E-T ENERGY LTD.UNLOCKING OVER 100 BILLION BARRELS OF STRANDED RESOURCE

ET Energy Management Presentation

May 2013

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Outline

Introduce E-T EnergyWhat is ET-DSP™?Strong Economics and Environmental Performance

Step 3 Field Test ProgramNext Steps: Demonstrate Commerciality

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Important Notice

DisclaimerThis presentation and the information contained herein are confidential and the property of E-T Energy Ltd. (“E-T Energy”). This presentation is intended to introduce you to E-T Energy or provide a general update for those of you who know us. By reviewing and attending this presentation and accepting delivery of these materials, the recipient agrees not to reproduce, transmit, circulate or otherwise make available the materials to any other person without the prior written consent of E-T Energy. Any distribution or dissemination of these materials without the prior written consent of E-T Energy may also result in a violation of federal, state or provincial securities laws and is therefore prohibited.This presentation is not, and is not intended to be, an offer to sell or the solicitation of an offer to buy any security of E-T Energy and shall not constitute an offer, solicitation or sale of any securities of E-T Energy in any jurisdiction. This presentation is an overview of E-T and should not be relied on for the purposes of making an investment decision. Investors must make their investment decisions based solely on the disclosure contained in materials which may be provided in connection with an offering of securitiesForward-Looking informationThis presentation contains, without limitation, forward-looking information relating to the current state and future development of E-T Energy's oil sands resources, business prospects and strategies, technology, business, financial condition and operations. Forward-looking information typically contains statements using words such as "anticipate", "believe", "project", "forecasted", "expect", "plan", "intend", "estimate", "goal" or similar words suggesting future outcomes and statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future.Readers are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, risks and uncertainties and other factors that contribute to the possibility that the possible outcome, expectations, forecasts, projections and other forms of forward looking information will not be achieved. These factors include management's ability to anticipate and manage uncertainty and risk. The Company faces a large number of risks, including: reliance on a new and unproven process; electricity supply and pricing; dependence on contractual arrangements with third parties; reliance on key personnel and competition for qualified personnel; early stage of development of the Company; insufficient funding or proceeds of financing; oil prices and heavy oil differentials; marketability of bitumen and the lack of infrastructure ; royalty regime and changes to it; taxation; environmental laws and regulations and their application; general government regulation and regulatory approvals; reliance on intellectual property rights and a proprietary process; legal risks and challenges; resource estimates and quantities; abandonment and reclamation costs; competition; foreign exchange rate fluctuations; title risks and aboriginal claims; insurance; seasonality; operational difficulties; and all of the typical risks faced by resource developers. The Company is also exposed to additional risks and uncertainties that it does not presently know, or currently considers immaterial, which may also impair E-T Energy's business and/or operations. If one or more of the events associated with these various risks actually occur, the Company's business may be harmed and E-T Energy's financial and operating results may suffer significantly.Forward-looking statements are based on a number of assumptions that may prove to be incorrect including, but not limited to: general economic, market and business conditions; commodity prices and differentials; resource estimates; the accuracy of cost estimates, the relationships with key project contractors, suppliers and customers, production rates and economic returns; the availability of sufficient capital on satisfactory terms; the successful and timely approval and implementation of capital projects; currency exchange rates; government enacted environmental initiatives; the impact of changes in applicable laws and regulations; and the successful commercialization of ET-DSP™.The actual results, performance or achievements of E-T Energy, and ET-DSP™, could differ materially from those expressed in or implied by forward looking statements; accordingly, no assurance can be given that any of the events anticipated by the forward looking statements will transpire or occur, or if any of them do so, what benefit E-T Energy will derive from them. Except as required by law, E-T Energy undertakes no obligation to publicly update or otherwise revise any information, including any forward looking information for future events, changes or other such factors that affect this information.All references to funds in this presentation refer to Canadian dollars.

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E-T Energy Ltd. Highlights

Large asset baseMcDaniel’s best estimate contingent resource of 284 million barrels with $1.4 billion NPV10

Technology leaderE-T DSP™ technology unlocks 175 billion barrels of stranded resources in the Athabasca oil sands alone that are to deep for mining and to shallow for SAGD

Compelling economicsLower capital intensity, operating costs and energy costs than mining or SAGD

Substantial investmentTo date over $60 million has been raised and invested in the ET-DSP™ technology

TOTAL E&P participation TOTAL provided financial and technical support for the Step 3 field test with the option to participate in future testing and to acquire a technology licence

Protected technologyET-DSP™ protected by Canadian and US patents

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E-T Energy Management Team

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E-T Energy Management Team

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Outline

Introduce E-T EnergyWhat is ET-DSP™?Strong Economics and Environmental Performance

