Mr. Derek Evans reports

PENGROWTH ANNOUNCES CLOSING OF ROYALTY SALE ON ITS LINDBERGH THERMAL ASSETS

Pengrowth Energy Corp. has closed its previously announced sale of a non-convertible 4.0-per-cent gross overriding royalty interest on its Lindbergh thermal assets and an interest in certain proprietary seismic for $250-million of aggregate cash proceeds. The cash proceeds from the transaction help to further strengthen the company's balance sheet.

Pengrowth has been working on enhancing its financial flexibility ahead of its scheduled debt maturities in 2017. The company exited 2016 with approximately $280-million of cash on its balance sheet and, taking into consideration the proceeds from the GORR (gross overriding royalty) sale, its current cash position has increased to approximately $530-million.

We seek Safe Harbor.