Whitebark Energy Limited announced the commencement of hydraulic fracture stimulation operations at the Rex-4 development well at the Company's 100% owned Wizard Lake Oil and Gas Field in Alberta, Canada. The Company successfully ran 4 1/2" production liner on 12-13 August 2022 which was designed to accommodate 50 hydraulic fracture stimulation stages in the target Rex Sandstone reservoir. The Rex-4 development well achieved all of its objectives, landing the entire lateral section in the Rex Sandstone reservoir and demonstrating oil-saturation throughout the wellbore.

2,318 metres of the Rex Sandstone section has been drilled at approximately 1,420 metres True Vertical Depth per the drilling plan, encountering 100% reservoir sand. The lithology of the Rex Sandstone is fine to upper-medium grained, moderately sorted sandstone with good intragranular porosity. Returned drill cuttings demonstrated dull yellow fluorescence with instant milky white slow streaming cut fluorescence, indicative of the presence of crude oil.

The fracture stimulation program is the most ambitious yet at Wizard Lake and is consistent with the strategic plan of increased horizontal length and a greater number of fracture stages than in previous wells following recent best-practice demonstrated in neighbouring fields. Each 30 Tonne frac will have 1 tonne of 50/140 sand followed by 29 tonnes of 16/30 sand with final concentrations of 800-1000 kg/m3. As determined in the strategic development plan the Company plans to manage the Rex-4 wellbore carefully as it is brought into stabilised production, learning from previous experiences at Rex-1 through Rex-3. This will involve allowing the wellbore to rest for up to one week to allow the wellbore to heal naturally from the fracture stimulation program.

This process will help ensure that the frac sand stays in zone and maximizes the well's reserve potential. Rex 4 will be brought online gradually, with initial production constrained to 75 bopd and slowly increased over the course of 6 weeks to the modelled stabilised initial production rate of 300 bopd plus associated gas. We believe that this strategy will contribute to greater well lifespan and increased ultimate productivity.

Whitebark has modelled initial post-clean up production rates of approximately 300 barrels of oil and 1,400 mscf gas per day which will lift total Wizard Lake production to approximately approx. 750 boepd. The Company expects ultimate recovery of approximately 146,000 barrels of oil and 1.3 Bcf gas from Rex-4. The Rex Sandstone Member producing horizon, interpreted as a channel sandstone facies, is at 1,403m-1,455m True Vertical Depth as defined by wells Rex-1 through Rex-3, and was first discovered at Wizard Lake by Rex-1 in December 2018.

The Rex-1 horizontal section lies at approx. 1,415m TVD and is 1,200m in length with 27 fracture stages. Rex-2 was drilled in mid-2019, with a horizontal section 1,450m in length at between 1,415 and 1,430m depth, and 35 fracture stages.

The Rex-3 (January 2020) lateral section demonstrates the greatest depth variation (1,412- 1,450m TVD) without breaching the channel floor or ceiling and demonstrates the reservoir sand thickness. The horizontal section is 2,100m in length and has 46 fracture stages. Top reservoir was encountered at 1,403m TVD and the well demonstrates a 50m oil column with no transition zone observed.

All three were successful and are currently on production with total production of approximately 140,000 barrels of oil and 1.0 bcf of gas to date. Rex-4 was designed to achieve greater lateral extent within the Rex Sandstone reservoir sufficient to accommodate 50 hydraulic fracture stimulation stages. The well targeted essentially virgin reservoir pressure to the north of the Wizard Lake well pad, adjacent and to the north-west of the Rex-1 well location.

It is planned for the next four Wizard Lake wells (Rex-5 through Rex-8) to address existing Proved (1P) Reserves which is calculated to be 2.3 million barrels of oil equivalent. Whitebark plans to drill and complete all four wells from the existing well pad without further infrastructure investment required. The Company has identified 20 additional development locations which will target the remainder of the Company's 2P reserves (5.12 million barrels of oil equivalent in total) and contingent resources (an additional 4.7 mmboe).