Corporate Presentation

January 2020

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Reader Advisory

Forward Looking Statements and Forward Looking Information

Certain statements included in this presentation constitute forward looking statements or forward looking information under applicable securities legislation. Such

forward looking statements or information are provided for the purpose of providing information about management’s current expectations and plans relating to the

future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward looking

statements or information typically contain statements with words such as “anticipate”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project”, “forecast”, “should”,“target”, “will”, “may”, or similar words suggesting future outcomes or statements regarding an outlook. Forward looking statements or information in this

presentation include, but are not limited to, statements or information with respect to business strategy and objectives; development plans; growth in production

from the Western Canadian Sedimentary Basin (“WCSB”); ongoing demand for crude oil in North America; growth of crude oil transported by rail, contractual

arrangements with railways, shippers and other market participants; pipeline constraints; capital expenditures; cash flow; debt levels and operating and other costs.

Forward looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information

but which may prove to be incorrect. Although Altex believes that the expectations reflected in such forward looking statements or information are reasonable,

undue reliance should not be placed on forward looking statements because Altex can give no assurance that such expectations will prove to be correct. In

addition to other factors and assumptions which may be identified in this presentation, assumptions have been made regarding, among other things: successful

completion of the proposed financing referenced herein; the general stability of the economic, legal and political environment in which Altex operates; the timely

receipt of any required regulatory approvals; the ability of Altex to obtain qualified staff, equipment and services in a timely and cost efficient manner; the timing and

costs of facility construction and expansion and the ability of Altex to secure adequate product for transportation; future oil prices; currency, exchange and interest

rates; and the regulatory framework regarding crude transportation by rail, taxes and environmental matters in the jurisdictions in which Altex operates. Readers

are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have ben used.

Forward looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which

could cause actual results to differ materially from those anticipated by Altex and described in the forward looking statements or information. These risks and

uncertainties which may cause actual results to differ materially from the forward looking statements or information include, among other things: the ability of

management to execute its business plan; general economic and business conditions; the risk of economic, legal or political instability affecting the jurisdictions in

which Altex operates; the risks inherent in the railway industry and the crude oil industry; the possibility that government policies or laws may change or

governmental approvals may be delayed or withheld; the effects of competition and pricing pressures; Altex’s ability to enter into or renew customer and supplier

contracts; potential delays or changes in plans with respect to development projects or capital expenditures; fluctuations in oil prices, foreign currency exchange

rates and interest rates; risks inherent in Altex’s operations, including credit risk, health, safety and environmental risks; risks associated with existing and potential

future law suits and regulatory actions against Altex; uncertainties as to the availability and cost of financing; and financial risks affecting the value of Altex’sinvestments. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties.

The forward looking statement or information contained in this presentation are made as of January 2020 and Altex undertakes no obligation to update publicly or

revise any forward looking statements or information, whether as a result of new information, future events or otherwise unless expressly required by applicable

securities laws. The forward looking statements or information contained in this presentation are expressly qualified by this cautionary statement.

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Altex Energy

▪ Leading Canadian rail terminal company connecting Western Canadian SedimentaryBasin to key North American refining markets and export/import terminals

▪ Dominant loader of undiluted heavy oil and bitumen in Canada with unit traincapability moving oil to locations in North America and globally

▪ Also load other products (e.g. refined products) and unload other products (e.g.chemicals) to support customers

▪ Owns and operates four terminals strategically located in Canada’s largest heavy oilproduction basins capable of moving more than 160,000 bpd at full capacity

▪ Strategic partnership and long-term arrangement with Canadian National Railway

▪ Backed by key contracts with highly capable counterparties

▪ Proprietary technology and systems

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Altex Helps Customers

▪ The Problems▪ Diluent Value Loss with Pipelined Heavy Oil/Bitumen▪ Egress for Western Canadian Oil Production

▪ How Rail Can Help▪ Already Exists (Established and Operational System)▪ Gets Beyond Current Oversupplied Markets

▪ Large Capacity to Move Commodities▪ Safe and Reliable and Efficient

▪ Altex Energy▪ Terminals and Logistics▪ Technology / Patents▪ Dominant Undiluted Heavy Oil / Bitumen Terminal

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Altex Terminals in Western Canada

▪ Owns and operates 4 terminals in Western Canada

▪ Focusses on moving undiluted heavy oil and bitumen to refineries in USA, Canada, and globally

▪ Transports other products including condensate imports

▪ Key terminals offer emulsion and H2S treating services, adding value for customers

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Peace River

Oilsands Region

Lloydminster

Heavy Oil Region

Cold Lake

Oilsands Region

Athabasca

Oilsands Region

TerminalNormal

Capacity (mbbl/d)

Full Capacity(mbbl/d)

