Mr. Jeff Chisholm reports

CANASIA ENERGY ANNOUNCES CLOSING OF SECOND AND FINAL TRANCHE OF ITS PREVIOUSLY ANNOUNCED BROKERED FINANCING FOR TOTAL OF $6,300,000

Canasia Energy Corp. has closed the second tranche of its brokered private placement offering previously announced on Dec. 4, Dec. 13 and Dec. 21, 2023. A total of 12.58 million common shares of the company were issued today at an issue price of 10 cents per share for additional aggregate gross proceeds of $1,258,000. The offering was fully subscribed; 63 million shares were issued in two tranches to raise aggregate gross proceeds of $6.3-million. The offering was led by Research Capital Corp. as the sole agent and sole bookrunner.

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 a Canasia bid will be successful.

Pursuant to the second tranche, 1.58 million shares (LIFE shares) were issued under the listed issuer financing exemption and 11 million shares (accredited investor 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.

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 6.0 per cent of the aggregate gross proceeds of the second tranche, other than for sales to certain president's list purchasers identified by Canasia, for which a 3.0-per-cent cash fee was paid, and for sales directly by Canasia to certain other purchasers. Canasia also issued to the agent 24,600 non-transferable broker warrants equal to 6.0 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 $70,000 in cash and 670,200 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.

Canasia's chief executive officer and two directors participated in the offering by purchasing an aggregate of 17 million shares in the two tranches. They held an aggregate of 7.0 per cent of Canasia's issued and outstanding shares before the offering and now hold an aggregate of 18.1 per cent of the shares. (That aspect of the offering was a related party transaction under Multilateral Instrument 61-101 and was exempt from a formal valuation by Paragraph 5.5(b) of MI 61-101 [Issuer Not Listed on Specified Markets] and Paragraph 5.5(c) of MI 61-101 [Distribution of Securities for Cash] and exempt from minority approval by Paragraph 5.7(1)(b) of MI 61-101 [Fair Market Value Not More Than $2,500,000 - Distribution of Securities for Cash].) In addition, a new shareholder, Risco Energy Investments (SEA) Ltd. of Singapore, participated in both tranches of the offering and now owns 20 million shares (17.7 per cent).

About Canasia Energy Corp.

Canasia is a Calgary, Alberta-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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