Mr. Mohammad Fazil reports

BLUE SKY ENTERS INTO LETTER OF INTENT FOR THE PURCHASE OF OIL AND GAS ASSETS IN BC AND ALBERTA

Blue Sky Global Energy Corp. has entered into a letter of intent (LOI) dated May 6, 2025, with Blue Sky Resources Ltd. (BSR), a non-arm's-length party, for the acquisition of the remaining 50-per-cent interest in certain oil and gas assets, located in northeastern British Columbia, and a 50-per-cent interest in certain oil and gas assets, located in Alberta. The total purchase price is $19-million, subject to the completion of financing and other customary conditions.

B.C. assets

Under the terms of the LOI, Blue Sky Global will acquire the remaining 50-per-cent working interest in the B.C. assets, bringing its total ownership to 100 per cent. Blue Sky Global will also assume operatorship of the assets. The company previously acquired the initial 50-per-cent interest in these assets, as announced in the news release dated May 28, 2024.

Alberta assets overview

The Alberta assets comprise high-quality, light oil properties characterized by the following highlights:

• Multizone production from 64 wells;
• 97 per cent light sweet oil, with an API gravity of 38 to 41;
• Currently production of approximately 130 barrels of oil equivalent per day (boepd), predominantly from the Keg River and Gilwood formations;
• Approximately 14,000 net continuous acres;
• Strong seismic coverage across the asset base;
• Established infrastructure with significant excess oil handling capacity.

Terms and conditions

The acquisition is subject to standard due diligence procedures, as well as customary representations, warranties and closing conditions. The transaction remains subject to the approval of the TSX Venture Exchange and the successful completion of financing by Blue Sky Global.

About Blue Sky Global Energy Corp.

The company is a publicly traded entity listed on the TSX-V under the symbol BGE with oil and assets in Canada, Indonesia and Belize. Blue Sky Global holds a 50-per-cent non-operated interest in producing assets in northeastern British Columbia. The company holds a production sharing contract over the Paus block with an area of approximately 8,214 square kilometres, located offshore East Natuna, Indonesia. In Belize, the company has a production sharing agreement (PSA) with the government of Belize, comprising approximately 180,000 acres of land in the Corozal basin, which may hold prospective oil and gas resources, and which so far includes on discovery the SBC field.

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