An anonymous director reports

NEW ZEALAND ENERGY CORP. DIVIDEND POLICY

New Zealand Energy Corp. has outlined its dividend policy.

New Zealand Energy is in the process of completing its private placement. During discussions with investors, the company has emphasized that it aims to be dividend oriented.

Funds for dividend(s) and also for growth are expected to come from gas production from the Tariki-5 development well, which will be drilled in August/September, 2024. This well is planned to be produced for about 12 months, following which the company intends to convert the Tariki gas field to a gas storage field. As part of the gas storage project, the company anticipates storage customer(s) will prepurchase some of the gas in place.

While dividend payments are at the discretion of the board of directors, in principle, the company will aim to return at least 50 per cent of free cash flow to shareholders while also maintaining a robust balance sheet and meeting all debt obligations.

Good progress has been made with the private placement and the company aims to close the placement fully subscribed on or about April 12, 2024. The private placement is subject to approval of the TSX Venture Exchange.

We seek Safe Harbor.