Blacksteel Energy Inc. signed a letter of intent to acquire Drakkar Energy Ltd. on September 19, 2022. The acquisition of all of the issued and outstanding securities of Drakkar for total consideration of approximately CAD 3.2 million includes: approximately 2.3 million common shares in the capital of Blacksteel (the ?Common Shares?) in exchange for 23 million common shares of Drakkar; 7.056 million Common Shares in exchange for the outstanding convertible debentures of Drakkar; 9.564 million Common Shares in exchange for outstanding preferred share of Drakkar; Approximately CAD 251,000 in cash and 7.85 million Common Shares for certain outstanding payables; Assumption of approximately CAD 0.313 million of debt. Listing of the Common Shares on a recognized stock exchange on or before June 30, 2023.

The Proposed Transaction is conditional on the completion of due diligence, legal review, tax advice and signing of a definitive agreement that is satisfactory to Blacksteel and Drakkar. Completion of the Proposed Transaction is also subject to additional conditions, including but not limited to: (i) approval from Drakkar securityholders with respect to the Proposed Transaction; (ii) completion of one or more private placements for gross proceeds of not less than CAD 2 million; (iii) the approval, if necessary, by the shareholders of Blacksteel of the Proposed Transaction. The terms of the transaction are very accretive to Blacksteel shareholders.

As of November 2, 2022, the cash portion of the transaction will remain the same but the shares to be issued by Blacksteel will now total 10 million shares instead of the 26.77 million shares previously announced. All other terms remain the same. As of February 2, 2023, Blacksteel Energy Inc. has signed an agreement for the acquisition of all of the shares of Drakkar Energy Ltd. Drakkar has scheduled a shareholder meeting to approve the Transaction on March 1, 2023.

The closing of the acquisition of Drakkar in Quarter 1 of 2023. Eugene Chen of McLeod Law LLP acted as legal advisor to Blacksteel Energy Inc.