Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD. - OPERATIONAL UPDATE - SHENANDOAH SOUTH 1H

Falcon Oil & Gas Ltd.'s Shenandoah South 1H (SS1H) pilot hole in exploration permit 117 has reached a total vertical depth (TVD) of 3,300 metres, intersecting approximately 90 metres of the Amungee member B shale with strong dry gas shows.

Points to note:

• The 90 metres of the Amungee member B shale intersected represents the thickest section seen in the Beetaloo subbasin depocentre to date.
• The Helmerich & Payne superspec FlexRig Flex 3 rig reached TVD in 21.5 days, drilling at 153 metres per day. This is a new record for wells drilled below 3,000 metres in the Beetaloo subbasin.
• Logging of the Amungee member B shale formation indicates potentially higher porosity and gas saturation relative to offset wells.
• Initial evaluation confirms reservoir continuity of the Amungee member B shale over 150 kilometres between Amungee NW-2H and Beetaloo W-1 wells. This includes a target development area of approximately one million acres where the shale depth exceeds 2,700 metres.
• Falcon Oil & Gas Australia Ltd.'s joint venture partner, Tamboran (B2) Pty. Ltd., will commence a 1,000-metre horizontal section within the shale formation ahead of a stimulation program of up to 10 stages over a 500-metre section, which is planned for Q4 2023.

Philip O'Quigley, Falcon's chief executive officer, commented: "Reaching TVD of 3,300 metres on the SS1H well in just 21.5 days is a great first step in the current year work program. The preliminary results to date are all very promising as we commence the horizontal section before moving to the stimulation program in Q4 2023. We will continue to update the market on progress made."

This announcement has been reviewed by Dr. Gabor Bada, Falcon Oil & Gas's head of technical operations. Dr. Bada obtained his geology degree at the Eotvos L. University in Budapest, Hungary, and his PhD at the Vrije Universiteit Amsterdam, the Netherlands. He is a member of the American Association of Petroleum Geologists.

About Falcon Oil & Gas Ltd.

Falcon Oil & Gas is an international oil and gas company engaged in the exploration and development of unconventional oil and gas assets, with the current portfolio focused in Australia, South Africa and Hungary. Falcon Oil & Gas is incorporated in British Columbia, Canada, and headquartered in Dublin, Ireland, with a technical team based in Budapest, Hungary.

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