Mr. Angel Roa reports

LNG ENERGY GROUP PROVIDES OPERATIONAL UPDATE

LNG Energy Group Corp. has provided an update on its operations and recent corporate developments.

Colombia production and realized prices

During the first half of 2026, daily production averaged approximately 5,449,000 cubic feet per day of natural gas and 36 barrels per day of condensate. Compared with the first half of 2025, natural gas and condensate volumes declined by 59 per cent and 50 per cent, respectively. In the second quarter of 2026, natural gas production averaged 5,102,000 cubic feet per day and oil production 26 barrels per day, reflecting a decline of 12 per cent and 24 per cent, respectively, compared with the first quarter of 2026. Over the same period, the company realized average sales prices of approximately $9 (U.S.) per Mcf of natural gas and $78.40 (U.S.) per barrel of crude oil.

Average daily production and prices for 2024, 2025 and 2026 were as follows.

Productivity in key wells declined due to unforeseen subsurface conditions that resulted in casing obstructions, restricting repair and maintenance activities. However, the original gas in place appears to remain unaffected. Average natural gas sales prices improved as the company strengthened contract management practices.

These operational results are being disclosed within the company's remedial filing plan in connection with the company's failure-to-file cease trade order issued by the Ontario Securities Commission on May 7, 2025.

Colombian operations -- reorganization under Law 1116

The company's Colombian branch has emerged from the Proceso de Recuperacion Empresarial as regulated under Colombia Law 1116 of 2006 (as modified by Law 2437 of 2024), for insolvency protection, with a reorganization agreement that has been approved by more than 70 per cent of all credit categories, including over 90-per-cent employee support. The company's Colombian branch was additionally admitted to judicial validation of the agreement before the Superintendencia de Sociedades (the Superintendency of Corporations) on Oct. 23, 2025. The agreement contemplates a staggered repayment schedule, starting on the date of final judicial validation, of the different credit classes over 39 quarters (final maturity around 2034), with allowance for accelerated payments, should this be a possibility. Admittance to judicial validation of the agreement grants the company's Colombian branch the continuity of the protections provided by the PRES.

Venezuela operations joint venture

As announced in its news release dated May 26, 2026, the company continues to advance the previously disclosed proposed joint venture. The parties remain engaged in due diligence and negotiation of definitive documentation, and the company will provide further updates as material developments occur.

Private placement financing and cease trade order

As announced in its news release dated May 1, 2026, the company continues to advance its previously announced non-brokered private placement financing following issuance of a partial revocation order from the Ontario Securities Commission on April 23, 2026. The proceeds and completion of the financing, together with the company's continuing remedial filing efforts, are intended to support the full revocation of the FFCTO which currently prohibits all trading of the company's securities. Completion of the financing remains subject to customary conditions, including TSX Venture Exchange acceptance.

Drilling capital and insurance claim

The company is engaged in continuing discussions with its insurers regarding the evaluation and potential resolution of an outstanding insurance claim in relation to its Colombian properties. These discussions contemplate a potential payout that, if realized, will provide financing to drill well(s) in its Colombian properties.

There can be no assurance that the proposed agreement and/or joint venture will be completed on the terms contemplated, or at all, and of the outcome, quantum or timing of any payout.

About LNG Energy Group Corp.

The company is focused on the acquisition and development of oil and natural gas production and exploration assets in Latin America.

We seek Safe Harbor.