----

| GLOSSARY OF TERMS                                            | 3      |
|--------------------------------------------------------------|--------|
|                                                         |   |
| SPECIAL NOTES TO READER                                      | 4      |
| REGARDING FORWARD-LOOKING STATEMENTS AND RISK FACTORS        | 4      |
| ACCESS TO DOCUMENTS                                          | 5      |
| ABBREVIATIONS AND CONVERSIONS                                | 5      |
|                                                         |   |
| ARC RESOURCES LTD.                                           | 7      |
| GENERAL                                                      | 7      |
| ORGANIZATIONAL STRUCTURE                                     | 7      |
| STRATEGY                                                     | 7      |
| DEVELOPMENT OF OUR BUSINESS                                  | 8      |
| RECENT DEVELOPMENTS                                          | 10     |
|                                                         |   |
| STATEMENT OF RESERVES DATA AND OTHER OIL AND GAS INFORMATION | 11     |
| DISCLOSURE OF RESERVES DATA                                  | 11     |
| FORECAST PRICES AND COSTS                                    | 13     |
| DEFINITIONS AND NOTES TO RESERVES DATA TABLES                | 14     |
| RECONCILIATIONS OF CHANGES IN RESERVES                       | 16     |
| FUTURE DEVELOPMENT COSTS                                     | 17     |
| UNDEVELOPED RESERVES                                         | 18     |
| SIGNIFICANT FACTORS OR UNCERTAINTIES AFFECTING RESERVES DATA | 19     |
| FURTHER INFORMATION RESPECTING ABANDONMENTS OBLIGATIONS      | 20     |
| CORE OPERATING AREAS                                         | 21     |
| CONTINGENT RESOURCE ESTIMATES                                | 24     |
| OIL AND GAS WELLS                                            | 24     |
| PROPERTIES WITH NO ATTRIBUTABLE RESERVES                     | 25     |
| FORWARD CONTRACTS                                            | 25     |
| TAX HORIZON                                                  | 26     |
| CAPITAL EXPENDITURES                                         | 26     |
| EXPLORATION AND DEVELOPMENT ACTIVITIES                       | 27     |
| PRODUCTION ESTIMATES                                         | 27     |
| PRODUCTION HISTORY                                           | 28     |
| MARKETING ARRANGEMENTS                                       | 29     |
| CORPORATE SOCIAL RESPONSIBILITY                              | 30     |
|                                                         |   |
| SHARE CAPITAL OF ARC RESOURCES                               | 31     |
| COMMON SHARES                                                | 31     |
| PREFERRED SHARES                                             | 31     |
|                                                         |   |
| OTHER INFORMATION RELATING TO OUR BUSINESS                   | 32     |
| BORROWING                                                    | 32     |
| STOCK DIVIDEND PROGRAM AND DIVIDEND REINVESTMENT PLAN        | 33     |
|                                                         |   |
| DIRECTORS AND EXECUTIVE OFFICERS                             | 34     |
| MEMBERSHIP OF BOARD COMMITTEES                               | 36     |
| OFFICER BIOGRAPHIES                                          | 36     |
|                                                         |   |
| AUDIT COMMITTEE DISCLOSURES                                  | 39     |
| MEMBERS OF THE AUDIT COMMITTEE                               | 39     |
| PRINCIPAL ACCOUNTANT FEES AND SERVICES                       | 39     |
|                                                         |   |
| CONFLICTS OF INTEREST                                        | 41     |
|                                                         |   |
| INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS   | 42     |
|                                                         |   |
| DIVIDENDS AND DISTRIBUTIONS                                  | 42     |

----

| DIVIDEND POLICY                                                                                        | 42     |
|--------------------------------------------------------------------------------------------------------|--------|
| DIVIDEND HISTORY                                                                                       | 42     |
|                                                                                                   |   |
| MARKET FOR SECURITIES                                                                                  | 43     |
|                                                                                                   |   |
| INDUSTRY CONDITIONS                                                                                    | 44     |
| PRICING AND MARKETING                                                                                  | 44     |
| THE NORTH AMERICAN FREE TRADE AGREEMENT                                                                | 44     |
| ROYALTIES AND INCENTIVES                                                                               | 45     |
| LAND TENURE                                                                                            | 46     |
| PRODUCTION AND OPERATION REGULATIONS                                                                   | 46     |
| ENVIRONMENTAL REGULATION                                                                               | 46     |
| LIABILITY MANAGEMENT RATING PROGRAMS                                                                   | 48     |
| CLIMATE CHANGE REGULATION                                                                              | 49     |
|                                                                                                   |   |
| RISK FACTORS                                                                                           | 52     |
| RISKS RELATING TO OUR BUSINESS AND OPERATIONS                                                          | 52     |
| ADDITIONAL RISK FACTORS APPLICABLE TO RESIDENTS OF THE UNITED STATES AND OTHER NON-RESIDENTS OF CANADA | 60     |
|                                                                                                   |   |
| TRANSFER AGENT AND REGISTRAR                                                                           | 61     |
|                                                                                                   |   |
| MATERIAL CONTRACTS                                                                                     | 61     |
|                                                                                                   |   |
| INTEREST OF EXPERTS                                                                                    | 62     |
|                                                                                                   |   |
| ADDITIONAL INFORMATION                                                                                 | 62     |
|                                                                                                   |   |
| APPENDIX A Form 51 101F2                                                                               | 63     |
|                                                                                                   |   |
| APPENDIX B  REPORT OF MANAGEMENT AND DIRECTORS ON RESERVES DATA AND OTHER INFORMATION             | 65     |
|                                                                                                   |   |
| APPENDIX C CONTINGENT RESOURCE ESTIMATES                                                               | 66     |
|                                                                                                   |   |
| APPENDIX D MANDATE OF THE AUDIT COMMITTEE (April 28, 2016)                                             | 72     |

----

Table of Contents

| GLOSSARY OF TERMS |
|-------------------|

----

Table of Contents

| SPECIAL NOTES TO READER |
|-------------------------|

----

Table of Contents

| Oil and NGLs |                                                                          |
|--------------|-------------------------------------------------------------------------------|
| bbl          | barrel                                                                        |
| Mbbl         | thousand barrels                                                              |
| MMbbl        | million barrels                                                               |
| bbl/d        | barrels per day                                                               |
| NGLs         | natural gas liquids                                                           |
| Natural Gas  |                                                                          |
| Mcf          | thousand cubic feet                                                           |
| Mcf/d        | thousand cubic feet per day                                                   |
| MMcf         | million cubic feet                                                            |
| MMcf/d       | million cubic feet per day                                                    |
| Bcf          | billion cubic feet                                                            |
| Bcfe         | billion cubic feet equivalent                                                 |
| Tcf          | trillion cubic feet                                                           |
| MMBtu        | million British thermal units                                                 |
| Other        |                                                                          |
| API          | Indication of specific gravity of crude oil measured on the API gravity scale |
| boe          | barrels of oil equivalent                                                     |
| boe/d        | barrels of oil equivalent per day                                             |
| GJ           | gigajoules                                                                    |
| Mboe         | thousand barrels of oil equivalent                                            |
| $MM          | million dollars                                                               |

----

Table of Contents

| To Convert From | To           | Multiply By |
|-----------------|--------------|-------------|
| cubic metres    | cubic feet   | 35.315      |
| barrels         | cubic metres | 0.159       |
| cubic metres    | barrels      | 6.290       |
| feet            | metres       | 0.305       |
| metres          | feet         | 3.281       |
| miles           | kilometres   | 1.609       |
| kilometres      | miles        | 0.621       |
| acres           | hectares     | 0.4047      |
| hectares        | acres        | 2.471       |

----

Table of Contents

| **ARC RESOURCES LTD.** |
|------------------------|

----

Table of Contents

|   | (1) | Net debt and total capitalization are non-generally accepted accounting principles ("GAAP") measures which may not be comparable to similar additional GAAP measures used by other entities. For more information, see the section entitled "Non-GAAP Measures" contained within our Management's Discussion and Analysis for the year ended December 31, 2016, which note is incorporated in this Annual Information Form by reference and is found on our SEDAR profile at www.sedar.com. Also refer to the "Funds from Operations" section within the Management's Discussion and Analysis for a reconciliation of ARC's net income to funds from operations and cash flow from operating activities, which note is also incorporated into this Annual Information Form and can also be found on our SEDAR profile at www.sedar.com. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

----

Table of Contents

| STATEMENT OF RESERVES DATA AND OTHER OIL AND GAS INFORMATION |
|--------------------------------------------------------------|

----

Table of Contents

| Company GrossReserves                         |   | Light Crude Oil and Medium Crude Oil(Mbbl) |   | Heavy Crude Oil(Mbbl) |   |   | Tight Oil(Mbbl) |   |   | Total Oil (Mbbl) |   |   | Conventional Natural Gas (Bcf) |    |   | Shale Gas (Bcf) |   |   | Total Gas(Bcf) |   |   | NGLs (Mbbl) (1) |   |   | Total Oil Equivalent(Mboe) |    |
|-----------------------------------------------|--------|--------------------------------------------|--------|-----------------------|--------|--------|-----------------|--------|--------|------------------|--------|--------|--------------------------------|---------|--------|-----------------|--------|--------|----------------|--------|--------|-----------------|--------|--------|----------------------------|---------|
| PROVED                                        |   |                                       |   |                  |   |   |            |   |   |             |   |   |                           |    |   |            |   |   |           |   |   |            |   |   |                       |    |
| Developed  Producing                |   |                                       | 51,611 |                  |   | 1,648  |            |   |   | 13,697           |   |   |                           | 66,956  |   |            |   | 69.0   |           |   |   | 725.1           |   |   |                       | 794.1   |   |   |   | 13,040 |   |   |   | 212,341 |   |
| Developed  Non-Producing            |   |                                       | 728    |                  |   | -      |            |   |   | 853              |   |   |                           | 1,581   |   |            |   | 2.3    |           |   |   | 48.3            |   |   |                       | 50.6    |   |   |   | 916 |   |   |   | 10,930 |   |
| Undeveloped                                   |   |                                       | 6.088  |                  |   | 80     |            |   |   | 14,078           |   |   |                           | 20,247  |   |            |   | 8.1    |           |   |   | 941.8           |   |   |                       | 949.8   |   |   |   | 24,108 |   |   |   | 202,656 |   |
| TOTAL  PROVED                       |   |                                       | 58,427 |                  |   | 1,728  |            |   |   | 28,628           |   |   |                           | 88,783  |   |            |   | 79.4   |           |   |   | 1,715.1         |   |   |                       | 1,794.5 |   |   |   | 38,064 |   |   |   | 425,927 |   |
| Probable                                      |   |                                       | 19,024 |                  |   | 556    |            |   |   | 15,633           |   |   |                           | 35,213  |   |            |   | 27.5   |           |   |   | 1,425.4         |   |   |                       | 1,452.9 |   |   |   | 33,440 |   |   |   | 310,806 |   |
| TOTAL  PROVED +  PROBABLE |   |                                       | 77,451 |                  |   | 2,284  |            |   |   | 44,261           |   |   |                           | 123,996 |   |            |   | 106.9  |           |   |   | 3,140.5         |   |   |                       | 3,247.4 |   |   |   | 71,504 |   |   |   | 736,733 |   |
|                                          |   |                                       |   |                  |   |   |            |   |   |             |   |   |                           |    |   |            |   |   |           |   |   |            |   |   |                       |    |   |   |   |   |   |   |   |   |   |
| Company NetReserves                           |   | Light Crude Oil and Medium Crude Oil(Mbbl) |   | Heavy Crude Oil(Mbbl) |   |   | Tight Oil(Mbbl) |   |   | Total Oil (Mbbl) |   |   | Conventional Natural Gas (Bcf) |    |   | Shale Gas (Bcf) |   |   | Total Gas(Bcf) |   |   | NGLs (Mbbl) (1) |   |   | Total Oil Equivalent(Mboe) |    |
| PROVED                                        |   |                                       |   |                  |   |   |            |   |   |             |   |   |                           |    |   |            |   |   |           |   |   |            |   |   |                       |    |   |   |   |   |   |   |   |   |   |
| Developed  Producing                |   |                                       | 47,420 |                  |   | 1,770  |            |   |   | 12,263           |   |   |                           | 61,453  |   |            |   | 64.0   |           |   |   | 608.6           |   |   |                       | 672.6   |   |   |   | 10,247 |   |   |   | 183,800 |   |
| Developed  Non-Producing            |   |                                       | 644    |                  |   | 0      |            |   |   | 750              |   |   |                           | 1,394   |   |            |   | 2.0    |           |   |   | 42.6            |   |   |                       | 44.6    |   |   |   | 761 |   |   |   | 9,591 |   |
| Undeveloped                                   |   |                                       | 5,682  |                  |   | 76     |            |   |   | 12,238           |   |   |                           | 17,995  |   |            |   | 7.7    |           |   |   | 791.8           |   |   |                       | 799.5   |   |   |   | 20,625 |   |   |   | 171,865 |   |
| TOTAL  PROVED                       |   |                                       | 53,746 |                  |   | 1,845  |            |   |   | 25,251           |   |   |                           | 80,843  |   |            |   | 73.7   |           |   |   | 1,443.0         |   |   |                       | 1,516.7 |   |   |   | 31,634 |   |   |   | 365,256 |   |
| Probable                                      |   |                                       | 16,462 |                  |   | 565    |            |   |   | 13,409           |   |   |                           | 30,435  |   |            |   | 25.6   |           |   |   | 1,163.2         |   |   |                       | 1,188.8 |   |   |   | 27,723 |   |   |   | 256,292 |   |
| TOTAL  PROVED +  PROBABLE |   |                                       | 70,208 |                  |   | 2,410  |            |   |   | 38,660           |   |   |                           | 111,278 |   |            |   | 99.3   |           |   |   | 2,606.2         |   |   |                       | 2,705.5 |   |   |   | 59,356 |   |   |   | 621,548 |   |

