Calgary, Alberta--(Newsfile Corp. - August 7, 2025) - Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) ("Journey" or the "Company") is pleased to announce its financial and operating results for the three and six month periods ending June 30, 2025. The complete set of financial statements and management discussion and analysis are posted on www.sedarplus.ca and on the Company's website www.journeyenergy.ca.

Highlights for the second quarter are as follows:

• Generated sales volumes of 10,950 boe/d in the second quarter (49% crude oil; 10% NGL's; 41% natural gas).

• Realized Adjusted Funds Flow of $15.9 million ($0.24 per basic share and diluted share).

• Reduced field operating costs per boe by 8% from the first quarter and 25% from the comparable quarter in 2024.

• Continued with the construction of the Gilby power generation asset. Completion of this project is currently scheduled for the fourth quarter.

• Rig-released 3 (0.9 net) Duvernay light oil wells during the quarter bringing the total wells drilled in the year to 8 (2.4 net). 2.1 net Duvernay wells have now been completed.

• Brought 3 (0.9 net) Duvernay wells on production in the second quarter from the 06-04-043-03W5 Pad. Initial production results from wells have averaged IP30 rates of 1,261 boe/d and 86% liquids per well (1,042 bbl/d of crude oil, 49 bbl/d of NGLs, and 1.0 mmcf/d of natural gas).

Subsequent Events:

• Entered into purchase and sale agreements to divest two minor producing assets in our central Alberta core area for combined proceeds of $3.2 million prior to closing adjustments.

• Brought on 4 (1.2 net) Duvernay wells early in the third quarter from the 02-22-042-03W5 pad. Initial results from these wells are encouraging as rates continue to exceed internal expectations. Current field production estimates for the first 15 days are averaging greater than 1,600 boe/d and more than 1,300 bbl/d of crude oil and NGLs per well.

Financial & Operating Highlights

(1) Includes physical hedging gains and losses

OPERATIONS

Sales volumes in the second quarter of 2025 averaged 10,950 boe/d as compared to 10,997 boe/d in the first quarter of 2025 and 11,235 boe/d in the same quarter of 2024. The additional volumes realized from Journey's Duvernay drilling program offset the 330 boe/d of production sold in February.

Total capital spending for the second quarter of 2025 was $26.8 million. $21.7 million of this amount was spent on Journey's Duvernay project. In addition, $2.1 million was spent on advancing the Gilby and Mazeppa power projects during the quarter. Journey also spent $1.3 million in respect of abandonment and reclamation work during the quarter.

Subsequent to the end of the second quarter, Journey entered into purchase and sale agreements to divest two minor producing assets in the central Alberta core area for combined proceeds of $3.2 million prior to closing adjustments. These sales are expected to close in the third quarter of 2025 and will reduce the corporate asset retirement obligations by approximately $7.2 million. Production for these assets is approximately 280 boe/d (85% natural gas). Sales volume guidance for 2025 remains unchanged after taking into account these divestments. Including the impact of the third quarter divestments, Journey has now entered into agreements for minor divestments totaling $6.6 million in 2025.

The Gilby power project has entered into Stage 5 of the grid connection process and is nearing the end of this process. Journey has increased its capital program by $2 million in 2025 to accommodate higher than forecast costs for the grid connection which is now sits at approximately $4.25 million. Journey has not changed its estimated on-stream date for Gilby, which is in the fourth quarter of 2025. However, this date remains subject to grid connection field work, the timing of which is outside the control of Journey. At the Mazeppa power project, the third-party meter station upgrade for the gas supply to the project is complete and Journey plans to begin testing the engines in the third quarter.

Duvernay Joint Venture Operational Update

To date Journey has participated in the drilling of 10 (3.0 net) wells in its Duvernay joint venture. 9 (2.7 net) wells have been completed and are now on-production.

