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Investor Presentation

Investor Presentation. Summer 2019. Corporate Profile. Focused on oil and gas royalties. 1. See Non-GAAP Financial Measures 2. Based on current dividend rate 3. Based on FRU closing share price of $8.47 on June 30, 2019 4. Based on 118.5 million shares outstanding as June 30, 2019

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Investor Presentation

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  1. Investor Presentation Summer 2019

  2. Corporate Profile Focused on oil and gas royalties 1. See Non-GAAP Financial Measures 2. Based on current dividend rate 3. Based on FRU closing share price of $8.47 on June 30, 2019 4. Based on 118.5 million shares outstanding as June 30, 2019 5. Based on net debt and trailing 12-month funds from operations at June 30, 2019 TSX : FRU

  3. 2019 Second Quarter Results Generated funds from operations of $0.25/share, comfortably above dividend levels Continue to provide a sustainable dividend with payout at low end of our dividend strategy Grew royalty production by 2% quarter-over-quarter, reflecting the quality of our asset base Completed a royalty transaction for $30 million at end of quarter, adding a multi-basin royalty stream TSX : FRU

  4. North Dakota Mineral Title Acquisition • Freehold announced its first U.S. royalty transaction subsequent to Q2-2019, acquiring 5,800 gross (450 net) mineral title acres along the border of McKenzie and Mountrail counties in North Dakota. Highlights include: • $9.8 mm USD purchase price • $2.7 mm USD 12 mo. after-tax cash flow • ~200 boe/d (75% oil weighted) H2 2019 estimated royalty production • 30% production growth forecasted in 2020 • 100% held by production • Wells operated by Continental and Petro-Hunt TSX : FRU

  5. Investment Thesis Opportunistic acquiror • Completed >$300 million in royalty transactions over the past three years • $30 million in deals YTD, funded via free cash flow (1) • Added a combination of low decline and growth assets • 10% of industry drilling within western Canada is on Freehold land Financial strength, low risk • >$35/boe operating netback (1) • ~$5.25/boe cash costs (2) (3) • 98% operating margin (1) • 0.9x (1) debt to funds from operations Attractive yield at current share price levels • 7% sustainable dividend yield (1) • 12% free cash flow yield (1)(2) • Well funded payout set at 60%-80% funds from operations Oil-weighted upside • 89% of 2019E revenue derived from oil and NGL’s (3) (1) Based on Q2-2019 financial results (2) See Non-GAAP Financial Measures (3) Based on June 30, 2019 closing price and August 1, 2019 Operating Guidance TSX : FRU

  6. Near-Term Outlook • Increasing Activity on our Royalty Lands • Created 102 new leases on our royalty lands in 2018 • >50% increase in gross spending on our lands in 2018 over 2017 • Remain flexible with royalty rates on our lands • Most of the activity is on oil-weighted targets • Freehold completed $62 million in transactions in 2018 • $30 million in value enhancing royalty deals YTD (2) • Growing volumes and building sustainability through quality acquisitions • Create Value via Acquisitions • Net debt to funds from operations <1.0x • Free cash flow yield of 12% in Q2-2019 (1) • Dividend within our payout strategy (60%-80% payout ratio (1)) Maintaining our Financial Flexibility See Non-GAAP Financial Measures YTD as of Q2-2019 TSX : FRU

  7. Strong Track Record GROWTH SAFETY 1. See Non-GAAP Financial Measures TSX : FRU

  8. 2018 Industry Drilling vs. Freehold Activity 719 (21.3 net) wells drilled on Freehold’s lands in 2018 Approximately 10% of all activity in western Canada was drilled on Freehold lands in 2018 Activity mirrors key areas of drilling in western Canada WELLS 2018 FRU Royalty Drilling 2018 Industry Drilling Source: GeoScout TSX : FRU

  9. Near-Term Free Cash Flow Allocation With an improving commodity price environment, Freehold has begun to generate free cash flow over and above our dividend. Our near-term focus is on allocating returns to our shareholders via: Dividend • Maintain 60-80% payout ratio • We have increased our dividend 2 out of last 3 years • Dividend evaluated quarterly Acquisitions • Growing volumes through quality acquisitions Debt • Maintain balance sheet strength (~$80 million of facility room) • <1.5x debt to funds from operations TSX : FRU

  10. Oil Price Leverage 2019E Annual free cash flow per share At current commodity price levels, Freehold generates significant funds from operations Identical assumptions to Freehold’s August 1st, 2019 Operating Guidance other than WTI oil price Free Cash Flow Per Share=Funds from Operations Per Share-Capital Spending Per Share see Non-GAAP Financial Measures TSX : FRU

  11. Sustainable Dividend Freehold continues to target a payout ratio of 60% – 80% Payout Ratio = Dividends declared/funds from operations see Non-GAAP Financial Measures TSX : FRU

  12. Strong Balance Sheet (at December 31, 2019) Freehold maintains financial flexibility with 2019E net debt/funds from operations of 0.8x Sector average sourced from Research estimates TSX : FRU

