AUGUST 2013

Domestically - Building on Success in a Focused Core Area

Internationally - Delineating Large Unconventional Shale Resources

Madalena e n e r g y inc.

Head Office: MADALENA ENERGY INC. Suite 200, 707 - 7th Avenue SW Calgary, Alberta, Canada T2P 3H6

International Office: MADALENA ENERGY S.A. 1209 Posadas, 5th Floor Buenos Aires, ARG C1011ABE

www.madalenaenergy.com

MVN (TSX-V)

MADALENA: Corporate Overview

2

Market capitalization ~$115mm (as at July 26, 2013)

338.5mm shares outstanding (Basic)

Strong balance sheet: positive working capital ~$12.4mm (as at Mar. 31, 2013) + ~$6.5mm (July 11, 2013) net proceeds from flow-thru financing

Undrawn $13.0mm debt facility

Current production ~1,200 boe/d (~50% oil & liquids) + ~300 boe/d pending imminent facility installation

2P reserves of 3.9 mmboe (46% oil and liquids) as of Dec. 31, 2012*

Alberta, Western Canada +100,000 net acres (>150 net sections) strategically focused within the

Greater Paddle River Core Area

Large unbooked inventory of horizontal development locations

Increasing production and reserves on three horizontal resource plays

Neuquén Basin, Argentina +135,000 net acres (>210 net sections) across three blocks

Focus on developing conventional oil and delineating shale resources

Ryder Scott Resource Report (Net to MVN - Dec. 31, 2012):

Best Estimate TPIIP 34.8 billion BOE (51% Oil & NGLs)*

Best Estimate Total Contingent plus Prospective Recoverable Resources 2.9 billion BOE (45% Oil & NGLs)*

* See Reader Advisories

AUGUST 2013

Kevin Shaw, P. Eng., MBA – President & CEO Previously Managing Director & Head of Energy Research, Casimir Capital,

Senior E&P Research Analyst and Partner, Wellington West Capital Markets

Prior thereto, held various technical, senior management and/or officer roles with ExxonMobil (via Imperial Oil), Trimox Energy Inc., WorleyParsons.

Thomas Love, CA – VP, Finance & CFO Previously CFO, Online Energy Inc., CFO, Trimox Energy and Moxie

Exploration and President & CEO, Moxie Petroleum Prior thereto with Westward Energy Ltd. and Charterhall Oil Canada,

Articled at Clarkson Gordon & Co. (now Ernst & Young LLP)

Steve Dabner, P. Geol. – VP, Exploration Previously President and CEO, Online Energy Inc., President & CEO,

Trimox Energy and Moxie Exploration and VP Exploration, Moxie Petroleum

Prior thereto with Cimarron Petroleum Ltd. and Home Oil Company Ltd.

Brent Foster, P. Eng. - VP, Engineering Previously VP, Engineering, Online Energy Inc., VP, Engineering & COO,

Blue Mountain Energy Ltd. and VP, Engineering of a Private-co E&P Prior thereto with Rigel Oil and Gas Ltd., Home Oil Company Ltd, Santos

Robert Stanton, P. Eng. - VP, Operations Previously VP, Operations, Online Energy Inc., VP, Engineering and

Operations, Result Energy Inc. Prior thereto with Oiltec Resources Ltd., Pinnacle Resources Ltd., Jordan

Petroleum Ltd., Transwest Energy Inc., Triton Canada Resources Ltd., Canadian Worldwide Energy Ltd. and Petro-Canada Inc.

Raymond Smith, P. Eng. (Chairman) President, CEO & Director, Bellatrix Exploration Ltd.

Barry Larson VP Operations & COO, Parex Resources Inc.

Keith MacDonald President, Bamako Investment Management Ltd

Jay Reid Partner, Burnet, Duckworth & Palmer LLP

Ving Woo, P. Eng. VP, Engineering & COO, Bellatrix Exploration Ltd.

Kevin Shaw, P. Eng., MBA

MANAGEMENT TEAM

BOARD OF DIRECTORS

Ruy Riavitz – Argentina Country Manager Previously E&P Manager, Hidenesa Gas SA (now GyP of Neuquen) &

Independent Engineering Consultant Prior thereto Senior Consultant, PA Consulting, Reservoir Engineer, YPF

EXPERIENCED FULL-CYCLE OPERATING TEAM

3 AUGUST 2013

Greater Paddle River Core Area (>150 Net Sections of Land)

Three Key Resource Plays for horizontal multi-stage frac operations:

Play #1: Ostracod - Development - 60 net sections -Oil

Play #2: Notikewin/Wilrich - Development - 138 net sections -Liquids-rich gas

Play #3: Nordegg - Emerging - 149 net sections -Oil & liquids-rich gas

Additional opportunities exist across acreage in:

