Mr. Kevin Johnson reports

LOTUS CREEK EXPLORATION INC. ANNOUNCES 2026 BUDGET AND GUIDANCE

Lotus Creek Exploration Inc. has provided the company's 2026 budget and guidance to shareholders.

2026 approved fiscal budget and guidance

The board of directors of the company has approved a 2026 budget of $42.0-million that is expected to deliver 75-per-cent annual production growth with forecast average production for the fourth quarter of 2026 of 4,000 barrels of oil equivalent per day. The company's drilling program is primarily weighted to the second half of 2026 with expected production to peak in the first quarter of 2027.

The details of the 2026 budget are as follows:

• $33.6-million (80 per cent) focused on drilling 6.0 gross (6.0 net) light oil Belly River wells in Wilson Creek and expanding infrastructure at the 5,000-barrel-of-oil-equivalent-per-day 02-29 oil battery and gathering system;
• $8.4-million (20 per cent) invested in land, seismic, field capital projects, recompletions, other corporate costs and continued reduction in liabilities associated with abandonment and reclamations.

The 2026 budget is forecast to deliver the following results.

The full-year 2026 budget advances the company's strategy of disciplined, profitable per-share growth while maintaining financial resilience in a lower oil price environment. Capital is directed to the company's highest-value projects at Wilson Creek, ensuring every dollar deployed drives meaningful value creation. This strategy also further leverages the benefit of key foundational investments in 2025, including the 3-D seismic program and the commissioning of the 02-29 oil battery in Wilson Creek.

The 2026 budget supports three strategic priorities:

• Production growth: delivers meaningful year-over-year and fourth-quarter-over-fourth-quarter production increases, extending the momentum established in 2025. Development is concentrated in proven areas with strong technical and economic performance;
• Cash flow management: a phased development schedule distributes capital throughout the year and provides flexibility to respond to evolving market conditions; the existing hedge portfolio will be expanded to provide further downside price protection and support stable cash flow;
• Operational efficiency: maximizes the use of existing pads, surface locations and infrastructure while continuing to delineate the asset base; an early January spud secures a top-tier drilling rig and key services, improving execution reliability and cost control.

"As we execute our growth initiatives, we remain focused on balancing expansion with profitability, ensuring our shareholders benefit from both scale and financial strength. At a $60 (U.S.) WTI per barrel price, the 2026 budget delivers sustained organic growth while maintaining a strong balance sheet," said Kevin Johnson, president and chief executive officer.

About Lotus Creek Exploration Inc.

Lotus Creek is a light-oil-weighted Canadian exploration and production company with production in Alberta and Saskatchewan. On Feb. 5, 2025, Lotus Creek, Gear Energy Ltd. and a third party closed the previously announced transformative plan of arrangement, and the company commenced commercial operations on close of the plan of arrangement.

Lotus Creek's key attributes

High-return Belly River light oil play:

• Demonstrated top-quartile play economics;
• Proprietary 3-D seismic confirms 30-plus locations.

Exposure to Cold Lake heavy oil fairway:

• Undeveloped land base with long tenure;
• Multizone potential with 60-plus locations.

Financial discipline and value-driven growth:

• Continued balance sheet strength;
• Capital allocated to top economic opportunities.

October, 2025, represented an important period for the company, reflecting the first full month of production from the company's inaugural two-well Belly River drilling program. In the emerging Belly River light oil play, these wells achieved two of the highest monthly production rates, combining to over 1,700 boe per day (83 per cent crude oil and natural gas liquids) and two of the fastest drill times from spud to rig release, averaging less than nine days. This performance underscores both the high-return nature of the project and the Lotus Creek team's strong execution capabilities.

With these important additions, October, 2025, production increased to 2,923 boe per day (an increase of 119 per cent month over month), consisting of 2,370 boe per day of crude oil and natural gas liquids and 3,316,000 cubic feet per day of natural gas, and monthly adjusted funds flow grew to $2.7-million (an increase of 350 per cent month over month) or $32-million annualized. Two additional Belly River wells were brought on-line Nov. 18, 2025, which have further supported cash flow and production growth.

At Lotus Creek, the company is committed to disciplined and profitable growth that maximizes long-term shareholder value. Its strategy focuses on expanding core operational and financial metrics earnings, cash flow, production, and reserves -- on a per-share basis to ensure sustainable, value-accretive growth. By maintaining operational excellence and financial discipline, it aims to outperform industry peers and deliver superior returns to its shareholders.

We seek Safe Harbor.