Mr. Shawn Mehler reports

PROSPERA ENERGY LAUNCHES KEY INFRASTRUCTURE UPGRADES TO UNLOCK NEXT PHASE OF PRODUCTION GROWTH

Prospera Energy Inc. has commenced a major pipeline replacement and infrastructure upgrade project in the Cuthbert area. The project involves the replacement of two key legacy pipelines over a 10-day construction period, with a total capital investment of approximately $500,000.

The new pipelines are constructed using corrosion-resistant and spoolable FlexSteel material, replacing aging composite lines that had previously limited Prospera's ability to manage water injection and maintain optimal reservoir pressure. Failures of the older lines had significantly reduced water-handling capacity, necessitating the temporary shut-in of select wells. Upgrading to FlexSteel enhances system integrity, improves leak detection and ensures long-term operational reliability while minimizing environmental risk. The project is expected to increase waterflood injection capacity by approximately 2,500 to 3,500 cubic metres per day, expanding total field capacity from the current roughly 3,200 cubic metres per day. Additionally, a third water injection pump will be installed at the Cuthbert 2-2 battery following overhaul and maintenance. Together, these upgrades are projected to add approximately 150 barrels of oil per day in incremental production once stabilized over a two-to-four-week ramp-up period.

"This initiative enables more efficient redistribution of water from the north end of the pool to the south, relieving overinjection in certain zones while restoring pressure support in underinjected areas with low voidage replacement ratios (VRR). It gives our reservoir engineering team the flexibility to dynamically adjust waterflood patterns, optimize recovery and bring additional producer wells on line in the southern portion of the field. With harvest now complete in the region, we can execute this work with minimal land disturbance while implementing long-term infrastructure that supports stable, optimized production," said Darren Jackson, Prospera's chief operating officer. "This is a key step in modernizing our field systems and preparing for the next phase of growth."

Following the severe weather events in the region and legacy pipeline quality defects, overall waterflood system pressure has been operating around 5,000 kilopascals, below the optimal 6,500-to-8,000-kilopascal range. The new pipeline replacements will significantly improve system reliability, reservoir efficiency and injection stability -- laying the groundwork for higher sustained reservoir pressure, consistent production performance and improved long-term recovery factors.

Beyond immediate production gains, this project also provides material cost savings through reduced downtime, fewer maintenance interventions and optimized field operations. Surplus FlexSteel pipe and fittings from this installation will be utilized for future infrastructure improvements, extending these operational and environmental benefits across Prospera's broader heavy oil production base.

This project marks another important milestone in Prospera's overall field redevelopment plan -- executing targeted infrastructure projects to modernize the company's assets, optimize reservoir management, and position field operations for sustained production growth in 2025 and beyond while reducing field operating costs and increasing netbacks.

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 Energy is listed on the TSX Venture Exchange under the symbol PEI and the U.S. OTC (over-the-counter) 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.

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