Pine Cliff Energy Ltd. Announces 2025 Annual Results, Filing of Disclosure Documents, Annual Reserves, Dividend Declaration and Corporate Outlook

Calgary, Alberta--(Newsfile Corp. - March 4, 2026) - Pine Cliff Energy Ltd. (TSX: PNE) (OTCQX: PIFYF) ("Pine Cliff" or the "Company") announces its 2025 annual results, filing of disclosure documents, year-end reserves and dividend declaration.

Q4 2025 and 2025 financial highlights include:

• Generated $7.8 million ($0.02 per basic and fully diluted share) and $29.9 million ($0.08 per basic and fully diluted share) of adjusted funds flow¹ for the three months and year ended December 31, 2025 compared to $8.6 million ($0.02 per basic and fully diluted share) and $38.0 million ($0.11 per basic and fully diluted share) for the same periods in 2024;
• Reduced net debt¹ by $12.7 million or 20% to $49.6 million at December 31, 2025, compared to $62.3 million at December 31, 2024;
• Production averaged 20,173 Boe/d² and 20,763 Boe/d³ during the three months and year ended December 31, 2025, representing a 11% decrease from the comparable periods in 2024;
• Proceeds from dispositions totaled $16.2 million in 2025, including $14.9 million in the fourth quarter;
• Capital expenditures totaled $8.7 million and $14.8 million for the three months and year ended December 31, 2025, compared to $nil and $2.5 million for the same periods in 2024;
• Paid dividends of $1.3 million ($0.004 per basic and fully diluted share) and $9.4 million ($0.026 per basic and fully diluted share) during the three months and year ended December 31, 2025, compared to $5.4 million ($0.015 per basic and fully diluted share) and $25.6 million ($0.072 per basic and fully diluted share) for the same periods in 2024; and
• Generated net income of $3.8 million ($0.01 per basic and fully diluted share) for the three months ended December 31, 2025 and a net loss of $12.1 million ($0.03 per basic and fully diluted share) for the year ended December 31, 2025, compared to a net loss of $5.6 million ($0.02 per basic and fully diluted share) and $21.4 million ($0.06 per basic and fully diluted share) for the comparable periods in 2024.

Included in the filings were Pine Cliff's annual information form ("AIF"), which includes disclosure and reports related to reserves data and other oil and gas information pursuant to National Instrument 51‐101 Standards of Disclosure for Oil and Gas Activities and its consolidated financial statements and related management's discussion and analysis for the year ended December 31, 2025.

Pine Cliff will host a webcast at 9:00 AM MDT (11:00 AM EDT) on Thursday, March 5, 2026. Participants can access the live webcast via Pine Cliff Energy Q4 Results Webcast or through the Pine Cliff website at http://www.pinecliffenergy.com. A recorded archive of the webcast will be available on the Company's website following the live webcast.

Reserve Report Highlights

Pine Cliff's independent reserve report (the "Report") was prepared by McDaniel & Associates Limited ("McDaniel") in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") with the effective date of December 31, 2025.

Highlights of the Report include:

• Net present value for Total Proved plus Probable ("TPP") reserves of $534.6 million, discounted at 10%, a reduction of $13.5 million, or 2%, from December 31, 2024. Positive additions for extensions and technical revisions were offset by the impact of dispositions, lower prices and annual production;
• Pine Cliff increased its 2025 TPP reserves by 6.3 MMBoe⁴ prior to adjusting for 2025 production, representing a reserve replacement ratio of 83%;
• Remaining TPP reserves of 92.8 MMBoe⁵ (69% conventional natural gas and coal bed methane) at December 31, 2025 were down 1.4% from 94.1 MMBoe⁶ (70% conventional natural gas and coal bed methane) at December 31, 2024; and
• Approximately 67% of total reserve volumes are classified as total proved reserves on December 31, 2025, an increase from 64% in the previous year.

Pine Cliff's Reserves

McDaniel has used a three-consultant average price (McDaniel, GLJ & Sproule) forecast, resulting in a price forecast of $3.00 and $3.30 per MMBtu for AECO natural gas and US$59.92 and US$65.10 per Bbl for WTI oil in 2026 and 2027 respectively.

Summary of Remaining Working Interest Reserves, as of December 31, 2025

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Summary of Net Present Values of Future Net Revenue, Before Income Taxes, as of December 31,

Reconciliation of Gross Reserves by Principal Product Type, as of December 31, 2025

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March Dividend

Pine Cliff has declared a regular monthly dividend of $0.00125 per common share to be paid March 31, 2026 to shareholders of record on March 16, 2026. The dividend is designated as a non-eligible dividend for Canadian income tax purposes.

Corporate Outlook

Pine Cliff's Board of Directors has approved a 2026 capital expenditure budget of $15.2 million, including $6.5 million of abandonment and reclamation spending, facility maintenance spending and the completion costs for one gross (1.0 net) Glauconite well drilled in late 2025. The well was brought on production in the second half of February and continues to clean up. The Company will continue to evaluate opportunities for a drilling program in the second half of 2026.

Pine Cliff's AECO hedge position is approximately 37% of gross natural gas production⁷ at an average price of $3.19/Mcf for 2026. Approximately 31% of gross crude oil production⁷ has been hedged at an average price of US$63.45/Bbl for 2026.

