Chronos Resources Ltd. entered into a definitive agreement to acquire Samoth Oilfield Inc. (TSXV:SCD) in a reverse merger transaction on November 7, 2022. As per the terms of the transaction, each issued and outstanding common share in the capital of Chronos will be acquired by Samoth in exchange for twenty common shares in the capital of Samoth at a deemed price of CAD 0.035 per Samoth Share, with the final number of Samoth Shares to be issued being determined based on the size of the Financing; and Samoth will complete a consolidation of the Samoth Shares on the basis of one (1) post-consolidation Samoth Share for every eight (8) pre-consolidation Samoth Shares, representing an exchange ratio, on a post-Consolidation basis, of two and a half (2.5) Resulting Issuer Shares at a deemed price of CAD 0.28 per Resulting Issuer Shares for every Chronos Share. Pursuant to the transaction, Chronos will complete an equity private placement (the "Financing") for maximum aggregate gross proceeds of CAD 65 million. Post deal completion, the resulting issuer created from the combination of Samoth and Chronos (the "Resulting Issuer") will be renamed "Lycos Energy Inc." (the "Name Change") and is expected to trade on the TSX Venture Exchange (the "TSXV") under the new stock symbol "LCX". Chronos and Samoth will complete a business combination which will result in the reconstitution of the management team and board of directors of Samoth with the current management team (the "New Management Team") and board of directors (the "New Board") of Chronos. The New Management Team will be led by Dave Burton as President and Chief Executive Officer, Lindsay Goos as Chief Financial Officer, Jamie Conboy as Vice President, Exploration, Kyle Boon as Vice President, Operations and Jeff Rideout as Vice President, Land. The New Board will be comprised of Dave Burton, Kevin Olson, Ian Atkinson, Ali Horvath, Bruce Beynon, Don Cowie, and Kel Johnston. Sanjib (Sony) Gill, a partner in the Calgary office of the national law firm Stikeman Elliott LLP, will act as Corporate Secretary. In addition, Neil Roszell will serve as a Special Advisor to the New Board.

Completion of the Acquisition is subject to the satisfaction of a number of conditions, including, but not limited to: (i) receipt of the approval of shareholders of Chronos; (ii) receipt of conditional approval from the TSXV for the Transaction and the issuance of Samoth Shares pursuant to the Transaction; (iii) completion of the Financing, which shall be deemed to occur once the net proceeds of the sale of the Subscription Receipts (as defined below) are released to Chronos and the subscription receipts (the "Subscription Receipts") of Chronos are exchanged for Chronos Shares, which shall occur upon the Escrow Release Conditions (as defined below) being satisfied, as described below; (iv) all conditions under the Agreement (other than the issuance of Samoth Shares necessary to complete the Transaction) having been satisfied or waived; and (v) receipt of all other required regulatory, governmental, approval of the Exchange for the issuance and listing of the Samoth Shares issuable in connection with the transaction and third party approvals. The Transaction is expected to be completed on or about December 12, 2022. The Resulting Issuer is expected to have a net cash position of approximately CAD 63.2 million. National Bank Financial Inc., DeltaCap Partners Inc. and Everleaf Capital Corp. are acting as Financial Advisors to Chronos with respect to the Transaction and the Subscription Receipt Private Placement. Chronos will be paying advisory fees to National Bank Financial Inc., DeltaCap Partners Inc. and Everleaf Capital Corp. in connection with the Transaction and the Subscription Receipt Private Placement, as applicable. Sony Gill of Stikeman Elliott LLP is acting as legal counsel to Chronos in respect of the Acquisition and the Financing and will act as counsel to the Resulting Issuer upon completion of the Transaction. Odyssey Trust Company acted as depository bank to Samoth. Lloyd McLellan of Borden Ladner Gervais LLP acted as legal advisor to Samoth.