Cuda Oil and Gas Inc. Announces Additional $4 Million Financing from Senior Lender

Cuda Oil and Gas Inc. (TSXV: CUDA) ("Cuda" or the "Company") is pleased to announce an additional $4.0 million of financing ("Credit Facility B") from its Senior Lender, Tallinn Capital Energy Limited Partnership ("Tallinn"), under the Senior Credit Facility agreement signed on January 20, 2021. The additional proceeds will be used for the payment of account payables relating to, and continued development of, its oil assets and miscible gas flood injection program in the Powder River Basin, Converse County, Wyoming.

The original maturity date of November 30, 2021 will remain in effect for the Senior Credit Facility and will also apply to Credit Facility B, and Credit Facility B will be charged interest at 16% per annum unless an event of default occurs and remains, allowing the Senior Lender to apply interest at 19% per annum on outstanding amounts. Repayment of the aggregate credit facilities will continue to follow the original repayment schedule under the Senior Credit Facility. Tallinn will receive customary commitment, work and monitoring fees and a 1% deferred interest fee on Credit Facility B. Approval of the additional financing was received from the Company's subordinate Canadian institutional lender.

Except for an oil put requested by Tallinn, amendments to the Senior Credit Facility agreement as a result of Credit Facility B will not include any additional financial, operational and environmental covenants. However, Tallinn and the Company have agreed to engage a sales advisor by August 9, 2021 to pursue a sales process, including the opening of an online data room by August 27, 2021. Additionally, the Company shall execute one or more non-binding letters of intent by September 30, 2021 and a binding offer to purchase by October 31, 2021. As previously communicated, further rationalization of assets and/or funding through share issuances, private placements, restructuring of existing or new credit facilities, non-core property sales, increased production from core properties combined with improvements in realized oil and gas prices received and/or a combination of these alternatives will be required to continue as a going concern.

About Cuda Oil and Gas Inc.

Cuda Oil and Gas Inc. is engaged in the business of exploring for, developing and producing oil and natural gas, and acquiring oil and natural gas properties across North America. The Cuda management team has worked closely together in both private and public company environments. Cuda will continue to implement its proven strategy of exploring, acquiring, and exploiting with a long-term focus on large, light oil resource- based assets across North America including significant operational experience in the United States. The Cuda management team brings a full spectrum of geotechnical, engineering, negotiating and financial experience to its investment decisions.

For further information please contact:

Glenn DawsonPresident and Chief Executive Officer
Cuda Oil and Gas Inc.
(403) 454-0862