An anonymous director reports

SONORO ENERGY COMPLETION OF FARM-IN AGREEMENT IN THE WESTERN CANADIAN SEDIMENTARY BASIN

Sonoro Energy Ltd. has completed the previously announced Western Canadian sedimentary basin (WCSB) farm-in agreement, with an arm's-length third party, building the first step of the company's strategy to build a solid base of production and cash flow in the WCSB.

Under the terms of the agreement, Sonoro will be the operator and earn a 70-per-cent working interest in a proven Waseca channel heavy oil resource fairway. In consideration for acquiring the 70-per-cent working interest in this 1,840-acre contiguous land block, Sonoro has committed to finance up to $5-million (on a gross basis) and drill up to five wells with the first well scheduled to spud no later than Sept. 30, 2023. Upon completion of the carry, Sonoro will earn a 70-per-cent working interest in the asset which contains numerous follow-up drilling locations given the pervasiveness of the channel sands. After the carry, further development will be at a 70-per-cent/30-per-cent working interest split between Sonoro and the counterparty, an operating agreement has also been executed between the parties which govern the joint operating procedures. After the final release from the security holder, expected by June 15, 2023, of the counterparty and Sonoro proving it can finance an initial minimum of $2-million by Jul 31, 2023, the farm-in agreement will be deemed closed.

This asset directly offsets an established field which is currently producing over 1,850 barrels per day; having recovered 11 million barrels to date within the same Waseca channel trend. With the company's team's heavy oil experience and established cold heavy oil production systems (CHOPs) which are proven in this area, Sonoro believes it can drill low-risk, low-cost wells and bring on production quickly with area vertical CHOPs type wells IP90 rates of between 60 to 90 bbl/d. A typical newly drilled, completed and equipped heavy oil well is expected to cost less than $750,000 each with payouts estimated to be less than one year under prevailing oil prices and heavy oil differentials. Sonoro has identified the potential for 30 wells to be drilled on 40-acre spacing. Furthermore, given the average 17 metres of net pay within this Waseca channel, there is further upside to down space to 20-acre spacing. The asset will produce heavy oil which is receiving favourable differentials due to various market conditions and is expected to remain as such with new egress and refining options being made available, in combination with lower-than-average operational costs, the company expects robust netbacks for the asset. The company is also in the process of commissioning a third party resource report for the asset that would be National Instrument 51-101 compliant.

Pursuant to the agreement, the counterparty, which holds green technology patents (carbon sequestration and hydrogen generation), upon termination of production, may take over the wellbores and associated liabilities for their patented processes. Hence, Sonoro may not incur any abandonment or reclamation costs associated with the asset.

The team is also pursuing several other WCSB opportunities, and is optimistic that there will be additional assets that the company will have access to and be able to expand the company's WCSB base. With the establishment of the company resource and operating base in the WCSB it will be better positioned to continue to pursue high-impact transformation opportunities internationally as per the strategy announced previously.

Further to the warrant extension press release of May 25, 2023. Sonoro confirms that the TSX-V has approved the extension of seven million warrants at 10 cents until May 30, 2024, however the 5,157,921 warrants priced at seven and 7.5 cents have not been extended and have expired.

Sonoro also announces that 6.4 million incentive stock options have been granted to management and directors, pursuant to the company's stock option plan, at an exercise price of five cents with an expiry date of May 30, 2028, subject to the approval of the TSX Venture Exchange. Following this grant, the company has a total of 10,378,333 stock options outstanding.

We seek Safe Harbor.