Mr. Brian Williamson reports

JERICHO ENERGY VENTURES STRATEGICALLY TERMINATES SMARTKEM LOI TO ADVANCE INDEPENDENT DATA CENTER ENERGY INFRASTRUCTURE PLATFORM

Jericho Energy Ventures Inc. has mutually agreed with SmartKem Inc. to terminate the previously announced non-binding letter of intent for a proposed all-stock business combination. There were no penalties or disputes arising from the termination.

The decision reflects Jericho's continued focus on developing a resilient and scalable energy foundation purpose-built to support its planned artificial intelligence data centre campus in Noble county, Oklahoma, and its commitment to prioritizing capital allocation and management resources toward infrastructure solutions that directly address long-term customer requirements.

Jericho's data centre campus has been assembled to meet what the company believes are the core gating requirements for next-generation data centre development, including access to two independent 345-kilovolt transmission lines, multiple natural gas supply sources -- both internal and external -- and on-site energy flexibility designed to support high-availability, mission-critical operations.

Recent extreme weather events further underscored the importance of this strategy. During the most recent cold weather system, widespread curtailments and force majeure events across the region highlighted the value of diversified gas supply, transmission access and on-site energy resilience -- capabilities that Jericho believes meaningfully differentiate its platform.

In addition, Jericho continues to advance plans to utilize geological subsurface storage as part of its broader energy strategy. The company believes this capability provides an important layer of protection against short-term supply disruptions and demand spikes, supporting uninterrupted operations during precisely the types of extreme weather scenarios recently experienced.

"Jericho remains aligned around a single objective: delivering a dependable, scalable and cost-effective energy solution for data centre customers," said Brian Williamson, chief executive officer of Jericho Energy Ventures. "This decision allows us to remain focused on infrastructure assets that directly strengthen that foundation and enhance the long-term value of our site."

Col. (retired) Mark Schonberg, a 30-year U.S. Army veteran, seasoned infrastructure leader, co-founder of M2 Development Solutions LLC, which announced a strategic partnership with Jericho in July, 2025, commented: "We partnered with Jericho because we see where the data centre market is headed, and their Oklahoma campus brings together the critical components required to succeed in that environment. Having led, built and operated data centres around the world for the United States Army, I recognize the tremendous strategic value embedded in Jericho's site and infrastructure-focused approach."

Jericho continues to evaluate potential partnerships and technologies that complement its core infrastructure strategy, and looks forward to providing further updates as development progresses.

About Jericho Energy Ventures Inc.

Jericho Energy Ventures is uniquely positioned at the nexus of energy and artificial intelligence infrastructure. Leveraging its long-producing oil and gas joint venture assets and robust Oklahoma infrastructure, it is deploying scalable, on-site power solutions to build cutting-edge build-to-suit AI data centres. With direct access to abundant, low-cost natural gas, it delivers efficient, high performance energy solutions -- reducing waste, maximizing output and unlocking long-term value in the rapidly converging AI and energy markets.

At Jericho, its mission is clear: to innovate relentlessly, optimize energy resources and power tomorrow's breakthroughs, one bold step at a time.

We seek Safe Harbor.