Mr. Lonn Bate reports

HIGH ARCTIC PROVIDES UPDATE ON PREVIOUSLY ANNOUNCED REORGANIZATION

High Arctic Energy Services Inc. has provided an update on the previously announced reorganization of High Arctic to separate the corporation's North American and Papua New Guinean businesses by way of a court-approved plan of arrangement between the corporation and High Arctic Overseas Holdings Corp. (SpinCo). Although the corporation has been working toward completion of the arrangement by July 31, 2024, as previously announced, it is not yet in a position to do so.

The arrangement was approved by shareholders, along with a distribution of 76 cents per share to its shareholders by way of return of capital and other matters, at the annual general and special meeting held on June 17, 2024. On June 27, 2024, the Court of King's Bench of Alberta granted its final order approving of the arrangement, and the return of capital was distributed to shareholders on July 17, 2024. The corporation has received conditional approval from the Toronto Stock Exchange for the listing of the new High Arctic common shares to be issued concurrently with completion of the arrangement. It is a condition of closing of the arrangement (which condition may be waived by the corporation) that the TSX Venture Exchange or another acceptable stock exchange approve the listing of the common shares of SpinCo to be issued concurrently with the closing of the arrangement.

The corporation remains engaged with the TSX-V and expects to receive conditional approval from the TSX-V for the initial listing of the SpinCo common shares. The arrangement and the listing of the new High Arctic common shares remain subject to the final approval of the TSX.

As at the closing of the arrangement, each shareholder will receive one-quarter of one SpinCo common share and one-quarter of one new High Arctic common share for each current common share of High Arctic.

The corporation will continue to update shareholders and other interested parties on the progress toward approval from the TSX-V for the initial listing of SpinCo common shares and the completion of the arrangement.

For more information on the arrangement and the return of capital, please see the management information circular of the corporation dated May 9, 2024, and news releases dated May 11, 2024, May 21, 2024, May 29, 2024, June 12, 2024, June 18, 2024, June 27, 2024, and June 28, 2024, available on the corporation's SEDAR+ profile.

About High Arctic Energy Services Inc

High Arctic is an energy service provider. High Arctic is a market leader in Papua New Guinea providing drilling and specialized well completion services and supplies rental equipment, including rig matting, camps, material handling and drilling support equipment. In Western Canada, High Arctic provides pressure control and equipment supporting the high-pressure stimulation of oil and gas wells on a rental basis to exploration and production companies from its bases in Whitecourt and Red Deer, Alta.

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