Mr. Shubham Garg reports

PROSPERA ENERGY ANNOUNCES OPERATIONS UPDATE, CLOSING OF WHITE TUNDRA PETROLEUM ACQUISITION, AND SIGNING OF JOINT VENTURE PARTNERSHIP

Prospera Energy Inc. has provided an operations update.

Prospera has maintained strong operational momentum, averaging gross production of 775 barrels of oil equivalent per day (boe/d) (97 per cent oil) from Aug. 1 to Aug. 21. These figures exclude production from the recently acquired White Tundra petroleum assets.

Numerous projects were successfully executed during the month, including additional well reactivations in Luseland, horizontal well re-entries in Cuthbert, installation of recycle pumps and sand suspension chemicals, well optimizations, engine maintenance and tune-ups, lease upgrades, mineral rights acquisitions, and waterflood enhancements. In the past seven days, four additional wells have been brought on line and are currently in stages of load fluid recovery or initial optimization. Furthermore, two single-well battery (SWB) builds are in progress.

Comprehensive well-by-well analysis continues daily, with production enhancement measures implemented in close co-ordination with field operations. Results from the Luseland reactivations have validated several strategies and proof-of-concept wells, as highlighted in the key wells report available on Prospera's website.

The corporation's strong netbacks continue to support its strategy of efficiently reallocating capital into high-impact, reliable projects. To date, more than 60 projects have been completed, with plans finalized for the Q4 (fourth quarter) service rig program, including 12 additional Luseland reactivations that have advanced through engineering and planning. Furthermore, the success of the first heel perf in Cuthbert has identified 18 additional similar opportunities, further expanding the corporation's robust project inventory.

Cuthbert

Production at the Cuthbert pool averaged 295 boe/d (100 per cent oil) from Aug. 1 to Aug. 21. Enhanced winterization efforts are now under way, supported by critical infrastructure and field upgrades completed earlier in the summer. During the period, production was temporarily impacted by required shut-ins for horizontal well re-entry operations and by electricity outages associated with voltage regulator upgrades in preparation for winter.

Following the successful completion of a high-impact remediation project on the 16-28 HZ well, which involved installing a downhole bridge plug to isolate a coal and water-bearing section of the formation, the corporation has completed a second high-impact remediation on the 08-02 HZ well. This work included the installation of a bridge plug and the perforation of 35 metres (m) in the heel section to access additional oil-bearing reservoir. As a result, oil production from this well has increased by more than 300 per cent, with over 60 joints of fluid still available for further optimization through controlled speed-ups and continuous monitoring of wellhead cuts.

Hearts Hill

Production at Hearts Hill averaged 202 boe/d (90 per cent oil) from Aug. 1 to Aug. 21. The corporation is advancing waterflood pattern optimization and fluid level drawdown initiatives to enhance reservoir performance. A comprehensive line-by-line review of all area pipelines has been completed to confirm injection volumes, validate integrity, and support the development of a final field-wide reactivation and workover plan. Earlier Sparky zone recompletions continue to deliver consistent oil production, with future Sparky waterflood development held in inventory. During August, several injection patterns were adjusted, resulting in a reversal of well declines, improved reservoir understanding, and refinement of reactivation strategies and prioritization.

Luseland

Production at Luseland averaged 217 boe/d (99 per cent oil) from Aug. 1 to Aug. 21. This performance has been supported by continuing workovers, well reactivations and field optimizations guided by daily monitoring of fluid levels and wellhead cuts. Several wells have exhibited significant sand slugging, which is conducive to wormhole development and the potential for increased production at the well level. In addition, wellhead oil cuts are showing a lighter, foamier, less-viscous oil -- an encouraging indicator of fresh reservoir fluid being accessed from previously undrained areas of the pool.

More than 10 wells are currently under active daily optimization, with six recycle pumps and sand suspension chemical treatments already installed and three additional installations under way. Prospera continues to execute its strategy of increasing pump speeds to accelerate fluid drawdown, conducting pro-active flushby operations to prevent sanding issues and managing well loads to bring sand slugs up the wellbore. These efforts are supported by cost-reduction initiatives, including the installation of a transfer pump on a higher watercut well, optimized trucking routes for emulsion and collaboration with landowners to reduce services' travel time. Prospera's engineering and field teams remain highly focused on well-by-well monitoring of all new reactivations to maximize production, improve reservoir understanding, and minimize failures and decline rates. In Luseland, a total of 34 wells are now on line, with two additional SWB builds in progress.

