Cub Energy Announces Closing of Sale of 35% Intere

Cub Energy Announces Closing of Sale of 35% Interest in KUBGAS

Houston, Texas, and Calgary, Alberta – February 2, 2022 – Cub Energy Inc. (“Cub” or the “Company”)
(TSX-V: KUB) announces it has closed the sale of its 35% interest in KUBGAS Holdings Limited
(“KUB Holdings”). The sale was for a deemed consideration of approximately US $10.9 million. The
consideration was comprised of a cash payment of US $2.6 million and the settlement of US $8.3
million in debt. The US $8.3 million in debt was settled in full through the repayment of debt and the
simultaneous issuance of US $7.9 million in dividends to the Company with the difference being the
applicable withholding taxes. The Company continued gas trading of its 35% interest in KUBGAS
through to November 15, 2021.

Patrick McGrath, CEO of Cub said: “The sale of the Company’s eastern Ukraine asset essentially derisks
the Company’s eastern Ukraine exposure and eliminates the majority of Cub’s debt. The Company is now
focused on its 100% owned western Ukraine assets and will continue to review new opportunities.”

About Cub Energy Inc.

Cub Energy Inc. (TSX-V: KUB) is a power generation and upstream oil and gas company, with a
proven track record of exploration and production cost efficiency in Ukraine. The Company’s strategy
is to implement western technology and capital, combined with local expertise and ownership, to build
a portfolio of assets within an advantaged commodity price environment. For further information
please contact us or visit our website: www.cubenergyinc.com

Patrick McGrath
Chief Executive Officer
(832) 499-6009
patrick.mcgrath@cubenergyinc.com