Mr. Jeff Chisholm reports

CANASIA ENERGY ANNOUNCES CLOSING OF FIRST TRANCHE OF ITS PREVIOUSLY ANNOUNCED BROKERED FINANCING FOR $5,042,000

Canasia Energy Corp. has closed the first tranche of its brokered private placement offering previously announced on Dec. 4 and 13, 2023. A total of 50.42 million common shares of the company were issued today at an issue price of 10 cents per share for aggregate gross proceeds of $5,042,000. A second and final tranche of the offering for additional gross proceeds of $1,258,000 is expected to occur in the first part of January, 2024, once certain regulatory approvals have been received. The offering is being led by Research Capital Corp. as the sole agent and sole bookrunner.

Canasia intends to use the net proceeds from the first tranche, 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 with. No assurance can be given that a Canasia bid will be successful.

Pursuant to the first tranche, 22.42 million shares were issued under the listed issuer financing exemption and 28 million shares were issued under the accredited investor exemption. 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 date hereof.

Canasia's chief executive officer and three directors participated in the offering by purchasing an aggregate of 18 million shares. They held an aggregate of 7.8 per cent of Canasia's issued and outstanding shares before the offering and will hold an aggregate of 19.4 per cent of the shares on completion of both tranches of the offering.

The outstanding Canasia common shares are listed and posted for trading on the TSX Venture Exchange under the trading symbol CEC. The TSX-V has conditionally approved the listing of the shares. Listing is subject to Canasia fulfilling all of the requirements of the TSX-V.

Canasia paid to the agent a cash commission of 6 per cent of the aggregate gross proceeds of the first tranche, other than for sales to certain president's list purchasers identified by Canasia, for which a 3-per-cent cash fee was paid, and for sales directly by Canasia to certain other purchasers. Canasia also issued to the agent 1,225,200 non-transferable broker warrants equal to 6 per cent of the number of shares sold through the agent under the offering, other than shares sold to president's list purchasers. In addition, the company paid the agent an advisory fee of $91,500 in cash and 600,000 broker warrants. Each broker warrant will entitle the agent to purchase one share at an exercise price of 10 cents until 24 months after the date hereof. The underlying accredited investor shares of the broker warrants cannot be traded before four months and a day after the date hereof.

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.

We seek Safe Harbor.