Step 3 Field TestNext Steps: Demonstrate Commerciality

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ET-DSP™ Process

1. Power Delivery System distributes electrical current and non-potable water to the electrode wells.

2. Electric current energizes the electrodes, while injected water cools the electrodes.

3. Electric current rapidly cycles between electrodes, heating the formation water and bitumen.

4. Injected water maintains electrical conductivity and formation pressure.

5. Heated bitumen and water are pumped from the formation by progressive cavity pumps.

6. Bitumen is cleaned to sales spec and sold into markets.

7. Produced water is recycled and re-injected to minimize the need for external water.

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2 3

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ET-DSP™ Process

1. Oil sands formations are highly permeable and contain a significant amount of in situ formation water

2. Electrical current is conducted through the formation water that envelops the non-conductive sand particles

3. Water is strongly resistant to electricity and the electrical energy is converted to heat, i.e. the water gets hotter the more current that flows

4. The water is heated to +/- 130 deg. C, but the formation pressure prevents it from flashing into steam

5. Heat is transferred from the water to the oil and sand particles by conduction

6. The large surface area between the water film and the sand particles facilitates the rapid transfer of heat.

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Access to Stranded Resources

Mineable Depth

ET-DSP™ Depth

Stranded Depth

173 billion bbls in place

SAGD Depth

The application of ET-DSP™ provides the unique opportunity to unlock bitumen volumes at depths currently inaccessible under current extraction methods

McDaniel estimates over 173 billion bbls in place are currently stranded at depths which are too deep to mine, yet too shallow for SAGD

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Potential Upside for Technology Application

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Outline

Introduce E-T EnergyWhat is ET-DSP™?Strong Economics and Environmental Performance

Step 3 Field TestNext Steps: Demonstrate Commerciality

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Economic Advantages of ET-DSP™

Lower energy requirementsLower capital cost

—No water treatment facilities for boiler quality water—No steam generation

Access to stranded resources—Can use in areas too deep to mine, too shallow to SAGD—No cap rock needed

Environmental benefits—Low carbon footprint

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$10.00 $7.00 $9.32

$5.48 $3.84 $2.50

$20.63

$17.61 $10.36

$36.10

$28.45

$22.18

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

Generic Mining Generic SAGD Mgmt Best Estimate

Capi

tal &

Ope

ratin

g Cos

ts ($

/bbl)

Sustaining Capital Initial Capex Operating Costs

$18.45

$10.00

$2.90

$2.18

$7.61

$7.46

$20.63

$17.61

$10.36

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Generic Mining Generic SAGD Mgmt Best Estimate

Ope

ratin

g Co

sts (

$/bb

l)

Non-Energy Op Costs Energy Op Costs

Economic BenefitsCOMPARISON OF OPERATING AND CAPITAL COSTS

On both an operating and total cost basis, ET-DSP™ economics based on management estimate is substantially better than other extraction processes

E-T's significantly lower initial capital cost intensity results in substantially higher returns on capital

Operating Cost Comparison – 2011$ ($/bbl) Total Cost Comparison – Project Life – 2011$ ($/bbl)

Source: Macquarie Research, Management Estimates

ET-DSP™ Poplar Creek

ET-DSP™ Poplar Creek

SAGD Mining E-T

Up-front Capex/Peak Production ($/bbl/d) $35,000 $70,000 ~$16,000

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Economic BenefitsIRR AND NPV COMPARISON

Based on management estimates, ET-DSP™ delivers superior per barrel NPV and rates of returned when compared to other extraction processes

Net Present Value per Barrel ($/bbl) Internal Rate of Return (%)

Model scenarios include flat pricing with unescalated costsSource: Macquarie Research, Management Estimates

-$4.00

-$2.00

$0.00

$2.00

$4.00

$6.00

$8.00

$60 $70 $80 $90 $100 $110 $120

NPV/

bbl ($

/bbl)

WTI (US$/bbl)

SAGD Mine (no upgrader) ET-DSP™

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

$60 $70 $80 $90 $100 $110 $120IR

R (%

)WTI US$/bbl

SAGD Mine (no upgrader) ET-DSP™

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No Direct GHG Emissions

Process can have zero GHG emissions, depending on source of electrical energy

Low energy usage compared to SAGD and Mining means even if electricity is from gas fired generation, GHG emissions are still considered lowest in industry.

CSS B

itumen

Middle

East H

eavy

Oil

Califo

rnia H

eavy O

il

Cana

dian O

il San

ds: SA

GD Bitumen

Nigeria

Light

Crude

Canad

ian Oil S

ands: M

ining B

itumen

Avera

ge US B

arrel C

onsum

ed (2

005)

Mexico

Maya

ET Bitu

men In

direct

(Natg

as Basi

s)

ET Bit

umen

Direct E

mission

0100200300400500600

GHG Emissions Comparison with ET Bitumen

Fuel CombustionDistribution ProductsCrude RefiningCrude TransportationCrude Production

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Other Environmental Benefits of ET-DSP™

Land reclamation can occur within 3 years from initial land disturbance.

