Mr. Garth Johnson reports

PULSE OIL ANNOUNCES CLOSING OF RIGHTS OFFERING

Pulse Oil Corp. has completed the rights offering to eligible holders of its common shares, announced in its news release of Dec. 7, 2023.

Pursuant to the rights offering, the company issued a total of 103,910,942 common shares, the full amount of the rights offering, at a price of four cents per common share for aggregate gross proceeds of $4,156,437.68. A total of 49,074,871 common shares were issued under the basic subscription privilege, including 39,889,286 common shares to insiders of the company, as a group, and 6,786,000 common shares to all other persons (non-insiders), as a group. In addition, a total of 2,399,585 common shares were issued under the additional subscription privilege, all to non-insiders. To the knowledge of the company after reasonable inquiry, no person became an insider of Pulse as a result of the rights offering.

As of the closing of the rights offering, Pulse has 623,465,656 common shares issued and outstanding. The rights offering remains subject to receipt of final acceptance of the TSX Venture Exchange.

In connection with the rights offering, and as previously announced, Pulse entered into a standby commitment agreement with each of CDN Trustee Ltd. TR CDN Trust and Andrew Ritchie TR AJ Trust No. 2 (collectively, the standby purchasers), each dated Dec. 7, 2023. Pursuant to the standby commitment agreements: (i) the standby purchasers exercised their basic subscription privileges and, in addition thereto, purchased, in aggregate, 54,836,071 common shares available as a result of unexercised rights under the rights offering; and (ii) the company issued, in aggregate, 17.05 million non-transferable common share purchase warrants (the bonus warrants) to the standby purchasers. Each bonus warrant is exercisable for 60 months from the date of issuance into one common share at a price of five cents per common share. No other fees or commissions were paid by the company in connection with the rights offering.

Garth Johnson, Pulse Oil's chief executive officer, commented: "We are looking forward to a busy schedule of operations in 2024 using the proceeds from this financing. We've already begun the stimulation of one well in our Nisku E pool with a goal to add new oil production in February, followed by the drilling of a new well in the Nisku D pool with a short-term goal to add new production from drilling in Q1 of 2024 and, longer term, this well will provide Pulse with an ideally located enhanced oil recovery (EOR) production well when the EOR program injection solvent migrates toward this well, further increasing oil production. Finally, we are also pleased to announce that we have finalized all pipeline plans, costs and timing, and Pulse will be completing this work in Q1/Q2 of 2024 while also converting another of our existing wells in our D pool to a water flood well in order to further increase ultimate oil recoveries within our D pool asset."

About Pulse Oil Corp.

Pulse is a Canadian company incorporated under the Business Corporations Act (Alberta) that is primarily focused on a 100-per-cent working interest enhanced oil project, located in west-central Alberta, Canada. The project includes two established Nisku pinnacle reef reservoirs that have been producing sweet light crude oil for over 40 years.

The company plans to institute a proven recovery methodology (NGL (natural gas liquid) solvent injection) to further enhance the ultimate oil recovery from these two proven pools. With under 10 million barrels of oil recovered to date and representing approximately 30-per-cent recovery factor from the pools, Pulse is moving forward to execute the EOR (enhanced oil recovery) project and unlock significant value for shareholders. Pulse's total reclamation liabilities are just $2.7-million, which, when compared with many peers in the industry in Western Canada, are very low.

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