Mr. Philip O'Quigley reports

FALCON OIL & GAS LTD. - STELLAR IP20 FLOW TEST RESULT IN THE BEETALOO

Falcon Oil & Gas Ltd.'s Shenandoah SS2-1H has achieved an average 20-day initial production (IP20) flow rate of 10.3 million cubic feet per day (MMcf/d) over 2,632 metres (8,635 feet) across a 57-stage stimulated length within the Amungee Member B-Shale in the Beetaloo subbasin, Northern Territory, Australia.

Points to note:

• The normalized flow rate of 11.9 MMcf/d over an extrapolated 10,000-foot horizontal section compares favourably with the average performance of more than 11,000 producing wells in the Marcellus shale dry gas fairway with over 12 months of production history.
• The exit rate trajectory continues a steady, low-declining curve at 8.8 MMcf/d (normalized at 10.2 MMcf/d per 10,000 feet) with a flowing wellhead pressure of approximately 580 psi (pounds per square inch). The steady-state decline curve on SS2-1H is consistent with that achieved from the Shenandoah SS2-2H ST1.
• Testing has been intentionally curtailed to avoid unnecessary flaring and carbon emissions and preserve reservoir energy ahead of tie into the Sturt Plateau compression facility (SPCF) and the commencement of gas sales in Q3 2026.
• The 2026 stimulation campaign for the Shenandoah South 3H, 4H and 5H wells is planned to commence in the second quarter, with all three wells expected to be tied into the SPCF and brought into production during Q3 2026.
• As previously announced, Falcon Australia opted to reduce its participating interest in the three wells drilled in 2025 to 0 per cent (which includes the SS2-1H well), with no cost exposure.
• For further details on the SS2-1H flow test please refer to Appendix A.

Philip O'Quigley, chief executive officer of Falcon, commented:

"The IP20 flow rate results announced today of 10.3 MMcf/d, is another positive development as we move towards commercial production. As further results become available, we look forward to updating the market."

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 Ltd. is a 98-per-cent subsidiary of Falcon Oil & Gas.

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