Mr. Gil Holzman reports

ECO (ATLANTIC) OIL AND GAS LTD. ANNOUNCES NAVITAS PETROLEUM FARMS INTO BLOCK 1 CBK

Further to Eco (Atlantic) Oil & Gas Ltd.'s announcement on Dec. 4, 2025, the company has signed a definitive agreement to farm down a 37.5-per-cent working interest (WI) in Block 1 CBK offshore South Africa to Navitas Petroleum LP (acting through a subsidiary). The agreement is a key milestone in Eco's strategic framework agreement with Navitas, which provided Navitas with an option to farm in to Block 1 CBK.

Navitas has, following a review of geological data, now elected to exercise the Block 1 CBK option through the execution of a definitive farmout agreement on May 19, 2026. The agreement is conditional on receipt of customary regulatory approvals, from the Petroleum Agency of South Africa and the TSX Venture Exchange and receipt of $4-million cash payment from Navitas to Eco. Upon completion Navitas will become the operator of Block 1 CBK with 37.5-per-cent WI (and up to 47.5 per cent pending exercise of the Eco-OrangeBasin Energies option) upon completion of the transaction.

Eco will retain a remaining WI of 37.5 per cent (and up to 47.5 per cent assuming the exercise of the option with OrangeBasin Energies referenced below). Eco will be carried by Navitas for the work program, the value of the carry being capped at $7.5-million (U.S.) net to Eco. The amounts carried by Navitas will be repaid through Eco's share of proceeds from future production on the block.

On Dec. 3 2025, Eco, through its subsidiary, Azinam South Africa Ltd. (Azinam SA), signed an exclusive option agreement with its local partner OrangeBasin Energies Pty. Ltd., formerly Tosaco Energy Pty. Ltd., to acquire a further 20-per-cent participating interest in Block 1 CBK for consideration of cash and shares as detailed in the company's announcement on Dec. 4, 2025. Under the Block 1 CBK option, Navitas has the right to acquire 50 per cent of this option (representing a 10-per-cent WI), which is exercisable at Eco and Navitas's mutual consent and discretion at any point throughout the term of the initial exploration period expiring in February, 2028.

The resulting ownership structure is therefore expected to be as follows.

Navitas, a publicly traded partnership, is actively engaged in offshore oil and gas exploration and production, with a portfolio of established oil and gas assets primarily in North America (U.S. Gulf of America) and the South Atlantic (Falkland Islands). The partnership's flagship production asset is the Shenandoah deepwater field in the U.S. Gulf, where Navitas holds a 49-per-cent WI and which reached first production in July, 2025. Navitas has also demonstrated its ability to advance complex offshore developments efficiently toward first oil, achieving FID (final investment decision) on the Sea Lion development in the Falkland Islands in December, 2025. In January, 2026, Navitas further expanded its South Atlantic footprint through the execution of an agreement to acquire a 65-per-cent WI in the PL001 North Falkland basin licence, alongside Eco (Atlantic)'s planned acquisition of JHI Associates to secure the remaining 35-per-cent interest. The strategic framework between Eco (Atlantic) and Navitas is intended to create a highly complementary partnership, combining Navitas's proven offshore exploration, development and production capabilities with Eco (Atlantic)'s diversified portfolio of high-impact exploration acreage, providing a strong platform to organically expand and grow a long-term exploration and production portfolio.

Gil Holzman, president and chief executive officer of Eco (Atlantic), commented: "We are incredibly excited about the successful exercise of the Block 1 CBK option by Navitas, marking a significant advancement of our strategic relations. This quick exercise of the option not only strengthens the bond between Eco and Navitas but also propels us toward a promising future in South Africa's offshore oil and gas landscape and puts us in an active and enhanced exploration mode. Eco and Navitas's technical and operational teams have been working closely to analyze this block and the wider region along with other assets and areas of interest. Together, we are primed to leverage our combined expertise and resources to maximize our potential in the region and beyond.

"Importantly, this agreement not only adds cash to our strong balance sheet, but more importantly signifies the continued progress Eco has made in advancing its projects. Building on our recent farm down to BP in Namibia, we have now further deepened our strategic partnership with Navitas, working not only in South Africa but also in highly prospective acreage offshore the Falkland Islands in PL001, which Eco will gain further exposure to upon the upcoming completion of our acquisition of JHI Associates Inc. Additionally, Navitas also holds options to acquire 80 per cent of Eco's interests in the Guyana Orinduik block where we are progressing advanced discussions with the government over the terms of the next exploration and appraisal stages, offering scope for our partnership to extend further. Over all, these milestones highlight how Eco has successfully executed its strategy of derisking its portfolio of world-class assets through partnering with carrying, Tier 1 operators across the Atlantic Margins."

About Eco (Atlantic) Oil & Gas Ltd.

Eco (Atlantic) is a TSX Venture Exchange- and Alternative Investment Market-quoted, Atlantic Margin-focused oil and gas exploration company with offshore licence interests in Guyana, Namibia and South Africa. Eco aims to deliver material value for its stakeholders through its role in the energy transition to explore for low-carbon-intensity oil and gas in stable emerging markets close to infrastructure.

In offshore Guyana, in the proven Guyana-Suriname basin, the company operates a 100-per-cent working interest in the 1,354-square-kilometre Orinduik block. In Namibia, the company holds operatorship and an 85-per-cent working interest in three offshore petroleum licences (PELs 97, 99 and 100), representing a combined area of 22,893 square kilometres in the Walvis basin. In offshore South Africa, Eco holds a 5.25-per-cent working interest in Block 3B/4B and a 75-per-cent operated interest in Block 1 CBK, in the Orange basin, totalling approximately 37,510 square kilometres.

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