Mr. Derek Evans reports

PENGROWTH ANNOUNCES DOUBLING OF VALUE OF 2P RESERVES AT LINDBERGH FROM $1.0 BILLION TO $2.2 BILLION

GLJ Petroleum Consultants Ltd. has provided an update of bitumen reserves and contingent resources for Pengrowth Energy Corp.'s Lindbergh project.

GLJ has attributed 101 million barrels of proved reserves and 229.7 million barrels of proved plus probable reserves to the Lindbergh project. The additional proved reserves at Lindbergh represent an increase of 24 per cent from Dec. 31, 2013, while 2P reserves increased by 61 per cent.

The GLJ Lindbergh report has an effective date of May 31, 2014, and results in 19.6 million barrels of probable reserves being reclassified to the proved category and an increase of 87.4 million barrels in proved plus probable reserves, offset by 236,200 barrels of production in 2014 to May 31, 2014. The reserves update is based upon existing regulatory approvals, the application for expansion of the project to 30,000 barrels per day, continuing positive pilot performance, continued delineation drilling and additional new 3-D seismic data.

In addition, GLJ has assigned best-estimate contingent resources of 96 million barrels to the Lindbergh property as of May 31, 2014, a 41-per-cent decrease from Dec. 31, 2013, reflecting the transfer of volumes from the contingent resource category to probable reserves.

As a result of the work done by GLJ, Pengrowth now estimates that the before-tax net present value of Lindbergh 2P reserves, using a 10-per-cent discount rate, has more than doubled, from $1.95 per share at year-end 2013 to $4.20 per share at May 31, 2014.

"We are very pleased to have received independent confirmation of the value Pengrowth is generating for our shareholders with the Lindbergh project," said Derek Evans, president and chief executive officer of Pengrowth. "We look forward to putting steam into the ground this fall as we prepare for first commercial production from Lindbergh and expect significant corporate cash flow growth per share in 2015."

Reserves and resources summary

The attached tables summarize the Dec. 31, 2013, and updated May 31, 2014, GLJ reserve and resource estimates for the Lindbergh property. The May 31, 2014, evaluation is based on GLJ's April 1, 2014, price forecast.

              LINDBERGH RESERVE AND RESOURCE ESTIMATES
                      (in millions of barrels)

                                         Dec. 31, 2013  May 31, 2014

Reserves
Proved (1P)                                       81.7         101.0
Proved plus probable (2P)                        142.6         229.7
Proved plus probable plus possible (3P)          195.7         330.8
Contingent resources
Low estimate (1C)                                124.1          48.0
Best estimate (2C)                               163.0          96.0
High estimate (3C)                               275.6         156.1

The increase in 2P reserves at Lindbergh is equivalent to 18 per cent of Pengrowth's total corporate 2P reserves reported at Dec. 31, 2013, and 332-per-cent replacement of estimated 2014 production based on the midpoint of Pengrowth's current production guidance.

Lindbergh net present value summary

The attached table summarizes GLJ's estimates of net present value for Lindbergh reserves and contingent resources as at Dec. 31, 2013, and May 31, 2014.

                       LINDBERGH NET PRESENT VALUE
                         (in millions of dollars)

                                                         Before income tax, 
                                         discounted at 10 per cent per year
                                                Dec. 31, 2013  May 31, 2014 

Reserves
Proved (1P)                                               749         1,194
Proved plus probable (2P)                               1,020         2,215
Proved plus probable plus possible (3P)                 1,255         2,800
Contingent resources
Low estimate (1C)                                         238           215
Best estimate (2C)                                        710           374
High estimate (3C)                                      1,744         1,263

The Lindbergh 2P reserve value reported at 2013 year-end represented 20 per cent of Pengrowth's total 2P 2013 year-end reserve value of $5,148-million (before income tax, discounted at 10 per cent per year) and equated to $1.95 per share (based on 522,031,117 shares outstanding at Dec. 31, 2013). The 2P reserve value in the current Lindbergh update has more than doubled compared with the 2013 year-end estimate, representing an even larger portion of the corporate 2P reserve value, and equates to $4.20 per share (based on 527,470,168 shares outstanding as at May 31, 2014).

Lindbergh operations update

The Lindbergh pilot continues to exceed type-curve expectations, with average production of approximately 1,785 barrels per day and an instantaneous steam to oil ratio of approximately 2.4 in the month of June, 2014, up to June 14.

Construction of the well pads and central processing facility for the first 12,500-barrel-per-day phase of the commercial project remains on schedule, with all major equipment on site and more than 80 per cent of the wells drilled. Pengrowth expects to commission the plant and begin steam circulation during the fourth quarter of 2014. As at June 24, 2014, Lindbergh remains on track with the revised budget announced on May 12, 2014, with approximately 85 per cent of the planned expenditures for the first commercial phase having been made or committed.

Lindbergh's first commercial bitumen production is expected to be achieved in the first quarter of 2015, as a prelude to expected annual average Lindbergh production of 12,500 barrels per day.

Reserves classification

Reserves and contingent resources included herein are stated on a company-interest basis (working interest before deduction of royalties and including any company royalty interests) unless noted otherwise. All reserve information has been prepared in accordance with National Instrument 51-101, standards of disclosure for oil and gas activities, and the Canadian oil and gas evaluation handbook. Pengrowth's annual information form, dated Feb. 28, 2014, which contains more detailed information relating to its reserves and resources, including a description of contingencies associated with the estimates of contingent resources, can be found on the company's website, and has been filed on SEDAR and as a Form 40-F on EDGAR.

Updated independent reserves evaluation

The updated estimates of reserves and resources contained in this news release are based on an independent evaluation of reserves and contingent resources attributable to the Lindbergh project effective May 31, 2014, conducted by GLJ, using the April 1, 2014, GLJ price forecast, and prepared in accordance with the definitions, standards and procedures contained in the evaluation handbook and NI 51-101.

We seek Safe Harbor.