Premium Dividend^TM and Dividend Reinvestment Plan (DRIP)

This Premium Dividend^TM and Dividend Reinvestment Plan (the "Plan") provides eligible shareholders of Perpetual Energy Inc. ("Perpetual") with the opportunity to reinvest their Dividends in new shares, which new shares will, at the participant's election, either be (i) purchased at a 5% discount to the Average Market Price on the applicable payment date and credited to the Participant's account under the Dividend Reinvestment Component of the Plan, or (ii) purchased at a 5% discount to the Average Market Price and exchanged under the Premium Dividend^TM Component of the Plan for a cash payment equal to 102% of the reinvested Dividends. 

Eligible shareholders are not required to participate in the Plan.  An eligible shareholder who has not elected to participate in the Plan will continue to receive its regular Dividends in the normal manner.

In order to elect to participate in either the Dividend Reinvestment Component or the Premium Dividend^TM Component, an eligible shareholder must enroll in the Plan directly or through the broker, investment dealer, financial institution or other nominee who holds Shares on the eligible shareholder's behalf. 

Transition from Previous Plan of Paramount Energy Trust

This Plan amends, restates and supersedes the Premium Distribution^TM and Distribution Reinvestment Plan of Paramount Energy Trust ("PET") dated September 18, 2009 (the "PET Plan"). 

If you were an eligible registered holder of trust units of PET and a participant in either the distribution reinvestment component or the Premium Distribution^TM component of the PET Plan prior to June 30, 2010, and as a result of  the conversion of PET to a corporation on June 30, 2010 you became an Eligible Shareholder who is a registered holder of shares and you continue to hold such shares at the relevant time, then you will be deemed to be a participant in the Dividend Reinvestment Component or the Premium Dividend^TM Component of the Plan, as the case may be, without any further action on your part.

If you were an eligible beneficial holder of trust units of PET (i.e., a holder of trust units whose trust units were not registered in their own name, but were instead held through a broker, investment dealer, financial institution or other nominee) and a participant in either the distribution reinvestment component or the Premium Distribution^TM component of the PET Plan through the nominee holder through which you held your trust units prior to June 30, 2010, and as a result of  the conversion of PET to a corporation on June 30, 2010 you became an eligible beneficial holder of shares and you continue to hold such shares at the relevant time, you should contact such nominee holder to confirm your continued participation in the Dividend Reinvestment Component or the Premium Dividend^TM Component of the Plan, as the case may be.

For those shareholders wishing to enroll in either component of the Plan, please review this list of Frequently Asked Questions, detailing the terms of the plan. The DRIP Enrollment Form is available here and also from Computershare Trust Company of Canada (the "Plan Agent"). Shareholders who are interested in these plans should complete the form and return it directly to Computershare.

We encourage you to review the links provided to define eligibility and enrollment arrangements. Alternatively please contact Computershare Trust Company of Canada directly should you have further questions.

Computershare Trust Company of Canada

100 University Avenue, 9th Floor
Toronto, Ontario M5J 2Y1
Attention: Dividend Reinvestment Department
Toll Free: 1-800-564-6253
Fax: 1-416-263-9394

• Premium Dividend^TM and Dividend Reinvestment Plan
• Frequently Asked Questions
• 2004-2009 Historical DRIP Pricing