Mr. Jim Evaskevich reports

YANGARRA RESOURCES LTD. ANNOUNCES EXPANDED 2026 CAPITAL PROGRAM AND INCREASED CREDIT FACILITY

Yangarra Resources Ltd. has made a meaningful expansion of its 2026 capital program and an increase to its syndicated credit facility, reflecting strong early performance from its redesigned Belly River development program, and positioning the company for enhanced oil weighting on production, stronger cash flow generation and sustained value creation.

Operations update

Yangarra continues to increase its strategic focus on the Belly River play and has added a second drilling rig to accelerate development activity, as a result the company expects to bring on eight new wells, including six Belly River wells, by July.

The company's redesigned Belly River drilling and completion approach has delivered encouraging early results, with initial production rates exceeding previously disclosed type curves. While production history remains limited, this early outperformance has supported Yangarra's decision to apply the revised design to five of its next six Belly River wells.

Capital budget update

Reflecting improved Belly River well performance, Yangarra is increasing its 2026 capital budget by 33 per cent to $80-million, enabling the drilling of a total of 25 wells during the year with a continued emphasis on Belly River development. The increased capital program and greater weighting toward Belly River drilling are expected to enhance the oil weighting of the company's production mix and support stronger cash flow generation.

To date, Yangarra has drilled 11 wells and brought five wells on stream. With the expanded capital program and the balance of the year ahead, the company expects to bring a total of 20 wells on stream over the remainder of 2026.

Credit facility update

Yangarra has completed its borrowing base review, resulting in an increase to its syndicated senior credit facility to $160-million with its existing syndicate of banks. The termout date has been extended to May 31, 2027, and the maturity date to May 31, 2028. The expanded facility enhances liquidity and provides additional financial flexibility while supporting the disciplined execution of the company's development plans.

We seek Safe Harbor.