Mr. Alfred Sorensen reports

PIERIDAE RELEASES Q2 2022 RESULTS: RECORD NET OPERATING INCOME OF $56 MILLION DRIVES $23 MILLION IN DEBT PRINCIPAL REPAYMENT

Pieridae Energy Ltd. has released its second quarter 2022 financial and operating results, highlighted by record net operating income, material deleveraging and minor non-core asset divestitures.

Highlights

During Q2 2022 Pieridae:

• Generated record quarterly Net Operating Income1 ("NOI") of $56.0 million ($0.35 per basic and $0.35 per fully diluted share) up 287% from $14.4 million in the comparable period in 2021;
• Generated Adjusted Funds Flow from Operations1 ("AFFO") of $48.7 million ($0.31 per basic and $0.30 per fully diluted share), up 472% from $8.5 million in Q2 2021;
• Generated net income of $23.0 million ($0.15 per basic and $0.14 per fully diluted share), up 328% from a net loss of $10.1 million in the comparable period in 2021;
• Improved netback per boe by 309% to $16.90/boe ($30.24/boe excluding the impact of fixed price physical forward sales contracts) from $4.13/boe in Q2 2021;
• Produced 36,378 boe/d weighted 82% to natural gas production of 179 MMcf/d, down 5% from the comparable period in 2021;
• Repaid $23 million of senior secured term loan, reducing the amount due at maturity to $243 million2. Subsequent to quarter end, repaid an additional $5.6 million, reducing the outstanding principal due at maturity to $235 million; and
• Executed a binding agreement to dispose of certain minor non-core Northeast BC oil and gas properties to a third party, which is expected to close during Q4 2022.

"Strong commodity prices and steady operations coupled with rigorous operating cost management have resulted in a solid second quarter and we are very pleased to have repaid $23 million of our term loan," said Pieridae's Chief Executive Officer Alfred Sorensen. "If commodity prices remain strong, Pieridae expects to generate significant free cash flow in the second half of 2022. We remain focused on safe and reliable operations, improving our financial flexibility through ongoing debt reduction, further asset rationalization and optimization, and commencing the Company's previously announced inaugural three-well drilling program in October 2022."

Excluding the impact of fixed price commodity contracts, the operating netback would have been $30.24/boe for the quarter.

Commodity Pricing and Hedge Position

Energy markets continue to see a drastic change in fundamentals between 2021 and 2022. The AECO monthly natural gas price index increased 134% in the second quarter of 2022 compared to 2021. Average North American crude oil prices increased 65% in the second quarter of 2022 compared to the second quarter of 2021 based on persistent supply constraints and market uncertainty due to ongoing geopolitical events.

Pieridae's realized prices reflect the mix of spot sales and physical forward sales contracts.

In the first half of 2022, volumes sold under physical forward sales contracts represented 52% of total production and 65% of total revenue. If losses on physical forward sale contracts were removed, the Company's average realized natural gas prices for the six months ended June 30, 2022, would have been $5.87/mcf as compared to the AECO 5A benchmark of $5.99/mcf. If losses on physical forward sale contracts were removed, average realized condensate prices for the six months ended June 30, 2022, would have been $121.83/bbl as compared to the condensate benchmark prices of $127.58/bbl.

Pieridae will continue to hedge in order to mitigate commodity price volatility and protect the cash flow required to fund the Company's facility maintenance capital requirements, debt service obligations and capital development program while allowing the Company to meaningfully participate in future commodity price upside.

Production

Production in the second quarter of 2022 averaged 36,378 boe/d, a 5% decrease from 38,404 boe/d in Q2 2021. Production was impacted by the following events:

Planned field shut-ins due to scheduled turnarounds at two non-operated gas processing facilities in the Central Alberta Foothills region, which impacted production by approximately 3,300 boe/d. These turnarounds were completed and Pieridae's production was substantially restored during the quarter;

As a result of market fundamentals, liquid ethane was reinjected back into the natural gas sales stream at two of Pieridae's gas processing facilities during the quarter impacting production by approximately 1,225 boe/d (when measured on a 6:1 barrel of oil equivalent basis) but increasing the value of the stream resulting in no material impact to revenue;

Planned and unplanned downtime in the Caroline and Waterton areas as a result of maintenance activities and weather-related events which impacted production by approximately 1,800 boe/d during the quarter, all offset by comparative improvements of approximately 3,300 boe/day at Jumping Pound and Moose Mountain as these facilities were undergoing turnaround in Q2 2021.

Foothills Drilling Program

The Company will commence a three well drilling program in Q4, 2022 at Brown Creek in our Central Alberta Foothills area. This first drill program is focused on sweet liquids rich gas in Cretaceous Mannville Group reservoirs. Mannville sandstone reservoirs in the foothills are conventional and characterized by 3-11m net pay averaging 9-12% porosity. Structural targets will be exploited using proven foothills methodology and are intended be completed open hole, drilled at a true vertical depth of 2,600-3,300m. Successful wells in these reservoirs provide significant upside potential of up to 39 additional wells in the Central AB Foothills core area.

The project will incur gross development capital costs during Q4 2022 and Q1 2023 of $29 million and is anticipated to result in risked initial additional production of approximately 3,555 boe/d on a combined basis.

Export Development Canada ("EDC") Guarantee Facility Extension

During Q2 2022, the Company renewed and increased its guarantee facility from Export Development Canada to $12 million (previously $8 million). This guarantee facility provides for 100% guarantee to issuing banks of the Company's existing and future letters of credit, of which $7.0 million was drawn at June 30, 2022.

Northeast BC ("NEBC") Asset Sales

In June 2022 Pieridae's Board of Directors approved the sale of certain non-core oil and gas properties located in NEBC for $1.2 million in cash and either a 10% gross overriding royalty interest in certain lands included in the package or a $6.5 million cash payment, at the option of the purchaser.

The sale agreement has an effective date of May 1, 2022 and is subject to ordinary closing conditions, regulatory approvals, license transfers and normal closing adjustments, and is expected to close in Q4 2022.

"The sale of our Ekwan and Sierra properties is in line with our strategy of unlocking value from non-core assets," said Darcy Reding, President & COO. "The combination of cash and deferred consideration in the form of a royalty will allow increased focus on our core asset portfolio while providing shareholders with exposure to any future upside in these properties."

Pieridae's Board of Directors approved the 2022 budget in November 2021. Pieridae's priority has continued to be on improving flexibility by strengthening the balance sheet while sustaining production, implementing cost control initiatives, optimizing infrastructure logistics and executing non-core asset dispositions. Management is revising production guidance downward due primarily to expected continued reinjection of ethane production into the gas stream for at least the remainder of 2022 which impacts production by approximately 1,800 boe/d annualized (with associated impact on per boe figures) but does not impact total revenue expectations.

The Company's 2022 development capital program guidance range has been increased and narrowed to $25 - 30 million reflecting both a probable $3.9 million increase in Pieridae's participation in the upcoming drilling program and the addition of approximately $3.6 million of high-return optimization and development activities anticipated to support and strengthen production.

About Pieridae

Pieridae is a majority Canadian-owned corporation based in Calgary that was founded in 2011. The Company is focused on the exploration, extraction and processing of natural gas as well as assessing commercial options for a reconfigured LNG Project that fits with the current environment and would supply Europe and other markets. Pieridae provides the energy to fuel people's daily lives while supporting the environment and the transition to a lower-carbon economy. Pieridae's common shares trade on the TSX under the symbol "PEA".

We seek Safe Harbor.