Dr. David Winter reports

HORIZON PETROLEUM LTD. ANNOUNCES UPSIZE OF CONVERTIBLE DEBENTURE OFFERING UP TO $4 MILLION

Horizon Petroleum Ltd. has provided an update to its press release dated March 27, 2026. Due to increased investor demand, the company has increased its private placement by $1-million, up to a maximum of $4-million in the aggregate principal amount of secured convertible debentures at a price of $1,000 per debenture. The closing date is expected to be on or before April 15, 2026.

The proceeds will pay for: (i) the civil works for the planned re-entry and production testing of the Lachowice 7 gas well this summer; (ii) continuing technical and operational development planning; and (iii) providing working capital for general corporate purposes in Poland and in Canada and for the repayment of existing liabilities.

The debenture bears interest from the applicable issuance date at 7 per cent per annum until the date that is 24 months following the closing date with interest paid semi-annually in arrears in cash or in shares at the company's option. The debenture will be secured and ranking on default in fourth position behind the currently issued debentures due on May 20, 2026 (Series 1 debentures), the convertible debentures due on Dec. 19, 2027, Dec. 29, 2027, and Feb. 27, 2028 (Series 2 debentures), and the convertible debentures due on March 25, 2028 (Series 3 debentures).

Each holder of a debenture unit shall have the right, at its option, at any time up to and including the maturity date, to convert any or all of the debenture units into equity units on the basis of each $1,000 principal amount for: (i) 9,524 common shares of the corporation issued at 10.5 cents per common share; and (ii) 4,762 common share purchase warrants with each warrant exercisable until 36 months from closing the debentures into one common share at a price of 15 cents.

Certain directors and officers of the company are expected to participate in the offering, and, as such, the offering constitutes a related-party transaction under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions) but is otherwise exempt from the formal valuation and minority approval requirements of MI 61-101 by virtue of sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such insider participation. No special committee was established in connection with the offering or the participation of the insiders, and no materially contrary view or abstention was expressed or made by any director of the company in relation thereto. Further details will be included in a material change report that will be filed by the company in connection with the completion of the initial closing of the offering.

The company may pay finders' fees or commissions for this transaction of up to 7 per cent in cash and 7 per cent in warrants.

The offering may close in one or more tranches as subscriptions are received. Closing and the participation of insiders in the offering remain subject to the approval of the TSX Venture Exchange. The closing of the offering is subject to the satisfaction of customary conditions, including the approval of the TSX-V. All securities issued under the offering remain subject to a statutory four-month hold period.

Finally, it would like to correct its press release of Feb. 27, 2026, entitled "Horizon Petroleum Ltd. closes convertible debenture unit offering." The finders' warrants paid on the financing were originally stated to expire on Feb. 28, 2027. The correct expiry date is Feb. 28, 2028.

About Horizon Petroleum Ltd.

Calgary-based Horizon is focused on the appraisal and development of conventional oil and natural gas resources to increase energy independence and security in Europe. Horizon holds two concessions in Poland, which contain significant undeveloped natural gas discoveries. The company's initial focus is to commence development of the Lachowice gas field in the Bielska-Biala concession. The management and board of Horizon consist of oil and natural gas professionals with significant international experience.

We seek Safe Harbor.