Mr. Brian Paes-Braga reports

NG ENERGY COMMENCES PRODUCTION AND SALES FROM SINU-9 AND PROVIDES CORPORATE UPDATE

Further to NG Energy International Corp.'s news release dated Oct. 11, 2024, the resolution granted by the Colombian Ministry of Mines and Energy has successfully been registered in the market system for total production available for sale of 29.3 MMcf/d (million cubic feet per day) at Sinu-9 (19.5 MMcf/d from the Brujo-1X well and 9.8 MMcf/d from the Magico-1X well) and Promigas SA ESP has successfully calibrated the Jobo connection point. After completing the Brujo-1X well with three different zones based on the three drill stem tests (DSTs) performed in November, 2022, the company has begun producing and selling gas from the lowest zone, and is currently producing 8.3 MMcf/d with tubing head pressure (THP) of 1,750 PSI, a choke of 24/64 inches and a drawdown of just 50 PSI. Initial production is performing with better results than the DST-2 in November, 2022, with an objective of producing more than 10 MMcf/d from this zone as the choke is widened. The company will also begin to open the additional zones and ramp up production, as well as the tie-in of the Magico-1X well, all of which is expected to be completed in the first half of November. The company anticipates producing from Sinu-9 20 to 25 MMcf/d in Nov. 25, 29.3 MMcf/d in December and approximately 29.3 MMcf/d by the end of the year.

Brian Paes-Braga, chief executive officer and chairman, commented: "Today marks a significant milestone in the journey of NG Energy International, where Sinu-9 becomes a producing natural gas field. I want to thank all our shareholders, partners, employees and the communities in which we operate for the support, resilience ambition and patience through phase I development. Today symbolizes the incredible commitment from all of our stakeholders to build Sinu-9 into a long-life, reliable domestic transition energy asset for decades to come. We look forward to quickly turning our attention to phase II as we aim to ramp up production quickly and safely."

Don Sewell, president and a director of NG, commented: "Recent discussion around potential natural gas rationing reveals vulnerabilities present within Colombia's gas supply infrastructure and highlights that the gas deficit is not a distant concern for 2025, but rather a current challenge that the country is actively facing. This initial production from Sinu-9 is coming on line at a pivotal time, and NGE and its partners are fully committed to continuing to add incremental supply of natural gas to the Colombian marketplace."

Corporate update -- increase to line of credit facility

In addition, the company is pleased to announce that it has increased its line of credit facility with Macquarie Group by an incremental $12-million (U.S.) from $13.6-million (U.S.) to $25.6-million (U.S.). The company intends to use the net proceeds of the LC facility to advance Sinu-9 expansion infrastructure and provide guarantees to the Agencia Nacional de Hidrocarburos around Sinu-9 phase 2 development plans. Previously, on March 22, 2024, Macquarie Group provided the company with financing of up to $100-million (U.S.), including initial committed financing of $50-million (U.S.), resulting in a fully financed 2024/2025 phase 1 development plan.

Jorge Fonseca, chief financial officer of NG, commented: "We are very grateful for Macquarie's continued support as a key financial partner as we continue to drive forward with pace in our commitment to add an incremental supply of natural gas to the Colombian market during this time of need. As outlined in the memorandum of understanding with INFRAES, acceleration of the Sinu-9 development plan will add up to an additional 76 MMcf/d of pipeline capacity, which will be constructed in two stages over the course of 15 months."

In connection with the increase to the LC facility, the corporation will issue to Macquarie 5,714,286 common share purchase warrants. Each bonus warrant will entitle Macquarie to purchase one common share of the company at an exercise price equal to 98 cents until Dec. 29, 2028. Completion of the issuance of the bonus warrants to Macquarie remains subject to approval of the TSX Venture Exchange. The bonus warrants and the common shares underlying the bonus warrants will be subject to a statutory four month plus one day hold period from the date of issuance in accordance with applicable securities laws.

About NG Energy International Corp.

NG Energy International is a growth-orientated natural gas exploration and production company focused on delivering long-term shareholder and stakeholder value through the discovery, delineation and development of large-scale natural gas fields in developing countries, supporting energy transition and economic growth.

We seek Safe Harbor.