Mr. David Winter reports

HORIZON PETROLEUM LTD. ANNOUNCES A SHARE CONSOLIDATION AND PROVIDES A CORPORATE UPDATE

Horizon Petroleum Ltd.'s directors have approved a consolidation of its common shares on the basis of one new common share for every existing five common shares, subject to regulatory approval, including approval of the TSX Venture Exchange. Management believes that the consolidation is necessary to provide the company with a share structure that will better attract capital financing and that will provide for future growth as the company executes its European gas strategy and planned gas development in Poland. This consolidation was approved by the company's shareholders at its annual general and special meeting of the shareholders on June 8, 2023.

Effective on or about Nov. 30, 2023, Horizon Petroleum will complete the consolidation. Where the exchange results in a fractional share, the number of common shares will be rounded up to the next greater whole number of common shares. A new Cusip number of 44053J409 replaces the old Cusip number of 44053J201 to distinguish between the pre and postconsolidated shares. The company's name and trading symbol will remain unchanged.

The consolidation is being conducted on a pushout basis. Shareholders of the company without a physical share certificate do not need to take any action with respect to the consolidation. Direct registration system statements for the postconsolidation common shares will be mailed on or about Dec. 5, 2023. Shareholders of the company with physical share certificates should send their physical share certificate to the addresses below to receive a postconsolidation share certificate.

By mail

Computershare Investor Services Inc.,

PO box 7021,

31 Adelaide St. East,

Toronto, Ont., M5C 3H2,

Attention: corporate actions

By registered mail, hand or courier

Computershare Investor Services Inc.,

Eighth floor, 100 University Ave.,

Toronto, Ont., M5J 2Y1,

Attention: corporate actions

Commencing at the opening of trading on or about Nov. 30, 2023, the common shares of the company will trade on a postconsolidation basis on the TSX Venture Exchange. Prior to the consolidation, there are 118,930,676 preconsolidation shares outstanding. Following the consolidation, there are expected to be 23,786,135 postconsolidation shares outstanding.

Corporate update

Further to the press release dated Aug. 23, 2023, Horizon Petroleum has been informed that the transformation process is expected to be completed in first quarter 2024 and the Bielska-Biala and Cieszyn concessions converted to the new dual concession granting exploration/appraisal, as well as exploitation rights to hydrocarbons. With completion, the company will initiate its plans and commence operations to develop the Lachowice gas discovery.

The Lachowice gas development project within the Bielska-Biala concession has been independently evaluated to contain gross probable reserves of 34 billion cubic feet of natural gas with 262,000 barrels of condensate as well as 2C gross risked contingent resources of 164 bcf and over 1,200 Mbbl of condensate.

The transformation process is fully described in the annual financial statements and management's discussion and analysis, but in summary, a transformation of the concessions to the new Polish concession laws implements amendments to Poland's geological and mining laws allowing the company's to expand its rights to exploration/appraisal, as well as exploitation of hydrocarbons. The transformation process had been initiated by Horizon Petroleum's predecessor company in Poland, San Leon Energy, and had been stalled during the COVID pandemic.

The company continues to evaluate a number of natural gas production and development merger-and-acquisition opportunities in Europe with a goal to establish a production and cash flow base to provide financing for development activities. It will update shareholders in due course.

We seek Safe Harbor.