WESTGATE ENERGY ANNOUNCES CONDITIONAL ACCEPTANCE OF WARRANT EXERCISE INCENTIVE PROGRAM

Executive Summary

• Westgate Energy received conditional acceptance from the TSX Venture Exchange to launch a warrant exercise incentive program covering 16,241,267 outstanding common share purchase warrants.
• The program allows holders who exercise eligible warrants between March 25 2026 and April 24 2026 to receive an additional half‑warrant for each exercised warrant, potentially issuing up to 8,270,633 Incentive Warrants.
• Expected gross proceeds from early exercise are up to approximately C$3.9 million, which the company plans to use for pre‑drilling costs, operating cost reductions at Beaverdam, and general working capital.

Key Details

• Eligible Warrants: 16,241,267 warrants issued in a best‑efforts offering that closed on April 2 2025; exercise price $0.24 per share, exercisable until April 2 2027.
• Incentive Period: March 25 2026 – 4:30 p.m. Calgary time, April 24 2026.
• Incentive Warrant Terms: For each exercised eligible warrant, holder receives one original share plus half of an additional warrant; each full Incentive Warrant gives the right to purchase one share at $0.35 per share, exercisable until October 24 2027.
• Acceleration Event: If TSXV VWAP ≥ $0.45 for ten consecutive trading days, Westgate may accelerate expiry of Incentive Warrants (expire 30 calendar days after notice).
• Expected Issuances & Proceeds:
• Up to 16,241,267 Warrant Shares from exercised eligible warrants.
• Up to 8,270,633 Incentive Warrants issued.
• Gross proceeds up to C$3,897,900.
• Use of Proceeds: Funding pre‑drilling costs for a potential spring drilling program, additional operating cost reduction activities at the Beaverdam field, and general working capital.
• Supplemental Warrant Indenture: To be entered into with Odyssey Trust Company; will supplement the original warrant indenture dated April 2 2025. Copy available on SEDAR+ before March 25 2026.
• Statutory Hold Period: Incentive Warrants and any shares issued upon their exercise are subject to a four‑month‑plus‑one‑day hold period.
• Insider/Control Person Restrictions: Incentive Warrants cannot be exercised if doing so would cause the holder to become a new insider or control person without TSXV approval.

Notable Quotes

(No direct quotes were provided in the release.)