New Stratus Power Pronounces Execution of Definitive Farm-Out Settlement with Vultur Oil

New Stratus Power Inc. (TSXV: NSE,OTC:RDRIF) (“New Stratus”, “NSE” or the “Company”) is happy to announce the signing of the definitive farm-out settlement (“FOA”) in respect of the beforehand introduced memorandum of understanding with Vultur Oil (“Vultur”), to develop the Concession Contracts (as outlined under) situated within the State of Bahia, Brazil.

Concession Contracts

The Blocks comprise two (2) concession contracts for the exploration, growth and manufacturing of oil and gasoline, being: (i) N° 48610.010812/2015-04 issued by the Nationwide Company of Petroleum, Pure Fuel and Biofuels of Brazil (“ANP”) dated December 23, 2015, over a block referred to as REC-T-108 (the “108 Contract”); and (ii) N° 48610.005425/2013-86 issued by the ANP dated August 30, 2013, over a block referred to as REC-T-107 (the “107 Contract” and along with the 108 Contract, the “Concession Contracts” or “Blocks”). Vultur holds a 100% working curiosity within the Concession Contracts.

The Concession Contracts are situated within the Reconcavo Basin, situated onshore, within the State of Bahia in japanese Brazil. The Blocks are adjoining to the Araças area which is owned and operated by Petróleo Brasileiro S.A. (“Petrobras”), the state-owned oil firm of Brazil. The three principal reservoirs within the basin are the Candeias, the Agua Grande and the Sergi. Since 2012, Petrobras has produced over 5.9 million barrels of oil equal (boe) (3.6 million barrels of oil and over 375 million cubic meters of pure gasoline) from the Araças area.

FOA Phrases

In accordance with the phrases of the FOA, NSE and Vultur (the “Joint Companions”) have executed a definitive settlement offering for, amongst different issues, the task and switch to NSE of as much as a thirty-two level 5 % (32.5%) working curiosity within the Concession Contracts (the “NSE Working Curiosity”); and can now finalize a joint working settlement (the “JOA”) for the event of the Concession Contracts.

Vultur will now submit the task approval utility to the Brazilian Nationwide Petroleum Company (“ANP”) to allow the funding by NSE. With approval, which is anticipated by the top of 2025, closing of the deal will happen (the “Closing”) and the preliminary fifteen % (15%) working curiosity might be transferred to NSE. The remaining seventeen level 5 % (17.5%) working curiosity being transferred on completion of the Second Stage Funding (as outlined under). Upon incomes its working curiosity within the Blocks, NSE will take part in proportion to its working curiosity in any web proceeds from any operations and different earnings associated thereto. Direct capital investments and operational prices are to be borne by the Joint Companions in proportion to their respective working curiosity within the Concession Contracts.

As unique and ultimate consideration for the transactions contemplated by the FOA, NSE might be liable for the next, as described in additional element under beneath the heading “Historic Operations”:

1. At Closing, funding of 5 million US {Dollars} (US$5,000,000), which might be used to develop a horizontal re-entry properly within the present GOP properly and/or a step-out of the present discovery properly at GREN (the “First Stage Funding”). The completion of such properly or intervention is estimated inside 180 days from Closing (the “First Stage Actions”); and

2. Inside 180 days from completion of the First Stage Actions, funding an extra quantity of 5 million US {Dollars} (US$5,000,000), which might be used for drilling of recent lateral wells out of both the GREN or GOP wells (the “Second Stage Funding”).

Reserves

At Closing, the reserves estimates⁽¹⁾ attributable to New Stratus’ 15% working curiosity within the Blocks are as follows⁽²⁾:

• Gross Proved Reserves are estimated at 1.42 million barrels of oil equal (“BOE”) having a before-tax web current worth of future web income at a ten% low cost charge (“NPV10”) of US$15.2 million.

• Gross Proved plus Possible Reserves are estimated at 2.30 million BOE having a NPV10 of US$24.0 million.

Assuming the completion of the Second Stage Funding, the reserves estimates⁽¹⁾ attributable to New Stratus’ anticipated 32.5% working curiosity within the Blocks are as follows⁽²⁾:

• Gross Proved Reserves are estimated at 3.07 million BOE having a NPV10 of US$32.83 million.

• Gross Proved plus Possible Reserves are estimated at 4.98 million BOE having a NPV10 of US$52.0 million.

Notes:

(1) See “Oil and Fuel Advisory”, under.
(2) The working curiosity of New Stratus within the Blocks might be 15% at Closing and 32.5% upon completion of the Second Stage Funding.

