Mr. David Winter reports

HORIZON PETROLEUM LTD. CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT AND ANNOUNCES FURTHER EXTENSION OF NON-BROKERED PLACEMENT OF UNITS

Horizon Petroleum Ltd. has now closed the first tranche private placement of units announced on Jan. 2, 2024. The company has also received TSX Venture Exchange approval to extend the closing of its non-brokered private placement from March 1, 2024, to March 15, 2024.

The company issued 3.1 million units at a price of five cents for gross proceeds of $155,000. The units comprised: (i) one common share in the capital of the company; and (ii) one transferable share purchase warrant entitling the holder thereof to acquire one common share at a price of 7.5 cents per share. The rights under the warrants will last for a period of 12 months following the closing date.

The private placement remains subject to TSX Venture Exchange final acceptance.

Horizon paid a finder's fee to PI Financial Corp. of $1,050 cash and broker warrants to acquire 21,000 common shares at a price of 7.5 cents per share for a period of 12 months from closing.

Insider participation

Insiders participated in the placement for a total of approximately $40,000. A portion of the private placement constituted a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101, as an insider of the company subscribed for an aggregate of 62,500 units pursuant to the private placement. The company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(1)(a) of MI 61- 101, as the fair market value of the participation in the private placement by the insider does not exceed 25 per cent of the market capitalization of the company, as determined in accordance with MI 61-101. The company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the private placement, which the company deems reasonable in the circumstances in order to complete the private placement in an expeditious manner.

All securities issued in connection with the private placement will not be able to be traded in Canada or through the facilities of the TSX Venture Exchange for a period of four months and one day from the date of closing.

We seek Safe Harbor.