Hemisphere Energy Provides Further Update on Atlee Buffalo Operations

Vancouver, British Columbia--(Newsfile Corp. - September 3, 2026) - Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) ("Hemisphere" or the "Company") is providing a further update on the fire incident at the Company's largest oil battery at its Atlee Buffalo property, previously announced on August 26, 2026. Clean-up activities are ongoing, and equipment and debris removal is underway. The incident resulted in the loss of all three treaters and other auxiliary equipment at the battery, as well as extensive damage to the battery's electrical system, which must be restored before any temporary production measures can be attempted. As previously disclosed, the affected oil battery accounts for up to 2,650 boe/d (99% heavy oil), or approximately 75%, of the Company's production. Hemisphere continues to work with applicable authorities, insurers, and service providers to assess damage and advance rebuild planning. Hemisphere has initiated an insurance claim and maintains both property damage and business interruption insurance, subject to applicable policy terms, conditions, limits, exclusions, and deductibles. Any applicable business interruption coverage is subject to a 30-day waiting period. Hemisphere intends to drill one additional well before releasing its drilling rig earlier than scheduled. In total, Hemisphere now expects to drill six wells of its previously planned 11-well summer drilling program. The Company's previously announced guidance remains suspended pending further clarity on repair timelines, production restoration, confirmation of insurance coverage, and related impacts to production, capital expenditures, cash flow and other operating or financial metrics. The Company will provide further updates as more information becomes available. Hemisphere's current financial position supports its ability to pay its previously declared quarterly dividend of $0.025 per share on September 11, 2026 to shareholders of record on August 28, 2026. 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 Forward-looking Statements Certain statements in this news release constitute forward-looking statements or forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "potential", "target" and similar words suggesting future events or future performance. Without limitation, this news release contains forward-looking statements regarding anticipated downtime at the Company's Atlee Buffalo oil battery; the timing, scope and cost of clean-up, equipment and debris removal, assessment, repair, replacement and rebuild activities, including electrical system rebuilding; the timing and feasibility of temporary production measures and production restoration; potential impacts on production, operations, financial results, capital expenditures, cash flow, guidance and future plans; access to equipment, materials, contractors, service providers and regulatory approvals; the availability, amount, timing and recoverability of insurance proceeds, including property damage and business interruption coverage; the appli...