Viking oil, Rock Creek oil, Duvernay shale

Large Re-entry inventory on existing vertical wells

Drill-Ready Program for ongoing horizontal drilling / fracing

4 AUGUST 2013

DOMESTIC ASSETS: Alberta, Canada

GREATER PADDLE RIVER CORE AREA – Strategically Focused

ALBERTA

CALGARY

EDMONTON

GREENCOURT

PADDLE RIVER NITON

LEAMAN

BIGORAY

WILDWOOD

Madalena Lands

WEST COVE

MAHASKA

5 AUGUST 2013

>200 Gross Sections >150 Net Sections

High W.I.

Multiple Horizontal plays Operated Lands Operated Infrastructure

6 miles

Long Run Hz Location

Long Run Hz Well

3 Husky Hz Locations

6 AUGUST 2013

Ostracod Oil Prospectivity

• Est. 50+ Horizontal Locations

Madalena Lands

Depth to Ostracod

70 Gross Secs.

60 Net Secs.

Ostracod Rights

85% Avg. W.I.

2 Husky Hz Wells

MVN West Cove Hz Location

6 miles

⁽¹⁾ Average rate during final 24 hours of a production test @ 1400 kPa; Sales production after accounting for shrinkage and NGLs recovery (46% oil & NGLs)

2 MVN Paddle R. Hz Locations

3 Madalena Hz Wells (100% WI) 1-5: 307 BOE/d (IP30) 210 BOE/d (9 months) 8-5: 719 BOE/d (test)⁽¹⁾ 12-5: 547 BOE/d (test)⁽²⁾

RESOURCE PLAY #1: Ostracod Oil - Development

⁽²⁾ Average rate during final 24 hours of a production test @ 5400 kPa; Sales production after accounting for shrinkage and NGLs recovery (38% oil & NGLs)

Ø = 13.7% k = 5.33 md 2.69 gm/cc

HIGH QUALITY OSTRACOD SANDSTONE OIL RESERVOIR

0

50

100

150

200

250

300

350

6 12 18 24 30 36 42 48 54 60

Dai

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vera

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oe/d

)

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PADDLE RIVER OSTRACOD HORIZONTAL TYPE CURVE Capital cost ($M) 3,600

EUR (Mboe) 290

F&D cost ($/boe) 12.42

Netback ($/boe) 29.92

Recycle ratio 2.41x

IP30 (boe/d) 305

GOR (scf/bbl) 5000

NPV10% ($M) 2,961

IRR 51%

Payout (years) 1.9 All amounts are based on internally generated management estimates prepared by a qualified professional engineer

Price Deck = McD. Jan. 1/13 ($3.35/mcf & $87.50/bbl) adjusted for transportation & quality

RESOURCE PLAY #1: Ostracod Oil - Type Well Economics

7 AUGUST 2013

Madalena 1-5

TYPE CURVE ASSUMPTIONS

RESOURCE PLAY #2: Notikewin / Wilrich - Development

8 AUGUST 2013

Regionally Stacked Mannville Trends

• Focused on Notikewin & Wilrich

• Inventory of Horizontal Locations

• Liquids @ 28 to 35 bbls/mmcf

Madalena Lands

Depth to Notikewin

178 Gross Secs.

138 Net Secs.

Notikewin Rights

78% Avg. W.I.

LOWER WILRICH SANDS

UPPER WILRICH SANDS

NOTIKEWIN CHANNEL TRENDS

NITON

WILDWOOD

6 miles

RESOURCE PLAY #3: Emerging Nordegg Oil & Liquids-Rich Gas

Madalena Lands

186 Gross Secs.

80% Avg. W.I.

149 Net Secs.

Nordegg Rights

Nordegg Resource Widespread across Madalena Lands

Inventory of Horizontal Locations Initial Focus – Wildwood Area Liquids-rich with Vertical

Producers at >100+ bbls/mmcf

Depth to Nordegg

9 AUGUST 2013

NORDEGG RESOURCE + 55 MM BOE of Oil and LIQUIDS-RICH

GAS PRODUCED TO DATE

Madalena 15-12 Horizontal

GREENCOURT

PADDLE RIVER

BIGORAY

LEAMAN

WILDWOOD

6 miles

RESOURCE PLAY #3: Type Well Economics Emerging Nordegg Oil & Liquids-Rich Gas

Capital cost ($M) 3,700

EUR (Mboe) 621

F&D cost ($/boe) 5.96

Netback ($/boe) 17.99

Recycle ratio 3.02x

IP30 (boe/d) 959

LGR (bbl/mmcf-Sales) 130

NPV10% ($M) 5,044

IRR 131%

Payout (years) 1.0 All amounts are based on internally generated management estimates prepared by a qualified professional engineer