The reserves data attributable to the Blocks is efficient as of August 1, 2025 and primarily based on the procedures and requirements contained within the Petroleum Sources Administration System (“PRMS”) of the Society of Petroleum Engineers. The usage of PRMS differs from the reserve data necessities beneath Canadian Securities legal guidelines. See “Oil and Fuel Advisory” under.

Historic Operations

In April of 2025, Vultur efficiently re-entered and hydraulically stimulated the Candeias formation within the GREN properly (initially drilled in 2019), situated within the northern portion of Block REC-T-108. Following the recompletion with an digital submersible pump (“ESP”) synthetic elevate, the properly went right into a long run check. That check has now been accomplished and is awaiting commerciality approval. Previous to the check completion, the properly had produced in extra of 100,000 barrels of 36° API gentle oil, and on Might 30, 2025 previous to the chemical stimulation, manufacturing was roughly 1,000 barrels of oil per day.

Previous to GREN, the earlier proprietor drilled the GOP exploration properly in REC-T-107 in 2017. The properly reached a complete vertical depth of three,300 meters, confirming the presence of hydrocarbons in each the Agua Grande and Sergi major goal formations. The properly was accomplished and examined within the Sergi and between February 2018 and September 2019 the properly demonstrated business portions of sunshine oil. Fashionable horizontal drilling and multistage fracking methods are anticipated to considerably improve charges and restoration components.

In 2021, the earlier proprietor commenced a unitization course of with Petrobras in search of recognition of sure manufacturing from the adjoining Araças area that was being drained from areas inside the Concession Contracts. Vultur stays concerned within the declare and upon incomes of NSE’s working curiosity, web proceeds (if any and after authorized prices) from unitization or equalization shall be distributed equitably in keeping with the working pursuits.

Lastly, in 1956, Petrobras drilled an exploratory properly within the decrease portion of the concession at a location referred to as Progresso encountering pure gasoline. As Petrobras was not prioritizing pure gasoline growth on the time, the properly stay undeveloped, nevertheless over 42 billion cubic toes of pure gasoline has been produced in the identical formations on the offsetting Biriba Concession.

Ahead-Trying Data

Sure data set forth on this information launch constitutes “forward-looking statements”, and “forward-looking data” beneath relevant securities laws (collectively, “forward-looking statements”). All statements aside from statements of historic reality are forward-looking statements. Ahead-looking statements could also be recognized by way of conditional or future tenses or by way of phrases reminiscent of “will”, “expects”, “intends”, “could”, “ought to”, “estimates”, “anticipates”, “believes”, “initiatives”, “plans”, and related expressions, together with variations thereof and destructive kinds. Ahead-looking statements on this information launch embrace, amongst others, satisfaction or waiver of the circumstances of the FOA; the anticipated date of Closing; the phrases and timing of the First Stage Funding and Second Stage Funding; receipt of required authorized and regulatory approvals for the Closing; and the portion of the working curiosity in the end awarded pursuant to the FOA. Ahead-looking statements are primarily based on the Company’s present inner expectations, estimates, projections, assumptions and beliefs, which can show to be incorrect. Ahead-looking statements usually are not ensures of future efficiency and undue reliance shouldn’t be positioned on them.

In respect of the forward-looking statements contained herein, the Company has offered them in reliance on sure key expectations and assumptions made by administration, together with expectations and assumptions in regards to the Closing pursuant to phrases of the Definitive Agreements (together with receipt of all approvals and satisfaction of all circumstances to the completion thereof) on phrases acceptable to the Company or in any respect, the supply of financing on phrases acceptable to the Company, prevailing climate circumstances, prevailing laws affecting the oil and gasoline trade, commodity costs and change charges.

