Mr. Darcy Reding reports

CAVVY ENERGY ANNOUNCES 2027 FORWARD SULPHUR PRICE AGREEMENT

Cavvy Energy Ltd. has agreed to terms on a new one-year fixed-price sulphur forward sales agreement with its sulphur marketer beginning Jan. 1, 2027. The sulphur price agreement fixes the price of 200,000 mt (metric tonnes) of sulphur sales at $525 (U.S.)/mt prior to transportation and handling deductions.

Key attributes of the sulphur price agreement are:

• Term from Jan. 1, 2027, to Dec. 31, 2027;
• Physical sale of 200,000 mt of sulphur in calendar year 2027, settled monthly and equivalent to 548 mt/d or approximately 50 per cent of forecasted 2027 sulphur production;
• Fixed price of $525 (U.S.)/mt on the 200,000 mt commitment, before transportation and handling deductions of approximately $80 (U.S.)/mt;
• Prepayment of six months forward deliveries in January, 2027, and July, 2027, each totalling $45.8-million (U.S.);
• The marketer has also agreed to a capital contribution of $4-million (U.S.) to finance necessary general maintenance and capital expenditures on Cavvy's sulphur processing infrastructure over the term of the sulphur price agreement.

Cavvy's 2027 sulphur production in excess of 200,000 mt remains exposed to Vancouver FOB spot pricing less deductions.

About Cavvy Energy Ltd.

Cavvy Energy is an integrated Canadian upstream and mid-stream energy company headquartered in Calgary, Alta. Cavvy's objective is to create long-term shareholder value through development, production, processing, and marketing of natural gas, natural gas liquids and sulphur while providing superior service to the company's third party customers through the company's strategic, company-owned gathering and processing infrastructure located in Western Canada.

We seek Safe Harbor.