Notice of 2018 Annual Meeting of Shareholders and Management Proxy Circular Annual Meeting of Shareholders April 27, 2018 Imperial Oil Limited Imperial is committed to the responsible development of Canada’s energy resources Learn more about our innovation story at imperialoil.ca/research Notice of 2018 Annual Meeting of Shareholders Dear Shareholder, On behalf of the board and management, we are pleased to invite you to attend the annual meeting of shareholders of Imperial Oil Limited. When: Friday, April 27, 2018 at 9:30 a.m. local time Where: 505 Quarry Park Boulevard S.E., Calgary, Alberta, Canada The meeting will be called for the following purpose: 1. to consider the consolidated financial statements for the year ended December 31, 2017, and the auditor’s report, 2. to reappoint the auditor for the ensuing year, 3. to elect directors for the ensuing year, 4. to vote on two shareholder proposals contained in this management proxy circular, and 5. to consider other business that may properly be brought before the meeting or any adjournment of the meeting. The Canadian securities regulator allow for the use of Notice and Access for delivery of the management proxy circular to both the registered and non-registered shareholders of Imperial Oil Limited. The circular is not being mailed, but rather shareholders are provided with notice for where to find the circular online or request a paper copy. The circular will provide you with additional details surrounding Notice and Access as well as provide information about the company and the business to be conducted at the meeting. Please review the circular before you cast your vote. Holders of Imperial Oil Limited common shares of record at the close of business on March 2, 2018, are entitled to vote at the meeting and any adjournment of the meeting. It is important that your shares be represented at the meeting and that your wishes on matters for decision at the meeting are made known to the directors and management of the company. This will be assured, whether or not you attend the meeting, if you complete and submit the enclosed proxy as soon as possible. You may do so by mail, fax, email, telephone, online or using your mobile device as described on the proxy form. Your proxy must be received prior to 5:00 p.m. (EDT) on April 25, 2018, or two days (excluding Saturdays, Sundays or statutory holidays) prior to any adjournment of the meeting. The effective date of the circular is February 7, 2018, on which date there were 831,242,307 common shares outstanding. A webcast of the meeting will be available on our company website for those that are unable to attend in person and will also be available for viewing after the meeting. We can provide reasonable assistance to people with disabilities who wish to attend the meeting. Please contact the corporate secretary by telephone at (587) 476-3950 or fax at (587) 476-1166 at least two weeks before the meeting. L.H. (Lara) Pella Assistant general counsel and corporate secretary March 9, 2018 Management Proxy Circular Table of contents Proxy statement summary ............................................................................................................ 2 Proxy information and voting instructions .................................................................................. 4 Business of the meeting ............................................................................................................... 8 (i) Consolidated financial statements and auditor’s report............................................................................ 8 (ii) Reappointment of the auditor .................................................................................................................. 8 (iii) Election of directors ................................................................................................................................ 9 (iv) Shareholder proposals ............................................................................................................................ 9 (v) Other business ........................................................................................................................................ 9 Nominees for director .................................................................................................................. 10 Director nominee tables .............................................................................................................................. 10 Majority voting policy .................................................................................................................................. 14 Corporate governance disclosure .............................................................................................. 15 Corporate governance at a glance ............................................................................................................. 15 Statement of corporate governance practice .............................................................................................. 16 Company executives and executive compensation .................................................................. 40 Named executive officers of the company .................................................................................................. 40 Other executive officers of the company .................................................................................................... 41 Letter to shareholders from the executive resources committee on executive compensation ................... 43 Compensation discussion and analysis ...................................................................................................... 45 Other important information ....................................................................................................... 67 Effective date .............................................................................................................................................. 67 If you have a shareholder proposal for the 2019 annual meeting .............................................................. 67 Financial statements ................................................................................................................................... 67 Interim reports and electronic delivery ........................................................................................................ 67 Additional information ................................................................................................................................. 67 Directors' approval ...................................................................................................................................... 67 Appendix ...................................................................................................................................... 68 Appendix A – Board of director and committee charters ............................................................................ 68 Appendix B – Shareholder proposals ......................................................................................................... 86 1 Proxy statement summary The summary below is intended to highlight selected information about the company and the upcoming meeting of shareholders. More detail can be found throughout the circular and we encourage you to read the entire proxy statement carefully before casting your vote. 2018 Annual Meeting of Shareholders Date and Time: Friday, April 27, 2018 Location: 505 Quarry Park Boulevard S.E., Calgary, Alberta, Canada Record Date: March 2, 2018 Mail Date: March 9, 2018 Voting Matters and Board Recommendations Voting items Board voting recommendation Reappointment of the auditor (page 8) For Election of the directors (pages 10 through 13) For each of the director nominees Shareholder proposals (Appendix B starting on page 86) Against each of the proposals Overview of Director Nominees D.W. K.T. R.M. J.M. D.S. D.G. S.D. Cornhill (a) Hoeg Kruger Mintz Sutherland Wascom Whittaker Gender Male Female Male Male Male Male Female Age (as of February 7, 64 68 58 66 68 61 70 2018) November 29, May 1, July 30, Director Since March 1, 2013 April 21, 2005 April 29, 2010 April 19, 1996 2017 2008 2014 Citizenship Canadian Canadian United States Canadian Canadian United States Canadian Independent Yes Yes No Yes Yes No Yes Director AC AC AC AC AC ERC Committee ERC ERC* ERC ERC ERC EH&S Participation in EH&S EH&S CC EH&S* EH&S EH&S N&CG N&CG N&CG N&CG N&CG N&CG* 2017 (b) CC CC CC CC CC* CC Board Interlocks None None None None None None None 2017 Meeting 100% 100% 100% 100% 84% 81% 100% Attendance Met Share Ownership Yes Yes Yes Yes Yes n/a Yes Guidelines # of other public 1 1 0 1 2 0 0 boards Financially Yes Yes Yes Yes Yes Yes Yes Literate Compensation Yes Yes Yes Yes Yes Yes Yes Experience Percentage of votes in favour n/a 99.88% 99.28% 99.87% 99.87% 89.19% 99.31% at last AGM a) D.W. Cornhill was appointed to the board on November 29, 2017. b) V.L. Young is currently a director and the chair of the audit committee, but is not standing for re-election at the annual meeting of shareholders. AC – Audit Committee; ERC – Executive Resources Committee; EH&S – Environment, Health and Safety Committee; N&CG – Nominations and Corporate Governance Committee; CC – Contributions Committee * indicates chair of that committee. 2 2017 Performance Highlights Strong safety, operational integrity and risk management performance. $490 million net income;