| 1) | Natural Gas Liquids includes Associated Natural Gas Liquids for both Conventional and Shale/Tight Reservoirs, and includes condensate, propane and butane. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Before-Tax (1)($ millions)      |   | Undiscounted |   |   | Discountedat 5% |   |   | Discountedat 10% |   |   | Discounted at 15% |   |   | Discountedat 20% |   |
|---------------------------------|--------|--------------|--------|--------|-----------------|--------|--------|------------------|--------|--------|-------------------|--------|--------|------------------|--------|
| PROVED                          |   |         |   |   |            |   |   |             |   |   |              |   |   |             |   |
| Developed Producing             |   |         | 4,626  |   |            |   | 3,296  |             |   |   | 2,585             |   |   |             | 2,148  |   |   |   | 1,852 |   |
| Developed Non-Producing         |   |         | 154    |   |            |   | 116    |             |   |   | 91                |   |   |             | 75     |   |   |   | 63 |   |
| Undeveloped                     |   |         | 2,729  |   |            |   | 1,593  |             |   |   | 982               |   |   |             | 615    |   |   |   | 380 |   |
| TOTAL PROVED                    |   |         | 7,509  |   |            |   | 5,005  |             |   |   | 3,659             |   |   |             | 2,839  |   |   |   | 2,295 |   |
| Probable                        |   |         | 6,531  |   |            |   | 3,451  |             |   |   | 2,174             |   |   |             | 1,519  |   |   |   | 1,134 |   |
| TOTAL PROVED + PROBABLE         |   |         | 14,040 |   |            |   | 8,457  |             |   |   | 5,832             |   |   |             | 4,358  |   |   |   | 3,429 |   |
| After-Tax (1)(2)(3)($ millions) |   |         |   |   |            |   |   |             |   |   |              |   |   |             |   |   |   |   |   |   |
| PROVED                          |   |         |   |   |            |   |   |             |   |   |              |   |   |             |   |   |   |   |   |   |
| Developed Producing             |   |         | 3,827  |   |            |   | 2,786  |             |   |   | 2,218             |   |   |             | 1,863  |   |   |   | 1,619 |   |
| Developed Non-Producing         |   |         | 112    |   |            |   | 84     |             |   |   | 66                |   |   |             | 54     |   |   |   | 45 |   |
| Undeveloped                     |   |         | 2,002  |   |            |   | 1,123  |             |   |   | 647               |   |   |             | 362    |   |   |   | 179 |   |
| TOTAL PROVED                    |   |         | 5,941  |   |            |   | 3,993  |             |   |   | 2,931             |   |   |             | 2,278  |   |   |   | 1,843 |   |
| Probable                        |   |         | 4,778  |   |            |   | 2,511  |             |   |   | 1,565             |   |   |             | 1,079  |   |   |   | 795 |   |
| TOTAL PROVED + PROBABLE         |   |         | 10,719 |   |            |   | 6,504  |             |   |   | 4,496             |   |   |             | 3,358  |   |   |   | 2,638 |   |

| 1) | Future net revenue values are net of estimated abandonment and reclamation for all wells (both existing and undrilled wells) that have been attributed reserves, including those associated with properties moved to held for sale at December 31, 2016.  Additional information related to our estimated share of future environmental and reclamation obligations for the working interest properties (including all abandonment and reclamation costs associated with all existing wells, pipeline, facilities and surface lease reclamations) can be found in ARC's audited financial statements for the year ended December 31, 2016 and the accompanying management's discussion and analysis, which are available on SEDAR at www.sedar.com. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2) | Based on ARC’s estimated tax pools at year-end 2016. |
|----|------------------------------------------------------------|

----

Table of Contents

| 3) | The after-tax net present value of ARC's oil and gas properties presented here reflect the income tax burden on the properties on a stand-alone basis. It does not consider the business-entity-level tax situation, or tax planning. It does not provide an estimate of the net present value at the level of the business entity, which may be significantly different. ARC's audited consolidated financial statements for the year ended December 31, 2016 and the related Management's Discussion and Analysis should be consulted for information at the business entity level. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Reserves Category($ millions)                       |   | Revenue |   |   | Royalties |   |   | Operating Costs |   |   | Development Costs |   |   | Abandonment and Reclamation Costs (1) |   |   | Future Net Revenue before Income Taxes |   |   | Income Taxes |   |   | Future Net Revenue after Income Taxes |   |
|-----------------------------------------------------|--------|---------|--------|--------|-----------|--------|--------|-----------------|--------|--------|-------------------|--------|--------|---------------------------------------|--------|--------|----------------------------------------|--------|--------|--------------|--------|--------|---------------------------------------|--------|
| Proved  Reserves                          |   |    | 17,486 |   |      |   | 2,012  |            |   |   | 5,690             |   |   |                                  | 1,908  |   |                                   |   | 366    |         |   |   | 7,509                                 |   |   |   | 1,568 |   |   |   | 5,941 |   |
| Proved Plus  Probable  Reserves |   |    | 30,448 |   |      |   | 3,885  |            |   |   | 9,305             |   |   |                                  | 2,755  |   |                                   |   | 462    |         |   |   | 14,040                                |   |   |   | 3,322 |   |   |   | 10,719 |   |

| 1) | Reflects estimated abandonment and reclamation for all wells (both existing and undrilled wells) that have been attributed reserves, including those associated with properties moved to held for sale at December 31, 2016. This does not account for pipelines, facilities or surface lease reclamations, or for abandonment and reclamation costs for wells with no attributed reserves. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Reserves Category          | Production Group                         | Future Net RevenueBefore Income Taxes(Discounted at 10% per Year)($ millions) | Per Unit (1) |
|----------------------------|------------------------------------------|-------------------------------------------------------------------------------|--------------|
| Proved Reserves            | Light Crude Oil and Medium Crude Oil (2) | 983                                                                           | $15.33/boe   |
|                       | Heavy Crude Oil (2)(3)                   | 35                                                                            | $18.24/boe   |
|                       | Tight Oil (2)                            | 691                                                                           | $14.81/boe   |
|                       | Conventional Natural Gas (4)             | 26                                                                            | $0.90/Mcfe   |
|                       | Shale Gas (4)                            | 1,924                                                                         | $1.29/Mcfe   |
|                       | Total                                    | 3,659                                                                         | $10.02/boe   |
| Proved + Probable Reserves | Light Crude Oil and Medium Crude Oil (2) | 1,238                                                                         | $14.64/boe   |
|                       | Heavy Crude Oil (2)(3)                   | 43                                                                            | $17.39/boe   |
|                       | Tight Oil 2)                             | 1,185                                                                         | $15.03/boe   |
|                       | Conventional Natural Gas (4)             | 33                                                                            | $0.88/Mcfe   |
|                       | Shale Gas (4)                            | 3,334                                                                         | $1.24/Mcfe   |
|                       | Total                                    | 5,832                                                                         | $9.38/boe    |

| 1) | Unit values are based on Net Reserves. |
|----|----------------------------------------|

| 2) | Including solution gas and other by-products. |
|----|-----------------------------------------------|

| 3) | Per unit revenue positively impacted by a portion of value coming from royalty interest reserves. |
|----|---------------------------------------------------------------------------------------------------|

| 4) | Including by-products but excluding solution gas and other by-products from oil wells. |
|----|----------------------------------------------------------------------------------------|

----

Table of Contents

|       |   | Oil                            |   |   | NaturalGas                                 |   |   | Edmonton Liquids Prices               |   |   |                                    |   |   |                         |   |
|------------|--------|--------------------------------|--------|--------|--------------------------------------------|--------|--------|---------------------------------------|--------|--------|-----------------------------------------|--------|--------|------------------------------|--------|
|       |   | WTI Cushing Oklahoma (US$/bbl) |   |   | Edmonton Par Price 40° API (Cdn$/bbl) |   |   | Hardisty Heavy12° API (Cdn$/bbl) |   |   | Cromer Medium 29.3° API (Cdn$/bbl) |   |   | AECO Gas Price (Cdn$/ MMBtu) |   |   | Propane (Cdn$/bbl) |   |   | Butane (Cdn$/bbl) |   |   | Pentanes Plus (Cdn$/bbl) |   |   | Inflation Rate (1) (%/Year) |   |   | Exchange Rate (2) (US$/Cdn$) |   |
| Forecast   |   |                           |   |   |                                       |   |   |                                  |   |   |                                    |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2017       |   |                           | 55.00  |   |                                       |   | 69.33  |                                  |   |   | 46.69                                   |   |   |                         | 64.48  |   |   |   | 3.46 |   |   |   | 28.43 |   |   |   | 49.92 |   |   |   | 72.11 |   |   |   | 2.0 |   |   |   | 0.750 |   |
| 2018       |   |                           | 59.00  |   |                                       |   | 72.26  |                                  |   |   | 50.40                                   |   |   |                         | 67.20  |   |   |   | 3.10 |   |   |   | 26.74 |   |   |   | 54.19 |   |   |   | 74.79 |   |   |   | 2.0 |   |   |   | 0.775 |   |
| 2019       |   |                           | 64.00  |   |                                       |   | 75.00  |                                  |   |   | 55.03                                   |   |   |                         | 69.75  |   |   |   | 3.27 |   |   |   | 26.25 |   |   |   | 56.25 |   |   |   | 78.75 |   |   |   | 2.0 |   |   |   | 0.800 |   |
| 2020       |   |                           | 67.00  |   |                                       |   | 76.36  |                                  |   |   | 56.96                                   |   |   |                         | 71.02  |   |   |   | 3.49 |   |   |   | 26.73 |   |   |   | 57.27 |   |   |   | 79.80 |   |   |   | 2.0 |   |   |   | 0.825 |   |
| 2021       |   |                           | 71.00  |   |                                       |   | 78.82  |                                  |   |   | 59.95                                   |   |   |                         | 73.31  |   |   |   | 3.67 |   |   |   | 27.59 |   |   |   | 59.12 |   |   |   | 82.37 |   |   |   | 2.0 |   |   |   | 0.850 |   |
| 2022       |   |                           | 74.00  |   |                                       |   | 82.35  |                                  |   |   | 63.43                                   |   |   |                         | 76.59  |   |   |   | 3.86 |   |   |   | 28.82 |   |   |   | 61.76 |   |   |   | 86.06 |   |   |   | 2.0 |   |   |   | 0.850 |   |
| 2023       |   |                           | 77.00  |   |                                       |   | 85.88  |                                  |   |   | 66.99                                   |   |   |                         | 79.87  |   |   |   | 4.05 |   |   |   | 30.06 |   |   |   | 64.41 |   |   |   | 89.32 |   |   |   | 2.0 |   |   |   | 0.850 |   |
| 2024       |   |                           | 80.00  |   |                                       |   | 89.41  |                                  |   |   | 70.48                                   |   |   |                         | 83.15  |   |   |   | 4.16 |   |   |   | 31.29 |   |   |   | 67.06 |   |   |   | 92.99 |   |   |   | 2.0 |   |   |   | 0.850 |   |
| 2025       |   |                           | 83.00  |   |                                       |   | 92.94  |                                  |   |   | 73.63                                   |   |   |                         | 86.44  |   |   |   | 4.24 |   |   |   | 32.53 |   |   |   | 69.71 |   |   |   | 97.59 |   |   |   | 2.0 |   |   |   | 0.850 |   |
| 2026       |   |                           | 86.05  |   |                                       |   | 95.61  |                                  |   |   | 77.54                                   |   |   |                         | 88.92  |   |   |   | 4.32 |   |   |   | 33.46 |   |   |   | 71.71 |   |   |   | 99.91 |   |   |   | 2.0 |   |   |   | 0.850 |   |
| Thereafter |   |                           | (3)    |   |                                       |   | (3)    |                                  |   |   | (3)                                     |   |   |                         | (3)    |   |   |   | (3) |   |   |   | (3) |   |   |   | (3) |   |   |   | (3) |   |   |   | 2.0 |   |   |   | 0.850 |   |

|   | 1) | Inflation rates for forecasting costs. |
|--------|----|----------------------------------------|

|   | 2) | Exchange rates used to generate the benchmark reference prices in this table. |
|--------|----|-------------------------------------------------------------------------------|

|   | 3) | Prices escalate two per cent per year from 2026. |
|--------|----|-------------------------------------------------------|

| 1. | “Gross” means: |
|----|----------------------------|

|  | a) | in relation to our interest in production and reserves, our interest (operating and non-operating) before deduction of royalties and without including any royalty interest to us; |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b) | in relation to wells, the total number of wells in which we have an interest; and |
|--|----|-----------------------------------------------------------------------------------|

|  | c) | in relation to properties, the total area of properties in which we have an interest. |
|--|----|---------------------------------------------------------------------------------------|

| 2. | “Net” means: |
|----|--------------------------|

|  | a) | in relation to our interest in production and reserves, our interest (operating and non-operating) after deduction of royalty obligations, plus our royalty interest in production or reserves; |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | in relation to wells, the number of wells obtained by aggregating our working interest in each of our gross wells; and |
|--------|----|------------------------------------------------------------------------------------------------------------------------|

|   | c) | in relation to our interest in a property, the total area in which we have an interest multiplied by the working interest we owned. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Columns may not add due to rounding. |
|----|--------------------------------------|

| 4. | The forecast price and cost assumptions assumed the continuance of current laws and regulations. |
|----|--------------------------------------------------------------------------------------------------|

| 5. | All factual data supplied to GLJ was accepted as represented. No field inspection was conducted. |
|----|--------------------------------------------------------------------------------------------------|

