Calgary - Leucrotta Exploration Inc. ('Leucrotta' or the 'Company') (TSXV - LXE) is pleased to announce that it has entered into an agreement with a syndicate of underwriters for a $20.0 million bought deal financing (the 'Financing') by way of a short form prospectus offering.

The Company will be conducting a concurrent non-brokered private placement of $2.0 million flowthrough units of the Company. The Company has also entered into a definitive agreement with an Alberta based publicly traded oil and gas company in connection with disposition of its non-strategic lands (the 'Asset Sale') comprising 5% of Leucrotta's Montney land base for an aggregate consideration of $30.0 million. The Company intends to use a portion of the combined proceeds from the Financing and the Asset Sale to advance the initiation of a Pad Development program in the High GOR (gas to oil ratio) Light Oil Window of the Lower Montney at Mica (the 'Mica Project'). The acceleration of the Mica Project will transform Leucrotta into a high-growth pure play Montney entity with one of the largest contiguous positions in the Montney light oil window. The funding and expected debt capacity on successful drilling of the Mica Project is expected to create cash flow sustainability, and management estimates that the Mica project could increase Leucrotta's production to 15,000 - 20,000 boepd within three years.

Rob Zakresky, Chief Executive Officer and President of Leucrotta comments, 'We are excited to kick-off our Mica Pad Development drilling program with years of drilling ahead of us. Leucrotta has captured and delineated an enormous resource in the Montney and are thrilled to be in the financial position to surface that value for our shareholders.

Strategic Rationale The New Funding Kickstarts the Mica Development while Minimizing Dilution

The Asset Sale helps minimize dilution while only disposing of approximately 5% of the Company's Montney acreage; Added equity allows Leucrotta to be debt-free well into 2022 when production is estimated by management to be materially higher; Exit 2021 production is expected to exceed 4,500 boepd (27% oil and condensate) with approximately $20.0 million cash remaining and Future capital can be accessed by adding a prudent amount of debt as cash flow grows. Shareholders Remain Exposed to Large Resource in Place while Generating Cash Flow The Mica Project is planned to ramp production to over 30,000 boepd exploiting only 30 sections of land in only 1 of 3 Montney zones. However, Leucrotta owns over 240 net sections of land where the Montney averages 300 metres thick with numerous potential benches and has 17.8 billion bbls of OOIP and 17.2 tcf of OGIP.

Forward-Looking Information

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words 'expect', 'anticipate', 'continue', 'estimate', 'may', 'will', 'should', 'believe', 'intends', 'forecast', 'plans', 'guidance' and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this document contains forward-looking statements and information relating to the Company's capital programs, timing of the completion of the Asset Sale, management estimated 2021 Exit Production Rate, management estimated debt and cash as at year end and management estimate on anticipated future sources of capital. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions relating to prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success of drilling new wells, the availability of capital to undertake planned activities, the availability and cost of labour and services, the exercise of the Over-Allotment Option, the use of proceeds of the Financing; the closing of the Financing and the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in tax, royalty and environmental legislation. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the coming year. The forward-looking statements and information may not be appropriate for other purposes. The Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The forward-looking statements regarding the Company's expected 2021 cash flow and debt are included herein to provide readers with an understanding of the Company's anticipated cash flow and the Company's ability to fund its expenditures based on the assumptions described herein. Readers are cautioned that this information may not be appropriate for other purposes.

Contact:

Tel: (403) 705-4525

Web: www.leucrotta.ca

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