CALGARY - LEUCROTTA EXPLORATION INC. (TSXV - LXE) ('Leucrotta' or the 'Company') is pleased to announce its financial and operating results for the three months ended March 31, 2022.

Q1 2022 Summary

During Q1 2022, Leucrotta made significant strides to further its business including the following: On March 17, 2022, the Company entered into a 10-year gas processing agreement with NorthRiver Midstream Inc. ('NRM') to provide 50 mmcf/d of firm processing capacity at NRM's West Doe gas processing facility. Leucrotta will also hold certain rights to additional firm processing capacity that, along with Leucrotta's owned 25 mmcf/d processing facility at Doe, will allow Leucrotta to reach 25,000 boe/d in the Mica area.

Concurrent with this agreement, NRM has agreed to provide up to $55 million of capital funding that Leucrotta will use to construct a battery facility at Mica (the 'Mica Battery'). The Mica Battery will consist of facilities for in-field processing of oil, gas and water and will deliver gas to NRM's West Doe gas processing facility. The Mica Battery will have an initial capacity of 60 mmcf/d expandable to 90 mmcf/d with added compression.

Proposed Corporate Transaction

On March 28, 2022, the Company announced that it had entered into an arrangement agreement (the 'Arrangement') whereby Vermilion Energy Inc. ('Vermilion') would acquire all of the issued and outstanding common shares of Leucrotta ('Leucrotta Shares') in exchange for $1.73 cash per Leucrotta Share, 1.0 common share of a new Montney-focused exploration and production company ('Coelacanth'), and 0.1917 of an Coelacanth common share purchase warrant (one whole warrant being an 'Coelacanth Arrangement Warrant'). Each Coelacanth Arrangement Warrant will entitle the holder to acquire one Coelacanth common share at an exercise price of $0.27 per share at any time on or before 30 days following the closing of the Arrangement.

Coelacanth Update

Coelacanth was formed as part of Arrangement described above. Under the terms of the Arrangement, Coelacanth will receive approximately $43.5 million cash, net of transaction costs, and certain oil and gas properties in the Two Rivers, BC area. In addition, Coelacanth plans to raise net proceeds of up to $36.9 million through the exercise of the Coelacanth Arrangement Warrants ($15.0 million), the Vermilion private placement ($14.4 million), and a fully subscribed management private placement ($7.5 million). The proceeds of the financings will be used to fund future capital projects. On completion of the Arrangement and all the proposed financings, Coelacanth will have approximately $80 million of cash (no debt), 150 sections of Montney land, the Two Rivers battery, production of approximately 355 boe/d (Q1 2022 average of 362 boe/d) and 426 million basic shares outstanding. Pursuant to the Arrangement, the oil and gas assets will be conveyed to Coelacanth at closing using the lower of the implied trading value of Coelacanth within Leucrotta (adjusted for estimated cash) and $85 million. Coelacanth looks forward to providing more information on its business plan in the upcoming week

FORWARD-LOOKING INFORMATION

This document contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words 'expect', 'anticipate', 'continue', 'estimate', 'may', 'will', 'should', 'believe', 'intends', 'forecast', 'plans', 'guidance' and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's risk management program, oil and condensate, other NGLs, and natural gas production, operating expenses, capital programs, and adjusted working capital. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions relating to prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success of drilling new wells, the availability of capital to undertake planned activities, and the availability and cost of labour and services. Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs, and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in tax, royalty, and environmental legislation. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the coming year. The forward-looking statements and information may not be appropriate for other purposes. The Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities law.

Contact:

Tel: (403) 705-4525

Web: www.leucrotta.ca

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