Pipestone Energy Corp. Announces Appointment of New Director, Distribution of Common Shares By Its Largest Shareholder Canadian Non-Operated Resources L.P. and Updated Investor Rights Arrangements - Seite 3

Paul Wanklyn, President and CEO of Pipestone Energy would like to thank the limited partners of CNOR LP for their vision and support of both Pipestone Energy, and the previous private company, Pipestone Oil Corp in making the commitments which allowed for the exciting development taking place in the field today. The Pipestone area holds significant future value potential for all shareholders, and each of Riverstone, Al Mehwar, GMT Capital and GMT Exploration Company LLC continues to support Pipestone Energy’s exceptional growth strategy.

Pipestone Energy Corp.

Pipestone Energy is an oil and gas exploration and production company focused on developing its large condensate-rich Montney asset base in the Pipestone area near Grande Prairie. Pipestone Energy is fully funded to organically grow its production from 15.6 Mboe/d in 2020 to a forecast 35 Mboe/d (midpoint) in 2022, while maintaining a conservative leverage profile. Beginning in Q4 2021, the Company expects to generate free cash flow above growth and maintenance expenditures. Pipestone will initially prioritize the repayment of debt, with a target of less than 0.5x debt to cash flow prior to the end of 2022. The Pipestone Board is assessing all options to maximize shareholder returns through potential uses for future free cash flow, which could include share buyback programs, a future dividend, as well as investment in further growth or potential acquisitions. Pipestone Energy is committed to building long term value for our shareholders while maintaining the highest possible environmental and operating standards, as well as being an active and contributing member to the communities in which it operates. Pipestone Energy’s Common Shares trade under the symbol PIPE on the TSX.

Pipestone Energy Contacts:

Paul Wanklyn President and Chief Executive Officer [phone] [e-mail]	Craig Nieboer Chief Financial Officer [phone] [e-mail]
Dan van Kessel VP Corporate Development [phone] [e-mail]

Advisory Regarding Forward-Looking Statements

This news release contains certain information and statements (“forward-looking statements”) that constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future results or events, are based upon internal plans, intentions, expectations and beliefs, and are subject to risks and uncertainties that may cause actual results or events to differ materially from those indicated or suggested therein. All statements other than statements of current or historical fact constitute forward-looking statements. Forward-looking statements are typically, but not always, identified by words such as “anticipate”, “estimate”, “expect”, “intend”, “forecast”, “continue”, “propose”, “may”, “will”, “should”, “believe”, “plan”, “target”, “objective”, “project”, “potential” and similar or other expressions indicating or suggesting future results or events.