President's Message to Shareholders

Disposition of Assets in Central Area

Earlier today we announced an agreement to sell properties in our Central area for gross proceeds of $15 million. This disposition is expected to close before year-end. The production impact is limited, with these properties accounting for approximately 485 Boe/d⁴ or 2.3% of total production in the first nine months of the year.

The properties sold will include a portion of our land that is prospective for Basal Quartz (BQ) drilling, a play that we have been monitoring closely. This area has seen increased drilling activity in the past few years and as a result, interest in the undeveloped potential on our land base has risen. While we understand the economics of the drilling in this area is attractive, we did not rank the lands that we have agreed to sell ahead of our Sundre area drilling locations on a total risk/return basis. As a result, we did not expect to drill the BQ locations within the next few years, and therefore it made sense for us to monetize these assets to support the exploitation of our higher ranked drilling locations. We also believe that continued industry activity could help confirm other Pine Cliff BQ locations on land that we have retained in this area.

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Disciplined Capital Spending

While Pine Cliff waited for the improvement of gas prices, we remained disciplined with our 2025 capital program, with total capital spending of $6.1 million in the first nine months of the year, mostly related to maintenance. We also spent $3.7 million on abandonment and reclamation activities.

With the improved forward strip natural gas prices, and after an over two-year pause, we are planning to resume our development activity with commencement of our glauconite drilling program. Pine Cliff has over 18 net glauconite well locations, and our team has prepared to commence a program that will bring these locations on production over the coming years. Due to the expected timing of the initial drill, we are reducing our 2025 capex budget to $20 million from $23.5 million, with a portion of that reduced capital spending now expected to occur in 2026.

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Production Profile

Third quarter production averaged 20,376 Boe/d², which is down slightly from the second quarter, due to natural declines and voluntary shut-in production arising from low AECO gas prices. All our properties are now back in production, and we have resumed swabbing specific properties ahead of the winter heating season to increase production

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Dividend

We continue to monitor our total payout ratio, and at current commodity prices, we are maintaining our monthly dividend at $0.00125 per share.

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Hedging and Diversification Update

During this past summer’s natural gas price environment, Pine Cliff’s hedging and internal market diversification strategies have again proven effective. Pine Cliff realized an average natural gas price of C$2.21/Mcf, representing a 245% premium to the AECO Daily 5A average price of C$0.64/Mcf in the third quarter. Over the first nine months of 2025, Pine Cliff’s realized price of C$2.53/Mcf represents a 70% premium to the AECO Daily 5A price of C$1.49/Mcf.

We continue to strengthen our hedge position with approximately 50% of our gross natural gas production⁵ now hedged at an average price of $2.88/Mcf for the fourth quarter of 2025. Similarly, approximately 51% of our gross crude oil production⁶ has been hedged at US$63.16/Bbl over the same period.

We have taken advantage of favorable forward pricing by securing additional hedges for 2026, locking in an average price of just over C$3.00/Mcf on roughly 33% of natural gas production5 and US$63.43/bbl on 23% of crude oil production⁶ We remain committed to opportunistically expanding our hedge positions where they align with our business strategy, capital program and dividend sustainability, while still leaving material exposure to what we believe will be a strong pricing environment.

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Webcast

Pine Cliff will host a webcast at 9:00 AM MDT (11:00 PM EDT) on Thursday November 6th, 2025.  Participants can access the live webcast via https://www.gowebcasting.com/14376 or through the links provided on our website at www.pinecliffenergy.com. A recorded archive of the webcast will also be made available on the website.

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Outlook

Structural improvements in natural gas demand in North America are now being reflected in the near-term natural gas price markets, although we are optimistic that even those elevated prices may be conservative. As we enter the winter withdrawal season, AECO forward prices for 2026 have risen to $3.52 Mcf for Q1 2026. The first train at LNG Canada continues to ramp up throughput and the second train of Phase 1 is now in the final stages of start-up. LNG Canada is expected to be exporting approximately 2 Bcf/d in early 2026, which will constitute over 10% of the entire current natural gas production in Canada. United States LNG exports set a record of 18 Bcf/d this fall, a 4 Bcf/d annual growth, with an additional 3 Bcf/d of US LNG growth expected in 2026.

In addition to these impressive North American LNG export numbers, technology companies are accelerating their announcements of data center capital spend to keep up with artificial intelligence use growth, which provides a further tailwind for natural gas demand in 2026.

I have been travelling for the past few months speaking to investors and there is a growing recognition of these natural gas demand growth indicators. Our management team is excited about where we have positioned Pine Cliff to take advantage of these trends. We are pleased to see that the patience and timing of our drilling plans have coincided with the rise in natural gas pricing. We continue to work with our data center partner on the project we announced earlier this year. It is rewarding to see that the hard work and effort of our team during a difficult natural gas environment is starting to show meaningful results.

We remain steadfast in our commitment to making operational and capital allocation decisions that enhance long-term shareholder value as the macro fundamentals of rising global and North American demand for natural gas remain intact.

Thank you for your continued support.

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Yours truly,

Phil Hodge

President and Chief Executive Officer

November 5, 2025

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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, definitions as this Presidents message is subject to the same cautionary statements as set out therein

² Comprised of 99,473 Mcf/d natural gas, 2,514 Bbl/d NGLs and 1,283 Bbl/d light and medium oil.

³ Comprised of 100,974 Mcf/d natural gas, 2,781 Bbl/d NGLs and 1,352 Bbl/d light and medium oil.

⁴ Comprised of 2,010 Mcf/d natural gas, 40 Bbl/d NGLs and 110 Bbl/d light and medium oil.

⁵ Based on Q3 2025 sales volumes of 99,473 Mcf/d natural gas.

⁶ Based on Q3 2025 sales volumes of 1,283 Bbl/d of light and medium oil.

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