Mr. Mohammad Fazil reports

SABA ENERGY TO COMPLETE A PRIVATE PLACEMENT FOR UP TO $250,000 AND RECEIVES COURT APPROVAL FOR SETTLEMENT AGREEMENT FOR ITS OIL AND GAS ASSETS IN BRITISH COLUMBIA AND RETURNS SHARES TO TREASURY

Saba Energy Ltd. proposes to complete a private placement of up to five million units of the corporation at a price of five cents per unit for gross proceeds of up to $250,000. There will be no minimum subscription level for the offering. Each unit will consist of one common share in the share capital of the corporation and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share at an exercise price of 7.5 cents for a period of two years from the date of issuance of the warrant.

The warrants will be subject to an acceleration clause such that if the volume weighted average trading price of the common shares on the TSX Venture Exchange is at least 20 cents per common share for a period of 15 consecutive trading days, the expiry date of the warrants may be accelerated by the corporation to a date that is not less than 15 days after the date that notice of such acceleration is provided to the warrantholders by way of a news release.

The corporation may pay finders' fees to those who assist the corporation in filling the private placement.

The offering is expected to close in tranches. Common shares and warrants issued under the offering will be subject to a hold period expiring four months and one day following their respective date of issue. Net proceeds of the offering are expected to be used for general working capital.

On June 29, 2026, the corporation issued a news release announcing that the corporation had entered into a settlement agreement dated June 10, 2026, with the court-appointed receiver and manager of Blue Sky Resources Ltd. (BSR) regarding the British Columbia oil and natural gas assets that Saba purchased in 2024 and 2025. Further to the settlement agreement, the Court of King's Bench of Alberta issued final approval for the settlement agreement on July 9, 2026.

In connection with the settlement agreement the principals of BSR have returned 50,353,694 Saba common shares issued in May, 2024. The returned shares represent 85 per cent of the shares that were issued by Saba as consideration for the B.C. assets. The shares have been returned to treasury for cancellation. The corporation now has a total of 19,337,965 outstanding.

About Saba Energy Ltd.

The company is a publicly traded entity listed on the TSX Venture Exchange under the symbol SABA with oil and natural gas assets in Alberta.

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