2.0 (0.6 net) joint venture wells were drilled and completed from the 05-18-042-03W5 surface location in late 2024. These wells came on-production at the end of November 2024. In the first seven months of production, these wells have returned over 78% of their capital and continue to exceed management's expectations.

In the second quarter of 2025, the joint venture completed and brought on-production the following 3 (0.9 net) wells from an eight well pad at 06-04-043-03W5:

• 12-26-042-03W5 - Spartan completed and brought the well on-stream in May at a lateral length of 3,834 meters (12,579 feet). Initial production results are exceeding internal expectations, averaging 30-day peak sales production of approximately 1,228 boe/d including 87% liquids (1,028 bbl/d of light crude oil and 45 bbl/d of NGLs), with 0.9 mmcf/d of natural gas. ⁽¹⁾

• 09-27-042-03W5 - Spartan completed and brought the well on-stream in May at a lateral length of 3,895 meters (12,779 feet). Initial production results are exceeding internal expectations, averaging 30-day peak sales production of approximately 1,315 boe/d including 86% liquids (1,079 bbl/d of light crude oil and 51 bbl/d of NGLs), with 1.1 mmcf/d of natural gas. ⁽¹⁾

• 07-27-042-03W5 - Spartan completed and brought the well on-stream in June at a lateral length of 3,825 meters (12,549 feet). Initial production results are exceeding internal expectations, averaging 20-day peak sales production of approximately 1,470 Boe/d including 86% liquids (1,202 bbl/d of light crude oil, 58 bbl/d of NGLs), with 1.3 mmcf/d of natural gas. ⁽¹⁾

(1) Production volumes are based on field notes from testers. These volumes represent the highest 30-day average rates achieved since the wells came on-production. Final reported volumes may differ from test volumes.

1 (0.3 net) well was drilled from the 01-19-043-03W5 surface location in the first quarter of 2025. This well remains a drilled uncompleted well.

In late July, 4.0 (1.2 net) wells drilled from the 02-22-042-04W5 surface location, and completed prior to the end of the second quarter, were brought on-production. Initial results from these wells are encouraging as rates continue to exceed internal expectations. Current field production estimates for the first 15 days are averaging greater than 1,600 boe/d and more than 1,300 bbl/d of crude oil and NGLs per well.

Although production results are still at an early stage, the results of this play are extremely encouraging. Over the next few months further updates on the performance of these wells will be provided as data becomes available. Updates will be provided through public data, future press releases, and through regular updates to well production type curves in Journey's corporate presentation.

The Duvernay joint venture represents a significant component of Journeys 2025 capital program. To date in 2025 Journey has spent $30.7 million on land costs, drilling, completions, and facilities.

The new Duvernay wells have been approved for the Alberta Crown royalty Emerging Resources Program, resulting in an advantageous royalty rate structure on the Crown portion of the Duvernay acreage.

FINANCIAL

Journey achieved Adjusted Funds Flow of $15.9 million during the second quarter of 2025. Sales volumes were 3% lower than the comparable quarter of 2024. Average corporate realized commodity prices were 8% lower with natural gas prices being 92% higher, crude oil prices 19% lower and NGL prices 14% lower. Despite the sale of 330 boe/d in the first quarter having a downward impact on volumes, Journey's overall volumes in the second quarter were essentially the same as the first quarter of 2025 as the volumes from the new Duvernay wells effectively offset the disposition and declines. Duvernay volumes are mainly light oil but also have liquids rich gas associated with them. Therefore, Journey's liquids weighting (crude oil and NGL's) continued to increase. Liquids volumes increased to 59% of total volumes as compared to 54% in the same quarter of 2024. The increase in liquids weighting is helping to transition the relative contributions to Adjusted Funds Flow. For the second quarter of 2025 crude oil represented 49% of total boe volumes but contributed 81% of total corporate revenues. Conversely, natural gas sales volumes contributed 41% of total boe volumes in the first quarter of 2025 while contributing 10% of total revenues.

