Mr. Lyle Whitmarsh reports

STAMPEDE DRILLING ANNOUNCES SALE OF EQUIPMENT

Stampede Drilling Inc. has successfully completed the sale of certain drilling components (the equipment) from its A/C triple drilling rig previously acquired by Stampede in August, 2022, to a private company, as initially announced on May 5, 2025.

The total purchase price was approximately $5.29-million, which included $5-million in cash and the transfer of certain drilling equipment of the purchaser to Stampede, valued at $290,000. Stampede has retained nearly half of the key components from its A/C Triple, which are expected to be sold or integrated into the existing fleet.

Stampede's August, 2022, acquisition was comprised of one A/C triple, five tele-doubles and other related assets. This sale of the equipment represents approximately 25 per cent of the total value of the August, 2022, acquisition total purchase price.

The proceeds from the sale will be allocated to reduce the existing operating line, enabling the company to pursue future strategic initiatives based on market conditions, such as potentially renewing its normal course issuer bid, funding capital expenditures to enhance rig marketability and growth opportunities as market conditions improve.

Lyle Whitmarsh, president and chief executive officer of Stampede, commented: "The completion of this transaction marks a significant milestone for Stampede, strengthening our debt position and enhancing our financial flexibility. We are pleased to have recaptured 25 per cent of the total purchase price of our August, 2022, acquisition, while retaining the majority of the assets. Since that purchase, market conditions have shifted notably, with declining oil prices, operator consolidation and reduced customer interest in committed long-term contracts for the A/C Triple. The A/C Triple would have required substantial capital to improve its marketability, but in the current environment, we chose to prioritize our balance sheet strength and flexibility, positioning ourselves for future market recovery."

The transaction was completed after satisfying all customary closing conditions outlined in the purchase agreement, including representations, warranties, covenants and the purchaser's successful completion of debt financing.

Stampede remains committed to efficient operational management and continues to evaluate strategic opportunities to optimize its asset portfolio and support long-term growth.

About Stampede Drilling Inc.

Stampede Drilling is a Calgary-based oil and gas service company specializing in drilling operations and equipment solutions within Western Canada's energy sector. The company is dedicated to providing safe, efficient and innovative drilling services to meet the evolving needs of its clients.

We seek Safe Harbor.