Mr. Mohammad Fazil reports

BLUE SKY ENTERS INTO LETTER OF AMENDMENT FOR THE PURCHASE OF OIL AND GAS ASSETS IN BC AND ALBERTA AND ENTERS INTO A LETTER OF INTENT FOR SALE OF INDONESIAN AND BELIZE ASSETS

Further to the news release issued on May 13, 2025, Blue Sky Global Energy Corp. has provided an update on its transactions with Blue Sky Resources Ltd., which is a non-arm's-length party to the company.

British Columbia and Alberta assets

Blue Sky Global has entered into a non-binding letter of amendment (LOA) dated June 17, 2025, for the following transactions:

• The acquisition of the remaining 50-per-cent working interest in certain oil and gas assets, located in northeastern British Columbia, same as previously disclosed in the news release issued on May 13, 2025;
• The acquisition of the following oil and gas properties in the province of Alberta:
  1. Increased the acquisition of the Utikuma assets from a 50-per-cent working interest (as previously announced in the news release issued on May 13, 2025) to a 100-per-cent working interest;
  2. The acquisition of a 100-per-cent working interest in the Taber properties, located near the town of Taber -- 51 active wells producing approximately 140 barrels of oil per day (bopd) of light oil;
  3. 100-per-cent working interest in the Columbia properties, which are located east of Edmonton -- 43 active wells producing approximately three million cubic feet per day (mmcfd) plus 80 bopd of liquids;
  4. The acquisition of the remaining 50-per-cent working interest in certain heavy oil and gas assets, located in the Cold Lake area, made up of approximately 384 hectares (representing a 100-per-cent interest) prospective for the exploration of heavy oil. Blue Sky Global announced the purchase of the first 50-per-cent interest in a news release dated Aug. 6, 2024.

The total purchase price of the acquisition has increased from $19-million to $23-million and will be paid in cash to Blue Sky Resources, subject to the completion of financing and other customary conditions. Should Blue Sky Global be unable to obtain financing for the purchase of the acquisition, Blue Sky Resources shall then provide a vendor takeback loan at closing. The loan shall be for a two-year term with interest of 10 per cent payable per annum. The purchase price was negotiated between the directors of Blue Sky Global and Blue Sky Resources, and is based off an independent reserves report.

Belize and Indonesian assets

Blue Sky Global has entered into a non-binding letter of intent (LOI), dated June 17, 2025, with an arm's-length party for the sale of its Belize and Indonesian assets. The arm's-length party will acquire from Blue Sky Global its wholly owned subsidiaries as follows:

1. Fire Creek (Barbados) Ltd., which, through its wholly owned subsidiary, FCRL Belize Ltd., holds the production sharing agreement issued by the government of Belize, on Jan. 28, 2020;
2. Blue Sky Paus Ltd., which holds the production sharing contract issued by the government of Indonesia, on Feb. 27, 2023.

The purchaser will pay Blue Sky Global $500,000 cash within 90 days after the closing date and shall sign a promissory note to reflect the amount owed to Blue Sky Global. In addition, Blue Sky Global shall retain a 3-per-cent gross over riding royalty on the Belize and Indonesia assets. The royalty interest shall be documented by Blue Sky Resources' lawyer and signed by both parties on the closing date.

Terms and conditions

The acquisition is subject to shareholder approval(s) as required, 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.

Blue Sky Resources is controlled by a control person and insider of Blue Sky Global and thus Blue Sky Resources is a related party to the company. The acquisition is expected to be subject to Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, and Blue Sky Resources is considered a non-arm's-length party pursuant to the policies of the TSX Venture Exchange. As a result, closing of the acquisition is subject to, among other things: (i) absent exemptions, formal valuation and minority shareholder approval pursuant to MI 61-101; and (ii) the approval of the TSX-V.

Trading in the common shares of the company has been halted, and will remain halted, pending review and approval of the acquisition by the TSX-V.

No finders' fees are to be paid in connection with the acquisition.

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 eastern Natuna, Indonesia. In Belize, the company has a production sharing agreement 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.

We seek Safe Harbor.