Water Usage is for void replacement. Preference is to use saline water.All produced water is re-injected into formation.

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Outline

Introduce E-T EnergyWhat is ET-DSP™?Strong Economics and Environmental Performance

Step 3 Field TestNext Steps: Demonstrate Commerciality

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OBJECTIVES• confirm scale up assumptions• confirm bitumen flow rates• confirm bitumen recovery factors• confirm energy requirements• confirm equipment reliability factors

FINANCIAL SUPPORT• Total E&P Canada participation• CCEMC funding

Step 3 Field TestTHREE FULLY ENCLOSED EXTRACTION WELLS

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Field Test Site

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Electrode Wells 16 m spacing

Electrode Well

Producer Well

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Step 3 Field Test Summary

Started all 69 electrodes February 2012. Production operations began in June 2012. From June 2012 to March 2013 temperatures continued to rise as did

bitumen production. At March 2013 average reservoir temperature over 60 C with peak

temperatures of up to 99 C at some observations wells. Chemical injection program from December 2012 to March 2013

—sponsored by Baker Hughes. —increased bitumen production observed in wells surrounding

additive injection.March 2013 concluded heating phase. May 2013 shut in production.

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Electrode Energy

March 2013– Monthly Data Summary23

Heating startedFeb. 1, 2012

Decision made to not heat upper zone Jul. 4, 2012

Reduction in Effective Electrode

Performance Jul. 19, 2012

Electrodes Turned Off

Mar. 31, 2013

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Average Observation Well Temperature

March 2013– Monthly Data Summary24

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Observation Wells Show Good Temperature Response

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Production ProfileBarrels

June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May -

100

200

300

400

500

600

700

800 Electrodes Turned Off

Mar. 31, 2013

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Marketed Bitumen By Rail Car. $17/bbl higher netback.

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Step 3 Field Test Achievements

Heated and produced bitumen despite challenging reservoir characteristics

Achieved good long-term power delivery to many electrodes

Successful commissioning, startup and operation of largest ET DSP Pilot

Able to make pipeline quality diluted bitumen

— —

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Step 3 Field Test Lessons Learned

Learnings for future development phases:Electrode reliability to be further improvedImprovements to operational practicesPlan for longer pre-heating phaseBetter reservoir characterizationFocus on uniform heating within formation

— —

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Step 3 Field Test OptionsBackground

—Step 3 shut down May 2013 primarily due to financing constraints—Challenging geology makes achieving a high recovery factor

difficult—Significant heat persists in the reservoir

Option 1: Restart Step 3—Restart heating, production and chemical injection for up to 9

months —Funding required ($3.5m): Field operations ($1m), G&A ($1.5m) and

ERCB compliance ($1m)Option 2: Maximize Step 3 Performance

—Recomplete production wells and install mini-electrodes—Restart heating, production and chemical injection for up to 12

months—Funding required ($6.5m): recomplete production wells ($1m),

install mini electrodes ($1m), field operations ($1.5m), G&A ($2m) and ERCB compliance ($1m)

—Effectiveness of recompleting wells and mini-electrode is uncertain

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Outline

Introduce E-T EnergyWhat is ET-DSP™?Strong Economics and Environmental Performance

Step 3 Field TestNext Steps: Demonstrate Commerciality

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Next Step: Demonstrate Commerciality

Approval received from ERCB for up to 1,000 bbl/day facility adjacent to existing pilot plant operation.

Primary objectives of the next project are:—Demonstrate electrode reliability—Demonstrate commercial production levels.—Apply learnings and improvements from prior field tests

Longer-term objectives of the next project are:—Refine understanding of reservoir production mechanisms—Improve drilling and operational techniques —Achieve cash flow positive results—Make and market on-spec diluted bitumen

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Pre-commercial Project

• Project Scope:• Up to 1,000 b/d bitumen

production approved by ERCB.

• Implementation Options• 250 b/d project to test electrode

enhancements• 1,000 b/d well field could be

repeated several times in area using same CPF

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Pre-Commercial Project

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Pre-commercial Project - Timeline

• Project Activities:• Design and Construction

• Design & surface preparation6 months

• Drilling and well completions4 months

• Well field & CPF construction6 months

• Commissioning and startup 2 months• Operations

• Pre-heat (heating with no production)6-9 months

• Production and heating 9 months

First oil 2 years after project sanctioning

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Commercial DemonstrationProject: Long-Term

E-T Energy anticipates continuing production with additional well fields commissioned to sustain 1,000 bbl/day production

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Questions