Mr. Jeff Chisholm reports

CANASIA ENERGY ANNOUNCES UPSIZE OF BROKERED FINANCING TO $6.3 MILLION

Canasia Energy Corp., in connection with its previously announced brokered private placement offering on Dec. 4, 2023, has upsized its offering from $4-million to up to $6.3-million in common shares of the company at an issue price of 10 cents per share. The offering is being led by Research Capital Corp. as the sole agent and sole book runner on a best-efforts basis. As a result of the upsized offering, the previously announced agent's option to increase the size of the offering by up $600,000 no longer applies.

As previously announced, Canasia officers and directors have advised Canasia of their intention to participate in the offering by purchasing accredited investor shares (as defined below) alongside investors in the offering.

Canasia intends to use the net proceeds from the offering, combined with Canasia's previously available working capital, primarily for international new ventures, focused initially on Thailand, and general corporate purposes.

It is anticipated that an onshore Thailand licensing round will be announced within the first quarter of 2024. Canasia intends to participate as part of a consortium alongside a strategic partnership with a leading integrated resource and technical service provider to the energy sector, with upstream to downstream operations, which the company's management team has previously established a strong relationship. No assurance can be given that Canasia's bid will be successful.

The closing of the offering is expected to occur on or about Dec. 20, 2023, or such other date or dates as Canasia and the agent may agree. The outstanding Canasia shares are listed and posted for trading on the TSX Venture Exchange under the trading symbol CEC. Canasia will apply to list the shares distributed under the offering on the TSX-V. Listing will be subject to Canasia fulfilling all the listing requirements of the TSX-V.

Pursuant to the offering, 24 million shares will be offered to purchasers in Canada (other than in Quebec) under the listed issuer financing exemption (LIFE) and up to 39 million shares will be offered to accredited investors under the accredited investor exemption. An amended and restated offering document relating to the LIFE shares will be filed by Canasia, and will be available under Canasia's profile at SEDAR+ and on its website. Prospective purchasers of LIFE shares should read the amended and restated offering document before making an investment decision. The first trade of LIFE shares will not be subject to any hold period or other resale restrictions (subject to limited exceptions). Unless permitted under securities legislation, the accredited investor shares cannot be traded before four months and a day after the closing date.

Canasia will pay to the agent a cash commission of 6 per cent of the aggregate gross proceeds of the offering, other than for sales to certain president's list purchasers identified by Canasia, for which a 3-per-cent cash commission will be payable. Canasia will also issue to the agent non-transferable broker warrants equal to 6 per cent of the number of shares sold under the offering, other than shares sold to president's list purchasers. Each broker warrant will entitle the agent to purchase one share at an exercise price of 10 cents until 24 months after the closing date. The underlying accredited investor shares of the broker warrants cannot be traded before four months and a day after the closing date.

About Canasia Energy Corp.

Canasia is a Calgary, Alta.-based oil and gas company with operations in Western Canada. Canasia continues to consider international oil and gas concessions, including Thailand. Canasia's management and directors have almost 20 years of oil exploration and development experience in Thailand through Canasia's predecessor company, Pan Orient Energy Corp.

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