Mr. Imad Mohsen reports

PAREX RESOURCES ANNOUNCES LLANOS FOOTHILLS STRATEGIC ALLIANCE, OPERATIONAL STRENGTH, AND TIMING OF 2026 GUIDANCE

Parex Resources Inc. and its strategic partner, Ecopetrol SA, have provided an update on their Llanos Foothills exploration program, where a full strategic alliance has effectively been achieved. Additionally, the company provides an update on its corporate production and announces plans to release its 2026 guidance on Jan. 19, 2026.

Key highlights:

• Finalized Niscota agreement, strengthening Llanos Foothills position and securing the Florena Huron exploration prospect;
• Advanced the Farallones exploration prospect in the Llanos Foothills, with regulatory approvals secured and initial work under way;
• Continued to sustain strong production levels in November, 2025, with quarter-to-date Q4 2025 average production currently 49,700 barrels of oil equivalent per day.

"Parex has long maintained a Colombia-focused gas strategy, and today's announcement underscores our commitment to expanding meaningful gas development in the country. With effectively all Foothills agreements and regulatory approvals complete, Parex and Ecopetrol have laid the foundation for a 50/50 strategic partnership across the Foothills basin -- stretching from Gibraltar in the north to Farallones in the south -- with Parex as operator," commented Imad Mohsen, president and chief executive officer.

"Through this partnership, we will leverage our shared Colombian expertise, apply modern technology and attract additional foreign investment for years to come, with the collective goal of finding resources and delivering new volumes of natural gas to the domestic market. After more than three years of public-private collaboration, I am excited to see the final piece of the puzzle come together and confident that our joint efforts will greatly benefit Colombia and all our stakeholders.

"Additionally, I am pleased to share that Parex continues to see strong operational performance across our portfolio. Our fourth-quarter execution is on track, and I am looking forward to 2026 with established exploration and production momentum."

Llanos Foothills -- high-impact exploration

In line with continuing plans to explore the Llanos Foothills trend for new sources of Colombian resources, Parex and Ecopetrol have further reinforced their joint position in a basin recognized for its world-class exploration potential, collaborating to strengthen Colombia's future energy position and sustainability.

Niscota block:

• Ecopetrol has confirmed that it has received approval from the regulator for the extension of the Piedemonte Convenio into a portion of the Niscota block, with all necessary regulatory approvals to drill the Florena Huron exploration well.
• Per previously announced agreements, Parex has acquired a 50-per-cent participation share on the future production of the extended area of the Piedemonte Convenio, in exchange for agreeing to drill, on a 100-per-cent-capital basis, the Florena Huron exploration well, which will be drilled to the north of the producing Florena field.
• In its 2026 program, Parex plans to commence initial and civil works to spud the Florena Huron exploration well.

Farallones block:

• The Farallones exploration prospect is progressing, with all regulatory approvals received and initial works under way.
• As previously announced, Parex agreed with Ecopetrol to drill the Farallones exploration well on a 100-per-cent-capital basis.
• In its 2026 program, Parex plans to commence civil works to spud the Farallones exploration well.

Production update

Average production was 49,300 boepd in October, 2025, and was sustained in November, 2025, at 50,300 boepd. Production was driven primarily by strong new wells at LLA-32 and LLA-74, which came on line with high initial rates and are now stabilizing. With minimal expected production adds over the remainder of the year and year-to-date 2025 average production of 44,550 boepd, Parex expects to achieve approximately the midpoint of its fiscal year 2025 annual average production guidance of 45,000 boepd (range: 43,000 to 47,000 boepd).

2026 guidance

Parex plans to release its 2026 guidance after markets close on Jan. 19, 2026.

About Parex Resources Inc.

Parex is one of the largest independent oil and gas companies in Colombia, focusing on sustainable, conventional production. The company's corporate headquarters are in Calgary, Canada, with an operating office in Bogota, Colombia. Parex shares trade on the Toronto Stock Exchange under the symbol PXT.

We seek Safe Harbor.