 $0.07 $0.51 $0.09

Working Capital 45.7 44.2 45.7 44.2

Cash Balance 45.1 34.0 45.1 34.0

(1) See “Conversions of Natural Gas to boe”.(2) A non-GAAP measure which is defined under Non-GAAP Measures section in our MD&A.

PrairieSky has no debt, no operating expenses, no mandatory capital expenditures and no environmental liabilities.

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Executive Team Board of Directors

James M. Estey, Chair of the BoardRetired Chairman of UBS Securities Canada Inc., and has more than 30 years of experience in financial marketsChairman of Gibson Energy Inc. and a director of New Gold Inc.

Margaret A. McKenzieFormer Vice President, Finance and Chief Financial Officer of Range Royalty and prior thereto was Vice President, Finance and Chief Financial Officer of Profico Energy Management Ltd.Director of Encana Corporation and Inter Pipeline Ltd.

Sheldon SteevesDirector of Enerplus Corporation and NuVista Energy Ltd Previously President & CEO of EchoEx; Executive Vice President & COO at Renaissance Energy Ltd.

Grant A. ZawalskyManaging Partner of Burnet, Duckworth & Palmer LLP (Barristers and Solicitors) On the board of directors of NuVista Energy Ltd., Whitecap Resources Inc. and Zargon Oil & Gas Ltd., and is Corporate Secretary of ARC Resources Ltd., Bonavista Energy Corporation and RMP Energy Inc.

Leadership Team

Senior leadership team offers unique expertise managing royalty assets, significant technical capabilities and broad, long-standing industry relationships.

Andrew M. Phillips, President & CEO / DirectorPreviously, President, CEO & Director of Home Quarter Resources (acquired by a public oil and gas company in 2014)Extensive experience in the oil & gas industry with past senior roles at Evolve Exploration, Profico Energy Management and Renaissance Energy

Cameron M. Proctor, Chief Operating OfficerPreviously, EVP, Chief Legal Officer and Director of Sinopec Canada and prior thereto VP, General Counsel and Corporate Secretary of Daylight Energy Former lawyer with Blake, Cassels & Graydon LLP

Pam Kazeil, VP Finance & Chief Financial OfficerPreviously, EVP and Chief Financial Officer of Sinopec Canada and prior thereto VP, Finance of Daylight Energy Formerly VP Finance of Sword Energy Ltd. and held increasingly senior roles at its predecessor, Thunder Energy Trust, including VP Finance and CFO

Michelle Radomski, VP LandPreviously, VP Land at Range Royalty Management Ltd. with over 30 years of experience in the oil & gas industryPast President of the Canadian Association of Petroleum Landmen

Disclaimer & Cautionary Statements

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Cautionary Statement on Forward Looking InformationThis presentation 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 respectto future events or future performance; management’s expectations regarding PrairieSky’s growth and realization of future value from the Royalty Properties; results of operations of third parties active onthe Royalty Properties; estimated future revenues; future dividends and share buybacks; production estimates; costs and revenue; future demand for and prices of commodities; business prospects; futureapplication of EOR schemes and other secondary and tertiary recovery methods to improve recovery factors on the Royalty Properties; expectations regarding downspacing and infill drilling; expectationsregarding continued improvement in technology and application of new drilling and completion techniques, including application of horizontal drilling in areas otherwise largely delineated with vertical wells;expectations regarding ongoing and continued activity levels on the Royalty Properties; estimated historical capital spent on the Royalty Properties and capital efficiencies related thereto, and future capitalspend on the Royalty Properties; expectations regarding new discoveries and the contribution to the reserves, production and financial results of the Company; expectations regarding historical and futureoptimization efforts on certain plays and the resulting effect on declines in production; PrairieSky’s ability to lease large amounts of land, and its corresponding ability to attract associated bonusconsideration revenue and capital spent on the Royalty Properties; expectations that data from drilling activities will lead to exploitation of additional zones and substances that were not otherwise targeted;and expectations regarding the future development on the Company’s Duvernay and Clearwater land positions, including expectations that they will add significant growth to royalty revenue and productionover time; and the prospectivity of lands that are not included in this presentation and the Company’s expectations regarding the same. Such forward looking statements reflect management’s currentbeliefs 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 beidentified 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 PrairieSky to be materially different from any future results, performance or achievements expressed orimplied 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 theprices 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 taxationpolicies and the enforcement thereof; regulatory and political or economic developments in any of the jurisdictions where properties in which PrairieSky holds a royalty interest are located; risks related tothe operators of the properties in which PrairieSky holds a royalty interest, including changes in the ownership and control of such operators; influence of macroeconomic developments; businessopportunities that become available to, or are pursued by PrairieSky; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in whichPrairieSky holds a royalty interest; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the properties in which PrairieSky holds a royaltyinterest; actual hydrocarbon content may differ from the reserves and resources contained in technical reports; rate and timing of production differences from resource estimates and other technical reports;risks and hazards associated with the business of exploration and development on any of the properties in which PrairieSky holds a royalty interest, including, but not limited to unusual or unexpectedgeological conditions, natural disasters, terrorism, civil unrest or a political change; and the integration of acquired assets. The statements contained in presentation are based upon assumptionsmanagement believes to be reasonable, including, without limitation: the ongoing operation of the properties in which PrairieSky holds a royalty interest by the owners or operators of such properties in amanner 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 disclosuresmade by the operators on the Royalty Properties; no material adverse change in the market price of the commodities that underlie the asset portfolio; no material changes to existing tax treatment; noadverse development in respect of any significant property in which PrairieSky holds a royalty interest; the accuracy of publicly disclosed expectations for the development of underlying properties that arenot yet in production; integration of acquired assets; the accuracy of assumptions and information used in PrairieSky’s internal assessments of its Royalty Properties and the prospectivity thereof, includingwith 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 assurancethat 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 forwardlooking statements are not guarantees of future performance. PrairieSky cannot assure investors that actual results will be consistent with these forward looking statements. Accordingly, investors shouldnot place undue reliance on forward looking statements due to the inherent uncertainty therein. For additional information with respect to risks, uncertainties and assumptions, please refer to the “RiskFactors” section of our most recent AIF filed with the Canadian securities regulatory authorities available at www.sedar.com and on our website at www.prairiesky.com. The forward looking statementsherein are made as of December 31, 2017 only and PrairieSky does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results orotherwise, except as required by applicable law.