Journey achieved efficiencies in its field operations during the quarter. Operating expenses declined to $17.58/boe in the second quarter of 2025 as compared to $19.06/boe in the first quarter of 2025 and $23.48/boe in the second quarter of 2024. For the second quarter of 2025 aggregate operating expenses were $18.6 million, which was 7% lower than the $20.0 million from the first quarter and 27% lower than the $25.4 million from the second quarter of 2024. A significant portion of the decrease from the prior quarter is related to reduced spending on workovers and facility turnarounds, and the disposition of higher operating cost assets that occurred in the first quarter of 2025. Royalty expense was lower at $7.24/boe as compared to $9.24/boe in the first quarter of 2025 and $10.05/boe in the second quarter of 2024. Lower commodity prices and a favorable Crown royalty rate on the new Duvernay wells in the second quarter of 2025 resulted in the decrease.

Journey's general and administrative ("G&A") costs in the second quarter of 2025 were $2.5 million as compared to the $3.7 million in the second quarter of 2024 and consistent with the $2.3 million in the first quarter of 2025. On a per boe basis, Journey's G&A costs were $2.53/boe for the second quarter of 2025 as compared to $2.37/boe in the first quarter of 2025 and $3.61/boe for the second quarter of 2024.

Interest expense decreased 1% to $1.4 million in the second quarter of 2025 from $1.5 million in the first quarter of 2025 and $1.9 million in the second quarter of 2024. The reduction in interest costs for the second quarter of 2025 was mainly attributable to the lower outstanding balances on term debt due to principal repayments throughout 2024 and the first quarter of 2025.

Journey generated net income of $4.1 million in the second quarter of 2025 or $0.06 per basic and diluted share as compared to $7.7 million of net income in the first quarter of 2025 or $0.12 per basic and diluted share. For the comparable quarter of 2024 Journey had a loss of $2.3 million. Adjusted Funds Flow of $15.9 million in the second quarter of 2025 was 19% lower than the $19.6 million realized in the first quarter of 2025 but was 67% higher than the $9.5 million in the comparable quarter of 2024.

Journey exited the second quarter of 2025 with net debt of $64.5 million, which was 21% higher than the $53.2 million at the end of the first quarter of 2025 and 7% higher than the net debt at the beginning of 2025. The net debt to annualized second quarter Adjusted Funds Flow ratio was 1.0 times. Net debt in the second quarter of 2025 increased mainly due to the Duvernay capital program, which was planned to be weighted to the first half of the year.

OUTLOOK & GUIDANCE

Journey has updated its 2025 capital spending and production guidance as per below. While sales volumes guidance has not changed, the Company has made minor changes to increase its capital spending plans. However, these expenditures are more than offset by the minor divestments which are forecast to close in the third quarter. $55 million of net capital spending from the previous guidance has been reduced to $54 million. To the end of June $37 million of capital spending (net of A&D activity) has been expended.

This guidance incorporates many material underlying assumptions including but not limited to:

• Forecasted commodity prices by month;
• Forecasted operating costs, including forecasted prices for power;
• Forecasted costs for the capital program and the timing of the spending; and
• Forecasted results and phasing of production additions from the capital program;

Notes:

1. The weighting of the corporate sales boe volumes guidance is as follows:
   1. Heavy crude oil: 19%
   2. Light/medium crude oil: 24%
   3. Tight oil: 6%
   4. NGL's: 10%
   5. Coal-bed methane natural gas: 6%
   6. Conventional natural gas: 33%
   7. Shale gas: 2%

The Duvernay project will remain the main focus of Journey's capital plans and it is currently anticipated that 2026 will see a significant expansion of spending over 2025. Journey has already been making preliminary plans to ensure it has sufficient financial resources for 2026 spending. These initiatives include minimizing non-Duvernay capital expenditures and aggressively pursuing non-core asset sales. Potential asset sales could include producing assets, infrastructure, or a portion of Journey's power business. Journey will report further on these initiatives if binding agreements are consummated.

