Mr. Jay Lyons reports

ORCA EXPLORATION ANNOUNCES REPURCHASE OF OUTSTANDING SHARES IN PAE PANAFRICAN ENERGY CORPORATION

Further to the announcement by Swala Oil & Gas (Tanzania) PLC (Swala TZ) on April 3, 2023, which resolved that Swala TZ be placed into involuntary liquidation, Orca Energy Group Inc. has repurchased the 7.9 per cent (7,933 Class A common shares) shares in the company's subsidiary PAE PanAfrican Energy Corp. (PAEM), currently held by Swala (PAEM) Ltd. (in administration) (Swala U.K.), for $7.5-million (U.S.).

Orca sold the 7.9 per cent (7,933 Class A common shares) of PAEM to Swala U.K., a wholly owned subsidiary of Swala TZ, in 2018 for $21.02-million (U.S.) combining $17.1-million (U.S.) cash and $4-million (U.S.) of Swala TZ's preference shares pursuant to an investment agreement made as of 2017. The $4-million due to Orca by way of preference share redemptions from Swala TZ remains outstanding; however, Orca has submitted a notice of claim to the Tanzanian liquidators. The company continues to investigate all legal remedies available to it following the allegations Swala TZ made about Orca and its conduct, which the company continues to strongly refute.

Jay Lyons, chief executive officer, commented:

"I am pleased to announce the successful repurchasing of Orca's outstanding stake in PAEM from the administrators of Swala (PAEM) Ltd. for $7.5-million. The reinstatement of Orca's 100-per-cent interest in the Songo Songo gas field will enable the company to focus on managing, optimizing and further developing the asset for the benefit of all stakeholders."

About Orca Energy Group Inc.

Orca is an international public company engaged in natural gas exploration, development and supply in Tanzania through its subsidiary PanAfrican Energy Tanzania Ltd. Orca trades on the TSX Venture Exchange under the trading symbols ORC.A and ORC.B.

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