Mr. Dan Brown reports

WESTGATE ENERGY COMMENCES FALL DRILLING PROGRAM AND PROVIDES CORPORATE UPDATE

Westgate Energy Inc. has provided an update on its fall 2026 drilling program at its Killam and Beaverdam assets along with certain other corporate matters.

Fall 2026 drilling program update

Westgate has commenced its previously announced fall drilling program, beginning with a multilateral well targeting the Sparky formation at the company's Killam asset. The well will be drilled as an offset to the Westgate 11-21 well, which has been the strongest-performing well at Killam to date. The new well is designed to incorporate approximately 9,600 metres of total lateral length, compared with approximately 5,400 metres in the 11-21 well, and will incorporate design considerations to accommodate potential future waterflood development.

The second well in the program will be drilled at the company's Beaverdam asset and will involve the re-entry and sidetrack of the previously drilled C3S well. As previously disclosed, the original C3S well encountered excellent reservoir quality and encouraging oil shows highly comparable with those observed in the offsetting C2S horizontal well. However, a mechanical failure of the production liner severely restricted reservoir inflow, and the well was subsequently shut in. The planned C3S sidetrack will be drilled parallel to the C2S horizontal, which is the best Beaverdam well drilled by the company to date.

Drilling operations are expected to continue through November, followed by completion and tie-in activities, with both wells anticipated to commence production in late November, 2026.

Management commentary and future drilling

Westgate is currently advancing plans for a follow-up two-well drilling program at its Beaverdam asset, targeted for the first quarter of 2027. The proposed program is expected to further develop the company's Mannville Stack oil resource, with a focus on expanding production and advancing the long-term development of the asset. Additional details regarding the wells and timing will be provided as planning progresses.

Long-term incentive grants

The company's board of directors has approved grants of an aggregate of 3,035,000 incentive stock options to certain officers, directors, employees and consultants of the company; an aggregate of 1,355,000 restricted share units (RSUs) to certain officers and employees of the company; and an aggregate of 100,000 deferred share units (DSUs) to directors of the company. The awards have been granted pursuant to the terms and conditions of Westgate's second amended and restated omnibus equity compensation plan, approved by the shareholders at the most recent annual meeting of shareholders held on July 21, 2026, and which is subject to the policies of the TSX Venture Exchange.

Prior to this grant of awards, there were 4,569,000 options, 1,878,500 RSUs and 166,000 DSUs outstanding. The issuance of the awards was recommended by the governance, compensation and nomination committee, with specific details of the awards as follows:

• Options: The options granted are exercisable into common shares of the company at a price of 25 cents per common share, vest over a three-year period in increments of 33 per cent every 12 months and have a term of five years with expiry on Oct. 19, 2031.
• RSUs: RSUs vest over a two-year period, with 50 per cent vesting on the 12-month anniversary and 25 per cent vesting every six months thereafter.
• DSUs: The DSUs vest over a two-year period, with 50 per cent vesting on the 12-month anniversary and 25 per cent vesting every six months thereafter. Each DSU entitles the holder to receive one common share of the company at the time the holder ceases to be a director of Westgate.

Notwithstanding the ability of the company to settle RSUs or DSUs in common shares, Westgate may, at its discretion, permit applicable participants to elect to receive an amount in cash (net of applicable withholding taxes) equal to all or a portion of the vested RSUs or DSUs and related dividend equivalents (as defined in the omnibus plan, if any) being settled by the participant, multiplied by the five-day volume-weighted average trading price of the common shares as at the applicable settlement date.

The omnibus plan's objective is to provide Westgate with a mechanism to attract, retain and motivate talent, promote share ownership of eligible individuals to align their interests with the interests of the company's shareholders and enable and encourage eligible individuals to participate in the long-term growth and success of the company.

Insider participation on LIFE (listed issuer financing exemption) offering

On Sept. 29, 2026, the company announced that it had closed its bought deal private placement offering of 27.54 million units of the company at a price of 25 cents per unit for aggregate gross proceeds to the company of $6,885,000. Daniel Brown, chief executive officer of the company, together with other significant shareholders of the company (the insiders), participated in the offering, along with strategic investors, institutional investors and high-net-worth individuals. Insiders are considered related parties of the company for the purposes of applicable securities laws and stock exchange rules. The subscription and issuance of units by the insiders constitute related party transactions but are exempt from the formal valuation and minority approval requirements of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, as neither the fair market value of the units issued to each of the insiders nor the consideration paid by such insiders, exceeds 25 per cent of the company's market capitalization. The company did not file a material change report more than 21 days before the expected closing of the offering because the details of the participation therein by the insiders were not settled until shortly prior to closing of the offering and the company wished to close on an expedited basis for business reasons.

Investor relations services

Effective Oct. 23, 2026, Westgate has entered into a consulting agreement with Athena Capital Markets Ltd., pursuant to which Athena will provide investor relations services to the company for a term of six months. Under the terms of the consulting agreement, Athena will receive aggregate cash compensation of $50,000 at a rate of $8,333.33 per month. In addition, the company has agreed to grant Athena 200,000 share purchase options with an exercise price of 25 cents. The consulting agreement may be terminated by Westgate at any time upon written notice to Athena and there are no performance factors contained in the consulting agreement. Pursuant to the consulting agreement, Athena will provide investor relations support services, provide assistance in implementing advertising campaigns, and produce and disseminate monthly marketing articles. Athena is a financial and strategic advisory merchant bank based in Calgary, Alta., specializing in energy and diversified growth sectors. Athena does not own any securities of Westgate and, other than the options, does not have any right to acquire securities of the company. The consulting agreement remains subject to approval by the TSX-V.

About Westgate Energy Inc.

Westgate is focused on the emerging Mannville Stack fairway located in northeastern Alberta and west-central Saskatchewan, a region with established medium and heavy oil accumulations. Producers in this fairway are increasingly unlocking these reservoirs with modern horizontal drilling and completion techniques, which have materially improved well performance and capital efficiency. Activity to date has delivered some of the strongest oil well economics in Western Canada.

We seek Safe Harbor.