An anonymous representative of Ataraxia Capital reports

EARLY WARNING REPORT ISSUED PURSUANT TO NATIONAL INSTRUMENT 62-103 IN CONNECTION WITH THE CLOSING OF THE PRIVATE PLACEMENT OF NXT ENERGY SOLUTIONS INC.

Ataraxia Capital has filed an early warning report under National Instrument 62-103, The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, in connection with the purchase of a secured convertible debenture of NXT Energy Solutions Inc. in a private placement on July 10, 2023.

On July 10, 2023, Ataraxia acquired a secured convertible debenture from the company in the amount of $200,000 (U.S.) convertible into common shares or preferred shares of the company.

Prior to the completion of the private placement, Ataraxia held 8,391,608 shares of the company, representing 9.76 per cent of the outstanding shares of the company on a partially diluted basis.

Upon completion of the private placement, Ataraxia holds 9,790,209 shares of the company, representing 11.2 per cent of the outstanding shares of the company on a partially diluted basis.

Ataraxia may acquire additional securities of the company, dispose of some or all of the existing or additional securities it holds or will hold, or may continue to hold its current position, depending on market conditions and other relevant factors.

A copy of the early warning report filed by Ataraxia will be available under the company's profile on SEDAR.