Mr. Garrett Soden reports

SHAMARAN REPORTS THIRD QUARTER 2023 RESULTS

Shamaran Petroleum Corp. has released its financial and operating results and related management's discussion and analysis for the three and nine months ended Sept. 30, 2023.

Garrett Soden, president and chief executive officer of Shamaran, commented: "The Iraq-Turkey pipeline has been closed for more than seven months, and it is still unclear if and when exports will resume. We are actively seeking commercial solutions for crude exports and payments. Due to the challenging situation in Kurdistan and the wider region, Shamaran remains focused on cost control and cash preservation. We are working with our operating partners to increase local oil sales, which include timely payments and resulted in improved cash generation for [third quarter]. We expect higher revenues and cash flow in [fourth quarter] with Sarsang production increasing and Atrush production recently restarted."

Corporate highlights:

• The closure of the Iraq-Turkey pipeline since March 25, 2023, continues to have a material impact on Shamaran's operations and financial results. The company is actively engaged in discussions with the relevant parties to reopen the ITP export route for Kurdistan crude.
• Shamaran generated $13.1-million in operating cash flow during the quarter due to the strength of local sales from Sarsang and pro-active cost-cutting at both the corporate and operating asset levels.
• Sarsang oil production increased in Q3 relative to second quarter but is still below full capacity with sales to local refineries through trucking on an ad hoc weekly basis. Sarsang local sales vary in price and volume from week to week, and are expected to continue until ITP exports resume.
• Atrush remained shut in during Q3 due to a lack of oil storage and trucking facilities. The Atrush operator restarted production on Nov. 7, 2023, with sales to a local refinery by pipeline.

• Q3 2023 Sarsang oil sales went to the Kurdistan local market through trucking at an average netback price of $39.41 per barrel and generated net revenues and cash payments to the company of $12.6-million.
• On July 26, 2023, the company announced that it had requested and received bondholder approval for a waiver to release cash from the 2025 bond debt service retention account. The waiver allowed the company to use restricted cash in the DSRA to pay the bond interest and amortization obligations on July 30, 2023.
• At Sept. 30, 2023, $5.4-million of payables are claimed overdue by the Atrush operator. Shamaran is reviewing Atrush joint venture cash calls as part of the company's efforts to preserve liquidity while encouraging the operator to accelerate local sales.
• At Sept. 30, 2023, the company had cash of $63.6-million (including restricted cash of $20.3-million), receivables from past oil sales of $94.9-million (before any provision for credit risk on overdue invoices) and gross debt of $293.1-million (including the $277.5-million bond and $15.6-million related-party loan). Net debt was $201.1-million (including $28.4-million in Shamaran 2025 bonds held by the company).
• At Nov. 8, 2023, the company had cash of $66.8-million (including restricted cash of $20.3-million), receivables from past oil sales of $94.9-million (before any provision for credit risk on overdue invoices) and gross debt of $293.1-million (including the $277.5-million bond and $15.6-million related-party loan). Net debt was $197.9-million (including $28.4-million in Shamaran 2025 bonds held by the company).

Operational highlights:

• Sarsang average gross production was 27,700 barrels of oil per day during Q3 2023 (compared with 18,000 bopd in second quarter 2023). During Q3, Atrush remained shut in due to a lack of oil storage and trucking facilities. The Atrush operator restarted production on Nov. 7, 2023, with sales to a local refinery through existing pipeline infrastructure.
• The 2023 capital programs associated with further drilling activity and processing capacity expansion at both the Sarsang and Atrush blocks have been reduced and/or deferred completely.
• Due to the reduced activity levels following the ITP closure, Shamaran has suspended guidance for 2023. The company is working with the Kurdistan regional government and its operating partners to address the challenges in Kurdistan.

Subsequent events:

• On Oct. 3, 2023, Turkish officials stated that the ITP was ready to resume operations as of Oct. 4, 2023. The readiness and willingness of the Iraqi side to supply oil into the pipeline remain unclear, and both parties continue discussions. As noted in press statements by the Association of the Petroleum Industry of Kurdistan, international oil companies need a clear payment framework for future production and outstanding accounts receivable before pipeline exports can resume from Kurdistan. The company continues to actively engage with the relevant parties to enable oil exports through the ITP.
• The Atrush operator restarted production on Nov. 7, 2023, with sales to a local refinery through existing pipeline infrastructure.

Corporate update:

• Nick Walker is resigning as a director of the company, effective today, due to his recent appointment as chief executive officer of Var Energi. It would like to thank him for his valuable contribution to Shamaran during his tenure and wish him the best in his new role. The board will not appoint a replacement for him at this time.

Shamaran plans to publish its financial statements for the year ended Dec. 31, 2023, on March 6, 2024. Except as otherwise indicated, all currency amounts in this news release are expressed in U.S. dollars.

About Shamaran Petroleum Corp.

Shamaran is a Canadian independent oil and gas company focused on the Kurdistan region of Iraq. The company holds a 27.6-per-cent working interest in the Atrush block through its wholly owned subsidiary General Exploration Partners Inc. and an 18-per-cent interest (22.5-per-cent paying interest) in the Sarsang block through its wholly owned subsidiary Shamaran Sarsang A/S. The company is listed in Toronto on the TSX Venture Exchange and in Stockholm on the Nasdaq First North Growth Market (ticker SNM). Shamaran is part of the Lundin group of companies.

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