Dividends

Canadian dollar dividend payments — updated information

For "registered" shareholders
(for all accounts noted on the shareholder register maintained by Computershare Investor Services Inc.)

• Canadian addresses - Dividends payable to shareholders (including individuals or intermediary accounts) with a "registered" address in Canada shall be paid in the declared currency of Canadian dollars.
• U.S. and other addresses - Dividends payable to all non-Canadian "registered" shareholder addresses shall be converted into and paid in U.S. funds at the daily average exchange rate quoted for U.S. funds by the Bank of Canada on the record date.

For "beneficial" shareholders
(for shareholders whose shares are held via a broker or investment dealer who is a participant in either a Canadian or a U.S. depository)

• Participants in a Canadian Depository - Dividends payable to a Canadian depository, such as CDS & Co., shall be paid in the declared currency of Canadian dollars.
• Participants in a U.S. Depository - Dividends payable to a U.S. depository, such as Cede & Co., shall be converted into and paid in U.S. funds at the daily average exchange rate quoted for U.S. funds by the Bank of Canada on the record date.

Eligible dividends for Canadian tax purposes

Cenovus Energy Inc. advises all shareholders that all dividends paid have been and will be designated as “eligible dividends” for Canadian income tax purposes. The foregoing designations will apply until a notification is posted on this website.

1099-DIV information for shareholders filing a U.S. income tax return

Cenovus is a Qualified Foreign Corporation and 100% of our dividends qualify for the reduced tax rates that are applicable to Qualified Dividends. Qualified Dividends are subject to the same 0%, 15%, or 20% maximum tax rates that apply to net capital gains. In order to qualify for the capital gains rates, a shareholder must own the stock for more than 60 days during the 120-day period beginning 60 days before the ex-dividend date. For more information on this Act or the 1099-DIV form please visit http://www.irs.gov or contact a professional tax advisor.

Declarations of dividends

The declaration and payment of dividends is at the discretion of the Cenovus Board which will consider earnings, capital requirements, the financial condition of Cenovus and other relevant factors.

Dividend Reinvestment Plan (DRIP)

Shareholders can choose to receive their dividends either as a cash payment or automatically reinvest their dividends to purchase additional Cenovus shares through the DRIP. Cenovus shares purchased with reinvested cash dividends are acquired in the open market. For more information, see the materials below, contact our transfer and DRIP agent, Computershare Investor Services Inc., or go to the Cenovus Investor Centre.

Shareholders who hold their Cenovus shares directly (registered shareholders) may enrol through our transfer and DRIP agent at the address and telephone number noted below or go to the Cenovus Investor Centre.

Shareholders who hold their shares through a broker, investment dealer, financial institution or other nominee (“Broker”) (beneficial shareholders) may enrol through such Broker. See the exception noted under “Important Notice” below.

Important notice to U.S. shareholders

The Depository Trust Company (“DTC”) terminated its participation in DRIPs for Canadian securities for all events announced with a record date beyond March 31, 2014. As a result, a U.S. beneficial shareholder who wants to participate in the DRIP must either become a registered shareholder or transfer their shares to a Canadian Broker. Shareholders should note that they may incur costs in connection with effecting such transactions and should consult with their Broker before taking any action.

To become a registered shareholder, U.S. shareholders must contact their U.S. Broker to request that their Cenovus shares be withdrawn from their account and issued in their personal name and address (this changes the shareholder’s status from a beneficial shareholder to a registered shareholder). Upon receiving these instructions, the U.S. Broker will request this withdrawal and issuance of shares via Cenovus’s registrar and transfer agent, Computershare Investor Services Inc. Once the transfer is complete, the new U.S. registered shareholder may enrol with Computershare to participate in the DRIP at the address and telephone number noted below or go to the Cenovus Investor Centre.

To transfer shares to a Canadian Broker, U.S. shareholders must contact their U.S. Broker to request that their Cenovus shares be withdrawn from their U.S. account and deposited with a Canadian Broker. Once deposited with a Canadian Broker, shareholders may enrol through such Canadian Broker.

Please see the below link for the official notice from DTC, including additional information for beneficial holders who want to participate in dividend reinvestment (Document #0064-14):

http://www.dtcc.com/en/legal/important-notices.aspx?q=0064-14&pgs=1