Bonavista Completes Recapitalization Transaction

Calgary, Alberta – Bonavista Energy Corporation (TSX: BNP) (“Bonavista” or the “Company“) today announced the completion of its previously announced recapitalization transaction (the “Recapitalization Transaction“) as further described in the Company’s management information circular dated July 2, 2020 and implemented pursuant to a court-approved plan of arrangement under the Canada Business Corporations Act (the “Plan of Arrangement“). As previously announced, pursuant to the approvals obtained in respect of the Plan of Arrangement all existing shareholders, other than G2S2 Capital Inc. (“G2S2“), and its affiliates and associates, will receive $0.05 in cash in exchange for each of their pre-consolidation Common Shares under the Plan of Arrangement to be paid by G2S2.

“We are grateful for the support of stakeholders and business partners to proceed with closing of the Recapitalization Transaction,” said Jason Skehar, President and Chief Executive Officer of Bonavista. “By significantly reducing our outstanding debt obligations and balancing our capital structure with the closing of this Recapitalization Transaction, Bonavista will be in superior position to pledge sustainability in practically any commodity price environment and effectively pursue our strategic objectives. We thank all stakeholders, our directors and our employees for their support and commitment to Bonavista.”

The Company expects its Common Shares to be delisted from the Toronto Stock Exchange on or about August 12, 2020.