Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD - BINDING TERM SHEET FOR GAS SALES AGREEMENT TO SUPPLY PILOT GAS TO THE NORTHERN TERRITORY GOVERNMENT

Falcon Oil & Gas Ltd.'s Beetaloo joint venture (BJV) has signed a binding agreement for a long-term gas sales agreement (GSA) to supply the Northern Territory government (buyer) with 14.6 PJ (petajoules) (13.8 BCF (billion cubic feet)) per annum from the proposed Shenandoah South pilot project for an initial term of nine years, with a buyer's option to extend for a further 6.5 years.

Details of the binding agreement are as follows:

• Gas will be delivered to the APA-owned Amadeus gas pipeline (AGP) on a take-or-pay basis at a market-competitive gas price, escalating at 100 per cent of the consumer price index (CPI). The buyer's extension option is at a slightly discounted price.
• The agreement is a binding supply commitment conditional on the BJV entering into a binding gas transportation agreement with APA on the proposed Sturt Plateau pipeline, a binding gas processing agreement for the proposed Sturt Plateau compression facility, reaching a final investment decision (FID) on upstream drilling activity and receiving all necessary approvals to proceed with these projects.
• The BJV is targeting FID on the proposed 40 TJ (terajoule) (38,000 MCF/d (million cubic feet per day)) per day upstream drilling program in mid-2024, subject to securing financing, and key regulatory and stakeholder approvals. First gas flow is planned for H1 2026.
• Falcon Oil & Gas Australia Ltd. holds a 5-per-cent working interest in the 51,200-acre area that will include the wells required to deliver the proposed pilot project volumes.

Philip O'Quigley, chief executive officer of Falcon, commented:

"This is a significant development for Beetaloo joint venture, and represents a major milestone and puts the Beetaloo joint venture on a path where revenue from gas sales will support funding our future development phases, including supply to the East Coast and LNG [liquefied natural gas] gas markets."

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.

Falcon Oil & Gas Australia is an approximately 98-per-cent subsidiary of Falcon Oil & Gas.

About Beetaloo joint venture (EP 76, 98 and 117)

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