Crown Point Energy : December 31, 2022, Management’s Discussion & Analysis

CROWN POINT ENERGY INC.

MANAGEMENT'S DISCUSSION AND ANALYSIS

The following Management's Discussion and Analysis ("MD&A") of the consolidated financial results of Crown Point Energy Inc. ("Crown Point" or the "Company") is at and for the three months and year ended December 31, 2022.

This MD&A is dated as of and was approved by the Company's Board of Directors on March 13, 2023, and should be read in conjunction with the Company's audited December 31, 2022 consolidated financial statements (the "Financial Statements"). The Financial Statements of the Company have been prepared in accordance with International Financial Reporting Standards ("IFRS").

The Company's Financial Statements include the accounts of the Company and its wholly-owned subsidiaries, CanAmericas (Argentina) Energy Ltd. and Crown Point Energía S.A..

The functional currency of the Company's two subsidiaries is the United States dollar ("USD"); the functional currency of the Company is the Canadian dollar ("CAD"). The Company's presentation currency is the USD. In this MD&A, unless otherwise noted, all dollar amounts are expressed in USD. References to "ARS" are to Argentina Pesos.

Throughout this MD&A and in other materials disclosed by the Company, we adhere to IFRS, however the Company also employs certain non-IFRS measures to analyze financial performance, financial position, and cash flow, including "operating netback". Additionally, other financial measures are also used to analyze performance. These non-IFRS and other financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures provided by other issuers. The non-IFRS and other financial measures should not be considered to be more meaningful than financial measures which are determined in accordance with IFRS, such as net income (loss), oil and natural gas sales revenue and net cash provided by (used in) operating activities, as indicators of our performance. This MD&A also contains oil and natural gas information, abbreviations and forward-looking information relating to future events and the Company's future performance. Please refer to "Non-IFRS and Other Financial Measures", "Abbreviations and BOE Presentation" and "Advisories" sections at the end of this MD&A for further information.

Additional information relating to Crown Point, including Crown Point's audited December 31, 2022 consolidated financial statements and other filings are available on SEDAR at www.sedar.com.

In the following discussion, the three months and year ended December 31, 2022 may be referred to as "Q4 2022" and "YE 2022" or "2022", respectively, and as "the 2022 periods" collectively. The comparative three months and year ended December 31, 2021 may be referred to as "Q4 2021" and "YE 2021" or "2021", respectively, and as "the 2021 periods" collectively. The previous three month period ended September 30, 2022 may be referred to as "Q3 2022".

CORPORATE OVERVIEW AND STRATEGY

Crown Point (TSX-V:CWV) is a Calgary-based junior international oil and gas company with producing assets and an opportunity base in three producing basins in Argentina: the Austral basin in the Province of Tierra del Fuego ("TDF") and the Neuquén and Cuyo basins, in the Province of Mendoza.

The Company's strategy is designed to deliver low-risk growth and capitalize on large potential exploration upside. Specifically, Crown Point is focused on increasing its production base in TDF and Mendoza through exploration and development drilling supplemented by recompletion and fracture stimulation of select older producing wells. The Company's production is derived from its participating interest in the Rio Cullen, Las Violetas and La Angostura exploitation concessions in TDF (the "TDF Concessions") and two concessions in the Province of Mendoza (the "Mendoza Concessions") comprised of the Chañares Herrados concession (the "CH Concession" or "CH") and the Puesto Pozo Cercado Oriental concession (the "PPCO Concession" or "PPCO"). See the "Acquisition of Working Interest" section of this MD&A.

Crown Point is also conducting an exploration program in its 100% interest in the Cerro de Los Leones ("CLL") evaluation concession permit (the "CLL Permit") in the Province of Mendoza.

ACQUISITION OF WORKING INTEREST

Effective July 1, 2022, the Company acquired a 50% working interest in the PPCO Concession from Petrolera Aconcagua Energía S.A. ("Aconcagua") for a cash payment of $5 million and up to an additional $7.53 million in quarterly installments based on a percentage of the net operating income (oil and gas sales revenue

less royalties, turnover and other taxes and operating expenses)1 derived from the Company's 50% working interest in the PPCO Concession (the "Contingent Consideration"), provided that the Contingent Consideration is not payable until the Company has recovered its initial $5 million investment from its share of the net operating income derived from the PPCO Concession.

Aconcagua retained the remaining 50% working interest in the PPCO Concession. The PPCO Concession, which expires in August 2043, is located in the Cuyo (or Cuyana) basin in the Province of Mendoza adjacent to the CH Concession and covers approximately 63 square kilometers.

