Mr. Marshall Abbott reports

ARROW ANNOUNCES Q2 2026 INTERIM RESULTS

Arrow Exploration Corp. has filed its interim condensed (unaudited) consolidated financial statements and management discussion and analysis (MD&A) for the three months ended June 30, 2026, which are available on SEDAR+ and will also be available shortly on Arrow's website.

Q2 2026 highlights:

• Recorded $34.2-million of total oil and natural gas revenue, net of royalties, representing a 116-per-cent increase when compared with the same period in 2025 (Q2 2025: $15.9-million);
• Average corporate production of 4,902 barrels of oil equivalent per day, representing a 30-per-cent increase when compared with the same period in 2025 (Q2 2025: 3,768 boe/d);
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $25.1-million, a 300-per-cent increase when compared with the same period in 2025 (Q2 2025: $6.3-million);
• Realized corporate operating netbacks of $63.42 per barrel of oil equivalent;
• Cash position of $28.5-million at the end of Q2 2026 and no debt;
• Q2 2026 operating cash flows of $15.7-million;
• Drilled one successful exploration well and two additional development wells in the Icaco field (IC) and one horizontal development well in the Mateguafa Attic field in the Tapir block;
• Net income of $10.4-million (Q2 2025: loss of $900,000).

Post-period-end highlights:

• Drilled two development wells and spudded a third well at the Icaco field;
• Completed the acquisition of the Thorsby field in Alberta, Canada, adding production, proved reserves and additional upside opportunities for development drilling (please refer to press release dated Aug. 13, 2026, for more details);
• Recompleted two Carrizales Norte wells to increase production.

Tapir extension

The company continues constructive engagement with authorities regarding the Tapir block extension and believes it is well positioned to secure the extension based on satisfaction all of the relevant requirements. Arrow will keep the market updated on progress with its licence extension discussions in future releases.

Marshall Abbott, chief executive officer of Arrow Exploration, commented: "The second quarter of 2026 has been very productive for Arrow -- our best quarter yet. The discovery of the Icaco field has resulted in the beginning of a large development plan. The multiformation discovery will result in additional reserves and drilling inventory for Arrow. We are excited by the Icaco discovery; it has become a major production platform with a material impact on the company.

"Arrow significantly increased revenue and EBITDA while sustaining increased production, which, along with a robust balance sheet, supports the ongoing capital program. The focus for the remainder of 2026 will be to drill additional wells at the Icaco pad and numerous well recompletions to improve productivity in our currently most prolific fields."

Discussion of operating results

During Q2 2026, the company's production continued to increase due to additional volumes of oil crude production from the Mateguafa Attic field and the new Icaco field in the Tapir block, offset by decreased production in other fields due to natural declines. This has allowed the company to continue its healthy level of operating results and EBITDA.

The company's average production for the three months ended June 30, 2026, was 4,902 boe/d, which consisted of crude oil production in Colombia of 4,801 boe/d, natural gas production of 574,000 cubic feet per day and minor amounts of natural gas liquids. The company's Q2 2026 production was 30 per cent higher than its Q2 2025 production and 4 per cent higher than Q1 2026, due to additional volumes from the Mateguafa Attic and Icaco fields, offset by declines in other fields.

Discussion of financial results

The company realized prices of $89.65 and $76.95 per boe during the three months ended June 30, 2026 (2025: $53.33) due to overall increase in crude oil and natural gas prices during the first half of 2026, offset by decreases in natural gas prices.

Operating netbacks

The company also continued to realize good oil operating netbacks, as summarized below.

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 into 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 the TSX Venture Exchange under the symbol AXL.

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