Corporate Presentation June 2012

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Forward Looking Statements

This presentation contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation’s plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking statements are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.

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Company Overview • CE was formed in 2006 • IPO Completed in November 2006; TSX-V:CE • Aggregated 107 gross sections of oil and gas tenures in NEBC • Total Capital Raised $40 million

• CE closed on 2 stock for stock acquisitions valued at approximately $31 million • 82.3 million shares (basic), 89.9 million shares fully diluted • Management and Directors own 18.5% on a fully diluted basis • Management and Directors comprise 197 years collective, executive oil and gas experience

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Investment Highlights • CE has assembled 67,918 gross acres of lands in Northeast British Columbia strategically

located on two high impact natural gas resource plays • CE and its Principals have effected approximately $100 million of exploration and development

expenditures on CE lands. • CE has partnered with industry leaders in their respective gas resource play specialties;

– Crew Energy (TSX: CR) – Aduro Resources

• 42 BCFE (7.0 mmboe) 2P net reserves • Dramatically undervalued relative to area comparables • CE is extraordinarily leveraged up in resource potential relative to its peers with 2.6 TCF of

prospective gas resources.

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Management Title Experience

John Proust Chairman & CFO President, J. Proust & Associates Inc: 25 years advising public and private companies on debt and equity financing, mergers and acquisitions and corporate restructuring; CEO New Zealand Energy Corp

Benjamin M. Jones President & CEO Founder of Peace River Project; 33 years in oil and gas exploration and production, including last 10 years focused on unconventional gas in northeast British Columbia. BS Mechanical Engineering.

Eileen Au Roger Hebert

Corporate Secretary Senior Geologist

Extensive senior management experience in a variety of public companies in the areas of finance, compliance, business development, strategic planning and corporate restructuring. BS MS Geology LSU 38 years’ experience; Getty Oil 2 yrs, Campbell Energy 4 yrs, partner in Baton Rouge Exploration 4 yrs, President and owner Legacy Energy 28 yrs.

Directors Title Experience

John Proust Chairman President, J. Proust & Associates Inc.; 25 years advising public and private companies on debt and equity financing, mergers and acquisitions and corporate restructuring; CEO New Zealand Energy Corp.

Benjamin M. Jones Director Founder of Peace River Project; 33 years in oil and gas exploration and production, including last 10 years focused on unconventional gas in northeast British Columbia. BS Mechanical Engineering.

Pat Bolin Director Chairman, President and Chief Executive Officer of EagleCorp. and Eagle Oil & Gas Co., which have production activities from over 600 wells in ten states. Mr. Bolin is also the Chairman of Beacon National Insurance Corporation, an advisory director of Compass Bank and a director and member of the executive committee of Fidelity Bank, Wichita Falls.

Kyle Burnett Director President, Arcadia Exploration & Production Company and Triumph Pacific Oil and Gas Corporation; 27 years in exploration and production of oil and gas.

John Howard Director CEO, Carrollton Interests Inc., previously CEO of Summit Energy (acquired by Bayou Bend Petroleum Ltd. (TSX-V: BBP) in January 2007); 23 years in exploration and production of oil and gas.

Leadership: 164 Years’ Combined Oil & Gas Executive Experience

Management

Directors

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CE Land Base & Pipeline Access

Gross Net Acres Acres Shallow: 58,613 57,341 Deep: 51,322 27,799

Pipeline

6 Deep Only Shallow & Deep Shallow Only CE Land Secure to 2014. With 1-2 additional wells in 2014, combined

with reserves, CBM and First Nation extensions, > 85% of Montney lands should be preserved through 2019(1).

(1) Subject to policy changes by British Columbia Energy and Mines

T

Montney Trend

Reference

Dawson Field

Encana Arc

Swan Field

Encana

Groundbirch Shell PetroChina

Talisman

Monias

Septimus Crew, CNRL Petrobank

Talisman/Sasol Canbriam

Farrell Projects

Progress Talisman Petronas Cypress Altares

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Sunrise Shell, Arc Talisman

Tupper Murphy Cutbank Ridge

Encana/Mitsubishi

Saturn Shell, Arc

Canada Energy

Arc & Terra Halfway River

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Regional Ownership Map

SINOPEC

PACE

PENNGROWTH

ADURO

ARC

CEP

CNRL

CREW

CSRI

DEVON

SHELL

TALISMAN

TERRA

TERRA NON MONTNEY

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Well Economics of Emerging Plays

Source: Morgan Stanley Research Report August 2010

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Peace River

Block Activity

CE-Crew 9-23 DGIIP = 207bcf/section Doig/Upper Montney Only by Sproule

CE/Crew c-20-e IP = 4.4mmcf/d 4 stage frac, 1000m lateral, DGIIP=171 bcf/section by Sproule

IP = 2.4 mmcf/d

Talisman Farrell Project 7 bcf/well EUR’s indicated by well performance 120 bcf/section 3P+ contingent resources

CE Montney Well

Talisman's Farrell Project >$1 billion CAPEX over the

last 24 months $2 billion JV with sasol

Average 450 bcf/section gas-in-place

3 rigs currently operating

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Peace River Cross

Section South-North

CE Talisman CE Talisman

Talisman’s Farrell Creek Type Curve

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Average OGIP/Section = 450 Bcf From Talisman’s November 2011 Corporate Presentation

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Talisman Altares Analysis

Conventional core confirming that the Lower Montney has equivalent or better productive characteristics than the Upper Montney despite poorer log characteristics.

