$100 million Bond Issue and Operations Update

PetroTal announces contemplated $100 million Bond Issue and Operations Update

Funds anticipated to be primarily invested to expand development of the Bretana oil field and prepay 100% of Petroperu's restructured debt

NOT FOR DISTRIBUTION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW

Calgary, AB and Houston, TX - January 12, 2021 - PetroTal Corp. ("PetroTal" or the "Company") (TSX‐V: TAL and AIM: PTAL) is pleased to announce that it has mandated Pareto Securities AS to arrange a series of fixed income investor virtual meetings commencing January 14, 2021.

Subject to, inter alia, market conditions, a new USD 100 million senior secured three year bond issue (the "Bond Issue") may follow.  The proceeds of the potential Bond Issue will be used to settle in full the cumulative oil price difference liability owed to Petroperu (approximately USD 16.6 million - as previously announced); to finance the ongoing development of PetroTal's flagship Bretana oil field in Northern Peru; to provide funds to support the Company's hedging program; and to finance potential synergistic acquisitions.

Further details will be provided as and when appropriate.

Bretana Oil Field Update

On January 7, 2021, the Company announced that, coincident with full commencement of Petroperu's Northern Oil Pipeline (ONP) operations, PetroTal's production was approximately 9,500 barrels of oil per day (''bopd'') and was expected to increase as operations returned to a stabilized level.  Since January 7, 2021, oil production has increased to an average of 10,025 bopd, with optimization continuing.

Additionally, as PetroTal continues to ensure it has export optionality, the Company has now signed an agreement for a second pilot shipment through Brazil in February 2021, of up to 220,000 barrels of oil.  The increased volume of this shipment over the initial pilot export is expected to improve overall economics and lead towards the establishment of regular exports, complementing sales into the ONP and to the Iquitos refinery.

Proceeds from the contemplated Bond Issue will allow PetroTal to resume development drilling at Bretana in March 2021.  In anticipation of expected higher oil production, the modular processing equipment for expansion of the second phase of Central Processing Facilities (CPF#2) is complete and is currently en route to Bretana.

Updated Corporate Presentation

The Company announces that an updated presentation is now available on the Company's website at www.petrotal-corp.com.

ABOUT PETROTAL

PetroTal is a publicly‐traded, dual‐quoted (TSXV: TAL and AIM: PTAL) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru.  PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018, and in early 2020 became the second largest crude oil producer in Peru.  Additionally, the Company has large exploration prospects and is engaged in finding a partner to drill the Osheki prospect in Block 107.  The Company's management team has significant experience in developing and exploring for oil in Northern Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field.

For further information, please see the Company's website at www.petrotal-corp.com, the Company's filed documents at www.sedar.com, or contact:

Douglas Urch

Executive Vice President and Chief Financial Officer

[email protected]

T: (713) 609-9101

Manuel Pablo Zuniga-Pflucker

President and Chief Executive Officer

[email protected]

T: (713) 609-9101

Pareto Securities AS

Fixed income sales

T : 47 22 87 87 71

Celicourt Communications

Mark Antelme / Jimmy Lea

[email protected]

T : 44 (0) 208 434 2643

Strand Hanson Limited (Nominated & Financial Adviser)

James Spinney / Ritchie Balmer

T: 44 (0) 207 409 3494

Stifel Nicolaus Europe Limited (Joint Broker)

Callum Stewart / Simon Mensley / Ashton Clanfield

Tel: +44 (0) 20 7710 7600

Auctus Advisors LLP (Joint Broker)

Jonathan Wright / Rupert Holdsworth Hunt / Harry Baker

T: +44 (0) 7711 627449

This announcement includes inside information.

READER ADVISORIES

NO OFFER: The information contained in this press release is for information purposes only and does not purport to be full or complete or constitute: (a) a prospectus or offering memorandum; or (b) an admission document prepared in accordance with AIM rules. THIS ANNOUNCEMENT DOES NOT CONSTITUTE OR CONTAIN ANY INVITATION, SOLICITATION, RECOMMENDATION, OFFER OR ADVICE TO ANY PERSON TO SUBSCRIBE FOR, OTHERWISE ACQUIRE OR DISPOSE OF ANY SECURITIES OF PETROTAL CORP.  The publication, distribution or release of this announcement may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with such restrictions may constitute a violation of the securities laws of any such jurisdiction. The Company does not intend to register any securities referred to herein in the United States or to conduct a public offering of securities in the United States.

FORWARD‐LOOKING STATEMENTS: This press release contains certain statements that may be deemed to be forward‐looking statements.  Such statements relate to possible future events, including, but not limited to: the Bond Issue being conducted and the successful marketing and closing thereof; the terms of the securities proposed to be issued under the Bond Issue; the use of proceeds of the potential Bond Issue; the Company holding virtual investor meetings and the results thereof; the Company providing further details in respect of the Bond Offering; and PetroTal's business strategy, generally, including development of the Bretana oil field and potential future acquisitions..  All statements other than statements of historical fact may be forward‐looking statements.  Forward‐ looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "estimate", "potential", "will", "should", "continue", "may", "objective" and similar expressions.  The forward‐looking statements are based on certain key expectations and assumptions made by the Company.  Although the Company believes that the expectations and assumptions on which the forward‐looking statements are based are reasonable, undue reliance should not be placed on the forward‐looking statements because the Company can give no assurance that they will prove to be correct.  Since forward‐looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.  Actual results could differ materially from those currently anticipated due to a number of factors and risks.  These include, but are not limited to, risks associated with the oil and gas industry in general (e. g. , operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price and exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company's production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.  In addition, the Company cautions that current global uncertainty with respect to the spread of the COVID-19 virus and its effect on the broader global economy may have a significant negative effect on the Company. While the precise impact of the COVID-19 virus on the Company remains unknown, rapid spread of the COVID-19 virus may continue to have a material adverse effect on global economic activity, and may continue to result in volatility and disruption to global supply chains, operations, mobility of people and the financial markets, which could affect interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. Please refer to the risk factors identified in the Company's annual information form and management's discussion and analysis for the year ended December 31, 2019 which are available on SEDAR at www.sedar.com.  The forward‐looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

OIL REFERENCES: All references to "oil" or "crude oil" production, revenue or sales in this press release mean "heavy crude oil" as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.