Price Deck = McD. Jan. 1/13 ($3.35/mcf & $87.50/bbl) adjusted for transportation & quality

OFFSETTING WILDWOOD NORDEGG VERTICAL PRODUCER (MVN 0% WI)

NORDEGG

PEKISKO

6% SS Ø

0

1000

2000

3000

4000

5000

6000

7000

6 12 18 24 30 36 42 48 54 60

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Months

WILDWOOD NORDEGG HORIZONTAL TYPE CURVE

-ON-STREAM: SEPT. 2003

10 AUGUST 2013

13m Net Pay

TYPE CURVE ASSUMPTIONS

To: May 2013 GAS OIL H2O BOE

CUM: 1,341 mmcf 58,642 bbls 109,347 bbls 282,170 boe

CUR: 231 mcf/d 24 bopd 16 bwpd 63 boepd

Source: Geological Atlas of the Western Canadian Sedimentary Basin Figure 31.7: The occurrence and maturity of the Duvernay source facies in the Western Canadian Sedimentary Basin

DUVERNAY SHALE: Exposure on 100+ Net Sections

11 AUGUST 2013

MADALENA DUVERNAY LANDS >100 Net Sections (100% WI)

Recent Industry Duvernay Wells

DUVERNAY WEST SHALE BASIN: OVERVIEW

Edmonton

PEMBINA AREA

24 miles

KAYBOB AREA

Three large land blocks with stacked Conventional & Unconventional plays 279,642 gross acres (437 sections)

134,968 net acres (210 net sections)

Well positioned in both the shale oil and shale gas windows

Conventional development drilling combined with resource delineation

Ryder Scott Resource Report (Dec. 31, 2012) Evaluation of Resources net to Madalena’s Interest on all three blocks:

Best Estimate TPIIP

34.8 billion BOE (51% Oil & NGLs)* Best Estimate Total Contingent plus Prospective Recoverable Resources

2.9 billion BOE (45% Oil & NGLs)*

12 AUGUST 2013

INTERNATIONAL ASSETS: Neuquén Basin, Argentina

Strategically working to unlock value from shale & unconventional resources…..while developing conventional reservoirs

* See Reader Advisories

20 km

MVN’S NEUQUÉN ACREAGE - Three Large Land Blocks Surrounded by Major E&Ps

CORTADERA (40% WI) Partners: Apache (50%) & GyP (10%)

123,503 Gross acres (49,401 Net acres (77 Net sections))

New entrants have farmed-in or acquired existing blocks in order to build meaningful acreage positions:

COIRON AMARGO (35% WI) Partners: Roch (10% Op.), Apco (45%) & GyP (10%)

99,923 Gross acres (34,973 Net acres (54 Net sections))

13 AUGUST 2013

CURAMHUELE (90% WI) Partner: GyP (10%)

56,216 Gross acres (50,594 Net acres (79 Net sections))

14 AUGUST 2013

CONTINGENT + PROSPECTIVE RECOVERABLE RESOURCES * - Net to MVN by Block

CONTINGENT RECOVERABLE RESOURCES (C2 –Best Estimate)

BLOCK FORMATION Oil & NGLs (MMbbl)

Nat. Gas (Tcf)

Oil, NGLs & Nat. Gas (MMBOE)

Coiron Amargo

Vaca Muerta 18.3 0.006 19.3

PROSPECTIVE RECOVERABLE RESOURCES (Best Estimate)

Coiron Amargo

Vaca Muerta 249.7 0.079 262.9

Total Coiron Amargo 268.0 0.085 282.2

Curamhuele

Lower Agrio 328.6 0.266 373.0

Vaca Muerta 667.4 2.942 1,157

Total Curamhuele 996.0 3.208 1,530.6

Cortadera

Basal Quintuco 14.0 3.189 546.3

Vaca Muerta 14.8 3.189 546.3

Total Cortadera 28.8 6.121 1,048.9

TOTAL 1293.0 9.415 2,861.9

1.293 BILLION bbl of Recoverable Oil & NGLs

9.415 TRILLION cf of Recoverable Natural Gas

2.862 BILLION BOE Recoverable

45.2% Oil & NGLs * See Reader Advisories

15 AUGUST 2013

RYDER SCOTT RESOURCE REPORT SUMMARY *

TPIIP Oil & NGLs (MMbbl) Nat. Gas (Tcf) Oil, NGLs & Nat. Gas (MMBOE)

