HOME RUN OIL & GAS INC. entered into a letter of intent to acquire Cavalry Capital Corp. (TSXV:CVY.P) for CAD 6 million in a reverse merger transaction on April 18, 2023. HOME RUN OIL & GAS INC. entered into a definitive amalgamation agreement to acquire Cavalry Capital Corp. in a reverse merger transaction on June 30, 2023. Under the terms of the transaction, Cavalry will issue 60 million Cavalry shares to the former holders of Home Run common shares. In a related transaction, Cavalry will complete a private placement of 18.5 million units for gross proceeds of at least CAD 1.85 million (private placement), which will include the assumption of CAD 0.35 million of Home Run promissory notes outstanding to be settled via participation in the private placement. Upon closing, the management and Board of Directors of the Resulting Issuer will be comprised of three nominees from Home Run and two nominees from Cavalry, and Cavalry will change its name to such name as determined by Home Run in its sole discretion, in compliance with applicable law and as may be acceptable to the TSXV. Upon the closing of the Qualifying Transaction, it is anticipated that Jeffrey Standen, Owen Pinnell, Jim Silye, and John MacPhail will constitute the board of directors of Cavalry. New senior management team of Cavalry will be comprised of Jeffrey Standen (President, Chief Executive Officer and Corporate Secretary), Robert Gillies (Chief Financial Officer). In connection with the Qualifying Transaction, it is intended that Cavalry will change its name to “Canadian Home Run Energy Corporation” or such other name as agreed to by Cavalry and Home Run and accepted by the applicable regulatory authorities.

The completion of the transaction is subject to the satisfaction of customary closing conditions, including: (i) the satisfactory completion of due diligence by each of Cavalry and Home Run; (ii) receipt of all required approvals and consents relating to the transaction, including without limitation, any required approvals of the shareholders of Cavalry and Home Run, required approval of the TSXV and other approvals under applicable corporate or securities laws; (iii) completion of the Private Placement; and (iv) the TSXV's approval for listing the shares of the Resulting Issuer. Transaction will not require the approval of Cavalry’s shareholders.