Mr. Robert Zakresky reports

COELACANTH ANNOUNCES Q4 2023 FINANCIAL AND OPERATING RESULTS

Coelacanth Energy Inc. has released its financial and operating results for the three months and year ended Dec. 31, 2023.

2023 HIGHLIGHTS

• Drilled five wells on its 5-19 pad at Two Rivers East. Four wells (three Lower Montney and one Basal Montney) were completed in Q4 2023. Combined test production from the three Lower Montney wells was 4,015 boe/d (54 per cent light oil). (2)
• Completed two Upper Montney wells on its 10-08 pad at Two Rivers West and commenced production in Q4 2023. C10-08 was recently re-tested after four months of production at an unrestricted rate of 1,284 boe/d (35 per cent light oil and NGLs). (2)
• Closed a bought-deal public financing in Q4 2023 raising gross proceeds of $80.0 million.
• Exited 2023 with adjusted working capital (2) of $67.6 million.

Financial and operational results below present the carved-out historic financial position, results of operations and cash flows of Leucrotta's Two Rivers Assets for all prior periods up to and including May 31, 2022 and the results of operations from May 31, 2022 forward include the results of Coelacanth after assuming the Two Rivers Assets upon close of the Arrangement.

Selected financial and operational information outlined in this news release should be read in conjunction with Coelacanth's audited financial statements and related Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2023, which are available for review under the Company's profile on SEDAR+ at www.sedarplus.com.

COMMON-CONTROL TRANSACTION

On May 31, 2022, the arrangement agreement between Coelacanth, Leucrotta Exploration Inc. ("Leucrotta"), Vermilion Energy Inc. ("Vermilion"), and the shareholders of Leucrotta (the "Arrangement") closed and Vermilion acquired all of the issued and outstanding common shares of Leucrotta in exchange for $1.73 cash for each common share of Leucrotta held.

Pursuant to an asset conveyance agreement between Coelacanth and Leucrotta made as of May 31, 2022, and immediately prior to the closing of the Arrangement, Leucrotta transferred approximately $45.1 million cash, net of transaction costs, and certain oil and natural gas assets primarily located in the Two Rivers area of British Columbia ("Two Rivers Assets") to Coelacanth in exchange for one common share of Coelacanth ("Coelacanth Share"), and 0.1917 of a common share purchase warrant of Coelacanth (one whole warrant being an "Arrangement Warrant") for each common share of Leucrotta outstanding. The Coelacanth Shares and Arrangement Warrants were then transferred to the shareholders of Leucrotta.

Since the shareholders of Coelacanth and Leucrotta were the same both before and after the conveyance of the Two Rivers Assets (at the time Coelacanth was a wholly-owned subsidiary of Leucrotta), this transaction was deemed a common-control transaction. The financial and operational results below present the historic financial position, results of operations and cash flows of the transferred Two Rivers Assets for all prior periods up to and including May 31, 2022 on a carve-out basis as if they had operated as a stand-alone entity subject to Leucrotta's control. The financial position, results of operations and cash flows from March 24, 2022 (the date of incorporation of Coelacanth) to May 31, 2022 include both the Two Rivers Assets and Coelacanth on a combined basis and from May 31, 2022 forward include the results of Coelacanth after assuming the Two Rivers Assets upon close of the Arrangement.

FINANCINGS

On November 15, 2023, the Company closed a bought-deal public financing through a syndicate of underwriters. The Company issued 100.0 million units of the Company ("Units") at a price of $0.80 per Unit for gross proceeds of $80.0 million. A Unit is comprised of one common share of the Company and 0.33 common share purchase warrants. Each whole common share purchase warrant entitles the holder to purchase one common share at an exercise price of $1.05 per common share expiring on November 15, 2024.

On November 16, 2023, the Company closed a non-brokered private placement to three employees of 1,875,000 units of the Company ("Private Placement Units"), at a price of $0.80 per Private Placement Unit, for aggregate proceeds of $1.5 million. Each Private Placement Unit consists of one common share of the Company and one common share purchase warrant. Each common share purchase warrant entitles the holder to purchase one common share of the Company at a price of $0.80 per share expiring on November 16, 2028.

OPERATIONS UPDATE

Q4 2023 was a busy and productive quarter for Coelacanth in furthering its Two Rivers Montney project that spans over 150 contiguous sections of land. Both Two Rivers East and Two Rivers West had material developments in de-risking the resource and proving productivity via pad development as specifically noted below.

Two Rivers East

Coelacanth successfully completed the 5-19 pad that consisted of three Lower Montney wells and one Basal Montney well. As previously released, test production from the four wells was a combined 4,410 boe/d (55 per cent light oil). (1) Based on the success of the 5-19 pad, Coelacanth is in the process of permitting the required infrastructure and procuring long-lead equipment for an estimated April 2025 start-up for the Two Rivers East facility. Additional 5-19 pad wells have already been licensed and Coelacanth will determine timing of additional drilling once infrastructure is closer to completion.

Two Rivers West

Coelacanth successfully completed the 10-08 pad that consisted of two Upper Montney wells. As previously released, the C10-08 produced at a restricted rate of 542 boe/d for four months and was then re-tested at an unrestricted rate of 1,284 boe/d (35 per cent light oil and NGLs)(1) for a short duration. Facility restrictions on both water and gas handling will limit production from the 10-08 pad until additional pipelines and facilities can be permitted and constructed which will occur after Two Rivers East is constructed at the earliest.

The updated productivity of the C10-08 well is viewed as very material to the long-term value of Coelacanth given the Upper Montney can be mapped over large portions of the existing land base.

We seek Safe Harbor.