Mr. Michael Binnion reports

GOVERNMENT OF QUEBEC APPROVES CARBON STORAGE PILOT APPLICATION

The Ministry of Economy, Innovation and Energy of Quebec (MEIE) has approved Questerre Energy Corp.'s application for a pilot project for carbon storage in the province of Quebec. The approval was published in the Official Gazette of Quebec on Aug. 19, 2026.

Leveraging the company's extensive geotechnical expertise, including proprietary seismic data, the proposed pilot will evaluate subsurface formations for long-term carbon dioxide storage potential. It provides, for among other things, the drilling of injection and observation wells and includes the use of one of Questerre's existing wells. The pilot project application has been authorized for a term of five years and may be extended by two additional years.

Michael Binnion, president and chief executive officer of Questerre, commented: "The approval of our pilot application is the first step towards demonstrating Quebec's carbon storage potential. We are optimistic that the combination of carbon storage to reduce emissions and local gas provides a made-in-Quebec solution to its goals of reducing greenhouse gas emissions and strengthening its energy security."

He added: "Much like natural gas, the government of Quebec's integrated energy resource management plan released last month notes that long-term carbon storage is a strategic imperative to decarbonize hard-to-abate sectors and achieve the province's emission reduction targets. Our pilot is situated less than 10 kilometres away from the Becancour industrial park and proximate to other large emitters in the province."

He further added: "Our next steps are to work with the provincial and federal government on funding this pilot project. We are also working with the government of Quebec on validating our pre-existing rights to explore for carbon storage that we held prior to the enactment of Bill 21." Bill 21, an act mainly to end petroleum exploration and production and the public financing of those activities, was enacted in April, 2022.

The company also reported it has received a notice from MEIE regarding the contested regulatory requirements under Bill 21 to decommission its 12 suspended wells in the province within 36 months of July 30, 2026. Under Bill 17, an act to amend the act respecting natural gas storage and natural gas and oil pipelines in order to authorize the implementation of a pilot project relating to the exploration for underground reservoirs or certain fluids, or their operation or exploitation, these existing wells can be utilized in carbon storage pilots. The company will be reviewing with the government of Quebec the issue of decommissioning wells in the context of the pilot and other relevant issues. The company further notes that, under Bill 21, the government will finance up to 75 per cent of qualified expenditures.

Questerre is an energy technology and innovation company focused on responsibly developing oil and gas resources. The company holds a significant natural gas discovery in the Quebec Utica shale, widely recognized as one of the most important undeveloped natural gas resources in Eastern Canada. The company believes society can successfully transition its energy portfolio. With new clean technologies and innovation to responsibly produce and use energy, society can sustain both human progress and the natural environment.

Questerre is a believer that the future success of the energy industry depends on a balance of economics, environment and society. The company is committed to being transparent and is respectful that the public must be part of making the important choices for the energy future.

We seek Safe Harbor.