Mr. Dale Miller reports

PRAIRIE PROVIDENT ANNOUNCES SECOND QUARTER 2025 RESULTS

Prairie Provident Resources Inc. has released its financial and operating results for the second quarter of 2025. The company's interim financial statements for the three and six months ended June 30, 2025, and related management discussion and analysis (MD&A) are available on the company's website and filed on SEDAR+.

Second quarter 2025 financial and operating highlights:

• In late April, 2025, the company brought on production the three 100-per-cent-working-interest Basal Quartz (BQ) wells drilled in Q1 2025.
• Production averaged 2,762 barrels of oil equivalent per day (62 per cent liquids) for Q2 2025, which was 35 per cent, or 717 boe/d, higher than Q2 2024 and 24 per cent, or 541 boe/d, higher than Q1 2025, due to the increased BQ production.
• Q2 2025 operating expenses were $25.37 per boe, a decrease of 35 per cent, or $13.99 per boe, from Q2 2024, principally due to the impact of higher production volumes on fixed operating expenses.
• Q2 2025 operating netback was $4.9-million ($19.45 per boe), a 634-per-cent increase, relative to Q2 2024. The increase was a result of higher production in Q2 2025 and lower operating expenses on a per-barrel-of-oil-equivalent basis, offset by weakened crude oil commodity prices.
• Net loss was $6.5-million in Q2 2025, a $400,000 reduction compared with Q2 2024. The decrease was due to higher operating netback, foreign exchange translation differences, and lower general and administrative expenses, offset by higher impairment expenses, depletion and depreciation, and finance costs.
• In early June, 2025, the company received additional financing of $600,000 through an issuance of additional second-lien notes to its current lender.

Michichi Basal Quartz update

The following table summarizes the initial 90-day production (IP90) rates and key operational details for the three BQ wells drilled during the first quarter of 2025, which were brought on production in April, 2025.

Outlook

Prairie Provident continues to be excited with the emerging BQ/Ellerslie oil play on its Michichi lands. Direct offsetting operational activity remains strong. To date, Prairie Provident has drilled five 100-per-cent-working-interest Basal Quartz wells on its Michichi land base. The Michichi BQ play is a statistical play with variable reservoir and geological rock characteristics. The company's Michichi core area consists of several defined geological channel systems that Prairie Provident is actively pursuing. This supports the need for additional delineation drilling on the company's land base. Prairie Provident has identified approximately 50 potential drilling opportunities targeting medium crude oil on its Michichi lands. Legacy vertical well control, extensive 3-D/2-D seismic data and offset drilling activity are important factors in derisking the Michichi BQ play. The company owns and controls key Michichi infrastructure, which provides a competitive advantage for the future development of this play, and has sizable tax pools, including approximately $330-million of non-capital losses.

About Prairie Provident Resources Inc.

Prairie Provident is a Calgary-based company engaged in the development of oil and natural gas properties in Alberta. The company's strategy is to optimize cash flow from its existing assets to finance low-risk development and maintain stable cash flow while limiting its production decline.

We seek Safe Harbor.