Mr. Brian Schmidt reports

TAMARACK VALLEY ENERGY LTD. CLOSES PREVIOUSLY ANNOUNCED SALE OF CHARLIE LAKE ASSETS

Tamarack Valley Energy Ltd. has successfully closed the previously announced sale of its Charlie Lake assets for cash consideration of $804-million, before closing adjustments.

Following the prompt receipt of regulatory approvals, Tamarack and the counterparty completed the transaction two weeks ahead of expectations. The transaction has eliminated Tamarack's net debt, with a portion of the net proceeds initially being utilized to repay amounts drawn under the credit facility. The net proceeds will also support the acceleration of growth and waterflood development activities in the Clearwater. The company expects to exit the second quarter of 2026 in a net cash position of greater than $125-million and available financing of $1.3-billion, including cash on hand of over $400-million and undrawn credit facility capacity of $875-million.

Tamarack is now a pure play Clearwater producer generating approximately 54,000 barrels of oil equivalent per day (92 per cent liquids) of low-cost, high-margin production, holding an extensive inventory of primary drilling and waterflood expansion opportunities in the Clearwater fairway. Together with a strong balance sheet, low corporate decline rate and low free funds flow break-even cost, the company has significant capital allocation flexibility to support higher total shareholder returns across commodity price cycles through a combination of accelerated growth, an enhanced dividend and share buybacks.

Production guidance

The transaction carried an effective date of April 1, 2026, with operating results from the Charlie Lake assets between the effective date and the closing date adjusting the purchase price. For financial reporting, the company's consolidated production and operating results include the Charlie Lake assets up to the closing date. As a result of the accelerated closing date, Charlie Lake production has been crystallized at approximately 8,000 barrels of oil equivalent per day for 2026. Tamarack's 2026 Clearwater production guidance remains unchanged.

About Tamarack Valley Energy Ltd.

Tamarack is a corporation engaged in the exploration, development, production and sale of oil and natural gas in the Western Canadian sedimentary basin. The company has transitioned to become a pure play Clearwater heavy oil producer, currently developing heavy oil positions at Nipisi, Marten Hills and South Clearwater. Tamarack holds an extensive inventory of low-risk oil development drilling locations and is pursuing enhanced oil recovery upside across the company's core asset areas. Tamarack is committed to creating long-term value for its shareholders through sustainable free funds flow generation, financial stability and the return of capital. The company is publicly traded on the Toronto Stock Exchange under the symbol TVE.

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