SilverWillow Energy September 2012 Presentation

Peters & Co. Limited’sNorth American Oil and Gas ConferenceSeptember 11-13, 2012TorontoBuilding Value in Canada’s Oil Sands

Forward Looking Information (1)Certain information in this presentation constitutes "forward-looking information" (within the meaning of applicable Canadiansecurities laws) regarding SilverWillow Energy Corporation’s (“Corporation”) business and affairs. Such information ("forward-looking statements") are generally identifiable by the terminology used, such as "anticipate", "believe", "intend", “view”, "proposed’,"plan", "expect", "estimate", "budget", "outlook", "should", "would", "indicative", "potential", “illustrative”, “growth”, “upside”, “go-forward”, “scenarios”, “outcome”, “notional”, "may" or other similar words and include statements relating to or associated withindividual wells, regions or projects.Statements relating to "resources" are forward-looking statements, as they involve the implied assessment, based on estimatesand assumptions, that the resources described, exist in the quantities predicted or estimated, and can be profitably produced inthe future.Assumptions upon which certain of such forward-looking statements are based include assumptions regarding, among otheritems: future crude oil, bitumen, and natural gas prices; the Corporation’s ability to obtain qualified staff and equipment in a timelyand cost-efficient manner to meet the Corporation’s requirements; the regulatory framework representing royalties, taxes andenvironmental matters in which the Corporation conducts its business; the Corporation’s ability to market production of bitumensuccessfully to customers; the Corporation’s geological and engineering estimates; continuity between core holes; the geographyof the areas in which the Corporation is exploring; the impact on the Corporation of increasing competition; the Corporation’sability to obtain financing on acceptable terms; and those other assumptions described elsewhere in this presentation. Theseassumptions are based on certain factors and events that are not within the control of SilverWillow Energy and there is noassurance they will prove to be correct. 2

Forward Looking Information (2)The forward-looking statements are subject to known and unknown risks and uncertainties and other factors which may causeactual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Suchrisks, uncertainties and factors include, among others: costs associated with the production and upgrading of bitumen; the impactof competition; the need to obtain required approvals and permits from regulatory authorities; liabilities as a result of accidentaldamage to the environment; compliance with and liabilities under environmental laws and regulations; the uncertainty of estimatesby the Corporation’s independent consultants with respect to the Corporation’s bitumen resources; the volatility of crude oil andnatural gas prices and of the differential between heavy and light crude oil prices; the risks associated with exploring for,developing and producing bitumen; changes in the foreign exchange rate amount between the Canadian and the U.S. dollar;difficulties encountered in delivering bitumen to commercial markets; risks that the Corporation is unable to sufficiently protect itsproprietary technology or may be subject to technology infringement claims from third parties; general economic conditions inCanada and the United States; failure to obtain industry partners and other third-party consents and approvals when required;royalties payable in respect of the Corporation’s production; the impact of amendments to the Tax Act on the Corporation;changes in or the introduction of new government legislation, including for example legislation concerning carbon dioxide relatingto the Corporation’s business; the uncertainty of the Corporation’s ability to attract capital when necessary. There are numerousuncertainties inherent in estimating bitumen, including many factors beyond the Corporation’s control, and no assurance can begiven that the indicated level of bitumen or the recovery thereof will be realized. In general, estimates of bitumen are based upon anumber of factors and assumptions made as of the date on which the resource estimates were determined, such as geologicaland engineering estimates, which have inherent uncertainties. There is no certainty that it will be commercially viable to produceany of the discovered resources from the Audet lands. Forward-looking information is based on the opinions and estimates ofmanagement at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors thatcould cause actual events or results to differ materially from those anticipated in the forward-looking statements. The forwardlooking statements in this presentation are expressly qualified by this cautionary statement. SilverWillow Energy undertakes noobligation to update forward-looking information if circumstances or managements estimates or opinions should change except asrequired by law. The reader is cautioned not to place undue reliance on forward looking information. 3

