Mr. Jeff Chisholm reports

CANASIA ANNOUNCES COMPLETION OF THE SALE OF ANDORA ENERGY CORPORATION

Canasia Energy Corp. has completed the previously announced sale of all of the issued and outstanding shares of Andora Energy Corp. to Logan Oil Corp., a newly formed wholly owned subsidiary of Logan Energy Corp., pursuant to the share purchase agreement between Canasia and the purchaser dated Aug. 14, 2026. The transaction closed on Oct. 30, 2026, following receipt of the approval of the shareholders of Canasia at the annual and special meeting of shareholders held on Oct. 15, 2026, and the satisfaction of other conditions precedent.

At closing of the transaction, Canasia received a cash payment of $29,393,998 from the purchaser, representing a base purchase price of $30-million, as adjusted for estimated net debt and subject to a $2-million holdback pending finalization of the net debt amount. In addition, the purchaser has agreed to pay Canasia an additional amount of $10-million as contingent consideration upon achieving first oil sales from Andora's Sawn Lake project, subject to certain terms and conditions as set forth in the agreement, including, among other things, the installation and commissioning of Andora's produced water boiler at the Sawn Lake project site. In addition to the foregoing, Canasia, the purchaser and Andora entered into a conditional payment agreement, effective as of closing of the transaction, pursuant to which Andora will pay to Canasia certain additional amounts calculated based on the crude oil produced from Andora's Sawn Lake project for up to an aggregate maximum payment of $15-million. Pursuant to the conditional payment agreement, Canasia will be entitled to payments based on the proceeds from production based on the applicable monthly average price of Western Canadian Select crude oil, being nil per cent where the price is $78 and below, 1 per cent where the price is greater than $78 and less than or equal to $88, 2 per cent where the price is greater than $88 and less than or equal to $105, and 3 per cent where the price is greater than $105. The total value of the transaction will be up to $55-million in cash paid to Canasia, assuming satisfaction of the conditions under the contingent consideration and conditional payment agreement.

Canasia intends to distribute an aggregate of approximately $17-million of the consideration that it received from the purchaser to its shareholders on a pro rata basis as a return of capital. At the meeting, the shareholders of Canasia approved the return of capital and authorized the board of directors of Canasia to fix the record date for the purposes of determining shareholders entitled to receive the return of capital and the payment date for the return of capital. Canasia anticipates that the record date and payment date for the return of capital will be set before the end of 2026 and a news release announcing those dates will be issued once confirmed by the board of directors of Canasia.

After giving effect to the payment of the return of capital, Canasia expects to use the remainder of the proceeds from the transaction for general corporate purposes and to finance certain costs and expenditures in connection with the recently announced petroleum concession for Thailand onshore exploration block No. L8/66.

Adviser

Research Capital Corp. has acted as financial adviser to Canasia in connection with the transaction.

About Canasia Energy Corp.

Canasia is a Canadian publicly listed junior oil and gas company focused on the identification, evaluation and advancement of oil and gas exploration and development opportunities, initially in Thailand. Canasia does not currently have producing oil and gas properties or any established source of operating revenue. Its activities to date have consisted primarily of the evaluation and advancement of early-stage oil and gas assets, assessment of strategic alternatives in respect of those assets, and participation in competitive bid processes for oil and gas interests.

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