Calgary, Alberta--(Newsfile Corp. - September 2, 2026) - Lotus Creek Exploration Inc. (TSXV: LTC) ("Lotus Creek" or the "Company") is pleased to provide an operational update on its Wilson Creek light oil asset and ongoing Belly River development program.

Wilson Creek Development Update

In September 2025, Lotus Creek commissioned its operated 02-29 Wilson Creek battery, establishing the infrastructure foundation for the first phase of development of the asset. Since commissioning the battery, the Company has progressively brought 10.0 gross (9.9 net) Belly River light oil wells on production.

Production from these first 10 wells has now reached the battery's design capacity of approximately 5,000 boe per day, effectively filling the facility approximately 12 months ahead of the Company's original development schedule. An additional 2.0 gross (2.0 net) wells are in the final stages of equipping and are expected to be brought on production in September. Production from the Company's wells is being optimized within available infrastructure constraints, which may result in reduced production rates from certain older wells.

Recent Well Performance

Early production results from the Company's three most recently commissioned wells have been encouraging, demonstrating strong initial productivity and reservoir quality. The wells remain early in their production histories, and the Company intends to provide additional details once more representative production profiles have been established.

Corporate Production and Guidance

The Company's corporate production as of the last week of August 2026 exceeded approximately 5,500 boe per day (72 per cent light oil and NGLs), compared with previously announced 2026 annual average production guidance of 3,800 to 4,200 boe per day and Q4 2026 average production guidance of 4,800 to 5,200 boe per day.

Recent production performance and drilling results have increased the Company's confidence in its 2026 production guidance and further validated the underlying Wilson Creek development model. Given the early production history of the recently commissioned wells the Company believes it is premature to revise guidance at this time.

The Next Phase at Wilson Creek

The first phase of development was designed to evaluate the multi-zone light oil potential of the Belly River at Wilson Creek and assess the repeatability, economics and capital efficiency of the development.

The Company's drilling to date has tested four of six identified Belly River target zones, with results increasing confidence in the broader development model and supporting an inventory of more than 100 identified drilling opportunities at Wilson Creek.

With existing infrastructure capacity substantially utilized, additional infrastructure will be required to accommodate further production growth. The Company is therefore preparing for the next phase of development at Wilson Creek, which will include additional infrastructure capacity and the acquisition of additional seismic data to further delineate its drilling inventory.

Monthly Shareholder Updates

The Company is committed to providing shareholders with regular monthly updates on its financial and operational progress. The timing of these updates may vary as the Company prioritizes the completeness and accuracy of the information provided.

The Company's July Operational Update to Shareholders has been posted to the Company's website and can be accessed at the following link:

July Operational Update

Forward-Looking Information and Statements

This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "strategy" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this press release contains forward-looking information and statements pertaining to the following: the expectations regarding 2.0 additional wells being brought on production and the anticipated timing thereof; that infrastructure constraints may result in reduced production from certain older wells; the Company's intention to provide additional details regarding the three most recently commissioned wells once production profiles have been established; the Company's beliefs regarding updating current guidance; the drilling opportunities at Wilson Creek; that additional infrastructure will be required to accommodate further production growth; and the Company's plans regarding the next phase of development at Wilson Creek.

The forward-looking information and statements contained in this press release reflect several material factors and expectations and assumptions of Lotus Creek including, without limitation: that Lotus Creek will continue to conduct its operations in a manner consistent with past operations; the duration and impact of tariffs (or other retaliatory trade measures) imposed by Canada or the U.S. (or other countries) on exports and/or imports into and out of such countries; that there are no future amendments to2026 United States – Mexico – Canada Agreement ("USMCA") (and no countries withdraw from USMCA) that significantly impact the ability or costs of Canadian oil and gas companies to export their products into the United States or have other negative to the Canadian economy and/or the Company's business; the ability of the Company to receive all necessary regulatory approvals without significant adverse conditions; the general continuance of current industry conditions; the continuance of existing (and in certain circumstances, the implementation of proposed) tax, royalty and regulatory regimes; that well results will meet expectations; the accuracy of the estimates of Lotus Creek's reserves and resource volumes; certain commodity price and other cost assumptions; and the continued availability of adequate debt and equity financing and funds from operations to fund its planned expenditures. Lotus Creek believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable, but no assurance can be given that these factors, expectations and assumptions will prove to be correct.

