Mr. Dan Cuthbertson reports

HUSKY ANNOUNCES $150 MILLION PREFERRED SHARE OFFERING

Husky Energy Inc. has agreed to issue to a syndicate of underwriters led by TD Securities Inc. and RBC Capital Markets for distribution to the public six million cumulative redeemable preferred shares, Series 5.

The Series 5 shares will be issued at a price of $25 per Series 5 share, for aggregate gross proceeds of $150-million. Holders of the Series 5 shares will be entitled to receive a cumulative quarterly fixed dividend yielding 4.5 per cent annually for the initial period ending March 31, 2020. Thereafter, the dividend rate will be reset every five years at a rate equal to the five-year government of Canada bond yield plus 3.57 per cent.

Holders of Series 5 shares will have the right, at their option, to convert their shares into cumulative redeemable preferred shares, Series 6, subject to certain conditions, on March 31, 2020, and on March 31 every five years thereafter. Holders of the Series 6 shares will be entitled to receive cumulative quarterly floating dividends at a rate equal to the 90-day government of Canada treasury bill rate plus 3.57 per cent.

Husky has granted the underwriters an option, exercisable in whole or in part prior to closing, to purchase up to an additional two million Series 5 shares at the same offering price. The Series 5 shares will be offered by way of prospectus supplement to the short-form base-shelf prospectus of Husky Energy dated Feb. 23, 2015.

The prospectus supplement will be filed with securities regulatory authorities in all provinces of Canada.

The net proceeds of the offering will be used for the partial repayment of short-term debt incurred in connection with the company's United States refining operations.

The offering is expected to close on or about March 12, 2015, subject to customary closing conditions and receipt of required regulatory approvals.

We seek Safe Harbor.