Hemisphere Energy Responds to Incident at Atlee Buffalo Oil Battery

Vancouver, British Columbia--(Newsfile Corp. - August 26, 2026) - Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) ("Hemisphere" or the "Company") reports that a fire incident occurred overnight at the Company's largest oil battery at its Atlee Buffalo property. Emergency protocols were activated immediately, and the fire has since been extinguished with all damage contained within the Company's lease. There are no injuries reported. The incident resulted in the loss of all three treaters at the battery and is expected to cause significant downtime at the facility while clean-up, assessment, and rebuild activities are completed. The affected oil battery accounts for up to 2,650 boe/d (99% heavy oil), or approximately 75% of the Company's production. Hemisphere is working with the appropriate authorities, insurers, and service providers to assess damage, determine the cause of the incident, and develop a restoration plan. The Company will provide further updates as more information becomes available, including expected timing for repairs, production restoration, and any potential impacts to previously announced guidance, which is currently being suspended until such information has been determined.

About Hemisphere Energy Corporation Hemisphere is a dividend-paying Canadian oil company focused on maximizing value-per-share growth with the sustainable development of its high netback, low decline conventional heavy oil assets through polymer flood enhanced oil recovery methods. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol "HME" and on the OTCQX Venture Marketplace under the symbol "HMENF".

For further information, please visit the Company's website at www.hemisphereenergy.ca to view its corporate presentation or contact: Don Simmons, President & Chief Executive Officer Telephone: (604) 685-9255 Email: [email protected] Website: www.hemisphereenergy.ca