Mr. Shubham Garg reports

PROSPERA ENERGY COMMITS TO CLEANUP SCHEDULE FOR ALL SASKATCHEWAN ENVIRONMENTAL OBLIGATIONS AND CANCELS EQUITY FINANCING

Prospera Energy Inc. has reaffirmed its commitment to clean up every outstanding environmental obligation site and resolve every compliance issue across its Saskatchewan fields, working closely with the Saskatchewan Ministry of Energy and Resources, landowners, rural municipalities and local vendors. The company has confirmed the support of its senior secured lender and key stakeholders on this commitment, and all its active wells remain on-line and producing at this time.

Prospera's commitment: every site at the monitoring stage by Jan. 22, 2027

Prospera is committed to cleaning up the 13 environmental sites named in Minister's Order MRO 98/26, most of which predate current management, and to restoring each to its original condition. To date since Oct. 31, 2024, the company has invested $2.83-million in spill response, site assessment and remediation, logged 1,646 field hours with local crews, hauled 6,662 tonnes of contaminated soil to an approved landfill, and isolated or repaired four failed pipelines. Eleven of the 13 sites are at or past phase 2 assessment. Prospera has given the ministry the following site-by-site schedule:

• Nov. 15, 2026: legacy spill piles at Cuthbert 08-28, 02-28 and 01-28 removed, with confirmatory testing to begin;
• Nov. 27, 2026: Hearts Hill 04-20, 16-28 and 05-20 and Luseland 12-28 at the monitoring stage, with remediation as laboratory results are received;
• Dec. 15, 2026: Hearts Hill 09-20 and both 09-19 sites at the monitoring stage; results for the 09-19 sites have been submitted to the ministry's Kindersley office and are awaiting its approval to backfill;
• Dec. 25, 2026: phase 2 assessments complete at Cuthbert 02-02 and 12-27;
• Dec. 31, 2026: Hearts Hill 08-28, the site of a September, 2026, pipeline release, at the monitoring stage;
• Jan. 22, 2027: all five Cuthbert sites at the monitoring stage.

Topsoil replacement and seeding on reclaimed areas will follow in spring 2027.

Resolving compliance items

The ministry's inspection records show open items reduced from 146 in October, 2024, to 58 today, with 352 of 410 items closed.

• All 2026 annulus testing is complete; failed wells are shut in and packer repairs have been completed.
• The vegetation management plan is complete, with all three areas cut and sprayed multiple times this season.
• Inspection corrections and fixes have been uploaded consistently to the ministry's IRIS system for reinspection.
• The abandonment, reclamation and reactivation plan is complete, and a 30-well program has been costed.
• Every well on an expired freehold lease has been reviewed and is being renewed or abandoned.

Working with the ministry

Prospera is working hand in hand with the ministry to see this through. It has met with the ministry and filed a written progress report every two weeks for the past two years, has offered weekly reporting until every site is at monitoring stage or closed, has invited ministry staff to visit the sites, and follows the ministry's written guidance on what each site must show to reach the monitoring stage. A dedicated compliance team reports directly to the chief executive officer and reviews every obligation weekly.

Minister's Order MRO 196/26 suspends Prospera's Saskatchewan licences in stages beginning Nov. 29, 2026. Prospera has asked the province for a written, performance-based path to rescind the order, based on the milestones the company meets over the next seven to 21 days and the significant environmental fieldwork that was already under way throughout September, October and early November.

Working with the community

Prospera is a long-term partner to the communities around its fields:

• Landowners: Prospera has paid $6.6-million in surface lease payments to area farmers and landowners since 2021, and an active reclamation program is cleaning up leases left by prior operators.
• Local vendors: Since new management took over in October, 2024, Prospera has reduced the legacy and active vendors it inherited which still have outstanding balances from 660 to 306, settling one creditor at a time through active communication. Its fieldwork is carried out by local trucking, service rig, chemical and field service companies whose outstanding balances have been brought down considerably both in dollar amounts and aging schedule.
• Reactivating existing wells: Through reactivations of inactive wells, Prospera has taken Luseland production from 54 to 284 barrels per day. Its first 10 restarted wells cost $1.14-million and have generated $2.19-million in profit, and nine of the 10 have paid out in about 11 months on average, bringing work and commerce back to the towns around Luseland, Macklin and Kindersley.
• Beyond the field: Prospera sponsors Stigma-Free Mental Health's Illuminate event on oil sector and rural mental health; charity events for Brown Bagging for Calgary's Kids, pediatric cancer care and youth sport; the Straz Strong Foundation of Humboldt Broncos survivors; and the University of Alberta petroleum engineering student events.

"We are committed to restoring every one of these sites and resolving every outstanding compliance item at an accelerated pace, and our crews have been and are on site today," said Shubham Garg, chairman and chief executive officer of Prospera. "We have given the province a firm schedule, with every site at the monitoring stage by Jan. 22, and we will meet it. Saskatchewan's landowners, municipalities and local businesses are our partners in this, and we intend to have our fields clean, compliant and a source of good work for the communities around them, including obligations we inherited when our new management team came into Prospera in October, 2024."

Cancellation of equity financing

As a result of Minister's Order MRO 196/26, Prospera has cancelled its previously announced $12-million equity financing, which had been scheduled to close on Nov. 7, 2026.

Commitment to updates

Prospera will issue a further update on its environmental remediation program and progress at every key milestone, and issue a further update on its discussions with the ministry regarding the order as material developments occur. The update will report progress against each milestone in the schedule above, including the removal of the Cuthbert spill piles by Nov. 15 and the sites reaching monitoring stage by Nov. 27. Prospera will continue to report regularly to the ministry and will keep shareholders, landowners and the communities where it operates informed as the work proceeds.

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 on 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 Canadian Securities Administrators' staff notice 51-324 to ensure consistency and transparency in reporting.

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