P90 P50 P10 P90 P50 P10 P90 P50 P10

Lower Agrio 3,835.7 4,763.4 5,834.0 2.777 3.955 5.443 4,298.4 5,422.5 6,741.2

Basal Quintuco 46.8 108.8 184.8 16.234 22.706 29.003 2,752.4 3,893.1 5,018.6

Vaca Muerta 10,868.0 12,722.8 14,940.3 40.610 76.610 116.238 17,636.4 25,491.2 34,313.3

14,750.5 17,594.9 20,959.1 59.620 103.271 150.684 24,687.4 34,806.8 46,073.2

CONTINGENT + PROSPECTIVE RECOVERABLE

RESOURCES

Oil & NGLs (MMbbl) Nat. Gas (Tcf) Oil, NGLs & Nat. Gas (MMBOE)

1C/Low 2C/Best 3C/High 1C/Low 2C/Best 3C/High 1C/Low 2C/Best 3C/High

Lower Agrio 86.2 328.7 596.2 0.070 0.267 0.524 97.9 373.1 683.5

Basal Quintuco 5.6 14.0 27.2 1.745 2.932 4.569 296.5 502.6 788.7

Vaca Muerta 309.6 950.2 1,642.8 2.662 6.216 12.653 7.532 1,986.1 3,751.6

401.4 1,293.0 2,266.2 4.477 9.415 17.746 1,147.5 2,861.9 5,223.8

TOTAL ON ALL THREE BLOCKS NET TO MVN:

Tabulated for the Lower Agrio, Basal Quintuco & Vaca Muerta zones only

950.2 MILLION bbl of Recoverable Oil & NGLs

6.216 TRILLION cf of Recoverable Natural Gas

1.986 BILLION BOE Recoverable

47.8% Oil & NGLs

34.807 BILLION BOE In-Place

* See Reader Advisories

TOTAL VACA MUERTA:

CURAMHUELE

COIRON AMARGO

Quintuco/Vaca Muerta Net I

sopach

CURAMHUELE

CORTADERA

COIRON AMARGO

Quintuco/Vaca Muerta Net Isopach

20 km

16 AUGUST 2013

Vaca Muerta Shale: Thickness up to 700m+ and gets deeper & thicker from east to west in the basin

Thickness >1000m with the inclusion of the overlying Quintuco

Vaca Muerta is Oil prone at Coiron Amargo, Gas prone around the Cortadera block and Oil, Liquids & Gas prone at Curamhuele given it is located across a transition zone (maturity is based on vitrinite reflectance values)

COIRON AMARGO

CURAMHUELE

CORTADERA

20 km

VACA MUERTA SHALE – Throughout All Three Blocks

VACA MUERTA/QUINTUCO THICKNESS VACA MUERTA SHALE MATURITY

Vaca Muerta Shale

- Gross thickness 100 - 150 meters

- All wells encountered oil in Vaca Muerta

- Oil production surrounding block

-Loma La Lata, BP 2 & 7 wells

- Two Vaca Muerta shale plays :

1) Regional

2) Naturally Fractured

- Successful CAS X-1 Workover recently completed

- Shell horizontal: Vaca Muerta 500m horizontal (w/5 fracs) tested 465 bopd (35⁰ API)

BLOCK #1: COIRON AMARGO – Big Vaca Muerta Oil & Big JVs

17 AUGUST 2013

MADALENA: 35% WI (34,973 net acres)

YPF discovers ~1 Billion Boe at Loma La Lata over 428 km2 area (5.6 mmboe/section) in the Vaca Muerta shale

YPF attributes basin-wide in-place Vaca Muerta resources of 661 Billion bbls oil & 1,181 tcf gas (July 2013)

Chevron signs $1.24 Billion Agreement for Vaca Muerta development with YPF at Loma La Lata Norte & Loma Campana blocks for 50% W.I.; Includes $250 Million for sunk costs (5,000 net boe/d @ $48,000/boe/d) and $500 Million for land ($10,245/acre for 48,804 net acres)(July 2013)

Bridas signs $1.5 Billion MOU for Vaca Muerta development involving a 2 year plan to drill 130 shale wells at Bajadade Anelo and Bandurria blocks to end up with 35% and 24.5 % W.I. respectively (announced Dec. 2012)

20 km

$1.2B JV

BLOCK #1: COIRON AMARGO

18 AUGUST 2013

Producing

Areas

Perforated intervals are shown with red columns in the depth track BP.x-2 has produced approx. 225 MBO; acidized only BP.a-7 has produced approx. 760 MBO, acidized and fractured 10 yrs after 400 MBO produced CAN.x-2 had shows while drilling CAS.x-1 is currently on production

Roch.Nq.CAS.x-1

TD=3608.0

13.7 km Roch.Nq.CAN.x-2

TD=3353.0

13.5 km YPF.Nq.BP.x-2

TD=3119.0

2.5 km YPF.Nq.BP.a-7

TD=2793.0

Correlation

0 200GAPI

-100 50MV

6 16IN

250 -250KG/MT

0.2 2000OHMM

0.2 2000OHMM

0.2 2000OHMM

350 50US/MT

0.450 -0.150V/V

1908 2898KG/MT

0 20B/E

450 90US/MT

3040

3060

3080

3100

3120

3140

3160

3180

3200

Correlation

0 200GAPI

-100 50MV

6 16IN

250 -250KG/MT

0.2 2000OHMM

0.2 2000OHMM

0.2 2000OHMM

350 50US/MT

0.450 -0.150V/V

1908 2898KG/MT

0 20B/E

450 90US/MT

2960

2980

3000

3020

3040

3060

3080

Correlation

0 200GAPI

-100 50V/V

6 16Inches

250 -250kg/m3

0.2 2000OHMS

0.2 2000OHMS

0.2 2000OHMS

350 50usec/m

0.450 -0.150V/V

1908 2898KG/MT

0 20

450 90usec/m

2600

2620

2640

2660

2680

2700

2720

Correlation

0 200GAPI

-100 50MV

6 16

250 -250

0.2 2000OHMM

0.2 2000OHMM

0.2 2000OHMM

350 50US/MT

0.450 -0.150

1908 2898

0 20

450 90US/MT

2440

2460

2480

2500

2520

2540

2560

Vaca Muerta

Vaca Muerta

VM 6

VM 6

VM 5

VM 5

VM 4

VM 4

VM 3 VM 3

VM 2VM 2

VM 1

VM 1

Catrie l Catrie l

S N

~225,000 BBL ~760,000 BBL

Key Offsetting Oil Wells in Naturally Fractured Vaca Muerta Shale

BLOCK #1: COIRON AMARGO - MVN: 35% WI – Operations

19 AUGUST 2013

CAS x-14

CAS x-15

CAS x-5

CAS x-1

COIRON AMARGO SUR

Vaca Muerta (Unconventional oil)

Two 3D seismic programs currently being processed

Upcoming Vaca Muerta shale exploration wells (Initially CAS x-14 & CAS x-15)

Shell drilling offsetting Vaca Muerta shale horizontals

COIRON AMARGO NORTE

Sierras Blancas (Conventional oil)

Northern portion (108 km2) converted to 25-year exploitation license

6 light oil discoveries to date and upcoming horizontal development

Upcoming horizontal re-entry at CAN x-2

Additional horizontal well inventory on multiple structures

Contingent Recoverable Resources (C2 –Best Estimate)*

FORMATION Oil & NGL’s (MMbbl)

Nat. Gas (Tcf)

Oil, NGL’s & Nat. Gas (MMBOE)

Vaca Muerta 18.3 0.006 19.3

Prospective Recoverable Resources (Best Estimate)*

Vaca Muerta 249.7 0.079 262.9

Total Contingent + Prospective*

268.0 0.085 282.2

* See Reader Advisories

High-Impact Agrio shale, Vaca Muerta shale & Mulichinco plays

Agrio shale to be evaluated in the CH.x-1 vertical well -Originally flowed ~150 bopd without frac/stimulation

Mulichinco to be evaluated in the Yp.x-1001 vertical well offsetting Yp.x-1st that production tested after acidizing 10 mmcf/d of gas and 500 bbl/d of 51º condensate

Majors including ExxonMobil and Total drilling nearby

Public Vaca Muerta results: Americas Petrogas/ExxonMobil:

Los Toldos II: IP 694 bopd (40⁰ API)

Los Toldos I: IP 3.2 MMcf/d + 18 bbl/d (54-58⁰ Condensate)

20 AUGUST 2013

CURAMHUELE

BLOCK #2: CURAMHUELE – MVN: 90% WI (Operated)

20 km

Prospective Recoverable Resources (Best Estimate)*

FORMATION Oil & NGLs (MMbbl)

Nat. Gas (Tcf)

Oil, NGLs & Nat. Gas (MMBOE)

Lower Agrio 328.6 0.266 373.0

Vaca Muerta 667.4 2.942 1,157.6

Total Curamhuele 996.0 3.208 1,530.6

* See Reader Advisories

Madalena 40% W.I.; Partnered w/

CorS.X-1 Deep Test cased to 4,500 m for both tight unconventional plays and shale gas

