Mr. Jim Hill reports

MCF ENERGY ANNOUNCES INCREASE IN NONBROKERED PRIVATE PLACEMENT

MCF Energy Ltd. has increased the size of its fully subscribed financing previously announced on July 3, 2024, from $2.5-million to up to $4.4-million. The offering, as amended, will consist of up to 29,333,333 units at a price of 15 cents per unit. Each unit will consist of one common share and one full common share purchase warrant, with each warrant entitling the holder to acquire an additional common share at an exercise price of 16 cents for a period of 24 months from the date of issuance.

In connection with the offering, the company may pay finders' fees of up to 6.0 per cent of the gross proceeds raised by the company from the sale of units to subscribers directly introduced to the company by eligible finders. In addition, the company may issue to eligible finders non-transferable finders' warrants of up to 6.0 per cent of the number of units sold in the offering. Each finder's warrant will entitle the holder to acquire one share at a price of 16 cents per share for a period of 24 months from the date of issuance.

The company intends to use the net proceeds from the offering for working capital and general corporate purposes.

The company also announces that it has agreed to settle outstanding debt owed by the company to various creditors in the aggregate amount of $1,566,788.02. The debt will be settled through the issuance of an aggregate of 10,445,254 units, at a deemed price of 15 cents per debt unit. Each debt unit will consist of one common share and one full common share purchase warrant, with each warrant entitling the holder to acquire an additional common share at an exercise price of 16 cents for a period of 24 months from the date of issuance. The company is choosing to settle the debt through the issuance of the debt units to preserve cash and improve the company's balance sheet.

It is anticipated that several of the directors of the company may participate in the private placement and, as such, any issuance of units pursuant to the private placement to such directors will constitute a related party transaction within the meaning of the Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, and Policy 5.9 of the TSX Venture Exchange. The company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value of the units nor the consideration for such units exceeds 25 per cent of the company's market capitalization.

Closing of the private placement and the debt settlement transaction are subject to approval of the TSX-V and completion of final documentation. The securities to be issued under the private placement and debt settlement transaction are subject to a four-month hold period from the date of the issuance.

About MCF Energy Ltd.

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 and headquartered in Vancouver, B.C.

We seek Safe Harbor.