  13. Low Risk Profile The royalty model provides a number of advantages over typical E&P operators TSX : FRU

  14. Strong Operating Margins See Non-GAAP Financial Measures reflects period end June 30th, 2019 TSX : FRU

  15. Increasing Royalty Focus Freehold has grown royalty production while reducing our working interest volumes TSX : FRU

  16. Cash Costs Freehold is forecasting 2019E cash costs of ~$5.25/boe Cash costs =operating costs + interest expense + general & administrative costs + share based compensation payments (see Non-GAAP Financial Measures) TSX : FRU

  17. H1-2019 Royalty Drilling Results TSX : FRU

  18. Industry Drilling vs. Freehold Despite a slowdown in activity in western Canada, Freehold has achieved growth in net drilling on its royalty lands Growth in net wells reflects the quality of Freehold’s underlying royalty portfolio Source: Canadian Association of Oilwell Drilling Contractors TSX : FRU

  19. Viking Oil-Strong Cash Flow Generator Acquired acreage as part of a 2015 royalty acquisition Change in operator has resulted in a ramp-up in activity. Drilling represented ~60% of activity in H1-2019 Expect activity levels to remain a strong anchor for Freehold’s production and cash flow in 2019 and future years Multi-year drilling inventory remains Source: GeoScout TSX : FRU

  20. Clearwater Oil-Near-term Growth Upside In Q3-2018 Freehold acquired an interest across 170 sections in the emerging Clearwater oil play Proceeds funded an initial drilling program Drilling results have met initial type curve forecasts Expected to be a multi-year growth area for Freehold moving forward Source: GeoScout TSX : FRU

  21. Lease Counts 2014- YTD 2019 # of Leases Issued YTD as of June 30, 2019 TSX : FRU

  22. 2019 Guidance TSX : FRU

  23. Why Own Freehold See Non-GAAP Financial Measures Based on FRU closing share price of $8.47 on June 30, 2019 TSX : FRU

  24. Supplemental Information TSX : FRU

  25. Corporate Sensitivities Corporate sensitivities based on August 1, 2019 Key Operating Assumptions Calculations are performed independently and may not be indicative of actual results that would occur when multiple variables change at the same time. TSX : FRU

  26. Royalty Production History Freehold has increased royalty production by >25% since Q2-2015 Royalty Production (boe/d) 2019E = Midpoint of August 1, 2019 royalty production guidance TSX : FRU

  27. Dividend History Freehold increased its dividend in 2017 & 2018 TSX : FRU

  28. Disciplined Acquirer TSX : FRU

  29. Diversified Royalty Payors TSX : FRU

  30. FRU Stock Price Tracks Oil Price 55% 2019E royalty oil and NGL production 100% unhedged TSX : FRU

  31. Owner of Legacy Lands 8s and 26s • Mineral titles held in perpetuity • Historic land grant to predecessor of Hudson’s Bay Company in 1670 by the King of England • HBC surrendered land to Canada in 1870 for cash and 1/20th of lands (Section 8 and ¾ of 26) in Western Canada (HB Lands) • Portion of the HB Lands purchased by Canpar in 1979 • Producing HB Lands purchased from Canpar by Freehold in 1996 TSX : FRU

