Dr. David Winter reports

HORIZON PETROLEUM PROPOSES DEBT SETTLEMENT IN SHARES

Horizon Petroleum Ltd. is proposing to settle certain outstanding debt to management, fees to directors and third party invoices for an aggregate amount of $524,000 in exchange for shares of the company at a price of 17.5 cents per common share. The price was the closing price of Horizon's common shares on July 15. The insider debt transaction amounts were a result of deferred salaries of $365,000 since September, 2024, and for director fees in the amount of $25,000 per each of the four independent directors.

Shares for management remuneration owing, director fees and third party invoices

Since September, 2024, the company has accrued management salaries to conserve capital while the company advanced the development of its Polish concessions. Management has agreed to settle the outstanding fees and be paid in shares. Furthermore, this aligns management with shareholders and demonstrates their commitment to the company and their belief in the long-term value potential of Horizon and the development of the Lachowice gas field in Poland.

The company will settle the outstanding and accrued management compensation in the amount of $365,000, director fees in the amount of $100,000 in aggregate and third party invoices owing in the amount of $59,000 in aggregate, through the issuance of an aggregate of 2,994,286 common shares, at a price of 17.5 cents per common share. The debt settlement is subject to disinterested shareholder approval to be sought at the shareholder meeting to be held on, or about, July 28, 2026.

The common shares will be subject to a four-month-and-one-day hold period from the date of issuance in accordance with applicable securities laws. The transactions contemplated under the debt settlement agreements are subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including that of the TSX Venture Exchange.

The participation of directors and officers in the insider debt transaction constitutes related-party transactions of the company for purposes of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company is relying on the exemptions from the formal valuation and minority approval requirements found in sections 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of insider debt transaction (as it relates to the insiders' participation) is not more than 25 per cent of the company's market capitalization.

Approval requirement

Following initial discussions with the TSX Venture Exchange, the company has been advised that disinterested shareholder approval is required for the insider debt transaction. As such, the company intends to seek shareholder approval at a shareholder meeting to be held on, or about, July 28, 2026.

About Horizon Petroleum Ltd.

Calgary-based Horizon is focused on the appraisal and development of natural gas reserves and clean energy sources to increase energy independence and security in Europe. The management and board of Horizon consist of oil and gas, business, and finance professionals with significant international experience.

We seek Safe Harbor.