Prairie Storm Energy Corp. entered into letter of intent to acquire Quendale Capital Corp. (TSXV:QOC.P) for CAD 40.3 million in a reverse merger transaction on August 26, 2020. Prairie Storm Energy Corp. entered into a definitive agreement to acquire Quendale Capital Corp. (TSXV:QOC.P) in a reverse merger transaction on November 16, 2020. Under the terms of agreement, acquisition contemplate a share exchange of the 76.3 million outstanding common shares of Prairie Storm at a ratio of approximately 1:1.883233. As a part of the acquisition, resulting issuer will carry on the business as previously carried on by Prairie Storm and the resulting issuer will have 147.210026 million common shares issued and outstanding (on a non-diluted basis) out of which 3.46 million will be held by existing shareholders of Quendale Capital and 143.75 million will be held by existing shareholders of Prairie Storm which is 97.65% of the outstanding resulting issuer shares. On closing Quendale will change its name to “Prairie Storm Resources Corp.”, or such other name as determined by Prairie Storm and as approved by the TSXV. Upon completion of the transaction, Quendale expects the Resulting Issuer Shares to commence trading on the TSXV under the symbol “PSEC” on or about December 21, 2020. The common shares of Quendale are currently suspended from trading and are expected to remain suspended pending completion of the transaction.

Upon completion of the acquisition, Hugh G. Ross, Co-founder, President and Chief Executive Officer of Prairie Storm will join as President, Chief Executive Officer and Director, Roderick Keith MacLeod will join as Director, Bruce G. Waterman will join as Director, Julian Din will join as Vice President, Business Development and Director, Ketan Panchmatia will join as Vice President, Finance & Chief Financial Officer, Greg Groten will join as Vice President, Exploration, Michael Schmidt will join as Vice President, Engineering and Rob Morrison will join as Vice President, Operations in the resulting issuer. The current head office of Prairie Storm, located at 2000- 215 9 Ave SW, Calgary AB, T2P 1K3, shall continue to be the head office of the resulting issuer. The transaction is subject to execution of a definitive acquisition agreement, dissenters rights limited, approval by the shareholders and Board of Directors of Prairie Storm, receipt of applicable regulatory, approval by the shareholders and Board of Directors of Quendale, resignation of Quendale directors, other material third party approvals and TSXV approvals and Prairie Storm shall have nominated the directors and officers. As of November 29, 2020, the conditional acceptance by the TSXV regarding the transaction is expected shortly. As of December 2, 2020, the transaction has received conditional approval from the TSX Venture Exchange and the conditional acceptance is valid for a 90 day period from November 30, 2020. As of December 2, 2020, the transaction is expected to close on or about December 16, 2020. Melinda Park of Borden Ladner Gervais LLP acted as legal advisor to Quendale. Scott W. N. Clarke of Blake, Cassels & Graydon LLP acted as legal advisor to Prairie Storm.