Mr. Ryan Rawlyk reports

PRAIRIE PROVIDENT RESOURCES ANNOUNCES CLOSING OF ASSET SALES

Prairie Provident Resources Inc. has closed the previously announced sales of its Evi assets in northern Alberta for net proceeds of $22.5-million after adjustments, based on an effective date of Aug. 1, 2023, and certain non-core assets located in the Provost area of central Alberta for net proceeds of $1.7 million after adjustments, based on an effective date of July 1, 2023. The purchasers have assumed all future abandonment and reclamation obligations (ARO) pertaining to the sold assets, which carry total AER deemed liabilities of approximately $51-million gross ($46.4-million net).

Of the net proceeds of approximately $24.2-million, $20-million has been used to reduce indebtedness under the company's senior secured credit facility, with the remainder to increase its working capital position.

Going forward, the company intends to focus on its inventory of attractive optimization and development opportunities in central and southern Alberta and continue with non-core property dispositions to enhance its financial flexibility.

About Prairie Provident Resources Inc.

Prairie Provident is a Calgary-based company engaged in the exploration and development of oil and natural gas properties in Alberta.