Mr. Alex Verge reports

JOURNEY ENERGY INC. ANNOUNCES $38 MILLION "BOUGHT DEAL" PRIVATE PLACEMENT OFFERING

Journey Energy Inc. has entered into an agreement with Echelon Wealth Partners Inc. pursuant to which the underwriter has agreed to purchase, on a bought deal, private placement basis, 38,000 senior unsecured convertible debentures of the company at a price of $1,000 per convertible debenture for total gross proceeds of $38-million. The offering is to be led by a group of strategic United States institutional investors.

Each convertible debenture shall be convertible into common shares of the company at a price of $5.00 per share for a period of five years following the closing date (as defined herein). The convertible debentures will bear interest at a rate of 10.25 per cent per annum payable semi-annually in arrears on March 31 and Sept. 30 in each year commencing Sept. 30, 2024.

The convertible debentures will be direct, senior unsecured obligations of the company ranking pari passu with all other current and future senior unsecured debt and other liabilities of the company, effectively subordinated to all current and future secured debt and other liabilities of the company to the extent of the assets securing such debt and other liabilities and senior to any future debt of the company that is expressly subordinated to the convertible debentures. The convertible debentures will not be guaranteed by any subsidiary of the company and will be structurally subordinated to all current and future liabilities of the company's subsidiaries, including trade payables.

The company intends to use the net proceeds of the offering to reduce existing indebtedness, finance its 2024 capital development program, and for working capital and general corporate purposes.

The convertible debentures will be sold to: (i) to investors in each of the provinces of Canada, excluding Quebec on a private placement basis; (ii) qualified institutional buyers in the United States pursuant to Rule 144A; and (iii) investors resident in jurisdictions outside of Canada and the United States to the extent mutually agreed to by the company and the underwriters, in each case in accordance with all applicable laws provided that no prospectus, registration statement or similar disclosure document is required to be filed in such foreign jurisdiction.

The offering is expected to close on or about March 20, 2024, or such other date as the company and the underwriters may agree (the closing date), and is subject to customary closing conditions, including the approval of the securities regulatory authorities and the Toronto Stock Exchange.

About Journey Energy Inc.

Journey is a Canadian exploration and production company focused on oil-weighted operations in Western Canada. Journey's strategy is to grow its production base by drilling on its existing core lands, implementing water flood projects and by executing on accretive acquisitions. Journey seeks to optimize its legacy oil pools on existing lands through the application of best practices in horizontal drilling and, where feasible, with water floods.

We seek Safe Harbor.