Note: The following press release is an English translation of the Japanese-language original

March 22, 2022
Company Name:Japan Petroleum Exploration Co., Ltd. (JAPEX)Securities Code:

1662 (First Section of the Tokyo Stock Exchange)

Representative:

FUJITA Masahiro, Representative Director and President

Inquiries:

Corporate Communication OfficeTEL:+81-3-6268-7110

Notice Regarding Dissolution of a Subsidiary, Waiver of Claims,
and Posting of Extraordinary Income (gain on forgiveness of debts)
Japan Petroleum Exploration Co., Ltd. (JAPEX) announced that its Board of Directors has resolved today
to dissolve its subsidiary, Canada Oil Sands Co., Ltd. (CANOS), and waive its claims as follows.

1. Reason for dissolution and waiver of claims
As announced in disclosure document "Ending our Promotion of the Oil Sands Project in Canada, theChange in Subsidiary, the Recognition of Extraordinary Losses, and the Voluntary Return of Executive
Compensation" dated July 29, 2021, we have resolved to transfer all shares of Japan Canada Oil Sands
Limited (JACOS), which we hold 100% interests through CANOS.
Subsequently, CANOS suceeded JACOS’ reimbursement obligations arised from the subrogation paymentof JACOS' borrowings from financial institutions by the guarantor, and completed the share transfer
procedures on September 17, 2021. Since the concerned parties have completed the arrangement to allocate
the proceeds of the share transfer to the partial repayment of such succeeded debt and to foregive theremaining debt, we have decided to waive the unrecoverable claims against CANOS and dissolve CANOS atthe end of March 2022 (planned).
2. Outline of the subsidiary to be dissolved
(1)

Name

Canada Oil Sands Co., Ltd. (CANOS)(2)

Location

SAPIA Tower, 1-7-12, Marunouchi, Chiyoda-ku, Tokyo(3)

Title and Name ofABE Satoshi, Representative Director and President

Representative(4)

Description ofInvestment on exploration and development of oil sands through Japan

Business

Canada Oil Sands Limited(5)

Share Capital

34.8635 billion yen(6)Date of Incorporation

December 21, 1978

(7)

Major Shareholder

Japan Petroleum Exploration Co., Ltd. (JAPEX)
1/3

100%

and Shareholding
Ratio
(8)

Relationship with theCapital

CANOS is a consolidated subsidiary in which JAPEX

Company

Relationshipholds 100% of the voting rights.

Personnel

JAPEX has dispatched five directors to CANOS.

Relationship
Business

There are transactions related to the dispatch of officers

Relationshipand employees from JAPEX to CANOS. In addition,
JAPEX has loans and other receivables from CANOS.

Related parties CANOS is a consolidated subsidiary of JAPEX and is astatus(9)

related party.

Business results of this company for the past three years (Millions of yen)
Fiscal year

March 2019

March 2020

March 2021

Net assets

66,797

66,732

66,571

Total assets

67,08766,75266.610Net assets per share

649.49648.86647.30---Operating profit

(81)

(64)

(156)

Ordinary profit

(32)

(63)

(159)

Net profit

(33)

(65)

(160)

(0.33)(0.63)(1.56)－－－(Yen)
Net sales

Net profit per share(Yen)
Dividend per share

3. Schedule of dissolution
March 22, 2022

Resolution by the Board of Directors to dissolve CANOSEnd of March 2022 (Planned)

Resolution by the shareholder meeting of CANOS to dissolve CANOS

June 2022 (Planned)

Completion of liquidation

4. Details of the waiver of claims by JAPEX group
Type of claim

Loans receivables and right to reimbursement for fulfillment of guarantee
obligations, etc.

Amount of claim

103,297 thousand USD (Approx. 11.8 billion yen)

Date of execution

March 23, 2022 (Planned)

2/3

5. Extraordinary gains recognition
The gain on forgiveness of debts due to the waiver of JAPEX group's claims will be offset and eliminatedas an internal transaction, and therefore will have no impact on the consolidated financial results. Also, inthe non-consolidated financial results, for the fourth quarter of the fiscal year ending March 31, 2022, we
expect to record approximately 11.1 billion yen in bad debts written off related to the waiver of loans andother receivables from CANOS, which we have already recorded as a provision for allowance for doubtful
accounts of affiliated companies in extraordinary losses by the third quarter of the same period.
On the other hand, in the consolidated financial results for the fourth quarter of the fiscal year ending
March 31, 2022, we will record an extraordinary gain of approximately 12.4 billion yen from the forgivenessof debts due to debt waiver by the creditors of CANOS other than JAPEX group.
The consolidated financial forecast for the fiscal year ending March 31, 2022, including this matter, will be
disclosed appropriately as soon as it is confirmed after careful examination.
< Previous Announcement Link>
・“Ending our Promotion of the Oil Sands Project in Canada, the Change in Subsidiary, the Recognition ofExtraordinary Losses, and the Voluntary Return of Executive Compensation” on July 29, 2021###3/3