GOLDBORO LNG UPDATEPieridae Energy (Canada) Ltd. (Pieridae) is proposing to develop, construct, commission and operate a facility consisting of up to two liquefied natural gas plants, each with a design production capacity of approximately 4.8 million tonnes per annum of liquid natural gas (LNG). Goldboro LNG (the Project) will include two storage tanks, a power-generation plant and marine facilities which will be situated in Goldboro in the Municipality of the District of Guysborough (the Municipality) in Nova Scotia, Canada.

On May 31, 2013 E.ON Global Commodities SE, a corporation wholly-owned by E.ON SE (E.ON), agreed to purchase 5 million tonnes per annum of LNG from Pieridae under a twenty year purchase and sale agreement. Pieridae acknowledges and appreciates the continued support for the Project by E.ON which is among the largest investor-owned power and gas enterprises in the world.

The Minister of Environment of Nova Scotia approved the Project pursuant to subsection 40(1) of the Environment Act (Nova Scotia) on March 21, 2014. The Minister’s approval is subject to a number of conditions, each of which Pieridae is in the process of satisfying.

The Project’s final investment decision (FID) is expected in late 2016.

PURCHASE OF THE SITE On December 3, 2015 Pieridae acquired approximately 107.5 hectares (265.6 acres) of land from the Municipality. This property is located in the Goldboro Industrial Park and will serve as the site for the proposed LNG Facility assuming that a positive FID is forthcoming.

Starting on April 1, 2016 Pieridae will lease an additional 57.6 hectares (142.3 acres) from the Municipality. This additional land is next to the purchased site and will be used by Pieridae during construction to maintain a work camp, a marshalling area for equipment and construction materials as well as related infrastructure.

NEWSLETTER WINTER 2015/2016

IMPORT & EXPORT LICENSES DEPARTMENT OF ENERGY OF THE UNITED STATES OF AMERICA In May 2015, the Department of Energy of the U.S.A. (the DOE) granted Pieridae Energy (USA) Ltd. (Pieridae USA) a long-term multi-contract authorization (DOE/FE Order No. 3639) to export natural gas to Canada for end use in Canada and for export as LNG to countries with which the U.S.A. has entered into a free trade agreement requiring national treatment for trade in natural gas (FTA countries).

As well, Pieridae USA has applied to the DOE for a long-term multi-contract authorization to export natural gas to Canada for end use in Canada and for export as LNG to countries with which the U.S.A. has not entered into a free trade agreement requiring national treatment for trade in natural gas (Non-FTA countries). The DOE is reviewing this application and a favourable response is expected in the near future.

These authorizations together will allow for the export of up to 292 billion cubic feet (Bcf) per annum of natural gas (0.8 Bcf per diem) from the U.S.A. All of the natural gas exported to Canada will be purchased by Pieridae from Pieridae USA and used primarily as feedstock in the production of LNG at the LNG Facility for export to FTA countries and Non-FTA countries.

NATIONAL ENERGY BOARD OF CANADA On August 13, 2015 the National Energy Board of Canada issued Pieridae a twenty year license to import up to 419.75 Bcf per annum of natural gas and a twenty year licence to export up to 587.65 Bcf per annum of natural gas as LNG.

THE WIDER COMMUNITY Pieridae and the Municipality have entered into a community benefits agreement. Under this agreement Pieridae will use its best efforts to achieve the stated objectives including offering contracts of employment and procurement to persons who: (a) are residents of the Municipality or are Indians under the Indian Act (Canada) and (b) are qualified and able to fulfill the obligations of such contracts in preference to other persons who are either equally or less qualified and able.

Local businesses with services to offer are invited to register on our website goldborolng.com/business-opportunities/vendors/.

Pieridae is also presently negotiating a community benefits agreement with Kwilmu’kw Maw-klusuaqn (KMK). Pieridae anticipates that this agreement will be finalized and executed early in 2016 with implementation to follow shortly thereafter.

Pieridae will participate in a second meeting with the Fisheries Liaison Committee expected in June, 2016. Notice of the particular day and time will be provided to committee members in advance of this meeting.

A Community Liaison Committee meeting was held in Goldboro on September 22, 2015. The members of the committee are listed below and interested residents in the community are encouraged to direct their questions to any of them, or to Pieridae’s office.

Frank Fougere (Chair) f.fougere@ns.sympatico.ca 902-387-2403

Donna Hochman dhochman@ns.aliantzinc.ca 902-358-2295

Janice Keller janlankeller@gmail.com 902-387-2543

John Peitzsche johnnyns2002@yahoo.com 902-387-2800

Rickey McLaren rmclaren@modg.ca 902-328-2515

Robert Walsh robwalsh220@hotmail.com 902-328-2519

Jason Langley jasonglennlangley@hotmail.com 902-387-2169

Gordon MacDonald gmacdonald@modg.ca 902-533-3705

A GROWING TEAM Pieridae is pleased to welcome the following new members to the team.

Riccardo Bortolotti, Managing Director, Business Development Riccardo has been active in the European energy industry for the past twenty years, with experiences ranging from project based transactions (including project finance as well as mergers and acquisitions) to trading activities, with particular emphasis on the oil, gas and power industries.

