NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES

REGINA, SK / ACCESSWIRE / February 16, 2023 / ROK Resources Inc. ("ROK" or the "Company") (TSXV:ROK) is pleased to announce the results of its December 31, 2022 independent reserves evaluation. The evaluation for the Company as at December 31, 2022 was conducted by McDaniel & Associates ("McDaniel") of Calgary and was conducted in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluators Handbook ("COGEH") and National Instrument 51-101 - Standards for Disclosure of Oil and Gas Activities ("NI 51-101"). The reserve volumes do not include the Company's recent acquisition, defined in the news release dated January 24, 2023. ROK has engaged McDaniel to prepare a proforma corporate reserves update, which is expected to be released in Q2 2023. For a summary of the acquisition reserves, please refer to the section below entitled 2023 Acquired Reserves.

2022 Reserves Highlights

ROK's 2022 reserves evaluation reflects the addition of 6.4 million Boe of PDP reserves to a total of 6.8 million Boe, representing a 1,600% increase year-over-year. ROK also materially increased Total Proved reserves (850%) and Total Proved plus Probable reserves (680%), due largely to the acquisition of Federated Co-op Limited's assets in March 2022.

• Proved oil and gas reserves ("1P") of 9,727,000 Boe and Net Present Value of 1P reserves discounted at 10% ("NPV10") of $135,762,800
• Proved plus probable oil and gas reserves ("2P") of 16,043,800 Boe and Net Present Value of 2P reserves discounted at 10% ("NPV10") of $218,778,700
• Total 1P NAV⁹ of $0.47/basic share and 2P NAV⁹ of $0.87/basic share, a YoY increase of 213% and 164%, respectively
• Finding, Development and Acquisition ("FD&A")⁸ costs, including changes in Future Development Capital ("FDC")³, of:
  • PDP: $16.43/boe
  • 1P: $16.62/boe
  • 2P: $12.78/boe
• With a 2022 average operating netback⁷ of $48.08/boe (before hedge gains), FD&A Recycle Ratios of:
  • PDP: 2.9x
  • 1P: 2.9x
  • 2P: 3.8x

Notes

1. Reserves from Acquisition may differ from previous disclosure due to well underperformance or outperformance
2. The inflation rate is 0% in 2023, 2.3% per year in 2024 and 2% per year starting in 2025
3. Estimated future undiscounted development costs, in dollars, at December 31, 2022 were CAD $85.2 million for proved reserves and CAD $124.7 million for proved plus probable reserves
4. Report includes well & facility abandonment and reclamation costs of CAD $75.8 million (with inflation) for the proved plus probable case.
5. The net present values disclosed may not represent fair market value.
6. Totals may not add exactly due to rounding.
7. Operating netback calculated by taking all revenue, less royalties and operating costs. Hedge gains/losses are not included.
8. Development and Exploration capex in 2022 was $27.3 million. Total acquisition cost associated with the 2022 Federated Coop transaction, net of purchase price adjustments, was $57.9 million.
9. Net Asset Value ("NAV") includes NPV10 of 1P and 2P reserves, respectively, less net debt balance of $35.4 million as of December 31, 2022, divided by 211,580,484 outstanding common shares.

2023 Acquired Reserves

Subsequent to December 31, 2022, ROK closed an acquisition of strategic Southeast Saskatchewan assets in the Company's core operating area, as disclosed in the news release dated January 24, 2023. The associated reserves, as prepared by McDaniel effective September 1, 2022, are not included in the 2022 year-end reserves, but are shown below for reference purposes only. Please note, these reserves are subject to change in the Company's proforma reserves update, expected to be completed in Q2 2023. Also note, these reserves do not include the non-core divesture that ROK completed in conjunction with the acquisition.

