Mr. Shawn Mehler reports

PROSPERA ENERGY INC. ANNOUNCES LOW DILUTIVE DEVELOPMENT CAPITAL RAISE

Prospera Energy Inc. has drilled five horizontal wells of the multiwell infill horizontal development program. Two horizontal wells have commenced production, and the remaining three horizontal wells will commence production in the subsequent weeks. Currently, Prospera gross production levels are 800 barrels of oil equivalent per day with 400 boe/d behind pipe to accommodate development. Over the next month, Prospera is expected to attain gross production level of 1,500 boe/d from behind-the-pipe production resumption and the additional production from the new horizontal wells. The new horizontal wells will be brought on strategically in a gentle way to accommodate the heavier viscous oil to achieve steady flow peak rates over the next few months.

The horizontal infill drilling program will resume in the next few weeks to allow for lease preparations and access. Due to the efficient collaboration of services and results encountered, Prospera has elected to continue beyond the current 10-well program. Prospera will continue the horizontal infill drilling transformation from vertical wells through the winter to next year's breakup. The quick turnaround to bring this specific horizontal production on-line allows Prospera to capitalize on the current high Western Canadian Select price of $90-plus per barrel. Therefore, low dilutive capital raise is proposed to continue the drilling that will add significant incremental production to capture substantial recoverable reserves. Furthermore, medium oil development will also commence concurrently.

Capital raise

Prospera hereby announces that it is undertaking a non-brokered private placement of debt financing. A total of up to $3-million will be raised offering holders' interest of 14 per cent per annum, with interest payments to be made quarterly for a term of two years. In addition to interest, holders will receive one common share for each dollar of principal advanced, at the time of investment. The company has already received multiple lead orders of $1-million-plus toward this offering.

Prospera's strategic evaluation suggests equity values are not appropriately accounting for the future potential of its asset value. Thus, the company is focused on minimal dilution financing options, and if fully subscribed, this debt financing would contribute to less than 1-per-cent equity dilution to the company.

Parties interested in participating in this debt offering should contact the company immediately. Insiders may participate in this offering. Prospera is relying upon exemptions contained in Multilateral Instrument 61-101 from the requirements for an independent evaluation and minority shareholder approval. This offering is subject to approval from the TSX Venture Exchange.

About Prospera Energy Inc.

Prospera (TSX Venture Exchange: PEI, OTC: GXRFF and Frankfurt Stock Exchange: OF6B) is a publicly traded energy company based in Western Canada, specializing in the exploration, development and production of crude oil and natural gas. Prospera has announced a mid-August spud of Prospera's phase 2 restructured development program intended to increase production. The phase 2 development entails the drilling of 10 horizontal wells in heavy oil and eight slanted wells in medium to light oil to accelerate growth and capture the significant remaining reserves (400 million barrels). These horizontal laterals and slanted wells will allow Prospera to increase production by approximately 1,000 barrels per day with recovery of approximately 100,000 stock tank barrels per well. Prospera will reduce its environmental and surface footprint by eliminating the numerous vertical well leases along the lateral path. Phase 3 of Prospera's corporate redevelopment strategy will focus on continuing the company's horizontal modular development to appreciate production and optimize recovery of remaining reserves.

Prospera intends to implement full-scale enhanced oil recovery applications based on the results of its phase 2 pilot program, which is forecasted to optimize recovery by greater than 10 per cent. Prospera also intends to continue its acquisition strategy to diversify its product mix. Its goal is to attain 50 per cent light oil, 40 per cent heavy oil and 10 per cent gas.

Prospera continues to apply efforts to minimize its environmental footprint. Also, efforts to reduce and eventually eliminate emissions, alongside pursuing innovative environmental, social and governance methods to enhance API quality, thereby achieving higher margins and eliminating the need for diluents.

We seek Safe Harbor.