BRISBANE - The directors and management of Strata-X Energy Ltd. ('Strata-X' or the 'Company') (TSX-V: SXE) (ASX: SXA) are pleased to announce that Strata-X and Real Energy, operator of Project Venus located within the Surat Basin Walloon CSG fairway (the JV), plan to commence ground operations in Octoberfor its first CSG pilot well named Venus-1.

Roma, Australia-based drilling contractor Silver City, has been selected to drill the Venus-1 well, the Project's first CSG well. The well is planned to be drilled to 400 metres, cased, then drilled out to a total depth of approximately 680 metres, leaving the highly gas saturated Juandah coal seams open and uncased.

Shortly after the Silver City drill rig is demobilized, a Wellpro coil tubing unit will be mobilised and carry out a short-term initial water influx test. After this, about 40 different intervals of highly gas saturated Juandah coal seams (prognoses indicate a total of 26 metres of very gassy coals) will be abrasive jetted. Abrasive jetting is a non-frack coil tubing-deployed reservoir stimulation method, designed to improve water influx and ultimately gas flows from the targeted gassy coals. To compare the before and after stimulation results, a second short-term controlled water influx test will be carried out.

The post-stimulation water influx rate and other data are needed to design production equipment and facilities. Venus-1 will be equipped with a downhole pump, surface facilities and water handling methods as required to carry out a controlled drawdown flow test over several months.

The Venus Pilot drilling and set up is planned for October, with the subsequent production test expected to continue into early 2021. The proposed production test is designed to prove initial gas breakout and increasing gas flows over the controlled draw down period, as required to model and predict future gas flow rates and potentially commercial gas flow rates.

The results of the production test will also be used to either expand the pilot or, if commercial flow rates are achieved, commence an aggressive appraisal program designed to certify sufficient reserves for the Project Venus JV to secure gas sales agreements, allowing commercial field development.

Venus-1 fully funded through a A$700,000 placement

Strata-X is undertaking a non-brokered private placement to sophisticated and institutional investors in Australia of up to 11,666,667 Units ('Units') in the Company at a price of A$0.06 per Unit for gross proceeds of up to A$700,000 ('Placement'). Each Unit consists of one Chess Depository Unit ('CDI') and one half of one option. Each option will be unquoted and exercisable into one CDI at an exercise price of A$0.12 up until 30 September, 2022 ('Option'). Each Placement CDI will represent one common share of Strata-X and will rank equally with existing CDIs. All CDIs issued pursuant to the Placement are to be fully tradable and listed on the ASX, subject to the necessary approvals by the TSX-V and ASX, respectively.

Funds raised from the Placement will be used primarily to fund Strata-X's joint venture share of the CSG pilot well named Venus-1 on Project Venus located within the Surat Basin Walloon CSG fairway, for general working capital purposes and any costs of the Placement.

Strata-X chairman, Ron Prefontaine, has agreed to subscribe (through related entities) for any Placement Units not subscribed for, and has agreed that no fees will be payable in relation to any of his subscriptions. Any subscription by Mr Prefontaine (or his related entities) will be subject to shareholder approval to be sought at the Company's AGM (scheduled for 13 November 2020).

About Project Venus

The 154 km2 Project Venus (Strata-X 50%/Real Energy 50% JV) is located within the Walloon CSG fairway in the Surat Basin. An independent expert has certified, on a best estimate basis, a Prospective Gas Resource of 658 Bcf (694 PJ).(1) Given the location of this tenement immediately adjacent to gas infrastructure and within a proven giant gas fairway, the Venus Project offers the potential to achieve early cash flows.

As announced on 15 July 2020, Strata-X Energy and Real Energy have agreed to merge and rename the merged company Pure Energy. Post -merger, Pure Energy will own 100% of Project Venus.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements, which relate to future events or future performance, including but not limited to, the completion and size of the Placement, receipt of regulatory approvals and timing thereof, the Corporation's business strategies and plans for the use of such Placement proceeds, capital expenditure programs and estimates relating to timing and costs, and reflect management's current expectations and assumptions, including, but not limited to the timing and receipt of necessary regulatory approvals and third party approvals and completion of the Placement and stability of general economic and financial market conditions. The use of any of the words 'anticipate', 'continue', 'estimate', 'expect', 'may', 'will', 'project', 'should', 'believe', and similar expressions is intended to identify forward-looking statements. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company.

Those factors are not, and should not be construed as being exhaustive. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Contact:

Colin Christensen

Tel: +1 403-483-8363

Email: colin@strata-x.com

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