PetroShale Announces Closing of Raised Equity Financing

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CALGARY, Alta., February 2, 2022 /CNW/ – PetroShale Inc. (“PetroShale“or the”Society“) (TSXV: PSH) (OTCQB: PSHIF) is pleased to announce that, following the Company’s press release dated January 13, 2022PetroShale closed the Company’s oversubscribed non-brokered and brokered private placements, raising gross proceeds of $54.5 million (together, the “Private Pitches“).

Under the non-brokered private placement, PetroShale issued 23,750,000 units (the “Units“) at the price of $0.40 per unit for a total product of $9.5 million (the “NoBrokerage Private Placement“). Each unit consists of one common stock of PetroShale (“Ordinary share“) and a mandate (“To guarantee“) entitling the holder to purchase one ordinary share at the price of $0.475 per common share for a period of five years from the date of issue. Warrants will vest and be exercisable at one-third of the 20-day volume weighted average trading price of the common shares (the “Trade Price“) equaling or exceeding $0.67 per common share, an additional one-third on the equal or greater trading price $0.83 per common share and the last third at the trading price equal to or greater than $0.95 per ordinary share.

Concurrent with the closing of the non-brokered private placement, the Company also closed a brokered private placement with a syndicate of agents led by Peters & Co. Limited and including Haywood Securities Inc., National Bank Financial Inc., RBC Dominion Securities Inc., CIBC World Markets Inc., BMO Nesbitt Burns Inc. and ATB Capital Markets Inc. through which PetroShale issued 112,500,000 common shares at a price of $0.40 per common share for gross proceeds of $45.0 millionwhich has been increased from the original $30 million due to high demand. Through the private placements, PetroShale raised aggregate gross proceeds of $54.5 million which will be used to reduce debt and for general corporate purposes, positioning the Company to execute a disciplined business strategy. All Common Shares (including Common Shares issuable upon exercise of Warrants) and Warrants issued pursuant to the Private Placements are subject to a hold period expiring four months and one day from closing in accordance with applicable securities laws.

PetroShale also announces that under its bonus incentive plan (“Plan“), a total of 2,539,529 restricted awards and 6,320,890 performance bonuses were awarded to certain directors and officers of PetroShale. September 10, 2023, September 10, 2024 and September 10, 2025 and expires December 15, 2025. Awards may be settled by PetroShale, at the Company’s sole discretion, in cash and/or common stock, in accordance with the terms of the plan.

About PetroShale

PetroShale is an oil company engaged in the acquisition, development and production of high-quality oil-weighted assets in Bakken/Three Forks North Dakota.

This hurry Release is not a to offer of the securities for to sell in the United states. the securities have not summer registered below the we Securities Act of 1933, like amended, and can not to be Free Where sold in the United states absent registration Where a exemption from registration. This hurry Release must not constitute a to offer at to sell Where the solicitation of a to offer at to buy or must the to be any to sell of the securities in any state in Who Phone to offer, solicitation Where to sell would like to be illicit.

CHEEKYLOOKING AT STATEMENTS

This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. Use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “project”, “should”, “believe”, “plan “, “intend” and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this press release contains statements regarding the intended use of the net proceeds of the Private Placements. Although PetroShale believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as PetroShale may to give no assurance that they will prove to be accurate. Because forward-looking statements address future events and conditions, they, by their very nature, involve inherent risks and uncertainties. The intended use of the net proceeds from the Private Placements by PetroShale could change if the Board of Directors of PetroShale determines that it would be in PetroShale’s interest to deploy the proceeds for other purposes. The forward-looking statements contained in this press release are made as of the date hereof, and PetroShale undertakes no obligation to publicly update or revise any forward-looking statement or information, whether as a result of new information, events future or otherwise, except as required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE PetroShale Inc.

For further information: Brett Herman, President and CEO, PetroShale Inc., Phone: 403-266-1717; Marvin Tang, Vice President of Finance and Chief Financial Officer, PetroShale Inc., Phone: 403-266-1717

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