Resource DisclosureThe resource estimates contained herein were extracted from reports prepared by Sproule Unconventional Limited (“Sproule”), anindependent engineering firm. The preparation and disclosure of the Corporation’s reported resource estimates are theresponsibility of SilverWillow’s management and require approval by the Corporation’s Reserves and Health, Safety &Environment Committee and Board of Directors. Sproule’s responsibility is to express an opinion on the discovered bitumeninitially-in-place data based on Sproule’s independent evaluations and review. Sproule carried out the evaluations and review inaccordance with standards established by National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities, whichrequire that the resource estimates be prepared in accordance with the COGE Handbook.“Discovered petroleum initially-in-place” is a defined term within the COGE Handbook. The following definition is consistent withthe equivalent COGEH term whilst incorporating revisions from NI 51-101.Discovered bitumen initially-in-place (equivalent to discovered resources) is that quantity of bitumen that is estimated, as of agiven date, to be contained in known accumulations prior to production. The recoverable portion of discovered bitumen initially-in-place (DBIIP) includes production, reserves, and contingent resources; the remainder is unrecoverable.DBIIP is currently the most specific resource category assignable to the Audet Lands. At this time it is not possible to classify thediscovered resources into one of the subcategories because development projects cannot be defined for the discovered resourcevolumes. It is yet to be determined what recovery process or processes will be applied in the Audet Lands due to currentuncertainty regarding cap rock extent and integrity. Discovered resources do not constitute, and should not be confused with,reserves. There is no certainty that it will be commercially viable to produce any portion of these discovered bitumen resources.All references to the “Sproule Resource Report: Audet” throughout this presentation reflect Sproule’s report datedOctober 11, 2011 entitled “Estimation Of The Bitumen-In-Place Volumes Of SilverBirch Energy Corporation In The AudetArea, Alberta” effective September 30, 2011. 4

SilverWillow Highlights • On April 4, 2012, SilverWillow Energy Corporation commenced operations as a result of a plan of arrangement between SilverBirch Energy Corporation and Teck Resources Ltd. • The SilverWillow management team is comprised of members of the former SilverBirch management team and is focused on exploring and developing in situ resources in the Athabasca oil sands area in north-eastern Alberta Focused on In Situ Oil Sands – All 100% owned • Audet – (23,040 acres) • 1.69 B barrels of Discovered Resource1 • Currently evaluating development of potential SAGD project areas • Birch Mountains – (94,080 acres) • Immediately adjacent to Frontier Oil Sands Mine • Other Exploration Lands – (57,600 acres) SilverWillow is a pre-production company focused on the exploration for, anddevelopment of, in situ opportunities within the oil sands and heavy oil industry 1. Sproule Resource Report: Audet 5 5

Teck TeckTeck Plant Plant Plant Proposed Proposed New Terminal Plant Woodland/ Norealis Pipelines SilverWillow lands 6

In Situ Exploration & DevelopmentSilverWillow provides an exciting new platform Birchto unlock the intrinsic value of: Mountains 100% WI• 100% owned, in situ oil sands prospect situated on the Audet Lands, and• the high exploration potential of the 100% Jordan owned Birch Mountain leases 100% WI Audet 100% WI SilverWillow lands 7 7

Audet: Estimate of Oil Sands Thickness• 72 core holes drilled• Depth to top of oil sands ranging from 100 to 175 metres 8

Audet: A High Quality Reservoir 02-15-098-03W4 Weight % 150 0 20 McMurray 160 From Core 170 Analysis 180 190 200 Devonian Core and well log data from 2011 coring program indicate: • Average bitumen saturation: 81% (based on samples with minimum 6 mass % bitumen) • Excellent porosities and permeabilities • No significant shale breaks or interbedded shales • Presence of upper lean bitumen zone in some areas • No bottom water 9

Audet: More Examples of Core 10

Audet Work Plan 2012 Delineation of prospective areas within Audet Conducted mini-frac tests in core holes for evaluation of cap rock integrity Standard lab analysis of core samples from 2012 drilling program Source water evaluation and testing (for process water)• Geomechanical testing and analysis to evaluate cap rock integrity (includes analysis of mini-frac tests and triaxial core testing) - underway• Processing and interpretation of 2D Seismic data - underway• Reservoir and geomechanical simulation to evaluate SAGD - underway• Processing facilities engineering and design• Preparation of regulatory application Audet Exploration Program -2012 11

