Bellatrix Exploration Ltd.

The recapitalization transaction involves an exchange of all of the company’s outstanding 8.5% senior unsecured notes due 2020 for a combination of $50 million of new second lien notes due September 2023, $50 million of new third lien notes due December 2023 and approximately 51% of the common shares of Bellatrix outstanding immediately following the implementation of the recapitalization transaction; and an exchange of all of the company’s outstanding 6.75% convertible debentures due 2021 for, in the aggregate and taking into account early consent consideration, approximately 32.5% of the common shares of Bellatrix outstanding immediately following the implementation of the recapitalization transaction.

The company’s senior unsecured notes in the aggregate principal amount of approximately $145.8 million, plus $2 million of accrued interest, will collectively be exchanged for $50 million of new second lien notes, $50 million of new third lien notes, and new common shares of Bellatrix representing approximately 51% of the common shares of Bellatrix outstanding immediately following the implementation of the recapitalization transaction.