Governance

A foundation of solid corporate governance guides Parex Resources Inc.’s ("Parex" or the "Company) corporate culture. The Company endorses transparency and responsiveness to shareholders, markets, and other stakeholders in all activities and at all organizational levels.

Parex upholds high corporate governance standards which ensure effectiveness of governance systems as well as alignment of Officers’ performance with corporate objectives. A key component of the Company’s governance framework is to establish effective management practices and internal controls. Through its committees, the Board of Directors monitors these practices and ensures that designed systems operate properly and legal requirements are met.

The Board of Directors and the Executive team oversee the Company’s overall strategic direction and management through the:

• Corporate Governance, Human Resources & Compensation Committee,
• Operations & Reserves Committee; and
• Finance & Audit Committee.