Rubellite Energy : Asset Acquisition Summary

Asset Acquisition

P&S to be executed October 19, 2023 - Expected to Close early November 2023

Nixon

Figure Lake

/ Edwand

Asset Acquisition Summary

• Purchase Price: $34.0 MM - Effective Oct 1, 2023
• Production: 800 bbl/d (estimated at closing in early November)
• • 15 producing wells in Greater Figure Lake
• Greater Figure Lake Area Land: 107 net sections
• • 27,392 net hectares, net of expected near-term expiries
  • Undeveloped Land(1) = 96 net sections (24,482 net ha) with FMV @ $397/ha = $9.7MM
  • 49 high-graded inventory locations
  • • 15 development locations at Figure Lake & South Edwand
    • 34 additional step-out locations in Greater Edwand area
    • Multiple additional exploratory prospects
• Nixon Area Land: 108 net sections of exploration acreage
• • Undeveloped Land(1) = 108 net sections (27,648 net ha) with FMV @ $53/ha = $1.5MM

Key Strategic Rationale

• In line with robust Clearwater growth strategy
• Acquisition in core operating area highly synergistic to operating, administrative and capital execution activities
• Base production adds funds flow to enhance flexibility, support accelerated organic growth in strong oil price environment, and continue to pursue exploration & consolidation
• Adds strategic inventory outside Key Wildlife Biodiversity Areas at Figure Lake
• Materially increases undeveloped land position and exposure to exploration opportunities at Figure Lake, Edwand and Nixon

1. Seaton-Jordan Land Evaluation Report for the Clearwater Properties as of October 1, 2023

Rubellite Energy Inc.