Conversion to Corporation

Effective January 20, 2009 Progress Energy Trust merged with ProEx Energy Ltd. Unitholders of Progress Energy Trust received 0.8125 shares of ProEx Energy Ltd. for each unit held. Concurrently, ProEx Energy Ltd. changed its name to Progress Energy Resources Corp. For tax purposes, unitholders had the option of tendering to Newco as a tax deferred rollover. If unitholders tendered to Subco, a wholly owned subsidiary of Newco, then it was treated as a taxable disposition. If shareholders of Progress Energy Resources Corp dispose of shares acquired under the tax deferred option through Newco, an ACB calculation will be required.