Mr. Marshall Abbott reports

ARROW ANNOUNCES EXPLORATION WELL IC-2 RESULTS

Arrow Exploration Corp. has provided an update on operational activity at the Icaco field on the Tapir block in the Llanos basin of Colombia, where Arrow holds a 50-per-cent beneficial interest.

Icaco-2 well

The Icaco-2 exploration well (IC-2) was spudded May 18, 2026, and reached target depth on May 26, 2026. The IC-2 well was drilled, on time and under budget, to a total measured depth of 12,020 feet MD (measured depth), or 7,399 feet TVD (true vertical depth), and encountered multiple hydrocarbon-bearing intervals.

Log analysis shows 19.5 feet of net pay in the Carbonera C7 formation, six feet of net pay in the Gacheta formation and 74.5 feet of net pay in the Ubaque formation, for a total net pay of 100 feet TVD.

The well is currently producing from the Ubaque formation, at a restricted rate, 35/128 choke and 37-hertz pump frequency, of approximately 830 barrels of oil per day gross (415 bopd net). The oil quality is 13.4-degree API and there is a 1-per-cent water cut.

The ultimate flow rate will be determined in the first few weeks of production.

Initial production results are not necessarily indicative of long-term performance or ultimate recovery.

Forward drilling plans

The IC-4HZ well targeting the Ubaque formation was spudded on June 13. Afterward, the rig will move to drill the IC-3 vertical well, which has C7, Gacheta and Ubaque potential. The company is constructing five additional cellars at the Icaco pad for a total of seven additional cellars after IC-4HZ.

Production

Including the restricted production from the IC-2 well, total gross corporate production is approximately 5,000 barrels of oil equivalent per day. Currently, the CN-HZ12 well is off-line waiting on a workover. The well was producing approximately 330 bopd gross (165 bopd net) when it was shut in. Arrow has continued to shut in the Pepper gas field due to low natural gas prices in Alberta, which was producing approximately 130 boepd when it was shut in. The company believes that AECO gas prices will improve in the third and fourth quarters of 2026 once the region moves into the winter months. At that time, the Pepper field is expected to be brought back on production.

Prices

During May, 2026, Arrow oil field realized prices averaged approximately $97.48 (U.S.) per barrel, which reflects the increase in Brent oil prices experienced by the unrest in the Middle East. Field prices reflect the deduction of the Vasconia differential and logistics fees (mostly transportation and quality differential).

Cash balance

As of June 2, 2026, the company's estimated cash balance is $26.7-million (U.S.). The company continues to have no debt.

Tapir extension

Arrow and its partner in the Tapir block have recently had encouraging meetings with Colombian authorities on the extension of the Tapir block. To date, the dialogue has been very constructive. Arrow believes that all conditions required for the extension to be granted have been met and management remains very confident that the extension will be granted. The company will continue to update the market on developments as they occur. Colombian elections are also taking place this month and it is expected the next president of Colombia will be chosen on June 21, 2026.

Marshall Abbott, chief executive officer of Arrow, commented: "The success of the Icaco-2 well indicates that the Icaco discovery may be material to Arrow. Future projects at Icaco are expected to include both horizontal and vertical development wells. The drilling results at Icaco so far have demonstrated four potential hydrocarbon-bearing zones. This underlies the significant hydrocarbon density that exists in the Llanos basin and more exclusively in the Tapir block.

"Arrow has spud its first horizontal well in the Ubaque formation at the Icaco pad. Integrating multidimensional technical data supports significant flow potential in Icaco Ubaque wells. Strong netbacks and successful horizontal wells support payout occurring in months. This adds significant value and materially improves our positive balance sheet. We look forward to updating our shareholders on the progress at Icaco over the coming months."

About Arrow Exploration Corp.

Arrow Exploration (operating in Colombia through a branch of its 100-per-cent-owned subsidiary, Carrao Energy SA) is a publicly traded company with a portfolio of premier Colombian oil assets that are underexploited and underexplored and offer high-potential growth. The company's business plan is to expand oil production from some of Colombia's most active basins, including the Llanos, Middle Magdalena Valley (MMV) and Putumayo basins. The asset base is predominantly operated with high working interests, and the Brent-linked light oil pricing exposure combines with low royalties to yield attractive potential operating margins. By way of a private commercial contract with the recognized interest holder before Ecopetrol SA, Arrow is entitled to receive 50 per cent of the production from the Tapir block. The formal assignment to the company is subject to Ecopetrol's consent. Arrow's seasoned team is led by a hands-on executive team supported by an experienced board. Arrow is listed on the AIM (Alternative Investment Market) of the London Stock Exchange and on TSX Venture Exchange under the symbol AXL.

Qualified person statement

The technical information contained in this announcement has been reviewed and approved by Grant Carnie, senior non-executive director of Arrow Exploration. Mr. Carnie was formerly a member of the Canadian Society of Petroleum Geologists, holds a BSc in geology from the University of Alberta, and has over 35 years of experience in the oil and gas industry.

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