The MEG Board Deal is Unfair to MEG Shareholders and the Result of a Broken Sale Process The MEG Board Deal's cash-heavy structure forces MEG shareholders to crystalize value, leaving MEG shareholders with only 4% of the future upside in their long-life asset through their ongoing ownership in Cenovus. Market reaction confirmed the highly lopsided nature of the deal, with Cenovus shares rising approximately 10% in the days following the announcement, equating to approximately $3.9 billion in market value, or approximately 56% of MEG's pre-announcement market capitalization. This reflects the third highest increase in buyer share price, and single highest increase in buyer market capitalization as a percent of target market capitalization, of all public-to-public transactions completed in Canada with an announced value greater than $500 million dollars since 2006 (102 transactions).