Trillion Energy International Announces Debt Settlement Through Share Issuance

Trillion Energy International Inc. has implemented a debt settlement strategy involving the issuance of common shares to address outstanding financial obligations totaling $101,854.10. The company will issue 2,237,082 common shares to various consultants and an officer as part of this comprehensive debt resolution plan. This financial restructuring is conducted in full compliance with Canadian securities regulations, with all issued shares subject to a standard four-month and one-day hold period to ensure regulatory adherence and market stability.

A significant component of this settlement involves the issuance of 573,002 shares to a company officer for management services rendered. This transaction is classified as a related-party transaction under Multilateral Instrument 61-101, which governs protection of minority security holders in special transactions. Trillion Energy is utilizing available regulatory exemptions from the formal valuation and minority shareholder approval requirements, as the value of insider participation remains below the 25% threshold of the company's market capitalization, ensuring the transaction maintains appropriate corporate governance standards.

The debt settlement initiative represents a strategic financial management approach for Trillion Energy as the company focuses on its core operations in oil and natural gas production for European and Turkish markets. The company maintains substantial interests in key energy assets, including a 49% stake in the SASB natural gas field and a 19.6% interest in the Cendere oil field. This share-based debt resolution method provides the company with enhanced financial flexibility while preserving cash resources for ongoing operational requirements and strategic development projects in its energy portfolio.

By converting debt obligations into equity through common share issuance, Trillion Energy demonstrates a proactive approach to balance sheet management that could serve as a model for other energy companies navigating similar financial challenges. The transaction structure aligns creditor interests with long-term shareholder value while maintaining the company's financial stability during a period of global energy market transformation and increasing demand for natural gas resources in European markets.