Touchstone Exploration Inc. ('Touchstone', 'we', 'us' or the 'Company') (TSX / LSE: TXP) announces a proposed placing in the UK and Canada (the 'Placing') of up to US$30 million (approximately GBP23.2 million and C$40.0 million) through the issue of common shares of no par value (the 'Placing Shares') with institutional and other investors in the United Kingdom and Canada.

In the event of excess demand, the Company reserves the right to increase the size of the Placing. The Placing in the UK is being completed by way of an accelerated bookbuild and placees will subscribe for Placing Shares pursuant to the terms and conditions set out in the Appendix to this announcement (the 'UK Placing'). In Canada, placees will subscribe for Placing Shares pursuant to customary subscription agreements (the 'Canadian Placing'). Shore Capital and Canaccord (each as defined below) are acting as Joint Bookrunners in connection with the UK Placing. Canaccord is Sole Bookrunner in respect of the Canadian Placing.

Background to the Placing and Use of Proceeds To date, the Company has drilled three successful gross exploration wells (2.4 net) on the Ortoire block, onshore in the Republic of Trinidad and Tobago (Touchstone 80% working interest). Touchstone spudded its fourth exploration well, Cascadura-Deep, on October 27, 2020. On the basis of three significant natural gas discoveries to date, the Company is seeking to raise up to US$30 million to fund continued exploration, development and production activities at Ortoire, including:

Cascadura-1ST1 - surface facility development; Chinook-1 - completion, testing and potential surface facility development; Cascadura Deep - drilling, potential completion, testing and surface facility development and Royston - drilling and potential completion and testing.

The Company also intends to use a portion of the net proceeds of the Placing to fund a seismic program in order to fulfil its work commitments under the Ortoire exploration and production licence, as well as for working capital purposes.

Touchstone Exploration Inc. Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company's common shares are traded on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol 'TXP'. For f

Contact:

Tel: +44 (0) 203 781 8330

Forward-Looking Statements

Certain information provided in this announcement may constitute forward-looking statements and information (collectively, 'forward-looking statements') within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words 'expects', 'plans', 'anticipates', 'believes', 'intends', 'estimates', 'projects', 'potential' and similar expressions, or are events or conditions that 'will', 'would', 'may', 'could' or 'should' occur or be achieved. Forwardlooking statements in this announcement include, but are not limited to, those in respect of the Placing, including the size, pricing and timing thereof, the type of securities being offered thereunder, the investors participating therein, the intended use of proceeds therefrom (including with respect to future exploration, development and production activities and the locations thereof, and the extent to which such activities are expected to fulfil the Company's contractual commitments under the Ortoire exploration and production licence) and the conditions and approvals required and applications being filed in connection therewith. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in the Company's December 31, 2019 Annual Information Form dated March 25, 2020 which has been filed on SEDAR and can be accessed at www.sedar.com. The forward-looking statements contained in this announcement are made as of the date hereof, and except as may be required by applicable securities laws, the Company assumes no obligation to update publicly or revise any forward-looking statements

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