NXT Announces Strategic Alliance With Synergy E&P Technologies Limited and a US$2.3 Million Convertible Debenture Financing by a Synergy Affiliate

CALGARY, Alberta, May 24, 2023 (GLOBE NEWSWIRE) -- NXT Energy Solutions Inc. ("NXT" or the "Company") (TSX: SFD; OTCQB: NSFDF) is pleased to announce a ten-year strategic alliance and associated financing with Synergy E&P Technologies Limited (“Synergy”) which grants Synergy an exclusive license to use, distribute, sub-license, market and sell NXT’s SFD solutions in Africa.

PE Energy Limited, an affiliate of Synergy, has performed several commercial projects with NXT in Africa in the past.

Synergy, with this new arrangement, will be advancing the SFD technology to address energy security in and transition in the African continent for both oil and gas and geothermal sources. Synergy and NXT will work closely together to train local technical teams and regulatory authorities on the patented SFD technology application and related knowledge transfer.

Building upon a record of successful collaborations underpinned by the continued market demand in Africa, an affiliate of Synergy has agreed to participate in a US$2.3 million convertible debenture financing. The terms of the Convertible Debenture include an interest rate of 10%, paid quarterly, a fixed conversion price of CAD$0.194 (US$0.143) per common share, and the right to appoint a board member. The Company has made an application to the Toronto Stock Exchange for conditional approval of this Convertible Debenture financing.

The proceeds from the Convertible Debenture will fund general and administrative costs including business development and marketing activities to convert NXT’s existing opportunity pipeline into firm contracts.

The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the 1933 Act and applicable state securities requirements or pursuant to exemptions therefrom. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful.