PrairieSky Announces Closing of $198 Million Bought Deal Equity Offering

CALGARY, ALBERTA--(Marketwired - July 7, 2015) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

PrairieSky Royalty Ltd. ("PrairieSky" or the "Company") (PSK.TO) is pleased to announce that it has closed its previously announced bought deal offering of common shares. Pursuant to the offering, the Corporation issued 6,336,000 common shares (including 576,000 common shares issued pursuant to the exercise in full of the over-allotment option granted to the underwriters) at a price of $31.25 per common share, for aggregate gross proceeds of $198 million. The syndicate of underwriters was led by CIBC.

Net proceeds from the offering are anticipated to be used to fund future acquisition opportunities.

The common shares issued from the offering will be eligible to receive the dividend for the month of July 2015, which is expected to be paid on or about August 17, 2015.

The securities of PrairieSky have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws. Accordingly, these securities may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or except pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of PrairieSky's common shares in the United States.

This press release contains forward-looking statements including statements concerning the anticipated use of the net proceeds of the offering and future declaration and payment of dividends. The intended use of the net proceeds of the offering might change if the board of directors determines that it would be in the best interests of PrairieSky to deploy the proceeds for some other purpose. Dividends are declared and paid at the discretion of the Board of Directors, are subject to a number of conditions and are not guaranteed. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond PrairieSky's control. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. PrairieSky's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, 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 benefits that PrairieSky will derive therefrom. The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to publically update or revise forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

About PrairieSky Royalty Ltd.

PrairieSky is a royalty-focused company, generating royalty revenues as petroleum and natural gas are produced from its properties. PrairieSky has a diverse portfolio of properties that have a long history of generating stable free cash flow and that represent one of the largest and most concentrated independently-owned fee simple mineral title positions in Canada. PrairieSky common shares trade on the Toronto Stock Exchange under the symbol PSK.