Kinetiko Energy Ltd. provided the following update on its onshore gas exploration and production development activities. Core hole 270-03C spudded on 24 January 2023 approximately 2kms from South Africa's gas pipeline, the Lily Pipeline, which feeds the industries of the KZN midlands and coastal cities. The core hole started encountering significant gassy zones from a depth beyond 300m with strong visible gas emissions observed from core samples at depths between 380-390m with drilling continuing.

Exploration Update Core hole 270-03C is currently coring at below 460m meters having drilled through dolerite to 290m before breaking through to the sedimentary /carbonaceous zones. The Company is aware, from aeromagnetic and gravimetry surveys, that the dolerite sill undulates and the company has encountered a thick sill section in this core hole. However, recent and historic drilling gives the Company confidence that thicker sills can mean deeper sands and therefore the terminal depth (and potential associated gas pay cut in the profile) of this core hole could be similar to recent core holes (270-06C - 147m of gas-bearing sediments) and possibly significantly deeper.