Mr. Kevin Johnson reports

GEAR ENERGY LTD. ANNOUNCES SHAREHOLDER APPROVAL FOR PLAN OF ARRANGEMENT

At Gear Energy Ltd.'s special meeting of the holders of common shares of Gear, the Gear shareholders passed a special resolution approving a plan of arrangement under Section 193 of the Business Corporations Act (Alberta), pursuant to which a large publicly traded company will acquire all of the issued and outstanding Gear shares, including all of Gear's heavy oil assets (other than its Tucker Lake property), and Gear will transfer all of Gear's other property and assets, which includes its light oil assets in central Alberta and southeast Saskatchewan and its heavy oil assets in Tucker Lake, to a newly formed entity, Lotus Creek Exploration Inc., which will be owned by the former Gear shareholders following the closing of the arrangement. The arrangement resolution was required to be approved by at least 66.66 per cent of the votes cast by Gear shareholders, either in person or represented by proxy, at the meeting. The arrangement resolution was approved by 82.024 per cent of the votes cast by Gear shareholders, either in person or by represented by proxy, at the meeting.

Gear is also pleased to announce that today at the meeting, the Gear shareholders passed an ordinary resolution approving the share option plan of Lotus Creek and an ordinary resolution approving the shareholder protection rights plan agreement for Lotus Creek.

For details of the voting results on each of the matters considered at the meeting, see Gear's report of voting results filed pursuant to Section 11.3 of National Instrument 51-102 -- Continuous Disclosure Obligations on its profile on SEDAR+. Final approval from the Court of King's Bench of Alberta for the arrangement is expected to occur on Feb. 4, 2025, and closing of the arrangement is expected to occur on or about Feb. 5, 2025.

We seek Safe Harbor.