Mr. Todd Durkee reports

CGX ENERGY ANNOUNCES FILING OF SECOND QUARTER 2023 FINANCIAL STATEMENTS

CGX Energy Inc. has released its unaudited consolidated financial statements for the second quarter of 2023, together with its management's discussion and analysis -- quarterly highlights. These financial disclosures will be posted on the company's website and on SEDAR+. All values in the financial disclosures are in U.S. dollars unless otherwise stated.

In addition, CGX Energy and Frontera Energy Corp., joint venture partners in the petroleum prospecting licence for the Corentyne block, offshore Guyana, announce that following the safe and successful completion of Wei-1 well drilling operations (see press releases dated June 28, 2023, and June 13, 2023), the joint venture has entered into an agreement to amend the joint operating agreement originally signed between CGX Energy and a subsidiary of Frontera on Jan. 30, 2019, and subsequently amended on July 21, 2022, whereby Frontera will effectively be farming into the Corentyne block to cover the unexpected additional costs of the Wei-1 well due to delays associated with the late release of the rig by a third party, costs associated with a lost sampling tool and the drilling of the bypass well. The agreement remains subject to regulatory approvals, including approval of the TSX Venture Exchange.

As part of the agreement, CGX Energy will transfer up to 4.7 per cent of its participating interest in the Corentyne block to Frontera in exchange for Frontera financing CGX Energy's additional expected outstanding share of the joint venture's costs associated with the Wei-1 well for up to approximately $16.5-million. As a result of this agreement, if the maximum amount is transferred by CGX Energy, the company will have a 27.3-per-cent participating interest, and Frontera will have a 72.7-per-cent participating interest in the Corentyne block.

The transactions described herein between Frontera and CGX Energy are related-party transactions under Multilateral Instrument 61-101 but are exempt from the obligations to obtain a formal valuation and approval from a minority of shareholders as the company will be relying on the exemptions under Section 5.5(b) and 5.7(l)(e) of MI 61-101. The material change report to be filed by CGX Energy in connection with this news release will contain the required disclosure regarding such exemptions and the formal valuation for the Corentyne block obtained by CGX Energy.

About CGX Energy Inc.

CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname basin and the development of a deepwater port in Berbice, Guyana.

We seek Safe Harbor.