On November 1, 2023, HighPeak Energy, Inc. (the ?Company?) entered into a revolving credit agreement (the ?Senior Revolving Credit Agreement?) among the Company, as borrower, Fifth Third Bank, National Association, as administrative agent and as collateral agent, and the lenders from time to time party thereto. The Senior Revolving Credit Agreement has a borrowing capacity of $100 million, elected commitments of $75.0 million and a maturity date of September 30, 2026. Loans under the Senior Revolving Credit Agreement bear interest at either the Adjusted Term SOFR (as defined in the Senior Revolving Credit Agreement) or the Base Rate (as defined in the Senior Revolving Credit Agreement) at the Company?s option, plus an applicable margin ranging from (i) for Adjusted Term SOFR loans, 4.00% to 5.00%, and (ii) for Base Rate loans, 3.00% to 4.00%, in each case calculated based on the ratio at such time of the outstanding principal loan amounts to the aggregate amount of lenders?

commitments. To the extent that a payment default exists and is continuing, at the election of the Required Lenders (as defined in the Senior Revolving Credit Agreement) under the Senior Revolving Credit Agreement, all amounts outstanding under the Senior Revolving Credit Agreement will bear interest at 2.00% per annum above the rate and margin otherwise applicable thereto. The Company is able to repay any amounts borrowed prior to the maturity date without premium or penalty.

The Senior Revolving Credit Agreement is guaranteed by the Company and certain of its subsidiaries and is secured by a first lien security interest in substantially all assets of the Company and certain of its subsidiaries. The Senior Revolving Credit Agreement also contains certain financial covenants, including (i) an asset coverage ratio than may not be less than 1.50 to 1.00 as of the last day of any fiscal quarter and (ii) a total net leverage ratio that may not exceed 2.00 to 1.00 as of the last day of any fiscal quarter. Additionally, the Senior Revolving Credit Agreement contains additional restrictive covenants that limit the ability of the Company and its restricted subsidiaries to, among other things, incur additional indebtedness, incur additional liens, make investments and loans, enter into mergers and acquisitions, make or declare dividends and other payments, enter into certain hedging transactions, sell assets, engage in transactions with affiliates and make certain capital expenditures based on the Company?s total net leverage ratio.

The Senior Revolving Credit Agreement contains customary mandatory prepayments, including the prepayment of gross proceeds from any incurred indebtedness other than Permitted Indebtedness (as defined in the Senior Revolving Credit Agreement) and the prepayment of net cash proceeds for asset sales and hedge terminations in excess of $25 million within one calendar year. In addition, the Senior Revolving Credit Agreement is subject to customary events of default, including a change in control. If an event of default occurs and is continuing, the administrative agent or the required lenders may accelerate any amounts outstanding and terminate lender commitments.