An anonymous director reports

CONDOR PROVIDES A DRILLING UPDATE FOR UZBEKISTAN AND ANNOUNCES THE SALE OF ITS TURKISH ASSETS

Condor Energies Inc. has provided an update on its Uzbekistan and Turkey projects.

Uzbekistan drilling update

The company's second well of its multiwell campaign, Andakli-21 (A-21), has reached TD (total depth) at 3,456 metres, including 1,279 metres of open-hole lateral section, setting a record for the longest horizontal drilled in Uzbekistan. The A-21 well was successfully geo steered to intersect over 960 metres of carbonate reservoir as defined by drill cuttings and containing greater-than-6-per-cent visible porosity. Reservoir quality exceeded pre-drill expectations with 223 metres of the lateral section containing up-to-12-per-cent visible porosity observed in cuttings. These reservoir intervals were accompanied by significant gas shows, many ranging from 20 per cent up to 31 per cent, which represents the gas volume entrained in the drilling fluid from the drill cuttings. Preparations are under way to perform an acid stimulation in the entire A-21 lateral section designed to remove any near wellbore drilling fluid invasion and further enhance productivity, as was done on the same carbonate zone in the vertical pilot wellbore of the previously drilled Andakli A-23 (A-23), where production rates increased eight to tenfold postacid stimulation. Once acid stimulation is complete, the A-21 well will be flow tested and brought onto production, which is expected to occur in the second half of February, 2026. Afterward, the 1,007-metre lateral section of the A-23 well will also be acid stimulated, tested and brought on line. Both acid stimulations will be conducted using small-diameter tubulars while a larger diameter coil tubing unit is mobilized to site later in the first quarter of 2026.

The company is concurrently operating a second drilling rig to drill its third well in Uzbekistan in an underdeveloped portion of the Kumli gas field. Kumli-45 (K-45) is a vertical well with a planned TD of 2,400 metres and targets multiple reservoirs. An 18-metre core has been recovered from one of the target zones at 2,150 metres and will be exported to Canada for special core analysis. The core is expected to provide valuable information on reservoir parameters, and the K-45 logging will calibrate regional wireline log data to assist with development planning and prioritize a subsequent drilling campaign of up to six horizontal wells from this pad. K-45 is planned to be tested in February, 2006, after logging and casing operations are completed. In addition, the company plans to construct a second drilling pad in another undeveloped portion of the Kumli field in the first quarter of 2026 for drilling one additional vertical and up to six additional horizontal wells.

Sale of Turkish properties

The company entered into a share purchase agreement (SPA) on Jan. 21, 2026, with a third party buyer to sell the shares of the company's wholly owned subsidiary, which holds the Poyraz Ridge and Destan operating licences and gas fields in Turkey for a 10-year gross overriding royalty and a nominal cash payment. The transaction is subject to customary Turkish government approvals for a transaction of this nature and completion shall occur within ten business days of receiving the government approvals.

The SPA includes a gross overriding royalty at rates ranging from zero to 15 per cent depending on average daily production volumes and calculated as sales revenues less government royalties and less transportation costs for a period of 10 years subject to an aggregate cap of $10.0-million (U.S.) and a cash consideration of 18,000 euros due on the closing date. There was no cash payment due on the signing date. Subject to certain considerations, the buyer is required to perform a minimum work commitment, which includes conducting various workover activities and drilling one new well on the Turkish properties.

Commencing 60 days following the signing date, the buyer is also responsible for all operating expenditures until the completion date, including production costs, general and administrative expenses, and taxes.

The buyer has the option during between the signing date and the completion date to request the company, as operator, to perform activities that will be credited toward the minimum work commitment. The buyer shall be responsible for any related expenditures of such work.

Either party may terminate the SPA if the government approvals are not received within one year of the signing date and the company would be required to repay the capital expenditures incurred for the minimum work commitment activities performed during the interim period from 90 per cent of the free cash flow (revenues less operating costs and taxes) from future natural gas production and sales from the Turkish properties, if any.

Don Streu, Condor's president and chief executive officer, commented: "Our active drilling and completion programs are providing several catalysts that may yield further near-term production growth. We're very pleased with the reservoir quality and strong gas shows experienced while drilling the A-21 well and look forward to completing that testing program next month. We've already encountered positive gas shows during coring operations on the K-45 vertical well and expect logging and test results next month as well. Once the A-21 well is on line, we're also planning to acid stimulate and test the lateral section of the A-23 well.

"The sale of the Turkish assets reaffirms our strategic focus in Central Asia on our distinct first-mover energy security portfolio to increase production on the existing Uzbekistan fields, introduce LNG production in Kazakhstan, and develop and produce critical minerals from brines in Kazakhstan."

About Condor Energies Inc.

Condor Energies is a Toronto Stock Exchange-listed energy transition company that is uniquely positioned on the doorstep of European and Asian markets with three distinct first-mover energy security initiatives: increasing natural gas and condensate production from its existing fields in Uzbekistan; a continuing project to construct and operate Central Asia's first LNG (liquefied natural gas) lower carbon fuel diesel substitution facility in Kazakhstan; and a separate initiative to develop and produce critical minerals from brines in Kazakhstan. Condor has already built a strong foundation for reserves, production and cash flow growth while also striving to minimize its environmental footprint.

The company recognizes 100 per cent of the production volumes, sales volumes, sales revenues, royalties and expenses related to the production enhancement contract project in Uzbekistan, and then allocates 49 per cent of the comprehensive income (loss) attributable to the non-controlling interest holder. This is consistent with the accounting and disclosure in the company's financial statements. Accordingly, the production volumes disclosed in this news release related to the PEC project are 100 per cent of the amounts attributable to the PEC project, of which 51 per cent are attributable to the company.

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