Outlook

Following the Company's recent USD 24.8 million partial sale of its royalty assets, the elimination of all bank indebtedness and the establishment of a USD 55.6 million reserve-based credit facility, i3 is well positioned to execute its USD 50.9 million 2024 capital programme. The programme will be fully funded from existing Company resources and is designed to balance growth, financial discipline, and a sustainable long term-dividend through a predictable development-focused programme, all while positioning the Company to commence its Simonette Montney pad development drilling in Q1 2025.

The Company has an ongoing campaign of scouting, surveying and acquiring key surface locations to ensure a large inventory of drillable oil and gas locations, allowing it to pivot operationally to respond to commodity price movements and operational risks, as they occur.

The capital programme will be focused on the second half of the year, with 85% of the capital deployed over the balance of 2024. As such, the 2024 programme anticipates drilling operations will commence in late Q2, with continuous operations through to year-end. Should it be the case that the forward strip forecast for commodity prices deviates from the Company's budgeted projections, the Company is well positioned to both reallocate its drilling locations to optimize economic returns or capitalize on strategic accretive acquisitions as they are identified.

The Company is extremely pleased with recent objectives completed and is excited to have realized increased liquidity on its balance sheet which, combined with stable cash flows, can be used to support both its organic and inorganic initiatives during the remainder of 2024.

The Company is pleased to present a snapshot of our Q1 2024 financial results below. i3's unaudited condensed interim financial statements for the three months ended 31 March 2024 and related Management's Discussion and Analysis ("MD&A") are available on i3 Energy's website at https://i3.energy/ and filed on SEDAR+.