PrairieSky Royalty Declares March Dividend and Implements DRIP

CALGARY, ALBERTA--(Marketwired - March 17, 2015) - PrairieSky Royalty Ltd. ("PrairieSky") (TSX:PSK) announced today that its Board of Directors has declared a dividend of CDN $0.10833 per common share to be paid on April 15, 2015 to shareholders of record on March 31, 2015.

This dividend is designated as an "eligible dividend" for Canadian income tax purposes.

PrairieSky is also pleased to announce that its Board of Directors has approved a dividend reinvestment plan (the "DRIP"). The DRIP will allow shareholders to direct cash dividends to be reinvested in additional Common Shares that will be issued at 99% of the volume weighted average price of the Common Shares traded on the Toronto Stock Exchange during the last five trading days preceding the relevant dividend payment date or acquired at prevailing market rates.

Eligible shareholders may elect to participate in the DRIP commencing with the dividend to be paid on April 15, 2015 to shareholders on record as of March 31, 2015. Participation in the DRIP is optional and will not affect shareholders' cash dividends unless they elect to participate in the DRIP.

To participate in the DRIP, registered shareholders must deliver a properly completed authorization form to TMX Equity Transfer Services Inc. ("Equity Transfer" or the "Plan Agent") before 3:00 p.m. (Toronto time) on the 5^th business day immediately preceding a dividend record date. Registered shareholders who wish to participate in the DRIP for the March 2015 dividend must deliver a properly completed enrollment form to the Plan Agent no later than 3:00 p.m. (Toronto time) on Tuesday, March 24, 2015. Beneficial shareholders (i.e. owners of common shares that are held through a nominee) who wish to participate in the DRIP should contact the broker, investment dealer, financial institution or other nominee who holds their common shares to inquire about the applicable enrolment deadline and to request enrollment in the DRIP.

Additional details on how to participate in the DRIP are available on Prairiesky's website (www.prairiesky.com) and Equity Transfer's website (www.tmxequitytransferservices.com). The DRIP and the enrolment form are also available on the PrairieSky website and Equity Transfer's website or by calling or emailing Equity Transfer at 1-866-393-4891 ext. 205 or tmxeinvestorservices@tmx.com.

Shareholders should carefully read the complete text of the DRIP before making any decisions regarding their participation in the DRIP. Unless otherwise announced by PrairieSky, only shareholders who are resident in Canada may participate in the dividend reinvestment plan. Participation in the DRIP will not relieve shareholders of any liability for taxes that may be payable on dividends. Shareholders should consult their own tax advisors concerning the tax implementations of their participation in the DRIP having regard to their own particular circumstances.

In addition to the DRIP, PrairieSky intends to seek shareholder and regulatory approval to implement a Stock Dividend Plan ("SDP"). Further details regarding the proposed SDP will be include in the Information Circular and Proxy Statement to be mailed to shareholders of PrairieSky in late March 2015 in respect of PrairieSky's Annual and Special Meeting of Shareholders to be held on April 28, 2015.

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.