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CALGARY, Alberta, May 20, 2022 (GLOBE NEWSWIRE) -- In a release issued under the headline “Prospera Announces Late Filing of Annual Financial Disclosure” on Friday, May 20, 2022 by Prospera Energy Inc., please note that the corrected headline should read as “Prospera Energy Inc. Announces Summary of the Private Placement” and the press release should read as follows:

May 20, 2022, Prospera Energy Inc. (”Prospera” or the ”Company”) announces the completion of the non-brokered private placements for total proceeds of $1,478,573 previously announced on March 9, 2022.

The secured convertible debenture units raised $738,573. The debentures will bear interest of 8% per annum for a term of two years and can be converted into common share units of the Company at a conversion price of $0.05 in the first year and $0.10 in the second year. Each of these units consists of one common share and one common share purchase warrant. Each warrant is exercisable at $0.075 for a period of two years from the date of closing. The Company may force the conversion in the event that the common shares trade at $0.30 for ten consecutive business days. Applicable interest will be payable in cash or shares, at the option of the Company. Any interest payable in shares will be subject to prior TSX Venture Exchange acceptance.

Insiders have participated in this private placement which results in this being a Related Party Transaction pursuant to TSXV Policy 5.9 and MI 61-101. The Corporation is relying upon the insolvency exemption under these policies with respect to minority approval and valuation requirements.

The unit offering raised $740,000 through issuance of 9,866,667 common share units at $0.075 per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant issued through this Unit Offering will entitle the holder to acquire one additional share in the capital of the Corporation at a price of $0.10 per share for a period of two (2) years from the date the units are issued. The Corporation reserves the right to accelerate the expiry date of the warrants to fifteen (15) days, in the event the share trades at $0.125 for five (5) consecutive business days following the expiry of the four (4) months hold period.

The number of issued and outstanding shares for Prospera is now 167,210,853.

The proceeds from these financings will fund Stage one of the abandonment program of approximately 102 leases and the second phase of the development plan (horizontal drilling program). The ongoing restructuring process has transitioned the Corporation to regulatory compliance, environmentally safe operating conditions and production optimization.

About Prospera

Prospera is a public oil and gas exploration, exploitation and development company focusing on conventional oil and gas reservoirs in Western Canada. Prospera will use its experience to develop, acquire, and drill assets with potential for primary and secondary recovery.

For further information:

Chris Ludtke, VP of Finance & Accounting
Tel: (403) 454-9010
Email: [email protected]
Website: www.prosperaenergy.com

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of the Corporation, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Although Prospera believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Prospera can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., 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 reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Prospera. As a result, Prospera cannot guarantee that any forward-looking statement will materialize, and the reader is cautioned not to place undue reliance on any forward- looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and Prospera 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 expressly required by Canadian securities law.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.