Mr. Garrett Soden reports

SHAMARAN ANNOUNCES AGREEMENTS TO RESTART OIL EXPORTS VIA IRAQ-TURKIYE PIPELINE

Interim agreements have been executed with the Kurdistan regional government, the government of Iraq and several international oil companies, including Shamaran Petroleum Corp. These agreements are expected to enable the restart of international oil exports by pipeline from the Kurdistan region of Iraq within a matter of days.

Garrett Soden, president and chief executive officer of Shamaran, commented: "We welcome the resumption of oil exports from the Kurdistan region and thank our operating partner, HKN Energy, for leading the negotiations. Pipeline exports are critical for the future stability and prosperity of both the Kurdistan region and federal Iraq. We believe these agreements will benefit all Iraqis and allow IOCs to continue investing in the region while receiving the contractual value of the oil produced."

The agreements to resume oil exports from the KRI are based on the Iraqi Budget Law amendment in February, 2025, and Iraq's recognition of the KRI production-sharing contracts. The Budget Law provides for an initial period of approximately three months during which IOCs will be compensated at $16 (U.S.) per barrel for the cost of production and transportation, resulting in similar economics to the current KRI local oil sales, with a reconciliation to full PSC entitlement following a review of the IOC invoices and contractual entitlements by an industry consultant. The Iraqi State Organization for Marketing of Oil will market the KRI crude at the Kirkuk blend official selling price, and IOCs will be paid in arrears from the sale of their allocation at Ceyhan through their nominated trader. The agreements also provide that the IOCs and KRG will continue discussions about recovering outstanding accounts receivable from past oil sales.

Production at the Sarsang block has returned to full capacity nearly one month ahead of schedule. The Atrush block is currently producing approximately 35,000 barrels of oil per day, and the Sarsang block is producing over 30,000 bopd.

About Shamaran Petroleum Corp.

Shamaran is a Canadian independent oil and gas company focused on the Kurdistan region of Iraq. The company indirectly holds a 50-per-cent working interest in the Atrush block and an 18-per-cent working interest in the Sarsang block. The company is listed in Toronto on the TSX Venture Exchange and in Stockholm on Nasdaq First North Growth Market (ticker SNM). Shamaran is part of the Lundin group of companies.

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