Mr. Alex Verge reports

JOURNEY ENTERS INTO NEW RELATIONSHIP WITH A CANADIAN CHARTERED BANK TO HELP ACCELERATE FUTURE DUVERNAY DEVELOPMENT

Journey Energy Inc. has entered into a new lending relationship with a Canadian chartered bank.

Journey has secured a new credit facility with a Canadian chartered bank, for up to $55-million consisting of three distinct credit facilities (collectively the new credit facilities). The first facility is a $12.4-million, two-year amortizing term-loan, the proceeds of which have been used to repay the outstanding balance of the Alberta Investment Management Corp. (AIMCo) term debt. Journey would like to express its sincere thanks to AIMCo for its unwavering support since it entered into a lending relationship with it in 2016. Its assistance and flexibility over the years have been instrumental in getting Journey through the difficult COVID and depressed commodity price years, while allowing the company to reset itself by pursuing its new Duvernay light-oil venture. AIMCo is Journey's largest single shareholder. The second facility is a $15-million operating facility to be used for working capital needs on a revolving basis. The third facility is a delayed-draw term facility of a maximum of $27.6-million that will be used as needed to fund Journey's Duvernay development. None of the new credit facilities are subject to prepayment restrictions or penalties. Journey has approximately $42.6-million of combined undrawn capacity on the new credit facilities as of today.

In December of 2024 Journey commenced production from the initial two wells drilled within the Duvernay joint venture with Spartan Delta Corp. (the joint venture). Production from these wells have exceeded management's expectations and the next phase of Duvernay development is under way. In 2025 to date, three (0.9 net) wells have been drilled and two rigs are currently active. All wells are forecast to be finished drilling by early in the second quarter. Completion operations are forecast to begin in April. This investment is expected to provide a significant increase in production and cash flow starting in mid-2025.

The joint venture controls approximately 105 sections of land within the oil window of the Duvernay in the west shale basin. Journey's current working interest in the joint venture is 30 per cent. The new credit facilities, along with internally generated cash flows, provide the means for Journey to continue its transformation to a higher netback company with improving cash flows. Considering the capital phasing requirements for the Duvernay development, these facilities are expected to provide Journey with a clear line of sight to meet its future funding requirements in 2026, and beyond.

Advance notice bylaw and annual general meeting

Journey today announces the approval and adoption by its board of directors of amendments to its bylaws to include advance notice provisions, the purpose of which is to require advance notice to be provided to the company in circumstances where nominations of persons for election to the board are made by shareholders of the company other than pursuant to: (i) a requisition of a meeting of shareholders made pursuant to the provisions of the Business Corporations Act (Alberta); or (ii) a shareholder proposal made pursuant to the provisions of the act.

The purpose of the advance notice provision is to provide shareholders, directors and management of the company with a clear framework for nominating directors. Among other things, the advance notice provision will fix a deadline by which shareholders of the company must submit nominations to the company prior to any annual or special meeting of the shareholders, and sets forth the minimum information that a shareholder must include in the notice to the company for the notice to be in proper written form.

In the case of an annual meeting of shareholders, the notice must be delivered to the company no fewer than 30 days and no more than 65 days prior to the date of the annual meeting (except that, if the annual meeting is called for a date that is less than 50 days after the first public filing or announcement of the date of the annual meeting, the notice must be delivered no more than 10 days after the notice date).

In the case of a special meeting of shareholders (which is not also an annual meeting) called for the purpose of electing directors (whether or not called for other purposes), the notice must be delivered to the company not later than 15 days following the day on which the first public filing or announcement of the date of the special meeting was made.

The advance notice provisions are effective immediately. In accordance with the act, the company will submit the bylaw to its shareholders at the next annual and special meeting to be held on May 22, 2025. The bylaw is also subject to approval by the TSX Exchange, and the company will submit the bylaw to the TSX for its consideration. A copy of the advance notice provision has been filed under the company's profile at SEDAR+.

About Journey Energy Inc.

Journey is a Canadian exploration and production company focused on conventional, 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, 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.