Mr. Paul Clarke reports

CANCAMBRIA ENERGY ACHIEVES KEY MILESTONES IN KISKUNHALAS JOINT VENTURE PROCESS

Cancambria Energy Corp. has provided an update on its joint venture process for its Kiskunhalas deep tight gas project in southern Hungary.

Cancambria's previously announced JV farmout process for an up-to-50-per-cent interest in its 32,604-net-acre, drill-ready Ba-IX mining licence, led by Raiffeisen Bank International AG and announced Oct. 16, 2025, has made substantial progress, with prospective strategic partners identified following investor outreach and full engagement process under confidentiality agreements. As the JV process has progressed through multiples stages of technical, commercial and stakeholder engagement, the timeline has extended beyond the company's initial expectations due to a combination of industry, macroeconomic and domestic factors, including the Hungarian parliamentary elections held on April 12, 2026, and the subsequent installation of a new government on May 9, 2026.

Technical project assessment by the interested parties has been completed, a critical step in the due diligence process. Commercial negotiations are continuing, with the objective of executing a formal non-binding term sheet on the basis of which to proceed with finalizing due diligence, negotiating and signing long-form transaction documentation and respectively closing the transaction during 2026.

Subject to the successful completion of the JV process and the satisfaction of all required conditions and approvals, Cancambria anticipates that initial drilling activities could commence in first quarter 2027. The company's expectation for first gas production remains unchanged, with production targeted for mid-2027.

"The advancement of our JV process marks an important step toward the development and commercialization of what we believe is one of the most significant undeveloped tight gas opportunities onshore Europe," said Dr. Paul Clarke, president and chief executive officer. "The completion of technical assessment and advancement to commercial negotiations represent important milestones in unlocking the value of the Kiskunhalas project. We are increasingly focused on converting the strong industry interest we have seen into a strategic partnership that accelerates development while maximizing value for our shareholders. Our expected timeline to first gas production in 2027 remains unchanged, and we look forward to providing further updates as the process advances."

While there can be no assurance that the JV process will result in a transaction closing, given the meaningful progress made to date, the company sought to update the market with these developments. Any potential transaction remains subject to, among other things, the negotiation and execution of definitive agreements, including a joint operating agreement, customary regulatory approvals and the satisfaction of other commercial conditions. The company reserves the right to modify, suspend or terminate the process at any time, and makes no representation that a transaction will be completed within the anticipated timeline or at all. Cancambria remains committed to advancing the JV process and will provide additional updates as further information becomes available.

About Cancambria Energy Corp.

Cancambria is a Canadian-based exploration and production company specializing in tight gas development. With a globally experienced leadership team, Cancambria focuses on high-quality, derisked projects with direct access to profitable markets. Leveraging the industry's most advanced technologies, the company aims to commercialize its flagship asset, the 100-per-cent-owned Kiskunhalas project in southern Hungary, a significant gas-condensate resource in the heart of Europe.

We seek Safe Harbor.