CALGARY, ALBERTA--(Marketwired - June 15, 2015) -


PrairieSky Royalty Ltd. ("PrairieSky" or the "Company") (TSX:PSK) has today entered into an agreement with a syndicate of underwriters led by CIBC, under which the underwriters have agreed to buy 5,760,000 common shares of the Company ("Common Shares") and sell to the public at a price of $31.25 per Common Share, resulting in aggregate gross proceeds to the Company of approximately $180 million. The Company has granted the underwriters an option, exercisable at any time until 30 days following the closing of the offering, to purchase up to an additional 10% of the Common Shares under the offering to cover over-allotments, if any. If the over-allotment option is exercised in full, the Company will receive aggregate gross proceeds of approximately $198 million.

Since April 1, 2015 PrairieSky has completed acquisitions aggregating approximately $40 million. Net proceeds from the offering are anticipated to be used to fund future acquisition opportunities and for general corporate purposes. Closing is expected to occur on or about July 7, 2015. The closing is subject to the receipt of all necessary regulatory and stock exchange approvals.

The securities of PrairieSky have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws. Accordingly, these securities may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or except pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of PrairieSky's shares in the United States.

This press release contains forward-looking statements including statements concerning the expected terms and closing date of the offering and the anticipated use of the net proceeds of the offering. The closing of the offering could be delayed if PrairieSky is not able to obtain the necessary stock exchange and other regulatory approvals on the timelines it has planned and the intended use of the net proceeds of the offering might change if the board of directors determines that it would be in the best interests of PrairieSky to deploy the proceeds for some other purpose. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond PrairieSky's control. Readers 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 statements. PrairieSky's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that PrairieSky will derive therefrom. The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to publically update or revise forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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.

Contact Information:

PrairieSky Royalty Ltd.
Cristina Lopez
VP, Corporate Development
(587) 293-4085

Investor Relations
(587) 293-4000