Mr. Cameron Taylor reports

ROK RESOURCES FILES FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2023 AND PROVIDES LITHIUM UPDATE

Rok Resources Inc. has filed its interim financial results, and management's discussion and analysis (MD&A) for the three and six months ended June 30, 2023, and has provided an update on the second lithium well drilled.

Q2 2023 highlights:

• Production up 8 per cent YoY (year-over-year): Production was up 8 per cent from 3,054 boepd (barrels of oil equivalent per day) in Q2 2022 to 3,297 boepd in Q2 2023.
• Net debt reduced by 90 per cent YoY: Net debt was reduced from $38.4-million at June 30, 2022, to $3.8-million. Note: 2023 net debt calculation is inclusive of $7.2-million of the current portion of hedges to be realized in the next 12 months based on mark-to-market fair value.
• Term loan fully repaid: The company fully repaid its non-revolving term loan, 20 months prior to expiry, without penalty. Since March, 2022, the company has retired more than $60-million of debt.
• Credit facility renewed: The company renewed its $22.5-million revolving credit facility.
• 2024 to 2025 hedges unwound: The company made the strategic decision to unwind certain 12-month to 24-month commodity swap hedges, with the elimination of this requirement with the termination of the term loan.
• Lithium National Instrument 43-101 technical report released: The company announced the results of Hub City Lithium Corp.'s National Instrument 43-101 technical report, confirming an inferred lithium resource of 1.15 million tonnes (Mt) of lithium carbonate equivalent (LCE).
• Delineated Viewfield lithium asset: Drilled the second lithium test well at Viewfield and confirmed high lithium concentrations.

Two thousand twenty-three corporate outlook

The first six months of 2023 were focused on corporate debt reduction, accretive asset purchases, non-core divestitures and the integration of new assets, as well as the restructuring of the company's hedge book to provide greater exposure to an inclining commodity price environment. Total debt was reduced by over 90 per cent year-over-year, which has provided the company with the flexibility to allocate additional development capital across some of the most economic plays in North America. Given the significant delivering in the first half of the year, the company will utilize a portion of its spare debt capacity, but will continue to target a D:CF level of 0.5. Rok will focus the next 12 months to 18 months on organic production growth and will continue to evaluate strategic, tuck-in acquisitions in core operating areas. Consistent with previous disclosures, the company's capital program remains weighted to the second half of 2023, with a focus on southeastern Saskatchewan light-oil growth. The capital budget remains unchanged at approximately $30-million and the company continues to target a 4,500 boepd exit rate at Dec. 31, 2023.

In summary, the company is pleased to provide the following guidance for the remainder of 2023:

• Capital budget unchanged at $30-million;
• Nine to 11 gross drilling locations, targeting highly economic, light oil plays in southeast Saskatchewan;
• Exit 2023 production target of 4,500 boepd;
• Exit 2023 net debt of $16-million to $17-million, before inclusion of any mark-to-market fair value of hedges.

Q2 2023 summary

In Q2 2023, the first full quarter since the closing of the acquisition (as defined from the news release dated Jan. 24, 2023), the company realized an average daily production volume of 3,297 boepd (62 per cent liquids), resulting in crude and natural gas sales of $17.7-million, and oil and natural gas sales and realized hedge gain of $2.4-million. This generated a net operating income of $6.9-million, after royalties, operating expenses, and processing and other income.

The Alberta wildfires affected Rok's Kaybob, Alberta, operations, resulting in production shut-ins of approximately 250 boepd (80 per cent natural gas) over the period. Production has recently been restored, however periodic production shut-ins are expected throughout Q3 2023 due to continuing constraints of third party facilities. In addition, as is customary for spring in Saskatchewan and Alberta, road bans reduced production by approximately 50 boepd for the period.

Operating costs, which include expenses incurred to operate wells, and gather, treat and transport production volumes, as well as costs to perform well and facility repairs and maintenance, increased in Q2 2023 when compared with previous periods. This can be attributed to increased gas gathering costs associated with acquired production assets, in addition to a cost-per-barrel increase due to the temporary shut-ins of production. With the integration of the new assets, workover and well repair costs increased as previously down wells were brought back on-line. The company expects these costs to normalize back to previous levels through the remainder of 2023, with estimated annualized operating expenses of $27 to $28 per boe, inclusive of transportation. Uncertainty around continuing inflationary effects on operating costs will continue to be a contributing factor.

Capital expenditures in the quarter totalled $4.1-million, which included the early spud of the company's first drilling location. The remainder of capital expenses were attributed to the recompletion and workover of newly acquired wells, core land purchases, abandonment and reclamation work, and expenses related to the Hub City Lithium operations.

Net debt

Net debt as at June 30, 2023, and Dec. 31, 2022, are outlined in the associated table.

Rok uses net debt as a measure of the company's financial position and liquidity, however it is not intended to be viewed as an alternative to other measures calculated in accordance with IFRS (international financial reporting standards).

Complete reports and statements are available on SEDAR+ and on the company's website.

Lithium update

The company, as a 25-per-cent shareholder and manager of operations of Hub City Lithium, is pleased to announce successful results from a multilayer perforation and swab test of a second targeted lithium well located in the Viewfield area of Saskatchewan. The successful stepout well was approximately 800 metres east of the Viewfield discovery well (see press release dated Feb. 21, 2023).

Third party laboratory testing returned lithium concentrations in the Duperow formation of up to 237 milligrams per litre (mg/l). According to public records, these test results are among the highest lithium concentrations recorded in a brine in Canada to date. For detailed test results, see the table entitled "Test results."

These results confirm the highly concentrated lithium resource encountered in the Viewfield discovery well and are within the modelled range predicted by the National Instrument 43-101 resource assessment dated April 20, 2023 (please see press release from May 2, 2023). The information gathered from this well will be incorporated into the company's preliminary economic assessment, which is on schedule for completion and release in late September, 2023.

About Rok Resources Inc.

Rok is primarily engaged in exploring for petroleum and natural gas development activities in Alberta and Saskatchewan. It has offices located in both Regina, Sask., Canada, and Calgary, Alta., Canada.

We seek Safe Harbor.