Audet Notional Development Plan 2012-2014 Execute 2012 winter program – delineation drilling, 2D seismic, mini-frac testing (cap rock)• Analysis and integration of geological, geophysical and hydrogeological data• Conduct a scoping level study to determine full SAGD development potential• Conduct a thermal reservoir & geomechanical simulation to determine safe operating pressure and SAGD production potential• Engineering studies for design of a 12,000 bbl/d extraction plant, including infrastructure, access, utilities and employee housing• Conduct environmental baseline studies, and an Environmental Assessment• Preparation and submission of a regulatory application for a SAGD project• Updated resource estimate expected Q1 2013 2010 2011 2012 2013 2014 2015 2016 2017 Audet Explore, Delineate and Evaluate Updated Resource Estimate Engineering and Development Works Regulatory Submit Application in 2013 Approval Sanction Access / Site Construction Preparation Commissioning First Oil PRODUCTION 12

Birch Mountain Exploration• 25 core holes recently drilled and evaluated (7 core holes on uplands)• Immediately adjacent to thick bitumen deposit at Frontier Mine Project • Prospective in Wabiskaw D & Middle McMurray formations Birch • Further Mountain Lands exploration Frontier required Mine Project 13 Source – Information Circular of SilverBirch Energy, February 28, 2012 13

Birch MountainWork Plan 2012 Approximate Quaternary Erosional Limit Completed a desktop geological study of the McMurray Formation of the area• Plan and conduct an exploration seismic acquisition program comprising approximately 100km of 2D coverage• Total of 147 sections (94,080 acres)• Sparse well control (i.e. one well per four sections)• 105 unexplored sections (67,200 acres) Birch Mtn. Lands Unexplored sections Existing well control 20m elevation contours 14

SilverWillow Notional Timeline 2010 2011 2012 2013 2014 2015 2016 2017 Audet Explore, Delineate and Evaluate Updated Resource Estimate Engineering and Development Works Regulatory Submit Application in 2013 Approval Sanction Access / Site Construction Preparation Commissioning First Oil PRODUCTION Birch Desktop Mountains Studies Exploration Further EvaluationOpportunity Identify, Evaluate and Acquire Value-adding Opportunities Analysis 15

Approved Budgeted Expenditures for 2012 ~$ millionsOpening cash & cash equivalents at April 4, 2012 ~25.0LESS Cash Outflows Audet Lands 7.5 Birch Mountains (seismic) 5.1 Corporate G&A 4.5 Estimated Accounts Payable 0.6 Sub-Total 17.7PLUS Cash Inflows Estimated Accounts Receivable 2.1 Interest income 0.1Estimated Closing Cash Position (Year End) 9.5 Further funding will be matched to delineation and development activites 16

Key TakeawaysDiscovered resource base of ~1,690 million bbls1 at Audet (in situ) • Working to define SAGD project area with suitable cap rockAdditional resource upside potential in Birch Mountains (in situ)Experienced leadership team with proven exploration/development record • Led by members from SilverBirch’s management teamA work plan focused on delivery of value growth by way of: • Progression of Audet through exploration and regulatory process with approval anticipated in the 2014 timeframe • Exploration of the existing portfolio of lands (now all 100% owned) • Assessment of new land positions & application of emerging technologiesWorking capital of ~$25 million • Assess financing alternatives, partnering opportunities and execution strategies 1. Sproule Resource Report: Audet 17

www.swenergy.ca SilverWillow Energy Corporation Bow Valley Square 1 1500, 202 – 6 Avenue SW Calgary, AB T2P 2R9 T 403 538 7030 F 403 538 7033 www.swenergy.ca 18

Audet Lands Background• In early 2010 UTS conducted a geophysical survey to assess the resource potential of the Audet new lands Jordan• In conjunction with Audet existing geological data, results from this program Plant indicated significant resource potential in 10- 15 sections Plant• The Audet Lands are Proposed close to the Lease 421 New Terminal Proposed Area in which UTS sold Plant its 50% working interest to Imperial Oil / ExxonMobil in 2009 for Woodland/ Norealis Pipelines $250 million 19

02-16-098-03W4 • High quality reservoir • Porosities in the mid 30’s Weight % • Permeabilities from 6 to 18 Darcy’s 0 20 From Core Analysis 20

