Mr. Mike Kruchten reports

PAREX RESOURCES ANNOUNCES APPROVAL OF NORMAL COURSE ISSUER BID AND AUTOMATIC SHARE PURCHASE PLAN

The Toronto Stock Exchange (TSX) has approved Parex Resources Inc. commencing a normal course issuer bid.

Pursuant to the bid, Parex will purchase for cancellation, from time to time, as it considers advisable, up to a maximum of 10,198,838 common shares of the company. The bid will commence on Jan. 22, 2024, and will terminate on Jan. 21, 2025, or such earlier time as the bid is completed or terminated at the option of Parex.

The maximum number of common shares to be purchased pursuant to the bid represents 10 per cent of the public float, as of Jan. 8, 2024. Purchases pursuant to the bid will be made on the open market through the facilities of the TSX and/or Canadian alternative trading systems. The number of common shares that can be purchased pursuant to the bid is subject to a daily maximum of 113,253 common shares (which is equal to 25 per cent of the average daily trading volume of 453,015 from July 1, 2023, to Dec. 31, 2023). The price that Parex will pay for any common shares under the bid will be the prevailing market price on the TSX at the time of such purchase. Common shares acquired under the bid will be cancelled.

Eight Capital has agreed to act on the company's behalf to make purchases of common shares pursuant to the bid.

A copy of the Form 12 -- Notice of Intention to Make a Normal Course Issuer Bid filed by the company with the TSX can be obtained from the company upon request without charge.

Parex believes that the common shares have been trading in a price range which does not adequately reflect their value in relation to the company's current operations and its growth prospects, and that, at such times, the purchase of common shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining shareholders. As of the close of business on Jan. 8, 2024, the company had 103,811,718 common shares issued and outstanding, and a public float of 101,988,380 common shares.

Under a previous notice of intention to conduct a normal course issuer bid, the company sought and received approval of the TSX to purchase 10,675,555 common shares for the period from Jan. 4, 2023, to Jan. 3, 2024. From Jan. 4, 2023, to Jan. 3, 2024, the company purchased 5,628,100 common shares on the open market at a weighted average price of $25.1587 per common share.

Further, the company has entered into an automatic share purchase plan with Eight Capital in order to facilitate repurchases of its common shares. Under the company's automatic share purchase plan, Eight Capital may repurchase common shares under the bid during the company's self-imposed blackout periods. Purchases will be made by Eight Capital based upon the parameters prescribed by the TSX and applicable securities laws, and the terms of the plan and the parties' written agreement. The automatic share purchase plan has been approved by the Toronto Stock Exchange and will be implemented effective Jan. 22, 2024.

About Parex Resources Inc.

Parex is the largest independent oil and gas company in Colombia, focusing on sustainable, conventional production. The company's corporate headquarters are in Calgary, Canada, with an operating office in Bogota, Colombia. Parex is a member of the S&P/TSX Composite ESG Index, and its shares trade on the TSX under the symbol PXT.

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