President's Message to Shareholders

Glauconite Drilling Update

After pausing our drilling program for two years amid weak commodity prices, we successfully completed one Glauconite well (4-23) in our Central Alberta Caroline area. Pine Cliff owns a 100% interest in this well. The 4-23 continues to perform strongly, with field production estimates over the last 60 days averaging 1,150 boe/d³ (55% liquids). This production includes approximately 200 Bbls/d of condensate, typically sold at prices equal or better than light oil.

Pine Cliff has identified 51 gross (31.0 net) Glauconite locations in the Caroline area, with 29 gross (22.0 net) locations booked in our Total Proved plus Probable ("TPP") reserves as of December 31, 2025. The range of values of these locations at various commodity prices is highlighted in our updated corporate presentation available at www.pinecliffenergy.com.

Disciplined Capital Spending

We spent $7.5 million in the first quarter, primarily related to completion costs for our 4-23 Glauconite well and infrastructure in the Central Alberta Caroline area to support future Glauconite locations. Given the success of our 4-23 well, we continue to evaluate a potential drilling program in the second half of 2026. Our plans will depend on prevailing commodity prices and our dedication to preserving our balance sheet strength to manage ongoing commodity price volatility.

Dividend

Since the implementation of our dividend program in June 2022, our priority has been to maintain a sustainable dividend supported by free cash flow, prudent hedging and a strong balance sheet. At current commodity prices, we are maintaining our monthly dividend at $0.00125 per share.

As of March 31, 2026, Pine Cliff has paid $105.9 million, or approximately $0.30 per share, in cumulative dividends since the program began. We are proud to have returned this amount of capital to our shareholders given the size of our company and the fact that 2024 and 2025 were not strong years for Western Canada natural gas prices.

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Hedging and Diversification Update

Our hedging and internal marketing strategies continue to mitigate the impact of commodity price volatility. In the first quarter, Pine Cliff realized an average natural gas price of C$2.94/mcf, representing a 47% premium to the AECO Daily 5A average price of C$2.00/mcf.

For the remaining three quarters of 2026, we have hedged approximately 40% of our gross natural gas production⁴at an average price of $3.16/Mcf, and 46% of our gross crude oil production⁵at US$64.96/Bbl.  Our NGL production, which includers our condensate volumes, are unhedged.

Webcast

Pine Cliff will host a webcast at 9:00 AM MDT (11:00 AM EDT) on Wednesday, May 6, 2026. Participants can access the live webcast via Pine Cliff Energy Q1 Webcast or through the link provided on our website at www.pinecliffenergy.com. A recorded archive of the webcast will also be available on the website.

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Outlook

We remain optimistic about the outlook for North American natural gas in the back half of 226 and into 2027, with the view that Western Canada could be the beneficiary of macro natural gas trends now gaining momentum. LNG Canada Phase 1 exports have recently reached capacity, representing 2 Bcf/d of demand that did not exist in the Canadian market last year. This single project is now consuming more than 10% of all gas produced in Canada.  Shell’s recent CDN$22 billion natural gas acquisition in Canada, as the largest owner of LNG Canada, is viewed as a positive indication of the potential for the approval of Phase 2 of LNG Canada later this year, which would double the export capacity of this facility.

In addition, over US$400 Billion was spent on North American data center construction in 2025, and another US$800 Billion is expected to be spent in 2026. Natural gas is the dominant source of energy for these projects. We expect some of this incremental industrial demand to emerge in late 2026 and to be much more visible in 2027.

Pine Cliff’s approach remains steadfast. We believe our core strength is to allocate capital prudently with the fundamental objectives of protecting the balance sheet, sustaining the dividend and hedging prudently, while pursuing attractive assets and drilling opportunities in our core areas. Commodity cycles and volatility are not new to us and our experience tells us that disciplined capital allocation through volatile times creates long-term shareholder value.

Thank you for your continued support.

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Yours truly,

Phil Hodge

President and Chief Executive Officer

May 5, 2026

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¹ Disclosure Note: Please refer to Pine Cliff’s website for reader advisories regarding forward-looking information, non-GAAP measures, oil and gas measurements and definitions, as this President’s message is subject to the same cautionary statements as setout therein

² Comprised of 96,048 Mcf/d natural gas, 2,900 Bbl/d of NGLs and 1,158 Bbl/d light and medium oil

³ Comprised of 3,118 Mcf/d of natural gas (4,271Mcf/d raw gas) and 630 Bbl/d of NGLs.

⁴ Based on Q1 2026 sales volumes of 96,048 Mcf/dnatural gas.

⁵ Based on Q1 2026 sales volumes of 1,158 Bbl/d oflight and medium oil.

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