New Risk • May 28
New major risk - Revenue and earnings growth Earnings have declined by 13% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 13% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported June 2025 fiscal period end). Share price has been volatile over the past 3 months (10% average weekly change). Shareholders have been diluted in the past year (25% increase in shares outstanding). Revenue is less than US$5m (US$2.0m revenue). Market cap is less than US$100m (UK£22.6m market cap, or US$30.2m). Announcement • May 28
Petro Matad Limited Provides Operational Update on Oil Production and Renewable Energy Projects Petro Matad Limited reported that all issues outstanding with the 2025 Oil Sales Agreement were resolved and payments were made. In subsequent discussions with industry regulator the Mineral Resources and Petroleum Authority of Mongolia (MRPAM), with Block XIX operator PetroChina and with the General Tax Authority of Mongolia, a common understanding was reached on the best way to word the 2026 Oil Sales Agreement to align it with the Petroleum Law and tax legislation. Although PetroChina Mongolia approved the new agreement, approval stalled in their headquarters as their Compliance Department sought an amendment to PetroChina's contract with the refinery to incorporate wording relating to Block XX crude. However, the issue has been resolved and the approval process will be completed shortly. With Block XX production accumulating in the Block XIX storage tanks and with a rising oil price through 2026, Petro Matad was prepared to give PetroChina time to resolve its issues as the delay in selling the year's production to date, which totals approximately 35,000 barrels, gives the Company the chance to secure a substantially higher price per barrel than had the oil already been sold month by month through the year. In parallel, Petro Matad approached Chinese oil traders to set up an independent route to market in case the delay continued. Interest was shown and this remains an option, but with PetroChina's approval now expected, the tried and trusted export operation remains the strong preference. Heron-1 continues to perform as forecast with average oil production from the well of 126 barrels per day through the first quarter. The water cut remains low and stable at approximately 3%. The gradual decline in the oil rate is in line with the production characteristics of the basin. The approved plan of development for Heron includes water injection wells later in the field life to support reservoir pressure and improve recovery per well and increase the overall recovery factor from the field. Gazelle-1 production has been optimised and the water cut has stabilised at approximately 20% with daily oil production averaging 123 barrels which is greater than the initial forecast when water breakthrough was first detected. Since Gazelle-1 came on stream in November 2025, Block XX operating costs have not increased above the level they were at when only Heron-1 was in production. This has been achieved as a result of the savings in power generation realised after connecting Heron-1 to the national electrical power grid. With Gazelle-1 performing above expectation, the economics of connecting this well to the transmission line at Heron-1 are being considered. Production operations are continuing to run smoothly with excellent cooperation in the field between the Petro Matad and PetroChina teams. 2026 production to date totals approximately 35,000 barrels of crude and Block XX production since start up now exceeds 110,000 barrels. The Company has received a technically and commercially attractive offer from the seismic acquisition contractor with the most experience in Mongolia to conduct a high resolution 3D seismic survey over the Block XX exploitation area. The proposal is being urgently evaluated as the crew is available to begin in late June or early July. With existing 3D covering the northern portions of both the Heron and Gazelle fields but not the southerly up dip culminations of these traps, 3D seismic will provide the structural definition required to drill future appraisal, development and exploration wells. New data should also improve seismic resolution at the reservoir level compared to that provided by the existing 2D and 3D surveys which were all acquired more than 15 years ago. On well work for 2026, whilst Heron-1 and Gazelle-1 are still performing at or above forecast, no workover activities on these wells will be undertaken at this time. Petro Matad is in discussion with a specialist company with the capability to workover the Heron-2 well to see if it can improve the flow potential of the reservoir at this location. Feedback from the well test contractor is awaited to secure a cost effective proposal for the testing of the Gobi Bear-1 well. SunSteppe Renewable Energy (SRE)'s operational focus in 2026 remains on its 200MW hybrid wind, solar, and battery energy storage project in Tuv Province. Changes at Cabinet level in the Mongolian government in recent months have slowed the Ministry of Energy's evaluation of the feasibility study for the project and its Science and Technology Committee has yet to meet to review and approve it. Work at site to gather wind data continues. SRE is part of a short-listed consortium that has submitted a bid for a 90MW solar/battery project for Ulaanbaatar city. SRE has also submitted an expression of interest on a 100MW wind/battery project being managed on behalf of the government by the International Finance Corporation. In addition to these two projects, SRE is assessing the potential of another 100MW utility scale solar/battery project under the government's broader efforts to improve winter power supply reliability. The government needs larger scale battery storage projects online this winter and will expedite all necessary approvals to achieve that goal. SRE has had positive discussions with potential financing institutions, construction contractors and strategic partners regarding possible participation. New Risk • May 05
