Mr. Paul Colborne reports

SURGE ENERGY INC. ANNOUNCES CLOSING OF OVER-ALLOTMENT OPTION

Surge Energy Inc. has closed an overallotment option that was fully exercised by a syndicate of underwriters to the offering (as defined herein), led by National Bank Financial Inc. and Peters & Co. Ltd., to purchase an additional 1,135,200 common shares of the company at a price of $9.25 per share for gross proceeds of $10,500,600. The overallotment option was granted to the underwriters in connection with the bought deal public offering completed by the company on Nov. 22, 2022. After giving effect to the overallotment option, a total of 8,703,200 shares have been issued pursuant to the offering for aggregate gross proceeds of $80,504,600.

In all other respects, the terms of the offering and use of proceeds therefrom will remain as previously disclosed in the Nov. 2, 2022, press release.