Mr. Shawn Van Spankeren reports

CARDINAL ENERGY LTD. ANNOUNCES CLOSING OF $104.7 MILLION BOUGHT DEAL OFFERING OF COMMON SHARES

Cardinal Energy Ltd. has completed its previously announced upsized bought deal offering of common shares with a syndicate of underwriters co-led by RBC Capital Markets and CIBC Capital Markets, and including ATB Capital Markets, BMO Capital Markets, Peters & Co. Ltd., and Raymond James Ltd.

In connection with the offering, Cardinal issued 12.1 million common shares, inclusive of 1.1 million common shares issued on the full exercise of the overallotment option, at an issue price of $8.65 per common share for total gross proceeds of approximately $104.7-million. Insiders of Cardinal acquired $3.5-million of common shares pursuant to the offering.

The company intends to use the net proceeds of the offering to first repay and reduce outstanding indebtedness under its senior credit facility, which will be redrawn to accelerate the development of its second thermal oil project at Reford, and for general corporate purposes.

The common shares were offered and sold by way of a prospectus supplement dated Jan. 30, 2026, to the company's short form base shelf prospectus dated March 28, 2024, filed in each of the provinces of Canada, other than Quebec, a copy of which is available under the company's profile on SEDAR+.

Certain insiders of the company participated in the offering, acquiring an aggregate of $3.5-million of common shares. Participation by such insiders in the offering was considered a related party transaction pursuant to Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company was exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the insiders' participation in the offering in reliance on sections 5.5(a) and 5.7(1)(a) of MI 61-101 in that the fair market value (as determined under MI 61-101) of the consideration for securities of the company to be issued to related parties does not exceed 25 per cetn of the company's market capitalization (as determined under MI 61-101). A material change report in connection with the participation of insiders in the offering will be filed less than 21 days in advance of the closing of the offering, which the company deemed reasonable in the circumstances so as to be able to avail itself of potential financing opportunities and complete the offering in an expeditious manner.

About Cardinal Energy Ltd.

Cardinal is a Canadian oil and natural gas production company with operations focused on low-decline sustainable oil production in Western Canada. The company's portfolio of conventional and SAGD (steam-assisted gravity drainage) project inventory offers a complementary low-decline, long-life resource base that is ideally suited to sustain the company's commitment to meaningful dividend returns to shareholders.

We seek Safe Harbor.