Mr. Abdel Badwi reports

TAG OIL ANNOUNCES $5 MILLION BROKERED LIFE OFFERING TO ADVANCE UNCONVENTIONAL DEVELOPMENT ACTIVITIES ON ITS LARGE OIL-IN-PLACE RESOURCE PLAY AT BED-1 AND SERQ CONCESSIONS, EGYPT

TAG Oil Ltd. has entered into an agreement with Research Capital Corp. as the lead agent and sole bookrunner, on behalf of a syndicate of agents, in connection with a brokered, best effort listed issuer financing exemption private placement offering of units of the company at a price of 10 cents per unit for aggregate gross proceeds to the company of up to $5-million.

Each unit will consist of one common share of the company and one common share purchase warrant. Each warrant shall entitle the holder thereof to purchase one common share at an exercise price of 13 cents per common share for a period of 48 months following the closing of the offering. In addition, the company will use commercially reasonable efforts to obtain the necessary approvals to list the warrants on the TSX Venture Exchange.

In connection with the offering, it is expected that certain members of management and directors of the company and other president's list investors will be subscribing in the offering alongside other investors.

The company will grant the agents an option to increase the size by up to an additional 15 per cent of the number of units sold in the offering, by giving written notice of the exercise of the agent option, or a part thereof, to the company at any time up to two business days prior to closing of the offering.

The company intends to use the net proceeds of the offering to advance appraisal and development activities at both the Badr oil field (BED-1) and the southeastern Ras Qattara concessions in the Western Desert, Egypt, and for working capital and general corporate purposes.

Activities to be advanced with the financing proceeds include: (a) the drilling of a new vertical delineation well at BED-1 in the unconventional Abu Roash F resource play targeting lighter-gravity crude in a high-intensity natural fractured area; and (b) performing a diagnostic fracture injectivity test in an existing wellbore to evaluate the ARF potential at the SERQ concession.

Investment highlights -- BED-1 and SERQ concessions in Egypt:

• Established OIIP at BED-1: Independent engineers have assigned 532 million barrels of oil in place to the ARF within the BED-1 concession;
• Independent volumetric assessment estimates approximately 3.2 billion barrels of oil initially in place across 512,000 acres of the SERQ concession and plans for additional technical studies, with a National Instrument 51-101 resource report expected in first quarter 2026;
• The scale of the resource on both concessions can provide a strong foundation and potential to attract strategic joint venture partners through a broad process planned for 2026;
• Existing regional infrastructure significantly lowers development risk and timelines.

TAG Oil has completed detailed technical studies of the ARF reservoir, identifying it as a low-permeability carbonate formation with substantial development potential. The company believes the reservoir holds a high likelihood of commercial success using proven horizontal drilling and hydraulic fracturing technologies, methods that have already demonstrated positive results in the BED-1 concession in Egypt, as well as in comparable plays such as Canada's Montney formation and the Eagle Ford shale in the United States.

Additional offering details

The units will be offered for sale pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 (Prospectus Exemptions) as amended by Canadian Securities Administrators' Coordinated Blanket Order 45-935 (Exemptions from Certain Conditions of the Listed Issuer Financing Exemption) in all provinces of Canada, except Quebec, and other qualifying jurisdictions, including the United States. The units offered under the listed issuer financing exemption will be immediately free-trading upon closing of the offering under applicable Canadian securities laws.

There is an offering document related to this offering that can be accessed under the company's profile at SEDAR+ and at the company's website. Prospective investors should read this offering document before making an investment decision.

The closing of the offering is expected to occur on or about the week of Feb. 16, 2026, or on such date as the agents and company may agree upon. Closing is subject to the company receiving all necessary regulatory approvals, including the conditional approval of the TSX Venture Exchange.

The agents will receive a cash commission of 8.0 per cent of the aggregate gross proceeds of the offering and such number of broker warrants as is equal to 8.0 per cent of the number of units sold under the offering (in each case, subject to reduction for certain subscribers on a president's list of purchasers identified by the company). Each broker warrant entitles the holder to purchase one unit at an exercise price equal to the issue price for a period of 48 months following the closing.

About TAG Oil Ltd.

TAG Oil is a Canadian-based international oil and gas exploration company with a focus on operations and opportunities in the Middle East and North Africa.

We seek Safe Harbor.