Mr. Mike Adams reports

NEW ZEALAND ENERGY CORP. ENTERS INTO FUNDING AGREEMENT TO INCREASE PRODUCTION AT WAIHAPA-NGAERE

New Zealand Energy Corp. has entered into a definitive financing agreement with Monumental Energy Corp., effective Jan. 12, 2026, with regard to the area covered by New Zealand Energy's 50-per-cent interest in PML 38140 and PML 38141 located in onshore Taranaki, New Zealand. The agreement will enable Monumental to finance certain mutually agreed-upon workover projects with New Zealand Energy to increase oil and gas production from the licences.

In consideration for Monumental providing financing for New Zealand Energy's share of any project, New Zealand Energy grants to Monumental a royalty applicable to such project, effective upon satisfaction of all conditions precedent and commencement of production. The initial royalty will be payable in an amount equal to 75 per cent of net receipts, on a quarterly basis, until such time as a sum equal to the costs that have been paid by Monumental has been paid back, and, thereafter, the final continuing royalty will commence and will be payable by New Zealand Energy to Monumental in an amount equal to 25 per cent of net receipts.

The Ngaere 1 project, which adds a new producing zone to the well, is expected to commence in first quarter 2026, subject to the satisfaction of the conditions precedent under the agreement that includes the final approval of the TSX Venture Exchange of the agreement, the applicable consent of the Minister in New Zealand in accordance with the New Zealand Crown Minerals Act 1991, and the availability of the requisite equipment and personnel to carry out the necessary work.

The agreement is subject to approval by the TSX-V as this transaction involves a non-arm's-length party as Bill Treuren is a director of both the company and Monumental.

About New Zealand Energy Corp.

New Zealand Energy is a publicly listed energy company focused on the development of oil, gas and gas storage opportunities in New Zealand. The company holds interests in multiple heritage assets and development-stage projects, including the Tariki gas storage project in Taranaki. With a 50-per-cent ownership stake in the Waihapa production station, the company can quickly tie in any near-term production and sell directly to market.

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