Mr. James Evaskevich reports

YANGARRA ANNOUNCES $15 MILLION BOUGHT DEAL FINANCING OF FLOW-THROUGH COMMON SHARES

Yangarra Resources Ltd. has entered into an equity financing agreement, on a bought deal basis, with a syndicate of underwriters led by ATB Capital Markets Inc. and CIBC Capital Markets.

Under the terms of the agreement, Yangarra will issue an aggregate of 5,905,600 common shares to be issued on a flow-through basis (FT) in respect of Canadian development expenses (CDE) at a price of $2.54 per CDE FT share.

Yangarra has also granted to the underwriters an option to purchase additional CDE FT shares, equal to 15 per cent of the number of CDE FT shares sold pursuant to the offering at the offering price, for market stabilization purposes and to cover overallotments for a period expiring 30 days after the date of closing.

The total aggregate gross proceeds are $15,000,224 and up to $17,250,257 pursuant to the full exercise of the overallotment option. Insiders of Yangarra will participate for up to $1.5-million of the offering.

The proceeds from the issuance of CDE FT shares will be used by Yangarra to incur CDE expenses on Yangarra's existing Canadian properties prior to Dec. 31, 2023, and Yangarra will renounce qualifying expenditures to purchasers of the CDE FT shares on or before Dec. 31, 2023.

The CDE FT shares will be offered by way of short form prospectus in each of the Alberta, British Columbia, Saskatchewan and Ontario, pursuant to National Instrument 44-101, Short Form Prospectus Distributions, and in such other jurisdictions outside of Canada, in accordance with all applicable laws and provided that no prospectus, registration statement or similar document is required to be filed in such jurisdiction. The financing is expected to close on or about March 27, 2023, and is subject to approval of the Toronto Stock Exchange, receipt of all necessary regulatory approvals and other customary conditions.

Proceeds of the offering will assist with accelerated development of the Chambers area. A 15-million-cubic-foot-per-day (mmcf/d) compression facility was constructed by Yangarra's OFS group, which, together with a 10.5-kilometre sales line, will be completed by the end of this week. The sales line was installed in 28 days with compelling costs, demonstrating the advantage of Yangarra's OFS group. In addition, production from recently acquired land was tied into this new facility with a 4.5-kilometre gathering line constructed concurrently with the sales line. The company expects the facility to be operational in the next few days with the initial three wells (currently testing) to be tied in, followed by five wells in early April.

The accelerated development will not affect total capital spending or production guidance for the year, however, the company expects to be in a position to potentially increase production guidance later in the year.

We seek Safe Harbor.