LYCOS ENERGY INC. ANNOUNCES OPERATIONAL UPDATE AND NEW CREDIT FACILITY

Calgary, Alberta - Lycos Energy Inc. ('Lycos' or the 'Company') (TSXV: LCX) is pleased to provide an operational update and announce a new $20.0 million senior-secured credit facility with the National Bank of Canada (the 'Lender').

Operational Update

Lycos is extremely optimistic about the results of its first multi-leg 'fishbone' well drilled at 08-33-043- 22W3. This 100% working interest well has been on production since late November 2022. The well achieved an average 30-day production ('IP30') rate of 149 boe/d and is currently producing 150 boe/d (100% oil). At recent strip pricing of USD 50$/bbl WCS, the well is expected to achieve payout in less than 10 months. A second 8 leg multi-lateral well was drilled at 08-31-043-22W3 from the same drilling pad. This well achieved an IP30 of 97 boe/d and is currently producing 89 boe/d (100% oil). At recent strip pricing of USD$50/bbl WCS, the well is expected to achieve payout in less than 15 months. The significantly better result on the fishbone is consistent with pre-drill estimates regarding production enhancement from the fishbone geometry well. Based on the results of these two wells, Lycos has confirmed that the increased reservoir contact provided by the 'fishbone' design appears to provide superior capital efficiency with an approximate 60% increase in productivity with a 10%-15% increase in capital expenditures, compared to single and multi-leg wells drilled in the vicinity. As a follow up to these successful results, Lycos is embarking on a drilling campaign in Q1 2023 which will consist of fishbone drills and additional water disposal wells.

About Lycos

Lycos is an oil-focused, exploration, development and production company based in Calgary, Alberta, operating high-quality, heavy-oil, development assets in the Gull Lake area of southwest Saskatchewan and heavy-oil assets in the Lloydminster area

Contact:

Lycos Energy Inc.

Dave Burton

President and CEO

T: (403) 616 - 3327

E: [e-mail]

Lindsay Goos

Chief Financial Officer

T: [phone]

E: [e-mail]

Forward-Looking and Cautionary Statements

Certain statements contained within this press release constitute forward-looking statements within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact may be forwardlooking statements. Forward-looking statements are often, but not always, identified by the use of words such as 'anticipate', 'budget', 'plan', 'endeavor', 'continue', 'estimate', 'evaluate', 'expect', 'forecast', 'monitor', 'may', 'will', 'can', 'able', 'potential', 'target', 'intend', 'consider', 'focus', 'identify', 'use', 'utilize', 'manage', 'maintain', 'remain', 'result', 'cultivate', 'could', 'should', 'believe' and similar expressions. Lycos believes that the expectations reflected in such forward-looking statements are reasonable as of the date hereof, but no assurance can be given that such expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Without limitation, this press release contains forward-looking statements pertaining to: the business plan and strategy of Lycos; Lycos's anticipated operational results including, but not limited to, estimated or anticipated production levels, capital expenditures and drilling plans; Lycos's plans to deliver strong operational performance and to generate growth and increased shareholder returns; management's expectations regarding encouraging drilling results and ability to replicate past performance; and pursuing immediate production optimization and future growth with organic drilling and opportunistic acquisitions. The forward-looking statements and information are based on certain key expectations and assumptions made by Lycos, including expectations and assumptions concerning the business plan of Lycos, the timing of and success of future drilling, development and completion activities, the performance of existing wells, the performance of new wells, the availability and performance of facilities and pipelines, the geological characteristics of Lycos's properties, the successful integration of the recently acquired assets into Lycos's operations, the successful application of drilling, completion and seismic technology, prevailing weather conditions, prevailing legislation affecting the oil and gas industry, prevailing commodity prices, price volatility, price differentials and the actual prices received for the Company's products, impact of inflation on costs, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the availability of capital, including under the new credit facility, labour and services, the creditworthiness of industry partners and the ability to source and complete acquisitions. Although Lycos believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward- looking statements and information because Lycos can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, fluctuations in commodity prices, changes in industry regulations and political landscape both domestically and abroad, wars (including Russia's military actions in Ukraine), hostilities, civil insurrections, foreign exchange or interest rates, increased operating and capital costs due to inflationary pressures (actual and anticipated), stock market volatility, impacts of the current COVID-19 pandemic and the retention of key management and employees. Ongoing military actions between Russia and Ukraine have the potential to threaten the supply of oil and gas from the region. The long-term impacts of the actions between these nations remains uncertain. Readers are cautioned not to place undue - 3 - reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Lycos undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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