----

Table of Contents

| 6. | The crude oil, natural gas liquids and natural gas reserves estimates presented in the GLJ Report are based on the definitions and guidelines contained in the CSA Notice 51-324 – Revised Glossary to NI 51-101 Standards of Disclosure for Oil and Gas Activities and the COGE Handbook. A summary of those definitions are set forth below. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | a) | Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b) | Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | a) | Developed reserves are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (for example, when compared to the cost of drilling a well) to put the reserves on production. The developed category may be subdivided into producing and non-producing. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | i) | Developed producing reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ii) | Developed non-producing reserves are those reserves that either have not been on production, or have previously been on production, but are shut-in, and the date of resumption of production is unknown. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b) | Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure is required to render them capable of production. They must fully meet the requirements of the reserves classification (proved, probable) to which they are assigned. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | a) | at least a 90 per cent probability that the quantities actually recovered will equal or exceed the estimated proved reserves; and |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|  | b) | at least a 50 per cent probability that the quantities actually recovered will equal or exceed the sum of the estimated proved plus probable reserves. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                            |   | Light Crude Oil and Medium Crude Oil(Mbbl) |    |   | Heavy Crude Oil(Mbbl) |   |   | Tight Oil(Mbbl) |   |   | Total Oil (Mbbl) |   |   | Conven-tional Natural Gas (Bcf) |    |   | Shale Gas (Bcf) |   |   | Coal Bed Methane (Bcf) |   |   | Total Gas(Bcf) |   |   | NGLs(Mbbl) (1) |   |   | Total Oil Equivalent 2016(Mboe) |   |
|-------------------------------------------------|--------|--------------------------------------------|---------|--------|-----------------------|--------|--------|-----------------|--------|--------|------------------|--------|--------|---------------------------------|---------|--------|-----------------|--------|--------|------------------------|--------|--------|----------------|--------|--------|----------------|--------|--------|---------------------------------|--------|
| PROVED                                          |   |                                       |    |   |                  |   |   |            |   |   |             |   |   |                            |    |   |            |   |   |                   |   |   |           |   |   |           |   |   |                            |   |
| December 31, 2015                               |   |                                       | 73,755  |   |                  |   | 1,336  |            |   |   | 23,769           |   |   |                            | 98,860  |   |            |   | 73.3   |                   |   |   | 1,512.9        |   |   |           | 6.3    |   |                            |   | 1,592.5 |   |   |   | 29,052 |   |   |   | 393,327 |   |
| Discoveries                                     |   |                                       | -       |   |                  |   | -      |            |   |   | -                |   |   |                            | -       |   |            |   | -      |                   |   |   | -              |   |   |           | -      |   |                            |   | - |   |   |   | - |   |   |   | - |   |
| Extensions and  Improved Recovery (2) |   |                                       | 3,141   |   |                  |   | -      |            |   |   | 8,695            |   |   |                            | 11,836  |   |            |   | 2.7    |                   |   |   | 193.7          |   |   |           | -      |   |                            |   | 196.4 |   |   |   | 4,819 |   |   |   | 49,391 |   |
| Technical Revisions                             |   |                                       | 1,203   |   |                  |   | 567    |            |   |   | 1,024            |   |   |                            | 2,794   |   |            |   | 8.1    |                   |   |   | 184.3          |   |   |           | -      |   |                            |   | 192.4 |   |   |   | 7,176 |   |   |   | 42,030 |   |
| Acquisitions                                    |   |                                       | 12,468  |   |                  |   | -      |            |   |   | -                |   |   |                            | 12,468  |   |            |   | 13.9   |                   |   |   | -              |   |   |           | -      |   |                            |   | 13.9 |   |   |   | 573 |   |   |   | 15,352 |   |
| Dispositions                                    |   |                                       | (25,044 | )      |                  |   | -      |            |   |   | -                |   |   |                            | (25,044 | )      |            |   | (10.0  | )                      |   |   | -              |   |   |           | (5.9   | )      |                            |   | (15.9 | ) |   |   | (469 | ) |   |   | (28,161 | ) |
| Economic Factors                                |   |                                       | (586    | )      |                  |   | (37    | )               |   |   | (117             | )      |   |                            | (740    | )      |            |   | (0.3   | )                      |   |   | (11.2          | )      |   |           | -      |   |                            |   | (11.5 | ) |   |   | (208 | ) |   |   | (2,865 | ) |
| Production                                      |   |                                       | (6,511  | )      |                  |   | (138   | )               |   |   | (4,743           | )      |   |                            | (11,392 | )      |            |   | (8.1   | )                      |   |   | (164.6         | )      |   |           | (0.5   | )      |                            |   | (173.3 | ) |   |   | (2,879 | ) |   |   | (43,148 | ) |
| December 31, 2016                               |   |                                       | 58,427  |   |                  |   | 1,728  |            |   |   | 28,628           |   |   |                            | 88,783  |   |            |   | 79.4   |                   |   |   | 1,715.1        |   |   |           | -      |   |                            |   | 1,794.5 |   |   |   | 38,064 |   |   |   | 425,927 |   |
| PROBABLE                                        |   |                                       |    |   |                  |   |   |            |   |   |             |   |   |                            |    |   |            |   |   |                   |   |   |           |   |   |           |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2015                               |   |                                       | 29,661  |   |                  |   | 428    |            |   |   | 17,535           |   |   |                            | 47,623  |   |            |   | 28.7   |                   |   |   | 1,297.8        |   |   |           | 3.1    |   |                            |   | 1,329.7 |   |   |   | 24,292 |   |   |   | 293,524 |   |
| Discoveries                                     |   |                                       | -       |   |                  |   | -      |            |   |   | -                |   |   |                            | -       |   |            |   | -      |                   |   |   | -              |   |   |           | -      |   |                            |   | - |   |   |   | - |   |   |   | - |   |
| Extensions and  Improved Recovery (2) |   |                                       | (3,041  | )      |                  |   | -      |            |   |   | 1,400            |   |   |                            | (1,642  | )      |            |   | (2.6   | )                      |   |   | 183.0          |   |   |           | -      |   |                            |   | 180.3 |   |   |   | 6,642 |   |   |   | 35,053 |   |
| Technical Revisions                             |   |                                       | (574    | )      |                  |   | 144    |            |   |   | (3,262           | )      |   |                            | (3,694  | )      |            |   | 1.4    |                   |   |   | (51.0          | )      |   |           | -      |   |                            |   | (49.7 | ) |   |   | 2,475 |   |   |   | (9,496 | ) |
| Acquisitions                                    |   |                                       | 3,536   |   |                  |   | -      |            |   |   | -                |   |   |                            | 3,536   |   |            |   | 4.0    |                   |   |   | -              |   |   |           | -      |   |                            |   | 4.0 |   |   |   | 166 |   |   |   | 4,375 |   |
| Dispositions                                    |   |                                       | (10,769 | )      |                  |   | -      |            |   |   | -                |   |   |                            | (10,769 | )      |            |   | (3.7   | )                      |   |   | -              |   |   |           | (3.1   | )      |                            |   | (6.8 | ) |   |   | (183 | ) |   |   | (12,085 | ) |
| Economic Factors                                |   |                                       | 211     |   |                  |   | (16    | )               |   |   | (39              | )      |   |                            | 156     |   |            |   | (0.3   | )                      |   |   | (4.3           | )      |   |           | -      |   |                            |   | (4.6 | ) |   |   | 48 |   |   |   | (566 | ) |
| Production                                      |   |                                       | -       |   |                  |   | -      |            |   |   | -                |   |   |                            | -       |   |            |   | -      |                   |   |   | -              |   |   |           | -      |   |                            |   | - |   |   |   | - |   |   |   | - |   |
| December 31, 2016                               |   |                                       | 19,024  |   |                  |   | 556    |            |   |   | 15,633           |   |   |                            | 35,212  |   |            |   | 27.5   |                   |   |   | 1,425.4        |   |   |           | -      |   |                            |   | 1,452.9 |   |   |   | 33,441 |   |   |   | 310,806 |   |
| PROVED PLUS PROBABLE                            |   |                                       |    |   |                  |   |   |            |   |   |             |   |   |                            |    |   |            |   |   |                   |   |   |           |   |   |           |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2015                               |   |                                       | 103,416 |   |                  |   | 1,764  |            |   |   | 41,303           |   |   |                            | 146,483 |   |            |   | 102.0  |                   |   |   | 2,810.7        |   |   |           | 9.4    |   |                            |   | 2,922.1 |   |   |   | 53,343 |   |   |   | 686,851 |   |
| Discoveries                                     |   |                                       | -       |   |                  |   | -      |            |   |   | -                |   |   |                            | -       |   |            |   | -      |                   |   |   | -              |   |   |           | -      |   |                            |   | - |   |   |   | - |   |   |   | - |   |
| Extensions and  Improved Recovery (2) |   |                                       | 100     |   |                  |   | -      |            |   |   | 10,095           |   |   |                            | 10,195  |   |            |   | 0.1    |                   |   |   | 376.7          |   |   |           | -      |   |                            |   | 376.7 |   |   |   | 11,462 |   |   |   | 84,445 |   |
| Technical Revisions                             |   |                                       | 630     |   |                  |   | 711    |            |   |   | (2,238           | )      |   |                            | (897    | )      |            |   | 9.4    |                   |   |   | 133.2          |   |   |           | -      |   |                            |   | 142.7 |   |   |   | 9,652 |   |   |   | 32,535 |   |
| Acquisitions                                    |   |                                       | 16,004  |   |                  |   | -      |            |   |   | -                |   |   |                            | 16,004  |   |            |   | 17.9   |                   |   |   | -              |   |   |           | -      |   |                            |   | 17.9 |   |   |   | 740 |   |   |   | 19,727 |   |
| Dispositions                                    |   |                                       | (35,812 | )      |                  |   | -      |            |   |   | -                |   |   |                            | (35,812 | )      |            |   | (13.7  | )                      |   |   | -              |   |   |           | (9.0   | )      |                            |   | (22.7 | ) |   |   | (652 | ) |   |   | (40,246 | ) |
| Economic Factors                                |   |                                       | (375    | )      |                  |   | (53    | )               |   |   | (156             | )      |   |                            | (584    | )      |            |   | (0.6   | )                      |   |   | (15.5          | )      |   |           | -      |   |                            |   | (16.1 | ) |   |   | (160 | ) |   |   | (3,431 | ) |
| Production                                      |   |                                       | (6,511  | )      |                  |   | (138   | )               |   |   | (4,743           | )      |   |                            | (11,392 | )      |            |   | (8.1   | )                      |   |   | (164.6         | )      |   |           | (0.5   | )      |                            |   | (173.3 | ) |   |   | (2,879 | ) |   |   | (43,148 | ) |
| December 31, 2016                               |   |                                       | 77,451  |   |                  |   | 2,284  |            |   |   | 44,261           |   |   |                            | 123,996 |   |            |   | 106.9  |                   |   |   | 3,140.5        |   |   |           | -      |   |                            |   | 3,247.4 |   |   |   | 71,504 |   |   |   | 736,733 |   |

| 1) | Natural Gas Liquids includes Associated Natural Gas Liquids for both Conventional and Shale/Tight Reservoirs. |
|----|---------------------------------------------------------------------------------------------------------------|

| 2) | Reserve additions for Infill Drilling, Extensions and Improved Recovery are combined and reported as ‘Extensions and Improved Recovery’. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| Year                              | Proved Reserves ($ millions) | Proved Plus Probable Reserves ($ millions) |
|-----------------------------------|------------------------------|--------------------------------------------|
| 2017                              | 542                          | 662                                        |
| 2018                              | 530                          | 639                                        |
| 2019                              | 404                          | 524                                        |
| 2020                              | 151                          | 279                                        |
| 2021                              | 94                           | 211                                        |
| Remainder                         | 187                          | 441                                        |
| Total: Undiscounted               | 1,908                        | 2,755                                      |
| Total: Discounted at 10% per Year | 1,553                        | 2,169                                      |

----

Table of Contents

|   |   | Light Crude Oil andMedium Crude Oil(Mbbl) |   |   |   Heavy Crude Oil(Mbbl) |   |   |     Tight Oil(Mbbl) |   |   | ConventionalNatural Gas(Bcf) |   |   | Shale Gas(Bcf)   |   |
|--------|--------|-------------------------------------------|--------|--------|------------------------------|--------|--------|------------------------------------|--------|--------|------------------------------|--------|--------|------------------|--------|
|   |   | First Attributed                          |   |   | Total at Year-End            |   |   | First Attributed                   |   |   | Total at Year-End            |   |   | First Attributed |   |   | Total at Year-End |   |   | First Attributed |   |   | Total at Year-End |   |   | First Attributed |   |   | Total at Year-End |   |
| 2014   |   |                                      | 3,253  |   |                         |   | 8,451  |                               |   |   | -                            |   |   |             | 105    |   |   |   | 1,029 |   |   |   | 6,740 |   |   |   | 0.9 |   |   |   | 6.2 |   |   |   | 130.9 |   |   |   | 761.2 |   |
| 2015   |   |                                      | 507    |   |                         |   | 5,988  |                               |   |   | -                            |   |   |             | 84     |   |   |   | 3,008 |   |   |   | 7,712 |   |   |   | 0.5 |   |   |   | 5.1 |   |   |   | 166.8 |   |   |   | 776.7 |   |
| 2016   |   |                                      | 293    |   |                         |   | 6,088  |                               |   |   | -                            |   |   |             | 80     |   |   |   | 9,854 |   |   |   | 14,078 |   |   |   | 0.7 |   |   |   | 8.1 |   |   |   | 377.1 |   |   |   | 941.8 |   |
|   |   |
|   |   | Coal Bed Methane(Bcf)                     |   |   | NGLs(Mbbl)                   |   |   | Total(Mboe)                        |   |   |                         |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
|   |   | First Attributed                          |   |   | Total at Year-End            |   |   | First Attributed                   |   |   | Total at Year-End            |   |   | First Attributed |   |   | Total at Year-End |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2014   |   | NMF                                       |   |   |                         | 2.2    |   |                               |   | 1,869  |                         |   |   | 8,833            |   |   |   | 28,140 |   |   |   | 152,390 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2015   |   | NMF                                       |   |   |                         | 1.2    |   |                               |   | 3,795  |                         |   |   | 15,470           |   |   |   | 35,205 |   |   |   | 159,755 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2016   |   |                                      | 0      |   |                         |   | 0      |                               |   |   | 10,507                       |   |   |             | 24,108 |   |   |   | 83,261 |   |   |   | 202,656 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

|   |   | Light Crude Oil andMedium Crude Oil(Mbbl) |   |   | Heavy Crude Oil(Mbbl) |   |   | Tight Oil(Mbbl)  |   |   | ConventionalNatural Gas(Bcf) |   |   | Shale Gas(Bcf)   |   |
|--------|--------|-------------------------------------------|--------|--------|-----------------------|--------|--------|------------------|--------|--------|------------------------------|--------|--------|------------------|--------|
|   |   | First Attributed                          |   |   | Total at Year-End     |   |   | First Attributed |   |   | Total at Year-End            |   |   | First Attributed |   |   | Total at Year-End |   |   | First Attributed |   |   | Total at Year-End |   |   | First Attributed |   |   | Total atYear-End |   |
| 2014   |   |                                      | 3,240  |   |                  |   | 7,994  |             |   |   | -                            |   |   |             | 42     |   |   |   | 1,715 |   |   |   | 11,605 |   |   |   | 1.1 |   |   |   | 5.7 |   |   |   | 219.6 |   |   |   | 1,052.9 |   |
| 2015   |   |                                      | 1,752  |   |                  |   | 10,083 |             |   |   | -                            |   |   |             | 29     |   |   |   | 3,911 |   |   |   | 11,449 |   |   |   | 1.4 |   |   |   | 8.4 |   |   |   | 195.0 |   |   |   | 1,034.5 |   |
| 2016   |   |                                      | 207    |   |                  |   | 3,653  |             |   |   | -                            |   |   |             | 28     |   |   |   | 6,171 |   |   |   | 9,809 |   |   |   | 0.3 |   |   |   | 5.5 |   |   |   | 506.9 |   |   |   | 1,151.2 |   |
|   |   |
|   |   | Coal Bed Methane(Bcf)                     |   |   | NGLs(Mbbl)            |   |   | Total(Mboe)      |   |   |                         |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
|   |   | First Attributed                          |   |   | Total at Year-End     |   |   | First Attributed |   |   | Total at Year-End            |   |   | First Attributed |   |   | Total at Year-End |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2014   |   | NMF                                       |   |   |                  | 2.6    |   |             |   | 3,723  |                         |   |   | 13,837           |   |   |   | 45,467 |   |   |   | 210,357 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2015   |   | NMF                                       |   |   |                  | 2.0    |   |             |   | 5,747  |                         |   |   | 19,169           |   |   |   | 44,148 |   |   |   | 214,882 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2016   |   |                                      | -      |   |                  |   | -      |             |   |   | 16,082                       |   |   |             | 28,291 |   |   |   | 106,991 |   |   |   | 234,556 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

