Mr. David Wilson reports

KELT PROVIDES UPDATE ON START-UP OF THIRD-PARTY GAS PLANT AT WEMBLEY

Kelt Exploration Ltd. is providing an update on start-up expectations for the newly constructed Albright gas plant near the company's lands at Wembley/Pipestone, Alta. Albright is owned and operated by a third party mid-stream company, CSV Midstream Solutions Corp. CSV is an Alberta-based company headquartered in Calgary with assets located in the Grande Prairie and Grande Cache areas of Northern Alberta.

CSV had originally planned to bring Albright on stream in the fourth quarter of 2024. After certain issues during construction including logistic related delays, CSV commenced commissioning (flaring, testing and safety) operations in June, 2025, with expectations of full-scale operations to commence in July, 2025. CSV has informed Kelt that the upstream portion of the gas plant is fully commissioned and ready for start-up. However, testing of the sulphur recovery plant required to process sour gas has had several starts and stops. A major piece of equipment (four-way valve) has not performed its intended function during the test, even though it had initially worked. CSV is currently conducting a root cause analysis (RCA) to identify reasons why the failure occurred. As a result, CSV is no longer able to provide the company with an estimated start date for Albright.

Kelt has a significant amount of production (oil, NGLs (natural gas liquids) and gas) currently shut-in as it awaits start-up of Albright. The company has contracted for 50 MMcf (million cubic feet) per day of the plant's 150 MMcf per day maximum gas processing capacity. For every week that the start-up of the plant is delayed, Kelt's daily average production for 2025 will be reduced by approximately 175 BOE (barrels of oil equivalent) per day. The lower end of the company's forecasted average daily production for 2025 is currently 42,000 BOE per day. Kelt expects CSV to provide the company with results from its RCA in early September, at which time Kelt will determine if there is a need to reduce its current 2025 production guidance.

During the seven months ended July 31, 2025, Kelt's average production in its Wembley/Pipestone division was approximately 14,300 BOE per day (55 per cent oil and NGLs and 45 per cent gas). With the start-up of the Albright plant, the company expects to increase its production at Wembley/Pipestone to approximately 23,000 to 24,000 BOE per day.

We seek Safe Harbor.