Mr. Darcy Reding reports

PIERIDAE ANNOUNCES CLOSING OF EQUITY RIGHTS OFFERING

Pieridae Energy Ltd. has successfully completed its previously announced equity rights offering to eligible holders of its common shares of record at the close of business on Sept. 9, 2024. The rights offering expired at 3 p.m. MDT on Oct. 2, 2024, with the rights trading on the Toronto Stock Exchange under the symbol PEA.RT and having been delisted on that date.

At closing, Pieridae issued an aggregate of 118,476,306 common shares pursuant to the rights offering and the standby commitment (as described below) at a price of 24.48 cents per common share for aggregate gross proceeds of approximately $29-million. Following closing, Pieridae has 290,387,642 common shares issued and outstanding.

The rights offering resulted in 37,818,913 common shares issued pursuant to the exercise of rights under the basic subscription privilege and 61,251,034 common shares issued under the additional subscription privilege, for a total of 99,069,947 common shares issued to shareholders pursuant to the rights offering.

As previously announced, in connection with the rights offering, the company entered into a standby purchase agreement with Alberta Investment Management Corporation (AIMCo), an existing shareholder of Pieridae, pursuant to which AIMCo agreed to fully exercise its basic subscription privilege under the rights offering and to purchase up to an additional 77,625,434 common shares not otherwise subscribed for under the rights offering. In addition to fully exercising its basic subscription privilege for 24,498,749 common shares and its additional subscription privilege for 58,219,075 common shares, AIMCo acquired 19,406,359 common shares pursuant to the standby commitment. Following closing of the rights offering, AIMCo owns approximately 47 per cent of Pieridae's issued and outstanding common shares. Shareholder approval was not required in respect of AIMCo becoming a control entity of Pieridae because it acquired common shares in accordance with the rights offering exemption under Section 2.1 of National Instrument 45-106, Prospectus Exemptions, and because the subscription price was at a significant discount to the closing price of the common shares on the TSX on Aug. 26, 2024, being the last trading day prior to the announcement of the rights offering.

To the knowledge of the company after reasonable inquiry, insiders of Pieridae, including AIMCo, acquired 25,900,176 common shares under the basic subscription privilege and 59,879,790 common shares under the additional subscription privilege. To the knowledge of the company after reasonable inquiry, no person that was not an insider of the company before the rights offering became an insider as a result of the rights offering.

Pieridae intends to use the aggregate net proceeds from the rights offering and standby commitment to repay indebtedness, for working capital and general corporate purposes, and to finance certain value-accretive optimization projects.

"We are very pleased with the results of the rights offering and the standby commitment, which resulted in approximately $29-million equity proceeds for the company. This is a strong endorsement by participating Pieridae shareholders in favour of our E&P and mid-stream strategy," commented Darcy Reding, the company's president and chief executive officer.

Pursuant to the terms of the standby purchase agreement, Pieridae has also entered into an investor rights agreement and a registration rights agreement with AIMCo, each effective as of the date hereof. Copies of the investor rights agreement and registration rights agreement will be made available under Pieridae's profile on SEDAR+. Details of the rights offering and the standby commitment are set out in Pieridae's rights offering notice and rights offering circular, which are available under Pieridae's profile on SEDAR+.

There are no selling fees or commissions payable in connection with the rights offering. There is no fee payable to AIMCo in respect of the standby commitment; however, the company has agreed to pay the reasonable out-of-pocket costs and expenses incurred by AIMCo in connection with the standby purchase agreement and the rights offering.

Advisers

Peters & Co. Ltd. acted as exclusive financial adviser to Pieridae with respect to the rights offering. Norton Rose Fulbright Canada LLP acted as Pieridae's legal adviser.

About Pieridae Energy Ltd.

Pieridae is a Canadian energy company headquartered in Calgary, Alta. The company is a significant upstream producer and mid-stream custom processor of natural gas, natural gas liquids, condensate and sulphur from the Canadian foothills and adjacent areas in Alberta, and in northeastern British Columbia. Pieridae's vision is to provide responsible, affordable natural gas and derived products to meet society's energy security needs. Pieridae's common shares trade on the TSX under the symbol PEA.

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