Mr. Jim Hill reports

MCF ENERGY PROVIDES OPERATIONS UPDATE

MCF Energy Ltd. has provided a continuing operations update for the company projects.

Czech Republic

The company currently holds 6,880 acres in three production licences with three drilled wells and 42,551 acres in three exploration concessions in the Czech Republic. The company is currently working to return two of the three wells back to production: NP-823 and LM-3 wells. The necessary production equipment has been moved onto the NP-823 well and is currently waiting on inspection before starting production. First production is anticipated in February. The LM-3 well is a discovery well that has not been produced due to lack of pipeline hookup. Gas production from this well is anticipated to begin in April with the installation of a gas-powered generator to provide power to both data centres and bitcoin mining units. Excess power is planned to be sold into the local power grid. The third well, NT-2, is being inspected and repairs done before the well is returned to production.

Plans to continue exploration on the company's three exploration concessions are being developed with some proven undeveloped locations already identified for drilling.

Germany

Lech concession

Construction of the Kinsau No. 1A drill site continues with completion estimated in early March. Weather conditions has slowed progress, but the completion is still well ahead of schedule.

Lech East concession

The first Lech East drill site has been selected and surface lease negotiated and contracted. Environmental studies have been completed and submitted to relevant authorities for approval. The next stage is to begin well planning and drill site construction plans.

Reudnitz gas field

Phase 1 production testing is complete with an established stable flow rate of over one million cubic feet per hour. Phase 2 will begin in February with additional stimulation and production facilities to improve flow rates. Lime Petroleum paid the company 500,000 euros for an option to farm for 80 per cent of the Reudnitz licence for an additional 5.5 million euros of carried expenditure to achieve production.

Austria

Welchau-1

The Welchau-1 well drilled by MCF (as to a 25-per-cent economic interest) and the operator ADX Energy Ltd. continues to be monitored to evaluate the rate of pressure buildup with a view to determining the nature of fluid flow into the well before a decision is taken whether to stimulate the well and continue testing operations.

A court decision in Austria has repealed an article of an Austrian environmental law, the effect of which is being evaluated by operator ADX Energy and its Austrian counsel in consultation with local authorities to assess its impact on further testing operations. It is likely that further testing may be suspended pending clarification and resolution of the impact of the Austrian court decision. The court made no determination in relation to the Welchau-1 natural gas exploration well or the validity of nature conservation permits issued for drilling and testing.

About MCF Energy Ltd.

MCF Energy was established in 2022 by leading energy executives to strengthen Europe's energy security through responsible exploration and development of natural gas resources within the region. The company has secured interests in several significant natural gas exploration projects in Austria and Germany with additional concession applications pending. MCF Energy is also evaluating additional opportunities throughout Europe. The company's leaders have extensive experience in the European energy sector, and are working to develop a cleaner, cheaper and more secure natural gas industry as a transition to renewable energy sources. MCF Energy is a publicly traded company and headquartered in Vancouver, B.C.

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