Mr. Jeremy Hodder reports

TUKTU RESOURCES LTD. ANNOUNCES CORPORATE AND OPERATIONS UPDATE

Tuktu Resources Ltd. has provided its 2026 corporate strategy centred on its Monarch oil play, as well as an operations update. Tuktu's streamlined 2026 plan in the Monarch area focuses on improving well targeting using seismic, pursuing low-cost well workovers to derisk the play, cutting overhead, and evaluating the divestment of its non-core assets to strengthen the balance sheet and drive shareholder value.

2026 corporate strategy

Tuktu's technical team will continue to focus solely on the Monarch oil play, leveraging all data and learnings from the area to derisk the Banff and Big Valley play and increase shareholder value. By narrowing its focus to the Monarch area and applying a data-led approach, Tuktu aims to improve well accuracy, lower operating costs and unlock additional production from existing wells.

The company's plan moving forward is as follows:

• 2-D seismic review/interpretation upon completion will aid in the company's broader understanding of the play trap and trend system;
• Acquire available 3-D seismic; the team is in discussions with a third party seismic broker to acquire all or a portion of the data over Tuktu's land base;
• Core rock studies and petrophysical work are scheduled to further aid its understanding and build a proper geological model of the Banff and Big Valley system, as well as any potential shallower zones;
• The team has identified potential workover candidates and recompletions in existing wells to derisk the play and further advance the play potential;
• Identify drilling opportunities, with proper design and costs to be capital efficient;
• Continue to reduce general and administrative expenses;
• Work to reduce operating costs and generate additional revenue streams;
• Evaluate the divestment of non-core assets;
• Reduce corporate ARO;
• Evaluate assets that complement the company's Monarch asset with highly accretive oil and liquid-rich opportunities that are strategy appropriate for a junior publicly traded company;
• Broaden internal policies, including EHS policies, ESG policies and internal controls;
• Foster good internal and external communications built on trust and transparency within the company, with the company's board of directors and with external partners.

Tuktu is advancing its Monarch asset by integrating new and existing data, deploying readily available technology, and leveraging the team's 50-plus years of Deep basin/Foothills expertise.

Operations update

The company's discovery well at 4-20-010-24W4 in the Alberta Deep basin continues to produce approximately 78 barrels per day and has produced over 107,000 bbl in aggregate since being placed on production over a year ago. Tuktu has an 80-per-cent working interest in this well.

The company's offset horizontal well at 16-20-010-24W4, drilled in the first quarter of 2025, is currently shut in and will likely remain shut in indefinitely (see below for further details).

As disclosed in the company's press release dated Nov. 20, 2025, Tuktu identified and implemented an optimization program, stabilizing average production at approximately 490 barrels of oil equivalent per day (60 per cent natural gas and 40 per cent crude oil).

Banff porous play

The company's geoscience review of data from the 4-20-010-24W4 vertical discovery well of the Upper Banff porous oil zone and subsequent drilling of this zone with the horizontal 16-20-010-24W4 in 2025 indicate the key pay zone was missed in the horizontal well, and additional work is required to derisk the play before further drilling capital is spent. Initial findings from well and drill cuttings suggest that this oil accumulation has a stratigraphic control which could be mapped by seismic data. In house seismic (2-D) is being used to identify the trap and map the extent of the clastic reservoir. Work will continue using 3-D seismic and all available well data to create a depositional model and an exploration play trend map.

Offset horizontal well (16-20-010-24W4)

Tuktu's technical team has reviewed the offset horizontal well and evaluated its lack of performance as compared with the company's discovery well (4-20-010-24W4) and determined the following:

• The well penetrated the Banff porous interval but drilled out of the reservoir.
• Two 2-D seismic lines of high-quality data were reprocessed, and the well was landed properly but drilled away from the seismic control.
• Drill cutting review from 16-20-010-24W4 was inconclusive, but only a trace amount of sandy siltstone was seen with good oil staining (the reservoir) in the heel of the well, versus siltstone with no oil stain for the rest of the horizontal leg (not reservoir).
• Drilling operation reached planned depth but was complicated by the drill design and failure to utilize comprehensive logging tools (only gamma ray was used) to further guide and derisk the drilling operation and garner future learnings.
• Historical drilling in the Monarch area uses gas detection as gas markers to indicate the productive sand, and, in the most recent horizontal drill, no gas was detected outside of the landing point or heel of the well. This is further indication the well missed or is out of zone.
• Completion operations were ineffective as verified by tracer data, frack modelling and poor inflow/production, which reflects the well not in zone resulting in very poor inflow.
• The artificial lift equipped on the well was a high-volume electric submersible pump designed to move high volumes of fluid. Results observed during flowback of the initial completion suggest this equipping decision was improper. Unfortunately, the performance of the artificial lift in place has been poor due to overestimated inflow resulting in the pump malfunctioning and shutting down. The well is currently shut in and unproductive with the current system in place.

About Tuktu Resources Ltd.

Tuktu is a publicly traded junior oil and gas development company headquartered in Calgary, Alta., with producing oil and gas properties in Southern Alberta.

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