Mr. Anthony Zelen reports

LONGHORN EXPLORATION ENTERS INTO AGREEMENT TO ACQUIRE PUREWAVE HYDROGEN CORP.

Longhorn Exploration Corp. has entered into non-arm's-length share exchange agreement with PureWave Hydrogen Corp. and each of the shareholders of PureWave Hydrogen dated as of Sept. 26, 2024, pursuant to which the company will acquire all of the issued and outstanding shares of PureWave, a private Colorado-incorporated company that has five natural hydrogen lease agreements in Kansas, United States, covering approximately 892.20 acres. The agreement and the acquisition are subject to the approval of the TSX Venture Exchange.

Highlights:

• 100-per-cent acquisition of PureWave Hydrogen;
• Three-year surplus escrow on all shares issued in connection with the proposed acquisition;
• Five natural hydrogen lease agreements to be owned and controlled by the company in Kansas, United States;
• Technical and operations team from PureWave Hydrogen;
• Pipeline of potential transactions.

The natural hydrogen lease agreements with private landowners (lessees) in Kansas, United States, allow for the prospecting, exploring, drilling and production of any substance, including hydrogen gas from the properties. The natural hydrogen lease agreements are for an initial term of five years and will continue in force so long as drilling operations persist thereafter or if for so long as there is production from the properties. The landowners are entitled to a 12.5-per-cent royalty from any production from the properties.

About PureWave Hydrogen Corp.

PureWave Hydrogen is a Colorado-based company with its mission to pioneer the discovery and development of white (natural) hydrogen resources across North America.

PureWave Hydrogen's vision is that white (natural) hydrogen can fundamentally transform the energy landscape, offering a sustainable alternative to traditional fossil fuels. Its commitment to sustainability and innovation underpins its plans to explore for natural hydrogen deposits in strategic regions of the United States and Canada, including the significant mid-continent rift system. Leveraging state-of-the-art geospatial data and analytical tools, its team is dedicated to identifying high-potential locations for natural hydrogen extraction.

Anthony Zelen, chief executive officer of the company, commented: "The acquisition of PureWave Hydrogen provides Longhorn and PureWave Hydrogen with a linear focus on acquiring and developing natural (white) hydrogen assets. This acquisition will provide Longhorn with increased acreage, a knowledgeable and competent technical team, and a pipeline of potential transactions. We look forward to closing this transaction and advancing the company forward."

Highlights of the proposed acquisition

Pursuant to the agreement, the company has agreed to acquire all of the 17.2 million issued and outstanding PureWave shares (which will represent all of the outstanding securities of PureWave Hydrogen at the time of the closing of the acquisition) from the vendors, and each of the vendors agrees to sell, assign and transfer its respective PureWave shares to the company in consideration for the issuance by the company of 17.2 million common shares of the company to the vendors on a pro rata basis at a deemed price equal to 25 cents per consideration share, such that, immediately following the closing, all of the issued and outstanding PureWave shares will be owned by the company and PureWave Hydrogen will become a wholly owned subsidiary of the company. The consideration shares to be issued pursuant to the agreement will be subject to a three-year surplus escrow.

Upon closing, the company will assume the rights and obligations of PureWave Hydrogen under the natural hydrogen lease agreements.

There can be no assurance that the acquisition will be completed as proposed or at all.

The agreement is subject to the prior acceptance of the exchange, and, if completed, the proposed acquisition will constitute a reviewable transaction for the company pursuant to TSX-V Policy 5.3, Acquisitions and Dispositions of Non-Cash Assets. The acceptance of the exchange will require, among other things, the completion and filing of a National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities, report; shareholder approval by the company; and audited financial statements of PureWave Hydrogen.

The company will seek to obtain disinterested shareholder approval of the acquisition through written consent of a majority of the issued and outstanding shares of the company.

In connection with the closing of the acquisition, there is not expected to be a change of directors or officers.

The agreement is not an arm's-length transaction as such term is defined in TSX-V Policy 1.1 and therefore constituted a related party transaction as such term is defined in Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. Robert Price and Bruce Nurse are directors of the company and also directors of PureWave Hydrogen.

In respect of the requirements of MI 61-101 and TSX-V Policy 5.9, the company relied on the exemptions from the formal valuation and minority approval required under MI 61-101. The company was exempt from the formal valuation requirement of MI 61-101 in reliance of sections 5.5(b) as no securities of the company are listed on the specified markets outlined therein. Additionally, the company was exempt from minority shareholder approval of MI 61-101 in reliance of Section 5.7(1)(a) (fair market value not more than 25 per cent of the company's market capitalization).

No finders' fees or commissions are payable by the company in connection with completion of the acquisition.

Trading in the common shares of the company has been halted in accordance with the policies of the exchange and will remain halted until such time as all required documentation has been filed with and accepted by the exchange and permission to resume trading has been obtained from the exchange.

About Longhorn Exploration Corp.

Longhorn Exploration has the exclusive right and option to acquire PureWave Hydrogen's rights and obligations under lease agreements, located in Kansas, United States, known as the Lily Rock hydrogen project, which allow for the prospecting, exploration, drilling and production of any substance, including hydrogen gas. The company also has an option to acquire a 100-per-cent interest and title to the Fame property located in the Clinton mining division in British Columbia.

We seek Safe Harbor.