• PDP Reserves / NPV 10%: 2.3 MBoe / $36 million
• Total Proved Reserves / NPV 10%: 7.1 MBoe / $96 million
• Total Proved + Probable Reserves / NPV 10%: 10.4 MBoe / $155 million

About ROK

ROK is primarily engaged in exploring for petroleum and natural gas development activities in Southeast Saskatchewan and the Kaybob South area of Alberta. It has offices located in both Regina, Saskatchewan, Canada and Calgary, Alberta, Canada. ROK's common shares are traded on the TSX Venture Exchange under the trading symbol "ROK".

For further information, please contact:

Cameron Taylor, Chairman and Chief Executive Officer
Bryden Wright, Chief Operating Officer
Lynn Chapman, Chief Financial Officer
Jared Lukomski, Senior Vice President, Land & Business Development
Phone: (306) 522-0011
Email: investor@rokresources.ca

Advisories

Boe Disclosure

The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in the report are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.

Reserve Disclosure

All reserves information in this news release was prepared by McDaniel & Associates ("McDaniel"), effective December 31, 2022, using the reserve evaluators January 1, 2022 forecast prices and costs in accordance with National Instrument 51-101 - Standards of Disclosure of Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook"). Our oil and gas reserves statement for the year ended December 31, 2022, which will include complete disclosure of our oil and gas reserves and other oil and gas information in accordance with NI 51-101, will be available on our SEDAR profile at www.sedar.com. All reserve references in this news release are "Company gross reserves". Company gross reserves are the Company's total working interest reserves before the deduction of any royalties payable by the Company and before the consideration of the Company's royalty interests. It should not be assumed that the present worth of estimated future cash flow of net revenue presented herein represents the fair market value of the reserves. There is no assurance that the forecast prices and cost assumptions will be attained, and variances could be material. The recovery and reserve estimates of ROK's crude oil, NGLs and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and NGLs reserves may be greater than or less than the estimates provided herein. The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation. Please note that all amounts are in Canadian dollars unless otherwise stated. Reserves volumes reported are "Total Company Interest Reserves", a classification of reserves used in the evaluation which represents production and reserves before deduction of royalties.

This news release contains metrics commonly used in the oil and natural gas industry, such as "recycle ratio", "finding and development costs", "finding, development and acquisition costs", "future development capital", and "operating netback per boe". Each of these metrics are determined by the Company as specifically set forth in this news release. These terms do not have standardized meanings or standardized methods of calculation and therefore may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons. Such metrics have been included to provide readers with additional information to evaluate the Company's performance however, such metrics are not reliable indicators of future performance and therefore should not be unduly relied upon for investment or other purposes. Recycle Ratio is calculated as operating netback per boe divided by F&D costs on a per boe basis. ROK's annual 2022 production averaged 2,760 boe per day. Management uses these metrics for its own performance measurements and to provide readers with measures to compare ROK's performance over time.

Both F&D and FD&A costs take into account reserves revisions during the year on a per boe basis. The aggregate of the costs incurred in the financial year and changes during that year in estimated FDC may not reflect total F&D costs related to reserves additions for that year. Finding and development costs both including and excluding acquisitions and dispositions have been presented in this news release because acquisitions and dispositions can have a significant impact on our ongoing reserves replacement costs and excluding these amounts could result in an inaccurate portrayal of our cost structure.

NPV10 debt adjusted per share metrics disclosed herein are based on 211,580,484 common shares issued and outstanding as at December 31, 2022, on a non-diluted basis, and year-end net debt of $35.4 million.

Unaudited Financial Information

Certain financial and operating information included in this news release for the year ended December 31, 2022, including, without limitation, acquisitions, finding and development costs, finding, development and acquisition costs, recycle ratio, operating netbacks and debt. This information is based on estimated unaudited financial results for the year then ended, and are subject to the same limitations as discussed under Forward-Looking Information set out below. These estimated amounts may change upon the completion of audited financial statements for the year ended December 31, 2022 and changes could be material.

Abbreviations

Bopd Barrels of oil per day

Boe Barrels of oil