Thomas D. Ciz, General Counsel and Corporate Secretary Thomas is a lawyer with over twenty years of experience in commercial and corporate law and taxation. He holds a business degree from the University of Alberta and a law degree from the University of British Columbia. Thomas practiced law initially as an associate and partner at McCarthy Tétrault LLP and more recently served as general counsel for a successful private corporation. Before commencing his career in law, Thomas practiced accountancy at Deloitte LLP and later qualified as a chartered accountant.

Greg Stevenson, Chief Financial Officer Greg is a chartered accountant with nineteen years of experience working with both junior and intermediate public oil and gas companies, with international operations. Prior to joining Pieridae, Greg was the CFO of WesternZagros Resources Ltd., a TSX Venture listed corporation, from 2007 until 2015.

Ryan Scheie, Financial Analyst Ryan is a financial analyst with experience developing financial models for a number of energy industry clients, primarily in LNG. He also worked in Operations at the Suncor Refinery in Edmonton, Alberta. Ryan is originally from Fort Saskatchewan, Alberta and has a degree in Economics from the University of Alberta. He will be based in Pieridae’s Calgary office.

NEW CALGARY OFFICE Pieridae Energy Limited recently opened an office in Calgary, Alberta. With the establishment of this new office, Pieridae’s presence now extends to the preeminent centre in Canada for natural resource development and investment.

DEVELOPMENT OF THE PROJECT ONSITE WORK Over the past months, Pieridae, in coordination with its consultants, has completed the geotechnical investigation in the Dung Cove and Betty’s Cove areas. This work consisted of drilling into the seabed to determine the depth at which bedrock exists in these areas. Pieridae’s consultants, including Golder Associates Ltd., McNally Construction Inc., and Logan Geotech Inc., completed this work ahead of schedule and de-mobilized in July of 2015. The final phases of the assignment, including laboratory testing of soil and rock samples and delivery of the final geotechnical reports, is expected to be complete in the first quarter of 2016.

Pieridae also performed geotechnical investigations on land in coordination with Dillon Consulting Limited. These investigations have been performed in the Meadow Lake area and are relevant in the designing of the water supply pipeline and intake. This design work is expected to be completed early in 2016.

OFFSITE WORK In July 2015, CB&I UK Limited (CB&I) continued with the front-end engineering and design (FEED) of the LNG Facility. This work includes an analysis of the availability of the local workforce, and health and safety training for future employees.

SOEI GAS PLANT

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PLANTNORTH

TRUENORTH

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PROPOSED SITE PLAN

For project information and vendor registration visit: www.GoldboroLNG.com

1718 Argyle Street, Suite 730 Halifax, NS B3J 3N6

T: 902.492.4044 F: 902.492.5211 bonnie.sheppard@pieridaeenergy.com

COMMUNITY INVOLVEMENT Pieridae recently agreed to offer financial support for a research study to be conducted under the auspices of the Nova Scotia Community College (NSCC) and Natural Sciences and Engineering Research Council of Canada (NSERC).

This research involves the testing of new methods and equipment to perform an airborne topo-bathymetric LiDAR survey to determine elevation and mapping of the seabed. LiDAR is a remote sensing technology that measures distance by illuminating a target with a laser and analyzing the reflected light. NSCC students and staff performed their flyover of the proposed site of the LNG Facility on October 26, 2015.

Data interpretation and mapping will be completed early in 2016. During this process Pieridae will provide supporting data for overlapping areas. Research is expected to be completed by March, 2016.

Pieridae remains committed to supporting and working with the Nova Scotia community and are proud to have supported the following organizations this year:

• Goldboro/Isaac’s Harbour Community Development Association – Canada Day

• Harbourview Volunteer Fire Department, Isaac’s Harbour – 40th Anniversary

• Mental Health Foundation of Nova Scotia – Festival of Trees

• Sherbrooke Village – Old Fashion Christmas

• Cormorant Memorial Fund – Guestbook Station

• St. Mary’s District Food Bank

PROJECT TIMELINE2012

2014

2015

2013

2016

2021

COMMENCEMENT OF ENVIRONMENTAL ASSESSMENT

CONSULTATION & ENGAGEMENT PROCESS

PRE FRONT END ENGINEERING AND DESIGN COMPLETION

COMPLETION OF ENVIRONMENTAL ASSESSMENT

PERMITS & APPROVALS

CONSULTATION & ENGAGEMENT (CONT’D)

COMMENCEMENT OF OPERATIONS

FINAL INVESTMENT DECISION FOR THE PROJECT

CONSULTATION & ENGAGEMENT (CONT’D)

COMMENCEMENT OF CONSTRUCTION

ONSHORE & OFFSHORE INVESTIGATIONS

PERMITS & APPROVALS (CONT’D)

CONSULTATION & ENGAGEMENT (CONT’D)

RECEIVED ENVIRONMENTAL ASSESSMENT APPROVAL

CONTINUANCE OF FRONT END ENGINEERING AND DESIGN

PERMITS & APPROVALS (CONT’D)

2016 –2020

CONSTRUCTION

TESTING, START UP & COMMISSIONING