1. Total Quintuco/Vaca Muerta: 1097m thick

• Vaca Muerta : 520m thick

• Quintuco : 577m thick

2. Mulichinco : 206m thick

3. Agrio tight sands

Two stage frac conducted in Vaca Muerta shale

Vaca Muerta shale gas resource

Uphole zones (i.e. stacked on top of Vaca Muerta source rock) to be evaluated

BLOCK #3: CORTADERA – MVN: 40% WI

21 AUGUST 2013

CorS.x-1

10 km

Structure Map: Top Tordillo (Base of Vaca Muerta)

Prospective Recoverable Resources (Best Estimate)*

FORMATION Oil & NGLs (MMbbl)

Nat. Gas (Tcf)

Oil, NGLs & Nat. Gas (MMBOE)

Basal Quintuco 14.0 2.932 502.6

Vaca Muerta 14.8 3.189 546.3

Total Cortadera 28.8 6.121 1,048.9

* See Reader Advisories

Canadian Assets – Greater Paddle River Core Area Progress being made on all 3 primary resource plays (Ostracod , Notikewin and Nordegg)

Q2 focused on bringing Ostracod behind-pipe production volumes on-stream

H2-2013 program includes multi-well horizontal activity with oil & liquids-rich gas focus

Follow-up on Ostracod oil success with additional hztls

Continue evaluation on emerging Nordegg liquids-rich gas play

Test conventional Nordegg & Viking oil plays

Domestic strategy to continue to increase production, reserves & cash flow

Argentina Assets – Coiron Amargo, Curamhuele & Cortadera Completed detailed technical evaluation, review & assessment of shale, unconventional resources &

tight sand plays across all three blocks

2013 Coiron Amargo Program includes workovers, high impact Vaca Muerta shale drilling, horizontal development activity and 3D seismic

Curamhuele – Assess strategic partnering in 2013 to advance high impact Lower Agrio shale and Mulichinco tight sand plays (Potential re-entries of CH.x-1 and YP.x-1001) and Vaca Muerta;

Cortadera – Conduct re-entry at CorS.x-1 location to evaluate uphole zone(s) of interest

MADALENA (MVN TSX-V) – Activity & Catalysts for Growth

22 AUGUST 2013

23 AUGUST 2013

⁽¹⁾Average rate over the initial 30 hours of a production test (Unstimulated)

Lower Agrio Shale

The Lower Agrio cycle begins with a

marine flooding event that creates a good source rock in the centre of the basin, before the remainder of the cycle fills the basin with dominantly sandstone

Within the oil generation window

>250 meters thick across Curamhuele block

Multiple sections within Lower Agrio to be tested

Layered and brittle –Expected to be ideal to fracture

Horizontal multi-stage frac potential

Lower Agrio defines top of overpressuring

LOWER AGRIO SHALE ISOPACH

APPENDIX # 1: Lower Agrio Shale

Shale Basin

25 km

C.I. = 25 m

Chihuidos Anticline

CURAMHUELE

CORTADERA

Lower Agrio flowed ~150 bopd of 36 – 38⁰ oil at Ch.x-1 ⁽¹⁾

Intrusive body replacing L. Agrio

Gas indicated on logs

Lower Agrio Deltaic Sand

Facies

Lower Agrio flowed minor amounts of 35 – 40⁰ oil at YP.x-1 & 1001⁽²⁾

⁽²⁾Tested through perforations after acid stimulation at YP.x-1 and unstimulated at YP.x-1001

AUGUST 2013 24

Mulichinco Tight Sandstone Liquids-rich gas bearing tight sands play

Rapid thickening (>200 meters) of Mulichinco on the Cortadera and Curamhuele blocks

Significant horizontal development potential in the lowermost and coarser clastic part of Mulichinco deposited during an initial low-stand period