  32. Advisories Forward-Looking Information This presentation offers our assessment of Freehold’s future plans and operations as at August 1, 2019 and contains forward-looking information including, 2019 expected average daily royalty and total production, 2019 estimated cash costs, 2019 operating income, expected percentage of 2019 production from royalties, expected dividends, expected 2019 payout ratio, 2019 net debt to trailing funds from operations, 2019 revenue from oil and NGLs, expected 2020 funds from operations and production associated with our recently acquired U.S. assets, expected 2019 general and administrative expense per boe, expected 2019 operating costs per boe, expected sensitivities of funds from operations and free cash flow to changes in commodity prices, expected 2019 payout ratio, Freehold’s objective to allocate returns to shareholders and how it intends to do so, our expectations with respect to paying dividends, pursuing growth through acquisitions and maintaining balance sheet strength, sensitivities of 2019 free cash flow estimates to different commodity prices, expected activity levels on our royalty lands, drilling inventory and other benefits associated with certain of Freehold's royalty interests, and 2019 broader guidance including commodity forecasts. This forward-looking information is provided to allow readers to better understand our business and prospects and may not be suitable for other purposes. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond our control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, taxation, royalties, stock market volatility, our ability to access sufficient capital from internal and external sources, counterparties to transactions to satisfy their contractual obligations, third parties' ability and willingness to continue development of lands in which Freehold has an interest as expected, and risks inherent in the oil and gas industry. In addition, the paying of dividends is subject to the discretion of the board of directors of Freehold and is subject to a number of factors. As such future dividends are unlikely to reflect the past dividends paid on the common shares. Risks are described in more detail in Freehold's annual information form for the year ended December 31, 2018 which is available under Freehold's profile on SEDAR at www.sedar.com. You are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking information. Although we believe that the assumptions underlying such forward-looking statements are reasonable, we can give no assurance that the plans, intentions or expectations upon which such forward-looking statements are based will occur. In addition to other factors and assumptions that may be identified in this presentation, assumptions have been made regarding, among other things: the impact of increased competition, the general stability of the economic and political environment in which we have an interest in oil and natural gas properties, the timely receipt of any required regulatory approvals, policies with respect to acquisitions and payments of dividends, the ability to obtain qualified staff, equipment and services in a timely and cost efficient manner, drilling results, the ability of the operator of the projects we have an interest in to operate the field in a safe, efficient and effective manner, the continued development of the lands in which we have a royalty interest, that third parties such as royalty payors, operators of the lands in which we have a working interest and other contractual counterparties will satisfy their obligations as required, our ability to obtain financing on acceptable terms, field production rates and decline rates, the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration, the performance and characteristics of the oil and natural gas properties in which we have an interest, the timing and costs of pipeline, storage and facility construction and expansion and the ability of the operator of the properties in. You are further cautioned that the preparation of financial statements in accordance with International Financial Reporting Standards requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates may change, having either a positive or negative effect on net income, as further information becomes available and as the economic environment changes. We can give no assurance that any of the events anticipated will transpire or occur, or if any of them do, what benefits we will derive from them. The forward-looking information contained herein is expressly qualified by this cautionary statement. To the extent any guidance or forward looking statements herein constitute a financial outlook, they are included herein to provide readers with an understanding of management's plans and assumptions for budgeting purposes and readers are cautioned that the information may not be appropriate for other purposes. Our policy for updating forward-looking statements is to update our key operating assumptions quarterly and, except as required by law, we do not undertake to update any other forward-looking statements. TSX : FRU

  33. Advisories cont. Non-GAAP Financial Measures Within this presentation, references are made to terms commonly used as key performance indicators in the oil and natural gas industry. We believe that operating income, operating margin, free cash flow, free cash flow yield, cash costs, cash netback and payout ratio are useful supplemental measures for management and investors to analyze operating performance, financial leverage, and liquidity, and we use these terms to facilitate the understanding and comparability of our results of operations and financial position. However, these terms do not have any standardized meanings prescribed by Canadian generally accepted accounting principles ("GAAP") and therefore may not be comparable with the calculations of similar measures for other entities. Operating income, which is calculated as gross revenue less royalties and operating expenses, shows the profitability of our revenue streams as it provides the cash margin for product sold after directly related expenses. Operating margin represents operating income as a percentage of our gross revenue and once again shows the profitability of our revenue streams. Free cash flow is a measure used by dividend paying companies to provide an estimate of how much cash might be available for the payment of dividends. Free cash flow is calculated by subtracting capital spending from funds from operations. In periods where Freehold has no capital expenditures, free cash flow is interchangeable with funds from operations. Cash costs is a total of all recurring costs in the statement of income (loss) deducted in determining funds from operations. For Freehold cash costs are identified as royalty expense, operating expense, general and administrative expense, interest expense and share based compensation payments. Cash costs are key to funds from operations, representing the ability to sustain dividends and/or repay debt. Payout ratios are often used for dividend paying companies in the oil and gas industry to identify its dividend levels in relation to the funds it receives and uses in its capital and operational activities. Payout ratio is calculated as dividends declared as a percentage of funds from operations. In addition, this presentation refers to various per boe figures, such as revenues and costs, which provide meaningful information on Freehold's operational performance. Per boe figures are derived by dividing the relevant revenue or cost figure by the total volume of oil and natural gas production during the period, with natural gas converted to equivalent barrels of oil as described below. See Freehold's most recent management's discussion and analysis, which is available on SEDAR at www.sedar.com, for more details on Freehold's use of Non-GAAP Financial Measures. Barrels of Oil Equivalent (boe) ratio: 6 Mcf = 1 barrel. The 6:1 boe ratio is based on an energy equivalency conversion method primarily applicable at the burner tip. It does not represent a value equivalency and is not based on either energy content or current prices. While the boe ratio is useful for comparative measures, it does not accurately reflect individual product values and might be misleading, particularly if used insolation. As well, given the value ratio, based on the current price of crude oil to natural gas, is significantly different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio may be misleading as an indication of value. Terminology. Throughout this presentation various abbreviations are used to represent different periods of activity. Any references to “year-to-date” and “YTD” refer to the period from January 1 to June 30 of the stated year. “Q2” refers to the period from April 1 to June 30. “H1” refers to the period from January 1 to June 30. “H2” refers to the period from July 1 to December 31. “E” refers to an estimated or expected amount or value for the stated year or at the stated year’s end (see Forward-Looking Information). “A” refers to actual reported amounts or values for the stated period. TSX : FRU

  34. Investor Relationstoll free 888.257.1873telephone 403.221.0833website freeholdroyalties.com TSX : FRU

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