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Monias Activity Map

5 Permits vertically stacked at 5 horizons

Shell Completion Test Summaries

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Monias Montney Cross Section

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Pengrowth 6-25-81-21

Shell 4-11-81-21

CE 13-30-81-21

CE’s Total Prospective Gas Resource •CE’s lands are bracketed by Talisman/Canbriam on the northwest and PennGrowth/Shell/PetroChina on the southeast.

•Talisman estimates 450 BCF gas-in-place per section at Farrell.

•PennGrowth had ascribed 132 BCF gas-in-place per section by GLJ on their first 5 sections in the Upper Montney only.

•CE has an average gas-in-place of 189 BCF/section between its first 2 wells at Peace River in the Doig Phosphate and Upper Montney only.

•Talisman estimates 26% recovery factors in the Doig/Montney.

•Talisman estimates 7 BCF/well EUR

•Assuming an equivalent recovery factor yields 2.1 TCF prospective resource net to CE from the Doig & Upper Montney alone.

•500 BCF gas resource potential from the CBM Project 2.6 TCF (*) total prospective resource net to CE. * Prospective resources are those quantities of oil and gas estimated on a given date to be potentially recoverable from undiscovered accumulations. If discovered, they would be technically and economically viable to recover. There is no certainty that the prospective resources will be discovered.

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Raw Acreage Valuation

Reserve/Resource Evaluation

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Strategic Acquisition – Hudson’s Hope Gas Ltd. (“HHG”)

• CE acquired all the outstanding shares of HHG in June 2012 for 2 million shares of CE stock.

• This acquisition was strategic for the following reasons:

1. Consolidated ownership and operations of the CBM project in CE. 2. Consolidated ownership and control of the Peace River CBM Gas

Plant which as a $8 million (100%) replacement cost. This gas plant is a key asset in both the CBM and Montney developments.

3. Consolidated ownership and control of the only water disposal wells within 35 miles of the Peace River Project. These disposal wells are critical to the commercial development of both the CBM and the Montney Shale.

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Total US and Canadian Natural Gas Supply

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US Lower 48 States Natural Gas Withdrawals

Probable tipping point corroborated by the 25% net gas price increase since April low.

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Canadian Gas Production; Gulf of Mexico Gas Production; Louisiana Haynesville Production

2012 Estimate by Arc Financial

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Crude Oil to Natural Gas Price Ratio

An unprecedented price ratio blowout! Clearly unsustainable long-term. This has led to a massive redeployment of capitol to crude and liquids-rich plays.

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Gas Directed Rig Count

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This trend will impact North American gas supply; the question is when and how sharply. “A Henry Hub price of $US 4.00/MMbtu is not a price that is sustainable in North America….the long-term marginal cost of maintaining production is between $5.00 and $6.00, if not higher.” “What we do know is that the annual decline rate on all US gas production has steepened from 21% in 2003 to over 30% now. So, when change comes it will come quickly, which always seems to be the case in this business.” Peter Tertzakian, Calgary Herald, Jan 10 & 18,2011.

The US rig count has gone from 15% oil-directed to 71% oil-directed and the inversion trend continues

Currently, 29% of rigs are gas directed. Source: Baker Hughes

Gas Rigs

Oil Rigs

• CE is an emerging Canadian exploration & production company

• 107 gross sections strategically located on 2 major gas resource plays

• Approximately $100 million historical investment in exploration & development on CE

lands

• 2 strategic/technical joint ventures with industry leaders

• 42 BCFE (7.0 mmboe) 2P Reserves

• 2.6 TCF of prospective gas resources

Summary

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• CE Market View • Gas Markets will strengthen • Unleveraged balance sheet with staying power • The Company’s land base has long tenures • Offset activity continues to de-risk and strengthen the merits of

the Company’s resource base. • Exercise patience and fiscal discipline while pursuing:

• Farmout • Joint Venture • Partial Asset Sale • Merger • Equity

Go Forward

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Tt

CONFIDENTIAL

CE/Crew’s Portage 9-23-81-26 on the cover of Oil & Gas Journal 12-14-09

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Shallow Targets

Deep Rights

Targets

Other Potential

Deep Targets

Stratigraphic Overview

A-1

Appendix B: Peace River CBM Project Summary • 78 Gross Sections of CBM Rights; • 22 wells drilled to date on Project • Gas Plant & Pipeline Constructed in 2008 • 8 wells put on production at end of 2008 • Preliminary Netherland Sewell Resource Assessment in June 2012 ascribed 497 BCF net to CE of

‘P4’* Resources

• Field currently shut-in pending better gas prices

• Currently researching new horizontal drilling and completion techniques which could potentially make the CBM competitive with shale gas economics.

* Includes proved, probable, possible, & contingent resources

B-1

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Regional Gething Structure Map

All CE lands strategically situated on a major positive structural feature on the Peace River Arch B-2

Peace River CBM Project Area

Gas Plant

Area of Initial Development

B-3

Net Coal Isopach

Net Coal Thickening Southwesterly

B-4

Total Gas & Water Production

Pump Replacement/ Workover

0

200

400

600

800

1000

1200

1400

1600

1800

2000

0

100

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300

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500

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700

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Wat

er V

olum

e, b

bls

Gas

Vol

umes

, Mcf

Total Gas & Water Production, US units

Gross Gas Produced Net Gas Sales Total Produced Water Linear (Gross Gas Produced)

Normalized Average Production per well= 71 mcf/d & 168 bw/d

Production Normalized 52%/Yr Incline

Field Shut in April 16, 2010

B-5