Ms. Louisa DeCarlo reports

CANADIAN SPIRIT RESOURCES INC. ANNOUNCES THE SECOND QUARTER DECEMBER 31, 2023 FINANCIAL RESULTS

Canadian Spirit Resources Inc. has released its unaudited interim financial statements and management's discussion and analysis, each for the three- and six-month periods ended Dec. 31, 2023.

Second quarter financial results

This news release summarizes certain information contained in the financial statements and management's discussion and analysis, and should not be considered a substitute for reading these full disclosure documents, which are available on the corporation's profile on SEDAR+.

In accordance with the corporation's change of year-end from Dec. 31 to June 30 that was approved by the board of directors of the corporation on Aug. 25, 2023, the financial statements and MD&A provide a comparison of the financial performance of the corporation for the three- and six-month periods ended Dec. 31, 2023, to the three- and six-month periods ended Dec. 31, 2022. The corporation obtained approval for the change of its year-end from the Canada Revenue Agency on Nov. 30, 2023.

Selected financial data

The attached table summarizes certain selected financial data from the financial statements for the three and six months ended Dec. 31, 2023.

The corporation's gas production for the three and six months ended Dec. 31, 2023, averaged 668,000 and 334,000 cubic feet per day, respectively (three and six months ended Dec. 31, 2022: 1,084,000 and 593,000 cubic feet per day, respectively). The corporation's wells produced an average of 1,307,000 cubic feet per day (net to the corporation) for the 47 days that they were on production during November, and December 2023.

Review of strategic alternatives

The corporation continues to work with Sayer Energy Advisors to review strategic alternatives and maximize the value of the corporation's Montney resource base at Farrell Creek and Altares.

Warrant exercise

The corporation also announces that Elmag Investments Inc. has exercised the remaining 10 million warrants of the corporation issued to Elmag on March 15, 2022, to purchase an additional 10 million common shares in the capital of the corporation at a price of eight cents per common share.