Audet: A High Quality ReservoirResults1,2 from laboratory core analysis (from 2011 drilling) indicate: • Target formation: McMurray • Average porosity: 35% • Average bitumen saturation: 81% • Permeabilities: predominantly in the range 6 to 18 Darcys (see chart below) Notes: 1: above averages for porosity and bitumen saturation are results for core samples exhibiting a minimum 6 mass percent bitumen 2: permeability is a measure of the ability of the formation to allow movement of fluids. The Audet data represents a combination of results for both horizontal and vertical permeabilities 21

Comparative In Situ Reservoir Parameters Average Developed Net Pay Avg Avg Native Reservoir Reservoir Thic kness Permeability Bitumen Avg Reservoir Pressure TargetProjec t Company Depth (m) (m) (Darc ies) Saturation Porosity Pressure (kPa) (kPa) FormationTamarack Ivanhoe Energy 75 - 132 24-38 6 80% 33% ~500 1,250-1,450 McMurrayMcKay Suncor 135 15-35 1-5 76% 34% 300-500 1,500-2,000 McMurrayMacKay Athabasca Oil Sands 180 18 2-9 77% 33% 600 - 1,100 1,800 - 2,200 McMurraySTP-McKay Southern Pacific Res. 180 19 0.5 - 11 65% - 75% 32% 650 2,450 McMurrayLong Lake Nexen 200 30 6.3 75% 30% 1,200 2,750 McMurraySurmont ConocoPhillips 260 39 n.a. 80% 35% 1,700 3,000-4,500 McMurrayHangingstone Japan Canada Oil Sands 300 11 - 26 n.a. 85% 30% n.a. 4,500 McMurrayFirebag Suncor 320 36 6-10 79% 35% 800 3,150 McMurrayChristina Lake MEG Energy 360 20 3-5 80% 33% 2,100 2,700 - 3,500 McMurrayChristina Lake Cenovus 385 28 3 - 10 80% 30% 2,000 2,300-3,000 McMurrayJackfish Devon 415 15-40 2-10 80% 33% 2,700 2,700-2,900 McMurrayGreat Divide Connacher Oil & Gas 475 20 3-9 85% 33% 1,480 4,300 McMurrayFoster Creek Cenovus 500 30 6 85% 34% 2,700 2,400-2,700 McMurrayDover Athabasca Oil Sands 160 - 500 21 2-9 76% 35% 700 - 1,000 3,000 - 5,000 McMurrayAudet SilverW illow Energy * 100 - 175 n.a. 6 - 18 81% 35% n.a. n.a. Mc MurraySource: RBC Capital Markets & Company Reports *Reservoir parameters for SilverWillow Audet are based on results from the 34 core holes drilled in 2011 22

Resource Summary SilverWillow Bitumen Resources (millions of barrels) Discovered Bitumen Initially-In-Place1 Project 100% Audet (in situ) 1,690 Total Discovered Resources 1,690Exploration upside: • Birch Mountains - 100% working interest in 9 Leases (comprising 147 sections) with in situ potential • Jordan - 100% working interest in 2 leases (comprising 36 sections) of exploration lands east of the Athabasca River • A total of ~117,000 acres of exploration potential 1. Sproule Resource Report: Audet 23

SilverWillow Book Value & Share Stats Book Value (June 30, 2012): Current Assets $ millions Cash and cash equivalents 25.7 Accounts receivable 0.4 Prepaid expenses 0.2 26.3 Exploration and Evaluation Assets 96.0 Property and Equipment 0.2 Total Assets 122.5 • Total Implied book value ~ 123 million dollars or ~$2.30 / shareShare statistics (April 5 to June 28, 2012): Symbol SWE on TSX-V Shares Outstanding ~54 million Major Shareholders* Ownership Market Cap. (based on $0.96 / share) ~$51 million Kevin Douglas** 18.0% Total Share Volume since inception ~7.8 million The Children’s Investment Fund 17.5% VWAP since inception $1.23 / share West Face Capital Inc.** 16.6% Average daily volume (since listing) ~0.1 million SilverWillow Management & Board 5.2% Total 57.3% Source: Bloomberg * assumes ownership as at June 28, 2012 ** indirect ownership by board members 24

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SilverWillow Energy September 2012 Presentation

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