Mr. Michael Baker reports

NXT ENERGY SOLUTIONS ANNOUNCES THIRD QUARTER 2024 RESULTS

NXT Energy Solutions Inc. has released its financial and operating results for the quarter ended Sept. 30, 2024. All dollar amounts in this news release are in Canadian dollars, unless otherwise identified.

Financial and operating highlights

Key financial and operational highlights during the third quarter of 2024 are summarized below:

• On Sept. 24, 2024, the company announced that it entered into a contract with its strategic partner, Synergy E&P Technologies Ltd., to provide a repeat SFD survey in Africa for an oil and gas exploration company;
• On Aug. 21, 2024, the company entered into a contract to provide a geothermal SFD survey to Alberta Geothermal Resource Recovery Inc.;
• NXT received an advance payment of $175,000 (U.S.) for its upcoming Southeast Asia SFD survey;
• Cash and short-term investments at Sept. 30, 2024, were approximately $940,000;
• Net working capital was approximately negative $2.94-million at Sept. 30, 2024, versus approximately negative $1.85-million at Dec. 31, 2023;
• The company recorded SFD-related revenues of approximately $600,000 YTD (year to date) 2024, nil for Q3 (third quarter) 2024;
• A net loss of $1.48-million was recorded for Q3 2024, including stock-based compensation expense (SBCE), amortization expense and remeasurement gain, all totalling approximately $40,000;
• A net loss of $6.28-million was recorded for YTD 2024, including SBCE, amortization expense and remeasurement loss, all totalling approximately $2.06-million;
• Net loss per common share for Q3 2024 was two cents per share (basic) and two cents per share (diluted);
• Net loss per common share for YTD 2024 was eight cents per share (basic) and eight cents per share (diluted);
• Cash flow used in operating activities was approximately $1.32-million during Q3 2024, compared with $950,000 used in Q3 2023;
• Cash flow used in operating activities was approximately $2.58-million during YTD 2024, compared with $3.36-million used in YTD 2023;
• General and administrative (G&A) expenses increased by approximately $160,000 (19 per cent) in Q3 2024, as compared with Q3 2023;
• G&A expenses increased by approximately $340,000 (13 per cent) in YTD 2024, as compared with YTD 2023.

Key financial and operational highlights occurring subsequent to Q3 2024 are summarized below:

• NXT was awarded an SFD survey by AL-Haj Enterprises Private Ltd. in the northern Suleiman Fold belt, to commence in Q2 (second quarter) 2025;
• NXT's SFD awarded Best Exploration Technology at the 2024 Gulf Energy Information Excellence Awards;
• On Nov. 1, 2024, the company announced it will receive $900,000 (U.S.) (approximately $1,252,080 (Canadian)) for convertible debentures from Ataraxia under the same terms as the subscription agreement signed between Ataraxia and NXT in 2023, at a conversion price of 24 U.S. cents per common share. As of the date of the management's discussion and analysis (MD&A), the company has received $500,000 (U.S.) (approximately $695,600 (Canadian)).

Summary highlights of NXT's third quarter 2024 financial statements (with comparative figures to 2023) are noted in the attached table. All selected and referenced financial information noted in the table should be read in conjunction with the company's Sept. 30, 2024, unaudited condensed interim consolidated financial statements, and the related management's discussion and analysis.

NXT's third quarter 2024 financial and operating results have been filed in Canada on SEDAR+ and will soon be available in the United States on EDGAR, as well as on NXT's website.

About NXT Energy Solutions Inc.

NXT is a Calgary-based technology company, the proprietary airborne SFD survey system of which, applied in numerous basins around the world, uses the principles of quantum mechanics to infer stress anomalies of exploration interest. The method can be used both onshore and offshore to remotely identify areas conducive to fluid entrapment in order to recommend areas with commercial hydrocarbon and/or geothermal potential. The SFD survey system enables the company's clients to focus their exploration decisions concerning land commitments, data acquisition expenditures and prospect prioritization on areas with the greatest potential. SFD is environmentally friendly and unaffected by ground security issues or difficult terrain, and is the registered trademark of NXT. NXT provides its clients with an effective and reliable method to reduce time, costs and risks related to exploration.

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