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Financial and Operating Results

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Reader Advisories

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Notes to Press Release

1. See Non-GAAP Measures.
2. Comprised of 97,025 Mcf/d natural gas, 2,766 Bbl/d NGLs and 1,236 Bbl/d light and medium oil.
3. Comprised of 99,974 Mcf/d natural gas, 2,778 Bbl/d NGLs and 1,323 Bbl/d light and medium oil.
4. Comprised of 23.5 MMcf natural gas, (0.6) MMBbls light and medium oil and 3.0 MMBbls NGLs.
5. Comprised of 383.9 MMcf natural gas, 5.6 MMBbls light and medium oil and 23.2 MMBbls NGLs.
6. Comprised of 397.0 MMcf natural gas, 6.7 MMBbls light and medium oil and 21.3 MMBbls NGLs.
7. Comprised of Q4 2025 sales volumes of 97,025 Mcf/d natural gas, 2,766 Bbl/d NGLs and 1,236 Bbl/d of light and medium oil.

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Cautionary Statements

Certain statements contained in this news release include statements which contain words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "will", "believe" and similar expressions, statements relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about developments, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis made by us derived from our experience and perceptions. Forward-looking information in this news release includes, but is not limited to: future capital expenditures, including the amount and nature thereof; future acquisition opportunities including Pine Cliff's ability to execute on those opportunities; future drilling opportunities and Pine Cliff's ability to generate reserves and production from the undrilled locations; oil and natural gas prices and demand; expansion and other development trends of the oil and natural gas industry; business strategy and guidance; expansion and growth of our business and operations; maintenance of existing customer, supplier and partner relationships; supply channels; accounting policies; risks; Pine Cliff's ability to generate adjusted funds flow; Pine Cliff's ability to pay a dividend; and other such matters.

All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties and assumptions are difficult to predict and may affect operations, and may include, without limitation: foreign exchange fluctuations; equipment and labour shortages and inflationary costs; general economic conditions; industry conditions; changes in applicable environmental, taxation and other laws and regulations as well as how such laws and regulations are interpreted and enforced; the ability of oil and natural gas companies to raise capital; the effect of weather conditions on operations and facilities; the existence of operating risks; volatility of oil and natural gas prices; oil and gas product supply and demand; risks inherent in the ability to generate sufficient cash provided by operating activities to meet current and future obligations; increased competition; stock market volatility; opportunities available to or pursued by us; and other factors, many of which are beyond our control. The foregoing factors are not exhaustive.

Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur including the reduction in municipal taxes and surface land rentals, or if any of them do, what benefits will be derived there from. Except as required by law, Pine Cliff disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

Natural gas liquids and oil volumes are recorded in barrels of oil ("Bbl") and are converted to a thousand cubic feet equivalent ("Mcfe") using a ratio of one (1) Bbl to six (6) thousand cubic feet. Natural gas volumes recorded in thousand cubic feet ("Mcf") are converted to barrels of oil equivalent ("Boe") using the ratio of six (6) thousand cubic feet to one (1) Bbl. This conversion ratio is based on energy equivalence primarily at the burner tip and does not represent a value equivalency at the wellhead. The terms Boe or Mcfe may be misleading, particularly if used in isolation. One Mcf of natural gas is approximately 1.02 million British thermal units ("MMBtu").

Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of oil, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement.

All amounts herein are presented in Canadian dollars unless otherwise specified. All references to $CAD or $ are to Canadian dollars and monetary references to $US are to United States dollars.

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Additional Definitions

MBbl – Thousands of barrels of oil
MBoe – Thousands of barrels of oil equivalent
MMBbl – Millions of barrels of oil
MMcf – Millions of cubic feet

NON-GAAP Measures

This news release uses the terms "adjusted funds flow", "operating netbacks", "corporate netbacks" and "net debt" which are not recognized under International Financial Reporting Standards ("IFRS") and may not be comparable to similar measures presented by other companies. These measures should not be considered as an alternative to, or more meaningful than, IFRS measures including net earnings, cash provided by operating activities, or total liabilities. The Company uses these measures to evaluate its performance, leverage and liquidity. Adjusted funds flow is a non-Generally Accepted Accounting Principles ("non-GAAP") measure that represents the total of funds provided by operating activities, before adjusting for changes in non-cash working capital, and decommissioning obligations settled. Net debt is a non-GAAP measure calculated as the sum of cash, accounts receivables and prepaid expenses and deposits less demand loan, term loan, and accounts payable and accrued liabilities. Operating netback and operating netback per Boe and per Mcfe are calculated as the sum of commodity sales, processing and gathering income and realized gain (loss) on risk management contracts, less royalties, transportation and operating expenses on an absolute and a per Boe or per Mcfe basis, respectively. Corporate netback on an absolute dollar and corporate netback per Boe and per Mcfe are calculated as operating netback less general and administrative and interest expense. Please refer to the 2025 annual management's discussion and analysis for additional details regarding non-GAAP measures and their calculations.

For further information, please contact:

Philip B. Hodge - President and CEO
Kristopher Zack - CFO and Corporate Secretary
Telephone: (403) 269-2289
Fax: (403) 265-7488
Email: info@pinecliffenergy.com

The TSX does not accept responsibility for the accuracy of this release.

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