Mr. Richard Gonzalez reports

PETRO-VICTORY ENERGY DELIVERS TRANSFORMATIONAL FIRST-YEAR PERFORMANCE AT CAPIXABA ENERGIA, MORE THAN DOUBLING OIL PRODUCTION AND GENERATING RELEVANT FREE CASH FLOW

Following the announcement of the partnership and acquisition of Capixaba Energia on April 29, 2025, Petro-Victory Energy Corp. has released the results of its first year of operations at Capixaba Energia, highlighting significant production growth, improved operating margins and strong cash generation.

Richard F. Gonzalez, chief executive officer of Petro-Victory, commented: "Our first year at Capixaba Energia demonstrates the strength of our strategic partnership with Blue Oak Investments and Petro-Victory's ability to unlock value from mature onshore assets. We increased oil production by 128 per cent, grew gas production by 471 per cent and reduced production costs by 37 per cent, while validating new reservoirs without additional drilling.

These results validate our operating model and demonstrate Petro-Victory's ability to work alongside institutional capital to build scalable platforms across Brazil's mature onshore oil and gas sector. We believe this approach provides a strong foundation for continued growth and value creation."

First-year highlights:

• Oil production increased 128 per cent from 256 barrels per day to 583 bbl/d.
• Gas production increased 471 per cent, creating new revenue streams and contributing to cost reductions.
• Production costs decreased 37 per cent from $25.80 (U.S.) per bbl to $16.30 (U.S.) per bbl.
• Seventeen million Brazilian reais of free cash flow from operations were generated and reinvested into the business.
• Ninety-eight-point-seven-per-cent operational efficiency was achieved during the workover campaign, with only 35 hours of non-productive time and zero accidents.
• Three wells -- LP-38, LP-73 and LP-77D -- were validated, while the Upper Urucutuca was confirmed as a new commercial horizon, without additional drilling.
• Water injection capacity increased 67 per cent from approximately 12,000 bbl/d to 20,000 bbl/d, without additional capital expenditures.

One year of operational transformation

During its first year of operations, Petro-Victory and its partner Blue Oak implemented a comprehensive program focused on production optimization, reservoir development, operational efficiency and infrastructure improvements across Capixaba Energia's asset base.

Oil production increased from 256 bbl/d to 583 bbl/d, representing growth of 128 per cent, while gas production increased 471 per cent. The significant increase in gas production created additional revenue opportunities while supporting the company's broader strategy to maximize the economic value of existing production.

The production improvements were accompanied by a material reduction in the cost base. Production costs declined 37 per cent from $25.80 (U.S.) per bbl to $16.30 (U.S.) per bbl. At the same time, the weighted-average discount on oil sales improved by six percentage points, from 17.3 per cent to 11.3 per cent, further strengthening realized economics.

Capixaba Energia generated 17 million Brazilian reais in free cash flow from operations, which were reinvested into the business to support continued optimization and growth.

Workover campaign and reservoir validation

A central component of the first-year strategy was an intensive workover and technical evaluation program designed to unlock production and identify additional opportunities within the existing well inventory.

The campaign achieved 98.7-per-cent operational efficiency, totalling 2,682 productive hours with only 35 hours of non-productive time, while completing the program with zero accidents.

Petro-Victory strategy emphasized extracting additional value from the existing asset base before committing capital to new drilling. More than 20 wells and ESP systems were technically assessed, and the workover campaign validated new reservoir opportunities without drilling additional wells.

Advanced seismic reprocessing and inversion were completed to enhance reservoir characterization and support the identification and prioritization of future opportunities.

Cased hole logging technologies were deployed, including specialized oil saturation tools, to identify bypassed hydrocarbons, improve reservoir characterization, and support the selection of workover and production optimization opportunities.

Three wells -- LP-38, LP-73 and LP-77D -- were validated, supporting the partners' mature field revitalization thesis. In addition, the Upper Urucutuca was confirmed as a new commercial horizon, expanding the identified development potential of the asset.

Infrastructure, water injection and operational efficiency

Petro-Victory also implemented a series of engineering and infrastructure initiatives aimed at improving reliability, production capacity and operating efficiency.

Water injection capacity increased approximately 67 per cent, from 12,000 bbl/d to 20,000 bbl/d, without additional capex. Integrated reservoir and injection studies were undertaken alongside improvements to the separation, flotation, control valve and fiscal metering systems at Lagoa Parda.

Additional improvements included coalescing filters to enhance produced gas quality, increased generation reliability and energy availability, and optimization of separation and flotation systems.

The operation also migrated to the free energy market, optimized its vehicle fleet, strategically reused existing materials and internalized selected technical analyses, reducing dependence on external services.

Remote monitoring and centralized operational controls were implemented alongside proprietary operational tools, further strengthening the efficiency and scalability of the platform.

Strategic partnership with Blue Oak Investments

Petro-Victory established its strategic partnership with Blue Oak Investments on Jan. 7, 2025, and Petro-Victory and Blue Oak subsequently executed a joint venture agreement on Feb. 28, 2025.

The partnership combines Petro-Victory's operational and technical capabilities in the Brazilian onshore oil and gas sector with Blue Oak's investment expertise and capital resources, with the objective of acquiring, optimizing and expanding high-quality energy assets.

Capixaba Energia is the 100-per-cent owner of oil and gas assets in the Espirito Santo basin, including the Lagoa Parda cluster, as well as two adjacent exploration blocks.

The results achieved during the first year demonstrate the partners' ability to combine disciplined capital allocation with technical and operational execution to unlock value from mature onshore assets.

A scalable model for mature onshore assets

The first year of Capixaba Energia demonstrates a repeatable approach to value creation centred on experienced operatorship, disciplined capital deployment and technical optimization of existing assets.

Production more than doubled while unit production costs declined materially. Additional reservoirs were validated without new drilling, infrastructure capacity was expanded without additional capex and operating cash flow was reinvested into the asset.

The company believes this combination of experienced operatorship, institutional capital and disciplined execution provides a scalable model for acquiring and revitalizing additional mature onshore oil and gas assets across Brazil and Latin America.

About Petro-Victory Energy Corp.

Petro-Victory is an oil and gas company engaged in the acquisition, development and production of crude oil and natural gas in Brazil. The total portfolio under management as of the date of this filing includes 31 concession contracts with 210,583 acres, net to Petro-Victory, plus an additional four concessions and 11,413 acres owned jointly with Blue Oak in Capixaba Energia. Through disciplined investments in high-impact, low-risk assets, Petro-Victory is focused on delivering sustainable shareholder value. The company's common shares trade on the TSX Venture Exchange under the ticker symbol VRY.

We seek Safe Harbor.