Mr. Brian Schmidt reports

TAMARACK VALLEY ENERGY LTD. RELEASES 2023 SUSTAINABILITY REPORT AND PROVIDES OPERATIONAL UPDATE

Tamarack Valley Energy Ltd. has released its fourth annual sustainability report, highlighting the company's continuing commitment to environmental, social and governance (ESG) principles and sustainable practices during 2022. The company continues to look for opportunities to ensure the long-term sustainability of the company and the Canadian energy sector.

Highlights of Tamarack's 2022 sustainability performance

• Delivered significant progress toward the company's clear, measurable goals and targets, including achievement of more than 50 per cent of its ESG goals to date -- on time or ahead of schedule;
• Demonstrated commitment to accountability and transparency through the issuance of two tranches of sustainability-linked notes, as well as independent third party assurance of key ESG metrics;
• Achieved emissions and methane intensity reductions of 19 per cent and 45 per cent, respectively, compared with the 2020 baseline, exceeding the 2025 methane intensity reduction goal of 40 per cent and progressing toward the 2025 emissions intensity reduction goal of 39 per cent;
• Increased investment in abandonment, remediation and reclamation activities through Tamarack financed expenditures equivalent to 8.8 per cent of inactive liabilities or more than 200 per cent of the voluntary regulatory program spend, exceeding the company's target of 150 per cent of voluntary program spend for 2022, with additional funds equivalent to 3.7 per cent of inactive liability deployed through grants and the site rehabilitation program;
• Furthered diversity in the work force, with increased ethnic (13.1 per cent) and indigenous (7.9 per cent) representation in the company's contractor and employee base and an increase in gender diversity (28.6 per cent) at the board level which was further increased (37.5 per cent) subsequent to year-end 2022. Tamarack was recognized by the Globe and Mail during the Report on Business 2023 Women Lead Here program for the female representation in 2022 at the highest leadership levels in the organization.

Message to stakeholders

The last two years brought significant changes for our organization, including the evolution of Tamarack's asset base under the company's growth and portfolio rationalization strategy culminating in $1.7-billion in highly economic asset acquisitions in 2022. Tamarack has a proven record of applying the same rigorous ESG standards to acquisitions that are applied to our legacy asset base. These newly acquired greenfield assets require significant financial and human resource investments to create a positive environmental and social footprint. With Tamarack's experience and robust capitalization, the company is in the strongest position to develop these assets in a long-term and sustainable manner.

In 2022, our emissions intensity increased over the prior year to 30.3 kg (kilograms) CO2e/boe (carbon dioxide equivalent per barrel of oil equivalent) due to sizable acquisitions and development in the Clearwater area. As part of these acquisitions, Tamarack committed to investing the capital required to improve the emissions intensity of these assets and has multiple continuing gas conservation projects in the West Marten Hills, Nipisi and South Clearwater areas. Tamarack continues to work toward the ambitious goal of 22.9 kg CO2e/boe (39-per-cent reduction) by 2025.

Tamarack has established a successful model for emissions reductions in acquisitions, starting with the immediate conversion of vent to combustion followed by short-term optimization in the first 12 months of operations and then long-term, large-scale infrastructure projects spanning one to three years. An example of this can be seen through the 2020 Clearwater acquisitions and the subsequent Nipisi multiphase gas infrastructure project with capital invested in excess of $20-million through 2021 and 2022. On acquisition, one of the core Nipisi assets had an emissions intensity of approximately 100 kg CO2e/boe. Through the conversion of vent volumes to flare and optimization of the operations, Tamarack was able to reduce the facility to less than 38 kg CO2e/boe within the first three months and down to less than 20 kg CO2e/boe within two years.

Tamarack's 2023 sustainability report covers performance metrics for the 2020 to 2022 calendar years and aligns with guidance set forth by the Sustainability Accounting Standards Board (SASB), the Task Force on Climate-related Financial Disclosure (TCFD) and the Global Reporting Initiative (GRI) with consideration for the United Nations Sustainable Development Goals (UN SDG).

The full report can be accessed through the company's website.

Operations update

Alberta wildfires and third party infrastructure downtime

Although the company experienced negligible infrastructure damage, the Alberta wildfire situation had both direct and indirect impacts on Tamarack's operations, including production impacts associated with unplanned third party infrastructure downtime. These events drove a collective impact of approximately 1,500 boe/d for the second quarter. These issues have been resolved and are not expected to have an impact on the second half of 2023. Despite the production impact, the company was able to maintain the safety of all work force members and the integrity of its assets throughout these potentially catastrophic events. The safety of the company's people and the integrity of its assets is, and will continue to be, the priority in Tamarack's operations. In addition, Tamarack provided financial support to indigenous and local communities in the areas where the company operates, for assistance with displacement and emergency response. The company will continue to monitor for opportunities to assist in the rebuilding stages.

Charlie Lake -- Wembley gas plant

Commissioning of the new Wembley gas plant was completed in June, ahead of schedule, with gas processing and sales commencing in mid-June. This 15 mmcf/d (million cubic feet per day) sweet gas facility now provides consistent and reliable processing capacity within Tamarack's operational control and secures egress for Tamarack's continuing regional development. In addition to the facility's current capacity, this plant is expandable and could support long-term growth in the Charlie Lake program.

The company will provide a more fulsome operations update in conjunction with its second quarter results, which will be released before market on July 27, 2023.

About Tamarack Valley Energy Ltd.

Tamarack is an oil and gas exploration and production company committed to creating long-term value for its shareholders through sustainable free funds flow generation, financial stability and the return of capital. The company has an extensive inventory of low-risk oil development drilling locations, focused primarily on Charlie Lake, Clearwater and EOR (enhanced oil recovery) plays in Alberta. Operating as a responsible corporate citizen is a key focus to ensure it delivers on its environmental, social and governance commitments and goals.

We seek Safe Harbor.