Cautionary Statement Regarding Future-Oriented Financial InformationThis presentation also contains future-oriented financial information and financial outlook information (collectively, "FOFI") about our prospective results, funds from operations, future development of theRoyalty Properties, future drilling locations, future reserve additions and in each case values associated therewith, all of which are subject to the same assumptions, risk factors, limitations, andqualifications as set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to beimprecise and, as such, undue reliance should not be placed on FOFI and forward-looking statements. PrairieSky’s actual results, performance, realization or achievement of anticipated values could differmaterially from those expressed in, or implied by, these forward-looking statements and FOFI, or if any of them do so, what benefits PrairieSky will derive therefrom. PrairieSky has included the forward-looking statements and FOFI in this presentation in order to provide readers with a more complete perspective on PrairieSky’s future value proposition and future development potential and suchinformation may not be appropriate for other purposes. PrairieSky disclaims any intention or obligation to update or revise any forward-looking statements or FOFI, whether as a result of new information,future events or otherwise, except as required by law.

Other Disclosure

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NON-GAAP MEASURESCertain measures in this presentation do not have any standardized meaning as prescribed by IFRS and therefore, are considerednon-GAPP measures. These measures may not be comparable to similar measures presented by other issuers. These measuresare commonly used in the oil and gas industry and by the Company to provide potential investors with additional informationregarding the Company’s liquidity and its ability to generate funds to finance its operations. Non-GAPP measures include FreeCash Flow which is defined as Funds from Operations, a GAAP measure used in PrairieSky Royalty’s Management Discussion &Analysis and Audited Annual Consolidated Financial Statements and notes thereto for the year ended December 31, 2017, whichare available on SEDAR at www.sedar.com or PrairieSky Royalty’s website at www.prairiesky.com.

CONVERSIONS OF NATURAL GAS TO BOETo provide a single unit of production for analytical purposes, natural gas production and reserves volumes are convertedmathematically to equivalent barrels of oil (boe). We use the industry-accepted standard conversion of six thousand cubic feet ofnatural gas to one barrel of oil (6 Mcf = 1 bbl). The 6:1 boe ratio is based on an energy equivalency conversion method primarilyapplicable at the burner tip. It does not represent a value equivalency at the wellhead and is not based on either energy content orcurrent prices. While the boe ratio is useful for comparative measures and observing trends, it does not accurately reflectindividual product values and might be misleading, particularly if used in isolation. As well, given that the value ratio, based on thecurrent price of crude oil to natural gas, is significantly different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratiomay be misleading as an indication of value.

CURRENCY AND REFERENCES TO PRAIRIESKY ROYALTYAll information included in this presentation is shown on a Canadian dollar basis.For convenience, references in this document to the “Company”, “we”, “us”, “our”, and “its” may, where applicable, refer only toPrairieSky Royalty.

PrairieSky Royalty Ltd.1700, 350 – 7 Avenue SWCalgary, AB T2P 3N9587.293.4000

investor.relations@prairiesky.comwww.prairiesky.com

CONTACT