Mr. James Evaskevich reports

YANGARRA BELLY RIVER UPDATE

Yangarra Resources has been actively acquiring land and drilling wells in the Chambers area of the Belly River play over the past two years. The play overlays Yangarra's existing Cardium production in Chambers, enabling the company to leverage its owned infrastructure and existing surface leases to efficiently develop the Belly River formation.

With the majority of land acquisitions now complete, Yangarra has identified 40 net Tier 1 Belly River drilling locations, supported by results from 10 Belly River wells currently on production. Over the next six to 12 months, the company plans to further delineate the play across its Chambers area land base, with the potential to expand its Belly River inventory by an additional 60 net locations.

Two standing Belly River wells are scheduled to be fracture stimulated this week, and Yangarra expects to commence drilling two additional Belly River wells in the near term.

During the initial phase of development, maintaining the drill bit within the target zone proved challenging, and early wells were completed using a slickwater fracture stimulation design. By the fifth well, drilling performance had improved significantly, largely eliminating issues associated with staying in zone. Beginning with the seventh well, Yangarra transitioned to a gelled fracture stimulation design.

The first group of wells delivered average IP90 rates of approximately 200 barrels of oil equivalent per day, which form the basis of the company's current type curves and economic assumptions for the Chambers Belly River play.

On the 10th well, Yangarra implemented a reconfigured bottom-hole pump (BHP), replacing the smaller pumps used on earlier wells. This modification resulted in a substantial increase in productivity. Following a two-week cleanup period, the 10th well is currently producing above 500 barrels of oil equivalent per day (68 per cent liquids).

Based on these results, the company upgraded the BHP systems in wells 8 and 9. Despite having already been on production, both wells experienced significant production increases following the pump upgrades.

Detailed individual well results from the Chambers area, including both the emerging Belly River zone and the established Cardium zone, are available in Yangarra's updated corporate presentation.

We seek Safe Harbor.