The Toronto Stock Exchange reports that shareholders of Questerre Energy Corp. approved a special resolution to implement a corporate reorganization to spin out the company's Quebec assets. As a result:

• The company's existing shares (the old shares) will be exchanged for new shares and Series 2 preferred shares;
• The old shares will be cancelled.

According to the TSX, shareholders of record at 4:30 p.m. Toronto time on Jan. 22, 2026, will receive one new share and one preferred share for every old share held. The payable date is Jan. 27, 2026, and the ex distribution date is Jan. 22, 2026.

The TSX notes that the old shares and the new shares possess substantively the same rights and obligations, except that the new shares will have no entitlement to the economic benefits of the company's Quebec assets. The preferred shares are entitled to the economic benefits of the company's Quebec assets and will track the outcome of those assets under the scenarios below:

• A cash settlement related to the legal action to protect shareholder rights for the Quebec assets;
• Or a settlement that allows the Quebec assets to be developed.

There will be no change to the Cusip number or share certificates of the shares, because the new shares are deemed to replace the old shares. The preferred shares will not be listed or posted for trading on any stock exchange.

For more information, see the company's news releases dated Dec. 18, 2025, Jan. 15, 2026, and Jan. 20, 2026, and its management information circular dated Dec. 12, 2025.