Investor Update

June 2017

What is Modern?

Designed to Prosper in the ‘Modern’ Resource World 2

Success in a Low Price Environment

Modern

HS&E Leadership Clean, safe, low liability

Resource Diversification 2 Top Plays - Spirit River gas, Cardium oil

Scalable, Focused Asset 296,000 net acres689 Locations

Top Tier F&D1

~$0.54/mcfe Spirit River~$9.94/boe Cardium

Low Operating Cost ~$4.69/boe2 Corporate~$2.00/boe3 Spirit River

Control of Asset ~100% working interest

Strong Balance Sheet Material ELOC remaining

Owned Infrastructure

50 mmcf/d processing capacity expanding to 125 mmcf/d by Q4 2017

Access to Market Firm NGTL calibrated to production

Wapiti

GRANDE PRAIRIE

HWY 40

Pembina PeaceLiquids Pipeline

Market Pipelines(NGTL, Alliance)

Greater Kakwa

(1) Half cycle development economics

(2) Q1/17 Corporate Opcost

(3) Dec 2016/Jan 2017 actuals for Kakwa UOA

Who is Modern?

Experienced and Invested Team 3

Board of Directors

Brian Boulanger - Chairman ARC Financial Corp.

John Dielwart ARC Financial Corp.

Hilary Foulkes Tudor, Pickering, Holt & Co.

Keith MacPhail Bonavista Energy Corporation

David Miller EnCap Investments L.P.

Mark Welsh, IV EnCap Investments L.P.

Management

Chris Slubicki, MBA, P. Eng.President, CEO & Director (OPTI, Scotia Waterous)

Mike Belenkie, P. Eng. VP Engineering (Painted Pony, Talisman)

Jason Chadwick, B. Comm., PLM VP Land (Mancal, Rio Alto)

Francois Legault, P. Geol. VP Geosciences (Vermilion, Talisman)

Derek Mendham, CA, CFACFO (Ensign, Genuity Capital, RBC Capital Markets)

4

Environmental Advantage – Carbon Intensity

0 2 4 6 8

Marcellus

Tight Gas

Barnett Shale

Conventional

Domestic Average

Coal Bed Methane

Associated

Modern

Offshore

gCO2e/MJ

Gas Plays

Extraction and Processing

Field Transport and Processing

0 50 100 150 200 250

Oil Plays

Oil Production and Upgrading

Oil Transport, Refining, Refined Product Transport

kgCO2e/barrel

US Refined Average

Iraq Kirkuk

Modern Cardium

Eagle Ford VO

Saudi Ghawar

US Gulf Thunderhorse

US California

Indonesia

Amongst the Lowest Carbon Intensity in the World = Carbon Security

5

Modern Landscape

Rapid Growth – Value Driven

Operations Update Growth1

2016 production 7,892 boe/d 197%

April production~10,500 boe/d (~15% liquids2)

78%

Behind pipe prod. 4,000 boe/d n/a

Q1/18F production ~20,800 boe/d 84%

Wells drilled to date

33 37%

Full time employees

25 8%

Spirit River Gas: 13 HZs and 1 strat test

Cardium Oil: 19 HZs

7 Gen

Jupiter

Conoco(Cenovus)

Tourmaline

Wapiti

Red Rock

Route

(1) Relative to respective prior year period

(2) Substantial oil production shut in due to road conditions reduced liquids percentage in April

