Mr. Gabriel Obrador reports

CROWN POINT ANNOUNCES ACQUISITION OF EXPLOITATION CONCESSIONS IN CHUBUT, ARGENTINA

Crown Point Energy Inc.'s wholly owned subsidiary, Crown Point Energia S.A., has entered into agreements with Tecpetrol S.A. dated June 4, 2025, YPF S.A. (YPF) dated June 4, 2025 and Pampa Energia S.A. (Pampa, and collectively, the sellers) dated June 3, 2025, each of which is an arm's-length party, to acquire all of the sellers' right, title and interest in the El Tordillo, La Tapera and Puesto Quiroga hydrocarbons exploitation concessions (the Chubut concessions) and certain related infrastructure.

Acquired assets

The company will acquire from the sellers a 95-per-cent operated interest in the Chubut concessions, which are located in the Chubut province on the northern flank of the Golfo San Jorge basin approximately 40 kilometres west of Comodoro Rivadavia.

This acquisition represents an excellent opportunity for the company to acquire a 95-per-cent operated interest in producing crude oil assets in Argentina with an average daily production level of approximately 5,449 boe/d (barrels of oil equivalent per day) during the four-month period ended April 30, 2025, comprising 4,252 bbl/d (barrels per day) of light and medium crude oil and 7,179 mcf/d (thousand cubic feet per day) of natural gas.

The Chubut concessions, comprising a total of 113,325 acres, include company owned pipeline and other infrastructure. In addition, Crown Point will also acquire 4.2 per cent of the issued and outstanding shares of Terminales Maritimas Patagonicas S.A. (TerMaP S.A.), which operates an offshore loading facility through which crude oil from the Chubut Concessions is transported for sale to the domestic or export markets.

The base purchase price payable by Crown Point to the sellers is approximately $57.9-million (U.S.) in cash, subject to customary closing adjustments, plus contingent consideration of up to $3.5-million (U.S.) in cash. The contingent consideration is payable to Pampa following the closing date based on monthly average natural gas sales at Pampa's working interest up to 1,000 mcf/d, multiplied by the days in the month multiplied by $2.80 (U.S.) mmBTU (one million British thermal units), with payments continuing until the earlier of the expiration of Pampa's working interest in the Chubut concessions and total payments aggregating $3.5-million (U.S.).

The assets being acquired from each seller and related purchase price is set forth in the attached table.

Acquisition agreements

Completion of the acquisitions is subject to, among other things, the receipt of all necessary regulatory and provincial approvals, including the approval of the TSX Venture Exchange, and other customary closing conditions. Completion of the acquisitions is not subject to approval by the company's shareholders. The acquisition of assets from Pampa is expected to close in June, 2025, and the effective date of the acquisition will be the same as the closing date. The acquisition of assets from Tecpetrol and YPF is expected to close in the third quarter of 2025 and will have an effective date of Dec. 1, 2024. There are no finders' fees payable by Crown Point in connection with the acquisitions.

On June 5, 2025, the common shares of the company were halted pending review of the acquisition agreements pursuant to TSX-V Policy 5.3 -- Acquisitions and Dispositions of Non-Cash Assets (Policy 5.3) as the matters contemplated by the acquisition agreements are considered to be reviewable transactions under Policy 5.3. Trading of the common shares will remain halted pending receipt by the TSX-V of acceptable documentation pursuant to Policy 5.3.

About Crown Point Energy Inc.

Crown Point is an international oil and gas exploration and development company headquartered in Buenos Aires, Argentina, incorporated in Canada, trading on the TSX Venture Exchange and operating in Argentina. Crown Point's exploration and development activities are focused in four producing basins in Argentina, the Golfo San Jorge basin in the province of Santa Cruz, the Austral basin in the province of Tierra del Fuego, and the Neuquen and Cuyo (or Cuyana) basins in the province of Mendoza. Crown Point has a strategy that focuses on establishing a portfolio of producing properties, plus production enhancement and exploration opportunities, to provide a basis for future growth.

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