Petrofrontier Corp. Closes Previously Announced $15.1 Million Funding Arrangement

(TheNewswire)

Calgary, Alberta – January 7, 2025 – TheNewswire - PetroFrontier Corp.(" PetroFrontier " or the " Corporation ")( TSX-V: PFC ) is pleased to announce that its previously announcedfunding arrangement with DeerGarden Resources Ltd. (the" Funder ") to optimize development of interests held by theCorporation in the Cold Lake area of Alberta (the " Funding Arrangement ") closed on December 31, 2024.

Pursuant to the Funding Arrangement:

a) PetroFrontier assigned all itspetroleum and natural gas interests in the Cold Lake area (the" Cold LakeInterests ") to an Alberta registeredlimited partnership (the " Limited Partnership ") in exchange for 99%of the units of the Limited Partnership (the " LP Units ");

b) PetroFrontier and the Funderhave entered into definitive transaction agreements to affect theFunding Arrangement including a limited partnership agreement,unanimous shareholder agreement and contribution agreement;

c) An Alberta corporation hasbeen formed to act as general partner for the Limited Partnership (the" GeneralPartner ") and holds 1% of the LP Units andwill operate the Cold Lake Interests following qualification with theAlberta Energy Regulator to hold all applicable licenses associatedwith the Cold Lake Interests and to manage the business of the LimitedPartnership. Pursuant to the Funding Arrangement, the General Partnerwill be jointly owned by PetroFrontier and the Funder (collectively,the " Parties ");

d) The Funder will contribute theprincipal sum of $14 million to the Limited Partnership in tranches ascash is called by the General Partner for ongoing developmentactivities pertaining to the Cold Lake Interests in 2024 and 2025. For every $10,000 provided as funding theFunder will receive 1 LP unit, up to a maximum of 1,400 LPUnits. The initial development activitiesinclude the drilling of two single-leg horizontal wells and workoversof existing wells, all targeting production from the Mannville;

e) Upon fulfillment of the $14million contribution, LP Units will be held as follows:

General Partner        1%

PetroFrontier                49.5%

Funder                        49.5%;

f) Unless otherwise agreed to bythe Parties, distributable income from the Limited Partnership will bepaid out quarterly to the Limited Partners on a preferential basis(75/25 in favour of the Funder) until the earlier of the two-yearanniversary of initial cash flow from development activities under theLimited Partnership or upon receipt of $14 million in distributableincome by the Funder (and, thereafter, in proportion to the LP Unitsheld by the Parties); and

g) The Funding Arrangement alsoprovides for new debt funding from the Funder to PetroFrontier of $1.1million to reduce its outstanding accounts payable. The term of thedebt funding is for 18 months with an interest rate of 10% perannum.

About PetroFrontier Corp.

PetroFrontier is a junior energy company currentlyfocused on developing two Mannville heavy oil plays in the Cold Lakeand Wabasca areas of Alberta.

PetroFrontier’s head office is in Calgary, Albertaand its common shares are listed for trading on the Exchange under thesymbol “PFC”.

Forward-LookingStatements

This news release may containforward-looking information that involves substantial known andunknown risks and uncertainties, most of which are beyond the controlof PetroFrontier, including, without limitation, statements pertainingto the anticipated benefits of the Funding Arrangement, obtaining allnecessary approvals including final approval from the Exchange, and tomanagement’s future plans and operations.  All statements includedherein, other than statements of historical fact, are forward-lookinginformation and such information involves various risks anduncertainties.  There can be no assurance that such information willprove to be accurate, and actual results and future events coulddiffer materially from those anticipated in such information.   Anyforward-looking statements are made as of the date of this newsrelease and, other than as required by applicable securities laws,PetroFrontier does not assume any obligation to update or revise themto reflect new events or circumstances.

Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.

For More InformationContact

Kelly Kimbley, President & CEO

PetroFrontier Corp.

Suite 700, 903 - 8 Avenue S.W.

Calgary, Alberta, Canada T2P 0P7

Telephone: (403) 650-6355

Email: info@petrofrontier.com

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