PetroFrontier Corp. announced that it has entered into a letter of intent ("LOI") with an arm's-length third party company ("Fundco") which will enable continued development of PetroFrontier's joint ventures at the Cold Lake and Wabasca areas of Alberta (the "PFC Interests"). The LOI contemplates the following: Fundco will provide total funding to PetroFrontier in the amount of $24,000,000 (the "Funding") enabling Fundco to earn up to a 50% interest in the PFC Interests. Fundco will immediately loan the amount of $2,000,000 to PetroFrontier (the "Initial Loan") with completion of formal agreements (the "Formal Agreements" expect to be on or before October 31, 2021. The Initial Loan will be used to commence completion operations on certain wells that have already been drilled by PetroFrontier but have not yet been completed together with workover operations on certain wells that are currently shut-in. It is anticipated that one already licenced horizontal well will also be drilled using the Initial Loan proceeds. Fundco will follow up the Initial Loan with additional funding in the amount of up to $22,000,000 such that PetroFrontier will have been provided the total funding of $24,000,000. While Fundco may provide the Funding entirely in one tranche, the Formal Agreements will provide that Fundco may provide the Funding in three tranches providing that a first tranche must be advanced on or before November 30, 2021. At closing of such first tranche advance, the Initial Loan will have been deemed repaid. In the event that Fundco has not provided the remainder of the first tranche funding prior to November 30, 2021, Fundco's ability to earn an interest in the PFC Interests will terminate and PetroFrontier has agreed to assume the obligations under the Initial Loan. In such case, the Initial Loan will be repayable on or before October 31, 2022 and will bear interest at a rate of 12%. PetroFrontier will grant a general security agreement securing the obligations under the Initial Loan which will be subordinated to PetroFrontier's existing credit facilities. All resource pools generated by expenditures funded by Fundco will be allocated to Fundco (up to the amount advanced under any tranche) such that Fundco will be able to renounce such resource pools to its investors.