PrairieSky Royalty Announces Closing of Range Royalty Acquisition and Confirms Dividend Increase

CALGARY, ALBERTA--(Marketwired - Dec. 19, 2014) - PrairieSky Royalty Ltd. ("PrairieSky") (TSX:PSK) is pleased to announce that it has completed the previously announced acquisition of Range Royalty Limited Partnership ("Range"). With closing of the transaction, PrairieSky acquired approximately 3,000 boe/d (40% liquids) of high quality royalty production and 3.5 million acres of royalty lands.

With closing of the Range acquisition, PrairieSky has increased its annual dividend from $1.27 per share to $1.30 per share. The first increased dividend will be paid in February 2015 to shareholders of record on January 30, 2015.

As previously announced, Ms. Margaret McKenzie and Mr. Grant Zawalsky have been appointed to PrairieSky's Board of Directors. In addition, Mr. Bruce Waterman and Mr. Brian Shaw have resigned from PrairieSky's Board of Directors effective today's date. Both Mr. Waterman and Mr. Shaw were nominees to the PrairieSky Board of Directors under the Governance Agreement with Encana Corporation which terminated upon closing of the previously announced secondary offering by Encana of its remaining share position in PrairieSky in September 2014.

The Board of Directors wishes to thank Mr. Waterman and Mr. Shaw for their contributions to PrairieSky.

About PrairieSky Royalty Ltd.

PrairieSky is a royalty-focused company, generating royalty revenues as petroleum and natural gas are produced from its properties. PrairieSky has a diverse portfolio of properties that have a long history of generating stable free cash flow and that represent one of the largest and most concentrated independently-owned fee simple mineral title positions in Canada. PrairieSky common shares trade on the Toronto Stock Exchange under the symbol PSK.