Tank Storage (mbbl)

Truck Stations

(#)

Lashburn 65 90 148 26

Unity 15 30 24 12

Lynton 15 30 30 6

Falher 5 10 - 2

Total 100 160 202 46

Based on Avoiding Diluent in Crude Oil Movements

▪ Altex/CN initiation of crude on rail

business in Canada was originally not

based on egress challenges

▪ Was based on avoiding need to add

diluent (C5+) to heavy oil/bitumen

which is required by current pipelines

▪ C5+ worth more as diluent than it is as

refinery feedstock (lose money by

moving C5+ like this)

▪ Added benefit is heavy oil/bitumen is

safer and more environmentally-

friendly to move without diluent

▪ Altex has been doing this for a decade

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GMPFE Jan 3, 2020

Re

fin

ery

va

lue

of

C5

+ s

ho

uld

be

le

ss t

ha

n l

igh

t o

il

New Undiluted Heavy Oil Entrants?

▪ Altex accesses undiluted heavy oil by picking it up close to production site (before pipeline-required diluent isadded)

▪ Other option is to build a DitillateRecovery Unit (DRU) with upfront capex and ongoing opex costs to remove the added diluent

▪ Other rail terminals are not located proximate to oil production and thus are considering expensive DRU option

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Peace River

Oilsands Region

Lloydminster

Heavy Oil Region

Cold Lake

Oilsands Region

Athabasca

Oilsands Region

Altex Rail Terminals

Other Rail Terminals

Egress Problems

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Source: Canadian Association of Petroleum Producers

Western Canadian production

All the people, refineries,

consumers that we sell

to….

▪ Pipeline infrastructure development(Keystone, TransMountain, Enbridge,Gateway, Energy East,…) has beenunable to keep up with growingproduction in Western Canada

▪ This has led to large discount forwestern Canadian oil andunprecedented curtailment action byAlberta government to manage price

▪ Historic pipeline infrastructure was builtto move product to markets in Ontarioand US midwest

▪ With US production increasing, lessdemand for Canadian oil in thosemarkets

▪ Rail provides opportunity to alsoservice USGC, East Coast, West Coastand offshore markets throughestablished infrastructure

New and Emerging Markets for Canadian Crude Oil

▪ The bigger challenge remains where to move Canadian barrels to as US production

increases in the face of stagnant North American demand

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8.2

4.0

22.6 24.7

3.5

15.3

6.5 6.8

31.8

9.1

Source: BP Statistical Review of World Oil Energy June 2019

7.6

35.9

Asia is the major global importer of oil – needs

more supply and supply diversification

ProdCons

mmbpd

14.5

4.1

North America Oil Supply / Demand

10Source: BP Statistical Review of World Oil Energy June 2019

Canada

U.S.A.

Mexico

Anchorage

Prince Rupert

Vancouver

Fort McMurray

Edmonton

CalgaryRegina

WinnipegThunder Bay

Toronto

Ottawa

Montreal Halifax

New York

St Louis

Miami

San Francisco

Los Angeles

Phoenix

HoustonNew Orleans

Mexico City

Minneapolis/St Paul

5.22.4

15.3

20.5

2.1 1.8

North America is an oil

importer led by USA demand

Canada is a net oil exporter

with significant exports out of

Western Canada

Significant growth in USA

production has reduced

imports and reduced need for

Canadian imports

Growing western Canadian

production highlights need to

establish other markets

ProdCons

mmbpd

Diversifying Markets for Canadian Oil Production

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Asia continues to be the obvious location for diversification of Canada’s oil exportsWest coast of Canada/USA are preferential location for exports (closest, cheapest…)

Canada’s oil

3.2mmbpd

Source: BP Statistical Review of World Oil Energy June 2019

Lashburn Terminal

▪ One of just a few crude oil unit train facilities in Canada and is the only one handlingundiluted heavy oil or bitumen

▪ Area has active development of small scale thermal producing projects

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Located in western Saskatchewan on

Trans-Canada Highway and Canadian

National mainline with access to

major heavy oil producing region

Production of 300kbbls/day

within 75 miles of Lashburn

Lashburn Terminal

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26 truck unloading stations

40 railcar loading stations

148Kbbls of storage tanks

Capacity of 400+ railcars ▪ Capacity of 2 unit trains (200

railcars) per day (24-hr operation)

▪ Loads undiluted heavy oil from region, typically 12-15 API

▪ Can truck directly from wellhead tank eliminating processing cost

▪ Sophisticated logistics technology minimizes delivery time

▪ Also provides crude oil services (oil storage, emulsion cleaning, etc. and rail services (railcar repair, railcar storage, etc.)

