Fox Creek Energy Announces $2,000,000 Private Placement and Closing of First Tranche

/NOT FOR DISSEMINATION IN THE U.S. OR FOR DISTIRBUTION TO THE U.S. NEWS WIRE SERVICES/

VANCOUVER, BC, Oct. 6, 2026 /CNW/ -- Fox Creek Energy Ltd. (the "Company" or "Fox Creek Energy" or "FCE") is pleased to announce a non-brokered private placement to raise gross proceeds of up to $2,000,000 through the issuance of up to 40,000,000 common shares at the issue price of $0.05 per share (the "Financing"), and the closing of the first tranche of the Financing. The company raised aggregate gross proceeds of $1,815,000 through the issuance of 36,300,000 common shares on closing of the first tranche of the Financing (the "First Tranche"). 

"We are pleased to announce the successful closing of the first tranche of this financing," said Hamid Velji, Interim Chief Executive Officer. "The proceeds will strengthen our financial position and provide the flexibility to pursue strategic opportunities with the goal of creating long-term value for our shareholders."

The Company intends to use the net proceeds of the First Tranche towards general working capital expenses, evaluation and, if warranted, the acquisition of business acquisition targets and the advancement of its business objectives. The shares issued in the First Tranche will be subject to a hold period expiring four months and one day from the date of issuance. The Company may close additional tranches of the Financing in due course, although the timing for completion is unknown at this time.

Certain directors, an officer and significant shareholder of the Company acquired, indirectly through their respective holding companies, an aggregate of 14,100,000 shares pursuant to the First Tranche, which constituted related party transactions within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). In particular, Hamid Velji (Interim CEO, Interim CFO, director and significant shareholder) acquired 5,000,000 shares for $250,000, Jamil Kassam (director) acquired 4,550,000 shares for $227,500 and Ross Ewaniuk (a significant shareholder) indirectly acquired 4,550,000 shares for $227,500. The Company relied upon the exemptions from the formal valuation and minority shareholder approval requirements contained in sections 5.5(b) and 5.7(1)(b) of MI 61-101, respectively, as the Company is not listed on specified markets, the fair market value of the related party subscriptions is not more than $2.5 million and each related party subscription was approved by one or more independent directors, as determined in accordance with MI 61-101. The Company did not file a material change report more than 21 days before the expected closing of the First Tranche because the Company wished to complete the First Tranche on an expedited basis for sound business reasons.

Early Warning Disclosure

Hamid Velji, a director, officer and significant shareholder of the Company, indirectly acquired 5,000,000 shares through a holding company pursuant to the First Tranche for aggregate consideration of $250,000 representing a price of $0.05 per share. Immediately prior to closing of the First Tranche, Mr. Velji beneficially owned, directly or indirectly, 347,888 shares, representing approximately 40.65% of the 855,791 issued and outstanding Shares on a non-diluted basis. Immediately following closing of the First Tranche, Mr. Velji beneficially owns, directly or indirectly, 5,347,888 shares representing approximately 14.39% of the total 37,155,791 shares issued and outstanding following closing of the First Tranche on an undiluted basis. The shares held by Mr. Velji were acquired for, and continue to be held for, investment purposes. Mr. Velji may in the future take such actions in respect of his holdings in the Company as the acquiror may deem appropriate in light of the circumstances then existing, including the purchase of additional securities of the Company through open market purchases or privately negotiated transactions or the sale of all or a portion of the acquiror's holdings in the open market or in privately negotiated transactions to one or more purchasers, subject in each case to applicable securities law.

Jamil Kassam, a director of the Company, indirectly acquired 4,550,000 shares through a holding company pursuant to the First Tranche for aggregate consideration of $227,500 representing a price of $0.05 per share. Immediately prior to closing of the First Tranche, Mr. Kassam did not beneficially own, directly or indirectly, any securities of the Company. Immediately following closing of the First Tranche, Mr. Kassam beneficially owns, directly or indirectly, 4,550,000 shares representing approximately 12.25% of the total 37,155,791 shares issued and outstanding following closing of the First Tranche on an undiluted basis. The shares held by Mr. Kassam were acquired for, and continue to be held for, investment purposes. Mr. Kassam may in the future take such actions in respect of his holdings in the Company as the acquiror may deem appropriate in light of the circumstances then existing, including the purchase of additional securities of the Company through open market purchases or privately negotiated transactions or the sale of all or a portion of the acquiror's holdings in the open market or in privately negotiated transactions to one or more purchasers, subject in each case to applicable securities law.

Ross Ewaniuk, a significant shareholder of the Company, indirectly acquired 4,550,000 shares through a holding company pursuant to the First Tranche for aggregate consideration of $227,500 representing a price of $0.05 per share. Immediately prior to closing of the First Tranche, Mr. Ewaniuk beneficially owned, directly or indirectly, 243,275 shares, representing approximately 28.43% of the 855,791 issued and outstanding Shares on a non-diluted basis. Immediately following closing of the First Tranche, Mr. Ewaniuk beneficially owns, directly or indirectly, 4,793,275 shares representing approximately 12.90% of the total 37,155,791 shares issued and outstanding following closing of the First Tranche on an undiluted basis. The shares held by Mr. Ewaniuk were acquired for, and continue to be held for, investment purposes. Mr. Ewaniuk may in the future take such actions in respect of his holdings in the Company as the acquiror may deem appropriate in light of the circumstances then existing, including the purchase of additional securities of the Company through open market purchases or privately negotiated transactions or the sale of all or a portion of the acquiror's holdings in the open market or in privately negotiated transactions to one or more purchasers, subject in each case to applicable securities law.

A copy of the early warning reports for each of Messrs. Velji, Kassam and Ewaniuk will be filed on the Company's profile on SEDAR+ (www.sedarplus.ca).

About Fox Creek Energy

Fox Creek Energy is a reporting issuer actively considering opportunities for strategic business acquisitions, combinations and financing.

On behalf of the Board of Directors

Hamid Velji
Interim CEO, Interim CFO, Corporate Secretary and Director

Cautionary Note Regarding Forward-Looking Statements

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements in this news release include, but are not limited to, statements regarding the Financing and First Tranche, the proposed use of proceeds of the First Trance, insider participation in the Financing, the Early Warning Disclosure regarding insider participation and the Company's business plans. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including risks related to factors beyond the control of the Company, that the Company does not execute its business plan as proposed, that the Company does not have sufficient funds to advance its business plan, and such other risks described in the Company's public disclosure and risks which are inherent to businesses of this nature. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ from forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Fox Creek Energy Ltd.

For more information about Fox Creek Energy, please contact: Hamid Velji, Interim CEO, Interim CFO, Corporate Secretary and Director, ‎Telephone: [phone]