LEUCROTTA ANNOUNCES Q4 2021 FINANCIAL AND OPERATING RESULTS

CALGARY - LEUCROTTA EXPLORATION INC. (TSXV - LXE) ('Leucrotta' or the 'Company') is pleased to announce its financial and operating results for the three months and year ended December 31, 2021.

HIGHLIGHTS

Achieved production of 5,000 boe/d in late Q4/21 and exited December 31, 2021 with approximately 4,500 boe/d of production. Estimated production for Q1/22 average is approximately 4,300 boe/d.

December 31, 2021 adjusted working capital (1) balance of $30.3 million.

Increased adjusted funds flow (1) by 678% to $6.3 million in Q4 2021 from $0.8 million in Q4 2020.

Entered into an arrangement agreement whereby Vermilion Energy Inc would acquire all of the issued and outstanding common shares of Leucrotta ('Leucrotta Shares') in exchange for $1.73 cash per Leucrotta Share, 1.0 common share of a new Montney-focused exploration and production company ('ExploreCo'), and 0.1917 of an ExploreCo common share purchase warrant.

Entered into gas processing and battery funding agreements with NorthRiver Midstream Inc. ('NRM') to provide 50 mmcf/d of firm processing capacity at NRM's West Doe gas processing facility and provide up to $55 million of capital funding that Leucrotta will use to construct a battery facility at Mica.

Gas Processing and Battery Funding Agreements

On March 17, 2022, the Company has entered into a 10-year gas processing agreement with NorthRiver Midstream Inc. ('NRM') to provide 50 mmcf/d of firm processing capacity at NRM's West Doe gas processing facility. The agreement commences after the construction of the Mica Battery and is subject to a ramp-up period. Leucrotta will also hold certain rights to additional firm processing capacity that, along with Leucrotta's owned 25 mmcf/d processing facility at Doe, will allow Leucrotta to reach 25,000 boe/d in the Mica area. There is no commitment for the Company until it makes a final investment decision. Concurrent with this agreement, NRM has agreed to provide up to $55 million of capital funding that Leucrotta will use to construct a battery facility at Mica (the 'Mica Battery'). The Mica Battery will consist of facilities for in-field processing of oil, gas and water and will deliver gas to NRM's West Doe gas processing facility. The Mica Battery will have an initial capacity of 60 mmcf/d expandable to 90 mmcf/d with added compression

Proposed Corporate Transaction

On March 28, 2022, the Company announced that it had entered into an arrangement agreement (the 'Arrangement') whereby Vermilion Energy Inc. ('Vermilion') would acquire all of the issued and outstanding common shares of Leucrotta ('Leucrotta Shares') in exchange for $1.73 cash per Leucrotta Share, 1.0 common share of a new Montney-focused exploration and production company ('ExploreCo'), and 0.1917 of an ExploreCo common share purchase warrant (one whole warrant being an 'ExploreCo Arrangement Warrant'). Each ExploreCo Arrangement Warrant will entitle the holder to acquire one ExploreCo common share at an exercise price of $0.27 per share at any time on or before 30 days following the closing of the Arrangement. The Arrangement is expected to close late May 2022. Under the terms of the Arrangement, ExploreCo will receive approximately $43.5 million cash, net of transaction costs, and certain oil and gas properties in the Two Rivers, BC area. In addition, ExploreCo plans to raise net proceeds of up to $36.9 million through the exercise of the ExploreCo Arrangement Warrants and two private placement financings. The proceeds of the financings will be used to fund future capital projects.

FORWARD-LOOKING INFORMATION

This document contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words 'expect', 'anticipate', 'continue', 'estimate', 'may', 'will', 'should', 'believe', 'intends', 'forecast', 'plans', 'guidance' and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's risk management program, oil and condensate, other NGLs, and natural gas production, operating expenses, capital programs, and adjusted working capital. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions relating to prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success of drilling new wells, the availability of capital to undertake planned activities, and the availability and cost of labour and services. Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs, and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in tax, royalty, and environmental legislation. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the coming year. The forward-looking statements and information may not be appropriate for other purposes. The Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities law.

Contact:

Tel: [phone]

Web: www.leucrotta.ca

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