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NAMIBIA: Reconafrica Announces an Updated Independent Third-Party Resource Report For The Damara Fold Belt

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REPORT HIGHLIGHTS(1)

  • Gross to the Company unrisked, prospective oil in place in identified prospects of 15.4
    billion barrels
  • Gross to the Company unrisked, prospective oil resources in identified prospects of 3.1
    billion barrels

Brian Reinsborough, President and CEO commented: “Since assuming the role of CEO in August
of last year, I have assembled a team of experienced explorationists, led by Chris Sembritzky,
Senior Vice President of Exploration. Analysis of core samples from all three previously drilled
wells has revealed the presence of liquid hydrocarbons, confirming the presence of a working
petroleum system. The team has also undertaken a comprehensive study of all other sources of
geochemical data and conducted additional basin modelling, which collectively indicates that the
Damara Fold Belt holds not only potential for large natural gas accumulations but also potential
for large oil accumulations. The technical teams are using all this recent information to help
prioritize and sequence the drilling order of our upcoming drilling program, which is planned to
commence in June with the drilling of Prospect L.”

Chris Sembritzky, Senior Vice President of Exploration, stated: “The scale of the Damara Fold
Belt play was a pivotal factor that drew me to ReconAfrica. Over the past several months, my
team and I have thoroughly reviewed an extensive amount of data, which has only increased our
excitement for the planned upcoming drilling campaign in both the Damara Fold Belt and Rift
plays. We firmly believe that this endeavor has the potential to unlock significant resource.”

The Report highlights an increase in Prospective Oil Resources since the last previous report
(dated December 8, 2023, with an effective date of March 31, 2023) prepared by NSAI and filed
on December 20, 2023, which highlighted only Prospective Natural Gas Resources. The change
in estimated Prospective Oil Resources is the result of in-depth analyses of all geochemical data,
including cores, cuttings, mud logs, seeps and additional basin modelling studies. The Company
outlined seven lines of evidence for oil to be present in the shallower Mulden intervals which has
collectively elevated the chance of finding oil in the Mulden reservoirs. The deeper Otavi targets
are still believed to be gas prone with probability of liquids as the Otavi source is an oil prone
source rock.

The Report reflects estimates of Prospective Resources from 19 identified prospects which are
viable drilling targets. The Report also includes estimates of Prospective Resources from four
leads which require more data acquisition and/or evaluation to be classified as a prospect.

Each opportunity in the inventory has been qualitatively assessed for the chance of oil versus
gas, and accordingly assigned as a risk factor for finding oil. NSAI has summarized the volumes
assuming oil discoveries because there is generally a higher volume weighted chance of
discovering oil in the petroleum system than gas.

NSAI has also conducted an alternate assessment of prospective resources assuming gas
discoveries, which is based on last year’s Damara Fold and Thrust Belt Area resource
assessment. The alternate assessment can be viewed in the Report in Appendix Page A-1. Both
cases were run with identical input parameters with the exception of formation volume factor,
which was modified slightly for the gas case.

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