ROK Resources Inc. Announces $47.25 Million Accretive Sale of Non-Core Assets, Update on Term Debt & Capital Efficiencies

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

REGINA, SK / ACCESSWIRE / March 23, 2023 / ROK Resources Inc. (TSXV:ROK)(TSXV:ROK.WT) (the "Company" or "ROK") is pleased to announce it has entered into separate Asset Purchase and Sale Agreements (the "Dispositions") to divest of certain non-core assets in Saskatchewan for total combined proceeds of approximately $47.25 million, which includes the sale of ROK's non-operated 2.11685% interest in the Weyburn Unit (the "Weyburn Unit") to Rife Resources Ltd. ("Rife Resources") for total proceeds of approximately $44.5 million, before normal closing adjustments (the "Transaction"). Two smaller dispositions (the "Other Assets") make up the balance of the Dispositions with total proceeds of $2.75 million, before normal closing adjustments.

Weyburn Unit

The Transaction, by way of definitive sale agreement executed March 22, 2023, will result in gross proceeds that represent ~35% of ROK's enterprise value prior to the Transaction, while the divestiture of ~450 boe/d accounts for ~11% of its corporate production and ~21% of its 2022 net operating income.

Notably, at the time of the asset acquisition, as described in the press release dated March 7, 2022 ("FCL Acquisition"), the Weyburn Unit represented ~15% of the total production and ~28% of annualized net operating income that was acquired, but the gross proceeds from the Transaction represent ~77% of the total purchase price of $58.0 million, net of closing adjustments, of the FCL Acquisition.

The effective date of the Transaction is January 1, 2023. Completion of the Transaction is subject to customary conditions, which may include the approval of the TSX Venture Exchange ("TSXV"). Closing of the Transaction is expected to occur on March 31, 2023.

Transaction Metrics
Transaction Value	$44.5 million
Production(1)	450 boe/d
Implied Production Multiple	$98,889 / boe
2023 Net Operating Income ("NOI")(2)(3)	$9.6 million
Implied NOI Multiple

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