Calgary, Alberta--(Newsfile Corp. - March 16, 2022) - Leucrotta Exploration Inc. (TSXV: LXE) ("Leucrotta" or the "Company") is pleased to announce its 2021 year-end reserves as independently evaluated by GLJ Ltd. ("GLJ") effective December 31, 2021 (the "GLJ Report"), in accordance with National Instrument 51-101 ("NI 51-101") and the Canadian Oil and Gas Evaluation ("COGE") Handbook. All dollar figures are Canadian dollars unless otherwise noted.

Introduction

During 2021, Leucrotta made the strategic decision to sell its Doe property for gross proceeds of $30.0 million, raise additional equity capital for gross proceeds of $34.4 million and start the PAD development of its Mica Project. Based on successful results of its first PAD and the significant delineation already completed, Leucrotta was able to deliver strong year over year reserve growth despite the sale of Doe that had 10.7 million boe (86% undeveloped) of Proved plus Probable reserves booked to the property.

The GLJ Report incorporates Leucrotta's initial move to 2,400 metre lateral lengths and increased frac intensity used on the Mica Test PAD. The report includes 14 producing wells and 26 undeveloped locations in the Lower Montney that only cover less than 10% of Leucrotta's large contiguous land base that is greater than 250 sections of Montney rights. These minimal reserve bookings leave material upside for Leucrotta to potentially book additional reserves in the future.

Leucrotta has also delineated and proven the Upper and Basal Montney productive on its land base including 2 wells in each zone but has only booked 4 Upper locations and no Basal locations leaving reserve upside of greater than 99% of its land base for these zones. The presence of stacked zones on the property will materially reduce the environmental footprint per well and enhance economics.

Leucrotta has estimated approximately 18 billion barrels of Original Oil in Place ("OOIP") and 17 trillion cubic feet of Original Gas in Place ("OGIP") over its land base. Leucrotta's business plan is to continue to develop the property, establish the ultimate reserve recoveries and move the established recoverable resource from land to its Proved plus Probable reserve base and eventually to its Producing reserve base. With regard to this, Leucrotta has made significant strides in 2021 as noted below.

Reserve Highlights

Leucrotta is pleased to report material reserve and value increases notwithstanding the sale of the Doe property that had 10.7 million boe booked as noted above:

• Increased Proved Producing reserves by 71% to 7.7 million boe from 4.5 million boe
• Increased Total Proved reserves by 43% to 21.1 million boe from 14.8 million boe
• Increased Total Proved plus Probable reserves by 16% to 50.7 million boe from 43.6 million boe
• Increased Proved Producing value by 241% to $111.2 million from $32.6 million
• Increased Total Proved Reserve value by 185% to $167.8 from $58.8 million
• Increased Total Proved plus Probable Reserve value by 143% to $393.9 million from $161.9 million
• Doubled Net Asset Value to $528.2 million from $267.0 million (Per Share increase of 60% to $2.13 per Share)

Reserves Summary

Leucrotta's December 31, 2021 reserves as prepared by GLJ effective December 31, 2021 and based on the GLJ (2022-01) future price forecast are as follows ^(1,4):

Notes:

1. Numbers may not add due to rounding.
2. "Working Interest" or "Gross" reserves means Leucrotta's working interest (operating and non-operating) share before deduction of royalties and without including any royalty interest of Leucrotta.
3. Oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil.
4. Disclosure of Net reserves will be included in Company's AIF to be filed on SEDAR at www.sedar.com on or before April 30, 2022. "Net" reserves means Leucrotta's working interest (operated and non-operated) share after deduction of royalties, plus Leucrotta's royalty interest in reserves.

Reserves Values

The estimated future net revenues before taxes associated with Leucrotta's reserves effective December 31, 2021 and based on the GLJ (2022-01) future price forecast are summarized in the following table ^(1,2,3,4):

Notes:

1. Numbers may not add due to rounding.
2. The estimated future net revenues are stated prior to provision for interest, debt service charges or general administrative expenses and after deduction of royalties, operating costs, estimated well abandonment and reclamation costs and estimated future capital expenditures.
3. The estimated future net revenue contained in the table does not necessarily represent the fair market value of the reserves. There is no assurance that the forecast price and cost assumptions contained in the GLJ Report will be attained and variations could be material. The recovery and reserve estimates described herein are estimates only. Actual reserves may be greater or less than those calculated.
4. The after-tax present values of future net revenue attributed to Leucrotta's reserves will be included in Company's AIF to be filed on SEDAR at www.sedar.com on or before April 30, 2022.

Price Forecast

The GLJ (2022-01) price forecast is as follows:

Note:

1. Escalated at two per cent per year starting in 2032 in the January 1, 2022 GLJ price forecast with the exception of foreign exchange, which remains flat.

Net Asset Value ("NAV")

Leucrotta's NAV as at December 31, 2021 and based on the GLJ (2022-01) future price forecast is as follows:

Note:

1. Undeveloped land is included at cost of approximately $665 per acre.

Reserve Life Index ("RLI")

Leucrotta's RLI presented below is based on estimated Q4 2021 average production of 3,290 boe per day.

Reserves Reconciliation

The following summary reconciliation of Leucrotta's working interest reserves compares changes in the Company's reserves as at December 31, 2021 to the reserves as at December 31, 2020 based on the based on the GLJ (2022-01) future price forecast ^(1,2):

Notes:

1. Numbers may not add due to rounding.
2. "Working Interest" or "Gross" reserves means Leucrotta's working interest (operating and non-operating) share before deduction of royalties and without including any royalty interest of Leucrotta.
3. Oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil.

Finding and Development Costs ("F&D") and Finding, Development and Acquisition Costs ("FD&A")

Leucrotta has presented FD&A and F&D costs below: