WESTGATE ENERGY ANNOUNCES CONDITIONAL ACCEPTANCE OF WARRANT EXERCISE INCENTIVE PROGRAM

WESTGATE ENERGY ANNOUNCES CONDITIONAL ACCEPTANCE OF WARRANT EXERCISE INCENTIVE PROGRAM

CALGARY, AB, March 19, 2026 /CNW/ - Westgate Energy Inc. ("Westgate" or the "Company") (TSXV: WGT), is pleased to announce that it has received conditional acceptance from the TSX Venture Exchange (the "TSXV") to commence a warrant exercise incentive program (the "Incentive Program") relating to 16,241,267 outstanding common share purchase warrants (the "Eligible Warrants") issued in connection with a best-efforts offering that closed on April 2, 2025, as previously announced by the Company in a press release dated March 9, 2026. Each Eligible Warrant is exercisable for one common share of the Company (a "Warrant Share") at a price of $0.24 per share until April 2, 2027.

Under the terms of the Incentive Program, each holder who exercises an Eligible Warrant during the period  commencing March 25, 2026 and ending at 4:30 p.m. (Calgary time) on April 24, 2026 (the "Incentive Period") will receive for each Eligible Warrant exercised: (A) one Warrant Share (being the original entitlement); and (B) one half of an additional common share purchase warrant (an "Incentive Warrant"). Each whole Incentive Warrant will entitle the holder to acquire one additional common share of the Company (an "Incentive Warrant Share") at an exercise price of $0.35 per share until 4:30 p.m. (Calgary time) on October 24, 2027.

In the event that the volume-weighted average price of the common shares of the Company on the TSXV equals or exceeds $0.45 for ten consecutive trading days (an "Acceleration Event"), the Company will be entitled to accelerate the expiry of the Incentive Warrants. If the Company elects to do so, it will issue a press release announcing the Acceleration Event, and the Incentive Warrants will thereafter expire 30 calendar days from the date of such notice.

Holders who exercise Eligible Warrants during the Incentive Period will receive the applicable number of Incentive Warrants promptly following the expiry of the Incentive Period. Except in certain limited circumstances, all Incentive Warrants will be registered and held through CDS Clearing and Depository Services Inc. or its nominee electronically through the non-certificated inventory. Holders should contact their brokers, nominees, or other intermediaries for instructions on how to exercise the Eligible Warrants.

The Incentive Warrants, and any Incentive Warrant Shares issued upon exercise thereof, will be subject to a statutory hold period of four months and one day from the date of issuance of the Incentive Warrants. Unless TSXV approval is obtained, a holder of Incentive Warrants will not be permitted to exercise such Incentive Warrants if the exercise would cause the holder to become a new Insider and/or new Control Person (as such terms are defined under the policies of the TSXV) of the Company.

The Incentive Warrants will be issued pursuant to a supplemental warrant indenture (the "Supplemental Indenture") to be entered into between the Company and Odyssey Trust Company which will supplement the warrant indenture dated April 2, 2025 in respect of the Eligible Warrants. A copy of the Supplemental Indenture will be available electronically at www.sedarplus.ca on or before March 25, 2026. The description of the Incentive Warrants is subject to, and qualified in its entirety by reference to, the detailed provisions of the Supplemental Indenture.

Eligible Warrants that remain unexercised after the Incentive Period will continue to be exercisable on their original terms until April 2, 2027. However, no Incentive Warrants will be issued in respect of any Eligible Warrants exercised after the Incentive Period.

Depending on the number of Eligible Warrants exercised during the Incentive Period, the Company expects to:

• receive gross proceeds of up to approximately $3,897,900;
• issue up to 16,241,267 Warrant Shares pursuant to the exercise of Eligible Warrants in accordance with the terms of the Eligible Warrants; and
• issue up to 8,270,633 Incentive Warrants pursuant to the exercise of the Eligible Warrants.

The proceeds received from the early exercise of Eligible Warrants are expected to be used to fund the pre-drilling costs related to the Company's potential spring drilling program, additional operating cost reduction activities at Beaverdam, as well as for general working capital purposes.

About Westgate

Westgate is focused on the emerging Mannville Stack fairway located in North-East Alberta and West Central Saskatchewan, a region with established medium and heavy oil accumulations. Producers in this fairway are increasingly unlocking these reservoirs with modern horizontal drilling and completion techniques, which have materially improved well performance and capital efficiency. Activity to date has delivered some of the strongest oil well economics in Western Canada.

For more information, please visit www.westgateenergy.ca.

Reader Advisories

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

In this press release, all references to "$" are to Canadian dollars unless otherwise noted.

ADVISORIES AND OTHER GUIDANCE         

Forward-Looking Statements

Certain statements and information contained in this press release constitute forward-looking statements or forward-looking information (collectively "forward-looking statements") within the meaning of applicable securities legislation. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words or phrases such as "will", "may", "is expected to", "anticipates", "estimates", "intends", "plans", "projects", "could", "vision", "goals", "objective", "outlook" or similar words suggesting future outcomes or language suggesting an outlook. In particular, this press release contains forward-looking statements with respect to, among other things, the following: the commencement of the Incentive Program and the term thereof; the issuance of Warrant Shares; the issuance of Incentive Warrants and the terms thereof; the issuance of a press release by the Company upon the Company determining to accelerate the expiry of the Incentive Warrants following an Acceleration Event; the entry into the Supplemental Indenture and the availability of an electronic copy thereof; and the anticipated proceeds from the Incentive Program and the use thereof.  

By their nature, forward-looking statements involve numerous assumptions, and while management of the Company believes the assumptions reflected in its forward-looking statements to be reasonable, there can be no guarantee that actual results will be consistent with these forward-looking statements. In particular, with respect to forward-looking statements contained in this press release and the documents incorporated by reference herein and therein the Company has made assumptions regarding, among other things: the entry into the Supplemental Indenture and the creation and issuance of Incentive Warrants pursuant thereto; the number of Eligible Warrants exercised pursuant to the Incentive Program; and the receipt of final approval from the TSXV.

Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release and the documents incorporated by reference herein and therein. Forward-looking statements are subject to various known and unknown risks, both general to the industry as a whole and specific to the Company, that contribute to the possibility that the forward-looking statements contained in this press release may not occur. Although management of the Company believes that the expectations reflected in its forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of known and unknown risks, uncertainties and other factors, many of which are outside the Company's control, including, but not limited to, the following risk factors: low uptake of the exercise of Eligible Warrants pursuant to the Incentive Program; and failure to receive final TSXV approval.

The above summary of assumptions and risks related to forward-looking statements are provided in this press release to provide readers with a more complete perspective on the Company's current and future operations and such information may not be appropriate for other purposes. Readers are cautioned that the foregoing lists of factors are not exhaustive. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Except as required by applicable securities laws, the Company does not undertake any obligation or is under any duty to publicly update or revise any forward-looking statements. Readers should also carefully consider the matters discussed under the heading "Risk Factors" in the Company's annual information form, a copy of which is available on the Company's SEDAR+ profile at www.sedarplus.ca.

SOURCE Westgate Energy Inc.