Mr. Don Simmons reports

HEMISPHERE ENERGY PROVIDES INSURANCE CLAIM AND OPERATIONS UPDATES

Hemisphere Energy Corp. has provided an update on its insurance claim related to the previously reported fire at its Atlee G pool battery and the restoration of operations at Atlee Buffalo.

Hemisphere has begun to receive funds from its insurance providers for an approved $15-million lump-sum interim payment toward its property damage and business interruption insurance claim in relation to the previously announced fire at its Atlee G pool battery.

Reconstruction activities at Atlee are well under way, keeping the company on schedule to restart partial production from the G pool before the end of November. Electrical power has been restored to the site, additional tankage has been procured and one treater has been purchased to date. Additional equipment required to restore full capacity is still being sourced.

As production and polymer injection are brought back on-line, management anticipates a ramp-up period before returning to previous production levels. The company remains on track to resume normal operations at its Atlee G pool by the end of the first quarter of 2027.

Based on field estimates for the month of October, corporate production has averaged just over 1,000 boe/d (barrels of oil equivalent per day) (99-per-cent heavy oil). This includes production from the company's two new Marsden Colony wells, which continue to produce at a combined rate of approximately 200 boe/d (100-per-cent heavy oil).

The Hemisphere team extends its sincere appreciation to shareholders for their continued support, and to all field staff and contractors for their hard work and dedication as the company rebuilds its facility and works toward restoring production.

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, low-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.

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