Mr. Marshall Abbott reports

ARROW ANNOUNCES GRANT AND PDMR EXERCISE OF STOCK OPTIONS

Arrow Exploration Corp. has made a stock option grant and noted an exercise of stock options by certain directors and persons discharging managerial responsibilities (PDMRs).

Stock options grant

The company has granted 2,881,296 stock options to directors, officers and employees, pursuant to the company's stock option plan. The plan is intended to assist in attracting, retaining, engaging and rewarding directors, officers and employees of the company, provide additional incentive to these people for their efforts on behalf of the company, and align with the enhancement of shareholder value. The plan was reapproved by shareholders at the company's annual general meeting held on Sept. 24, 2025. Under the plan, the company is able to issue options to a maximum of 10 per cent of the number of issued and outstanding common shares in the company from time to time. The following PDMRs have been granted the options listed below.

The options granted above have a strike price of 37.5 cents and vest in thirds on each of the first, second and third anniversaries of grant. The options expire six months after vesting. Following these grants and the exercises outlined below, the company has a total of 20,845,001 options issued under the plan.

In line with previous awards, the options being granted today are to compensate the recipients for previous awards that have recently lapsed or been exercised, meaning that their total interest in shares under option remains approximately constant.

Stock options exercise

On March 23, 2026, the company accepted exercising notices from PDMR holders who elected to use a cashless exercise of options. Using this method, which is permissible under the terms of the company's share option plan, as approved as a resolution by shareholders on Sept. 24, 2025, the company pays the option holder the value of the option (volume-weighted average trading price less strike price) from cash reserves. Accordingly, no new shares were issued for the option exercise.

A summary of the options exercised is as follows.

About Arrow Exploration Corp.

Arrow Exploration (operating in Colombia through a branch of its 100-per-cent-owned subsidiary, Arrow Exploration Switzerland GmbH) is a publicly traded company with a portfolio of premier Colombian oil assets that are underexploited and underexplored and offer high potential growth. The company's business plan is to expand oil production from some of Colombia's most active basins, including the Llanos, Middle Magdalena Valley (MMV) and Putumayo basins. The asset base is predominantly operated with high working interests, and the Brent-linked light oil pricing exposure combines with low royalties to yield attractive potential operating margins. Pursuant to certain private agreements entered between Arrow and its partner, Arrow is entitled to receive 50 per cent of the production from the Tapir block and has the right to request approval to Ecopetrol SA for the assignment of 50 per cent of all rights, interests and obligations under the Tapir association contract. Arrow is listed on the AIM (Alternative Investment Market) of the London Stock Exchange and on TSX Venture Exchange under the symbol AXL.

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