Dr. Paul Clarke reports

CANCAMBRIA ENERGY ANNOUNCES APPROVAL OF TECHNICAL OPERATING PLAN FOR KISKUNHALAS CONCESSION AREA, ADVANCING STRATEGIC OIL AND GAS DEVELOPMENT IN HUNGARY

The Hungarian authority responsible for hydrocarbon exploration activities has approved Cancambria Energy Corp.'s technical operating plan for the Kiskunhalas concession area (KCA), setting forth the commitment and schedule of development activities for the next four years.

"Securing approval of our technical operating plan is an important step in unlocking the strategic value of the KCA," said Dr. Paul Clarke, president and chief executive officer. "Given the supply-side concerns and associated commodity prices for natural gas in Europe, we believe this project represents a meaningful opportunity within the onshore European energy landscape. Furthermore, energy markets are reacting quickly to disruptions in global LNG [liquefied natural gas] supply, with European natural gas prices rising significantly in recent days. While the broader geopolitical situation continues to evolve, the underlying take-away is that Europe continues to place significant value on stable, regional sources of natural gas. Our project in Hungary is located in a highly strategic part of central Europe, near established gas infrastructure servicing major European markets. The contiguous size, 100-per-cent working interest, favourable tax landscape and proximity to established infrastructure make the KCA a compelling investment opportunity."

In accordance with the approved technical operating plan, throughout the remainder of 2026, the company will conduct detailed geological, geophysical and engineering studies utilizing legacy 2-D and 3-D seismic data, calibrated against Cancambria's proprietary 3-D seismic data set acquired in 2023 over its adjacent BA-IX mining plot. These studies will also integrate production and well data from more than 300 legacy oil and gas wells in the region.

Pursuant to the approved technical operating plan, the company will undertake a 3-D seismic acquisition program no later than year-end 2027, with a two-well drilling commitment to follow by year-end 2029. The KCA covers approximately 945 square kilometres and was awarded to the company in Q1 2025 through a competitive tender process.

The KCA provides the company with a 100-per-cent working interest across all depths and includes both conventional and unconventional resource potential. Upon successful completion of the prescribed work commitment, the KCA will automatically transition to a production licence with a 20-year term. The company reserves the right to, at any point, accelerate the above work program as a function of investment levels and other market and/or commodity pricing considerations.

About the Kiskunhalas concession area

The KCA is a strategically located, large-scale asset situated in southern Hungary, within the prolific Pannonian basin, a region with a long history of conventional hydrocarbon production. At over 230,000 acres, the KCA covers a significant contiguous land position, overlying multiple stacked reservoir targets, characterized by prolific conventional pay, low-permeability sandstone formations, and naturally fractured basement requiring advanced drilling and completions technologies.

The KCA benefits from existing regional infrastructure, including proximity to processing facilities and pipeline networks tied into domestic European gas markets, enhancing future commercialization pathways and lowering potential development lead times. Hungary's supportive regulatory framework and strategic importance within the European energy supply chain further position the concession as a potentially valuable long-term gas resource.

The company's work to date has focused on the southern portion of the KCA, namely an extension of the Kiskunhalas Trough, where access to legacy seismic data sets provides a strong technical foundation for the extension of the unconventional tight gas accumulation discovered on the company's BA-IX mining plot. The company published its estimates of contingent resources in accordance with the requirements of National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities, effective Sept. 30, 2025; details can be downloaded from SEDAR+.

About Cancambria Energy Corp.

Cancambria Energy is a Canadian-based exploration and production company specializing in tight gas development. With a globally experienced leadership team, Cancambria focuses on high-quality, derisked projects with direct access to profitable markets. Leveraging the industry's most advanced technologies, the company aims to commercialize its flagship asset, the 100-per-cent-owned Kiskunhalas project in southern Hungary, a significant gas condensate resource in the heart of Europe.

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