CALGARY, Canada – May 21, 2024 – High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the
“Corporation”) is pleased to announce that the Toronto Stock Exchange (the “TSX”) has conditionally approved the
listing on the TSX of the new common shares of High Arctic (“New High Arctic Common Shares”) which will be issued
to the shareholders of High Arctic (“Shareholders”) in exchange for their existing common shares (“Common Shares”)
pursuant to the terms of the previously announced plan of arrangement (the “Arrangement”) between the Corporation
and High Arctic Overseas Holdings Corp. (“SpinCo”). It is a condition of closing of the Arrangement that the TSX
conditionally approve the listing of the New High Arctic Common Shares on the TSX or the TSX Venture Exchange
(“TSXV”) on completion of the Arrangement. The TSX has also conditionally accepted the previously announced return
of capital of up to $38.2 million (up to $0.76 per common share) of High Arctic (the “Return of Capital”). The purpose
of the Arrangement is to separate the Corporation’s North American and Papua New Guinea businesses.

As at the closing of the Arrangement, which is expected to occur on July 31, 2024, each Shareholder will receive onequarter
of one (1/4) common share of SpinCo (“SpinCo Common Share”) and one-quarter of one (1/4) New High Arctic
Common Share for each Common Share held. The Arrangement, the Return of Capital, and other resolutions related
to the reorganization, as well as annual meeting matters, will be put to the Shareholders for approval at an annual
general and special meeting of shareholders of the Corporation to be held in Calgary, Alberta on June 17, 2024 (the
“Meeting”). Assuming the required Shareholder approval is obtained at the Meeting, the Return of Capital is expected
to be distributed to Shareholders prior to the closing of the Arrangement.

The Arrangement remains subject to the satisfaction of closing conditions, including the final approval of the listing of
the New High Arctic Common Shares by the TSX, the approval of the listing of the SpinCo Common Shares on the
TSXV, and final approval of the Arrangement by the Court of King’s Bench of Alberta.

For more information on the Arrangement and the Return of Capital, please see the information circular dated May 9,
2024 in respect of the Meeting, available on the Company’s SEDAR+ profile at

About High Arctic
High Arctic is an energy services provider. High Arctic is a market leader in Papua New Guinea providing drilling and
specialized well completion services and supplies rental equipment including rig matting, camps, material handling and
drilling support equipment. In western Canada, High Arctic provides pressure control and other oilfield equipment on a
rental basis to exploration and production companies, from its bases in Whitecourt and Red Deer, Alberta.

For further information, please contact:
Lonn Bate
Interim Chief Financial Officer
High Arctic Energy Services Inc.
Suite 2350, 330–5th Avenue SW
Calgary, Alberta, Canada T2P 0L4

240521 – HAES NR – Conditional Approval