Pipestone Energy Corp. Announces Appointment of New Director, Distribution of Common Shares By Its Largest Shareholder Canadian Non-Operated Resources L.P. and Updated Investor Rights Arrangements - Seite 2

The CNOR LP nomination agreement, dated January 4, 2019 (available on the Corporation’s profile at www.sedar.com) which entitled it to nominate three directors for election to the Pipestone Board for so long as it held in excess of 30% of the Common Shares, has been terminated. In its place Riverstone can now nominate two directors for election to the Pipestone Board pursuant to the Riverstone LP nomination agreement dated effective September 15, 2020 for so long as it and its affiliates hold in excess of 20% of the voting securities of the Corporation. Currently, Riverstone is represented on the Pipestone Board by Messrs. Robert Tichio and Jesal Shah. Pipestone has also entered into a new nomination agreement with Al Mehwar, providing that Al Mehwar can nominate one director for election to the Pipestone Board for so long as it or its affiliates collectively hold in excess of 10% of the voting securities of the Corporation. The Riverstone LP and Al Mehwar nomination agreements are available at www.sedar.com.

CNOR LP has assigned its existing registration rights agreement with Pipestone Energy dated effective January 4, 2019 (available at www.sedar.com) to Riverstone V, which provides for four customary “prospectus demand rights”, three of which have been waived by Riverstone V. Riverstone therefore has a total of four prospectus demand rights considering the three existing rights that Riverstone LP has pursuant to the registration rights agreement (the “Preferred Share Investor Registration Rights Agreement”) dated effective September 15, 2020 among Riverstone LP, GMT Capital Corp. (“GMT Capital”) and the Corporation (available at www.sedar.com).

Following the Distribution, all of the outstanding investor rights for significant shareholders are summarized above, plus those rights held by GMT Capital, which was not involved in the Distribution, pursuant to the Preferred Share Investor Registration Rights Agreement, being two customary prospectus demand rights and piggy-back rights; and GMT Capital is entitled to nominate one director for election to the Pipestone Board pursuant to the GMT Capital nomination agreement dated effective September 15, 2020 for so long as it, its affiliates or GMT Exploration Company LLC holds in excess of 10% of the voting securities of the Corporation. Certain hedge fund and private client accounts of GMT Capital beneficially own 20,424,509 Common Shares and 11,540 Preferred Shares, representing 15.1% of the voting securities of Pipestone Energy. The GMT Capital nomination agreement is available at www.sedar.com.