Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD. - APPROVAL GRANTED BY NORTHERN TERRITORY GOVERNMENT FOR THE BENEFICIAL USE OF GAS AGREEMENT

Approval has been secured by Falcon Oil & Gas Australia Ltd's (a subsidiary of Falcon Oil & Gas Ltd.) joint venture partner Tamboran (B2) Pty. Ltd. from the Northern Territory government (NTG) for the beneficial use of gas agreement. This approval allows for the sale of appraisal gas from the Shenandoah South pilot project.

Points to note:

• The NTG approval allows the BJV partners to sell appraisal gas from EP98 in the Beetaloo subbasin under the beneficial use of gas (BUG) legislation.
• This is the first approval granted by the NTG under the new BUG legislation.
• The BJV partners now hold all necessary approvals to sell gas from the Shenandoah South pilot project.
• The BJV partners recently signed the beneficial use of gas agreement with the native title holders. The agreement permits the BJV partners to sell appraisal gas of up to 60 terajoules per day from the pilot project over a three-year period, subject to the agreement's terms.
• The BJV partners have contracted an initial 40 million cubic feet per day to supply the NTG until mid-2041, which is expected to provide energy security for the Northern Territory.
• This paves the way for construction of the $140-million (Australian) Sturt Plateau compression facility (SPCF). Falcon has no cost exposure in the construction of the SPCF.
• Commencement of gas sales to the NTG through the SPCF is expected in mid-2026, subject to weather conditions and final stakeholder approvals.
• Work begins this month on the Northern Territory's first-ever Beetaloo pipeline, with APA Group investing $70-million (Australian) to deliver the 37-kilometre Sturt Plateau pipeline.

2025 drilling campaign

The 2025 drilling campaign continues to progress with the intermediate section of all three wells (S2-1H, S2-3H and S2-5H) successfully drilled. The horizontal section of the S2-5H well in the Amungee B shale is currently being drilled. The campaign is the first multiwell drilling program implementing batch drilling in the Beetaloo basin.

As previously announced, Falcon Australia has no cost exposure to the drilling of these three wells as it opted to reduce its participating interest in the three wells to 0 per cent.

Stimulation of the S2-4H well, in which Falcon has a 5-per-cent interest, is planned for Q4 2025.

Philip O'Quigley, chief executive officer of Falcon, commented: "It is great to see this increased activity in the Beetaloo with not only the batch drilling of three new wells but also the start of construction by APA on the 37-kilometre Sturt Plateau pipeline and the continuation of the work on the Sturt Plateau compression facility by our BJV partner, Tamboran (B2) Pty. Ltd."

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 LP 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.

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