Mr. Mike Adams reports

NEW ZEALAND ENERGY CORP. PROVIDES UPDATE ON TARIKI GAS STORAGE PROJECT

New Zealand Energy Corp. has provided an update regarding the continuing work associated with the Tariki gas storage project.

NZEC, together with its joint venture partner L&M Energy Ltd., has executed a non-binding memorandum of understanding (MoU) with Genesis Energy Ltd., one of New Zealand's leading energy generators and retailers. The MoU formalizes a framework that commits the parties to collaborate exclusively on a program of technical studies, commercial negotiations and project development milestones required to progress the Tariki gas storage project to a final gas storage services agreement which will then support moving toward a final investment decision and ultimately project completion and commercial operations. The MoU is a critical milestone that positions the Tariki gas storage project to become a foundational asset in New Zealand's evolving energy market.

Malcolm Johns, chief executive officer of Genesis, stated: "Genesis has recently enhanced our relationship with the Tariki gas storage project through the execution of an MoU. This agreement sets out a clear program to close out remaining studies and negotiations towards a gas storage services agreement."

Subsurface and engineering work to confirm the Tariki gas storage project's parameters continues to advance. Dynamic subsurface modelling to define the range of gas storage capacity, cushion-gas requirements, operating pressures, injection/withdrawal rates and long-term storage behaviour is on schedule for delivery in December, 2025. Gas storage facility development concept studies are under way, including surface facilities, compression and operational configuration. New Zealand Energy has commenced recruiting additional personnel to expand its gas storage development capabilities and support execution and delivery of the Tariki gas storage project.

NZEC continues to progress operational readiness requirements at the Tariki-A site. By the end of Q2 2025, velocity-string sizing was completed. Workstreams to plan temporary gas compression for Tariki-5A advanced through Q3 2025, including sourcing and tendering for required equipment and services. Based on current lead times, the Tariki joint venture anticipates the operations will recommence at Tariki-5A in Q1 2026.

These activities support both interim production planning and future integration into the proposed storage services configuration.

"NZEC is encouraged by the strengthening partnership with Genesis and the continued technical advancement at Tariki," said Michael Adams, New Zealand Energy's chief executive officer. "Our gas storage project has the potential to provide significant value to the New Zealand energy system, and today's update represents meaningful progress towards that opportunity."

About New Zealand Energy Corp.

New Zealand Energy is a publicly listed energy company focused on the development of oil, gas and gas storage opportunities in New Zealand. The company holds interests in multiple heritage assets and development stage projects, including the Tariki gas storage project in Taranaki. With a 50-per-cent ownership stake in the Waihapa production station, the company can quickly tie in any near-term production and sell directly to market.

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