Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD. - BEETALOO OPERATIONAL UPDATE - STIMULATION CAMPAIGN & REMAINING SHENANDOAH SOUTH PILOT PROJECT

Falcon Oil & Gas Ltd. has noted the press releases from Tamboran Resources Corp. issued on May 13, 2025. Tamboran's announcements confirmed:

• The commencement of flow testing at the Shenandoah S2-2H ST1 well in the Beetaloo subbasin, Northern Territory, Australia;
• Agreements entered to complete a $55.4-million (U.S.) private placement and a $15-million (U.S.) asset sale (at $150 (U.S.) per acre) to provide Tamboran with necessary financing to drill three wells commencing in mid-2025 and stimulate four wells (including the Shenandoah S2-4H well drilled late last year) in a single campaign planned for late 2025/first half of 2026 subject to joint venture approval;
• The finalization of the checkerboard of the joint acreage position across exploration permits 76, 98 and 117 between Tamboran and Daly Waters Energy LP (DWE).

Key points to note:

SS-2H ST1:

• Flow testing of SS-2H ST1 has commenced after a longer soaking period following analysis of wells across the Beetaloo subbasin, allowing water to imbibe into the rock, increasing the formation's relative permeability to gas.
• The IP30 (initial production over 30 days) flow test is expected to be announced in June, 2025, and testing is planned to continue for a full 90 days, subject to weather or unforeseen events.

Checkerboard:

• Tamboran and DWE have signed a binding agreement to finalize the checkerboard of their joint acreage across the three exploration permits: EPs 76, 98 and 117.
• Both parties will hold operated working interest areas at 77.5 per cent (except in the two smaller areas, which are the subject of the sale of 100,000 acres by Tamboran to DWE), with Falcon Oil & Gas Australia Ltd. having the remaining 22.5-per-cent non-operating interest across the wider acreage.
• Ownership of the proposed northern pilot area containing 20,309 acres, the focus for initial gas production in the Northern Territory, remains unchanged with Falcon at 5 per cent, Tamboran (operator) at 47.5 per cent and DWE at 47.5 per cent.
• Ownership of the anticipated expansion into the southern pilot area containing 20,309 acres will be Falcon at 22.5 per cent, Tamboran at 38.75 per cent and DWE (operator) at 38.75 per cent.
• Falcon is uniquely placed as the only party with an interest across all checkerboard pieces.

Operator financing for the completion of the Shenandoah South pilot project:

• Tamboran has confirmed that, following the completion of its fundraising, it expects to be fully financed to drill and complete the remaining three wells required to deliver first gas under the Shenandoah South pilot project, with first gas planned for mid-2026.
• Falcon has opted to reduce its interest in these three remaining wells to be drilled to 0 per cent.

Valuation of acreage:

• DWE and Tamboran have entered into a binding agreement, whereby DWE will acquire a non-operating and non-controlling interest across 100,000 acres within two areas of Tamboran's postcheckerboard acreage position for a consideration of $15-million (U.S.), equating to $150 (U.S.) per acre.
• The $150 (U.S.) per acre would translate to a valuation of Falcon's acreage at a minimum of $150-million (U.S.).

Investor Meet

Philip O'Quigley, Falcon's chief executive officer, will conduct a question-and-answer session through the Investor Meet Company platform on May 21, 2025, at 4 p.m. London time, to discuss this press release and comment on the related press releases issued by Tamboran yesterday. The event is open to all existing and potential shareholders. Questions can be submitted before the event through your Investor Meet Company dashboard up until 9 a.m. London time on May 20, 2025, or at any time during the live presentation.

Investors can sign up to Investor Meet Company free of charge and add to meet Falcon Oil & Gas.

Investors who already follow Falcon Oil & Gas on the Investor Meet Company platform will automatically be invited.

Mr. O'Quigley, chief executive officer of Falcon, commented: "We look forward to updating the market on the SS-2H ST1 IP30 flow test results as soon as they become available.

"We are extremely encouraged by the read-through valuation on Falcon's net one million acres from the sale of acreage by Tamboran to DWE and we welcome the completion of the checkerboard, where Falcon is uniquely placed as being the only company with an interest in each of the checkerboard pieces.

"Reducing our participation in the next three wells has an insignificant impact on our overall net acres in the Beetaloo, which remains at circa one million acres, and our interest across the wider acreage remains at 22.5 per cent. This demonstrates the optionality and financial engineering afforded by the drilling and spacing units, which enable Falcon to strategically and efficiently deploy its capital. This reduction in our participation in the next three wells significantly reduces our 2025 capital expenditure whilst at the same time leaving us very well positioned to capture the overall success of the Beetaloo.

"Lastly, we look forward to working with DWE as an additional operator in the Beetaloo."

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 and Daly Waters Energy.

Tamboran Resources is a natural gas company listed on the New York Stock Exchange (symbol: TBN) and Australian Securities Exchange (symbol: 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 United States 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.

We seek Safe Harbor.