Mr. Jeff Chisholm reports

CANASIA ENERGY CORP. 2025 SECOND QUARTER FINANCIAL & OPERATING RESULTS

Canasia Energy Corp. has released its 2025 second quarter consolidated financial and operating results.

The company is today filing its unaudited consolidated financial statements as at and for the six months ended June 30, 2025, and the related management's discussion and analysis (MD&A) with Canadian securities regulatory authorities. Copies of these documents may be obtained on-line on SEDAR+ or the company's website.

Commenting today on Canasia's 2025 second quarter results, president and chief executive officer Jeff Chisholm stated: "Canasia is working with financial advisors in connection with a process to explore and evaluate alternatives to divest of all or a portion of its interests in the Sawn Lake, Alta., heavy oil project held through its wholly owned subsidiary, Andora. As part of this process, Canasia is undertaking a comprehensive review to identify and consider a broad range of alternatives to enhance shareholder value through the potential divestment of all or a portion of its interests in Sawn Lake, including, but not limited to, a sale of Andora or a strategic farmout or joint venture with respect to Sawn Lake. In response to initial market outreach, a number of parties have engaged in preliminary discussions with Canasia and are currently evaluating a potential transaction with respect to Sawn Lake. However, Canasia has not established a definitive timeline to complete this process and there can be no assurance that it will result in any specific transaction.

"Further, under the guidelines of the 2025 onshore Thailand 25th oil and gas licensing round, Canasia submitted a bid on concession L8, as part of a consortium and with a non-operated 30-per-cent working interest. It is anticipated winning parties with be notified by the government of Thailand by the first quarter of 2026.

"We look forward with anticipation to events over the next six months."

Highlights:

• In July, 2025, the company, as part of a consortium, submitted a bid to the government of Thailand for one concession with a non-operated 30-per-cent participating interest pursuant to the onshore Thailand 25th licensing round for a contract to explore for, develop, produce and market oil or gas, in the exploration block onshore Thailand. The company expects that the government of Thailand will announce awards of concessions in the first quarter of 2026.
• Canasia had working capital totalling $1.5-million, no long-term debt and shareholders' equity of $6.4-million at June 30, 2025.
• Common shares outstanding were 112.8 million at Aug. 12, 2025, June 30, 2025, and Dec. 31, 2024.
• Net loss in the second quarter of 2025 was $900,000 (one cent per share), compared with a net income of $3.3-million (three cents per share) in the second quarter of 2024. Income in the second quarter of 2024 included a partial reversal of impairment of exploration and evaluation assets related to the Sawn Lake working interest by an amount of $4.2-million.
• Cash flow used in operations in the second quarter of 2025 was $500,000 (nil per share), compared with $800,000 (one cent per share) in the second quarter of 2024.
• General and administrative expense in the second quarter of 2025 was $500,000, compared with $600,000 in the second quarter of 2024. General and administrative expense comprises primarily of expenses related to personnel and premises, external services, and public company costs:
  • Personnel and premises costs were $200,000 in the second quarter of 2025, compared with $300,000 in the second quarter of 2024. These costs include salaries and benefits for employees, and fees incurred for consultants. They also include rent and other office costs related to the company's Calgary office.
  • External service costs were $200,000 in the second quarter of 2025 and 2024. These costs mainly related to professional fees for legal, audit, tax services and information technology.
  • Public company costs were $100,000 in the second quarter of 2025 and 2024. These costs were incurred for maintaining the company's status as a public company, and mainly related to shareholder reporting and meeting, TSX-V fees, transfer agent, insurance and directors' fees.
• Operating expenses were $200,000 in the second quarter of 2025 and 2024. These expenses were incurred to safeguard and maintain the assets of Andora Energy Corp.'s suspended SAGD (steam-assisted gravity drainage) project facility and wellpair at Sawn Lake Central.
• The natural gas pipeline tariff agreement, which was entered into between Andora and a third party in 2018, with a commencement date of June 1, 2023, was recognized as an onerous contract under IAS 37 since the operation at Sawn Lake is shut in. The company has recognized a provision of $1.0-million, representing the net cost of fulfilling the contract, as at June 30, 2025.
• The current portion of the decommissioning provision of $600,000 as at June 30, 2025, was related to the legacy subsidiaries of POEH, which had held interests in the East Jabung production sharing contract in Indonesia and a well pertaining to Andora's interests in Sawn Lake, Alta. Canasia is withdrawing from activities in Indonesia and decommissioning related costs are expensed when incurred. The non-current portion of the decommissioning provision of $1.7-million as at June 30, 2025, pertained to Andora's interests in Sawn Lake, Alta.

Outlook

Canasia is working with financial advisers in connection with a process to explore and evaluate alternatives to divest of all or a portion of its interests in the Sawn Lake, Alta., heavy oil project, held through its wholly owned subsidiary, Andora. As part of the process, Canasia is undertaking a comprehensive review to identify and consider a broad range of alternatives to enhance shareholder value through the potential divestment of all or a portion of its interests in the project, including, but not limited to, a sale of Andora or a strategic farmout or joint venture with respect to the project. In response to initial market outreach, a number of parties have engaged in preliminary discussions with Canasia and are currently evaluating a potential transaction with respect to the project. However, Canasia has not established a definitive timeline to complete the process and there can be no assurance that the process will result in any specific transaction.

Under the guidelines of the 2025 onshore Thailand 25th oil and gas licensing round, Canasia submitted a bid on concession L8, as part of a consortium and with a non-operated 30-per-cent working interest. It is anticipated winning parties with be notified by the government of Thailand by the first quarter of 2026.

We seek Safe Harbor.