rairieSky to Acquire Substantial Portion of Canadian Natural's Royalty Assets for $1.8B

Canadian Natural Resources Limited

and PrairieSky Royalty Ltd.

are pleased to announce that they have entered into an agreement (the "Combination Agreement") to combine their royalty businesses, unifying two of the largest fee simple mineral title and royalty positions in Western Canada into a single Canadian enterprise (the "Transaction"). Through the Transaction, PrairieSky will acquire a substantial portion of Canadian Natural's royalty assets for an aggregate purchase price of $1.8 billion, consisting of $680 million in cash and the issuance of approximately 44.4 million PrairieSky common shares at an ascribed price of $25.20 per common share.Commenting on the Transaction, Andrew Phillips, President and CEO of PrairieSky said, "With this Transaction, Canadian Natural and PrairieSky have cooperated to form a true Canadian champion with a royalty land position that cannot be duplicated. With over 14.7 million acres of royalty lands, including over 7.7 million acres of fee simple mineral title (excluding coal), the combined asset base represents the largest independent oil and natural gas royalty position in Canada, with widespread exposure to multiple oil and natural gas resource plays, including an unparalleled position in the Viking light oil