Mr. David Tawil reports

CENTAURUS ENERGY ADOPTS ETHER AS PRIMARY TREASURY RESERVE ASSET

Centaurus Energy Inc. and its board of directors have declared the company's new capital allocation strategy, focused on the Ether cryptocurrency (ETH), the native asset of the Ethereum blockchain. Related to this strategy, David D. Tawil, chief executive officer of Centaurus, has entered into an agreement to extend up to $1.5-million (U.S.) to Centaurus.

Ether as primary treasury reserve asset

A commodity-focused enterprise since inception, Centaurus has a 25-year history of mining, valuing and trading physical commodities. Now, the company will broaden its scope to digital commodities, specifically, Ether.

Mr. Tawil, chief executive officer of Centaurus, said: "Centaurus Energy is announcing a capital allocation strategy that reflects a new direction in its commitment to capital stewardship. Centaurus will benefit from its passive royalty interest in the Coiron Amargo Sur Este petroleum block, located in the province of Neuquen, Argentina, over the next 15 years, which will largely result in excess cash. We have reduced our expense base to a minimum. And we are confident that we can manage our day-to-day business with a modest amount of operating cash. Accordingly, we believe it is appropriate to invest in assets with potentially higher returns than holding cash."

In addition to having served as Centaurus's CEO since 2020, Mr. Tawil has been the president and co-founder of ProChain Capital, a multistrategy cryptoassets hedge fund, since 2017.

Centaurus began purchasing Ether on March 26.

Capital investment

In connection with its new strategy, Mr. Tawil, CEO of Centaurus, has entered into a loan agreement with the company, providing up to $1.5-million (U.S.) of capital, at the greater of:(i) 7 per cent per annum or (ii) 65 per cent of the profits on the corresponding Ether purchased by the company.

"Our investment in Ether is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders in Canada and in the United States," said Mr. Tawil, CEO of Centaurus Energy. "This investment reflects our belief that Ether, as the world's most valuable cryptocurrency of a public blockchain powering 'smart contracts' and DApps (decentralized applications), serving as the epicentre for DeFi (decentralized finance), NFTs (non-fungible tokens) and securities tokenization efforts by some of the largest asset management firms globally, is an attractive investment asset with more long-term appreciation potential than holding cash. Since its launch in 2015, Ethereum has emerged as a significant addition to the global financial system, with characteristics that are potentially useful to both individuals and institutions, and could revolutionize property ownership recording and transfers, including real property, personal property, contractual rights and financial products, banking and value-transfer, and creative works. Centaurus has recognized Ether as a legitimate investment asset that can be superior to cash and accordingly has made Ether the principal holding in its treasury reserve strategy."

Inclusive of its investment in Ether, Centaurus will consider opportunities to earn yield on the Ether that it owns, including the depositing of Ether into staking pools or liquidity pools.

In considering various commodities for potential investment, Centaurus observed distinctive properties of Ether that led it to believe investing in the cryptocurrency would provide the prospect of earning a higher return than other investments. Mr. Tawil articulated the opinion, "We find the global acceptance, energy-efficiency, self-deflationary monetary policy and consistent upgrade of network software of Ether to be persuasive evidence of its superiority as a commodity for those seeking meaningful long-term returns."

Related party transaction

As Mr. Tawil is CEO of the company, he is considered a related party for the purposes of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. Accordingly, the Tawil loan is a related party transaction. The Tawil loan was obtained by Centaurus on reasonable commercial terms that are not less advantageous to Centaurus than if the Tawil loan were obtained from a person dealing at arm's length with Centaurus and the Tawil loan has no equity or voting component. The Tawil loan is not subject to minority approval or formal valuation.

Continuous disclosure obligation

The company's new capital allocation strategy is a material change for purposes of National Instrument 51-102 -- Continuous Disclosure Obligations.

About Centaurus Energy Inc.

The company is an independent Canadian company that has been focused on Argentine upstream oil and gas with operations until January, 2023. As mentioned in its management and discussion analysis for the third quarter of 2023, the company is currently focused on managing the future proceeds from the sale of the company's interests in certain exploitation projects based in Argentina referred to as PAE ORRI in its continuous disclosure documents, totalling $16-million (U.S.), which may include investment in new endeavors and/or capital returns. The company's shares trade on the TSX Venture Exchange under the symbol CTA and on the OTC Pink Market under the symbol CTARF.

We seek Safe Harbor.