Blacksteel Energy Inc. Announces Farmout and Royalty Agreement

Calgary, Alberta--(Newsfile Corp. - May 14, 2024) - Blacksteel Energy Inc. ("Blacksteel" or "Corporation "or the "Farmee") announces a farmout and royalty agreement ("Agreement") between four private companies (collectively, the "Farmor") and the Corporation.

The Agreement is a strategic alliance for Blacksteel as it combines Blacksteel's existing acreage in the productive Montney play in the Girouxville East area of Alberta with the Farmor's lands. The Agreement creates a contiguous 8,000-acre block of prospective land for future development and exploration drilling. An adjacent Area of Mutual Interest (AMI) is included in the Agreement to expand the potential area by an additional 4,160 acres to 12,160 acres.

Blacksteel will acquire a 100% working interest in the 8,000-acre block by drilling three (3) wells at various times before August 31, 2025.

As a consideration for the Farmor entering into this agreement, overriding royalties will apply to the earned lands. The existing overriding royalties payable to the Farmor on Blacksteel's existing production and acreage are subject to certain terms and conditions.

President and Chief Executive Officer Arthur Madden stated, "I am convinced this Agreement is a strategic move for Blacksteel, providing an opportunity to expand our existing production base in the East Girouxville area. Increasing production and streamlining our organization should enable Blacksteel to increase shareholder value."

Blacksteel Energy Inc.

Blacksteel is a junior oil and gas company that explores, develops, and produces petroleum and natural gas resources.

Arthur Madden
President and CEO
(403) 473-8547
arthur@blacksteelenergy.ca

www.blacksteelenergy.ca

Forward-Looking Information Cautionary Statement: This document contains forward-looking statements regarding the business and operations of Blacksteel. All statements other than statements of historical fact contained herein are forward-looking statements under applicable securities laws. In particular, statements as to the Corporation's anticipated transactions are forward-looking statements. These forward-looking statements are based upon various assumptions. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "seek", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. The Corporation's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward- looking statements and, accordingly, no assurances can be given that any of the plans, intentions or expectations anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefit the Corporation will derive there from. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with oil and gas exploration; risks related to the listing and maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drilling results; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; the possibility that future exploration and development results will not be consistent with the Corporation's expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Corporation's prospects, properties and business detailed elsewhere in the Corporation's disclosure record. All subsequent forward-looking statements, whether written or oral, attributable to the Corporation or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Corporation 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 laws.

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