Cheal Petroleum Limited entered into an interim agreement to acquire remaining 30% stake in Petroleum Mining Permit PMP 60291 (Cheal East) from East West Petroleum Corp. (TSXV:EW) for $1 million on November 1, 2023. Cheal Petroleum Limited entered into signed the definitive agreement to acquire remaining 30% stake in Petroleum Mining Permit PMP 60291 (Cheal East) from East West Petroleum Corp.

(TSXV:EW) for $1 million on January 10, 2024. A contingent consideration of US $0.35 million will be paid should an additional well be drilled and completed. The transaction is subject to the negotiation and execution of a definitive agreement, all necessary New Zealand Government approvals, regulatory and exchange approval as well as approval of the East West shareholders.

In connection with the required shareholder approvals, an annual and special meeting of the shareholders of East West has been scheduled for December 15, 2023. As of December 15, 2023, East West Petroleum, announced that at the Annual & Special Meetings of Shareholders the shareholders re-elected Messrs. Nick DeMare, Mark T. Brown and Kevin William Haney as directors of the Company.

The shareholders also passed all other resolutions including an ordinary resolution to ratify the stock option plan, pursuant to which the Company may grant stock options up to 10% of its issued and outstanding common shares at the time of the grant; and a special resolution approving the sale of the Company?s oil and gas properties in New Zealand, as announced November 1, 2023. Following the Meeting, the Board appointed Mr. Nick DeMare as Interim Chief Executive Officer and Corporate Secretary of the Company and Mr. Harvey Lim as Interim Chief Financial Officer. Messrs.

DeMare, Brown, and Haney were appointed to the audit committee. As of January 10, 2024, a refundable deposit of $250,000 will now be paid by the purchaser. The sale is subject to receipt of all necessary New Zealand government approvals and the process to obtain such approvals is now underway.