Mr. Marty Staples reports

TOPAZ ANNOUNCES TUCK-IN ACQUISITION OF INFRASTRUCTURE AND ROYALTY ASSETS IN CORE OPERATING AREAS

Topaz Energy Corp. has entered into definitive agreements to acquire a 49.9-per-cent working interest in a newly constructed and commissioned sweet natural gas processing facility and associated crude oil battery in the Wembley area in addition to gross overriding royalty interests in the Clearwater and Charlie Lake operating areas in Alberta which include 17,000 gross undeveloped acres, for total cash consideration of $39.5-million.

One hundred per cent of the facility interests are supported by a 15-year fixed take-or-pay contractual commitment during which Topaz is not responsible for operating or maintenance costs. The tuck-in acquisition is expected to provide approximately $6-million of annual revenue to Topaz before consideration of royalty revenue growth from further acreage development. The tuck-in acquisition will be financed through Topaz's existing credit facility and is expected to close on July 31, 2023, subject to the satisfaction of customary closing conditions.

Second quarter 2023 results

Topaz is scheduled to release its second quarter 2023 financial results on July 31, 2023, which will include updated 2023 guidance estimates. Topaz will host a second quarter conference call on Tuesday, Aug. 1, 2023, starting at 9 a.m. MST (11 a.m. EST). To participate in the conference call, please dial 1-888-664-6392 (North American toll-free) a few minutes prior to the call. Conference ID is 76435486.

About Topaz Energy Corp.

Topaz is a unique royalty and infrastructure energy company focused on generating free cash flow (FCF) growth and paying reliable and sustainable dividends to its shareholders, through its strategic relationship with Canada's largest and most active natural gas producer, Tourmaline, an investment-grade senior Canadian E&P (exploration and production) company, and leveraging industry relationships to execute complementary acquisitions from other high-quality energy companies, while maintaining its commitment to environmental, social and governance best practices. Topaz focuses on top-quartile energy resources and assets best positioned to attract capital in order to generate sustainable long-term growth and profitability.

The Topaz royalty and energy infrastructure revenue streams are generated primarily from assets operated by natural gas producers with some of the lowest greenhouse gas emissions intensity in the Canadian senior upstream sector, including Tourmaline, which has received awards for environmental sustainability and conservation efforts. Certain of these producers have set long-term emissions reduction targets and continue to invest in technology to improve environmental sustainability.

We seek Safe Harbor.