Several high performing Luseland wells are featured in the accompanying key wells report, demonstrating the success of Prospera's strategic focus on revitalizing legacy wells with significant original oil in place (OOIP). Through targeted reactivations, the company is transforming wells once classified as no reserves associated (NRA) and burdened solely with asset retirement obligations (ARO) into actively producing assets with meaningful proved developed producing (PDP) reserves, driving sustainable revenue and positive cash flow. Prospera has also identified groups of wells with comparable production histories, each undergoing tailored optimization strategies. Once validated, these approaches can be replicated across other wells with similar geologic characteristics, enabling more predictable reactivations and development.

Production, workover tracker and key wells report

Prospera has now published its updated production, workover tracker and key wells report. Production volumes on each field will continue to be reported on a monthly basis, along with corporate revenue information. A detailed workover tracker will share production rates and cumulative production since start-up from all workovers and reactivations completed, with information on capital spend to be added to the September iteration of this report. Additionally, numerous key wells and their production graphs are explained in detail as the company demonstrates its highly capital-efficient workover and reactivation business model.

White Tundra Petroleum acquisition

Prospera Energy is pleased to announce it has successfully closed the strategic acquisition of White Tundra Petroleum (WTP) by acquiring 100 per cent of the issued and outstanding common shares. WTP's assets produce 30-degree API medium oil, and are located near Loyalist and Hanna, Alta. The acquisition strengthens Prospera Energy's base production and provides numerous high-impact reactivation opportunities. This transaction has been accepted by the TSX Venture Exchange. The acquisition closed for total consideration of $2.62-million, of which $720,000 will be satisfied through the issuance of 18 million common shares at a deemed price of four cents per share to WTP shareholders upon closing. In addition, the company may issue a further 7,312,500 common shares at a deemed price of four cents per share, representing additional consideration of $292,500, as a performance-based bonus. This bonus is contingent on the acquired assets achieving average production of at least 128 boe/d for seven consecutive days within six months of the acquisition date.

This transaction qualifies as a related party transaction. Shubham Garg serves as Prospera's chairman of the board, is the chief executive officer of WTP and is a shareholder of WTP. The corporation has relied on the exemptions from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 contained in sections 5.5(a) and 5.7(a) of MI 61-101 in respect of such insider participation. In addition, the related party director has recused himself from all board discussions including the acquisition's deal structure, valuation and decisions in relation to this transaction.

Joint venture partnership

Prospera is pleased to announce that it has entered into a joint venture partnership to advance the development of its Mannville stack formation assets. Under the agreement, the JV partner will nominate and participate in select recompletion, reactivation and equipping operations, beginning with three non-producing test wells to be identified by Aug. 31, 2025. Operations are expected to commence by Oct. 31, 2025, with completions targeted for Jan. 31, 2026.

The JV partner brings extensive expertise in the Mannville heavy oil stack, with a proven record of deploying advanced development techniques that have successfully converted underdeveloped assets into material production, including drilling of numerous open-hole multilateral wells. Prospera will retain operatorship and well licensing, while the partner may earn a 50-per-cent working interest in the test wells upon meeting its capital commitments. In addition, the partner will hold a five-year option to nominate further wells within the area.

This partnership structure enables Prospera to accelerate the development of its Mannville stack formation assets while mitigating capital requirements and maintaining operational control, positioning the corporation for long-term, sustainable growth while focusing on its base Bakken heavy oil pools.

About Prospera Energy Inc.

Prospera is a publicly traded Canadian energy company specializing in the exploration, development and production of crude oil and natural gas. Headquartered in Calgary, Alta., Prospera is dedicated to optimizing recovery from legacy fields using environmentally safe and efficient reservoir development methods and production practices. The company's core properties are strategically located in Saskatchewan and Alberta, including Cuthbert, Luseland, Hearts Hill and Brooks. Prospera is listed on the TSX Venture Exchange under the symbol PEI and the U.S. OTC market under GXRFF.

Prospera reports gross production at the first point of sale, excluding gas used in operations and volumes from partners in arrears, even if cash proceeds are received. Gross production represents Prospera's working interest before royalties, while net production reflects its working interest after royalty deductions. These definitions align with ASC 51-324 to ensure consistency and transparency in reporting.

We seek Safe Harbor.