Mr. Alex Verge reports

JOURNEY ENERGY INC. ANNOUNCES CLOSING OF BOUGHT DEAL PUBLIC OFFERING OF FLOW-THROUGH COMMON SHARES

Journey Energy Inc. has closed the bought deal flow-through share financing that was previously announced on March 1, 2023. The full 15-per-cent overallotment was exercised, bringing the total equity issuance to 3,040,031 flow-through common shares at a price of $6.62 per share for total gross proceeds of $20,125,005. The financing was successfully concluded by Journey's syndicate of underwriters, which included StifelFirst Energy, as lead underwriter and sole bookrunner, and also included Cormark Securities Inc., Acumen Capital Finance Partners Ltd., Eight Capital, and Peters & Co. Ltd

Pursuant to the financing, the company will incur qualifying Canadian development expenses on or before March 31, 2024, in an amount not less than the gross proceeds raised from the issuance of the flow-through shares. Canadian development expenses in an amount equal to $10-million will be renounced to purchasers of flow-through shares with an effective date no later than Dec. 31, 2023. Canadian development expenses in an amount equal to the total commitment amount minus the 2023 commitment amount will be renounced to purchasers of flow-through shares hereunder with an effective date or dates of no later than March 31, 2024. It is currently expected that the proceeds from the flow-through share issuance will occur throughout the second half of 2023 and the first quarter of 2024. Journey is currently in the process of refining its capital budget for the remainder of 2023 and intends to provide full-year guidance on or about March 31, 2023.

About Journey Energy Inc.

Journey is a Canadian exploration and production company focused on conventional, oil-weighted operations in Western Canada. Journey's strategy is to grow its production base by drilling on its existing core lands, implementing waterflood projects and executing on accretive acquisitions. Journey seeks to optimize its legacy oil pools on existing lands through the application of best practices in horizontal drilling and, where feasible, with waterfloods.

We seek Safe Harbor.