6

Red Rock Spirit River Gas Play

Regional Deep Basin Resource with Outlier Results In Stacked Zones

Spirit River Fairway

13-18: Peak Month8.4 mmcf/d

16-11: Peak Month16.4 mmcf/d

01-02: Peak Month14.1 mmcf/d

Over-pressured1.75 Tcf net OGIP

230+ locations

09-30: Peak Month6.4 mmcf/d

MRI 10” PipelineTo MRI Gas Plant

16-17: Peak Month10.7 mmcf/d

01-07: Peak Month13.0 mmcf/d

01-11: Falher PilotPeak Month 19.0 mmcf/d

08-32: Tested (16 days) Averaged 13.8 mmcf/d

102/01-08: First 30 days11.0 mmcf/d

01-10: First 30 days10.9 mmcf/d

16-32: Tested (5 days)Averaged 15.1 mmcf/d

1. Except for 16-11 and 09-30, all wells were restricted

2. All wells to date have targeted the Wilrich with exception of 01-11 Falher

7

Route Spirit River Gas Play

Emerging Prolific Resource Adjacent to Modern Plant

Spirit River Fairway

02/04-06: Drilled and Cased Frac’ing in June ‘17

MRI 10” Pipe from Red Rock

Over-pressured0.75 Tcf net OGIP

80+ locations

Spirit River Fairway

Market gas and liquids lines

MRI 50 mmcf/d Gas PlantExpanding to 115 mmcf/d

13-04: Peak Month8.2 mmcf/d (restricted)

MRI 10 mmcf/d Gas PlantOnline June ‘17MRI joint-owner

12” gas sales line

05-34: Wilrich/Dunvegan Recompletion producing 0.5 mmcf/d with 15

bbls/mmcf C5+

8

Spirit River Well Performance – Red Rock Core

Repeatable - Predictable - Prolific

MRI 2016 Type Well

Well 1

Well 2

Well 5

Well 6

Well 7

Well 8

Well 9

Well 10

Well 11

(1) Excludes 13-04 well at Route and 09-30 well drilled in Type 2 rock.

P99

P98

P95

P90

P80

P70

P60

P50

P40

P30

P20

P10

P5

P2

P1

100 1,000 10,000 100,000

Perc

en

tile

>>

>

Peak Month Gas Rate mmscf/d

9

Spirit River Well Distribution

Modern Wells Among the Best in the Basin

Facility Restricted Rates

Half Cycle Economics, May 31 2017 Strip Price(2)

EUR mboe 1,839

Liquids Ratio C5+ bbls/mmcf 5(3)

Well Costs $MM (gross) 6.0

NPV10% $MM (gross) 6.4

DPI 10% Discount Rate 1.1

Payout yrs 1.5

IRR % 63

Capital Cost (IP6) $/boe/d 4,699

F&D $/boe 3.32

(1) Source: geoScout and Modern data(2) Strip price as per Bloomberg(3) Liquids ratio range 3.5 to 18.0 bbls/mmcf

18 mmcf/d

16 mmcf/d

Modern First 8 Wells

All AB Deep Basin

Spirit River Wells (post

Jan 1, 2015)

Spirit River Sensitivities

Impact Of Liquids Yields and Well Costs is Meaningful 10

40

50

60

70

80

90

100

110

120

130

0 2 4 6 8 10 12 14 16 18 20

RO

R %

C5+ Yield (bbl/mmcf)

C5+ bbl/mmcf Sensitivity

40

50

60

70

80

90

100

5.5 6.0 6.5

RO

R %

Capital - $MM

Capital Sensitivity (5 bbls/mmcf C5+)

Spirit River H2/17 Plan

Low-Risk Development Program Designed to Maximize Returns 11

* MRI proposed wells: Red = Gas Rig 1, Blue = Gas Rig 2, Brown = Oil Rig (Dunvegan target; moves to Cardium in Wapiti after)

• Program is a blend of richer and leaner locations (3-18 bbls/mmcf)• Piloting of longer wells and larger fracs anticipated to yield stronger results• Most locations selected to leverage existing infrastructure (existing pads on main trunklines)

Competitive Advantage- Owned Infrastructure

Strategic Control Established – Top-Tier Opcosts Accomplished 12

Project Cost CompletedCutbank Crossing $2.5 MM Oct 2015RRR1 pipeline $11.5 MM Mar 2016Route Phase 1 $48.0 MM April 2016Route Phase 2 $25.0 MM Oct 2017Copton sales line Land Swap March 2016Lynx Plant Upgrade $1.1 MM July 2017

