A key indicator of profitability in the oil and gas sector is recycle ratio, which is defined as the operating  netback divided by the F&D. The 2010 reserve additions resulted in a recycle ratio of 4.2 times and 3.9 times, respectively for the current year and three year average for P+P reserves based on the 2010  netback of $27.02 per boe and F&D costs excluding FDC. ARC typically targets a recycle ratio of 2.0 times  or more on a P+P basis. ARC’s P+P reserve life index (“RLI”) has never been under 11.5 years. In 2010,  our RLI increased to 15.2 years and proved RLI remained relatively unchanged at 10.4 years based on  the mid-point 2011 production of 85,500 boe per day.  Reserves data and discussions presented are primarily excerpts from the February 10, 2011 news  release titled “ARC RESOURCES LTD. 2010 YEAR-EnD RESERvES InCREASE BY 29 PER CEnT”. Data included herein is stated on a company interest basis (before royalty burdens and including  royalty interests) unless noted otherwise. All reserves information has been prepared in accordance  with national Instrument (“ nI”) 51-101. The February 20, 2011 news release referred to above contains  several cautionary sta tements that are specifically required by nI 51-101 under the heading “Information  Regarding Disclosure on Oil  and gas Reserves, Resources and Operational Information”. In addition to the  detailed information disclosed in this news release more detailed information on a company gross basis  (working interest before deduction of royalties without including any royalty interests) will be included in  ARC’s Annual Information Form (“AIF”). numbers presented may not add due to rounding. USIng gLJ JAnUARY 1, 2011 FORECAST PRICES AnD COSTS RESERvES SUMMARY 2010 ligHt And oil oil MediuM  HeAVy totAl nAturAl   equiVAlent   equiVAlent crude oil crude oil crude oil ngls gAs 2010  2009 (mbbl) (mbbl) (mbbl) (mbbl) (bcf) (mboe)  (mboe ) Proved Producing  90,411  2,220  92,631  11,455  651.9  212,733 185,623 Proved Developed non-Producing 1,763  4  1,767  835  78.5  15,685 7,863 Proved Undeveloped  11,095  30  11,125  6,193  543.6  107,921 76,048 Total Proved  103,269  2,255  105,524  18,483  1,274.0  336,339 269,535 Proved plus Probable  137,063  2,970  140,033  26,520  1,925.2  487,418 378,953 coMpAny interest ligHt And oil oil MediuM  HeAVy totAl nAturAl equiVAlent equiVAlent crude oil crude oil crude oil ngls gAs 2010  2009 (mbbl) (mbbl) (mbbl) (mbbl) (bcf)  (mboe) (mboe ) Proved Producing  90,258  2,071  92,329  11,302  643.4  210,860 183,663 Proved Developed non-Producing 1,761  4  1,765  835  78.5  15,678 7,862 Proved Undeveloped  11,085  30  11,115  6,193  543.5  107,894 76,018 Total Proved  103,104  2,105  105,209  18,329  1,265.4  334,432 267,543 Proved plus Probable  136,854  2,777  139,631  26,332  1,914.9  485,121 376,543 ligHt And oil oil MediuM  HeAVy totAl nAturAl   equiVAlent equiVAlent crude oil crude oil crude oil ngls gAs 2010  2009  (mbbl) (mbbl) (mbbl) (mbbl) (bcf) (mboe)  (mboe) Proved Producing 77,421 1,972 79,393 8,301 550.7 179,481 156,959 Proved Developed non-Producing 1,482  4  1,486  677  65.6  13,097 6,194 Proved Undeveloped 9,441 29 9,470 4,956 460.1 91,114 62,525 Total Proved  88,343  2,005  90,348  13,935  1,076.5  283,692 225,678 Proved plus Probable  116,553  2,620  119,173  20,079  1,603.7  406,543 314,350 ARC ResouRCes 10 23 AnnuAl  report net interest coMpAny gross DEvELOPMEnT REPLACEMEnT ACQUISITIOn REPLACEMEnT AnnUAL PRODUCTIOn REPLACEMEnT P+P RESERvES (%) 97 98 99 00 01 02 03 04 05 06 07 08 09 10 800 700 600 500 400 300 200 100 0