Under the terms of the exploitation license agreement, the joint venture will pay an 18.2% royalty on oil production and commit to a $26.8 million ($13.4 million net to Crown Point) work program which includes well work overs, infrastructure optimization and a multi-well drilling program that must be fulfilled by August 2028. The PPCO Concession is operated jointly with the CH Concession by Aconcagua.

The acquisition of the 50% working interest in the PPCO Concession was accounted for as a business combination in accordance with IFRS 3 Business Combinations whereby the assets acquired and liabilities

The preliminary estimates of fair value were made by management at the time of the acquisition based on available information at that time and were based on 15.44% discounted after-cash flow. Subsequently, the Company received an updated estimation of the fair value the petroleum and natural gas proved and probable reserves for the PPCO Concession reported on by independent engineers which formed the basis for the final fair value of property and equipment and the contingent liability portion of consideration.

As a result, the Company adjusted the preliminary fair value of net assets acquired upon the finalization of fair values and consideration.

Management determined this fair value based on the net present value of the estimated future cash flows expected to arise from the continued use of the acquired Property and equipment assets, including any expansion prospects, and its eventual disposal, using assumptions that an independent market participant may take into account. These cash flows are discounted by an appropriate discount rate which would be applied by a market participant to arrive at a net present value of the assets.

1 "Net Operating Income" is a specified financial measure that is calculated in accordance with the purchase and sale agreement between the Company and Aconcagua providing for the Company's acquisition of its 50% working interest in the PPCO Concession.

The assumptions and estimates used to determine the acquired proved and probable reserves and the fair value of the acquired property and equipment assets require significant judgment by management and include acquired proved and probable reserves, projected future rates of production, future commodity pricing, timing and amount of future expenditures and the discount rate. The acquired proved and probable reserves are evaluated and reported on by independent reserve engineers (management's experts).

The Company incurred $76,836 of costs related to the acquisition of the PPCO Concession which are included in general and administrative expenses.

During YE 2022, the PPCO Concession contributed $1.4 million of oil and gas sales revenue and $0.4 million of net operating income. Had the acquisition occurred on January 1, 2022, the Company estimates that revenue from oil and gas sales would have increased by approximately $2.8 million and net operating income would have increased by approximately $0.9 million during the YE 2022. The pro forma information is not necessarily representative of future revenue and operations.

OPERATIONAL UPDATE

TDF Concessions

In March 2022, YPF, operator of the Cruz del Sur offshore loading facility (the "CdS Terminal"), announced the closure of the CdS Terminal due to technical difficulties. The CdS Terminal is now used for storage purposes only.

Crown Point, together with its joint venture partners and YPF are constructing a 23 km 4 inch oil pipeline to connect the Cruz del Sur oil storage facility and the San Martin oil field with the Total Austral operated Rio Cullen marine terminal. In the interim, the UTE has arranged to export oil by truck to the Enap refinery at San Gregorio, Chile and to the Total Austral operated Rio Cullen marine terminal in TDF. The sales price at both San Gregorio and Rio Cullen is indexed to the Brent oil price. During 2022, the joint venture completed 85% of the oil pipeline from the Cruz del Sur oil storage facility to the Rio Cullen marine terminal operated by Total Austral.

During Q4 2022, San Martin oil production averaged 606 (net 208) bbls of oil per day compared to Q3 2022 San Martin oil production that averaged 1,200 (net 413) bbls of oil per day. During July and August 2022, the water production in SM a-1004 and SM a-1002 increased significantly, impacting oil production volumes. Field production was also affected by extensive workover operations at SM-1004 which was shut in for additional testing and installation of an electro-submersible pump designed to increase gross production from the well.

During Q4 2022, natural gas production from the Las Violetas concession averaged 11,038 (net 3,794) mcf per day and oil production averaged 246 (net 84) bbls of oil per day. During Q4 2022, three zones were tested in the LFE-1004 well, which had been drilled during the 2015 drilling campaign discovering gas in the Tobífera formation and condensate in the overlying Los Flamencos formation. The test program recovered gas with minor amounts of oil.

Mendoza Concessions

During Q4 2022, the UTE carried out reactivations on three oil wells and performed a workover on a water injector well in the CH Concession. Oil production from the CH Concession for Q4 2022 averaged 1,156 (net 578) bbls of oil per day.

During Q4 2022, the UTE carried out a workover on a water injector well in the PPCO Concession. Oil production from the PPCO Concession for Q4 2022 averaged 230 (net 115) bbls of oil per day.

