Mr. Mike Kruchten reports

PAREX RESOURCES ANNOUNCES PRIVATE OFFERING OF US$500 MILLION SENIOR NOTES

Parex Resources Inc. has agreed to issue $500-million (U.S.) aggregate principal amount of senior unsecured notes due 2031 in a private placement offering.

The notes were priced at par, and will bear interest at a rate of 8.50 per cent per annum and mature on May 11, 2031.

The closing of the offering is subject to customary closing conditions and is expected to close on May 11, 2026.

The net proceeds of the offering, after payment of the initial purchasers' fees and estimated offering expenses, will be deposited into an escrow account pending satisfaction of certain escrow release conditions, including the consummation of the previously announced acquisition of Frontera Energy Corp.'s exploration and production assets in Colombia in all material respects in accordance with the arrangement agreement governing the Frontera transaction. Upon satisfaction of the escrow release conditions, the net proceeds will be released from the escrow account, and Parex intends to use such net proceeds to finance the cash portion of the consideration for the Frontera transaction and to pay fees and expenses in connection with the Frontera transaction and the offering. Any net proceeds not used for such purposes will be used for general corporate purposes. The Frontera transaction is expected to close in second quarter 2026, subject to the satisfaction of customary closing conditions.

The notes are being offered through a syndicate of initial purchasers with Deutsche Bank Securities, Itau BBA, Santander and Scotiabank as global co-ordinators and joint bookrunners, alongside BMO Capital Markets as passive bookrunner, and BBVA and Bladex as co-managers.

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 is in Calgary, Canada, with an operating office in Bogota, Colombia. Parex shares trade on the Toronto Stock Exchange under the symbol PXT.

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