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Canadian Federal Tax Information

     • Dividends
     • Computation of Gain/Loss on January 27, 2016
     • Distributions (archived)

Dividends

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Eagle Energy Inc. hereby advises all shareholders that, effective from January 27, 2016, all dividends paid on its common shares will be designated as "eligible dividends" for Canadian federal income tax purposes. This designation will apply until a notification of a change is posted on this website.

For more information regarding the designation of dividends, please refer to the Canada Revenue Agency ("CRA") release dated December 20, 2006. If you have any questions regarding the taxation of eligible dividends, please contact your local office of the CRA.

Computation of Gain/Loss on January 27, 2016

The following summary is intended to provide information that may be of assistance to former holders of units ("Units") of Eagle Energy Trust ("Unitholders") or shares (the "Maple Leaf Shares") of Maple Leaf Royalties Corp. ("Maple Leaf Shareholders") who participated in the court-approved Plan of Arrangement implemented on January 27, 2016 (the "Arrangement"). Please refer to the section entitled "Certain Canadian Federal Income Tax Considerations" in the Information Circular on the Arrangement dated December 15, 2015 for further information. This summary is general information only and Unitholders and Maple Leaf Shareholders are urged to consult their tax advisors concerning the tax consequences of the Arrangement to them.

Click here for Eagle Circular Tax Disclosure

As described in the Information Circular, under the Arrangement, each Unitholder exchanged their Units for shares of Eagle Newco Inc., which then became shares of Eagle Energy Inc. on the amalgamation of Eagle Newco Inc. with certain affiliates. Similarly, each Maple Leaf Shareholder exchanged their Maple Leaf Shares for shares of Eagle Newco Inc., which then became shares of Eagle Energy Inc. on the amalgamation of Eagle Newco Inc. with certain affiliates.

On the exchange of the Units for shares pursuant to the Arrangement, a Unitholder who held their Units as capital property for tax purposes and is, at all relevant times and for the purposes of the Income Tax Act (Canada) (the "Tax Act"), a resident of Canada and not exempt from tax under Part I of the Tax Act (a "Resident Unitholder") will recognize a capital gain (or capital loss) equal to the amount, if any, by which the fair market value of the shares received exceeds (or is less than) the aggregate of the adjusted cost base of the Units to the Resident Unitholder, determined immediately before the effective time of the unit-for-share exchange, and any reasonable costs of disposition. The cost to the Resident Unitholder of the shares acquired is equal to the fair market value thereof.

On the exchange of the Maple Leaf Shares for shares pursuant to the Arrangement, a Maple Leaf Shareholder who chooses to recognize a capital gain (or capital loss) and who held their Maple Leaf Shares Units as capital property for tax purposes and is, at all relevant times and for the purposes of the Tax Act, a resident of Canada and not exempt from tax under Part I of the Tax Act (a "Resident Maple Leaf Shareholder") will recognize a capital gain (or capital loss) equal to the amount, if any, by which the fair market value of the shares received exceeds (or is less than) the aggregate of the adjusted cost base of the Maple Leaf Shares to the Resident Maple Leaf Shareholder, determined immediately before the effective time of the share-for-share exchange, and any reasonable costs of disposition. The cost to the Resident Unitholder of the shares acquired is equal to the fair market value thereof.

Neither Eagle Energy Trust nor Eagle Energy Inc. has the information to determine the adjusted cost base of any particular Resident Unitholder of their Units or of any particular Resident Maple Leaf Shareholder of their Maple Leaf Shares and each Unitholder and Maple Leaf Shareholder must determine such adjusted cost base using its own records. If you require assistance, please contact your tax advisor.

Eagle Energy Inc.'s estimate of the fair market value of the shares issued in exchange for the Units and Maple Leaf Shares is $0.73 per share. This estimate of the fair market value was determined based on the trading price of the Units/shares as of close of trading on January 27, 2016.

The estimate of fair market value is not binding on the Canada Revenue Agency or any particular Unitholder and all Unitholders should consult with their own tax advisors with respect to the appropriate mechanism of valuing the shares received pursuant to the Arrangement.



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