Mr. Shubham Garg reports

PROSPERA ANNOUNCES COMMENCEMENT OF SERVICE RIG OPERATIONS

Prospera Energy Inc. has commenced service rig operations across its core Saskatchewan heavy oil properties. The rig marks the launch of the company's second half 2026 workover and reactivation campaign, a program designed to convert Prospera's deep inventory of workover and reactivation candidates into near-term, capital-efficient production growth.

Program overview

The service rig has been mobilized to Luseland and is now executing the first phase of the campaign. This initial program consists of well reactivations with demonstrated historical productivity and significant remaining recoverable reserves, backstopped by success of the 2024/2025 reactivation program.

This 2024/2025 reactivation program consisted of 17 wells for a total capital expenditure of $1.64-million and which has generated total net operating income of $1.70-million as of June 30, 2026, with several wells continuing to rise in production and cash flows. Five wells on this program have achieved more than two times payout demonstrating the robust economics and cash flow generation potential of this prolific asset which is ready to scale.

Capital-efficient growth

Reactivations remain the most capital-efficient barrels available to Prospera. The company's existing well bores, field infrastructure and now consolidated 100-per-cent working interest position across its Saskatchewan core heavy oil properties allow production to be brought on line at a small fraction of the cost of drilling. Prior phases of the reactivation strategy have already proven the model, with wells shut in for more than 20 years successfully returned to production and now contributing meaningfully to corporate volumes.

This campaign builds directly toward the company's 2026 growth plan and positions Prospera to exit the year at a materially higher production rate. Incremental barrels benefit from a low variable operating cost structure, supportive heavy oil pricing environment and the company's WCS differential hedge all flowing through to funds from operations and reinforcing Prospera's continuing balance sheet strengthening initiatives.

Board update

Further to the news release issued Aug. 3, 2026, Prospera Energy clarifies that Christopher Moore's resignation from the board of directors, effective July 8, 2026, was complete and final due to medical and personal reasons. Mr. Moore does not hold an advisory role, nor does he participate in corporate decision-making or operations for the company.

About Prospera Energy Inc.

Prospera Energy 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 Energy is listed on the TSX Venture Exchange under the symbol PEI and the United States 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 ASC 51-324 to ensure consistency and transparency in reporting.

We seek Safe Harbor.