An anonymous director reports

CANACOL ENERGY LTD. ANNOUNCES RENEWAL OF NORMAL COURSE ISSUER BID

The Toronto Stock Exchange has accepted Canacol Energy Ltd.'s notice to conduct a normal course issuer bid (NCIB) in accordance with the rules of the TSX.

As approved by the TSX, the corporation is authorized to purchase up to 1,971,950 common shares, representing approximately 10 per cent of the public float of Canacol, being 19,719,500 common shares as of Jan. 19, 2023. As of Jan. 19, 2023, there were 34,111,487 common shares outstanding. The maximum number of common shares that Canacol may purchase on any given day is 13,095 common shares, which is 25 per cent of the corporation's average daily trading volume on the TSX for the six months ended Dec. 30, 2022, of 52,383 common shares (on a postconsolidation (as defined below) basis). Canacol may also make one weekly block repurchase which exceeds the daily limit, subject to prescribed rules. The corporation has appointed Eight Capital as its broker to conduct the NCIB transactions.

The corporation is authorized to make purchases during the period from Feb. 2, 2023, to Feb. 1, 2024, or until such earlier time as the NCIB is completed or terminated at the option of the corporation. Any common shares the corporation purchases under the NCIB will be purchased on the open market through the facilities of the TSX and/or alternative trading systems in Canada, at the prevailing market price at the time of the transaction. All common shares acquired under the NCIB will be cancelled. The funds to purchase the common shares will be provided by working capital of the corporation.

The corporation's previous NCIB expired on Dec. 23, 2022, and the corporation completed a consolidation of its common shares on the basis of five existing preconsolidation shares for every one postconsolidation share on Jan. 17, 2023. Under the previous NCIB, the corporation obtained the approval of the TSX to purchase up to 10,513,661 preconsolidation common shares, which represented 10 per cent of the corporation's public float at the time of approval. The corporation purchased on the open market and cancelled an aggregate total of 5,609,332 preconsolidation common shares at a weighted average price of $3.10 per preconsolidation common share under the previous NCIB.

Canacol has also entered into an automatic share purchase plan (ASPP) with its designated broker. The ASPP is intended to allow for the purchase of common shares under the NCIB at times when the corporation may not ordinarily be permitted to purchase common shares due to regulatory restrictions and customary self-imposed blackout periods.

Pursuant to the ASPP, the designated broker may purchase common shares until the expiry of the NCIB on Feb. 1, 2024. Such purchases will be determined by the broker at its sole discretion based on the purchasing parameters set out by the corporation in accordance with the rules of the TSX, applicable securities laws and the terms of the ASPP. The ASPP has been precleared by the TSX and will be effective on the date of the NCIB. The ASPP will terminate on the earlier of the date on which: (i) the NCIB expires; (ii) the maximum number of common shares have been purchased under the ASPP; and (iii) the corporation terminates the ASPP in accordance with its terms.

Outside of the ASPP, common shares may continue to be purchased under the NCIB based on management's discretion, in compliance with the rules of the TSX and applicable securities laws. All purchases made under the ASPP will be included in the number of common shares available for purchase under the NCIB.

The corporation believes that, from time to time, the market price of its common shares may not reflect their underlying value and that, at such times, the purchase of common shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining shareholders. In addition, the purchases by Canacol under the NCIB may increase liquidity to shareholders wishing to sell their common shares.

About Canacol Energy Ltd.

Canacol is a natural gas exploration and production company with operations focused in Colombia. The corporation's common stock trades on the TSX, the OTCQX in the United States, and the Colombia Stock Exchange.

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