Mr. Nick Grafton reports

WESTGATE ENERGY INC. ANNOUNCES CLOSING OF BEST-EFFORTS FINANCING

Westgate Energy Inc., further to its news release dated March 11, 2025, has closed its best-efforts financing of units of the company at a price of 15 cents per unit, for aggregate gross proceeds of approximately $2.5-million. The offering was led by Haywood Securities Inc. as the sole agent and bookrunner.

Each unit comprises one common share in the capital of the company and one common share purchase warrant of the company. Each warrant entitles the holder to acquire one common share for an exercise price of 24 cents per share for a period of 24 months from the date of this news release.

Pursuant to the terms of the offering, the company has also granted to the agent an overallotment option to offer for sale up to an additional six million units (up to additional gross proceeds of $900,000), which overallotment option is exercisable for a period of 30 days following the closing of the offering.

In connection with the offering, the agent was paid a cash commission of $137,703.30, which was equal to 7 per cent of the gross proceeds of the offering, subject to a 3-per-cent cash commission paid in respect of certain subscribers on the company's president's list and was issued 918,022 compensation options entitling the agent to purchase up to 918,022 common shares, such number of compensation options being equal to 7 per cent of the number of units sold pursuant to the offering, except for units sold to certain subscribers on the company's president's list, in respect of which the compensation options issued represent 3 per cent of the number of units sold to such president list subscribers. The compensation options have an exercise price per common share equal to the issue price and are exercisable for a period of 24 months following closing of the offering. The agent was also entitled to a corporate finance fee of $350,000, of which two-thirds was paid on closing and, in consideration of additional services to be provided to the company, one-third will be paid over a 90-day period following closing.

The company intends to use the net proceeds from the offering to finance the recently announced acquisition of Mannville-stack-focused assets in east-central Alberta near Frog Lake.

The units were offered in each of the provinces and territories of Canada, other than Quebec, pursuant to a prospectus supplement dated March 13, 2025, to the short form base shelf prospectus of the company filed on Sept. 23, 2024. The units were also offered by way of a private placement in the United States. Copies of the shelf prospectus and the supplement can be found the company's profile on SEDAR+.

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