Mr. Don Streu reports

CONDOR ANNOUNCES CLOSING OF C$72 MILLION FINANCING TO FUND INFRASTRUCTURE INVESTMENTS FOR FIELD COMPRESSION IN UZBEKISTAN AND MODULAR LNG FACILITIES IN KAZAKHSTAN

Condor Energies Inc. has closed the previously announced brokered best efforts public offering of 12 per cent unsecured convertible debentures of the company at a price of $1,000 per convertible debenture for $28,262,000 in gross proceeds, including the partial exercise of the overallotment option. The offering was co-led by Research Capital Corp. as co-lead agent and sole bookrunner, and together with Canaccord Genuity Corp. as co-lead agent.

Concurrent with the offering, the company has also completed the previously announced non-brokered private placement pursuant to applicable prospectus exemptions in accordance with National Instrument 45-106 on the same price, terms and conditions as the offering for $43,283,000 in gross proceeds, except the convertible debentures issued under the non-brokered private placement are subject to a statutory hold period expiring on Feb. 16, 2027.

The company raised a total of $71,545,000 in aggregate gross proceeds from the offering and the non-brokered private placement.

Each convertible debenture has a principal value of $1,000, is convertible into common shares of the company at a conversion price of $6 per common share and matures on Oct. 15, 2029. Interest shall accrue on the convertible debentures at 12 per cent per annum, payable quarterly in arrears, in cash, and the first such interest payment is to fall due on Dec. 31, 2026, and represent interest from and including Oct. 15, 2026, to, but excluding, Dec. 31, 2026, which will be equal to $25.33 for each $1,000 principal amount of the convertible debentures. The convertible debentures will be repaid in cash on the maturity date. The convertible debentures are expected to commence trading on the Toronto Stock Exchange under the symbol CDR.DB on Oct. 15 2026, subject to satisfaction of the TSX listing requirements.

The net proceeds from the offering and the non-brokered private placement will be used to finance field compression facilities in Uzbekistan, modular LNG (liquefied natural gas) facilities in Kazakhstan, working capital and general corporate purposes.

Field compression -- Uzbekistan: Due to the strong results from the recent horizontal drilling program at Kumli, Condor is now producing more gas into a gathering system that was designed around lower-rate legacy wells. As production from the new high-rate horizontals increases, higher gathering and downstream pipeline pressures can back out production from the lower-pressure legacy wells. Condor is therefore installing field booster compression to lower gathering-system pressure, improve production reliability and help maintain output from the existing well base. Condor has awarded the contract for a 1,200-kilowatt booster compressor, with engineering under way, an estimated cost of approximately $25.3-million (U.S.) and commissioning targeted for Q2 (second quarter) 2027.

First LNG facility -- Saryozek, Kazakhstan: Condor is developing its first modular LNG facility at Saryozek, with module 1 designed to produce approximately 48,000 gallons (80 metric tonnes) per day of LNG. Fabrication of the liquefaction unit has been completed, and the fully assembled unit is undergoing final pressure and acceptance testing ahead of shipment to Kazakhstan, with first LNG production still targeted for Q2 2027. Condor has secured 20 hectares at Saryozek through July, 2059, and is finalizing LNG offtake arrangements, with potential end-markets including rail locomotives, trucking, mining equipment and other diesel-intensive applications.

The offering was completed by way of a prospectus supplement dated Oct. 1, 2026, to the company's short form base shelf prospectus dated March 18, 2026, filed with the securities regulatory authorities in each of the provinces of Canada (except Quebec). Copies of the base shelf prospectus and the prospectus supplement are available under the company's profile on SEDAR+.

The non-brokered private placement was completed by way of private placement in each of the provinces of Canada.

Certain directors and officers of the company subscribed for an aggregate of $3.75-million principal amount of convertible debentures under the non-brokered private placement. The participation of the insiders constitutes a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that neither the fair market value of the convertible debentures subscribed for by the insiders nor the consideration paid by them exceeded 25 per cent of the company's market capitalization. The company did not file a material change report more than 21 days before the closing of the non-brokered private placement because the details of the participation of the insiders were not settled until shortly before closing and the company wished to complete the non-brokered private placement on an expedited basis for sound business reasons.

In connection with the offering, the company paid the agents an aggregate cash commission of $1,695,720.

We seek Safe Harbor.