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of British stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (11% average weekly change). Minor Risks Latest financial reports are more than 6 months old (reported June 2025 fiscal period end). Currently unprofitable and not forecast to become profitable next year (US$1.7m net loss next year). Shareholders have been diluted in the past year (25% increase in shares outstanding). Revenue is less than US$5m (US$2.0m revenue). Market cap is less than US$100m (UK£22.5m market cap, or US$30.4m). Announcement • May 01
Petro Matad Limited, Annual General Meeting, May 28, 2026 Petro Matad Limited, Annual General Meeting, May 28, 2026. Location: topaz conference hall, blue sky tower, sukhbaatar district, ulaanbaatar, Mongolia New Risk • Apr 17
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2025. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported June 2025 fiscal period end). Currently unprofitable and not forecast to become profitable next year (US$1.7m net loss next year). Share price has been volatile over the past 3 months (11% average weekly change). Shareholders have been diluted in the past year (25% increase in shares outstanding). Revenue is less than US$5m (US$2.0m revenue). Market cap is less than US$100m (UK£24.3m market cap, or US$32.9m). Announcement • Oct 11
Petro Matad Limited Provides Operational Update Petro Matad Limited provided the operational update. Gazelle-1 well test exceeds expectations. Heron-2 completion run and pumping has commenced. Heron-1 electrification installation completed. After the short move from the nearby Heron-2 location, the service rig was installed at Gazelle-1 in early October and testing operations began with the perforation of an 8 metre zone across pay zones identified on logs in the Tsagaantsav Formation between 2057 and 2065 metres measured depth (MD). On opening the well, gas and oil flowed to surface without the need for artificial lift. The first flow period of the test was conducted on a 1/8 inch choke and the well flowed at a stabilised rate of 160 barrels of oil per day (bopd). The second flow period on a 3/16 inch choke flowed at 300 bopd and on a 1/4 inch choke a rate of c. 460 bopd was achieved. No formation water was observed throughout the flow periods. Oil gravity has been measured on site at 43 o API which is similar to Heron-1 crude. The well has now been shut-in to gather pressure build-up data. The performance of Gazelle-1 on test has exceeded expectations and so the well will now be completed for production. The rig will remain on site to run the completion string after which the surface production facilities will be installed. The oil sales agreement with Block XIX has provisions within it for additional wells to be brought onstream and the incorporation of Gazelle-1 production is already under discussion. The need to retain the rig at Gazelle-1 to make the well ready for production as a matter of priority means that there will be insufficient time ahead of the winter shut down in November to carry out the planned test of the Gobi Bear-1 well. Plans are being made to conduct this operation next April at the start of the 2026 operating window. Heron-2 Completion The installation of the beam pump and temporary offloading facilities at Heron-2 has been completed and pumping commenced on 6 October. As expected, the beam pump is proving much more efficient at recovering the remaining frack and acid wash fluids than DQE's swabbing operation and so expect to complete the well clean out and to determine the flowing formation fluid and the rate capability of the well quicker and more cost effectively. Heron-1 Electrification Project The connection of the Heron-1 production facility to the national electricity grid has been completed. The 10kV transmission line and the current supply load from the recently upgraded provincial power plant can provide sufficient power for Heron-1 and several additional wells in Block XX. Planning and permitting have started to facilitate the connection of both Heron-2 and Gazelle-1 to the grid should it be deemed advantageous. Final commissioning and certification of the transmission line and substation for Heron-1 are ongoing with the aim to energise the line by mid-October. Provision of electricity to the Heron-1 wellsite and cessation of using diesel generators for power not only reduce operating costs by an estimated 15% but will also significantly reduce emissions and simplify production operations. 