Mr. Don Simmons reports

HEMISPHERE ENERGY COMMENCES SOUTHERN ALBERTA DRILL PROGRAM

Hemisphere Energy Corp. has provided an update on its drilling and field operations.

The company has continued to see operational and water flood success through the first two quarters of 2018, with stable field production rates for the month of June, 2018, to date estimated at 1,090 barrels of oil equivalent per day (97 per cent oil). This represents an 80-per-cent increase over Hemisphere's 2017 annual production rate. With a solid oil-weighted production base and available financial resources, the company has recently begun its largest drilling program in corporate history.

Hemisphere is planning to drill up to 11 wells at Atlee Buffalo over the next three months as well as expand both the Upper Mannville G and F pool batteries to provide additional capacity for continued oil production growth. Remaining capital expenditures for 2018 are forecast to be $13.5-million, with projected 2018 exit production rates of over 1,800 boe/d (97 per cent oil). Hemisphere will continue to monitor commodity prices closely through this program in order to maintain financial flexibility with market changes.

"For Hemisphere, the question isn't how much oil there is in the ground, but simply how much, and how fast, we can recover it through water flood," says Don Simmons, president and chief executive officer of Hemisphere. "There are several examples of similar pools within two townships of Hemisphere's land that have reached recoveries as high as 40 per cent of oil in place through enhanced oil recovery. We believe that we have barely scratched the surface in Atlee Buffalo at only 4-per-cent recovery to date and with only 12-per-cent recovery represented in our reserve valuation. We finally have the market, the money, and the momentum to develop this conventional play and we are thrilled to have kicked off our most meaningful drilling program yet."

Management is excited to share results from its drilling program as they become available, with the first wells expected to be on production before the end of July, 2018.

Hemisphere's annual general and special meeting of shareholders is being held at the Oceanic Plaza, 1035 West Pender St., Vancouver, B.C., on June 22, 2018, at 9:30 a.m. PT.

About Hemisphere Energy Corp.

Hemisphere Energy is a producing oil and gas company focused on developing low-risk conventional oil assets for minimal capital exposure through developing known pools of oil and optimizing waterflood projects. Hemisphere plans continual growth in production, reserves and cash flow by drilling existing projects and executing strategic acquisitions.

We seek Safe Harbor.