Mr. Don Simmons reports

HEMISPHERE ENERGY GRANTS INCENTIVE RESTRICTED SHARE UNITS AND STOCK OPTIONS

Hemisphere Energy Corp.'s board of directors has approved grants of incentive restricted share units and stock options.

Restricted share units

Under the company's restricted share unit plan, RSUs may be granted to directors, employees and contractors of the company. At the discretion of the company's board of directors, the plan permits the company to either redeem RSUs for cash or by issuance of Hemisphere's common shares.

On Dec. 12, 2025, the company awarded 930,000 incentive RSUs to directors and officers of Hemisphere, all of which will vest one-third annually over a three-year period and will expire on Dec. 15, 2028.

Stock options

Additionally, in accordance with the company's stock option plan, Hemisphere granted 48,000 incentive stock options to its investor relations service provider on Dec. 15, 2025, at an exercise price of $2.01 per share, which will vest quarterly over 12 months and expire on Dec. 15, 2030.

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 enhanced oil recovery 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.