I3 Energy Regulatory News (I3E)

17 June 2021

i3 Energy plc

("i3", "i3 Energy", "i3 Canada", or the "Company")

i3 Canada Ltd YE 2020 Reserves

i3 Energy plc (AIM:I3E) (TSX:ITE), an independent oil and gas company with assets and operations in the UK and Canada, is pleased to announce the 2020 year-end reserves for its subsidiary i3 Energy Canada Ltd. i3's independent reserve report (the "GLJ report") was prepared by GLJ Ltd. ("GLJ") in accordance with standards contained in the Canadian Oil and Gas Handbook (COGEH) and National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") with an effective date of 31/12/20.

Highlights

· The Before-tax Net Present Value of cash flows attributable to the reserves, discounted at 10%, is USD 97mm for the Proved Reserves ("1P") and USD 183mm for the Proved plus Probable Reserves ("2P"), indicative of the numerous economic development opportunities in the Company's portfolio.

· Proved Producing Reserves are 17.51 million barrels of oil equivalent ("mmboe"), representing 55% of all 1P Reserves and Proved plus Probable Producing Reserves are 22.83 mmboe representing 43% of all 2P Reserves, indicative of relatively low risk reserves.

· Top-tier, low-decline asset base as exhibited by projected first year declines of 13% on a 2P basis. Actual observed declines since i3's acquisition of these assets are significantly below this projection.

· The Company's Proved plus Probable Reserves are comprised of 62% natural gas and 38% oil and natural gas liquids ("NGLs").

· The forecast commodity pricing assumed by GLJ as at 31/12/20 is materially below that used for the 30/6/20 evaluation and today's forward strip price curve. The change in Proved Producing reserves of 1.8 mmboe from 30/6/20 to 31/12/2020 is principally due to the 1.7 mmboe produced across that 6-month period.

The tables below outline GLJ's estimates of i3's reserves at 31/12/20.

Notes:

(1) The Company is not in a tax paying position due to Canadian tax loss pools.

(2) "Net" reserves mean the Company's working interest share after deduction of royalty obligations.

(3) USD/CAD of 0.826 used to convert GLJ's reported Net Present Values from CAD to US.

Forecast Prices Used in Estimates

GLJ has employed the 3 Consultants Average ("3CA") forecast prices in the GLJ Report, being the average of the forecasts of GLJ, McDaniel & Associates Consultants Ltd and Sproule Associates Limited. The 3CA forecast prices, exchange rate and inflation (2% post 2035) assumptions as at 31/12/20 are tabulated below.

Majid Shafiq, CEO of I3 Energy plc, commented:

"With Producing Reserves representing a relatively high proportion of Proved and Probable reserves and performance even better than the predicted top tier decline rates, this demonstrates the low risk, high quality nature of our portfolio".

Notes:

Reserves estimates have been prepared by GLJ in accordance with standards contained in the Canadian Oil and Gas Evaluation (COGE) Handbook.

Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. If probabilistic methods are used, there should be at least a 90% probability that the quantities actually recovered will equal to or exceed the estimate.

Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated Proved plus Probable (2P) reserves. When probabilistic methods are used, there should be at least a 50% probability that the actual quantities recovered will equal to or exceed the 2P estimate.

Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves category (for example proved or probable) to which they are assigned.

END

Qualified Person's Statement

In accordance with the AIM Note for Mining and Oil and Gas Companies, i3 discloses that Majid Shafiq is the qualified person who has reviewed the technical information contained in this document. He graduated with a Master's Degree in Petroleum Engineering from Heriot-Watt University in 1988 and is a member of the Society of Petroleum Engineers. Majid Shafiq consents to the inclusion of the information in the form and context in which it appears.

Enquiries:

Notes to Editors:

i3 Energy is an oil and gas Company with a low cost, diversified, growing production base in Canada's most prolific hydrocarbon region, the Western Canadian Sedimentary Basin and appraisal assets in the North Sea with significant upside.

The Company is well positioned to deliver future growth through the optimisation of its existing 100% owned asset base and the acquisition of long life, low decline conventional production assets.

i3 is dedicated to responsible corporate practices and the environment, and places high value on adhering to strong Environmental, Social and Governance ("ESG") practices. i3 is proud of its performance to date as a responsible steward of the environment, people, and capital management. The Company is committed to maintaining an ESG strategy, which has broader implications to long-term value creation, as these benefits extend beyond regulatory requirements.

i3 Energy is listed on the AIM market of the London Stock Exchange under the symbol I3E and on the Toronto Stock Exchange under the symbol ITE. For further information on i3 Energy please visit https://i3.energy/

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.