LNG Energy Group: Exploring Strategic Alternatives to Enhance Shareholder Value

LNG Energy Group Corp. (TSXV: LNGE) (TSXV: LNGE.WT) (OTCQB: LNGNF) (FWB: E26) has announced an update to its previously initiated strategic review process, aiming to explore and evaluate a broad range of potential options to enhance shareholder value. The company, focused on the acquisition and development of natural gas production and exploration assets in Latin America, is considering various strategic alternatives, including financings, strategic partnerships, strategic investments, accretive acquisitions, and a potential sale, merger, or other business combination.



Capital Strengthening and Financing Update
The Company is in the process of farming out a non-operating portion of its participating interest in the VIM-41 Block located onshore Colombia, and of pursuing a well development financing ("JV Contribution") in order to raise capital to initiate the drilling of the B5 well located onshore Colombia. Furthermore, the Company intends to review options to optimize cash flow available for drilling vis a vis its financial obligations. In conjunction with its near-term development plans, the Company has entered into an agreement with ECM Capital Advisors Inc. in respect of the Strategic Review in order to assist the Company in assessing all strategic alternatives, including financings, asset sales, and other potential transactions. The previously announced engagement agreement with Eight Capital has been mutually terminated by the parties thereto.

Other Initiatives
In connection with the foregoing initiatives, the Company is pleased to announce an amendment (the "Amendment") to the senior secured credit agreement entered into by LNG Canada Holdco Inc. (the "Borrower"), as borrower, Lewis Energy Colombia, Inc., as guarantor (the "Guarantor" and together with the Borrower, the "Loan Parties") and Macquarie Group Ltd., as administrative agent, and the other lenders (the "Lenders") dated August 15, 2023 (the "Credit Agreement"). As of the date hereof, the Company has amortized approximately U.S.$20 million of the initial principal outstanding (approximately C$0.17 per common share outstanding) and reaching an aggregate principal amount outstanding in respect of the Credit Agreement of approximately U.S.$50 million. Pursuant to the terms of the Amendment, the Lenders have agreed to certain covenant relief in order to allow for the foregoing strategic initiatives to be entered into by the Company and its subsidiaries, as well as funding of its drilling program.



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About LNG Energy Group
The Company is focused on the acquisition and development of natural gas production and exploration assets in Latin America. For more information, please visit www.lngenergygroup.com.

For more information please contact:
Angel Roa, Chief Financial Officer
LNG Energy Group Corp.
Website: www.lngenergygroup.com
Email: investor.relations@lngenergygroup.com
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of historical fact are forward-looking statements, and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often using phrases such as "expects", "anticipates", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends", or variations of such words and phrases, or stating that certain actions, events or results "may" or "could", "would", "should", "might" or "will" be taken to occur or be achieved, are not statements of historical fact and may be forward-looking statements.

Specifically, this news release includes, but is not limited to, forward-looking statements relating to: the Company's business plans, strategies, priorities and development plans, including the strategic initiatives being considered by the Company and the corporate reorganization and anticipated annual savings therefrom; the application of the stimulation technology used for the BN-1 well workover on other wells of the Company; the anticipated benefits of the completion of various strategic initiatives being considered by the Company; the completion of the JV Contribution and completion of other options to optimize cash flow available for drilling vis a vis its financial obligations; the anticipated insider participation any financing; and the anticipated use of proceeds from any financing.

The forward-looking statements in this news release are based on certain assumptions and expectations of the Company as of the date of this news release, and were obtained by using various statistical, historical, and other methodologies and models, including, but not limited to, the assumptions that the Company will be able to successfully implement its business strategies and achieve its business objectives, and that the Company will be able to obtain financing on acceptable terms. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements are subject to certain risks and uncertainties and are based on information currently available to the Company. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, those discussed under the heading "Risk Factors" in the Company's annual information form dated March 31, 2023, and in the Company's other filings with securities regulators in Canada and the United States. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law. All forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.