| Abandonment & Reclamation Costs(1)Escalated at 2.0% |   | Undiscounted($ millions) |   |   | Discounted at 10%(2)($ millions) |   |
|---------------------------------------------------------|--------|--------------------------|--------|--------|----------------------------------|--------|
| Total as at December 31, 2016                           |   |                     | 707.5  |   |                             |   | 97.1 |   |
| Anticipated to be paid in 2017                          |   |                     | 14.5   |   |                             |   | 13.2 |   |
| Anticipated to be paid in 2018                          |   |                     | 9.3    |   |                             |   | 7.7 |   |
| Anticipated to be paid in 2019                          |   |                     | 8.4    |   |                             |   | 6.3 |   |

| 1) | Abandonment and reclamation costs associated with liabilities associated with properties moved to held for sale at December 31, 2016 have been   excluded from this summary. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2) | Costs have been discounted in our audited consolidated financial statements for the year ended December 31, 2016 at a liability-specific risk-free rate 2.3 per cent. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

|                  |   | Light CrudeOil andMediumCrude Oil andTight Oil (1) |   |   | HeavyCrudeOil (1) |   |   | NaturalGas (1)(2) |   |   | NGLs (1) |   |   | Total OilEquivalentProduction (1) |   |   | ProvedReserves |   |    | Proved Plus Probable Reserves |   |   | Proved Plus Probable Reserves |   |
|-----------------------|--------|----------------------------------------------------|--------|--------|-------------------|--------|--------|-------------------|--------|--------|----------|--------|--------|-----------------------------------|--------|--------|----------------|--------|---------|-------------------------------|--------|--------|-------------------------------|--------|
| Core Area             |   | (bbl/d)                                            |   |   | (bbl/d)           |   |   | (MMcf/d)          |   |   | (bbl/d)  |   |   | (boe/d)                           |   |   | (Mboe)         |   |    | (Mboe)                        |   |   | (%)                           |   |
| NE British Columbia   |   |                                               | 7,299  |   |              |   | -      |              |   |   | 392.5    |   |   |                              | 4,899  |   |           |   | 77,616  |                          |   |   | 313,816                       |   |   |   | 575,963 |   |   |   | 78 |   |
| Northern Alberta      |   |                                               | 6,555  |   |              |   | 1      |              |   |   | 65.3     |   |   |                              | 2,070  |   |           |   | 19,514  |                          |   |   | 43,436                        |   |   |   | 69,233 |   |   |   | 9 |   |
| Pembina               |   |                                               | 6,906  |   |              |   | 346    |              |   |   | 12.5     |   |   |                              | 630    |   |           |   | 9,972   |                          |   |   | 51,057                        |   |   |   | 69,306 |   |   |   | 9 |   |
| South Central Alberta |   |                                               | 2,926  |   |              |   | 258    |              |   |   | 3.5      |   |   |                              | 153    |   |           |   | 3,927   |                          |   |   | 17,619                        |   |   |   | 22,231 |   |   |   | 3 |   |
| Southeast SK (3)      |   |                                               | 6,921  |   |              |   | -      |              |   |   | 0.8      |   |   |                              | 137    |   |           |   | 7,185   |                          |   |   | -                             |   |   |   | - |   |   |   | - |   |
| Total (4)             |   |                                               | 30,608 |   |              |   | 604    |              |   |   | 474.8    |   |   |                              | 7,889  |   |           |   | 118,214 |                          |   |   | 425,927                       |   |   |   | 736,733 |   |   |   | 100 |   |

| 1) | Production volumes as disclosed above are “gross production” which is our interest (operated and non-operated) in production before deduction of royalties and without including any royalty interests to us. These volumes differ from the “company interest production” volumes disclosed in this Annual Information Form under “ARC Resources Ltd. - Development of our Business” and “Statement of Reserves Data and Other Oil and Gas Information – Production History” as well as in our audited consolidated financial statements for the year ended December 31, 2016 and the related Management’s Discussion and Analysis which is our interest (operated and non-operated) in production before deduction of royalties inclusive of royalty interests. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2) | Natural gas production includes production from Conventional Natural Gas, Shale Gas and Coal Bed Methane. |
|----|-----------------------------------------------------------------------------------------------------------|

| 3) | During the fourth quarter of 2016, ARC disposed of the remaining assets in this district. |
|----|-------------------------------------------------------------------------------------------|

| 4) | May not add due to rounding. |
|----|------------------------------|

----

Table of Contents

----

Table of Contents

| By Core Area          |   | Oil Wells (1) |   |   | Natural Gas Wells (2) |   |
|-----------------------|--------|---------------|--------|--------|-----------------------|--------|
|                  |   | Producing     |   |   | Non-Producing         |   |   | Producing |   |   | Non-Producing |   |
|                  |   | Gross         |   |   | Net                   |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |
| NE British Columbia   |   |          | 92     |   |                  |   | 91 |   |   |   | 11 |   |   |   | 10 |   |   |   | 370 |   |   |   | 341 |   |   |   | 145 |   |   |   | 133 |   |
| Northern Alberta      |   |          | 644    |   |                  |   | 335 |   |   |   | 427 |   |   |   | 140 |   |   |   | 415 |   |   |   | 102 |   |   |   | 151 |   |   |   | 63 |   |
| Pembina               |   |          | 1,282  |   |                  |   | 965 |   |   |   | 483 |   |   |   | 275 |   |   |   | 63 |   |   |   | 20 |   |   |   | 41 |   |   |   | 19 |   |
| South Central Alberta |   |          | 487    |   |                  |   | 473 |   |   |   | 95 |   |   |   | 90 |   |   |   | 30 |   |   |   | 14 |   |   |   | 18 |   |   |   | 10 |   |
| Total (3)             |   |          | 2,505  |   |                  |   | 1,864 |   |   |   | 1,016 |   |   |   | 515 |   |   |   | 878 |   |   |   | 477 |   |   |   | 355 |   |   |   | 225 |   |
| By Province      |   | Oil Wells(1) |   |   | Natural Gas Wells (2) |   |
|------------------|--------|--------------|--------|--------|-----------------------|--------|
|             |   | Producing    |   |   | Non-Producing         |   |   | Producing |   |   | Non-Producing |   |
|             |   | Gross        |   |   | Net                   |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |
| Alberta          |   |         | 2,413  |   |                  |   | 1,773 |   |   |   | 1,005 |   |   |   | 505 |   |   |   | 508 |   |   |   | 136 |   |   |   | 210 |   |   |   | 92 |   |
| British Columbia |   |         | 92     |   |                  |   | 91 |   |   |   | 11 |   |   |   | 10 |   |   |   | 370 |   |   |   | 341 |   |   |   | 145 |   |   |   | 133 |   |
| Total (3)        |   |         | 2,505  |   |                  |   | 1,864 |   |   |   | 1,016 |   |   |   | 515 |   |   |   | 878 |   |   |   | 477 |   |   |   | 355 |   |   |   | 225 |   |

| 1) | Includes light crude oil and medium crude oil wells, heavy crude oil wells and tight oil wells. |
|----|-------------------------------------------------------------------------------------------------|

| 2) | Includes conventional natural gas wells and shale gas wells. |
|----|--------------------------------------------------------------|

| 3) | Total well count differs from well count provided in ARO, as this table excludes abandoned, water source, water injection and disposal wells. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                  |   | Gross  |    |   | Net    |   |
|-----------------------|--------|--------|---------|--------|--------|--------|
| NE British Columbia   |   |   | 150,794 |   |   |   | 137,069 |   |
| Northern Alberta      |   |   | 183,478 |   |   |   | 134,703 |   |
| Pembina               |   |   | 40,705  |   |   |   | 5,574 |   |
| South Central Alberta |   |   | 10,788  |   |   |   | 7,434 |   |
| Total                 |   |   | 385,765 |   |   |   | 284,780 |   |
| Abandonment & Reclamation Costs Escalated at 2.0% |   | Undiscounted($ millions) |   |   | Discounted at 10%($ millions) |   |
|-------------------------------------------------------|--------|--------------------------|--------|--------|-------------------------------|--------|
| Total as at December 31, 2016                         |   |                     | 18.4   |   |                          |   | 5.8 |   |
| Anticipated to be paid in 2017                        |   |                     | 1.3    |   |                          |   | 1.2 |   |
| Anticipated to be paid in 2018                        |   |                     | 0.6    |   |                          |   | 0.5 |   |
| Anticipated to be paid in 2019                        |   |                     | 0.4    |   |                          |   | 0.3 |   |

| 1) | Costs have been discounted in our audited consolidated financial statements for the year ended December 31, 2016 at a liability-specific risk-free rate 2.3 per cent. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| ($ millions)                                                 |   | NE British Columbia |   |   | Northern Alberta |   |   | Pembina |   |   | South Central Alberta |   |   | SE Sask (5) |   |   | Corporate |   |   | Total  |   |
|--------------------------------------------------------------|--------|---------------------|--------|--------|------------------|--------|--------|---------|--------|--------|-----------------------|--------|--------|-------------|--------|--------|-----------|--------|--------|--------|--------|
| Property Acquisition  (Disposition) Costs, Net (1) |   |                |   |   |             |   |   |    |   |   |                  |   |   |        |   |   |      |   |   |   |   |
| Proved Properties                                            |   |                | 29.1   |   |             |   | (17.7  | )       |   |   | 143.4                 |   |   |        | (3.5   | )      |      |   | (683.9 | )      |   |   | - |   |   |   | (532.6 | ) |
| Undeveloped Properties                                       |   |                | 0.1    |   |             |   | -      |    |   |   | -                     |   |   |        | -      |   |      |   | -      |   |   |   | - |   |   |   | 0.1 |   |
| Exploration Costs (2)                                        |   |                | 38.0   |   |             |   | -      |    |   |   | -                     |   |   |        | -      |   |      |   | -      |   |   |   | - |   |   |   | 38.0 |   |
| Development Costs (3)                                        |   |                | 306.4  |   |             |   | 41.7   |    |   |   | 32.2                  |   |   |        | 14.4   |   |      |   | 10.4   |   |   |   | - |   |   |   | 405.1 |   |
| Corporate Capital Costs (4)                                  |   |                | 2.0    |   |             |   | -      |    |   |   | -                     |   |   |        | -      |   |      |   | -      |   |   |   | 11.0 |   |   |   | 13.0 |   |
| Total                                                        |   |                | 375.6  |   |             |   | 24.0   |    |   |   | 175.6                 |   |   |        | 10.9   |   |      |   | (673.5 | )      |   |   | 11.0 |   |   |   | (76.4 | ) |

| 1) | Represents acquisition costs net of dispositions and property swaps. Acquisition value is net of post-closing adjustments. Disposition value represents proceeds and adjustments to proceeds from divestitures. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2) | Represents asset additions that have been determined by management to be in the exploration and evaluation stage and includes costs of land acquired ($0.3 million). |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3) | Represents additions to oil and gas development and production assets and administrative assets and includes costs of land acquired ($2.4 million). |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4) | Represents administrative assets allocated on a corporate level. |
|----|------------------------------------------------------------------|

| 5) | During the fourth quarter of 2016, ARC disposed of all remaining assets in this district. |
|----|-------------------------------------------------------------------------------------------|

----

Table of Contents

| By Core Area        |   | Development Wells (1) |   |   | Exploratory Wells(1) |   |   | Total (1) |   |
|---------------------|--------|-----------------------|--------|--------|----------------------|--------|--------|-----------|--------|
|                |   | Gross                 |   |   | Net                  |   |   | Gross     |   |   | Net |   |   | Gross |   |   | Net |   |
| NE British Columbia |   |                  | 48     |   |                 |   | 48.00  |      |   |   | 2 |   |   |   | 1.50 |   |   |   | 50 |   |   |   | 49.50 |   |
| Northern Alberta    |   |                  | 6      |   |                 |   | 6.00   |      |   |   | - |   |   |   | - |   |   |   | 6 |   |   |   | 6.00 |   |
| Pembina             |   |                  | 11     |   |                 |   | 8.03   |      |   |   | - |   |   |   | - |   |   |   | 11 |   |   |   | 8.03 |   |
| SE Saskatchewan (2) |   |                  | 2      |   |                 |   | 0.14   |      |   |   | - |   |   |   | - |   |   |   | 2 |   |   |   | 0.14 |   |
| Total               |   |                  | 65     |   |                 |   | 62.17  |      |   |   | 2 |   |   |   | 1.50 |   |   |   | 69 |   |   |   | 63.67 |   |

| By Well Type |   | Development Wells (1) |   |   | Exploratory Wells(1) |   |   | Total (1) |   |
|--------------|--------|-----------------------|--------|--------|----------------------|--------|--------|-----------|--------|
|         |   | Gross                 |   |   | Net                  |   |   | Gross     |   |   | Net |   |   | Gross |   |   | Net |   |
| Crude Oil    |   |                  | 40     |   |                 |   | 35.17  |      |   |   | - |   |   |   | - |   |   |   | 40 |   |   |   | 35.17 |   |
| Natural Gas  |   |                  | 27     |   |                 |   | 27.00  |      |   |   | 2 |   |   |   | 1.50 |   |   |   | 29 |   |   |   | 28.50 |   |
| Total        |   |                  | 65     |   |                 |   | 62.17  |      |   |   | 2 |   |   |   | 1.50 |   |   |   | 69 |   |   |   | 63.67 |   |

| 1) | Number of wells based on rig release dates. |
|----|---------------------------------------------|