About the Company

Journey is a Canadian exploration and production company focused on conventional, oil-weighted operations in Alberta, Canada. Journey's strategy is to grow its production base by drilling on its existing core lands, implementing secondary and tertiary flood projects on its existing lands, and by executing on accretive acquisitions. In conjunction with its joint venture partner, the Company is advancing development of its Duvernay light oil resource play. In addition, Journey is continuing with its plans to grow its power generation business through its projects at Gilby and Mazeppa.

ADVISORIES

This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to the Company's plans and other aspects of the anticipated future operations, management focus, strategies, financial, operating and production results, industry conditions, commodity prices and business opportunities. In addition, and without limiting the generality of the foregoing, this press release contains forward-looking information regarding decline rates, anticipated netbacks, drilling inventory, estimated average drill, complete and equip and tie-in costs, anticipated potential of the Assets including, but not limited to, EOR performance and opportunities, capacity of infrastructure, potential reduction in operating costs, production guidance, total payout ratio, capital program and allocation thereof, future production, decline rates, funds flow, net debt, net debt to funds flow, exchange rates, reserve life, development and drilling plans, well economics, future cost reductions, potential growth, and the source of funding Journey's capital spending. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future.

The forward-looking information is based on certain key expectations and assumptions made by management, including expectations and assumptions concerning prevailing commodity prices and differentials, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labour and services; the impact of increasing competition; the ability to efficiently integrate assets and employees acquired through acquisitions, including the Acquisition, the ability to market oil and natural gas successfully and the ability to access capital. Although we believe that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Journey can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The actual results, performance or achievement could differ materially from those expressed in, or implied by, the 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, or if any of them do so, what benefits that we will derive therefrom. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release to provide security holders with a more complete perspective on future operations and such information may not be appropriate for other purposes.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect the operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca).These forward looking statements are made as of the date of this press release and we disclaim any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Journeys prospective results of operations, funds flow, netbacks, debt, payout ratio well economics and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was made as of the date of this press release and was provided for providing further information about Journey's anticipated future business operations. Journey disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws, which involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Journey, including, without limitation, those listed under "Risk Factors" and "Forward-Looking Statements" in the Annual Information Form filed on www.sedarplus.ca on March 31, 2025. Forward-looking information may relate to the future outlook and anticipated events or results and may include statements regarding the business strategy and plans and objectives. Particularly, forward-looking information in this press release includes, but is not limited to, information concerning Journey's drilling and other operational plans, production rates, and long-term objectives. Journey cautions investors in Journey's securities about important factors that could cause Journey's actual results to differ materially from those projected in any forward-looking statements included in this press release. Information in this press release about Journey's prospective funds flows and financial position is based on assumptions about future events, including economic conditions and courses of action, based on management's assessment of the relevant information currently available. Readers are cautioned that information regarding Journey's financial outlook should not be used for purposes other than those disclosed herein. Forward-looking information contained in this press release is based on current estimates, expectations and projections, which we believe are reasonable as of the current date. No assurance can be given that the expectations set out in the Prospectus or herein will prove to be correct and accordingly, you should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time except as required by applicable securities law.

Non-IFRS Measures

The Company uses the following non-IFRS measures in evaluating corporate performance. These terms do not have a standardized meaning prescribed by International Financial Reporting Standards and therefore may not be comparable with the calculation of similar measures by other companies.