227 km (gross) owned pipeline network

50mmcf/d Route plant; Phase 2 expansion to 115mmcf/d underway

4 compressor stations

Lynx plant upgrade underway – 10mmcf/d

1 RRR = Red Rock to Route 10” pipeline

Copton Sales Line

Cutbank Crossing

RRR 10” Pipeline

Modern Route Gas Plant

Lynx Plant

Future RR Trunk Lines

11-25 Wapiti Compressor

NGTL Cutbank Lateral

NGTL Narraway Lateral

Pembina Liquids Line

Cutpick Compressor/Dehy

Red Rock Water Hub

13

Cardium Update

Commanding Position in a Leading Light Oil Play

• 2,500 boe/d production

• MRI wells with IP30 rates up to 342 bbls/d oil

• Low well costs

• 42 API sweet oil

• Strong solution gas drive

• No formation water risk

• Drill depths less than 1,600m

• Conducted a broad delineation program (19 wells to date)

• Latest wells are 1.5 mile HZs

>500 MMbblnet OOIP

350+ locations

100/11-03 and 102/11-03: Producing on clean-up

Oil Pool Outline

Whitecap Wells (red): Strong early results (190-449 bbls/d IP30).

16-15 pad: >230,000 bblsProduced in 18 months

14

Cardium Oil Delineation Program

Unique 100% WI Block, Extensive Inventory of High Graded Locations

High Graded Type Curve>200 locations

2015 Delineation Program Average

P99

P98

P95

P90

P80

P70

P60

P50

P40

P30

P20

P10

P5

P2

P1

10 100 1000

Perc

en

tile

>>

>

Peak Month Oil Rate (bbls/d, normalized per 1,600m of lateral)

Pembina Median: 134 bbls/d

Wapiti Median: 164 bbls/d

Modern 04/16-15-67-8W6

15

Cardium Benchmarking

Wapiti Cardium is a Leading Light Oil Play in Canada

Modern Wapiti Cardium Wells (17)

2014+ Wapiti Cardium Wells

2014+ All Pembina Cardium Wells

Half Cycle Economics, May 31, 2017 Strip Price(2)

EUR mboe 252

Well Costs1 $MM (gross) 3.0

NPV10% $MM (gross) 1.6

DPI 10% Discount Rate 0.6

Payout yrs 2.0

IRR % 39

Capital Cost (IP6) $/boe/d 12,987

F&D $/boe 11.89

(1) Development costs assuming multi-well pads

(2) Strip Pricing per Bloomberg

(3) Source: geoScout and Modern data

Cardium Price Sensitivity

16Development Drilling to Begin in 2H 2017 = Reduced Variability, Reduced Costs

0

10

20

30

40

50

60

70

80

90

100

75% 100% 125%

RO

R %

Variance to Base Assumptions

Cardium Projected Play Type Well ROR vs. Production, Capital Sensitivity

Strip Price - May 31, 2017

Production Capital

Cardium H2/17 Plan

Low-Risk Development Program Builds Oil Production to >2,200 bbls/d by Q1 2018 17

• 11 wells proposed through from Oct 2017 to Feb 2018 (seven are during Q4 2017)• Most proposed wells offset existing producers, on existing infrastructure

1st Pad: Development + step-out

2nd Pad: Development

3rd Pad: Development

4th Pad: Step-out + expiry

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2013 2014 2015 2016

Mb

oe

Independent Reserve Estimates (1)

PDP

Proven (net of PDP)

Probable

18

Financial Highlights

Steady Growth Through Disciplined Execution(1) McDaniel & Associates Consultants Ltd.

Summary

Designed to Prosper in the ‘Modern’ Resource World 19

Modern Culture

• Community: open, respectful communication

• People: engaged, invested, aligned

• Environment: leadership, innovation, commitment

• Focus: Modern in all we do

"Set the Precedent”

Modern Assets

• Quality: top North American natural gas and oil resource plays(1)

• Scale: 689 locations; 296K net acres; multi-Tcf OGIP; 500 mmbbl OOIP

• Control: 100% owned infrastructure

• Clean: low emissions, minimal liabilities (LLR >15)

• Balance Sheet: financial flexibility; material ELOC remaining

Modern Results

• Drilling Results: repeatable, predictable and prolific

• Production Growth: 197% 2016 YoY growth

• Cost Structure: $4.69/boecorporate operating costs(2), <$2.00/boe @ Route Gas plant

• Reserves: $6.00/boe FD&A(3)

including $32MM infrastructure

• Infrastructure: 125 mmcf/d greenfield, integrated processing capacity

(1) Peters & Co. Research

(2) Q1/17

(3) 2016 including FDC

Set the Precedent 20

Questions?

