Petro-Victory Energy Corp. announced that it has entered into a definitive option agreement and assignment of interest with Azevedo Travassos Petroleo S/A ("ATP") is a Brazilian company engaged in the exploration and production of crude oil and natural gas. ATP started its operations in the Potiguar Basin in 1984, becoming the first Brazilian private company to explore oil and gas in the region.

Currently, ATP enhances its portfolio of oil and natural gas production assets through M&A operations, acquisition of third-party fields, and operational partnerships. Its parent company, Azevedo & Travassos S/A, is listed on the Brazilian Stock Exchange, trading its shares under the tickers AZEV3 and AZEV4. ATP will pay 100% of the work program, which initially consists of drilling and completing the AND-4 and AND-5 wells in the Andorinha field and a workover in the CR-2 well located in the POT-T-281 block.

ATP will receive 75% (seventy-five percent), Petro-Victory will receive 25% (twenty-five%) of the net income generated by the production of these wells, until the CAPEX for the work program provided by ATP is fully recovered. Thereafter, the net income generate by the production of these wells will be split 50% to each company. Petro-Victory remains operator of the Andorinha field, and the POT-T-28 block.

ATP may, at its sole discretion, offer its engineering services, construction and assembly of oil production facilities and well drilling, completion and maintenance services. The agreement also establishes the commitment to hire a third-party independent engineering firm to certify the reserves of the AndorinHA field and the POT-T -281 block after the completion of the work program. ATP will have an option to buy 50% of both assets at a pre-determined price of USD 10.00 per barrel of proven reserves (1P) and USD4.00 per barrel of probable reserves.

This option must be exercised within 9 (nine) months from today's date, provided that this period is sufficient to finalize the new reserve report after the completion of the work programs. The partnership between Petro-Victory and ATP creates potential for growth and further developments with the aim of extending market reach and capturing new synergies between the two companies and their operating assets. Actual results achieved will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. The above summary of assumptions and risks related to forward-looking statements in this press release has been provided in order to provide shareholders and potential investors with a more complete perspective on Petro Victory's current and future operations, and such information may not be appropriate for other purposes.

There is no representation by Petro Victory that actual results achieved will be the same in whole or in part as those referenced in the forward-looking statements, and Petro Victory does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.