January 20, 2020

DEEP Earth Energy Production Corp. (the “Corporation” or “DEEP”) is pleased to announce
that the 2019-2020 winter drilling and testing program is underway. DEEP intends to drill up to
5 stratigraphic wells by the end of March 31, 2020, to further define the field’s geothermal
reservoir parameters. Drilling contracts have been awarded to Saskatchewan based Panther
Drilling Corporation. The first of these new wells, Border-02A, was completed in December. It
was drilled from the same surface location as DEEP’s first well, Border-01, directionally to the
southwest with a bottom hole located 1,500 metres from Border-01. It was drilled to a depth of
3,834 metres measured hole depth, (3,490 metres true vertical depth from surface).

DEEP’s third well, Border-02B has been drilled to a depth of 3,898 metres measured hole depth,
(3,632 metres true vertical depth from surface) on January 19, 2020. Border-02B was drilled
from the same well bore as Border-02A as a whipstock that enabled the acquisition of additional
data between Border-01 and Border-02A at a reduced cost compared to drilling a separate well
from surface. Border-02B exceeded the record depth of Border-01 by an additional 102 metres
true vertical depth, giving title to this new well as the deepest ever drilled in Saskatchewan.
Border-03, 04 and 05 will be achieved with two drilling rigs in order to complete the program
prior to Spring road bans.

This winter drilling program will greatly increase the confidence in the geological model and test
the recently acquired 3D seismic data. It will also test regional airborne magnetic data
geological interpretation. The multi-well program will achieve flow testing and injection testing
to optimize the locations and design of full-sized production wells planned to be drilled later in
2020 and 2021. The wells from this winter program will also have significant value in
monitoring the reservoir response during and after large scale drilling development required for
full geothermal field development.

In August 2019, DEEP completed a flow and pressure build up test on Border-01 to assess
reservoir pressure and well deliverability. The pressure data affirmed the existence of fracture
flow contributions often sought after in geothermal projects. The stimulated maximum
production rate for this well supports the potential for an economically viable project.

Following the flow and build up test, a series of injectivity and fall-off tests were conducted.
These tests further affirmed that a significant portion of the fluid contribution produced from the
well is sourced from a fractured reservoir system. Upon completion of these tests, the remaining
brine in the tank farm was disposed into the well which accepted the fluids at high rates, limited
only to the capacity of the injection pump. This test confirmed the reservoir’s capability to flow
in both directions – to produce as well as accept injected fluids.

The results of the winter drilling and testing program will provide detailed data required for the
final subsurface and facility design required for full construction. The reservoir data will be
incorporated into a full-scale simulation model to design the full production wells, optimal well
spacing and full field development. This data will also be implemented to optimize the final
surface power facility design.

For more information, please visit DEEP’s website at or contact:
President & CEO, Kirsten Marcia: (306) 261-6979,

Future Oriented Financial Information Disclaimer:
Some of the statements in this shareholder update may be forward-looking statements or statements of future
expectations based on currently available information. Such statements are naturally subject to risks and
uncertainties. Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements. DEEP, including its directors or officers, do not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such statements. Therefore, in no case whatsoever will Deep or its directors or officers be liable to anyone for any decision made or action taken in conjunction with the information and/or statements in this update or for any related damages. You should consult your professional advisors before deciding to make an investment decision in DEEP.

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