Once in a Lifetime Natural Gas Pricing Window

Dear Shareholders,

I have received several emails and calls from shareholders asking us what we are doing to capture this "Once in a Lifetime NG Pricing Window" as recent natural gas prices have soared to US $13/mcf (CAN +$16/mcf) which if we are in full production, would accomplish tremendous net backs and profits.

So, I wanted to give everyone an idea as to how natural gas prices are set in our neck of the woods.

Our long-term natural gas pricing is set by Botas Petroleum Pipeline Corporation ("BOTAS") in Turkiye based on a variety of factors including oil pricing, European natural gas pricing and other factors.

Commodities such as natural gas have pricing cycles and it is difficult to predict how long these will continue. Over the long term, an economic model is based on a price forecast incorporating the extremely high gas prices currently being received and a look back and forward in time.

Historically, between December 2011 to July 2015 our natural gas prices fluxuated from between US $8 to $11.5/mcf. The low point was during COVID where prices dipped below US $6/mcf.

Natural gas demand in Europe has never been stronger and the fuel is increasingly in short supply, being rationed by Russia who supplies 40% of natural gas to Europe. Turkey imports the lion's share of its natural gas from Russia.

On October 31, 2021, when prices tipped US $10/mcf, we had the long-term pricing assessed by a third-party consultant, who concluded prices between US $9.50/mcf - US $8.50/mcf would continue long into the future.

Since then, natural gas has gone to $13/MCF, higher than anyone ever predicted. No one could predict the remarkably cold winter of 2022, a shortage for economic and political gain limiting supply, and that Germany would shut down its Nuclear reactors to promote "green energy" etc.

Regional demand continues to grow. In 2020, around 1,765.5 Bcf of gas was distributed in Turkiye and according to BOTAS for 2021 that increased by 23.2% to 2,175 Bcf of gas. With climate change, Turkiye is experiencing drier seasons resulting in less hydroelectric and more consumption of natural gas to generate electricity. Natural gas distribution is expanding every year to increase residential and industrial gas consumption and demand.

That brings to back to me our most recent Investor Presentation on the Company's website where we have the NPV10% values for our current work program and my thoughts on the pricing window.

I believe that the "Once in a Lifetime NG Pricing Window" is not once in a lifetime, and gas prices will remain strong in Turkiye as they have always been in the past. However, starting our 2022 development program during the strongest natural gas prices in recent history is fortuitous for the Company.

Yours Truly

Arthur Halleran

About the Company

Trillion Energy is an oil and gas producing company with multiple assets throughout Turkey and Bulgaria. The Company is 49% owner of the SASB natural gas field, one of the Black Sea's first major natural gas development projects; a 19.6% (except three wells with 9.8%) ownership interest in the Cendere oil field; and in Bulgaria, the Vranino 1-11 block, a prospective unconventional natural gas property.

The Company's NI 51-101 and other reports relating to its reserves as of December 31, 2020, and prospective resources may be found on www.sedar.com as well as the Company's website.

Contact

Art Halleran: 1-250-996-4211

Corporate offices: 1-778-819-1585

e-mail: [email protected]

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