| 2) | ARC disposed of its SE Saskatchewan assets in the fourth quarter of 2016. |
|----|---------------------------------------------------------------------------|

| TOTAL PROVED          |   |
|-----------------------|--------|
|                  |   | Light Crude Oil &Medium Crude Oil(bbl/d) |   |   | Heavy Crude Oil(bbl/d) |   |   | Tight Oil(bbl/d) |   |   | Conventional Natural Gas(Mcf/d) |   |   | Shale Gas(Mcf/d) |   |   | NGLs(bbl/d) |   |   | Total(boe/d) |   |
|                  |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |
| Dawson                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 172,993 |   |   |   | 151,887 |   |   |   | 953 |   |   |   | 831 |   |   |   | 29,785 |   |   |   | 26,145 |   |
| Other Properties |   |   | 12,399 |   |   |   | 11,492 |   |   |   | 396 |   |   |   | 584 |   |   |   | 10,670 |   |   |   | 8,765 |   |   |   | 25,074 |   |   |   | 23,058 |   |   |   | 265,760 |   |   |   | 243,083 |   |   |   | 6,217 |   |   |   | 4,944 |   |   |   | 78,154 |   |   |   | 70,142 |   |
| Total Proved     |   |   | 12,399 |   |   |   | 11,492 |   |   |   | 396 |   |   |   | 584 |   |   |   | 10,670 |   |   |   | 8,765 |   |   |   | 25,074 |   |   |   | 23,058 |   |   |   | 438,752 |   |   |   | 394,970 |   |   |   | 7,169 |   |   |   | 5,774 |   |   |   | 107,939 |   |   |   | 96,287 |   |
| TOTAL PROBABLE        |   |
|-----------------------|--------|
|                  |   | Light Crude Oil &Medium Crude Oil(bbl/d) |   |   | Heavy Crude Oil(bbl/d) |   |   | Tight Oil(bbl/d) |   |   | Conventional Natural Gas(Mcf/d) |   |   | Shale Gas(Mcf/d) |   |   | NGLs(bbl/d) |   |   | Total(boe/d) |   |
|                  |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |
| Dawson                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 40,682 |   |   |   | 38,645 |   |   |   | 227 |   |   |   | 216 |   |   |   | 7,008 |   |   |   | 6,656 |   |
| Other Properties |   |   | 447 |   |   |   | 393 |   |   |   | 4 |   |   |   | 23 |   |   |   | 2,639 |   |   |   | 2,071 |   |   |   | 731 |   |   |   | 665 |   |   |   | 36,756 |   |   |   | 33,608 |   |   |   | 1,175 |   |   |   | 1,011 |   |   |   | 10,513 |   |   |   | 9,210 |   |
| Total Probable   |   |   | 447 |   |   |   | 393 |   |   |   | 4 |   |   |   | 23 |   |   |   | 2,639 |   |   |   | 2,071 |   |   |   | 731 |   |   |   | 665 |   |   |   | 77,438 |   |   |   | 72,253 |   |   |   | 1,402 |   |   |   | 1,227 |   |   |   | 17,520 |   |   |   | 15,867 |   |

----

Table of Contents

| TOTAL PROVED PLUS PROBABLE        |   |
|-----------------------------------|--------|
|                              |   | Light Crude Oil &Medium Crude Oil(bbl/d) |   |   | Heavy Crude Oil(bbl/d) |   |   | Tight Oil(bbl/d) |   |   | Conventional Natural Gas(Mcf/d) |   |   | Shale Gas(Mcf/d) |   |   | NGLs(bbl/d) |   |   | Total(boe/d) |   |
|                              |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |
| Dawson                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 213,674 |   |   |   | 190,532 |   |   |   | 1,180 |   |   |   | 1,046 |   |   |   | 36,793 |   |   |   | 32,802 |   |
| Other Properties             |   |   | 12,846 |   |   |   | 11,885 |   |   |   | 400 |   |   |   | 607 |   |   |   | 13,309 |   |   |   | 10,836 |   |   |   | 25,805 |   |   |   | 23,723 |   |   |   | 302,516 |   |   |   | 276,691 |   |   |   | 7,392 |   |   |   | 5,955 |   |   |   | 88,666 |   |   |   | 79,352 |   |
| Total Proved + Probable |   |   | 12,846 |   |   |   | 11,885 |   |   |   | 400 |   |   |   | 607 |   |   |   | 13,309 |   |   |   | 10,836 |   |   |   | 25,805 |   |   |   | 23,723 |   |   |   | 516,190 |   |   |   | 467,223 |   |   |   | 8,572 |   |   |   | 7,001 |   |   |   | 125,459 |   |   |   | 112,153 |   |
| Production History                     |   | Quarter Ended 2016 |    |   | Year Ended |   |
|----------------------------------------|--------|--------------------|---------|--------|------------|--------|
|                                   |   | Mar 31             |    |   | June 30    |   |   | Sept 30 |   |   | Dec 31 |   |   | 2016 |   |
| Average Daily Production (1)           |   |               |    |   |       |   |   |   |   |   |   |   |   |   |   |
| Light and Medium Crude Oil (bbl/d) (2) |   |               | 34,367  |   |       |   | 31,217 |   |   |   | 28,908 |   |   |   | 29,184 |   |   |   | 30,906 |   |
| Heavy Oil (bbl/d)                      |   |               | 485     |   |       |   | 485 |   |   |   | 734 |   |   |   | 701 |   |   |   | 604 |   |
| Gas (MMcf/d) (3)                       |   |               | 489.7   |   |       |   | 467.5 |   |   |   | 466.7 |   |   |   | 478.4 |   |   |   | 475.6 |   |
| NGLs (bbl/d) (4)                       |   |               | 7,761   |   |       |   | 8,069 |   |   |   | 7,783 |   |   |   | 7,987 |   |   |   | 7,900 |   |
| Condensate (bbl/d)                     |   |               | 3,442   |   |       |   | 3,733 |   |   |   | 3,562 |   |   |   | 3,767 |   |   |   | 3,626 |   |
| NGLs (bbl/d) (5)                       |   |               | 4,319   |   |       |   | 4,336 |   |   |   | 4,221 |   |   |   | 4,220 |   |   |   | 4,274 |   |
| Total (boe/d)                          |   |               | 124,224 |   |       |   | 117,695 |   |   |   | 115,205 |   |   |   | 117,611 |   |   |   | 118,671 |   |
|                                   |   |               |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Net Production Prices Received |   |               |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Light and Medium Crude Oil ($/bbl) (2) |   |               | 39.04   |   |       |   | 53.03 |   |   |   | 52.90 |   |   |   | 59.59 |   |   |   | 50.69 |   |
| Heavy Oil ($/bbl)                      |   |               | 10.46   |   |       |   | 38.15 |   |   |   | 33.79 |   |   |   | 42.89 |   |   |   | 32.62 |   |
| Gas ($/Mcf) (3)                        |   |               | 2.05    |   |       |   | 1.39 |   |   |   | 2.35 |   |   |   | 3.10 |   |   |   | 2.23 |   |
| NGLs ($/bbl) (4)                       |   |               | 50.49   |   |       |   | 64.80 |   |   |   | 63.48 |   |   |   | 79.74 |   |   |   | 64.83 |   |
| Condensate ($/bbl)                     |   |               | 42.07   |   |       |   | 51.20 |   |   |   | 50.81 |   |   |   | 58.97 |   |   |   | 50.98 |   |
| NGLs ($/bbl) (5)                       |   |               | 8.42    |   |       |   | 13.60 |   |   |   | 12.67 |   |   |   | 20.77 |   |   |   | 13.85 |   |
| Total ($/boe) (6)                      |   |               | 20.45   |   |       |   | 21.94 |   |   |   | 25.05 |   |   |   | 30.67 |   |   |   | 24.49 |   |
|                                   |   |               |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Royalties Paid                         |   |               |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Light and Medium Crude Oil ($/bbl) (2) |   |               | 4.48    |   |       |   | 5.87 |   |   |   | 5.42 |   |   |   | 7.00 |   |   |   | 5.65 |   |
| Heavy Oil ($/bbl)                      |   |               | 0.83    |   |       |   | 1.65 |   |   |   | 1.07 |   |   |   | 1.34 |   |   |   | 1.22 |   |
| Gas ($/Mcf) (3)                        |   |               | 0.03    |   |       |   | - |   |   |   | 0.10 |   |   |   | 0.08 |   |   |   | 0.05 |   |
| NGLs ($/bbl) (4)                       |   |               | 8.90    |   |       |   | 12.07 |   |   |   | 11.65 |   |   |   | 14.47 |   |   |   | 11.27 |   |
| Condensate ($/bbl)                     |   |               | 7.26    |   |       |   | 9.59 |   |   |   | 9.24 |   |   |   | 8.67 |   |   |   | 8.70 |   |
| NGLs ($/bbl) 5)                        |   |               | 1.64    |   |       |   | 2.48 |   |   |   | 2.41 |   |   |   | 3.80 |   |   |   | 2.57 |   |
| Total ($/boe)                          |   |               | 1.62    |   |       |   | 1.97 |   |   |   | 2.16 |   |   |   | 2.47 |   |   |   | 2.05 |   |
|                                   |   |               |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses (7)(8)              |   |               |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Light and Medium Crude Oil ($/bbl) (2) |   |               | 12.36   |   |       |   | 12.12 |   |   |   | 14.47 |   |   |   | 14.02 |   |   |   | 13.11 |   |
| Heavy Oil ($/bbl)                      |   |               | 14.03   |   |       |   | 13.89 |   |   |   | 11.74 |   |   |   | 13.47 |   |   |   | 13.14 |   |
| Gas ($/Mcf) (3)                        |   |               | 0.57    |   |       |   | 0.68 |   |   |   | 0.78 |   |   |   | 0.69 |   |   |   | 0.69 |   |
| NGLs ($/bbl) (4)                       |   |               | 12.78   |   |       |   | 12.81 |   |   |   | 14.63 |   |   |   | 12.03 |   |   |   | 12.24 |   |
| Condensate ($/bbl)                     |   |               | 6.82    |   |       |   | 6.37 |   |   |   | 7.09 |   |   |   | 5.49 |   |   |   | 5.75 |   |
| NGLs ($/bbl) (5)                       |   |               | 5.96    |   |       |   | 6.44 |   |   |   | 7.54 |   |   |   | 6.54 |   |   |   | 6.49 |   |
| Total ($/boe)                          |   |               | 6.10    |   |       |   | 6.41 |   |   |   | 7.37 |   |   |   | 6.77 |   |   |   | 6.65 |   |
|                                   |   |               |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transportation Paid                    |   |               |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Light and Medium Crude Oil ($/bbl) (2) |   |               | 2.77    |   |       |   | 2.84 |   |   |   | 2.50 |   |   |   | 2.67 |   |   |   | 2.70 |   |
| Heavy Oil ($/bbl)                      |   |               | 0.79    |   |       |   | 0.76 |   |   |   | 0.51 |   |   |   | 0.54 |   |   |   | 0.63 |   |
| Gas ($/Mcf) (3)                        |   |               | 0.29    |   |       |   | 0.28 |   |   |   | 0.28 |   |   |   | 0.32 |   |   |   | 0.29 |   |
| NGLs ($/bbl) (4)                       |   |               | 9.02    |   |       |   | 8.52 |   |   |   | 9.22 |   |   |   | 10.59 |   |   |   | 9.33 |   |
| Condensate ($/bbl)                     |   |               | 2.49    |   |       |   | 2.00 |   |   |   | 2.20 |   |   |   | 2.64 |   |   |   | 2.33 |   |
| NGLs ($/bbl) (5)                       |   |               | 6.53    |   |       |   | 6.52 |   |   |   | 7.02 |   |   |   | 7.95 |   |   |   | 7.00 |   |
| Total ($/boe)                          |   |               | 2.20    |   |       |   | 2.19 |   |   |   | 2.08 |   |   |   | 2.32 |   |   |   | 2.20 |   |

----

Table of Contents

| Production History                     |   | Quarter Ended 2016 |   |   | Year Ended |   |
|----------------------------------------|--------|--------------------|--------|--------|------------|--------|
|                                   |   | Mar 31             |   |   | June 30    |   |   | Sept 30 |   |   | Dec 31 |   |   | 2016 |   |
| (Loss)/Gain on Commodity Contracts     |   |               |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Light and Medium Crude Oil ($/bbl) (2) |   |               | 8.14   |   |       |   | 4.71 |   |   |   | 4.80 |   |   |   | 2.00 |   |   |   | 5.04 |   |
| Heavy Oil ($/bbl)                      |   |               | -      |   |       |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Gas ($/Mcf) (3)                        |   |               | 0.96   |   |       |   | 1.22 |   |   |   | 0.86 |   |   |   | 0.63 |   |   |   | 0.92 |   |
| NGLs ($/bbl) (4)                       |   |               | -      |   |       |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Condensate ($/bbl)                     |   |               | -      |   |       |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| NGLs ($/bbl) (5)                       |   |               | -      |   |       |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total ($/boe)                          |   |               | 6.04   |   |       |   | 6.10 |   |   |   | 4.67 |   |   |   | 3.08 |   |   |   | 4.98 |   |
|                                   |   |               |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Netback Received (9)                   |   |               |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Light and Medium Crude Oil ($/bbl) (2) |   |               | 27.57  |   |       |   | 36.91 |   |   |   | 35.31 |   |   |   | 37.90 |   |   |   | 34.27 |   |
| Heavy Oil ($/bbl)                      |   |               | (5.19  | )      |       |   | 21.85 |   |   |   | 20.47 |   |   |   | 27.54 |   |   |   | 17.63 |   |
| Gas ($/Mcf) (3)                        |   |               | 2.12   |   |       |   | 1.65 |   |   |   | 2.05 |   |   |   | 2.64 |   |   |   | 2.12 |   |
| NGLs ($/bbl) (4)                       |   |               | 19.79  |   |       |   | 31.40 |   |   |   | 27.98 |   |   |   | 44.65 |   |   |   | 31.99 |   |
| Condensate ($/bbl)                     |   |               | 25.50  |   |       |   | 33.24 |   |   |   | 32.28 |   |   |   | 42.17 |   |   |   | 34.20 |   |
| NGLs ($/bbl) (5)                       |   |               | (5.71  | )      |       |   | (1.84 | ) |   |   | (4.30 | ) |   |   | 2.48 |   |   |   | (2.21 | ) |
| Total ($/boe)                          |   |               | 16.57  |   |       |   | 17.47 |   |   |   | 18.11 |   |   |   | 22.19 |   |   |   | 18.57 |   |

