Mr. James Willis reports

NEW ZEALAND ENERGY CORP. CLOSES FINAL TRANCHE OF PRIVATE PLACEMENT

New Zealand Energy Corp., further to its Oct. 24, 2023, Nov. 23, 2023, and Dec. 12, 2023, news releases, has completed the closing of the final tranche of the previously announced non-brokered private placement offering of common shares of the company. Pursuant to the final tranche, the company issued 582,163 common shares at a price of 38 cents per common share for gross proceeds of $221,222. Pursuant to all tranches of the private placement, the corporation received total gross proceeds of $2.28-million. All securities issued in connection with the final tranche of the private placement are subject to a hold period that expires on April 30, 2024. As previously announced, the company intends to use the proceeds from the private placement to procure long lead items for the Tariki-5 well and to finance working capital.

Vliet Techniek BV, a company wholly owned by Frank Jacobs, a director of New Zealand Energy, subscribed for 582,163 common shares under the final tranche of the private placement. Prior to the closing of the final tranche of the private placement, Vliet owned 1.51 million common shares, or approximately 19.51 per cent of the issued and outstanding common shares, which were acquired pursuant to the closing of the first tranche of the private placement on Dec. 12, 2023. Vliet now owns 2,092,163 common shares, or approximately 25.14 per cent of the issued and outstanding common shares. The acquisition of the common shares by Vliet was made for investment purposes. Vliet may increase or decrease its investment in New Zealand Energy depending on market conditions or any other relevant factors. The head office address for New Zealand Energy is Level 6, 59 High St., Auckland, New Zealand. The address for Vliet is Steenbergen, the Netherlands.

Shareholder approval for Vliet to become a new control person (as defined in the policies of the TSX Venture Exchange) of the company was obtained at the annual general and special shareholders meeting held on Dec. 29, 2023.

The private placement is a related party transaction for the purposes of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101. New Zealand Energy has determined that exemptions from the various requirements of the related party policies are available in connection with the private placement (formal valuation -- issuer not listed on specified markets; minority approval -- fair market value not more than $2.5-million).

We seek Safe Harbor.