Press Release: Operations and Corporate Update

1920 800 - 5th Avenue SW Calgary, Alberta T2P 3T6

CANADA Tel : [phone] www.SpartanDeltaCorp.com

SPARTAN DELTA CORP. PROVIDES OPERATIONAL AND CORPORATE UPDATE AND

REVISES 2021 GUIDANCE

Calgary, Alberta - January 6, 2021 - Spartan Delta Corp. ("Spartan" or the "Company") (TSXV:SDE) is pleased to provide an operational and corporate update with revised guidance for 2021.

Highlights:

• Early results of Spartan's drilling program are positive with fourth quarter production exceeding guidance.
• Executing on consolidation strategy, including three small but strategic acquisitions in Spartan's focus development areas.
• Continued operational and financial performance results in upward revision to 2021 Adjusted Funds Flow guidance.

Winter Drilling Program

Spartan's winter drilling program of six Spirit River locations is progressing ahead of schedule and budget. The first two well pad was drilled, completed and on production as of mid-December, 2020 and a three well pad is in the final stages of drilling. Wells drilled to date are consistent with expectations with payout forecasted to be less than twelve months and yielding greater than 100% internal rate of return on current strip commodity pricing. Spartan expects to accelerate into the first quarter the drilling of two wells previously scheduled for the fall of 2021, including a two-mile well into the Cardium formation.

Fourth Quarter Production

Average production for the fourth quarter was maintained in line with third quarter production levels at approximately 26,000 BOE/d despite a base decline of 19% on Spartan's asset base. Production is 5% ahead of Spartan's mid-range guidance for the fourth quarter. This reflects the continued success of the Company's production optimization activities in the field and earlier than expected production contribution from two new wells in the second half of December.

Acquisitions Update

Spartan has closed one acquisition and executed definitive agreements for two additional strategic acquisitions in its target development areas for total consideration of $7.1 million (comprised of $0.9 million cash and the issuance of 2,002,584 common shares of Spartan) and the assumption of minimal abandonment liability. The acquisitions add 28 sections of land in the Montney play fairway along with 105 BOE/d of production (60% natural gas). The two additional strategic acquisitions are expected to close on or about January 15, 2021. Expected pro-forma contribution from the assets to be acquired is included in the revised corporate guidance for 2021, set out below.

Operational and Financial Improvements

Spartan continues to execute on the implementation of organic operational measures and strategic initiatives with industry partners. The Company expects 2021 operating expense of $5.10/BOE, which is 16% lower than third quarter of 2020 operating expense and 15% lower than previously announced 2021 guidance. As a result of both operational and financial improvements, Spartan expects 2021 Adjusted

- 2 -

Funds Flow of $92.5 million, an increase of 40% from prior guidance, and Free Funds Flow of $49.5 million, an increase of 102% from prior guidance.

Revised Corporate Guidance for 2021

Below is a summary of revised corporate guidance for 2021:

	New 2021	Prior 2021
(CA$ millions, except as otherwise noted)	Guidance	Guidance	Change (%)
Average Production
Crude oil and condensate	5%	5%	-
NGLs	25%	25%	-
Conventional natural gas	70%	70%	-
Combined (BOE/d)	29,000 - 31,000	27,000 - 29,000	7%
Forecast Average Commodity Prices
WTI oil price (US$/bbl)	45.00	45.00	-
AECO natural gas price ($/GJ)	2.75	2.75	-
Average Exchange Rate (CA$/US$)	1.32	1.32	-
Key Assumptions
Average royalty rate (% of oil and gas sales)	11%	11%	-
Operating expenses ($/BOE)	5.10	6.00	(15%)
Transportation expenses ($/BOE)	1.45	1.45	-
G&A expenses ($/BOE)	1.40	1.50	(7%)
Capital expenditures, excluding acquisitions ($MM)	43.0	40.0 - 43.0	-
Well count (# gross = net)	9	8 - 9	-
Adjusted Funds Flow (1)(2) (3) (4) ($MM)	92.5	66.0	40%
Free Funds Flow (1) ($MM)	49.5	23.0 - 26.0	102%
Net Debt (Surplus), end of period (1) ($MM)	(34.5)	(8.5)	306%
Common shares outstanding, end of period (MM)	60.2	58.2	3%

