Mr. Jim Hill reports

SALE OF MCF ENERGY ASSETS IN CZECHIA

MCF Energy Ltd. has sold all of the company's assets in the Czech Republic to Third Source Energy (TSE).

This transaction includes 100 per cent of MCF Energy's Czech assets comprising the company's shareholding in Orionos Energy s.r.o., its subsidiary Lomenska Tezebni s.r.o., and all associated assets, licenses and inventory.

The total consideration for the transaction including a contingent royalty is $6,478,000, comprising a $1-million cash payment on completion, and a 10-per-cent gross overriding royalty (GORR) on the portion of realized gas revenue using the Dutch title transfer facility price in excess of $13.50 (U.S.) per million British thermal units, applicable to future production from newly drilled wells, or deepened existing wells, on the licences currently held by Orionos and Lomenska. The GORR is capped at $4-million (U.S.) ($5,478,000 (Canadian)).

MCF Energy has a put option for two years to sell the GORR to TSE for $750,000. TSE has a call option for two years to terminate the GORR by payment to the company of $1.5-million.

The transaction between the company and TSE was completed on July 25, 2025, which also terminated the management services agreement between the company and TSE effective June 1, 2025.

"The sale of our Czech assets will permit the company to focus its investments and activities on our projects in Germany, including in the Lech area, where the Kinsau-1A re-entry well is expected to commence drilling in the coming few weeks," said James Hill, chief executive officer of MCF Energy Ltd.

About MCF Energy Ltd.

Headquartered in Vancouver, MCF Energy was established in 2022 by leading energy executives to strengthen Europe's energy security through responsible exploration and development of natural gas resources within the region. The company has secured interests in several significant natural gas exploration projects in Austria and Germany. MCF Energy is also evaluating additional opportunities throughout Europe. The company's leaders have extensive experience in the European energy sector and are working to develop a cleaner, cheaper and more secure natural gas industry as a transition to renewable energy sources.

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