Total successfully drilling Mulichinco horizontals at Aguada Pichana

APPENDIX # 2: Mulichinco Zone

High mud gas readings

in CorS.x-1

Mulichinco Gas in

these wells

Production from the Mulichinco & Basal

Sands ~1 TCF plus liquids in Sierra Chata field

Chihuidos Anticline

25 km

CURAMHUELE

CORTADERA

MULICHINCO ISOPACH

Mulichinco tested 10 mmcf/d + 500 bpd of 51⁰ condensate in Yp.x-1

COIRON AMARGO

Mulichinco may be evaluated by deepening the YP.x-1001 well

YP.x-1 Correlation

0 200API

-100 50MV

6 16IN

250 -250

0.2 2000

0.2 2000

0.2 2000

2 20000

0.2 2000

0.450 -0.150

1908 2898KG/MT

450 90US/MT

0 20B/E

3650

3700

3750

3800

3850

Lower Agrio

Mulichinco

Quintuco Mulichinco Low-stand

Mud gas readings rose by 2

orders of magnitude at the

top of the Mulichinco

AUGUST 2013 25

APPENDIX # 3: Neuquén Basin Stratigraphy

S

S

S Oil

Gas

Oil Oil and Gas Gas S Source Shales

AUGUST 2013 26

APPENDIX # 4: Neuquén Basin Regional X-Section

SJ.Nq.Ch.x-1

TD=3457.0

7 km SJ.Nq.Yp.x-1

TD=3880.0

76 km APA.Nq.CorS.x-1

TD=4515.0

106 km YPF.Nq.AnN.x-1

TD=3654.0

29 km Roch.Nq.CAS.x-1

TD=3608.0

Correlation

2600

2700

2800

2900

3000

3100

3200

3300

3400

Correlation

2900

3000

3100

3200

3300

3400

3500

3600

3700

3800

Correlation

2300

2400

2500

2600

2700

2800

2900

3000

3100

3200

3300

3400

3500

3600

3700

3800

3900

4000

4100

4200

4300

4400

4500

Correlation

1300

1400

1500

1600

1700

1800

1900

2000

2100

2200

2300

2400

2500

2600

2700

2800

2900

3000

3100

3200

Correlation

1300

1400

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1800

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L. Agrio Shale

L. Centenario

Quintuco

Vaca Muerta

Catriel

Avile U. Centenario

L. Centenario is the sandier facies equivalent

of the L. Agrio

Gamma ray character is similar for the basal Vaca Muerta and basal Agrio Fm, as a result of a similar

deep marine flooding event

Log character of the L Agrio in Curamhuele indicates it has

potential similar to that of the Vaca Muerta Fm. Oil was

tested in both wells

This well on the Coiron Amargo block shows

excellent potential for the Vaca Muerta shale reservoir

Green fill between Sonic and Resistivity indicates high TOC

potential shale reservoir. This well is representative of the YPF

Successes in the Vaca Muerta Fm

Coiron Amargo Curamhuele Cortadera Mulichinco and Avile formations are both

prospective as tight gas sand reservoirs in the western part

of the basin

27 AUGUST 2013

YPF Comparison Vaca Muerta @ Loma La Lata vs US Shale Resources Shales

Shale Comparisons Vaca Muerta Shale

YPF’s Loma La Lata area Barnett Haynesville Marcellus Eagle Ford Bakken TOC (%) 6 5 2 12 4 12 Thickness (m) 200 91 76 61 61 30 Depths (m) 3000 2286 3658 2057 2287 1829 Area (sq. km) 30 16,726 23,310 245,773 5,180 51,800 Reservoir Pressure (psi) 8000 3525 10800 3375 4502 4200 Pressure Gradient (psi/ft) 0.65 - 1.0 0.47 0.9 0.5 0.6 0.7 STOOIP (Mbbls) ? - - - 114,000 200,000 STOOIP/sq. km (Mbbl/km2) 33 - 58 - - - 22 3.9 OGIP (Bcf) ? 422,337 717,016 1,499,215 OGIP /sq. km (Bcf/km2) ? 25.3 30.8 6.1

APPENDIX # 5: Vaca Muerta Shale vs US Shales

June 2013 – EIA Released Updated World Shale Oil & Gas Assessment

Argentina has 4th largest technically recoverable shale oil resource in the world Behind only Russia, USA & China

3X greater than Canada

Argentina has 2nd largest technically recoverable shale gas resource in the world Behind only China

1.2X greater than USA

1.4X greater than Canada

Three Shale Plays in Argentina: Vaca Muerta, Agrio, Los Molles

Neuquén Basin is a the focus of Shale Resource development by Major E&Ps and NOCs

