Pipestone Announces That ISS Reaffirms Recommendation That Shareholders Vote “FOR” Proposed Combination With Strathcona to Create a Leading Canadian Energy Producer; ISS Says Dissident’s Arguments “Do Not Appear Well Supported” - Seite 2

The independent committee (the “Special Committee”) of the Board and the Board have determined that the Arrangement is in the best interests of Pipestone and the Shareholders and it has the full, signed backing of management of Pipestone.

“We are pleased to see the continued support for the Arrangement from independent parties such as ISS. Management fully supports the Arrangement which we believe is superior to the status quo, significantly reducing the go-forward technical risk of the business while allowing Pipestone shareholders to participate in future upside," said Dustin Hoffman, Chief Operating Officer and Interim President and Chief Executive Officer of Pipestone.

The determinations of the Special Committee and the Board came after an extensive and robust strategic review process that considered all alternatives available to Pipestone, including the arguments and options put forward by GMT, and was supported by the advice of Pipestone’s financial and legal advisors.

The 18-month strategic review process that began in early 2022 evaluated over 75 potential counterparties. In February 2023 Pipestone received an initial proposal from Strathcona. The terms of the Strathcona proposal were improved through several revised proposals. The definitive arrangement agreement with Strathcona was signed on July 31, 2023 and includes support agreements from management and Riverstone Holdings LLC, a significant and highly sophisticated shareholder in Pipestone.

Throughout Pipestone’s thorough strategic review process, the Special Committee and the Board consistently compared the Strathcona transaction to the status quo as a standalone single-asset producer, and against other potential alternatives for the Company. Those included alternatives identified during the long and robust strategic review process and included those put forward by GMT.

The recommendations that Shareholders vote “FOR” the Arrangement by the independent proxy advisory firms ISS and Glass Lewis underscore the Board’s recommendation. The job of ISS and Glass Lewis is to review transaction terms and process in detail and offer proxy voting guidance to investment managers, mutual funds, pension funds, and other institutional investors.

Pipestone once again thanks Shareholders for the strong support they have shown so far by voting FOR the Arrangement and encourages all Shareholders to vote FOR the Arrangement before 10:00 a.m. (Calgary time) on Monday, September 25, 2023. Details on how to do so can be found below.