Chris SlubickiPresident, CEO & Director403.542.7375chriss@modernresources.ca

Derek MendhamCFO403.608.7030derekm@modernresources.ca

Modern 7-9-62-8W6 Gas Plant

21

This presentation may contain "forward-looking statements" within the meaning of applicable securities legislation, including estimates of future production,cash flows and reserves, business plans for drilling and exploration, the estimated amounts and timing of capital expenditures, the assumptions upon whichestimates are based and related sensitivity analyses, and other expectations, beliefs, plans, objectives, assumptions or statements about future events orperformance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate","plans", "estimated" or "intends", or stating that certain actions, events or results “may", "could", "would", "might" or "will" be taken, occur or be achieved).In particular, this presentation contains forward-looking statements pertaining, to the following: estimates of infrastructure processing capacity, well costs,payout and IRR estimates. Statements relating to "reserves" are deemed to be forward looking statements, as they involve the implied assessment, basedon certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitablyproduced in the future. There are numerous uncertainties inherent in estimating crude oil and natural gas reserves and the future cash flow attributed tosuch reserves. The reserve and associated cash flows therefrom are based upon a number of variable factors and assumptions, such as historical productionfrom the properties, production rates, ultimate reserve recovery, timing and amount of capital expenditures, marketability of oil and natural gas, royaltyrates, the assumed effects of regulation by governmental agencies and future operating expenses, all of which may vary materially. Actual reserve valuesmay be greater than or less than the estimates provided herein. Unless otherwise noted, reserves referenced herein are given as at December 31, 2016.Also, estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates and future net revenuefor all properties due to the effect of aggregation. All forward-looking statements are based on Modern’s beliefs and assumptions based on informationavailable at the time the assumption was made. Modern believes that the expectations reflected in these forward-looking statements are reasonable but noassurance can be given that these expectations will prove to be correct and such forward-looking statements included in this presentation should not beunduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could causeactual results or other expectations to differ materially from those anticipated, expressed or implied by such statements. Risk factors include: financial riskof marketing reserves at an acceptable price given market conditions; volatility in market prices for oil and natural gas; delays in business operations;pipeline restrictions; infrastructure construction schedule delays and cost overruns; blowouts; the risk of carrying out operations with minimalenvironmental impact; industry conditions including changes in laws and regulations including the adoption of new environmental laws and regulations andchanges in how they are interpreted and enforced; uncertainties associated with estimating oil and natural gas reserves; economic risk of finding andproducing reserves at a reasonable cost; increased competition for, among other things, capital, acquisitions of reserves and undeveloped lands;competition for and availability of qualified personnel or management; incorrect assessments of the value of acquisitions and exploration and developmentprograms; unexpected geological, technical, drilling, construction and processing problems; availability of insurance; fluctuations in foreign exchange andinterest rates; general economic, market and business conditions; uncertainties associated with regulatory approvals; uncertainty of government policychanges; uncertainties associated with credit facilities and counterparty credit risk; and changes in income tax laws, tax laws, crown royalty rates andincentive programs relating to the oil and gas industry. These risks and uncertainties could cause actual results or other expectations to differ materially fromthose anticipated, expressed or implied by such statements. The impact of any one risk, uncertainty or factor on a particular forward-looking statement isnot determinable with certainty as these are interdependent. Modern assumes no obligation to update forward-looking statements should circumstances ormanagement's estimates or opinions change. Certain information contained herein have been prepared by third-party sources. The information providedherein has not been independently audited or verified by the Company.

Disclaimer – Forward Looking Statements