| 1) | Before deduction of royalties and including royalty interests. |
|----|----------------------------------------------------------------|

| 2) | Light and Medium Crude Oil as defined by ARC in external reporting includes light crude oil, medium crude oil and tight oil. |
|----|------------------------------------------------------------------------------------------------------------------------------|

| 3) | Gas as defined by ARC in external reporting includes conventional natural gas, shale gas and coal bed methane. |
|----|----------------------------------------------------------------------------------------------------------------|

| 4) | NGLs as defined by GLJ which includes condensate, butane, ethane and propane. |
|----|-------------------------------------------------------------------------------|

| 5) | NGLs or natural gas liquids as defined by ARC in external reporting includes butane, ethane and propane but excludes condensate. |
|----|----------------------------------------------------------------------------------------------------------------------------------|

| 6) | Total average price received includes other income from standard business activities including interest earned on ARC’s reclamation fund. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 7) | Operating expenses are composed of direct costs incurred to operate both oil and gas wells. A number of assumptions have been made in allocating these costs between oil, natural gas, condensate and natural gas liquids production. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8) | Operating recoveries associated with operated properties were excluded from operating costs and accounted for as a reduction to general and administrative costs. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9) | Netbacks are calculated by subtracting royalties, operating expenses, transportation costs, and realized (losses)/gains on commodity contracts from revenues. Netbacks before hedging can be found in Table 16 and 16a “Netbacks prior to hedging” under the section Operating Netbacks of our Management’s Discussion and Analysis for the year ended December 31, 2016 which has been filed on our SEDAR profile at www.sedar.com. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

| SHARE CAPITAL OF ARC RESOURCES |
|--------------------------------|

----

Table of Contents

| OTHER INFORMATION RELATING TO OUR BUSINESS |
|--------------------------------------------|

| — | Long-term debt and letters of credit not to exceed 3.25 trailing 12 month net income before non-cash items, income tax and interest expense; |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------|

| — | Long-term debt, letters of credit and subordinated debt not to exceed four times trailing 12 month net income before non-cash items, income tax and interest expense; and |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| — | Long-term debt and letters of credit not to exceed 50 per cent of Shareholders' equity and long-term debt, letters of credit and subordinated debt. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

| DIRECTORS AND EXECUTIVE OFFICERS |
|----------------------------------|

| Directors                                             |                    |                                                                                                                                                                                                                                                |
|-------------------------------------------------------|-------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Name and Municipality of Residence                    | Director Since (1)      | Principal Occupation During Past Five Years                                                                                                                                                                                                         |
| Harold N. KvisleCalgary, Alberta Canada               | 2009 (Chair)Independent | Mr. Kvisle is the Chairman of ARC’s Board, a position he has held since January 1, 2016. Prior to May 2015, he was President and Chief Executive Officer of Talisman Energy, and prior to September 2012, he was an independent business man. |
| David R. CollyerCalgary, Alberta Canada               | 2016Independent         | Mr. Collyer is an independent businessman. Prior to 2014, Mr. Collyer was the President and Chief Executive Officer of the Canadian Association of Petroleum Producers.                                                                             |
| John P. DielwartCalgary, Alberta, Canada              | 1996Non-Independent     | Mr. Dielwart is currently the Vice-Chairman of ARC Financial Corp, Canada’s largest energy focused private equity manager. Prior to January 2013, he was the Chief Executive Officer of ARC Resources.                                        |
| Fred J. DymentCalgary, Alberta, Canada                | 2003Independent         | Mr. Dyment is an independent businessman.                                                                                                                                                                                                           |
| Timothy J. HearnCalgary, Alberta, Canada              | 2011Independent         | Mr. Hearn is an independent businessman.                                                                                                                                                                                                            |
| James C. HouckCalgary, Alberta, Canada                | 2008Independent         | Mr. Houck is an independent businessman. Prior to August 2012, he was the President and Chief Executive Officer of the Churchill Corporation.                                                                                                       |
| Kathleen M. O'NeillToronto, Ontario, Canada           | 2009Independent         | Ms. O’Neill is an independent businesswoman.                                                                                                                                                                                                  |
| Herbert C. Pinder, Jr.Saskatoon, Saskatchewan, Canada | 2006Independent         | Mr. Pinder is an independent businessman.                                                                                                                                                                                                           |
| William G. SemboCalgary, Alberta, Canada              | 2013Independent         | Mr. Sembo is an independent businessman. Prior to November 2013, he was the Vice Chairman and Managing Director at RBC Capital Markets LLC.                                                                                                         |
| Nancy SmithCalgary, Alberta, Canada                   | 2016Independent         | Ms. Smith is a Director and Investment Committee Member of ARC Financial Corp, Canada’s largest energy focused private equity manager.                                                                                                        |
| Myron M. StadnykCalgary, Alberta, Canada              | 2013Management Director | Mr. Stadnyk is the President and Chief Executive Officer of ARC Resources. Prior to January 2013, he was the President and Chief Operating Officer of ARC Resources.                                                                                |

| 1) | The term of each director is until the next annual meeting of ARC Resources, which is scheduled to be held on May 4, 2017. |
|----|----------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| Officers (1)(2)(3)                                  |                                                                                                                                                                                                                                             |
|-----------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Name and Municipality of Residence                  | Office Held and Principal Occupation During Past Five Years                                                                                                                                                                                      |
| Myron M. StadnykCalgary, Alberta, Canada            | President and Chief Executive OfficerMr. Stadnyk’s biographical information is included under “Directors”                                                                                                                      |
| P. Van R. DafoeCalgary, Alberta, Canada             | Senior Vice President and Chief Financial OfficerMr. Dafoe is the Senior Vice President and Chief Financial Officer of ARC Resources. Prior to February 2014, he was ARC’s Senior Vice President, Finance.                                 |
| Terry M. AndersonCalgary, Alberta, Canada           | Senior Vice President and Chief Operating OfficerMr. Anderson is the Senior Vice President and Chief Operating Officer of ARC Resources. Prior to January 2014, he was ARC’s Senior Vice President, Engineering.                           |
| Bevin M. WirzbaCalgary, Alberta, Canada             | Senior Vice President, Business Development and Capital MarketsMr. Wirzba is the Senior Vice President, Business Development and Capital Markets of ARC Resources. Prior to January 2016, he was a Managing Director at RBC Dominion Securities. |
| Kristen J. BibbyCalgary, Alberta, Canada            | Vice President, FinanceMr. Bibby is the Vice President, Finance of ARC Resources. Prior to August 2014, he was Vice President, Finance and Chief Financial Officer at Verano Energy Limited.                                                     |
| Sean R. A. CalderCalgary, Alberta, Canada           | Vice President, ProductionMr. Calder is the Vice President, Production of ARC Resources. Prior to September 2013, he was the Manager, Technical Operations North at ARC.                                                                         |
| Larissa M. Conrad (4)Calgary, Alberta, Canada  | Vice President, Engineering and PlanningMs. Conrad is the Vice President, Engineering of ARC Resources. Prior to February 2014, she was Manager Engineering South at ARC.                                                                        |
| Neil A. Groeneveld (5)Calgary, Alberta, Canada | Vice President, Geosciences and ExplorationMr. Groeneveld was the Vice President Geosciences and Exploration of ARC Resources.                                                                                                                   |
| Wayne D. Lentz (6)Calgary, Alberta, Canada     | Vice President, Business AnalysisMr. Lentz was the Vice President Strategy and Business Development at ARC Resources. Prior to December 2016, he was ARC’s the Vice President Strategy and Business Development.                           |
| Karen A. Nielsen (7)Calgary, Alberta, Canada        | Vice President, OperationsMs. Nielsen is the Vice President, Operations of ARC Resources. Prior to August 2013, she was the Vice President, Engineering at Birchcliff Energy Ltd.                                                                |
| Lisa A. OlsenCalgary, Alberta, Canada               | Vice President, Human ResourcesMs. Olsen is the Vice President, Human Resources of ARC Resources. Prior to January 2016, she was ARC’s Manager of Human Resources.                                                                         |
| Grant A. Zawalsky (8)Calgary, Alberta, Canada  | Managing PartnerMr. Zawalsky is the Managing Partner at Burnet, Duckworth & Palmer LLP (law firm)                                                                                                                                       |

----

Table of Contents

| 1) | Subsequent to 2016 year-end, Christopher D. Baldwin was promoted to the position of Vice President, Geosciences effective January 1, 2017. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------|

| 2) | Subsequent to 2016 year-end, Ryan V. Berrett was promoted to the position of Vice President, Marketing effective January 1, 2017 |
|----|----------------------------------------------------------------------------------------------------------------------------------|

| 3) | Subsequent to 2016 year-end, Armin Jahangiri was promoted to Vice President, Operations effective March 9, 2017. |
|----|------------------------------------------------------------------------------------------------------------------|

| 4) | Subsequent to 2016 year-end Larissa M. Conrad’s title changed to Vice President, Engineering and Planning. |
|----|------------------------------------------------------------------------------------------------------------------|

| 5) | As of December 31, 2016, Neil A. Groeneveld retired from ARC Resources. |
|----|-------------------------------------------------------------------------|

| 6) | Subsequent to 2016 year-end Wayne D. Lentz’s title changed to Vice President, Business Analysis |
|----|-------------------------------------------------------------------------------------------------------|

| 7) | Subsequent to 2016 year-end, Karen A. Nielsen ceased to be an employee of ARC as of March 1, 2017. |
|----|----------------------------------------------------------------------------------------------------|

| 8) | Grant A. Zawalsky is not considered to be an “executive officer” of ARC as defined by NI 51-102 as he does not perform a policy-making function in respect of the Corporation. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name of Director          | Audit   | Reserves | Risk    | Human Resources & Compensation | Policy & Board Governance | Health, Safety & Environment |
|---------------------------|---------|----------|---------|------------------------------------|-------------------------------|----------------------------------|
| Non-Independent Directors |    |     |    |                               |                          |
| John P. Dielwart          |    | √  |    |                               |                          | Chair                            |
| Independent Directors     |    |     |    |                               |                          |
| David R. Collyer          |    |     | √ |                               |                          | √                          |
| Fred J. Dyment            |    |     | Chair   |                               | √                       |                             |
| Timothy J. Hearn          |    |     |    | Chair                              | √                       |                             |
| James C. Houck            | √ | Chair    |    |                               |                          |                             |
| Harold N. Kvisle          |    |     |    |                               | √                       |                             |
| Kathleen M. O'Neill       | Chair   | √  |    |                               |                          |                             |
| Herbert C. Pinder, Jr.    |    |     |    | √                            | Chair                         |                             |
| William G. Sembo          |    |     |    | √                            |                          | √                          |
| Nancy Smith               | √ |     | √ |                               |                          |                             |

----

Table of Contents

----

Table of Contents

----

Table of Contents

| AUDIT COMMITTEE DISCLOSURES |
|-----------------------------|

----

Table of Contents

| Summary of External Audit and Non-Audit Service Fees |   | 2015   |    |   | 2016   |   |
|------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Audit Fees                                           |   | $      | 872,585 |   |   | $      | 694,430 |   |
| Audit Related Fees (1)                               |   | $      | 70,727  |   |   |   | - |   |
| Tax Fees (2)                                         |   |   | -       |   |   | $      | 14,499 |   |
| All Other Fees (3)                                   |   | $      | 18,781  |   |   | $      | 17,452 |   |

| 1) | The aggregate fees billed by our external auditor for assurance and related services that are reasonably related to the performance of the audit or review of the financial statements but which are not included in audit services fees. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2) | The aggregate fees billed by our external auditor for professional services for various tax advice. |
|----|-----------------------------------------------------------------------------------------------------|

| 3) | The assessment fee billed by The Canadian Public Accountability Board per the National Instrument 52-108 Auditor Oversight mandate for reporting issuers to have an audit completed by a CPAB participant firm. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| CONFLICTS OF INTEREST |
|-----------------------|

----

Table of Contents

| INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS |
|------------------------------------------------------------|
| DIVIDENDS AND DISTRIBUTIONS |
|-----------------------------|
| Dividends |   | 2016 |   |   | 2015   |   |   | 2014   |   |
|-----------|--------|------|--------|--------|--------|--------|--------|--------|--------|
| January   |   | $    | 0.10   |   |   | $      | 0.10   |   |   | $ | 0.10 |   |
| February  |   | $    | 0.05   |   |   | $      | 0.10   |   |   | $ | 0.10 |   |
| March     |   | $    | 0.05   |   |   | $      | 0.10   |   |   | $ | 0.10 |   |
| April     |   | $    | 0.05   |   |   | $      | 0.10   |   |   | $ | 0.10 |   |
| May       |   | $    | 0.05   |   |   | $      | 0.10   |   |   | $ | 0.10 |   |
| June      |   | $    | 0.05   |   |   | $      | 0.10   |   |   | $ | 0.10 |   |
| July      |   | $    | 0.05   |   |   | $      | 0.10   |   |   | $ | 0.10 |   |
| August    |   | $    | 0.05   |   |   | $      | 0.10   |   |   | $ | 0.10 |   |
| September |   | $    | 0.05   |   |   | $      | 0.10   |   |   | $ | 0.10 |   |
| October   |   | $    | 0.05   |   |   | $      | 0.10   |   |   | $ | 0.10 |   |
| November  |   | $    | 0.05   |   |   | $      | 0.10   |   |   | $ | 0.10 |   |
| December  |   | $    | 0.05   |   |   | $      | 0.10   |   |   | $ | 0.10 |   |
| Total     |   | $    | 0.65   |   |   | $      | 1.20   |   |   | $ | 1.20 |   |

----

Table of Contents

| MARKET FOR SECURITIES |
|-----------------------|
| Toronto Stock Exchange |   | High   |   |   | Low    |   |   | Volume |   |
|------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| January                |   |   | 18.76  |   |   |   | 15.04  |   |   |   | 47,960,000 |   |
| February               |   |   | 19.04  |   |   |   | 16.60  |   |   |   | 50,800,000 |   |
| March                  |   |   | 19.65  |   |   |   | 17.96  |   |   |   | 43,860,000 |   |
| April                  |   |   | 21.17  |   |   |   | 17.61  |   |   |   | 44,440,000 |   |
| May                    |   |   | 21.62  |   |   |   | 20.12  |   |   |   | 34,980,000 |   |
| June                   |   |   | 23.07  |   |   |   | 20.24  |   |   |   | 40,170,000 |   |
| July                   |   |   | 23.47  |   |   |   | 21.57  |   |   |   | 27,590,000 |   |
| August                 |   |   | 23.83  |   |   |   | 22.21  |   |   |   | 25,300,000 |   |
| September              |   |   | 23.73  |   |   |   | 21.07  |   |   |   | 27,780,000 |   |
| October                |   |   | 24.27  |   |   |   | 22.77  |   |   |   | 27,580,000 |   |
| November               |   |   | 24.05  |   |   |   | 22.11  |   |   |   | 33,730,000 |   |
| December               |   |   | 24.29  |   |   |   | 22.80  |   |   |   | 31,290,000 |   |

