Mr. Nick DeMare reports

EAST WEST PETROLEUM PROVIDES UPDATE ON SPECIAL DISTRIBUTION

East West Petroleum Corp. has provided an update with respect to its previously announced return of capital by way of an approximate $2,714,570 reduction in stated capital of the company and related distribution to the holders of common shares of the company of a portion of the company's cash in the amount of three cents per common share.

Further to its news release of Sept. 5, 2025, and in accordance with the special resolution passed by the shareholders, the special distribution will be paid by the company's paying agent, Computershare Investor Services Inc. Each registered shareholder of record on Sept. 15, 2025, will receive a cheque from the paying agent representing their pro rata share of the special distribution on or about Sept. 19, 2025. Beneficial shareholders can expect to receive payment from their intermediaries, each of whom has its own payment process.

The capital reduction and special distribution will be effected by the following series of transactions: (i) the common shares in the capital of the company will be redesignated as Class A common shares and a new class of an unlimited number of common shares of the company designated as common shares will be created; (ii) each issued and outstanding Class A common share will be exchanged for one new common share and a pro rata share of the distribution up to three cents in cash per Class A common share; (iii) a corresponding reduction will be made in the stated capital account maintained by the company in respect of the Class A common shares in an aggregate amount of approximately $2,714,570; and (iv) the Class A common shares will be eliminated as a class. The foregoing deemed steps will be effected without any further action or formality being required on the part of shareholders.

Given that the distribution represents more than 25 per cent of the market value of the company, the TSX Venture Exchange has determined that due-bill trading procedures will apply to the special distribution. Pursuant to such due-bill trading procedures, trades of common shares of the company entered into from the opening of trading on the record date until and including the close of trading on the payment date will have a due bill attached, which will allow the purchaser to receive the distribution instead of the seller. The due bills will be redeemed on Sept. 22, 2025 (the ex distribution date), once all trades with attached due bills entered into up to the close of trading on the payment date have settled. As of the ex distribution date, purchases of common shares will no longer have the attaching entitlement to the special distribution payment.

Further details in respect of the capital reduction and special distribution are available in the management information circular of the company in respect of the special meeting of shareholders held on Sept. 5, 2025, a copy of which is available free of charge under the company's profile on SEDAR+.

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