Black Mountain Energy Ltd. provided the following operational updates. The acquisition of the Half Moon Project: · Diversifies the Company's portfolio · Provides immediate production & revenue · Potential hydrocarbons are believed to exist in multiple formations on the acreage · Further value may be unlocked via horizontal drilling · Efforts underway to consider expanding footprint. The Company will have immediate production of approximately 1,800 gross mcfepd or 465 mcfepd net from 8 wells situated on over 3,200 gross (1,268 net non- operated acres).

Potential hydrocarbons are believed to exist in multiple formations on the acreage. Technical workflows are underway to fully understand the potential upside and to prioritize a forward plan for future activity. This plan will investigate using horizontal drilling technology to further unlock value as well as consider efforts to expand its footprint in the area.

Project Valhalla The Company continues to advance Project Valhalla in EP 371. The Company remains committed to progressing approvals, data acquisition and appraisal planning on the permit this year. Recently, the Fitzroy Crossing area and the area in and around the Valhalla Project experienced catastrophic flooding in early January 2023.

The Company is in communication with its area stakeholders and is reviewing various ways to provide support to those affected. The damage to key infrastructure is extensive and access to the area is limited and restricted. The Company had fully intended to complete its new 2D seismic acquisition during the first half of 2023.

While executing the seismic acquisition during this timeframe has not been ruled out, it is very possible a delay may occur. As a precaution, the Company will apply for an S&E (suspend & extend) application with the regulator. The Company will continue to monitor access and work closely with the seismic contractor.