Rubellite Energy Inc. recorded average conventional heavy oil sales production of 3,154 bbl/d for the third quarter of 2023, based on preliminary estimates. Current conventional heavy oil production, based on field estimates for the first two weeks of October, is approximately 3,577 bbl/d, driven by strong early time performance from new development wells in the Figure Lake area. At Figure Lake, a total of six (6.0 net) multi-lateral horizontal wells were rig released during the third quarter and one (1.0 net) well was drilled over the end of the quarter and rig released in early October.

All seven wells were located on a pad at 15-24-63-18W4 (the "15-24 Pad") with the final well on the eight-well 15-24 Pad rig released on October 15, 2023. All eight (8.0 net) wells have now been placed on production with strong results to date, recording an average IP30 of 222 bbl/d (5 wells), and IP60 of 211 bbl/d (3 wells), with all wells to date outperforming the Figure Lake type curve IP30 of 116 bbl/d. Wells not included in the preceding figures are either still recovering their oil-based mud load fluid or have not been on production for sufficient days to be included. The recent drills in their IP30 periods are also exhibiting strong performance commensurate with other wells on the 15-24 Pad.

The drilling rig has now moved to a new pad located at 9-3-63-18W4 (the "9-3 Pad") to drill a total of six (6.0 net) development wells in the mapped sweet spot at Figure Lake, up to five of which are expected to be rig-released prior to year-end. Rubellite has temporarily contracted a second rig for the balance of 2023 to accelerate evaluation of step out locations at the south end of Figure Lake and on the Buffalo Lake Metis Settlement ("BLMS") lands, while continuing the ongoing infill drilling program in the Figure Lake sweet spot with its primary rig. The second rig spud its first well October 14th on a pad located at 5-24-62-18W4 at the south end of the Company's Figure Lake acreage and offsetting prospective acreage included in the Acquisition.

Rubellite plans to utilize this second rig to drill two additional wells on the BLMS on a new pad at 5-32-63-17W4 to fully satisfy its BLMS commitment, and is also acquiring surface access to drill a fourth step-out delineation well to manage an upcoming land expiry related to the Acquisition. Running the two-rig program for the balance of 2023 as outlined, Rubellite expects to drill up to eleven (11.0 net) multi-lateral horizontal wells in the fourth quarter of 2023, for a full year 2023 total of twenty-seven (27.0 net) multi-lateral development infill and step-out wells all located in the greater Figure Lake area, as the Figure Lake property continues to be the primary focus of investment and development. In its Northern Exploration area, the Company has made an election to drill a second earning well (0.5 net) at Dawson to earn an additional six (3.0 net) sections to follow up and delineate the Clearwater pool encountered by the 5-16-81-16W5 discovery well drilled in the first quarter of 2023 and had plans to drill up to three (2.0 net) additional wells in its Northern Exploration area.

However, due to access constraints, this activity has been postponed to 2024. The Company intends to place the Dawson 5-16 well back on production in December and truck volumes along a temporary winter road until spring breakup in March 2024.