Freehold Royalties Ltd. closes $132 Million Equity Financing to Fund New Joint Venture

July 16, 2014

Client: CIBC World Markets Inc.

On July 16, 2014, Freehold Royalties Ltd. (Freehold), a dividend-paying oil and gas company based in Calgary, Alberta, closed its previously announced bought deal financing, issuing 4,900,000 common shares at a price of $26.90 per share (the Issue Price) for gross proceeds of approximately $131.8 million, which included the partial exercise of the over-allotment option granted to the underwriters. The bought deal offering was completed through a syndicate of underwriters led by CIBC.

Concurrent with the closing of the bought deal offering, the pension trust funds for employees of Canadian National Railway Company (CN Pension Trust Funds) purchased approximately $15 million of Freehold common shares, at the Issue Price on a non-brokered private placement basis.

The aggregate gross proceeds raised by Freehold pursuant to the bought deal offering and the investment by the CN Pension Trust Funds totalled approximately $146.8 million. Freehold used a portion of the net proceeds from the bought deal offering and investment by the CN Pension Trust Funds to fund its commitments pursuant to a new Joint Venture and expects to use approximately $21 million to pay down a portion of outstanding indebtedness.

Norton Rose Fulbright acted for the underwriting syndicate for the public offering led by CIBC World Markets. The team was led by Marcus Archer and included Kathleen Cowick, Darren Hueppelsheuser, Jason Giborski, Robert Froehlich and Anna Wingfield