Mr. Don Simmons reports

HEMISPHERE ENERGY DECLARES SPECIAL DIVIDEND

Hemisphere Energy Corp.'s board of directors has approved the declaration of a special dividend to shareholders.

Special dividend

Given the strong financial position and performance outlook of the company, Hemisphere's board of directors has approved the declaration of a special dividend of three cents per common share in accordance with its dividend policy. The special dividend will be paid on Aug. 15, 2025, to shareholders of record on July 31, 2025, and is designated as an eligible dividend for Canadian income tax purposes. It is in addition to the company's quarterly base dividend of 2.5 cents per common share and is the company's second special dividend payment in 2025.

Hemisphere remains committed to delivering value to its shareholders, having already returned a total of $12.2-million (13 cents per common share) to date in 2025, including $4.5-million in share repurchases and cancellations under the company's normal course issuer bid, $4.8-million in quarterly dividend payments, and $2.9-million in special dividends. This return of capital is financed entirely by the company's free cash flow, and is supported by Hemisphere's high-margin enhanced oil recovery assets, ultralow production decline and healthy balance sheet.

About Hemisphere Energy Corp.

Hemisphere is a dividend-paying Canadian oil company focused on maximizing value-per-share growth with the sustainable development of its high-netback, ultralow-decline conventional heavy oil assets through polymer flood EOR methods. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol HME and on the OTCQX Venture Marketplace under the symbol HMENF.

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