Dr. David Winter reports

HORIZON PETROLEUM LTD. ANNOUNCES NON-BROKERED PLACEMENT OF UNITS

Horizon Petroleum Ltd. intends to complete a non-brokered private placement of up to 10 million units in the capital of Horizon at a price of five cents per unit for gross proceeds of up to $500,000, subject to approval from the TSX Venture Exchange. Each unit will consist of one common share and one common share purchase warrant in the capital of the company. Each warrant will entitle the holder to purchase one common share at a price of 7.5 cents for a period of 12 months from the date of issuance.

In connection with the offering, certain insiders are expected to purchase units in the offering. Each of the insiders is a related party of Horizon, and, as a result, the offering will be a related-party transaction for the purposes of Multilateral Instrument 61-101 -- Protection of Minority Shareholders in Special Transactions (MI 61-101).

The company intends to rely on exemptions from the formal valuation and minority approval requirements of sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such insider participation, based on a determination that fair market value of the participation in the offering by insiders will not exceed 25 per cent of the market capitalization of Horizon, as determined in accordance with MI 61-101.

In connection with the offering, Horizon may pay finder's fees of up to 7 per cent cash and up to 7 per cent convertible securities, or a combination of both, as permitted by the policies of the TSX-V.

The proposed use of proceeds of the offering will be for initial costs to complete the Poland transformation process and for working capital purposes.

Corporate update

As previously disclosed by a press release dated Aug. 24, 2023, Horizon submitted the required documentation to complete the transformation process in Poland. The submission was made through the company's two wholly owned subsidiary companies in Poland, and were submitted for the ministry's review, feedback and, if satisfactory, approval. The Bielska Biala concession contains the Lachowice gas discovery and development area.

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 is required by the Polish government as a result of the implementation of amendments to Poland's geological and mining laws. The transformation process had been initiated by Horizon's predecessor company in Poland, San Leon Energy, and had been stalled during the COVID pandemic.

The Ministry of the Environment in Poland has completed its initial review of the documentation and has requested additional information. The company is providing the additional information to the ministry and continues to expect the transformation process to be completed in Q1 2024. Although the company has no reason to believe otherwise, there is no assurance the transformation process will be successful or that the conditions imposed on the company will be attainable.

The company continues to evaluate a number of natural gas production and development M&A (merger and acquisition) opportunities in Europe and nearby regions, with a goal to establish a production and cash flow base to provide financing for development activities. The company will update shareholders in due course.

About Horizon Petroleum Ltd.

Calgary-based Horizon is focused on the appraisal and development of natural gas reserves and clean energy sources to increase energy independence and security in Europe. The management and board of Horizon consist of oil and gas, business, and finance professionals with significant international experience.

We seek Safe Harbor.