(1) "Adjusted Funds Flow" is calculated by taking "cash flow provided by operating activities" from the financial statements and adding or deducting: changes in non-cash working capital; non-recurring "other" income; transaction costs; and decommissioning costs. Adjusted Funds Flow per share is calculated as Adjusted Funds Flow divided by the weighted-average number of shares outstanding in the period. Because Adjusted Funds Flow and Adjusted Funds Flow per share are not impacted by fluctuations in non-cash working capital balances, we believe these measures are more indicative of performance than the GAAP measured "cash flow generated from operating activities". In addition, Journey excludes transaction costs from the definition of Adjusted Funds Flow, as these expenses are generally in respect of capital acquisition transactions. The Company considers Adjusted Funds Flow a key performance measure as it demonstrates the Company's ability to generate funds necessary to repay debt and to fund future growth through capital investment. Journey's determination of Adjusted Funds Flow may not be comparable to that reported by other companies. Journey also presents "Adjusted Funds Flow per basic share" where per share amounts are calculated using the weighted average shares outstanding consistent with the calculation of net income (loss) per share, which per share amount is calculated under IFRS and is more fully described in the notes to the audited, year-end consolidated financial statements. The reconciliation of GAAP measured cash flow from operations to the non-GAAP metric of Adjusted Funds Flow is as follows:

(2) "Netback(s)". The Company uses netbacks to help evaluate its performance, leverage, and liquidity; comparisons with peers; as well as to assess potential acquisitions. Management considers netbacks as a key performance measure as it demonstrates the Company's profitability relative to current commodity prices. Management also uses them in operational and capital allocation decisions. Journey uses netbacks to assess its own performance and performance in relation to its peers. These netbacks are operating, Funds Flow and net income (loss). "Operating netback" is calculated as the average sales price of the commodities sold (excluding financial hedging gains and losses), less royalties, transportation costs and operating expenses. There is no GAAP measure that is reasonably comparable to netbacks.

(3) "Net debt" is calculated by taking current assets and then subtracting accounts payable and accrued liabilities; the principal amount of term debt; other loans; and the principal amount of the contingent bank liability. Net debt is used to assess the capital efficiency, liquidity and general financial strength of the Company. In addition, net debt is used as a comparison tool to assess financial strength in relation to Journey's peers. The reconciliation of Net Debt is as follows:

(4) Journey uses "Capital Expenditures" to measure its capital investment level compared to the Company's annual budgeted capital expenditures for its organic capital program, excluding acquisitions or dispositions. The directly comparable GAAP measure to capital expenditures is cash used in investing activities. Journey then adjusts its capital expenditures for A&D activity to give a more complete analysis for its capital spending used for FD&A purposes. The capital spending for A&D purposes has been adjusted to reflect the non-cash component of the consideration paid (i.e. shares issued). The following table details the composition of capital expenditures and its reconciliation to cash flow used in investing activities:

Measurements

All dollar figures included herein are presented in Canadian dollars, unless otherwise noted.

Where amounts are expressed in a barrel of oil equivalent ("boe"), or barrel of oil equivalent per day ("boe/d"), natural gas volumes have been converted to barrels of oil equivalent at nine (6) thousand cubic feet ("Mcf") to one (1) barrel. Use of the term boe may be misleading particularly if used in isolation. The boe conversion ratio of 6 Mcf to 1 barrel ("Bbl") of oil or natural gas liquids is based on an energy equivalency conversion methodology primarily applicable at the burner tip, and does not represent a value equivalency at the wellhead. This conversion conforms to the Canadian Securities Regulators' National Instrument 51-101 — Standards of Disclosure for Oil and Gas Activities.

Share Capital

Journey's common shares are listed on the Toronto Stock Exchange ("TSX") and trade under the symbol "JOY". The table below summarizes the number of common shares outstanding:

For purposes of calculating the fully diluted shares the dilution impact from the convertible debentures (7,600 thousand) shares have been excluded as the conversion price of $5.00 is out-of-the-money.

Abbreviations

The following abbreviations are used throughout these MD&A and have the ascribed meanings:

Unless otherwise noted, all volumes in this press release refer to the sales volumes of crude oil, natural gas and associated by-products measured at the point of sale to third-party purchasers. For natural gas, this occurs after the removal of natural gas liquids.

No securities regulatory authority has either approved or disapproved of the contents of this press release.

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