Mr. Mohammad Fazil reports

BLUE SKY ENTERS INTO AN AGREEMENT FOR PURCHASE AND SALE FOR THE PURCHASE OF OIL AND GAS ASSETS IN BC AND ALBERTA AND SALE OF INDONESIAN AND BELIZE ASSETS

Further to the news releases issued on June 18, 2025, and May 13, 2025, Blue Sky Global Energy Corp. has signed an agreement for purchase and sale for the acquisition of oil and gas assets in British Columbia and Alberta with Blue Sky Resources Ltd., which is a non-arm's-length party to the company, and an agreement for purchase and sale for the sale of its Belize and Indonesian assets to Kinara Resources Ltd., which is an arm's-length party to the company.

British Columbia and Alberta assets

Blue Sky Global has entered into an agreement for purchase and sale (PSA), dated June 26, 2025, for the following transactions:

1. 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;
2. The acquisition of the following oil and gas properties in the province of Alberta:
   1. 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;
   2. 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;
   3. 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.

Acquisition of the Utikuma assets, located in Alberta, will no longer be part of the purchase transaction and are not included in the PSA.

As a result of the removal of the Utikuma from the assets being purchased, the total purchase price of the acquisition has decreased from $23-million to $21-million and, as announced previously, the purchase price will be paid in cash at closing to Blue Sky Resources, subject to the completion of financing and other customary conditions.

Blue Sky Global expects to complete a debt financing in order to fulfill payment of the purchase price. Further details of this debt financing will be disclosed in a subsequent new release once details of the financing are finalized. Should Blue Sky Global be unable to obtain funding 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. The reserves report for the B.C. assets is for the year ending Dec. 31, 2024, and is available on SEDAR+. The reserves reports for the Alberta assets, for the year ended Dec. 31, 2023, are not available on SEDAR+.

Belize and Indonesian assets

The company has entered into an agreement for purchase and sale, dated June 26, 2025, 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 the company. In addition, the company shall retain a 3-per-cent gross overriding royalty on the Belize and Indonesia assets. The royalty interest shall be documented by the company's lawyer and signed by both parties on the closing date.

Terms and conditions

The acquisition is subject to shareholder approvals 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 the Chaudhary Trust dated Sept. 5, 2013, 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-V. 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 East 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.