▪ Industry leading safety and operational practices

Lynton Terminal

▪ Located at end of the Canadian National rail line in heart of oilsands region

▪ Can load railcars up to ½ unit train (50 railcars) per day (24hr operation) and can initiate unit trains from site

▪ Also load and unload other products (chemicals, condensate, refined products, etc.)

▪ Typically load undiluted or under-diluted heavy oil from region (6-15API)

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6 truck unloading bays

10 railcar loading stations

30Kbbls of tanks

Located in centre of oilsands

producing region with access to

>2mmbbs/day of production

Lynton Terminal

▪ Site is inside Canadian National yard which also handles petcoke, sulphur and other movements

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Petcoke loading

Sulphur loading

Altex – oil loading and

chemical unloading

Unity Terminal

▪ Located on Canadian National mainline with access to light and heavy oil

▪ Well serviced by highway access

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Located in western Saskatchewan with

access to southern heavy oil producing

region and light Viking oil growth area

Production of 280kbbls/day

within 75 miles

Unity Terminal

▪ Site has significant capacity with 26 Kbbls of tanks

▪ Can load up to 50 railcars per day (24 hr operation)

▪ Provides other rail and crude oil services (railcar storage, H2S treating, emulsion treating, etc.)

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12 truck unloading bays

6 railcar loading stations

26Kbbls of tanks

Falher Terminal

▪ Located in Peace River heavy oil/oilsands area with ready access to light and heavy oil

▪ Direct truck-to-rail gantry operation

▪ Can load up to 10 railcars per day (quickly expandable to 30 railcars

per day with further expansion possible)

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Crude oil and refined

product business

Centrally located in Peace River

region with ready access to

conventional and thermal production

Production of 60kbbls/day

within 75 miles

Railways Are Safe

▪ Pipeline and rail represent safe energy

transportation solutions with long

operational track records

▪ Despite active misinformation by pro-

pipeline lobby, railways are “safe” and represent an efficient and effective way

to move commodities

▪ Has created significant confusion/

ignorance – better to use facts/science

▪ Infrastructure is already in place

minimizing surface and environmental

footprint

▪ Rail has been shown by independent

parties to have lower spilled volume and

greater energy efficiency than other

alternatives

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Fraser Institute

(pipelines spill 3.2x as much oil per volume moved as

rail - albeit rail has 4.5x the number of incidents)

USA Congressional Research Service

Oliver Wyman

Operating & Safety Standards

▪ Type of crude oil typically moved by Altex

(heavy oil/bitumen) is safer than other

crude oils and other products often moved

on rail or by pipeline (and is the type of

crude oil typically produced in western

Canada)

▪ And don’t need to import C5+ just to mix it in with heavy oil and send it back

(environmental benefits)

▪ Altex has developed rigorous safety

standards and is an industry leader in

health and safety policies

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-200-150-100-50050100150200

Propane

Butane

Gasoline

Pentane

DilBit

Bakken

WTI

Typical Cdn Light Oil

Iranian Light

Basrah

Urals

Jet Fuel

Diesel

#6 Fuel Oil

Typical Altex Oil

Typical Bitumen

Flash Point (Degrees Celsius)

Increasing Fire Hazard / Explosive Potential

Elizabeth May, Green Party

Patents and Technology

▪ CDN Patent #2643893 – Patented design of a special purpose tank car and oil forehaul/condensate backhaul

▪ Altex has licensed (on a non-exclusive basis) this tank car technology to a North American railcar manufacturer

▪ CDN Patent #2829003 – Patented the process used by transloaders who receive trucks, employ tanks, and load tank cars with either dilbit or bitumen

▪ US Patent #8393359 – Patented the forehauland backhaul trade

▪ Proprietary SCADA/logistics/accounting information system which improves service for customers – also applicable to other commodities which employ rail

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What Differentiates Altex?

▪ Dominant loader of undiluted heavy oil / bitumen on railcars in Western Canada

▪ Most economic, safest, most environmentally friendly move supporting buyers

who want access to inexpensive crude oil and producers who want to increase

their netback price

▪ Also load other products (eg. refined products), unload other products (eg. chemicals,

condensate,…) and provide ancillary services (eg. storage, processing,…) supporting customers

▪ Existing facilities provide quick, efficient and safe facility and logistics service

▪ Strong relationships and contracts with players in the industry (producers,

refiners/marketers, railways, railcars,…..) ▪ Canadian National Railway strategic relationship

▪ Patents/technology on critical components of the business

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Altex Energy

Suite 1100, 700 – 9th Avenue SW | Calgary, Alberta T2P 3V4 | Main Phone: (403) 508-7525

www.altex-energy.com

John Zahary

President & CEO

John. Zahary@altex-energy.com

Colleen Johansen

Chief Financial Officer

Colleen.Johansen@altex-energy.com