Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD. - OPERATIONAL UPDATE ON THE STIMULATION CAMPAIGN

Falcon Oil & Gas Ltd. has provided the following update on the stimulation campaign for the Shenandoah S2-2H ST1 (SS-2H ST1) and Shenandoah South 4H (SS-4H) wells in the Beetaloo subbasin in the Northern Territory, Australia, with Falcon Oil & Gas Australia Ltd.'s joint venture partner, Tamboran (B2) Pty. Ltd. (the operator).

SS-2H ST1:

• As previously announced, stimulation operations were successfully completed over 35 stages across the 1,671-metre (5,483-foot) horizontal section of the Amungee member B-shale with Liberty Energy stimulation equipment;
• The SS-2H ST1 well is being prepared for the commencement of initial flowback and extended production testing;
• Targeting announcement of 30-day initial production (IP30) flow rates in April, 2025.

SS-4H:

• Commenced stimulation operations in January, 2025;
• The operator took pro-active and precautionary steps to pause completion operations due to the detection of stress in a casing connection;
• Reinforcement activities are planned to be conducted in Q1 2025, aiming for stimulation activities to recommence in Q2 2025, as soon as the IP30 flow test is completed at SS-2H ST1;
• The deferred stimulation program should provide an opportunity to incorporate lessons from the SS-2H ST1 campaign;
• Targeting announcement of IP30 flow rates in mid-2025.

Working capital:

• Falcon Australia has received a $4.7-million (Australian) (approximately $3-million (U.S.)) research and development tax offset in cash.
• The group's current cash balance is $8.2-million (U.S.).

Philip O'Quigley, chief executive officer of Falcon, commented: "We continue to be extremely encouraged about the potential of the current stimulation program based on strong gas shows and other data observed whilst drilling, together with the completion of a successful stimulation program on SS-2H ST1 well. We look forward to updating the market on the IP30 flow test results from both wells as soon as they become available."

This announcement has been reviewed by Dr. Gabor Bada, Falcon Oil & Gas's technical adviser. Dr. Bada obtained his geology degree at the Eotvos L. University in Budapest, Hungary, and his PhD at the Vrije Universiteit Amsterdam, the Netherlands. He is a member of the American Association of Petroleum Geologists (AAPG).

About Falcon Oil & Gas Ltd.

Falcon Oil & Gas is an international oil and gas company engaged in the exploration and development of unconventional oil and gas assets, with the current portfolio focused in Australia. Falcon Oil & Gas is incorporated in British Columbia, Canada, and headquartered in Dublin, Ireland.

Falcon Oil & Gas Australia is an approximately 98-per-cent subsidiary of Falcon Oil & Gas.

About Tamboran (B2) Pty. Ltd.

Tamboran (B1) Pty. Ltd. is the 100-per-cent holder of Tamboran B2, with Tamboran B1 being a 50/50 joint venture between Tamboran Resources Corp. and Daly Waters Energy LP.

Tamboran Resources is a natural gas company listed on the New York Stock Exchange (TBN) and Australian Securities Exchange (TBN). Tamboran is focused on playing a constructive role in the global energy transition toward a lower-carbon future by developing the significant low-carbon-dioxide gas resource within the Beetaloo basin through cutting-edge drilling and completion design technology as well as management's experience in successfully commercializing unconventional shale in North America.

Bryan Sheffield of Daly Waters Energy is a highly successful investor and has made significant returns in the U.S. unconventional energy sector in the past. He was founder of Parsley Energy Inc., an independent unconventional oil and gas producer in the Permian basin in Texas, and previously served as its chairman and chief executive officer. Parsley Energy was acquired for over $7-billion (U.S.) by Pioneer Natural Resources Company.

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