Mr. James Evaskevich reports

YANGARRA ANNOUNCES OPERATIONS UPDATE

Yangarra Resources Ltd. has provided an operations update underscoring the continued momentum of its Chambers Belly River development program and the strategic value of its integrated oil field services platform.

Over the past two years, Yangarra has drilled 17 Belly River wells in Chambers, and materially advanced its Chambers Belly River program through a disciplined capital program totalling $58-million for drilling, completions and related land acquisitions. By the end of Q3 2026, the company expects the Chambers Belly River program to have generated $45-million of cash flow, demonstrating the strength of the play. Current Belly River production is 1,450 barrels of oil equivalent per day (72 per cent liquids), and Yangarra has assembled 106 future Belly River drilling locations in Chambers. The company is evaluating a new area that could significantly expand its Belly River inventory and further enhance the depth of its development portfolio.

Yangarra's Belly River development continues to benefit from optimized well design and field operations. A new design with a larger bottom-hole pump delivered 2.5 times the productivity of the prior design on an IP90 (initial production over 90 days) basis in a direct offset comparison. Yangarra is advancing cost-effective initiatives to improve run times and production.

During the third quarter, Yangarra completed farm-in commitments in South Chambers on several Cardium wells. These wells earn both Cardium and Belly River rights and are expected to be completed in the fourth quarter as natural gas prices strengthen into the winter season. The balance of Yangarra's drilling program will continue to prioritize Belly River development and further delineation into West Chambers, supporting the company's focus on scalable, repeatable and capital-efficient growth opportunities.

As global oil prices strengthen and industry activity increases, Yangarra believes it is well positioned to benefit from the competitive advantage provided by its in-house oil field services group (OFS group). In an environment characterized by rising field service costs and tighter access to equipment and personnel, the OFS group enhances Yangarra's cost control, execution certainty and operational flexibility. As industry investment accelerates, this integrated platform will mitigate inflationary pressures, preserve the company's cost advantage and support efficient execution of its development plans.

We seek Safe Harbor.