Mr. Steve Glanville reports

STEP ENERGY SERVICES LTD. ANNOUNCES APPROVAL OF ARRANGEMENT BY SHAREHOLDERS

At the special meeting of Step Energy Services Ltd. shareholders held today, shareholders approved an arrangement involving ARC Energy Fund 8 Canadian LP, ARC Energy Fund 8 United States LP, ARC Energy Fund 8 International LP and ARC Capital 8 LP (collectively, ARC Energy Fund 8), 2659160 Alberta Ltd. (the purchaser and, together with ARC Energy Fund 8, the purchaser parties) and Step pursuant to a court-approved plan of arrangement under Section 193 of the Business Corporations Act (Alberta) whereby the purchaser parties will acquire all of the issued and outstanding common shares of Step, other than those shares already owned, controlled or directed, directly or indirectly, by ARC Energy Fund 8, ARC Energy Fund 6 Canadian LP, ARC Energy Fund 6 United States LP, ARC Energy Fund 6 International LP, ARC Capital 6 LP, or any other person controlled or managed, directly or indirectly by ARC Financial Corp., for $5.50 in cash per share.

The special resolution approving the arrangement was approved by: (i) 98.65 per cent of the votes cast on the arrangement resolution by shareholders present virtually or represented by proxy at the meeting and entitled to vote at the meeting; and (ii) 96.75 per cent of the votes cast on the arrangement resolution by shareholders present virtually or represented by proxy at the meeting and entitled to vote at the meeting, excluding for the purposes of (ii) the votes cast in respect of shares held or controlled by persons described in items (a) through (d) of Section 8.1(2) of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions.

The arrangement is subject to the approval of the Court of King's Bench of Alberta. The anticipated hearing date for the application for the final order of the court is Dec. 15, 2025. Subject to obtaining the final order, and the satisfaction or waiver of the conditions to implementing the arrangement as set out in the arrangement agreement dated Oct. 17, 2025, among Step and the purchaser parties, the arrangement is anticipated to be completed on Dec. 16, 2025. The shares will be delisted from the Toronto Stock Exchange following the closing of the arrangement.

About Step Energy Services Ltd.

Step is an energy services company that provides coiled tubing, fluid, and nitrogen pumping and hydraulic fracturing solutions. The company's combination of modern equipment along with its commitment to safety and quality execution has differentiated Step in plays where wells are deeper, have longer laterals and higher pressures. Step has a high performance, safety-focused culture, and its experienced technical office and field professionals are committed to providing innovative, reliable and cost-effective solutions to its clients.

Founded in 2011 as a specialized deep capacity coiled tubing company, Step has grown into a North American service provider delivering completion and stimulation services to exploration and production companies in Canada and the United States. Step's Canadian services are focused in the Western Canadian sedimentary basin, while in the United States, its coiled tubing services are focused in the Permian and Eagle Ford in Texas, the Uinta-Piceance and Niobrara-DJ basins in Colorado, and the Bakken in North Dakota.

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