Mr. Eugene Woychyshyn reports

NXT ENERGY SOLUTIONS ANNOUNCES FIRST QUARTER 2023 RESULTS

NXT Energy Solutions Inc. has released the company's financial and operating results for the quarter ended March 31, 2023.

Financial and operating highlights

Key financial and operational highlights are summarized below:

• On Jan. 25, 2023, the company closed a private placement by issuing 8.51 million common shares at 19.5 cents per common share for aggregate gross proceeds of approximately $1,659,450, less issuance costs of $1,170.
• In January, 2023, the company announced the grant of 2.05 million incentive stock options at a price of 21.6 cents to employees, officers and directors. These incentive stock options will vest upon receipt of cash for SFD services performed: one-third upon collection of $6.5-million (U.S.), one-third upon the collection of the next $7.0-million (U.S.) and the final one-third upon collection of an additional $7.5-million (U.S.).
• In January, the board of directors formally empowered a management committee of the board to assume the chief executive officer's duties.
• The management committee is working closely with senior management to bring to fruition near-term potential contracts in Africa and Asia Minor.
• Cash at March 31, 2023, was $470,000.
• Net working capital was ($1.17-million) at March 31, 2023.
• The company recorded SFD-related revenues of nil.
• A net loss of $1.61-million was recorded for first quarter 2023, including stock-based compensation expense (SBCE) and amortization expense of $510,000.
• Net loss per common share for Q1 2023 was two cents, basic, and two cents, diluted.
• Cash flow used in operating activities was $1.40-million during Q1 2023.
• General and administrative (G&A) expenses decreased by $50,000 (6 per cent) in Q1 2023 as compared with Q1 2022.

Summary highlights of NXT Energy's first quarter 2023 financial statements (with comparative figures to 2022) are noted herein. All selected and referenced financial information noted below should be read in conjunction with the company's 2023 unaudited condensed consolidated interim financial statements and the related management's discussion and analysis.

NXT Energy's first quarter 2023 financial and operating results have been filed in Canada on SEDAR and will soon be available in the United States on EDGAR, as well as on NXT Energy's website.

About NXT Energy Solutions Inc.

NXT Energy is a Calgary-based technology company whose proprietary SFD survey system utilizes quantum-scale sensors to detect gravity field perturbations in an airborne survey method, which can be used both onshore and offshore, to remotely identify traps and reservoirs with hydrocarbon and geothermal exploration potential. The SFD survey system enables clients to focus their exploration decisions concerning land commitments, data acquisition expenditures and prospect prioritization on areas with the greatest potential. SFD is environmentally friendly and unaffected by ground security issues or difficult terrain, and is the registered trademark of NXT Energy. NXT Energy provides its clients with an effective and reliable method to reduce time, costs and risks related to exploration.

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