Though NSE believes that the expectations and assumptions on which the forward-looking statements are primarily based are affordable, undue reliance shouldn’t be positioned on the forward-looking statements as a result of NSE may give no assurance that they are going to show to be right. Such forward-looking statements essentially contain identified and unknown dangers and uncertainties, which can trigger precise efficiency and monetary ends in future durations to vary materially from any projections of future efficiency or outcomes expressed or implied by such forward-looking statements. These dangers and uncertainties embrace, however usually are not restricted to: dangers related to the oil and gasoline trade basically (e.g., operational dangers in growth, exploration and manufacturing; the uncertainty of reserve estimates; the uncertainty of estimates and projections referring to manufacturing, prices and bills, and well being, security and environmental dangers); dangers related to in search of required approvals from international governments in addition to nation danger related to conducting worldwide actions; the influence of basic financial circumstances in Canada and Brazil; extended volatility in commodity costs; the chance that the U.S. administration imposes tariffs affecting the oil and gasoline trade in Brazil or globally, and that such tariffs (and/or retaliatory tariffs in response thereto) adversely have an effect on the demand for the Company’s manufacturing, or in any other case adversely have an effect on the Company’s enterprise or operations; the chance that oil costs are decrease than anticipated; determinations by OPEC and different international locations as to manufacturing ranges; the chance of modifications in authorities coverage on useful resource growth; trade circumstances together with modifications in legal guidelines and laws together with adoption of recent environmental legal guidelines and laws, and modifications in how they’re interpreted and enforced; the timing for conducting deliberate operations and the outcomes of such operations, together with circulate charges and ensuing manufacturing; the supply of the requisite personnel and tools to conduct operations; the flexibility to efficiently combine operations and notice the anticipated advantages of acquisitions; the flexibility to extend manufacturing, and the anticipated price related therewith; failure of counterparties to carry out beneath contracts; modifications in foreign money change charges; rate of interest fluctuations; the flexibility to safe sufficient fairness and debt financing; and administration’s capacity to anticipate and handle the foregoing components and dangers.

There could be no assurance that forward-looking statements will show to be correct, and precise outcomes and future occasions might differ materially from these anticipated in such statements. New Stratus undertakes no obligation to replace forward-looking statements if circumstances or administration’s estimates or opinions ought to change besides as required by relevant securities legal guidelines. Precise outcomes, efficiency or achievement might differ materially from these expressed in, or implied by, these forward-looking statements and, accordingly, no assurance could be on condition that any of the occasions anticipated by the forward-looking statements will transpire or happen, or if any of them achieve this, what advantages could also be derived therefrom.

Oil and Fuel Advisory

This information launch consists of reserves data attributable to the Blocks efficient as of August 1, 2025 ready by an inner certified reserves evaluator of Vultur. The reserves estimate is predicated on the procedures and requirements contained within the Petroleum Sources Administration System (“PRMS”) of the Society of Petroleum Engineers, which is the reserves estimation methodology utilized by Vultur. The usage of PRMS differs from the reserves estimation necessities beneath Canadian securities legal guidelines. The reserves estimate offered herein is for informational functions solely and due to this fact shouldn’t be unduly relied upon. The knowledge was not ready in accordance with the Canadian Oil and Fuel Analysis Handbook and Nationwide Instrument 51-101 Requirements of Disclosure for Oil and Fuel Actions. References on this information launch to reserves data usually are not indicative of long run efficiency or of final restoration.

Statements referring to reserves are deemed to be forward-looking statements, as they contain the implied evaluation, primarily based on sure estimates and assumptions, that the reserves described exist within the portions predicted or estimated. The reserve estimates described herein are estimates solely. The precise reserves could also be higher or lower than these calculated.

It shouldn’t be assumed that the estimates of future web revenues offered herein characterize the honest market worth of the reserves. There are quite a few uncertainties inherent in estimating portions of crude oil, reserves and the longer term web revenues attributed to such reserves.

References on this information launch to preliminary manufacturing charges, check manufacturing charges, different short-term manufacturing charges or preliminary efficiency measures referring to new wells are helpful in confirming the presence of hydrocarbons; nevertheless, such charges usually are not determinative of the charges at which such wells will start manufacturing and decline thereafter, and usually are not indicative of long-term efficiency or of final restoration. Whereas encouraging, readers are cautioned to not place reliance on such charges in calculating manufacturing for the Company. Accordingly, the Company cautions that the check outcomes must be thought of to be preliminary.

Boes could also be deceptive, significantly if utilized in isolation. A boe conversion ratio of 6 thousand cubic toes (Mcf) per 1 barrel (bbl) is predicated on an power equivalency conversion technique primarily relevant on the burner tip and doesn’t characterize a price equivalency on the wellhead. As the worth ratio between pure gasoline and crude oil primarily based on the present costs of pure gasoline and crude oil is considerably totally different from the power equivalency of 6:1, using a 6:1 conversion foundation could also be deceptive as a sign of worth.

Observe on Foreign money and Trade Charges

On this information launch, references to “$” or to “US$” are to United States {dollars}. On this information launch, the Company has used a foreign money change charge of US$1.00 = CAD$1.40.

Neither TSX Enterprise Trade nor its Regulation Companies Supplier (as that time period is outlined in insurance policies of the TSX Enterprise Trade) accepts duty for the adequacy or accuracy of this launch.

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