Tamarack Valley Energy Announces Declaration of Monthly Dividend and Approval of Normal Course Issuer Bid

Calgary, Alberta – January 16, 2023 – Tamarack Valley Energy Ltd. (“Tamarack” or the “Company”) is pleased to announce that the Board of Directors has declared a monthly cash dividend on its common shares of C$0.0125 per share in accordance with the Company’s dividend policy. The dividend will be payable on February 15, 2023, to shareholders of record at the close of business on January 31, 2023. This monthly cash dividend is designated as an “eligible dividend” for Canadian income tax purposes. In addition, the Toronto Stock Exchange (the “TSX”) has approved the Company’s application for a normal course issuer bid (the “NCIB”). Tamarack purchased an aggregate of 4,362,700 common shares at a volume weighted average price per share of $4.24, through the TSX and alternative Canadian trading systems, under the previous NCIB which permitted repurchases of up to 20,354,360 common shares.

The NCIB allows Tamarack to purchase up to 27,847,033 common shares of the Company (representing approximately 5% of the 556,940,664 outstanding common shares as of January 9, 2023) over a period of twelve months commencing on January 19, 2023. The NCIB will expire no later than January 18, 2024. The actual number of common shares which may be purchased pursuant to the NCIB will be determined by management of the Company. Any common shares that are purchased under the NCIB will be cancelled upon their purchase by Tamarack.

Under the NCIB, common shares may be repurchased in open market transactions on the TSX, in accordance with the rules of the TSX governing NCIBs or alternative Canadian trading and in accordance with the rules of the TSX governing NCIBs. The price which the Company will pay for any such common shares will be the prevailing market price at the time of purchase.

The total number of common shares the Company is permitted to purchase is subject to a daily purchase limit of 890,025 common shares, representing 25% of the average daily trading volume⁽¹⁾ of 3,560,101 common shares on the TSX calculated for the six-month period ended December 31, 2022. Notwithstanding the daily purchase limit, Tamarack may make one block purchase per calendar week which exceeds the daily repurchase restrictions.

The NCIB will provide an additional tool for the reinvestment of excess free funds flow⁽²⁾ to increase long-term total shareholder returns. Tamarack believes that at times, the prevailing share price does not reflect the underlying value of the common shares and the repurchase of common shares represents an opportunity to improve per share metrics. As with all expenditures, Tamarack will remain vigilant in ensuring it retains flexibility and liquidity on its balance sheet.

About Tamarack Valley Energy Ltd.

Tamarack is an oil and gas exploration and production company committed to creating long-term value for its shareholders through sustainable free funds flow generation, financial stability and the return of capital. The Company has an extensive inventory of low-risk, oil development drilling locations focused primarily on Charlie Lake, Clearwater and EOR plays in Alberta. Operating as a responsible corporate citizen is a key focus to ensure we deliver on our environmental, social and governance (ESG) commitments and goals. For more information, please visit the Company’s website at www.tamarackvalley.ca.

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Notes to Press Release

1. Average daily trading volumes, as per the TSX Company Manual, represent the average daily trading volume of 3,583,516 common shares on the TSX calculated for the six-month period ended December 31, 2022 and adjusted for the 2,926,800 NCIB purchases made through the TSX in the same period.
2. See “Specified Financial Measures”

For additional information, please contact

Brian Schmidt
President & CEO
Tamarack Valley Energy Ltd.
Phone: 403.263.4440
www.tamarackvalley.ca

Steve Buytels
VP Finance & CFO
Tamarack Valley Energy Ltd.
Phone: 403.263.4440
www.tamarackvalley.ca

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