----

Table of Contents

| INDUSTRY CONDITIONS |
|---------------------|

----

Table of Contents

| Alberta Royalty Regimes Summary                                                                           |
|-----------------------------------------------------------------------------------------------------------|
| Royalty Regime                                                                                            | Product | Incentive Period | Post Incentive or Mid-Lid (MRF) | Mature Phase |
| ARF – Royalty formulas base on price and production                                                 | Oil | 5% | 0% to 40% |
| Gas                                                                                                       | 5% to 36% |
| Liquids – C3 & C4 / C5+                                                                         | Flat 30% / Flat 40% |
| MRF – Royalty formulas based on price with a reduction for lower production during the mature phase | Oil / Cond / C5+ | Pre-payout 5% | 10% to 40% | Minimum 5% |
| Gas                                                                                                       | 5% to 36% |
| C3 /C4                                                                                                    | 10% to 36% |

----

Table of Contents

|  | · | Deep Well Royalty Credit Program, which provides a royalty credit for natural gas wells defined in terms of a dollar amount applied against royalties, and is well specific based on drilling and completion depths. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | The Government of British Columbia also maintains an Infrastructure Royalty Credit Program that provides royalty credits for up to 50 per cent of the cost of certain approved road construction or pipeline infrastructure projects intended to facilitate increased oil and gas exploration and production in under-developed areas and to extend the drilling season. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

----

Table of Contents

| 1. | The AER will consider and process all applications for licence eligibility under Directive 067: Applying for Approval to Hold EUB Licences as non-routine and may exercise its discretion to refuse an application or impose terms and conditions on a licencee eligibility approval if appropriate in the circumstances. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | For holders of existing but previously unused licence eligibility approvals, prior to approval of any application (including licence transfer applications), the AER may require evidence that there have been no material changes since approving the licence eligibility. This may include evidence that the holder continues to maintain adequate insurance and that the Directors, Officers, and/or Shareholders are substantially the same as when licence eligibility was originally granted. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | As a condition of transferring existing AER licences, approvals, and permits, the AER will require all transferees to demonstrate that they have a liability management rating ("LMR"), being the ratio of a licensee's assets to liabilities, of 2.0 or higher immediately following the transfer. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1. | The licensee already has an LMR of 2.0 or higher; |
|----|---------------------------------------------------|

| 2. | The acquisition will improve the licensee's LMR to 2.0 or higher; or |
|----|----------------------------------------------------------------------|

| 3. | The licensee is able to satisfy its obligations, notwithstanding an LMR below 2.0, by other means. |
|----|----------------------------------------------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

----

Table of Contents

| RISK FACTORS |
|--------------|

----

Table of Contents

----

Table of Contents

----

Table of Contents

|  | · | availability of processing capacity; |
|--|--------|--------------------------------------|

|  | · | availability and proximity of pipeline capacity; |
|--|--------|--------------------------------------------------|

|  | · | availability of storage capacity; |
|--|--------|-----------------------------------|

|  | · | supply of and demand for crude oil and natural gas; |
|--|--------|-----------------------------------------------------|

|  | · | availability of alternative fuel sources; |
|--|--------|-------------------------------------------|

|  | · | effects of inclement weather; |
|--|--------|-------------------------------|

|  | · | availability of drilling and completions related equipment and resources; |
|--|--------|---------------------------------------------------------------------------|

|  | · | unexpected cost increases; |
|--|--------|----------------------------|

|  | · | accidental events; |
|--|--------|--------------------|

|  | · | changes in regulations; and |
|--|--------|-----------------------------|

|  | · | availability and productivity of skilled labour. |
|--|--------|--------------------------------------------------|

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

| TRANSFER AGENT AND REGISTRAR |
|------------------------------|
| MATERIAL CONTRACTS |
|--------------------|

|  | 1. | Uncommitted Master Shelf Agreement dated as of November 16, 2000 between ARC Resources and various purchasers, as amended and restated on December 15, 2005 and as amended and restated on September 25, 2014 providing for the issuance and sale of up to an aggregate principal amount of US$350 million in notes of which US$9.4 million 5.42% Series C Notes due December 15, 2017, US$30.0 million 4.98% Series D Notes due March 5, 2019 and US$150 million 3.72% Series E Notes due September 25, 2026 are currently outstanding. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | Note Purchase Agreement dated as of April 14, 2009 between ARC Resources and various purchasers, as amended January 1, 2011 with respect to US$67.5 million 7.19% Series C Notes due April 14, 2016, US$35 million 8.21% Series D Notes due April 14, 2021 and Cdn$29 million 6.50% Series E Notes due April 14, 2016 of which US$0 million, US$35 million and Cdn$0 million, respectively, are currently outstanding. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3. | Note Purchase Agreement dated as of May 27, 2010 between ARC Resources and various purchasers, as amended January 1, 2011 with respect to US$150 million 5.36% Series F Notes due May 27, 2022, of which US$150 million is currently outstanding. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 4. | Note Purchase Agreement dated as of August 23, 2012 between ARC Resources and various purchasers with respect to US$60 million 3.31% Series G Notes due August 23, 2021, US$300 million 3.81% Series H Notes due August 23, 2024 and Cdn$40 million 4.49% Series I Notes due August 23, 2024, of which US$60 million, US$300 million and Cdn$40 million, respectively, is currently outstanding. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| INTEREST OF EXPERTS |
|---------------------|
| ADDITIONAL INFORMATION |
|------------------------|

----

Table of Contents

| 1. | We have evaluated the Company’s reserves data, and contingent resources data as at December 31, 2016. The reserves data are estimates of proved reserves and probable reserves and related future net revenue as at December 31, 2016, estimated using forecast prices and costs. The contingent resources data are risked estimates of volume of contingent resources and related risked net present value of future net revenue as at December 31, 2016, estimated using forecast prices and costs. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | The reserves data, and contingent resources data are the responsibility of the Company’s management. Our responsibility is to express an opinion on the reserves data, and contingent resources data based on our evaluation. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | We carried out our evaluation in accordance with standards set out in the Canadian Oil and Gas Evaluation Handbook as amended from time to time (the “COGE Handbook”) maintained by the Society of Petroleum Evaluation Engineers (Calgary Chapter). |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Those standards require that we plan and perform an evaluation to obtain reasonable assurance as to whether the reserves data, and contingent resources data are free of material misstatement. An evaluation also includes assessing whether the reserves data, contingent resources data are in accordance with principles and definitions presented in the COGE Handbook. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | The following table shows the net present value of future net revenue (before deduction of income taxes) attributed to proved plus probable reserves, estimated using forecast prices and costs and calculated using a discount rate of 10 percent, included in the reserves data of the Company evaluated for the year ended December 31, 2016, and identifies the respective portions thereof that we have evaluated and reported on to the Company's Board of Directors: |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  IndependentQualifiedReservesEvaluatoror Auditor |  EffectiveDate ofEvaluationReport(MM/DD/YY) | Location ofReserves(Countryor ForeignGeographicArea) | Net Present Value of Future Net Revenue(before income taxes, 10% discount rate – M$) |
|-------------------------------------------------------|--------------------------------------------------|------------------------------------------------------|--------------------------------------------------------------------------------------------|
|   Audited                                   |   Evaluated                            |   Reviewed                                 |   Total                                                                          |
| GLJ PetroleumConsultants                              | 12/31/16                                         | Canada                                               | -                                                                                          | 5,832,486 | - | 5,832,486 |

| 6. | The following tables set forth the risked volume and risked net present value of future net revenue of contingent resources (before deduction of income taxes) attributed to contingent resources, estimated using forecast prices and costs and calculated using a discount rate of 10 percent, included in the Company's statement prepared in accordance with Form 51-101F1 and identifies the respective portions of the contingent resources data that we have evaluated and reported on to the Company's Board of Directors: |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|        Classification |    IndependentQualifiedReservesEvaluatoror Auditor |    EffectiveDate ofEvaluationReport(MM/DD/YY) | Location ofResourcesOther thanReserves(Countryor ForeignGeographicArea) |   | Risked Net Present Valueof Future Net Revenue(before income taxes,10% discount rate – M$) |
|----------------------------------------------------------|-------------------------------------------------------------------|--------------------------------------------------------------|-------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|
|  RiskedVolume(MMboe)                                |    Audited                                         |    Evaluated                                  |    Total                                                 |
| DevelopmentPendingContingentResources(2C)                | GLJ PetroleumConsultants                                          | 12/31/16                                                     | Canada                                                                  | 528.9  |                                                                                            | 1,831,085 | 1,831,085 |
|     Classification      | IndependentQualifiedReservesEvaluatoror Auditor | EffectiveDate ofEvaluationReport(MM/DD/YY) | Location ofResources Otherthan Reserves(Country or ForeignGeographic Area) |   RiskedVolume(MMboe) |
|---------------------------------------------|-------------------------------------------------|--------------------------------------------|----------------------------------------------------------------------------|---------------------------------|
| Contingent ResourcesDevelopment Unclarified | GLJ PetroleumConsultants                        | 12/31/16                                   | Canada                                                                     | 914.3                           |
| Contingent ResourcesDevelopment Not Viable  | GLJ PetroleumConsultants                        | 12/31/16                                   | Canada                                                                     | 143.7                           |

| 7. | In our opinion, the reserves data, and contingent resources data respectively evaluated by us have, in all material respects, been determined and are in accordance with the COGE Handbook, consistently applied. We express no opinion on the reserves data and contingent resources data that we reviewed but did not audit or evaluate. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | We have no responsibility to update our reports referred to in paragraphs 5 and 6 for events and circumstances occurring after the effective date of our reports. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | Because the reserves data, and contingent resources data are based on judgements regarding future events, actual results will vary and the variations may be material. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| “Originally Signed by” |
|------------------------------------|
| Bryan M. Joa, P. Eng.              |
| Vice President                     |

----

Table of Contents

|  | a) | reviewed the Company's procedures for providing information to the independent qualified reserves evaluator; |
|--|----|--------------------------------------------------------------------------------------------------------------|

|  | b) | met with the independent qualified reserves evaluator to determine whether any restrictions affected the ability of the independent qualified reserves evaluator to report without reservation; and |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c) | reviewed the reserves data, and contingent resources data with management and the independent qualified reserves evaluator. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------|

|  | a) | the content and filing with securities regulatory authorities of Form 51-101F1 containing reserves data, contingent resources data, and other oil and gas information; |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b) | the filing of Form 51-101F2 which is the report of the independent qualified reserves evaluator on the reserves data, contingent resources data, prospective resources data; and |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c) | the content and filing of this report. |
|--|----|----------------------------------------|

| (signed) “Myron Stadnyk”              | (signed) “Terry Anderson”             |
|---------------------------------------------------|---------------------------------------------------|
| Myron Stadnyk                                     | Terry Anderson                                    |
| President and Chief Executive Officer             | Senior Vice President and Chief Operating Officer |
|                                              |                                              |
| (signed) “James Houck”                | (signed) "Kathleen O’Neill"                 |
| James Houck                                       | Kathleen O’Neill                            |
| Director and Chair of the Reserves Committee | Director and Member of the Reserves Committee     |
|                                              |                                              |
| March 8, 2017                                     |                                              |

----

Table of Contents

|                                 |        | Contingent Resources (1)(2)(3) |    |
|--------------------------------------|-------------|--------------------------------|---------|
| Resources Project Maturity Sub-Class |        | Tight Oil                      |    |   | Shale Gas |   |   | NGLs |   |   | Oil Equivalent |   |
|                                 | Gross(Mbbl) |                           |    | Net(Mbbl) |   |   | Gross(Bcf) |   |   | Net(Bcf) |   |   | Gross(Mbbl) |   |   | Net(Mbbl) |   |   | Gross(Mboe) |   |   | Net(Mboe) |   |
| Contingent (2C)                      |        |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Development Pending                  |        |                           | 39,905  |   |   |   | 34,403 |   |   |   | 2,613 |   |   |   | 2,088 |   |   |   | 53,500 |   |   |   | 44,168 |   |   |   | 528,947 |   |   |   | 426,616 |   |
| Development Unclarified              |        |                           | 106,897 |   |   |   | N/A |   |   |   | 3,570 |   |   |   | N/A |   |   |   | 212,468 |   |   |   | N/A |   |   |   | 914,308 |   |   |   | N/A |   |
| Total Economic Contingent Resources  |        |                           | 146,802 |   |   |   | N/A |   |   |   | 6,183 |   |   |   | N/A |   |   |   | 265,968 |   |   |   | N/A |   |   |   | 1,443,255 |   |   |   | N/A |   |
| DevelopmentNot Viable                |        |                           | 1,140   |   |   |   | N/A |   |   |   | 569 |   |   |   | N/A |   |   |   | 47,637 |   |   |   | N/A |   |   |   | 143,664 |   |   |   | N/A |   |

| 1) | All volumes listed in the table are risked, company gross sales volumes. |
|----|--------------------------------------------------------------------------|

| 2) | Refer to “Resource Definitions” in this Appendix C for detailed definitions of Contingent Resources, Development Pending, Development Unclarified and Development Not Viable. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3) | Net values are only stated for Development Pending. Net values for the remaining sub-classes are N/A as economics were not run, therefore net volumes were not determined. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                             |   | Risked Net Present Value of Future Net Revenue (1) |   |
|--------------------------------------------------|--------|----------------------------------------------------|--------|
| Resources Project Maturity Sub-Class($ millions) |   | Before Income TaxesDiscounted at % per Year        |   |   | After Income TaxesDiscounted at % per Year |   |
|                                             |   | 0                                                  |   |   |   | 5 |   |   |   | 10 |   |   |   | 15 |   |   |   | 20 |   |   |   | 0 |   |   |   | 5 |   |   |   | 10 |   |   |   | 15 |   |   |   | 20 |   |
| Contingent (2C) Development Pending              |   |                                               | 10,693 |   |   |   | 4,068 |   |   |   | 1,831 |   |   |   | 925 |   |   |   | 508 |   |   |   | 7,841 |   |   |   | 2,924 |   |   |   | 1,277 |   |   |   | 620 |   |   |   | 323 |   |

