PrairieSky Royalty Completes Acquisition of Western Canadian Royalty Assets and Extends Sustainability Loan

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CALGARY, Alberta, December 15, 2021 (GLOBE NEWSWIRE) – PrairieSky Royalty Ltd. (” Prairie Sky “or the” Society “) (TSX: PSK) is pleased to announce that it has completed the previously announced acquisition from Heritage Royalty of over 1.9 million acres of royalty land in Alberta, Saskatchewan and Manitoba (the ” Royal lands ”), Including over 1.7 million net acres of fee simple mining land; and (ii) significant seismic assets complementary to the royalty lands, for a total cash consideration of $ 728 million (the “ Acquisition “). The acquisition has an effective date of December 31, 2021.

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Concurrent with the closing of the acquisition, PrairieSky extended its unsecured sustainable development credit facility (“ SLL credit facility “) to $ 725 million from $ 425 million. The SLL credit facility provides for an authorized increase to $ 800 million, subject to the consent of the lender. The maturity date of the SLL credit facility remains February 28 2025, and pricing and covenants remain unchanged. The extended SLL was used to partially fund the acquisition. The previously announced $ 500 million term loan from TD Securities Inc. (the ” Term loan “) was not used to finance the acquisition and was terminated concurrently with the expansion of the SLL credit facility.

On December 15, 2021, PrairieSky announced that it had completed its binding offer to purchase 17,169,500 common shares at a price of $ 13.40 per common share, for total gross proceeds of approximately $ 230.1 million. dollars (the ” Offer The net proceeds of the offering were used to partially fund the acquisition.

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FORWARD-LOOKING STATEMENTS AND INFORMATION

This press release includes certain statements regarding PrairieSky’s future plans and operations and contains forward-looking statements which we believe provide readers with a better understanding of our business and outlook. The information contained in this press release could differ materially from that anticipated in the forward-looking statements and information. By their nature, forward-looking statements are subject to many risks and uncertainties, some of which are beyond our control, including the impact of general economic conditions, industry conditions, commodity price volatility, lack of pipeline capacity, currency fluctuations, imprecision of estimates of reserves, royalties, environmental risks, taxation, regulations, changes in tax or other legislation, competition from other industry players, lack of availability of qualified personnel or management, stock market volatility and our ability to access sufficient internal and external sources of capital. In addition, PrairieSky is subject to numerous risks and uncertainties relating to acquisitions. These risks and uncertainties include the risks associated with the possibility of disputes arising with counterparties and the limited ability to collect indemnification under certain agreements. The foregoing and other risks are described in more detail in PrairieSky’s MD&A, PrairieSky’s Annual Information Form for the year ended December 31, 2020 and PrairieSky’s final short form prospectus dated December 10, 2021 in the with respect to the Offering, under the headings “Risk Management” and “Risk Factors”, respectively, each available at www.sedar.com.

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Further, any forward-looking statements are made only as of the date of this press release, and PrairieSky assumes no obligation to update or revise any forward-looking statements or statements to reflect events or circumstances after the date to which such a statement is made or to reflect the occurrence of unforeseen events, except as required by applicable securities laws. New factors emerge from time to time, and it is not possible for PrairieSky to predict all of these factors or to assess in advance the impact of each of these factors on PrairieSky’s business or the extent to which a factor, or a combination of factors, may cause actual results to differ materially from those contained in forward-looking statements.

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The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

ABOUT PRAIRIESKY ROYALTY LTD.

PrairieSky is a royalty-based company, generating royalty revenue as oil and natural gas are produced from its properties. PrairieSky has a diverse portfolio of properties that have a long history of generating operating funds and representing the largest and most concentrated independently owned fee simple mining title position in Canada. PrairieSky’s common shares trade on the Toronto Stock Exchange under the symbol PSK.

FOR MORE INFORMATION, PLEASE CONTACT:

Andrew Phillips
President and CEO
PrairieSky Royalty Ltd.
(587) 293-4005

Pamela Kazeil
Vice-President, Finance and Chief Financial Officer
PrairieSky Royalty Ltd.
(587) 293-4089

Investor Relations
(587) 293-4000
www.prairiesky.com

PDF available: http://ml.globenewswire.com/Resource/Download/9889dda4-3ad5-4cb7-97db-7a668ad09343

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