Mr. Shawn Mehler reports

PROSPERA ENERGY INC. ANNOUNCES DEVELOPMENT UPDATE

Prospera Energy Inc. has resumed the phase 2 development of the horizontal infill drilling program. The sixth horizontal well spudded last Sunday, and the horizontal infill drilling transformation from vertical wells will continue through the winter to next year's breakup. Prospera's quick turnaround in bringing this specific horizontal production on-line enables the company to sustain its momentum and capitalize on the current strong oil price environment.

The first five horizontal wells drilled have performed higher than the estimated type curve, and the IP60 has exceeded Prospera's expectations. Prospera's current gross production is 1,100 barrels of oil equivalent per day, with 400 boe/d shut in to accommodate development and another 300 boe/d behind pipe on minor repairs and optimization.

The development of light-oil-slanted wells has received permits, and the lease has been constructed. This development is to commence over the next few weeks subject to weather conditions. Prospera will continue the phase 2 development program to increase production, aiming to achieve year-end targets and enhance Prospera's share value.

In addition to the first closing of debt financing, Prospera has received a robust response to the non-brokered private placement of debt financing for up to $3-million. The financing is to accommodate joint venture partner deficit and to extend drilling. Prospera's joint venture partners are in receivables and, therefore, in default payables until remedied. Consequently, Prospera assumes 100 per cent of production and revenue.

Prospera and development objectives

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 its phase 2 restructured development program intended to increase production. This phase includes the transformation from vertical wells to horizontal wells to reach the significant remaining reserves (400 million barrels) in Prospera's Saskatchewan heavy oil fields. This transformation will also reduce Prospera's environmental and surface footprint by eliminating the numerous vertical well leases along the lateral path.

Phase 3 of Prospera's restructured development program involves full-scale reservoir management with improved oil recovery and enhanced oil recovery applications to provide support to optimize recovery and lower the decline to sustain steady volume delivery. Prospera plans to further its acquisition strategy, expanding within its core area and diversifying its product mix. The goal for Prospera is to attain 50 per cent light oil, 40 per cent heavy oil and 10 per cent gas.

Prospera remains committed to environmental, social and governance initiatives aimed at minimizing its environmental footprint, reducing and, ultimately, eliminating emissions, and exploring innovative methods to enhance API quality. This approach not only improves margins but also eliminates the need for diluents.

We seek Safe Harbor.