Mr. Don Simmons reports

HEMISPHERE ENERGY RESPONDS TO INCIDENT AT ATLEE BUFFALO OIL BATTERY

A fire incident occurred overnight at Hemisphere Energy Corp.'s largest oil battery at its Atlee Buffalo property.

Emergency protocols were activated immediately, and the fire has since been extinguished with all damage contained within the company's lease. There are no injuries reported.

The incident resulted in the loss of all three treaters at the battery and is expected to cause significant downtime at the facility while cleanup, assessment and rebuild activities are completed. The affected oil battery accounts for up to 2,650 barrels of oil equivalent per day (99 per cent heavy oil) or approximately 75 per cent of the company's production. Hemisphere is working with the appropriate authorities, insurers and service providers to assess damage, determine the cause of the incident and develop a restoration plan.

The company will provide further updates as more information becomes available, including expected timing for repairs, production restoration and any potential impacts to previously announced guidance, which is currently being suspended until such information has been determined.

About Hemisphere Energy Corp.

Hemisphere is a dividend-paying Canadian oil company focused on maximizing value-per-share growth with the sustainable development of its high-netback, low-decline conventional heavy oil assets through polymer flood enhanced oil recovery methods. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol HME and on the OTCQX Venture Marketplace under the symbol HMENF.

We seek Safe Harbor.