CLL Permit

The directional well, CPE.MdN.VS.xp-3(d), was drilled and cased in Q1 2022 after encountering eight volcanic sills with oil shows and increased mud gas in the Mendoza Group, and log indicated gas bearing zones in the overlying Neuquén Group sandstones. Subsequent acid stimulation and swabbing of the volcanic sills recovered uneconomic amounts of oil with water. The well has been suspended pending testing of the gas bearing sandstone layers in the Neuquén Group in the first half of 2023.

In February 2023, the Province of Mendoza issued Resolution N°208 which granted the CLL Permit over all of the CLL area for a term of 18 months commencing on February 23, 2022, until October 23, 2023.

OUTLOOK

Capital Spending - Developed and Producing Assets included in Property and Equipment

The Company's capital spending on developed and producing assets for fiscal 2023 is budgeted at $14.5 million based on expenditures for the following proposed activities:

• $0.9 million for workovers in the TDF Concessions;
• $1.5 million for improvements to facilities in the TDF Concessions;
• $3.2 million for well workovers in the Mendoza Concessions;
• $7.8 million to drill three vertical wells in the Mendoza Concessions; and
• $1.1 million for facilities improvements and optimization in the Mendoza Concessions. Capital Spending - Exploration and Evaluation Assets

The Company plans to spend $0.8 million on the testing of the gas bearing sandstone layers of the Neuquén Group at CLL in the first half of 2023.

Crown Point expects to fund its capital spending, along with its other anticipated expenses, using cash held in bank accounts, cash flow from operations and/or new debt. See the Liquidity and Capital Resources section of this MD&A.

Argentina - Economic Summary

The Executive Board of the International Monetary Fund ("IMF") completed the third review of the extended arrangement under the Extended Fund Facility for Argentina. The Board's decision allowed a disbursement of 4.5 billion Special Drawing Rights (around $6 billion). Nevertheless, macroeconomic imbalances persist and conditions remain fragile. Continued enhanced program implementation will therefore be critical to achieving key program objectives and maintaining the program as an anchor for stability. The IMF has stated that exchange restrictions and multiple currency practices should be avoided and unwound as early as conditions permit, and macroeconomic imbalances are addressed. The rate of inflation reached 94.8% for the year ended December 31, 2022.

Commodity Prices

Oil

Oil from the Company's TDF Concessions is sold at a discount to the Brent oil price. Oil from the Company's Mendoza Concessions is sold at a price negotiated with the customer, although a portion of the oil produced from the PPCO Concession may be exported and sold at a discount to the Brent oil price. During Q4 2022 and YE 2022, the Company received an average of $70.66 per bbl and $86.75 per bbl, respectively, for its TDF oil, all of which was exported, $64.52 per bbl and $60.42 per bbl, respectively, for its CH oil, all of which was sold to the domestic market, and $64.55 per bbl and $64.90 per bbl, respectively, for its PPCO oil, of which a portion was exported.

Natural gas

Crown Point can sell its natural gas production to both industrial and residential consumers. During Q4 2022 and YE 2022, the Company received an average of $4.23 per mcf and $4.48 per mcf, respectively, for its TDF natural gas, all of which was sold to the industrial market.

FINANCIAL INFORMATION

SUMMARY OF FINANCIAL INFORMATION

1. Non-currentfinancial liabilities are comprised of the non-current portions of trade and other payables, taxes payable, notes payable and lease liabilities. The total amount of notes payable at December 31, 2022 is $14,542,382, of which $7,233 is classified as current (December 31, 2021 - $5,379,245, of which $2,169,965 was classified as current). The total amount of lease liabilities at December 31, 2022 is $1,455,890 of which $483,527 is classified as current (December 31, 2021 - $319,913 of which $76,900 was classified as current). The total amount of contingent consideration liability at December 31, 2022 is $632,068 of which $219,888 is classified as current and is included in trade and other payables (December 31, 2021 - $81,259, all classified as current and included in trade and other payables).
2. All per share figures are the same for the basic and diluted weighted average number of shares outstanding in the period. The effect of options is anti-dilutive in loss periods. Per share amounts may not add due to rounding.
3. "Working capital" is a capital management measure. "Non-current financial liabilities" is a supplemental financial measure. "Net cash per share - operating activities" is a supplemental financial measure. "Funds flow per share - operating activities" is a supplemental financial measure. See "Non-IFRS and Other Financial Measures" for additional disclosures.

RESULTS OF OPERATIONS

Operating Netback