Mr. Gil Holzman reports

ECO (ATLANTIC) OIL AND GAS LTD. ANNOUNCES NAMIBIA PORTFOLIO UPDATE

Eco (Atlantic) Oil & Gas Ltd. has provided an update on key developments in its Namibian portfolio aimed at optimizing operations and exploration focus.

Eco has signed deeds of amendments and secured licence extensions across all four of its petroleum exploration licences (PELs) in Namibia. In addition, Eco has farmed out its total 85-per-cent working interest, pending government approval, in PEL 98 (Block 2213, or Sharon block) to an arm's-length wholly Namibian-owned company, Lamda Energy Pty. Ltd.

These strategic developments allow Eco to focus on unlocking the hydrocarbon potential of its highly prospective and deeper water acreage in Namibia while continuing to support local ownership and operational leadership. The company is currently receiving interest to farm down the extended licences and their revised work programs.

Namibia optimization highlights:

• One-year extension granted to the initial exploration period for PELs 97, 98, 99 and 100 now continuing to September, 2026 (the initial extension year);
• Optional first renewal period of two years following the initial extension year (the first renewal period);
• Optional extension of the first renewal period of additional one year, following completion of the initial first renewal (the first renewal extension);
• Optional second renewal period of two additional years, commencing after the completion of the first renewal extension;
• New negotiated schedule and work programs for PELs 97, 99 and 100;
• Farmout of all of Eco's 85-per-cent interest in PEL 98, subject to government approval, to Lamda Energy, a 100-per-cent-Namibian-owned company;
• Eco received environmental clearance certificate for planned seismic surveys across the Namibian portfolio on June 15, 2025;
• Eco is engaged in farm-down and seismic operations discussions with potential new partners.

Farmout of PEL 98 to Lamda Energy

As Eco shifts its geological focus to deeper proven plays in Namibia, the company has approved the farmout of its entire 85-per-cent participating interest in the shallower PEL 98 Block 2213 to locally owned Lamda Energy.

Lamda Energy is a privately owned and operated offshore oil and gas company with an experienced operating team. Lamda Energy will become a wholly Namibian-owned qualified offshore operator upon ministerial approval. This farmout aligns with Eco's long-standing commitment to advancing local participation and partnerships in Namibia's oil and gas sector.

Under the terms of the farmout agreement, Lamda Energy will make an upfront payment to Eco for administrative costs and, on completion, will assume all obligations and liabilities associated to PEL 98. In addition, in the event of a future farmout by Lamda Energy to a third party, Lamda Energy will be required to make certain payments to Eco at a fixed quantum per percentage interest farmed out, up to a maximum of $2-million (U.S.).

Eco will retain a board seat at Lamda Energy to support a comprehensive transition and knowledge transfer, ensuring a smooth and responsible handover. This marks a significant milestone in building local capacity and advancing inclusive energy development.

Portfolio-wide newly negotiated schedules and work programs

The Ministry of Industries, Mines and Energy of the Republic of Namibia has formally approved a 12-month extension to the first renewal exploration period for all four licences, granted under Section 30 (2A) of the Petroleum (Exploration and Production) Act. The revised expiry date for the first renewal exploration period is now September, 2026. In summary: one-year extension granted to the initial exploration period for PELs 97, 98, 99 and 100; optional first renewal period of two years, after extension year; optional extension of the first renewal period of additional one year, after first renewal; and optional second renewal period of an additional two years, after first renewal extension. These extended schedules provide Eco and its partners additional time to pursue enhanced exploration activities and attract new farm-in partners to the licences.

The updated and approved work programs include on PEL 97 3-D seismic reprocessing and an approximately 1,000-square-kilometre 3-D seismic survey and processing on each of PELs 99 and 100. An environmental clearance certificate, issued on June 15, 2025, by the Ministry of Environment, Forestry and Tourism, authorizes Eco to undertake the planned seismic activities across its licences in the deepwater Walvis basin offshore Namibia.

Gil Holzman, president and chief executive officer of Eco (Atlantic), commented: "These developments represent an important step in our tactical vision and an optimization of our Namibian portfolio and work programs. I want to sincerely thank our dedicated team and our key stakeholders within the Ministry of Industries, Mines and Energy, who have worked tirelessly over the past 12 months to ensure a mutually beneficial plan and a smooth transition for the farmout of PEL 98 (Sharon block). Their support has been instrumental in the alignment of our efforts on our deeper-water PELs 97, 99 and 100, which have been the recent focus of industry partners.

"This strategy builds on Eco's long-standing history of pioneering and supporting local involvement and contributions, beginning with the first proposal of Namcor as a 10-per-cent-carried-interest partner in 2011. And, additionally with our new licence issuance in 2021 adding a further 5-per-cent local partner (carried) on each of our blocks, we remain firmly committed to promoting local content and ensuring equitable partnerships for Namibian stakeholders and colleagues. With these licence extensions and updated work programs, we are now well positioned to unlock further value in Namibia. I would also like to thank the Ministry of Mines, Energy and Industries Petroleum Commissioner for her collaborative work and guidance as well as to our Namibia country manager, Tironenn Kauluma, for his ongoing leadership and stakeholder engagement efforts."

About Eco (Atlantic) Oil & Gas Ltd.

Eco (Atlantic) is a TSX Venture Exchange- and Alternative Investment Market-quoted, Atlantic Margin-focused oil and gas exploration company with offshore licence interests in Guyana, Namibia and South Africa. Eco aims to deliver material value for its stakeholders through its role in the energy transition to explore for low-carbon-intensity oil and gas in stable emerging markets close to infrastructure.

Offshore Guyana, in the proven Guyana-Suriname basin, the company operates a 100-per-cent working interest in the 1,354-square-kilometre Orinduik block. In Namibia, the company holds operatorship and an 85-per-cent working interest in three offshore petroleum licences: PELs 97, 99 and 100, representing a combined area of 22,894 square kilometres in the Walvis basin. Offshore South Africa, Eco holds a 5.25-per-cent working interest in Block 3B/4B and a 75-per-cent operated interest in Block 1 in the Orange basin, totalling approximately 37,510 square kilometres.

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