Mr. Bruce Wilcox reports

NXT ENERGY SOLUTIONS ANNOUNCES 2023 YEAR-END RESULTS AND INVESTOR CONFERENCE CALL

NXT Energy Solutions Inc. has released the company's financial and operating results for the quarter and year ended Dec. 31, 2023, as well as significant subsequent events.

Financial and operating highlights

Key financial and operational highlights are summarized below:

• During the fourth quarter, the company commenced the Turkish SFD survey for an independent oil and gas exploration company in Turkey.
• The company recorded SFD-related revenues of approximately $2.15-million.
• Cash at Dec. 31, 2023, was approximately $400,000.
• Net working capital was approximately ($1.86-million) at Dec. 31, 2023, versus approximately ($3.47-million) at Sept. 30, 2023.
• A net loss of $430,000 was recorded for Q4 2023, including stock-based compensation expense and amortization expense of approximately $500,000.
• A net loss of approximately $5.45-million was recorded for year-end 2023, including SBCE and amortization expense of approximately $1.97-million.
• Net loss per common share for Q4 2023 was one cent per share (basic and diluted).
• Net loss per common share for year-end 2023 was seven cents per share (basic and diluted).
• Cash flow used in operating activities was approximately $1.47-million during Q4 2023 and $4.83-million in the 2023 financial year.
• A total of $1.15-million (U.S.) ($1.58-million (Canadian)) of cash was received from the convertible debentures that were previously announced on Nov. 9, 2023.
• General and administrative expenses decreased by approximately $40,000 (5 per cent) in Q4 2023 as compared with Q4 2022, and G&A expenses decreased by approximately $320,000 (8 per cent) in year-end 2023 as compared with year-end 2022.

Key financial and operational highlights occurring subsequent to Dec. 31, 2023, are summarized below:

• NXT Energy completed the Turkish SFD survey, delivered the final results thereof to its Turkish customers, and completed the integration of SFD data with such customers' existing geological and geophysical data.
• The debentures were finalized for a total of $1.87-million (U.S.) ($2.54-million (Canadian)). A total of $720,000 (U.S.) (approximately $970,000 (Canadian)) of that was received in January, 2024.
• NXT Energy and Huloolq Ltd. (known as Qamia), an Abu Dhabi-based start-up focused on deep tech disruptive technologies, entered into a sales agency agreement covering the United Arab Emirates.
• On March 22, the company extended its lease on its aircraft for an additional three years as a capital lease. Under the terms of the lease, the company will own the aircraft at the end of the term.

Bruce G. Wilcox, interim chief executive officer of NXT Energy, stated: "My hope is that 2023 will be looked back upon as a watershed moment for the company as we continue efforts to increase revenues and ultimately enhance shareholder value. In May 2023, NXT announced a strategic alliance partnership with Synergy E&P Technologies Ltd., which included an exclusive licence to market and distribute NXT's SFD solutions in Africa. In September, 2023, NXT announced its first SFD survey contract in Turkey. In October, 2023, the company was a finalist for best exploration technology at the World Oil 2023 Gulf energy excellence awards in Houston. Most recently, a new sales agency agreement was announced with Huloolq Ltd. (known as Qamia), an Abu Dhabi-based start-up focused on deep tech disruptive technologies, which covers the United Arab Emirates. Through our collective efforts on these and other strategic initiatives, I have increased confidence 2024 should bode well for the future of the company. On behalf of our board of directors and the entire team at NXT, I want to thank all of our shareholders for their continued support."

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

NXT Energy's 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.

Investor conference call

Date:  Tuesday, April 2, 2024

Time:  4:30 p.m. Eastern Time (2:30 p.m. Mountain Time)

Participants call:  1-800-806-5484

Conference ID:  4949676 followed by the number sign

About NXT Energy Solutions Inc.

NXT Energy is a Calgary-based technology company whose proprietary airborne SFD survey system, applied in numerous basins around the world, uses the principles of quantum mechanics to infer stress anomalies of exploration interest. The method can be used both onshore and offshore to remotely identify areas conducive to fluid entrapment to recommend areas with commercial hydrocarbon and/or geothermal potential. The SFD survey system enables its 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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