Mr. Jim Hill reports

MCF ENERGY ACQUIRES ACCRETIVE CZECH GAS PROJECTS WITH IMMEDIATE PRODUCTION AND GROWTH POTENTIAL

MCF Energy Ltd. has agreed to acquire oil and gas production and exploration licences in the Czech Republic, which hold valuable reserves, offer immediate production opportunities and have potential for further exploration to strengthen Europe's energy security. Located in the Vienna Basin of Czechia within the Carpathian Mountains, the Acquisition consists of three production licences covering 6,880 acres (27.8 sq km), and three exploration licences covering 42,551.5 acres (172.2 sq km).

"This acquisition was driven by the opportunity to quickly start natural gas production by reopening three closed wells and using fifteen ready-to-drill sites in the NT Ridge area," said James Hill, CEO and a Director of MCF Energy Ltd. "The main advantage of this project is the potential to boost production by shallow, low-cost drilling of nearby areas with available pipeline capacity."

Immediate Production Potential

• The production licences are NT Ridge (2,800 acres or 11.3 sq km), Krasna NP-823 (497 acres or 11.3 sq km), and LM (3,583 acres or 14.5 sq km).
• There are two proved and productive targets, the Miocene sands and Devonian carbonates. Significant untested potential exists in the oil-productive fractured basement.
• MCF Energy anticipates returning one currently shut-in production well at NT Ridge to production in Q1 2024. Five additional development locations at NT Ridge and one Proved Undeveloped drilling location are ready to drill this year. At least three additional drilling locations are contemplated in 2025.
• Additional Proved Undeveloped locations are present within the production licences. Krasna NP 823 and the LM Production licences are currently under review; both have wells that can be reworked and returned to production at low cost.
• Independent Reserve Report
• An Independent Reserve report by Boury Global Energy Consultants (the "Report") reviewed the NT Ridge area which is located about 28 km southeast of Ostrava, the third largest city in the Czech Republic. Reviewing the geology, the Report confirmed 15 Proved Undeveloped locations for development having an estimated 11.9 BCF of Proved and Probable reserves within the NT Ridge area. The Report gives an estimated Net Present Value before tax (discounted at 10%) for the Proved and Probable reserves of US$53.55 million for the NT Ridge area. The two other production concessions, Krasna NP and LM, are not included in the Report and represent significant additional upside for MCF Energy shareholders.

Exploration Upside

The exploration licences are Skalice-Ropice (North) (11,712.8 acres or 47.4 sq km), Moravka (South) (14,801.6 acres or 59.9 sq. km) and Trinec (North-East) (16,037.1 acres or 61.9 sq km).

MCF Energy will continue the exploration work started by the previous operator, using improved technology. The Company anticipates developing the Skalice-Ropice (North) exploration licence by drilling four wells in 2025 and five wells in 2026 and one in 2027. Nine of these locations have Proved Undeveloped plus Probable plus Possible reserves, and one is assigned Probable plus Possible reserves. Drilling will test for proved Miocene and Devonian reservoirs and could prove four potential 'bonus' zones could lead to significantly increased inventory of drilling locations and reserves across the acreage. These potential zones, not evaluated by the Report, include thicker Miocene sands, shallow Silesian reservoirs, thicker Devonian carbonates, and fractured basement targets which have shown to produce oil in other production concessions.

Transaction Details

With the Acquisition, the Company will gain full ownership of the Czech licences. This involves issuing 17.5 million MCF Energy shares to the seller, with resale limits, and a cash payment of US$1,325,000. The 17.5 million consideration shares are subject to voluntary pooling restrictions with releases over a period of 12 months. Additionally, 350,000 shares will go to Fiore Management & Advisory Corp for their advisory services, which shares are subject to a four month hold period from closing.

Third Source Energy S.R.O. ("Manager"), familiar with local operations, will manage the Czech assets from its office in Prague. Third Source is wholly controlled by Sean Pearson, an energy executive with an 18-year track record of success in resource management and production growth, most recently with TBNG UK (Turkish assets), and previously with DeGolyer & MacNaughton, Aramco and CNRL. The Manager's compensation includes a set fee of US$48,000 per month in cash, and cash bonuses, based on performance up to a maximum of US$595,000. In addition, the Manager will be granted a net profit royalty from successful wells varying between 10% and 2.5% for seven years, and a flat 2.5% thereafter. If, by the later of 24 months from closing, or fiscal year end 2025, less than US$3.7 million has been deployed in connection with MCF's assets or operations in the Czech Republic, the royalty gets extended one year before reverting to a flat 2.5%. If after 36 months less than US$3.7 million has been deployed, the Manager shall have the option to purchase 50% of the working interest in certain lands for US$370,000.

The Czech assets will be part of MCF Energy Czechia Ltd., a fully owned subsidiary of MCF Energy Ltd.

MCF Energy invites all stakeholders, including shareholders, employees, and the general public, to stay updated on the Company's progress and its role in Europe's energy future, through its corporate website and social media.

About MCF Energy

MCF Energy was established in 2022 by leading energy executives to strengthen Europe's energy security through responsible exploration and development of natural gas resources within the region. The Company has secured interests in several significant natural gas exploration projects in Austria and Germany with additional concession applications pending. MCF Energy is also evaluating additional opportunities throughout Europe. The Company's leaders have extensive experience in the European energy sector and are working to develop a cleaner, cheaper, and more secure natural gas industry as a transition to renewable energy sources. MCF Energy is a publicly traded company (TSX.V: MCF; FRA: DC6; OTCQX: MCFNF) and headquartered in Vancouver, British Columbia. For further information, please visit: www.mcfenergy.com.

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