Mr. Chris Ludtke reports

PROSPERA ENERGY INC. ANNOUNCES SERVICE RIG UPDATE, CLOSING OF ACQUISITION, WARRANT AMENDMENTS, STOCK OPTION GRANT, AND SHARES-FOR-DEBT SETTLEMENT

Prospera Energy Inc. completed a total of 32 workovers and reactivations in first quarter 2025 before releasing service rigs for spring breakup on March 20. This included 16 service rig jobs in Hearts Hill, 11 jobs in Luseland, which consisted primarily of high-impact reactivations, and five jobs in Cuthbert. The corporation will release further information in the March operations update scheduled for release later this month.

Acquisition closing

Prospera Energy announces it has closed the acquisition of a 10-per-cent working interest in each of the Hearts Hill, Luseland and Cuthbert properties from an arm's-length joint venture partner. The total purchase price for this transaction was $1,792,646, consisting of $400,000 in cash to be paid over 16 months, $200,000 in equity through the issuance of 3,076,923 Prospera common shares at a price of 6.5 cents per share, subject to a six-month hold period, and forgiveness of all outstanding debts totalling $1,192,646 owed by the joint venture partner. Furthermore, 3,076,923 warrants were issued, allowing the holder to acquire one Prospera common share at a price of 10 cents in the first year and 15 cents in the second year.

Warrant amendment update

Further to its Jan. 9, 2025, announcement, Prospera provides an update on the amended terms of outstanding warrants:

• The expiry date for all 15.33 million warrants has been extended by one year, now expiring on Feb. 14, 2026.
• A total of 13,363,000 of the 15.33 million warrants have been repriced to six cents while 1,967,000 remain priced at nine cents.
• An accelerated expiry clause has been introduced, whereby the exercise period of the warrants will be reduced to 30 days if, for any 10 consecutive trading days during the unexpired term of the warrant, the closing price of the listed shares exceeds 7.5 cents.

Stock option grant

Prospera has granted a total of two million options at five cents pursuant to its incentive stock option plan to management. Each option allows the holder to acquire one common share of the corporation at an exercise price of five cents per share. The options are exercisable for a period of three years in accordance with the terms of the plan.

Shares for debt

The corporation has settled $72,765.48 in outstanding interest expense owed to debentureholders through the issuance of 1,455,309 common shares at a price of five cents per share.

About Prospera Energy Inc.

Prospera is a publicly traded Canadian energy company, specializing in the exploration, development and production of crude oil and natural gas. Headquartered in Calgary, Alta., Prospera is dedicated to optimizing recovery from legacy fields using environmentally safe and efficient reservoir development methods and production practices. The company's core properties are strategically located in Saskatchewan and Alberta, including Cuthbert, Luseland, Hearts Hill and Brooks. Prospera is listed on the TSX Venture Exchange under the symbol PEI and the U.S. OTC Market under GXRFF.

Prospera reports gross production at the first point-of-sale, excluding gas used in operations and volumes from partners in arrears, even if cash proceeds are received. Gross production represents Prospera's working interest before royalties while net production reflects its working interest after royalty deductions. These definitions align with Alberta Securities Commission 51-324 to ensure consistency and transparency in reporting.

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