Saturn Oil & Gas Inc. Announces Initiation of Field Development, New Addition to Senior Management, Conversion of Special Warrants and Options Grant

Saturn commences development drilling and workover program in SE Saskatchewan
Kevin Smith joins the leadership team as Vice President Corporate Development
Special warrants have converted to free trading common shares and share purchase warrants
The board of directors has approved the grant of 3.5 million incentive stock options

Calgary, Alberta–(Newsfile Corp. – July 6, 2021) – Saturn Oil & Gas Inc. (TSXV: SOIL) (FSE: SMK) (“Saturn” or the “Company”) is pleased to announce the start of field development activities in Southeast Saskatchewan, the appointment of Kevin Smith as Vice President Corporate Development, the conversion of the special warrants issued in conjunction with the oversubscribe $32.2 million private placement equity offering, into free trading common shares and share purchase warrants and the granting of incentive stock options to directors, officers, employees and consultants.

An updated corporate presentation has been posted to Saturn’s website: www.saturnoil.com.

Initiation of Field Development Activities

Saturn has started field development activities in Southeast Saskatchewan on the recently acquired Oxbow asset. Two new non-operated wells are scheduled to be drilled this summer, with the first well being spudded in June and the second well to spud following rig release of the first drilling location. The wells are targeting Alida formation light oil in the Queensdale area. Saturn has also engaged two service rigs in an ongoing workover campaign to maintain base production.

“Saturn has quickly transitioned from the acquisition of the opportunity rich Oxbow asset in Southeast Saskatchewan to now focusing on developing the vast light oil resources in place,” said John Jeffrey, CEO of Saturn. “We are encouraged by the smooth transition in taking over operatorship through the support of our highly qualified operations team at the field level.”

Appointment of Kevin Smith, Vice President Corporate Development

Saturn is pleased to announce that Mr. Kevin Smith has been appointed Vice President Corporate Development on a full-time, permanent basis. Mr. Smith has over 20 years experience in the energy and financial services industries and most recently held the position of Vice President Business Development for Renaissance Oil Corp., since its inception, building the first independent oil and gas producer in Mexico, in over 80 years. Mr. Smith has held senior investment banking roles with Paradigm Capital Inc., Macquarie Capital Markets Canada Ltd. and HSBC Securities Inc., has a Bachelor of Commerce (Distinction) from the University of Alberta and an MBA (Finance) from Ivey School of Business.

Conversion of Special Warrants

On June 30, 2021, the Company received a receipt for its final short-form prospectus qualifying the issuance of units (“Units”) underlying the Company’s 268,333,333 previously issued special warrants. One Unit per special warrant will be automatically issued effective July 6, 2021 in accordance with the terms of a special warrant indenture dated June 2, 2021, as amended and supplemented between the Company and the special warrant agent. Each Unit is comprised of one common share in the capital of the Company (each a “Common Share”) and one Common Share purchase warrant (each a “Warrant”), each Warrant entitling the holder thereof to purchase one Common Share (each a “Warrant Share”) in the capital of the Company at an exercise price of $0.16 per Warrant Share for 24 months from date of issuance of the special warrants.

Granting of Incentive Stock Options

The board of directors of Saturn has authorized the granting of inventive stock options to directors, officers, employees and consultants entitling them to purchase up to a total of 3,500,000 common shares at a price of $0.145 per share for a period of five years.

About Saturn Oil & Gas Inc.

Saturn Oil & Gas Inc. is a growing Canadian energy company focused on generating positive shareholder returns through the continued responsible development of high-quality, light oil weighted assets, supported by an acquisition strategy that targets highly accretive, complementary opportunities. Saturn has assembled an attractive portfolio of free-cash flowing, low-decline operated assets in Southeastern Saskatchewan and West Central Saskatchewan that provide an inventory of long-term economic drilling opportunities across multiple zones. With an unwavering commitment to building an ESG-focused culture, Saturn’s goal is to increase reserves, production and cash flows at an attractive return on invested capital. Saturn’s shares are listed for trading on the TSX.V under ticker ‘SOIL’ and on the Frankfurt Exchange under symbol ‘SMK’.

Further information and a corporate presentation is available on Saturn’s website at http://www.saturnoil.com/.

Saturn Oil & Gas Investor & Media Contacts:

John Jeffrey, MBA – Chief Executive Officer
Tel: +1 (587) 392-7902
www.saturnoil.com

Kevin Smith, MBA – VP Corporate Development
Tel: +1 (587) 392-7900
info@saturnoil.com

Reader Advisory

Forward-Looking Information and Statements

Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project”, “scheduled”, “will” or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to, the proposed share consolidation (and approvals thereto); effects of the share consolidation; impacts on share pricing and liquidity levels; completion of the brokered and non brokered financings and aggregate purchased thereunder, timing of the share consolidation; receipt of required legal and regulatory approvals for the completion of the share consolidation (including approval of the TSXV); future consolidation opportunities and acquisition targets; and the business plan, cost model and strategy of the Company.

The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Saturn, including expectations and assumptions concerning the receipt of all approvals and satisfaction of all conditions to the completion of the share consolidation, the timing of and success of future drilling, development and completion activities, the performance of existing wells, the performance of new wells, the availability and performance of facilities and pipelines, the geological characteristics of Saturn’s properties, the application of regulatory and licensing requirements, the availability of capital, labour and services, the creditworthiness of industry partners and the ability to source and complete asset acquisitions.

Although Saturn 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 Saturn 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; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), constraint in the availability of services, commodity price and exchange rate fluctuations, the current COVID-19 pandemic, actions of OPEC and OPEC+ members, changes in legislation impacting the oil and gas industry, adverse weather or break-up conditions and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. These and other risks are set out in more detail in Saturn’s Annual Information Form for the year ended December 31, 2020.

Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect. Although Saturn believes that the expectations reflected in its forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because Saturn can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding and are implicit in, among other things, the timely receipt of any required regulatory approvals and the satisfaction of all conditions to the completion of the share consolidation. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used.

The forward-looking information contained in this press release is made as of the date hereof and Saturn undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.

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 press release.

All dollar figures included herein are presented in Canadian dollars, unless otherwise noted.