Mr. Archie Nesbitt reports

MARKSMEN ANNOUNCES NON-BINDING LETTER OF INTENT

Marksmen Energy Inc. has entered into a non-binding letter of intent (LOI) with Axiom Oil and Gas Inc. to form a strategic alliance focused on the development, optimization, and acquisition of oil and natural gas assets.

Marksmen is a publicly listed oil and gas company active primarily in the Appalachian basin in the United States. Axiom is a private Alberta oil and gas company with existing production and an experienced operating and technical team.

On Aug. 7, 2026, Marksmen announced a private placement of up to $1.38-million, including up to $1-million intended to acquire interests in Alberta oil and gas properties. Marksmen can now confirm that Axiom is the private Alberta producer referenced in that announcement.

Marksmen Energy and Axiom Oil and Gas executed a non-binding letter of intent under which Marksmen will use the proceeds of the private placement to finance service rig and pipeline work to restore and improve production at approximately 15 suspended Axiom wells requiring mechanical repairs. In return, Marksmen will earn a gross overriding royalty (GORR) in a property owned and operated by Axiom, potentially Harmattan. The specific GORR percentage, applicable lands and wells, will be agreed upon and documented prior to the deployment of capital. Axiom will manage and supervise the workover program utilizing its existing operating and technical capabilities.

Marksmen is also evaluating a potential development farm-in opportunity involving certain Axiom lands. Axiom's technical team has identified approximately 50 potential horizontal oil development locations on these lands. Subject to technical and economic evaluation, financing and definitive agreements, Marksmen may earn an 80-per-cent to 85-per-cent working interest in new wells by financing 100 per cent of agreed drilling, completion, equipping and tie-in development costs.

The parties currently contemplate an initial development program of approximately 15 to 25 wells, with the scope, timing and pace of development to be determined based upon technical results, commodity prices, available capital and other relevant considerations. Axiom is expected to manage and supervise the drilling and development programs.

Marksmen and Axiom also intend to work collaboratively to identify, evaluate, and potentially acquire additional producing oil and natural gas assets in Canada and internationally. The strategic alliance is intended to combine Axiom's operating expertise, technical capabilities and industry relationships with Marksmen's public-market platform and access to capital.

Under the LOI, Marksmen will have 135 days from execution to complete the financing, with a minimum financing condition of $1-million. The parties may mutually agree to extend the financing period, accept a lesser amount or otherwise modify or waive the financing condition.

Axiom has agreed to a 135-day exclusivity period covering the workover, farm-in and development opportunities contemplated by the LOI. The exclusivity provisions do not restrict Axiom's ability to pursue a settlement with Tidewater relating to its Brazeau and Manola disputes.

The transactions contemplated by the LOI remain subject to due diligence, definitive agreements, respective board approvals, applicable third party rights, including rights of first refusal, and any required regulatory and TSX Venture Exchange approvals.

We seek Safe Harbor.