Mr. Jeremy Roberge reports

INTER PIPELINE ANNOUNCES COMPLETION OF COLD LAKE AND POLARIS PIPELINE EXPANSION PROJECTS

Inter Pipeline Ltd. has completed construction activity on two major expansion projects on its Cold Lake and Polaris pipeline systems. These projects will provide transportation service to the Foster Creek and Christina Lake oil sands projects owned by the FCCL Partnership, a business venture between Cenovus Energy and ConocoPhillips. As a result, Inter Pipeline will begin generating incremental earnings before interest, taxes, depreciation and amortization of approximately $165-million per year.

"We are extremely pleased with the execution of these major construction projects, representing a combined investment of $3.0-billion," commented Christian Bayle, Inter Pipeline's president and chief executive officer. "They were completed on schedule with an outstanding safety record during an extremely active construction window in our industry."

FCCL expansion projects

Pursuant to an agreement announced in July, 2012, Inter Pipeline commenced work on an integrated, phased expansion of its Cold Lake and Polaris pipeline systems. In aggregate, Inter Pipeline will construct 840 kilometres of pipeline and seven pump stations to provide transportation service to FCCL's Foster Creek, Christina Lake and Narrows Lake oil sands developments. FCCL has committed to 850,000 barrels per day of bitumen blend and diluent capacity under a 20-year ship-or-pay agreement.

With the commissioning of infrastructure related to the Foster Creek and Christina Lake expansions, Inter Pipeline has completed approximately 90 per cent of planned construction work. In 2016 and 2017, Inter Pipeline expects to invest an additional $290-million to provide transportation service to FCCL's Narrows Lake oil sands development.

Strong incremental EBITDA

Ultimately, Inter Pipeline expects to generate up to approximately $330-million in long-term EBITDA per year from the integrated expansion of its Cold Lake and Polaris pipeline systems. In July, 2014, Inter Pipeline began generating annual EBITDA of approximately $90-million upon completion of diluent delivery infrastructure to the Foster Creek and Christina Lake developments. The commissioning of bitumen blend and diluent infrastructure announced today will add an incremental $165-million in annual EBITDA. Following construction of bitumen blend and diluent facilities for the Narrows Lake project, Inter Pipeline expects to generate a further $40-million per year in incremental EBITDA. Finally, subject to other certain contractual conditions being met postcompletion of the Narrows Lake connection, Inter Pipeline expects to generate an additional $35-million in annual EBITDA over the long term.

Inter Pipeline has installed surplus mainline capacity on the Cold Lake and Polaris systems beyond FCCL's capacity requirements for its Foster Creek, Christina Lake and Narrows Lake developments. Approximately 1.3 million barrels per day of combined capacity will be available for new third party shippers. Inter Pipeline intends to aggressively pursue new connection opportunities in its transportation service areas.

Convertible share conversion

In June, 2013, Inter Pipeline acquired its former general partner in a transaction valued at $348-million. This transaction resulted in the elimination of all management fees, acquisition fees and disposition fees that otherwise would have been paid to an external manager.

The former owners of the general partner agreed to take all payment consideration in the form of shares, which would be convertible into Inter Pipeline common shares. In addition, $170-million of the $348-million purchase price was contingent on the successful completion of transportation infrastructure related to the FCCL Foster Creek and Christina Lake expansion projects. Accordingly, Inter Pipeline is now obligated to issue additional common shares, on a one-for-one basis, in exchange for the convertible shares.

The conversion of previously issued convertible shares will not create additional financing requirements for Inter Pipeline. All transactions associated with Inter Pipeline's internalization and subsequent corporate conversion events have now been completed.

We seek Safe Harbor.