Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD. - BEETALOO DRILLING AND PLANNED STIMULATION UPDATE

Falcon Oil & Gas Ltd. has provided an update on current drilling and future planned stimulation in the Beetaloo subbasin. Falcon Oil & Gas Australia Ltd.'s joint venture partner, Tamboran (B2) Pty. Ltd., continues the drilling campaign.

Drilling campaign

The first two wells of the 2025 drilling campaign are drilled and cased, each with a 3,000-metre horizontal section (10,000 feet). The rig will now rig up on the third and final well to drill the production hole and horizontal section.

The campaign is the first multiwell drilling program implementing batch drilling in the Beetaloo subbasin and is currently in line with timeline and budget.

Up to a 60-stage stimulation across the full 3,000-metre horizontal section of one of the 2025 drilled wells is planned and is expected to be flow tested for 30 days in early 2026 prior to being shut in ahead of the commencement of gas sales, which are expected to commence in mid-2026.

In Q2 2026, following the wet season, the remaining three wells (including the second well of the 2024 drilling campaign) are expected to be stimulated ahead of the commencement of gas sales.

All wells included in the Shenandoah South pilot project are expected to deliver the contracted 40-million-cubic-foot-per-day volume required under the gas sales agreement (GSA) with the Northern Territory government, subject to weather conditions and final stakeholder approvals.

As previously announced, Falcon Australia opted to reduce its participating interest in the three wells drilled in 2025 to 0 per cent, with no cost exposure.

Other recent highlights

The BJV partners agreed terms with native title holders to avoid flaring and received consent to sell appraisal gas from the proposed pilot project over a three-year period. Subsequently, the Northern Territory government approved the sale of appraisal gas under the beneficial use of gas (BUG) legislation.

The construction of the $140-million (Australian) Sturt Plateau compression facility (SPCF) commenced this month, with earthworks and piling completed. Falcon has no cost exposure in the construction of the SPCF.

Work also commenced this month on the Northern Territory's first-ever Beetaloo pipeline, with APA Group investing $70-million (Australian) to deliver the 37-kilometre Sturt Plateau pipeline.

Philip O'Quigley, chief executive officer of Falcon, commented: "It's great to report our operating partner, Tamboran Resources, is executing the 2025 drilling campaign to plan, with the drilling of two wells completed to target depth and the third well advancing towards completion. We look forward to providing further updates over what will be an extremely busy next few months."

This announcement has been reviewed by Dr. Gabor Bada, Falcon Oil & Gas's technical adviser. 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 AAPG (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. Falcon Oil & Gas is incorporated in British Columbia, Canada, and headquartered in Dublin, Ireland.

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

About Tamboran (B2) Pty. Ltd.

Tamboran (B1) Pty. Ltd. is the 100-per-cent holder of Tamboran B2, with Tamboran B1 being a 50/50 joint venture between Tamboran Resources and Daly Waters Energy.

Tamboran Resources is a natural gas company listed on the New York Stock Exchange (symbol: TBN) and Australian Securities Exchange (symbol: TBN). Tamboran is focused on playing a constructive role in the global energy transition toward a lower-carbon future by developing the significant low-carbon-dioxide gas resource within the Beetaloo basin through cutting-edge drilling and completion design technology as well as management's experience in successfully commercializing unconventional shale in North America.

Bryan Sheffield of Daly Waters Energy LP is a highly successful investor and has made significant returns in the United States unconventional energy sector in the past. He was founder of Parsley Energy Inc., an independent unconventional oil and gas producer in the Permian basin in Texas, and previously served as its chairman and chief executive officer. Parsley Energy was acquired for over $7-billion (U.S.) by Pioneer Natural Resources Company.

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