Petro Rio S A : MATERIAL FACT - CLOSING OF THE ACQUISITION OF 30% INTEREST IN FRADE

Praia de Botafogo, 370 • 13º andar

Botafogo • 22250-040 • Rio de Janeiro/RJ

[phone]

petroriosa.com.br

MATERIAL FACT

CLOSING OF THE ACQUISITION OF 30% INTEREST IN FRADE

Rio de Janeiro, January 21, 2021 - Petro Rio S.A. ("Company" or "PetroRio") (B3: PRIO3), in accordance with art. 26 of the Novo Mercado Regulation, and in addition to the Material Fact of November 28, 2019, informs its shareholders that the country's National Petroleum, Gas and Biofuels Agency ("ANP") has approved the concession of the 30% interest in Frade Field, currently held by Petróleo Brasileiro S.A. - Petrobras - to PetroRio.

Thus, within the upcoming days, the Concession Contract Additional Term will be signed by ANP, therefore closing the acquisition of the entirety of the oil and gas exploration, development and production rights and obligations equivalent to Petrobras' 30% interest in Frade consortium.

As of the signing, the Company will hold 100% of Frade Field, 100% of Frade FPSO and the economic benefit stemming from the 30% interest in the Frade Field will be incorporated into the financial statements of the Company, which will fully benefit from the profitability derived from the cost reduction and production enhancement initiatives

This transaction will increase Company's 1P reserves by 17 million barrels and 5.2 thousand barrels will be added to PetroRio's daily production. Additionally, the acquisition's closing allows the Company to be entitled to an oil stock of approximately 400 thousand barrels.

In the same resolution, ANP also approved the reduction of the estimated Frade Field decommissioning amount, from US$ 393 million to US$ 179 million, which will result in a positive adjustment, corresponding to the abandonment provision line in PetroRio's balance sheet.

The acquisition represents the conclusion of yet another successful step in the execution of PetroRio's growth strategy, through the acquisition and redevelopment of producing fields, replicating Polvo Field's success in Frade, thereby increasing the Field's profitability and extending its economic life.

About PetroRio

PetroRio is one of the largest independent companies in the oil and gas production in Brazil. The Company´s corporate culture seeks to increase production through the acquisition of new production assets, the redevelopment of assets, increased operational efficiency and reduction of production costs and corporate expenses. PetroRio's main objective is to create value for its shareholders with growing financial discipline and preserving its liquidity, with full respect for safety and the environment. For further information, please visit the Company's website: www.petroriosa.com.br.

Disclaimer

This news release contains forward-looking statements. All statements other than statements of historical fact contained in this news release are forward-looking statements, including, without limitation, statements regarding our drilling and seismic plans, operating costs, acquisitions of equipment, expectations of finding oil, the quality of oil we expect to produce and our other plans and objectives. Readers can identify many of these statements by looking for words such as "expects", "believe", "hope" and "will" and similar words or the negative thereof. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. By their nature, forward-looking statements require us to make assumptions and, accordingly, forward-looking statements are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements, since a number of factors may cause actual future circumstances, results, conditions, actions or events to differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements and the assumptions underlying the forward-looking statements.

Praia de Botafogo, 370 • 13º andar • Botafogo • 22250-040 • Rio de Janeiro/RJ

[phone]

petroriosa.com.br