Mr. Derek Evans reports

PENGROWTH ANNOUNCES A 63 PERCENT INCREASE IN VALUE OF 2P RESERVES AT LINDBERGH FROM $1.56 BILLION TO $2.55 BILLION

GLJ Petroleum Consultants Ltd. has provided an update of bitumen reserves and contingent resources for Pengrowth Energy Corp.'s 100-per-cent-owned Lindbergh project in east-central Alberta, as of Sept. 30, 2016. The reserves and resources update reflects the successful application approval allowing for the expansion of the project to 30,000 barrels per day (bbl per day), coupled with continuing positive production performance.

The updated report highlights changes in reserves and resources as a result of the approval of the phase two expansion as well as the addition of reserves associated with future infill wells and the cyclic steam stimulation area. Over all, an additional 44.5 million barrels (MMbbl) of bitumen are being attributed to proved (1P) reserves, primarily due to the reclassification of probable reserves to the proved category, as a result of the phase two expansion approval. This represents a 43-per-cent increase to 1P reserves from year-end 2015 to a volume of 147.9 MMbbl. Proved plus probable (2P) reserves at Lindbergh increased by 21 per cent from year-end 2015 to a volume of 319.1 MMbbl. A total of 55.7 MMbbl were added to the 2P category, primarily as a result of the reclassification of resources to reserves, as well as reserves being assigned to future infill wells and the cyclic steam stimulation area.

Based on the updated report, Pengrowth now estimates that the before-tax net present value (NPV) of Lindbergh 2P reserves, using a 10-per-cent discount rate, has increased by 63 per cent from a value of $1.56-billion ($2.87 per share) as at Dec. 31, 2015, to a value of $2.55-billion ($4.66 per share) as at Sept. 30, 2016.

"We are delighted to see that the updated GLJ report not only reflects the exceptional performance that we have seen from this project, but also points to Lindbergh's key role in driving growth in both production and shareholder value," said Derek Evans, president and chief executive officer of Pengrowth. "The 63-per-cent growth in Lindbergh 2P reserve value since year-end 2015 to a value in excess of $4.50 per share is impressive and a reflection of the high quality of the asset."

Reserves and resources summary

The associated tables summarize the Dec. 31, 2015, and updated Sept. 30, 2016, GLJ reserve and resource estimates for the Lindbergh property. The Sept. 30, 2016, evaluation is based on GLJ's Oct. 1, 2016, price forecast.

                                   Dec. 31, 2015  Sept. 30, 2016
Reserves                                   MMbbl           MMbbl

Proved (1P)                                103.4           147.9
Proved plus probable (2P)                  263.4           319.1
Proved plus probable plus
possible (3P)                              370.6           414.5

The increase in 2P reserves at Lindbergh is equivalent to approximately 10 per cent of Pengrowth's total corporate 2P reserves reported at Dec. 31, 2015, and 267-per-cent replacement of estimated 2016 production based on the midpoint of Pengrowth's current production guidance.

Risked contingent                                                           
resources (1)                       Dec. 31, 2015             Sept. 30, 2016       
Project maturity            Low     Best     High      Low     Best     High
subclass               estimate estimate estimate estimate estimate estimate
                                                                            
Development pending                                                         
(MMbbl)                    15.4     62.6     95.3     15.5     34.1     56.9
Development                                                                 
unclarified (MMbbl)        18.4     36.7     54.4     19.1     38.5     55.2

(1) Risked for chance of development                                       

Lindbergh net present value summary

The associated table summarizes GLJ's estimates of net present value for Lindbergh reserves and contingent resources as at Dec. 31, 2015, and Sept. 30, 2016, using GLJ's Oct. 1, 2016, price forecast.

                                       Before income tax, discounted at
                                                     10%/year (BT NPV10)
                                          Dec. 31, 2015  Sept. 30, 2016
Reserves                                      $ million       $ million

Proved (1P)                                       $ 808         $ 1,186
Proved plus probable (2P)                         1,559           2,552
Proved plus probable plus possible (3P)           2,098           3,155

Lindbergh continues to represent a significant and growing component of Pengrowth's value and long-term growth strategy. The reported 2015 year-end reserve value for Lindbergh of $1,559-million (BT NPV10) represented approximately 48 per cent of Pengrowth's total 2P 2015 year-end reserve value of $3,268-million and equated to $2.87 per share (based on 543,033,300 shares outstanding at Dec. 31, 2015). The 2P reserve value in the current Lindbergh update has increased by approximately 63 per cent compared with the 2015 year-end estimate, representing an even larger portion of the corporate 2P reserve value and equates to $4.66 per share (based on 547,445,394 shares outstanding as at Sept. 30, 2016).

          BEFORE INCOME TAX, DISCOUNTED AT 10%/YEAR (BTAX NPV10)

Risked contingent                                                           
resources (1)                       Dec. 31, 2015             Sept. 30, 2016       
Project maturity            Low     Best     High      Low     Best     High
subclass               estimate estimate estimate estimate estimate estimate
                                                                            
Development pending                                                         
($ million)              $ 18.4  $ 319.8  $ 645.6   $ 10.2   $ 75.3  $ 333.6
Development                                                                 
unclarified                                                                
($ million)               -36.2     21.7     95.3     -5.9     41.6    107.9

(1)  Risked for chance of development                                       

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 (NI 51-101) and the Canadian Oil and Gas Evaluation Handbook (COGEH). Pengrowth's annual information form dated Feb. 24, 2016, which contains more detailed information relating to the company's 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 Sept. 30, 2016, conducted by GLJ, using the Oct. 1, 2016, GLJ price forecast, and prepared in accordance with the definitions, standards and procedures contained in COGEH and NI 51-101.

About Pengrowth

Pengrowth Energy is an intermediate Canadian producer of oil and natural gas, headquartered in Calgary, Alta. Pengrowth's assets include the Lindbergh thermal oil, Cardium light oil, Swan Hills light oil, and the Groundbirch and Bernadet Montney gas projects.

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