Strathcona Resources Ltd. announced a strategic partnership with Canada Growth Fund ("CGF"), a $15 billion arm's-length public investment vehicle, for the development of carbon capture and sequestration (CCS) infrastructure on Strathcona's steam-assisted gravity drainage (SAGD) oil sands facilities across Saskatchewan and Alberta. Under the terms of the arrangement, CGF will invest up to $1 billion toward CCS infrastructure on Strathcona' assets, with an initial commitment of $500 million. Strathcona will construct, operate and own the CCS infrastructure, with 50% of the initial capital costs funded by CGF and 50% by Strathcona.

Substantially all of Strathcona's share of capital costs is expected to be recouped through the federal CCS investment tax credit and other grants. All of Strathcona's oil sands facilities in the Lloydminster and Cold Lake regions lie directly atop suitable CO2 storage reservoirs, allowing for local injection. This differs from the majority of Canada's oil sands facilities in the Athabasca region of Northern Alberta, which must be captured and transported to a suitable injection site before sequestration.

In 2024, the Government of Saskatchewan granted Strathcona subsurface CO2 sequestration rights, making Strathcona the first and only oil sands producer in Canada with approval to capture and store CO2. Strathcona currently produces approximately 90,000 bbls /d of heavy oil and bitumen from its SAGD assets, with associated emissions of approximately three million tonnes of CO2 per annum. The up to $2 billion of combined capital to be deployed through the partnership is expected to capture up to two million tonnes of CO2 per annum, based on preliminary capital cost expectations.

Strathcona entering into an area dedication of the CO2 volumes from its SAGD facilities; However, it cannot assure readers that these expectations will prove to be correct. The forward-looking information included in this press release is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information, including, without limitation: the risk that the arrangement with CGF may not provide the anticipated benefits to Strathcona; the risk that the CCS facilities may not meet its funding obligations under the terms of the arrangement; the risk that the C CS facilities may not reduce emissions attributable to Strathcona's operations; the risk that the CMS investment tax credit and other grants may not be available or available on the terms expected; changes in general economic, market and business conditions; industry conditions; actions by governmental or regulatory authorities including increasing taxes, amending or revoking permits and changes in investment or other regulations; changes in tax laws and incentive programs; changes in carbon tax and credit regimes; competition; the lack of availability of qualified personnel or management; credit risk; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; ability to comply with current and future environmental or other laws; stock market volatility and market valuations; ability to obtain required approvals of regulatory authorities; ability to access sufficient capital from internal and external sources; and external sources; and the other factors discussed under the "Risk Factors" section in Strathcona's Management's Management's Management's Discussion & Analysis and Annual Information Form, each for the year ended December 31, 2023, 2023, and Annual Information Form, 2023, and Annual information. The foregoing risks should not be available at time to time to time to time to Strathcona's public disclosure documents, which are available at time to time to Strath Con Con disclosure documents, and Annual Information Form, which are available at the company's public disclosure documents, and from the company's public disclosure documents.

The foregoing risks should not been provided at time to Strathcona.