Saturn Oil & Gas Inc. Announces Development Drilling Program and Corporate Update

-          Saturn commences development drilling and workover program in West Central Saskatchewan

-          Warrants from June 2021 equity financing are now listed for trading on the TSX-V as SOIL.WT

-          The board of directors has approved the grant of 12.5. million incentive stock options

CALGARY, ALBERTA – August 3, 2021 - Saturn Oil & Gas Inc. (“Saturn” or the “Company”) (TSX.V: SOIL) (FSE: SMK) is pleased to announce the start of a three well development drilling program in West Central Saskatchewan.  In addition, the 268.3 million common share purchase warrants issued in conjunction with the June 2021 equity private placement (the “Warrants”) will commence trading under the symbol SOIL.WT on the TSX Venture Exchange effective August 3, 2021.   Finally, the board of directors of the Company has granted 12,500,000 incentive stock options to directors, officers, employees and consultants.

Initiation of Development Drilling in West Central Saskatchewan

Saturn will be drilling three Extended Reach Horizontal (ERH) wells in West Central Saskatchewan, targeting light oil in the Viking formation.  Each of the wells will be 100% working interest to Saturn with the first well expected to spud in August 2021. The company will also be performing other field activities and workovers at the Viking Asset with the intent of enhancing current production.

“We are encouraged to reinitiate our development activities at our Viking Asset where Saturn has extensive experience in drilling ERH wells with a strong track record of success,” said John Jeffrey, CEO of Saturn. “These initial three wells will kick off our operated drilling program that we intend to expand in Q4 2021 and into next year.”

Corporate Update

Today the Warrants issued in conjunction with the oversubscribed $32.2 million June private placement will commence trading on the TSX Venture Exchange.  Each Warrant entitles the holder to purchase one common share in the capital of the Company at an exercise price of $0.16 per common share and expires on June 2, 2023.  The board of directors of Saturn has authorized the granting of inventive stock options to certain directors, officers, employees and consultants of the Company entitling them to purchase up to a total of 12,500,000 common shares at a price of $0.12 for a period of five years.

About Saturn Oil & Gas Inc.

Saturn Oil & Gas Inc. is a growing Canadian energy company focused on generating positive shareholder returns through the continued responsible development of high-quality, light oil weighted assets, supported by an acquisition strategy that targets highly accretive, complementary opportunities. Saturn has assembled an attractive portfolio of free-cash flowing, low-decline operated assets in Southeastern Saskatchewan and West Central Saskatchewan that provide an inventory of long-term economic drilling opportunities across multiple zones. With an unwavering commitment to building an ESG-focused culture, Saturn’s goal is to increase reserves, production and cash flows at an attractive return on invested capital. Saturn’s shares are listed for trading on the TSX.V under ticker ‘SOIL’ and on the Frankfurt Exchange under symbol ‘SMK’.

Further information and a corporate presentation is available on Saturn’s website at http://www.saturnoil.com/.

Saturn Oil & Gas Investor & Media Contacts:

John Jeffrey, MBA – Chief Executive Officer

Tel: +1 (587) 392-7902

www.saturnoil.com

Kevin Smith, MBA – VP Corporate Development

Tel: +1 (587) 392-7900

[email protected]

Reader Advisory

Forward-Looking Information and Statements

Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project", "scheduled", "will" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to, the the Company’s drilling program and the business plan, cost model and strategy of the Company.

The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Saturn, including expectations to drill new wells and expected spud dates , the timing of and success of future drilling, development and completion activities, the performance of existing wells, the performance of new wells, the availability and performance of facilities and pipelines, the geological characteristics of Saturn's properties, the application of regulatory and licensing requirements, the availability of capital, labour and services, the creditworthiness of industry partners and the ability to source and complete asset acquisitions.

Although Saturn believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Saturn can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), constraint in the availability of services, commodity price and exchange rate fluctuations, the current COVID-19 pandemic, actions of OPEC and OPEC+ members, changes in legislation impacting the oil and gas industry, adverse weather or break-up conditions and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. These and other risks are set out in more detail in Saturn's Annual Information Form for the year ended December 31, 2020.

Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect. Although Saturn believes that the expectations reflected in its forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because Saturn can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding and are implicit in, among other things, the timely receipt of any required regulatory approvals and the satisfaction of all conditions to the completion of the share consolidation. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used.

The forward-looking information contained in this press release is made as of the date hereof and Saturn undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

All dollar figures included herein are presented in Canadian dollars, unless otherwise noted.