To the extent that any forward-looking information contained herein may be considered a financial outlook, such information has been included to provide readers with an understanding of management's assumptions used for budgeting and developing future plans and readers are cautioned that the information may not be appropriate for other purposes. The forward-looking information and statements included in this press release are not guarantees of future performance and should not be unduly relied upon. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements including, without limitation: the risks and impacts of tariffs (or other retaliatory trade measures) imposed by Canada or the U.S. (or other countries) on exports and/or imports into and out of such countries; the failure to receive any regulatory approvals required for the Company's operations; the impacts of the ongoing United States, Israel and Iran war (and other Middle-East conflicts (including the recent attacks by the U.S. and Israel on Iran and Iranian retaliation), Russia-Ukraine war (and any associated sanctions) and United States interventions in Venezuela on the global economy and on the oil and gas industry in Canada and elsewhere; the impacts of any potential amendments to or withdrawals from USMCA on the ability of Canadian oil and gas companies to export their products into the United States, the Canadian economy and/or the Company's business; the impacts of inflation and supply chain issues; pandemics, political events, natural disasters and terrorism; changes in commodity prices; changes in the demand for or supply of Lotus Creek's products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Lotus Creek or by third party operators of Lotus Creek's properties, increased debt levels or debt service requirements; inability to obtain debt or equity financing as necessary to fund operations, capital expenditures and any potential acquisitions; any ability for Lotus Creek to repay any of its indebtedness when due; inaccurate estimation of Lotus Creek's oil and gas reserve and resource volumes; limited, unfavorable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time to time in Lotus Creek's public documents including risk factors set out in the Company's annual information form for the year ended December 31, 2025, which is available on SEDAR+ at www.sedarplus.ca.

This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Lotus Creek's prospective results of operations including, without limitation, forecast annual and fourth quarter average production, which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on FOFI. Lotus Creek's actual results, performance or achievement could differ materially from those expressed in, or implied by, these FOFI, or if any of them do so, what benefits Lotus Creek will derive therefrom. Lotus Creek has included the FOFI in order to provide readers with a more complete perspective on Lotus Creek's future operations and such information may not be appropriate for other purposes.

The forward-looking information and statements and FOFI contained in this press release speak only as of the date of this press release, and Lotus Creek does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.

Production Breakdown by Product Type
Disclosure of production on a per boe basis in this press release consists of the constituent product types as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and their respective quantities disclosed in the table below:

Barrels of Oil Equivalent
Disclosure provided herein in respect of BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of six Mcf to one Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Additionally, given that the value ratio based on the current price of crude oil, as compared to natural gas, is significantly different from the energy equivalency of 6:1; utilizing a conversion ratio of 6:1 may be misleading as an indication of value.

Initial Production Rates
References in this press release to initial production ("IP") rates, other short-term production rates or initial performance measures relating to new wells are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Accordingly, the Company cautions that such short-term rates should be considered to be preliminary.

Drilling Locations
This press release discloses drilling opportunities associated with Lotus Creek's Wilson Creek assets. Of the 100 drilling opportunities referenced herein, 8 gross (6.8 net) proved undeveloped locations and 13 gross (11.8 net) probable undeveloped locations were booked in the Lotus Creek Reserves Report. The remaining locations were unbooked as at December 31, 2025. Unbooked locations are internal estimates based on Lotus Creek's prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have attributed reserves or resources and have been identified by management of Lotus Creek as an estimation of Lotus Creek's multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that Lotus Creek will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which Lotus Creek actually drills wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by Lotus Creek previously drilling existing wells in relative close proximity to such unbooked drilling locations, other unbooked drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production.

Oil & Gas Matters
References to heavy oil, light and medium oil, natural gas liquids and natural gas in this press release refer to the heavy crude oil, light crude oil and medium crude oil, natural gas liquids and conventional natural gas, respectively, product types as defined in NI 51-101.

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