APPENDIX # 6: EIA - Argentina’s Shale Potential

28 AUGUST 2013

READER ADVISORIES

AUGUST 2013 29

The information in this document contains certain forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions. In particular, this document contains forward-looking statements pertaining to resources of Madalena and other oil and gas information. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Madalena's control, including: the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions, of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; and obtaining required approvals of regulatory authorities. Madalena's actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits Madalena will derive from them. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. The forward-looking statements in this document are expressly qualified in their entirety by this cautionary statement. Except as required by law, Madalena undertakes no obligation to publicly update or revise any forward-looking statements. Investors are encouraged to review and consider the additional risk factors set forth in Madalena's Annual Information Form, which is available on SEDAR at www.sedar.com. All calculations converting natural gas to barrels of oil equivalent ("boe") have been made using a conversion ratio of six thousand cubic feet (six "Mcf") of natural gas to one barrel of oil, unless otherwise stated. The use of boe may be misleading, particularly if used in isolation, as the conversion ratio of six Mcf of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. Certain information in this document may constitute "analogous information" as defined in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101"), including, but not limited to, information relating to the areas in geographical proximity to prospective lands held by Madalena and production information related to wells that are believed to be on trend with Madalena's properties. Such information has been obtained from government sources, regulatory agencies or other industry participants. Management of Madalena believes the information is relevant as it helps to define the reservoir characteristics in which Madalena may hold an interest. Madalena is unable to confirm that the analogous information was prepared by a qualified reserves evaluator or auditor. Such information is not an estimate of the reserves or resources attributable to lands held or to be held by Madalena and there is no certainty that the reservoir data and economics information for the lands held or to be held by Madalena will be similar to the information presented herein. The reader is cautioned that the data relied upon by Madalena may be in error and/or may not be analogous to such lands to be held by Madalena. Any references in this document to test rates, flow rates, initial and/or final raw test or production rates, early production, test volumes behind pipe and/or "flush" production rates are useful in confirming the presence of hydrocarbons, however, such rates are not necessarily indicative of long-term performance or of ultimate recovery. Such rates may also include recovered "load" fluids used in well completion stimulation. Readers are cautioned not to place reliance on such rates in calculating the aggregate production for Madalena. In addition, the Vaca Muerta shale is an unconventional resource play which may be subject to high initial decline rates. The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that year. Under NI 51-101, the methodology to be used to calculate finding and development costs includes incorporating changes in future development capital required to bring the proved undeveloped and probable reserves to production. Changes in future development capital have been taken into account in these calculations. In this document, FD&A costs have been calculated prior to eliminating the effects of acquisitions and dispositions. After eliminating the effects of acquisitions and dispositions, finding and development costs for the year ended December 31, 2012 are $18.86/boe on P+P reserves and $32.60/boe on proved reserves for the Company's Canadian assets; such finding and development costs were calculated in accordance with NI 51-101 using the following two methods: (1): adding exploration and development costs incurred in the most recent financial year with the change during the most recent financial year in estimated future development costs relating to proved reserves and dividing that sum by additions to proved reserves during the most recent financial year; and (2) adding exploration and development costs incurred in the most recent financial year with the change during the most recent financial year in estimated future development costs relating to proved reserves and probable reserves and dividing that sum by additions to proved reserves and probable reserves during the most recent financial year. While NI 51-101 requires disclosure of certain comparative information for the three most recent financial years when disclosing finding and development costs, due to the fact that Madalena's recent acquisition of Canadian assets occurred just prior to year-end in 2012, if such information was provided it could be misleading, as it would be comparing significantly different asset bases.

Notes To Disclosure of Resources:

(1) "Total Petroleum Initially In Place" means DPIIP + UPIIP. When calculating DPIIP, there is no material production or reserves associated with these properties. Contingent resources is the only category of DPIIP that has been categorized as recoverable. Prospective resources is the only category of UPIIP that has been categorized as recoverable. There is no certainty that it will be commercially viable to produce any portion of the contingent resources referred to in the tables above. There is no certainty that any portion of the prospective resources referred to in the tables above will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of these resources.

(2) Certain volumes are arithmetic sums of multiple estimates of contingent & prospective resources, which statistical principles indicate may be misleading as to volumes that may actually be recovered. Readers should give attention to the estimates of individual classes of resources and appreciate the differing probabilities of recovery associated with each class as explained herein. Details on the categories that comprise these calculations are in the tables that follow.

READER ADVISORIES

30 AUGUST 2013

Coiron Amargo Discovered Petroleum Initially In Place (1)

(net to Madalena) Oil, NGLs and Natural Gas at December 31, 2012 Notes: (1) There is no certainty that it will be commercially viable to produce any portion of the resources referred to in the table above.

READER ADVISORIES

31 AUGUST 2013

Kevin Shaw President and Chief Executive Officer

+1.403.262.1901 (ext 230); kdshaw@madalena-ventures.com

DEFINITIONS: "Contingent resources" Definition: Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using

established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage.

"Discovered petroleum initially-in-place" or "discovered resources" or "DPIIP"

Definition: That quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of discovered petroleum initially-in-place includes production, reserves and contingent resources; the remainder is unrecoverable.

"Prospective resources" Definition: Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations

by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development.

"Total petroleum initially-in-place", "total resources" or "TPIIP"

Definition: That quantity of petroleum that is estimated to exist originally in naturally occurring accumulations; equal to DPIIP plus UPIIP. It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered.

"Undiscovered petroleum initially-in-place", "undiscovered resources" or "UPIIP"

Definition: That quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. The recoverable portion of undiscovered petroleum initially-in-place is referred to as prospective resources; the remainder is unrecoverable.