Mr. Cameron MacDonald reports

DECIMUS OIL ANNOUNCES NON-BROKERED FINANCING

Decimus Oil Corp. has arranged a non-brokered private placement offering of up to 42.5 million units at a price of eight cents per unit for aggregate gross proceeds of up to $3.4-million.

Each unit will consist of one common share of the company and one-half of one common share purchase warrant. Each whole warrant issued under the financing will entitle the holder to acquire one additional common share at a price of 12 cents for a period of 12 months from the date of issuance. The warrants will include an acceleration clause to the effect that if at any time the daily volume weighted average closing price of the common shares on the TSX Venture Exchange is 15 cents or more for a period of 10 consecutive days, the company will be entitled to notify all holders of warrants of its intention to force the exercise of the warrants and to issue a news release to such effect, following which the holders of warrants shall have 30 days from the date of the news release to exercise the warrants. All the common shares and warrants issued in connection with this financing will be subject to a statutory four-month-plus-one-day hold period in accordance with applicable securities laws.

The company reserves the ability to pay a finder's fee of up to 8 per cent of the gross proceeds of the financing. Closing of this private placement is subject to receipt of approval from the TSX Venture Exchange.

"This financing will further position Decimus to execute on its most profitable capital projects all focused in Southern Alberta, aimed at increasing production to over 400 boe/d, representing a plus-125-per-cent increase over existing Q2 2025 production, while also adding material value to the company's net asset value," said Cameron MacDonald, president and chief executive officer.

Capital budget

The proceeds raised from this financing will be used to complete the following capital activities and for general working capital purposes:

• Murray Lake: drill 1.0 net Mannville stepout well, which is estimated to cost $1.0-million and will contribute approximately 75 to 90 barrels of oil equivalent per day (boe/d) (97 per cent oil), significantly increasing current field production from 35 boe/d to well over 100 boe/d and increasing field net operating margins per boe;
• Bantry acquisition: in connection with the Bantry acquisition announced Oct. 28, 2025, the company estimated the reactivation and repair cost to reactive both fields (Brooks Namaka) will be approximately $550,000. Upon reactivation of both fields, the acquired assets will contribute approximately 100 to 135 boe/d (100 per cent gas);
• Vulcan: further expand the Vulcan 5-21 multiwell facility for a cost of approximately $96,000 to further upgrade onsite storage, custom treating, water disposal and handling capabilities to service a new third party agreement to handle between 40 to 70 cubic metres fluid per day, which will more than double current volumes and third party processing income;
• Parkland: complete 1.0 net vertical re-entry into the upper Bow Island formation at its Parkland property, which is estimated to cost $65,000, which will contribute approximately 40 to 50 boe/d (100 per cent gas).

When combining the current base production of 176 boe/d (as of Q2 (second quarter) 2025) to the low-risk projects above, the company estimates corporate production could increase to approximately 400 boe/d. This production increase will materially reduce corporate fixed costs per boe and improve overall netbacks and cash flows. It is anticipated that the company's capital efficiency from the capital program will be approximately $15,200 per flowing boe/d.

It is possible that insiders of the company may participate in the offering and the company will be relying on the exemption from the formal valuation and minority shareholder approval requirements pursuant to sections 5.5(a) and 5.7(1)(a) of Canadian Multilateral Instrument 61-101, Protection of Minority Shareholders in Related Party Transactions, as neither the fair market value of any securities issued to nor the consideration paid by such person could exceed 25 per cent of the company's market capitalization.

About Decimus Oil Corp.

Decimus Oil is engaged in the acquisition, development and production of oil and gas in the Western Canadian sedimentary basin. The company is focused on Mannville development in Southern Alberta, where it is advancing its low-risk acquisition strategy, paired with deploying modern completion techniques to expose its underexploited drilling opportunities to unlock significant resource in place.

We seek Safe Harbor.