An anonymous director reports

FRONTERA ENERGY & CGX ENERGY PROVIDE UPDATE ON CORENTYNE BLOCK LICENSE

Frontera Energy Corp. and CGX Energy Inc. today provided an update on the Corentyne block licence.

As previously disclosed on May 9, 2025, Frontera and its subsidiaries, Frontera Petroleum International Holding B.V. and Frontera Energy Guyana Holding Ltd. (together, the investors), submitted a notice of intent to the government of Guyana on March 26, 2025. The notice alleges breaches of the United Kingdom-Guyana Bilateral Investment Treaty and the Guyana Investment Act by the government of Guyana, and initiated a three-month consultation and negotiation period aimed at resolving the dispute amicably.

On July 23, 2025, the government of Guyana, through its legal counsel, responded to the investors, rejecting their claims regarding the Corentyne block licence. The government of Guyana reaffirmed its view that the joint venture's interest expired on June 28, 2024, but noted that it may consider a final meeting with the investors, on a without prejudice basis, in October, 2025, and the joint venture would be informed as to whether such a meeting will occur in September, 2025.

Frontera Energy Guyana Corp. and CGX Resources Inc. remain firmly of the view that its interests in, and the licence for, the Corentyne block remain in place and in good standing and that the petroleum agreement has not been terminated. Although the three-month consultation and negotiation period derived from the notice of intent has now expired, the joint venture and its stakeholders continue to invite the government of Guyana to amicably resolve the issues affecting the joint venture's investments in the Corentyne block. Should the parties not reach a mutually agreeable solution, the joint venture and its stakeholders are prepared to assert their legal rights.

The joint venture holds a 100-per-cent working interest in the Corentyne block, located offshore Guyana. Frontera Guyana and CGX Resources have agreed that their respective participating interests are 72.52 per cent and 27.48 per cent, which includes a 4.52-per-cent interest which CGX Resources agreed to assign to Frontera Guyana in 2023. The assignment of this 4.52-per-cent participating interest remains subject to the approval of the government of Guyana, but is believed to be enforceable between Frontera Guyana and CGX Resources.

About Frontera Energy Corp.

Frontera Energy is a Canadian public company involved in the exploration, development, production, transportation, storage, and sale of oil and natural gas in South America, including strategic investments in both upstream and mid-stream facilities. The company has a diversified portfolio of assets which consists of interests in 22 exploration and production blocks in Colombia, Ecuador and Guyana, and in pipeline and port facilities in Colombia. Frontera's common shares are listed for trading in the Toronto Stock Exchange under the ticker symbol FEC. The company is committed to conducting business safely and in a socially and environmentally responsible manner.

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