Mr. Charle Gamba reports

CANACOL ENERGY LTD. PRESENTS ITS 2022 ESG REPORT HIGHLIGHTING NEW LONG TERM CLIMATE GOALS OF A 50% REDUCTION IN SCOPE 1 AND 2 EMISSIONS BY 2035, CARBON NEUTRALITY BY 2050, AND ZERO METHANE EMISSIONS BY 2026

Canacol Energy Ltd. has provided information concerning its environmental, social and governance (ESG) strategy and 2022 ESG integrated report.

Charle Gamba, president, and chief executive officer of the corporation, stated: "Canacol acknowledges the crucial role of natural gas in addressing climate change and global challenges. The corporation remains committed to supporting Colombia's objective of achieving a 51-per-cent reduction in emissions by 2030. In line with this commitment, Canacol stands as a leading sustainable natural gas producer in the Americas, with Scope 1 and 2 GHG emission intensities that are more than 50-per-cent lower on average than our gas-focused peers and more than 80-per-cent lower on average than our oil-focused peers in North and South America. Our progress has driven us to the top 10th percentile of upstream oil and gas companies in the CSA SandP assessment, and we have received an A rating from MSCI, affirming Canacol's leadership in ESG. Continuing with our commitment to climate change, we are also pleased to announce that Canacol has set its decarbonization goals, whereby we aim to achieve zero methane emissions by 2026, reduce Scope 1 and 2 emissions by 50 per cent by 2035, and achieve carbon neutrality by 2050."

As the largest independent natural gas exploration and production company in the country, Canacol maintains a prominent role in Colombia's energy transition, offering natural gas as a more environmentally friendly alternative to carbon-intensive energy sources like crude oil and coal. The company believes a natural gas focused portfolio will maximize opportunities and ensure long-term sustainability while delivering enhanced value to shareholders.

Recognizing the significance of incorporating an ESG strategy into the company's business model, Canacol aligns its sustainability practices with its business objectives, key performance indicators and risk management. The corporation emphasizes continuous improvement in its ESG performance, driven by the expectations of shareholders and stakeholders.

The company's 2022 ESG highlights

A cleaner energy future:

• Defined long-term climate goals which include achieving methane neutrality in 2026, reducing Scope 1 and 2 emissions by 50 per cent by 2035, and achieving carbon neutrality by 2050.
• Maintained scope 1 and 2 GHG emissions intensities that are more than 50-per-cent lower on average than gas operators and more than 80-per-cent lower on average than oil operators in the Americas.
• Reduced methane (CH4) emissions by 10 per cent year over year by continuous leak detection and repair procedures, as well as flare efficiency and reductions.
• Recycled 15 per cent of used water and increased the use of recycled water by 53 per cent year over year.
• Maintained commitment to a zero waste certification by 2024.
• No reported hydrocarbon spills.
• Entered an agreement with the Wildlife Conservation Society for reforestation efforts.

Empowering the company's people:

• Became a participating member of the Voluntary Principles on Security and Human Rights Initiative and of the International Petroleum Industry Environmental Conservation Association (IPIECA).
• Being certified as a 2022 Great Place to Work by the Best Places to Work Organization (BPTW).
• Earned the Equipares Silver Award recognition for the corporation's diversity, equity and inclusion (DEI) programs.
• A total of 37 per cent of the total work force and 27 per cent of management positions are held by women.
• Implemented 126 social projects, benefiting 22,300 community members in 13 municipalities.
• No human rights violations since the inception of the company.
• Logged five million work hours with no fatal accidents.
• Purchased 93.4 per cent of all goods and services locally within Colombia.

A transparent and ethical business:

• No breaches of the Code of Business Conduct and Ethics by employees or contractors.
• Executive short- and long-term compensation tied to ESG metrics and performance.
• Suppliers ESG evaluation process and trained 100 per cent of suppliers in the corporation's Code of Conduct and Ethics for contractors and suppliers.
• Information security management system based on ISO 27001.

Canacol's sustainability efforts are guided by a robust set of methodologies and standards. These include adherence to: GRI Oil and Gas G4 Sector Disclosures, Sustainability Accounting Standards Board (SASB), Carbon Disclosure Project (CDP), Task Force on Climate-Related Financial Disclosures (TCFD), SandP Global Corporate Sustainability Assessment (CSA), the United Nations Sustainable Development Goals (SDGs) and IPIECA.

The corporation is committed to generating sustainable value through collaboration, responsibility, respect and transparency, exemplified by its implementation of social investment projects that enhance community infrastructure and educational opportunities. By embracing sustainability leadership and fostering a continuous improvement mindset, Canacol strives to create a sustainable energy future while delivering long term value to its stakeholders.

About Canacol Energy Ltd.

Canacol is a natural gas exploration and production company with operations focused in Colombia. The corporation's common stock trades on the Toronto Stock Exchange, the OTCQX in the United States and the Colombia Stock Exchange under ticker symbol CNE, CNNEF and CNEC, respectively.

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