Mr. Tom Connors reports

CATHEDRAL ANNOUNCES DELAY IN FILING ITS 2022 ANNUAL FINANCIAL STATEMENTS

Cathedral Energy Services Ltd. will not file its annual financial statements, accompanying management's discussion and analysis, related chief executive officer and chief financial officer certifications, and annual information form for the financial year ended Dec. 31, 2022, within the period prescribed for the filing of such documents under parts 4, 5 and 6 of National Instrument 51-102 (Continuous Disclosure Obligations) and pursuant to National Instrument 52-109 (Certification of Disclosure in Issuers' Annual and Interim Filings), namely within 90 days of year-end, being March 31, 2023.

Due to the volume of auditing work related to the significant acquisition activity, related financing activities, growth and transformation of the company during the 2022 year, Cathedral's audit continues at this time. Cathedral does not anticipate any material change from the operational results and financial performance previously reported on Jan. 13, 2023. Cathedral is working closely with its auditor and is making every effort to file the annual filings in a timely fashion and expects to file the annual filings by April 14, 2023.

Following a record third quarter, Cathedral once again anticipates reporting record results for the 25-year history of the company in both the fourth quarter and the complete year of 2022. Consolidated revenues for the fourth quarter will increase greater than 18 per cent over the third quarter as a result of pricing increases, increased RSS activity in the United States and new mud motor technology introduced in the Canadian market. This increased Q4 revenue should result in increased overall results, including net income and adjusted EBITDAS (earnings before interest, taxes, depreciation, amortization and stock-based compensation). Despite a lower-than-expected rig count in the fourth quarter in Canada, market share reached a new high averaging almost 28 per cent. Market share in the U.S. in the fourth quarter was maintained at approximately 6 per cent. Operating days in Canada were 3,617 for the quarter and 10,844 for the year. Operating days in the U.S. were 3,205 for the quarter and, considering the Altitude acquisition started in July, 2022, 6,818 for the year.

The company is providing this default announcement in accordance with National Policy 12-203 (Management Cease Trade Orders). The company has made an application to the Alberta Securities Commission, as principal regulator of the company, a management cease trade order under NP 12-203 in respect of the default regarding the annual filings. The MCTO will prohibit the CEO and the interim CFO from trading in securities of Cathedral for so long as the annual filings are not filed. The issuance of the MCTO, if issued, does not affect the ability of persons other than the CEO and the interim CFO of the company to trade in the company's securities. The application for the MCTO remains subject to the risk factors described in the forward-looking information and risk factors, including the risk that the MCTO application may not be successful or may not be completed prior to a securities commission issuing a failure-to-file cease trade order against the company following the filing deadline.

The company confirms that it intends to satisfy the provisions of the alternative information guidelines found at sections 9 and 10 of NP 12-203 respecting cease trade orders for continuous disclosure defaults for so long as it remains in default as a result of the late filing of the annual filings. During the period of default, the company will issue biweekly default status reports in the form of further news releases, which will also be filed on SEDAR. The company confirms that there are no insolvency proceedings against it as of the date of this news release. The company also confirms that there is no other material information concerning the affairs of the company that has not been generally disclosed as of the date of this news release.

About Cathedral Energy Services Ltd.

Cathedral, based in Calgary, Alta., is incorporated under the Business Corporations Act (Alberta) and operates in the U.S. under Discovery Downhole Services, a division of Cathedral Energy Services Inc. and Altitude Energy Partners LLC. Cathedral is publicly traded on the Toronto Stock Exchange under the symbol CET. Cathedral is a trusted partner to North American energy companies requiring high performance directional drilling services. It works in partnership with its customers to tailor its equipment and expertise to meet their specific geographical and technical needs. Its experience, technologies and responsive personnel enable its customers to achieve higher efficiencies and lower project costs.

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