1. "Adjusted Funds Flow", "Free Funds Flow" and "Net Debt (Surplus)" do not have standardized meanings under IFRS, refer to the "Non-GAAP Measures" advisories at the end of this press release.
2. Based on the midpoint of 2021 average production guidance of 30,000 BOE/d.
3. Based on acquisitions, current forecast production, commodity prices, future acquisitions and capital expenditures, Spartan is not expecting to pay current income taxes for a minimum of 5 years.
4. Adjusted Funds Flow Sensitivity: $0.25/Gj change in AECO results in ~$5-6MM change in AFF, $5/bbl change in WTI results in ~$4-5MM change in AFF.

About Spartan Delta Corp.

Spartan is an energy company whose ESG-focused culture is centered on generating sustainable free funds flow through oil and gas exploration and development. Building on its existing high-quality, low- decline operated production in the heart of the Alberta Deep Basin, Spartan intends to continue acquiring diversified assets that can be restructured, optimized and rebranded, financially or operationally, yielding an increase to shareholder value. The Company is well positioned to continue pursuing immediate production optimization and responsible future growth. Further detail is available in Spartan's corporate presentation, which can be accessed on its website at www.spartandeltacorp.com.

- 3 -

For additional information please contact:
Fotis Kalantzis	Richard F. McHardy
President and Chief Executive Officer	Executive Chairman
[e-mail]	[e-mail]
Spartan Delta Corp.
500, 207 - 9th Avenue SW
Calgary, Alberta T2P 1K3
Canada

www.spartandeltacorp.com

- 4 -

READER ADVISORIES

Non-GAAP Measures

This release contains certain financial measures, as described below, which do not have standardized meanings prescribed by International Financial Reporting Standards ("IFRS") or Generally Accepted Accounting Principles ("GAAP"). As these non-GAAP financial measures are commonly used in the oil and gas industry, the Company believes that their inclusion is useful to investors. The reader is cautioned that these amounts may not be directly comparable to measures for other companies where similar terminology is used. The non-GAAP measures used in this release, represented by the capitalized and defined terms outlined below, are used by Spartan as key measures of financial performance and are not intended to represent operating profits nor should they be viewed as an alternative to cash provided by operating activities, net income or other measures of financial performance calculated in accordance with IFRS.

Adjusted Funds Flow and Free Funds Flow

"Adjusted Funds Flow" is calculated as cash provided by operating activities determined in accordance with IFRS, adjusted to add back changes in non-cash working capital and transaction costs on acquisitions and to deduct cash lease payments. The Company believes Adjusted Funds Flow is an appropriate metric to compare relative to Net Debt because it reflects the net cash flow generated from routine business operations and because Spartan does not include lease liabilities in its definition of Net Debt (Surplus).

"Free Funds Flow" is calculated as Adjusted Funds Flow less total net capital expenditures, excluding acquisitions.

Net Debt (Surplus)

Throughout this release, references to "Net Debt (Surplus)" include bank debt, net of Adjusted Working Capital. "Adjusted Working Capital" is calculated as current assets less current liabilities, excluding derivative financial instrument assets and liabilities and lease liabilities. The Adjusted Working Capital surplus included in Spartan's forecasted Net Debt (Surplus) at the end of 2021 includes cash and cash equivalents, accounts receivable, prepaid expenses and deposits, accounts payable and accrued liabilities and the current portion of decommissioning obligations. Spartan uses "Net Debt (Surplus)" as a measure of the Company's financial position and liquidity, however it is not intended to be viewed as an alternative to other measures calculated in accordance with IFRS.

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 forward-looking 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. The Company believes that the expectations reflected in such forward-looking statements are reasonable, 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 intentions of management and the Company with respect to its growth strategy and business plan; Spartan's expectations regarding its winter drilling program, including the location of wells, scheduled drilling and completion dates, expected rate of return and the timing of expected payout from such wells; forecasted reductions in operating costs; closing of the above-described strategic acquisitions; expected production and contribution from acquired assets; expectations regarding Spartan's income tax obligations and timing thereof; and Spartan's production forecasts and 2021 guidance.