| 1) | NPV as per GLJ Independent Resources Evaluation as of December 31, 2016 and based on GLJ forecast pricing at January 1, 2017. |
|----|-------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|  | - | Economic Factor: for Development Pending the associated development projects had robust economics (i.e. strong rate of returns), and as such were assigned a factor of one. The remaining CR sub-classes have factors ranging from 0.75 to 1.0. |
|--|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | Technology Factor: ARC’s NEBC Montney will be developed utilizing established technology, therefore, a technology factor of one is utilized for all resource CR sub-classes. |
|--|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | Development Plan Factor: detailed development plans and costs were prepared and are in place. This factor ranges from 0.90 to 1.0 for Development Pending CR. Factors less than one account for projects where final pad placement and well locations are less certain. For the remaining CR sub-classes, the Development Plan Factors range from 0.70 to 0.95 based on the level of details provided. |
|--|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|  | - | Development Timeframe Factor: several core areas within the Evaluated Areas have portions of the PIIP volume developed and producing, with proved and probable reserves assigned. Timing for the CR portions of these projects will depend on the pace of continued development (including allocation of funds), available throughput capacity in existing facilities, or construction of additional facilities. Development Pending projects have been assigned Development Timeframe Factors ranging from 0.90 to 0.95 reflecting the apparent certainty in timing estimates. For the remaining CR sub-classes, the Timeframe Factors assigned range from 0.70 to 0.90. |
|--|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | Other Contingency Factor: for reserves to be assessed, all contingencies must be eliminated. With respect to contingent resources, this factor captures major contingencies, usually beyond the control of ARC, other than those captured by economic status, technology status, project evaluation scenario status and the development timeframe. The Other Contingency Factor has been assessed as one for all CR sub-classes. |
|--|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2016 Contingent ResourcesRisked CR, Unrisked CR and Chance of Development (1)(2) |   | Chance of Development |   |   | Best Estimate Unrisked |   |    | Best Estimate Risked |   |
|----------------------------------------------------------------------------------|--------|-----------------------|--------|--------|------------------------|--------|---------|----------------------|--------|
| Shale Gas (Tcf)                                                                  |   |                  |   |   |                   |   |    |                 |   |
| Development Pending CR                                                           |   |                  | 91     | %      |                   |   | 2.9     |                 |   |   | 2.6 |   |
| Development Unclarified CR                                                       |   |                  | 74     | %      |                   |   | 4.9     |                 |   |   | 3.6 |   |
| Development Not Viable CR                                                        |   |                  | 46     | %      |                   |   | 1.2     |                 |   |   | 0.6 |   |
| NGLs (MMbbl)                                                                     |   |                  |   |   |                   |   |    |                 |   |   |   |   |
| Development Pending CR                                                           |   |                  | 91     | %      |                   |   | 58.6    |                 |   |   | 53.5 |   |
| Development Unclarified CR                                                       |   |                  | 74     | %      |                   |   | 286.7   |                 |   |   | 212.5 |   |
| Development Not Viable CR                                                        |   |                  | 49     | %      |                   |   | 97.7    |                 |   |   | 47.6 |   |
| Tight Oil (MMbbl)                                                                |   |                  |   |   |                   |   |    |                 |   |   |   |   |
| Development Pending CR                                                           |   |                  | 95     | %      |                   |   | 42.0    |                 |   |   | 39.9 |   |
| Development Unclarified CR                                                       |   |                  | 69     | %      |                   |   | 154.3   |                 |   |   | 106.9 |   |
| Development Not Viable CR                                                        |   |                  | 95     | %      |                   |   | 1.2     |                 |   |   | 1.1 |   |
| Total (MMboe)                                                                    |   |                  |   |   |                   |   |    |                 |   |   |   |   |
| Development Pending CR                                                           |   |                  | 92     | %      |                   |   | 577.3   |                 |   |   | 528.9 |   |
| Development Unclarified CR                                                       |   |                  | 73     | %      |                   |   | 1,249.7 |                 |   |   | 914.3 |   |
| Development Not Viable CR                                                        |   |                  | 47     | %      |                   |   | 303.1   |                 |   |   | 143.7 |   |

| 1) | All volumes listed in the table are company gross sales volumes. |
|----|------------------------------------------------------------------|

| 2) | Refer to “Resource Definitions” in this Appendix C for detailed definitions of Contingent Resources, Development Pending, Development Unclarified and Development Not Viable. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| a) | Fundamental Resource Definitions |
|----|----------------------------------|

| b) | Uncertainty Categories for Resource Estimates |
|----|-----------------------------------------------|

----

Table of Contents

| c) | Discovered and Commercial Status and Risks Associated with Resource Estimates |
|----|-------------------------------------------------------------------------------|

|  | · | economic viability of the related development project; |
|--|--------|--------------------------------------------------------|

|  | · | a reasonable expectation that there will be a market for the expected sales quantities of production required to justify development; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|  | · | evidence that the necessary production and transportation facilities are available or can be made available; |
|--|--------|--------------------------------------------------------------------------------------------------------------|

|  | · | evidence that legal, contractual, environmental, governmental, and other social and economic concerns will allow for the actual implementation of the recovery project being evaluated; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a reasonable expectation that all required internal and external approvals will be forthcoming. Evidence of this may include items such as signed contracts, budget approvals, and approvals for expenditures, etc.; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | evidence to support a reasonable timetable for development. A reasonable time frame for the initiation of development depends on the specific circumstances and varies according to the scope of the project. While five years is recommended as a maximum time frame for classification of a project as commercial, a longer time frame could be applied where, for example, development of economic projects are deferred at the option of the producer for, among other things, market-related reasons or to meet contractual or strategic objectives. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| d) | Recovery Technology Status |
|----|----------------------------|

| e) | Economic Status of Resource Estimates |
|----|---------------------------------------|

| f) | Project Maturity Sub-Classes for Contingent Resources |
|----|-------------------------------------------------------|

----

Table of Contents

|  | · | To assist Directors to meet their responsibilities in respect of the preparation and disclosure of the financial statements of the Corporation and related matters. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | To provide better communication between Directors and external auditors. |
|--|--------|--------------------------------------------------------------------------|

|  | · | To ensure the external auditors' independence. |
|--|--------|------------------------------------------------|

|  | · | To review management’s implementation and maintenance of an effective system of internal control over financial reporting and disclosure control over financial reporting. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | To increase the credibility and objectivity of financial reports. |
|--|--------|-------------------------------------------------------------------|

|  | · | To facilitate in-depth discussions between Directors on the Committee, management and external auditors. |
|--|--------|----------------------------------------------------------------------------------------------------------|

| 1. | It is a primary responsibility of the Committee to review and recommend for approval to the Board of Directors the annual and quarterly financial statements of the Corporation.  The Committee is also to review and recommend to the Board of Directors for approval the financial statements and related information included in prospectuses, management discussion and analysis (MD&A), financial press releases, information circular-proxy statements and annual information forms (AIF). The process should include but not be limited to: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | a. | reviewing changes in accounting principles, or in their application, which may have a material impact on the current or future years' financial statements; |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b. | reviewing significant management judgments and estimates that may be material to financial reporting including alternative treatments and their impacts; |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c. | reviewing the presentation and impact of any significant risks and uncertainties that may be material to financial reporting including alternative treatments and their impacts; |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | d. | reviewing accounting treatment of significant, unusual or non-recurring transactions; |
|--|----|---------------------------------------------------------------------------------------|

|  | e. | reviewing adjustments raised by the external auditors, whether or not included in the financial statements; |
|--|----|-------------------------------------------------------------------------------------------------------------|

|  | f. | reviewing unresolved differences between management and the external auditors; |
|--|----|--------------------------------------------------------------------------------|

|  | g. | determining through inquiry if there are any related party transactions and ensure the nature and extent of such transactions are properly disclosed; and |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|  | h. | reviewing all financial reporting relating to risk exposure including the identification, monitoring and mitigation of business risk and its disclosure. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | The Committee shall satisfy itself that adequate procedures are in place for the review of the Corporation's public disclosure of financial information from the Corporation's financial statements and periodically assess the adequacy of those procedures. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | It is the responsibility of the Committee to satisfy itself on behalf of the Board with respect to the Corporation's internal control over financial reporting and information systems.  The process should include but not be limited to: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | a. | inquiring as to the adequacy and effectiveness of the Corporation’s system of internal controls over financial reporting and review the evaluation of internal controls over financial reporting by external auditors; |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b. | establishing procedures for the confidential, anonymous submission by employees of the Corporation of concerns relating to accounting, internal control over financial reporting, auditing or Code of Business Conduct and Ethics matters and periodically review a summary of complaints and their related resolution; and |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c. | establishing procedures for the receipt, retention and treatment of complaints received by the Corporation regarding accounting, internal accounting controls, or auditing matters. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | It is the responsibility of the Committee to satisfy itself on behalf of the Board to review management’s process for certification under the Extractive Sector Transparency Measures Act (Canada). |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | With respect to the appointment of external auditors by the Board, the Committee shall: |
|----|-----------------------------------------------------------------------------------------|

|  | a. | be directly responsible for overseeing the work of the external auditors engaged for the purpose of issuing an auditors' report or performing other audit, review or attest services for the Corporation, including the resolution of disagreements between management and the external auditor regarding financial reporting; |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b. | review the terms of engagement of the external auditors, including the appropriateness and reasonableness of the auditors' fees; |
|--|----|----------------------------------------------------------------------------------------------------------------------------------|

|  | c. | review and evaluate annually the external auditors’ performance, and periodically, (at least every five years) conduct a comprehensive review of the external auditor; |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | d. | recommend to the Board appointment of external auditors and the compensation of the external auditors; |
|--|----|--------------------------------------------------------------------------------------------------------|

|  | e. | when there is to be a change in auditors, review the issues related to the change and the information to be included in the required notice to securities regulators of such change; |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | f. | review and approve any non-audit services to be provided by the external auditors' firm and consider the impact on the independence of the auditors; between scheduled meetings, the Chair of the Committee is authorized to approve all audit related services and non-audit services provided by the external auditors for individual engagements with estimated fees of $50,000 and under; and shall report all such approvals to the Committee at its next scheduled meeting; |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | g. | inquire as to the independence of the external auditors and obtain, at least annually, a formal written statement delineating all relationships between the external auditors and the Corporation as contemplated by Independence Standards Board No. 1; |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | h. | review the Annual Report of the Canadian Public Accountability Board (“CPAB”) concerning audit quality in Canada and discuss implications for the Corporation; |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | i. | review any reports issued by CPAB regarding the audit of the Corporation; and |
|--|----|-------------------------------------------------------------------------------|

|  | j. | discuss with the external auditors, without management being present, the quality of the Corporation’s financial and accounting personnel, the completeness and accuracy of the Corporation’s financial |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| 6. | The Committee shall review with the external auditors (and the internal auditor if one is appointed by the Corporation) their assessment of the internal control over financial reporting of the Corporation, their written reports containing recommendations for improvement of internal control over financial reporting and other suggestions as appropriate, and management's response and follow-up to any identified weaknesses. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | The Committee shall also review and approve annually with the external auditors their plan for their audit and, upon completion of the audit, their reports upon the financial statements of the Corporation and its subsidiaries. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | It is the responsibility of the Committee to review management’s process for the certification of annual and interim financial reports in accordance with required securities legislation. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | It is the responsibility of the Committee to ascertain compliance with covenants under loan agreements. |
|----|---------------------------------------------------------------------------------------------------------|

| 10. | The Committee shall review the Corporation’s compliance with all legal and regulatory requirements as it pertains to financial reporting, taxation, internal control over financial reporting and any other area the Committee considers to be appropriate relative to its mandate or as may be requested by the Board of Directors. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | It is the responsibility of the Committee to review and approve the Corporation's hiring policies regarding partners, employees and former partners and employees of the present and external auditors of the Corporation. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12. | The Committee may also review any other matters that the Audit Committee feels are important to its mandate or that the Board chooses to delegate to it. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13. | The Committee shall undertake annually a review of this mandate and make recommendations to the Policy and Board Governance Committee as to proposed changes. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14. | This Committee shall be composed of at least three individuals appointed by the Board from amongst its members, all of which members will be independent (within the meaning of Section 1.4 and 1.5 of National Instrument 52-110 Audit Committees) unless the Board determines to rely on an exemption in NI 52-110.  “Independent” generally means free from any business or other direct or indirect material relationship with the Corporation that could, in the view of the Board, be reasonably expected to interfere with the exercise of the member's independent judgment. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15. | The Chair of the Committee is appointed by the Board of Directors. |
|-----|--------------------------------------------------------------------|

| 16. | A quorum shall be a majority of the members of the Committee. |
|-----|---------------------------------------------------------------|

| 17. | All of the members must be financially literate within the meaning of NI 52-110 unless the Board has determined to rely on an exemption in NI 52-110.  Being “financially literate” means members have the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the Corporation's financial statements. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18. | The Committee shall meet at least four times per year and/or as deemed appropriate by the Committee Chair. |
|-----|------------------------------------------------------------------------------------------------------------|

| 19. | The Committee shall meet not less than quarterly with the auditors, independent of the presence of management. |
|-----|----------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| 20. | Agendas, with input from management, shall be circulated to Committee members and relevant management personnel along with background information on a timely basis prior to the Committee meetings. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21. | The Chief Executive Officer and the Chief Financial Officer or their designates shall be available to attend at all meetings of the Committee upon the invitation of the Committee. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22. | The Controller and such other staff as appropriate to provide information to the Committee shall attend meetings upon invitation by the Committee. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 23. | Following each meeting, in addition to a verbal report, the Committee will report to the Board by way of providing copies of the minutes of such Committee meeting at the next Board meeting after a meeting is held (these may still be in draft form). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24. | Supporting schedules and information reviewed by the Committee shall be available for examination by any director. |
|-----|--------------------------------------------------------------------------------------------------------------------|

| 25. | The Committee shall have the authority to investigate any financial activity of the Corporation and to communicate directly with the internal and external auditors.  All employees are to cooperate as requested by the Committee. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26. | The Committee may retain, and set and pay the compensation for, persons having special expertise and/or obtain independent professional advice to assist in fulfilling its duties and responsibilities at the expense of the Corporation. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----