Mr. Kevin Johnson reports

LOTUS CREEK EXPLORATION INC. ANNOUNCES WILSON CREEK OPERATIONAL UPDATE AND JULY UPDATE TO SHAREHOLDERS

Lotus Creek Exploration Inc. has provided an operational update on its Wilson Creek light oil asset and continuing 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 reached the battery's design capacity of approximately 5,000 barrels of oil equivalent 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 barrels of oil equivalent per day (72 per cent light oil and natural gas liquids), compared with previously announced 2026 annual average production guidance of 3,800 to 4,200 boe per day and fourth quarter 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 multizone 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.

We seek Safe Harbor.