Maha Energy

Earnings Release • Jan 30, 2020

Maha Energy AB (publ) Strandvägen 5A SE-11451 Stockholm www.mahaenergy.ca

Press Release

Stockholm January 30, 2020

Maha Energy AB announce December 31, 2019 Reserves Report with 25% increase in 2P reserves

Chapman Petroleum Engineering Ltd. ("Chapman") has completed their annual reserve determination for the Company. The 2P oil reserves are up by approximately 25% compared to year end 2018, primarily due to an increase in the Tie Field reserves (as communicated in press release dated 25 September, 2019).

Maha Reserves1 as at 31 December, 2019

2019 Maha Energy AB Net Oil Reserves before income tax (million barrels (m bbls))
LAK Tie		Tartaruga2	Total
1P	0.111	4.896	4.966	9.973
2P	8.815	17.735	13.200	39.750
3P	14.239	21.212	32.277	67.728

2019 Maha Energy AB Net Conventional (Sales)3 Natural Gas Reserves before income tax

	Tie Field
	Volume
	(billion SCF)
1P	3.280
2P	12.498
3P	14.994

¹ Volumes are Net to Maha Energy AB and are expressed before royalties and taxes.

2The Tartaruga Concession Agreement expires in 2025 but provides mechanisms for extension based on the continued productivity of the field. Management is confident that such an extension will be approved and the reserves assume that the extension will be granted. The following reserve volumes are attributable to the extension period: 1P:- 2.44 m bbls, 2P:- 8.21 m bbls and 3P:- 20.11 m bbls.

	3 Chapman Petroleum Engineering Ltd. uses			the following oil price forecast for Brent Spot in \$USD/STB:

2018	2019	2020	2021	2022	2023	2024	2025
\$71.64	\$64.11	\$68.93	\$71.19	\$74.58	\$76.07	\$77.59	\$79.14

The average gas price for the gas reserves at Tie Field over the next five years is forecasted by Chapman to be \$1.39 USD/MSCF.

The main changes to this years' reserve volumes are:

• 1.5 million barrels increase in P90 (proven) reserves in Brazil
• 6.7 million barrels increase in P50 (probable) reserves at Tie

The increase of the P50 (probable) reserves at the Tie Field are due to seismic remapping of the Tie structure after drilling the Attic Well, where the structure top was encountered significantly deeper than what was earlier prognosticated. In effect, the structure is now determined to be less steep and aerially larger. At Tartaruga, P90 (proven) reserve volumes were slightly increased (1.158 million bbls) because of results of the 7TTG workover and the resulting production increase from the Penedo1 sandstone.

The reserves review and issuance of this reserve report for the Company was made by the independent petroleum engineering consultants Chapman Petroleum Engineering Ltd., Calgary, Canada. The report has been calculated in accordance with the standards set out in the Canadian Oil and Gas Evaluation Handbook (COGEH), compliant with the National Instrument NI51-101 standards and the professional practice standard under the Permit to Practice.

Maha Energy AB, through its subsidiaries owns and operates a legal and beneficial 75% working interest in the SES-107D Block (Tartaruga) onshore Sergipe State Brazil, a 99% working interest in the LAK Ranch heavy oil field in Wyoming USA, and a 100% working interest in the Tie Field onshore Bahia State Brazil.

About reserves

Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on:

• analysis of drilling, geological, geophysical, and engineering data,
• the use of established technology, and
• specified economic conditions, which are generally accepted as being reasonable, and shall be disclosed

Reserves are classified according to the degree of certainty associated with the estimates. Proved reserves (P90) are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves (P).

Probable reserves (P50) are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved + probable reserves (2P).

Possible reserves (P10) are those additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved + probable + possible reserves (3P).

For more information, please contact:

Jonas Lindvall (CEO) Tel: +1 403 454 7560 Email: jonas@mahaenergy.ca

or

Victoria Berg (Investor Relations) Tel: +46 8 611 05 11 Email: victoria@mahaenergy.ca

Miscellaneous

This information is published in accordance with the EU Market Abuse Regulation and/or the Swedish Financial Instruments Trading Act. The information was submitted for publication through the agency of the contact persons set out above on January 30, 2020, at 5:00 am CET.

Maha in Brief

Maha Energy AB is a Swedish public limited liability company. FNCA Sweden AB has been engaged as Certified Adviser and can be contacted at info@fnca.se or +46-8-528 00 399. The Company's auditors are Deloitte. The Company's predecessor Maha Energy Inc. was founded in 2013 in Calgary, Canada, by Jonas Lindvall and Ron Panchuk. In May 2016, the new group was formed with Maha Energy AB as parent company for purposes completing an initial public offering on the Nasdaq First North Growth Market stock exchange. Jonas Lindvall, CEO and Managing Director, has 26 years of international experience in the oil and gas industry, starting his career with Lundin Oil during the early days of E&P growth. After 6 years at Shell and Talisman, Jonas joined, and helped secure the success of, Tethys Oil AB. Maha's strategy is to target and develop underperforming hydrocarbon assets on global basis. The Company operates three oil fields, Tartaruga and Tie in Brazil and LAK Ranch, in Wyoming, U.S. For more information, please visit our website www.mahaenergy.ca.