Mr. Casey McCandless reports

TETHYS PETROLEUM PRESS RELEASE: CORPORATE UPDATE

Tethys Petroleum Ltd. has provided an update on the company's operations in the Republic of Kazakhstan.

Update on transition to a production period of Kul-Bas oil field (commercial production)

The Ministry of Energy of the Republic of Kazakhstan issued an approval on Dec. 19, 2025, for the transition of the Kul-Bas oil field to the production period through July 27, 2048. This approval is a critical milestone for the company as it ensures the continuation of production at Kul-Bas beyond the expiry of the current preparatory period in July, 2026. The next step is to sign an addendum to the Kul-Bas subsoil use contract reflecting the approved terms. The company expects this addendum to be signed by the end of January, 2026, subject to completion of the required formal procedures.

Operations update

Oil production from wells KBD-02, KBD-06 and KBD-07 has averaged approximately 425 tons per day in December. This period has had fluctuations reflecting continuing optimization of surface facilities. Work is under way on one of the gas turbines with an expectation this will support higher production levels once the unit is returned to service. Commissioning activities on the new gas compressor are also continuing. If successful, the additional capacity is expected to support increased production. Design and construction work on the field camp, the oil processing and storage capacity at the central processing facility in the Kul-Bas oil field is progressing. Design and construction work for the gas processing facility and the six-inch, 18-kilometre gas pipeline is also moving forward. Natural gas production from the Kyzyloi and Akkulka gas fields is currently averaging about 230,000 cubic metres per day from 21 gas wells.

Extension of Akkulka gas field subsoil use contract

The company submitted an application to the Ministry of Energy of the Republic of Kazakhstan to extend subsoil use contract for the Akkulka gas field until December, 2036, which currently expires in December, 2026. The company expects to receive approval in January, 2026, followed by the signing of the addendum to the Akkulka subsoil use contract in February, 2026, subject to completion of the required procedures.

Update on voluntary delisting from the Kazakhstan Stock Exchange

The board of directors of Tethys Petroleum has approved a resolution to proceed with a voluntary delisting of the company's securities from the Kazakhstan Stock Exchange. In accordance with this decision, the company has submitted an application for voluntary delisting to KASE under the established procedure. Given the absence of meaningful trading activity on KASE over an extended period, the board of directors concluded that maintaining a secondary listing on KASE does not provide practical benefits to shareholders. The company's primary listing and principal trading market remain on the TSX Venture Exchange.

About Tethys Petroleum Ltd.

Tethys is focused on oil and gas exploration and production activities in central Asia.

We seek Safe Harbor.