SEDAR Interim Financial Statements

Condensed Interim Consolidated Financial Statements (Unaudited) For the three and nine months ended September 30, 2025 and 2024 Dated: November 14, 2025 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) 2 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS As at ($000s) Note September 30 2025 December 31 2024 ASSETS Current assets Cash 1,273 4,722 Restricted deposit 19 4,112 4,112 Accounts receivable 19 4,640 5,957 Prepaid expenses and other assets 3,553 3,470 Total current assets 13,578 18,261 Non-current assets Exploration and evaluation assets 5 3,460 3,521 Property and equipment 6 94,933 94,242 Right-of-use assets 7 1,123 1,290 Other assets 508 553 Total non-current assets 100,024 99,606 Total assets 113,602 117,867 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable and accrued liabilities 20,920 25,514 Current portion of lease liabilities 9 759 2,350 Current portion of decommissioning liabilities 10 5,931 6,260 Current portion of other liabilities 267 267 Current portion of debt 8 65,745 55,572 Total current liabilities 93,622 89,963 Non-current liabilities Lease liabilities 9 155 231 Decommissioning liabilities 10 66,978 65,513 Other liabilities 11,446 11,201 Total non-current liabilities 78,579 76,945 Total liabilities 172,201 166,908 Shareholders’ deficit Share capital 11 167,463 159,386 Warrants 11 1,020 729 Contributed surplus 40,737 39,467 Accumulated deficit (267,567) (248,032) Accumulated other comprehensive income (loss) (“AOCIL”) (252) (591) Total shareholders' deficit (58,599) (49,041) Total liabilities and shareholders' deficit 113,602 117,867 Going concern 2 Subsequent events 23 See accompanying notes to the condensed interim consolidated financial statements. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) 3 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS Three Months Ended September 30 Nine Months Ended September 30 ($000s, except per share amounts) Note 2025 2024 2025 2024 (Restated)(1) (Restated)(1) REVENUE AND OTHER INCOME Petroleum and natural gas sales 15 9,394 9,651 33,021 32,135 Royalties (1,040) (1,623) (3,804) (5,011) Petroleum and natural gas sales, net of royalties 8,354 8,028 29,217 27,124 Realized loss on derivative instruments - - - (485) Unrealized gain on derivative instruments - - - 416 Other income 5 49 53 60 Total revenue and other income 8,359 8,077 29,270 27,115 EXPENSES Operating 16 6,417 5,386 18,716 21,296 General and administrative 17 2,240 2,042 6,551 6,245 Depletion and depreciation of property and equipment 6 2,555 2,154 7,828 6,661 Exploration and evaluation 5 2 - 27 - Depreciation on right-of-use assets 7 56 85 167 255 Gain on property dispositions 4 - - (125) (2,302) Impairment (Impairment reversal) 5,6 (252) 362 3,568 601 Foreign exchange (gain) loss 307 137 (393) 879 Finance costs 18 4,623 3,752 13,325 10,934 Transaction, restructuring and other costs (recovery) (692) (26) (724) 241 Gain on debt modification 8 - (10,854) (135) (10,854) Total expenses 15,256 3,038 48,805 33,956 Income (Loss) before income taxes (6,897) 5,039 (19,535) (6,841) Total income taxes - - - - Net income (loss) (6,897) 5,039 (19,535) (6,841) Other comprehensive income (loss) Items that may be reclassified to net loss: Currency translation adjustments (208) 492 339 361 Total other comprehensive income (loss) (208) 492 339 361 Comprehensive income (loss) (7,105) 5,531 (19,196) (6 --- ,480) Net income (loss) per share ($) Basic 12 - $0.01 $(0.01) $(0.01) Diluted 12 - $0.01 $(0.01) $(0.01) (1) Restated (Note 22). See accompanying notes to the condensed interim consolidated financial statements. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT) (UNAUDITED) 4 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS ($000s) Note Share Capital Warrants Contributed Surplus Accumulated Deficit AOCIL Total Equity (Deficit) (Restated)(1) (Restated)(1) (Restated)(1) Balance, December 31, 2023(1) 147,273 729 39,596 (231,068) 164 (43,306) Issuance of Common Shares 10,000 - - - - 10,000 Share issuance costs (50) - - - - (50) Share-based compensation 13 - - 170 - - 170 Settlement of share-based compensation, net of withholding tax 82 - (83) - - (1) Currency translation adjustments(1) - - - - 361 361 Net loss(1) - - - (6,841) - (6,841) Balance, September 30, 2024 157,305 729 39,683 (237,909) 525 (39,667) Balance, December 31, 2024 159,386 729 39,467 (248,032) (591) (49,041) Issuance of Common Shares and Warrants 11 8,451 215 - - - 8,666 Share issuance costs 11 (400) 76 - - - (324) Share-based compensation 13 - - 1,302 - - 1,302 Settlement of share-based compensation, net of withholding tax 13 26 - (32) - - (6) Currency translation adjustments - - - - 339 339 Net loss - - - (19,535) - (19,535) Balance, September 30, 2025 167,463 1,020 40,737 (267,567) (252) (58,599) (1) Restated (Note 22). See accompanying notes to the condensed interim consolidated financial statements. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) 5 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS Three Months Ended September 30 Nine Months Ended September 30 ($000s) Note 2025 2024 2025 2024 (Restated)(1) (Restated)(1) OPERATING ACTIVITIES Net income (loss) (6,897) 5,039 (19,535) (6,841) Adjustments for non-cash items: Impairment (Impairment reversal) 5,6 (252) 362 3,568 601 Unrealized gain on derivative instruments - - - (416) Depletion and depreciation of property and equipment 6 2,555 2,154 7,828 6,661 Depreciation on right-of-use assets 7 56 85 167 255 Exploration and evaluation expense 5 2 - 27 - Accretion expense - Decommissioning liabilities 10 601 615 1,803 2,005 Unrealized foreign exchange loss (gain) 307 101 (396) 842 Change in other liabilities 200 (78) 581 553 Gain on property dispositions 4 - - (125) (2,302) Loss (gain) on debt modification 8 - (10,942) (135) (10,942) Share-based compensation 13 394 62 1,206 170 Non-cash transaction and other costs recovery (751) - (751) - Allowance for doubtful accounts and bad debts 19 53 262 221 262 Interest expense and finance costs – Debt 14,18 3,943 3,162 11,230 8,559 Settlements of decommissioning liabilities 10 (827) (539) (1,374) (934) Other, net - 7 - - Change in non-cash working capital 14 108 579 (2,832) (1,257) Cash from (used in) operating activities (508) 869 1,483 (2,784) INVESTING ACTIVITIES Property and equipment expenditures 6 (115) (656) (11,061) (1,674) Proceeds from dispositions, net of acquisitions 4 12 630 (64) 24,353 Change in non-cash working capital 14 (156) (614) (1,774) (1,056) Cash from (used in) investing activities (259) (640) (12,899) 21,623 FINANCING ACTIVITIES Issuance of Common Shares and Warrants for cash 11 - 6,869 8,666 6,869 Issuance costs 11 - (50) (324) (50) Subscription receipt proceeds - 400 - 400 Settlement of share-based compensation, including withholding tax and net of proceeds - (3) (7) --- (1) Repayments of principal related to lease liabilities 9 (656) (693) (1,667) (1,989) Repayment of First Lien Loan debt 14 - - (888) (20,000) Drawings of Second Lien Notes debt 14 - - 821 3,131 Change in non-cash working capital 14 457 - 1,366 - Cash from (used in) financing activities (199) 6,523 7,967 (11,640) Change in cash (966) 6,752 (3,449) 7,199 Cash, beginning of period 2,239 2,282 4,722 1,835 Cash, end of period 1,273 9,034 1,273 9,034 (1) Restated (Note 22). See accompanying notes to the condensed interim consolidated financial statements. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 6 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS 1. REPORTING ENTITY Prairie Provident Resources Inc. (“PPR” or the “Company”) was incorporated under the laws of the province of Alberta on July 29, 2016. Its principal office is located at #1000, 500 – 4th Avenue SW, Calgary, Alberta. The Company’s common shares ("Common Shares") are listed on the Toronto Stock Exchange under the symbol “PPR”. PPR is an independent oil and natural gas exploration, development and production company. PPR’s reserves, producing properties and exploration prospects are located primarily in the province of Alberta. The Company conducts certain of its operating activities jointly with others through unincorporated joint arrangements and these consolidated financial statements reflect only the Company’s share of assets, liabilities, revenues and expenses under these arrangements. The Company conducts all of its principal business in one reportable segment. On May 15, 2023, former Noteholder, PCEP Canadian Holdco, LLC ("PCEP"), acquired a majority interest in PPR following a recapitalization transaction, thereby obtaining control of PPR. PCEP is a subsidiary of Prudential Private Capital, a unit of PGIM, Inc. ("PGIM"), the ultimate parent of PPR. 2. BASIS OF PRESENTATION Statement of Compliance These unaudited condensed interim consolidated financial statements ("Interim Financial Statements") have been prepared in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting, as issued by the International Accounting Standards Board. They are condensed as they do not include all of the information required for full annual consolidated financial statements, and they should be read in conjunction with the audited annual consolidated financial statements of PPR as at and for the years ended December 31, 2024 and 2023 and the notes thereto (the “Annual Financial Statements”). The Interim Financial Statements have been prepared on a basis consistent with the accounting, estimation and valuation policies described in the Annual Financial Statements, other than described in Note 3 below. Certain comparative figures have been reclassified to conform with the presentation adopted in the current period. The Interim Financial Statements were approved and authorized for issue by the Board of Directors of PPR on November 14, 2025. Going Concern These Interim Financial Statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that PPR will be able to realize its assets and discharge its liabilities in the normal course of business. At September 30, 2025, the Company's total principal debt was $70.5 million (December 31, 2024 - $64.9 million) with the First Lien --- Loan considered fully drawn (see Note 8). At September 30, 2025, the Company was in breach of its Minimum EBITDAX, Total Leverage Ratio and Minimum Production financial covenants under its Revolving Facility and Second Lien Notes (see Note 8). The covenant breaches create a right for the lenders under each facility to accelerate the maturity of their indebtedness. None of the Company’s lenders have delivered a notice of an event of default required to accelerate the maturity of their facilities. With the completion of the Equity Financing and Debt Amendments as described below, as of October 31, 2025, these defaults have been waived, and the lenders no longer have the right to accelerate the maturities of the facilities, subject to the Company's compliance with the terms of the agreements in future periods. There remains a risk with regards to ongoing compliance with debt covenants. As described in Note 23 (Subsequent Events), on October 31, 2025, the Company completed a preferred share financing, raising $26.5 million in gross proceeds, and concluded amendments to its First Lien Loan and Second Lien Notes debt agreements to extend maturities by 24 months, defer cash interest obligations through 2026, and adjust financial covenants (Note 8). An affiliate of the Company’s largest shareholder, PCEP, participated in the Equity Financing. The lenders under the First Lien Loan and the holders of the Second Lien Notes are also affiliates of PCEP. As more particularly outlined in the Company’s news release of October 21, 2025 announcing term sheets for the Equity Financing and Debt Amendments, the Company had applied to the Toronto Stock Exchange pursuant to the ‘financial hardship’ provisions of the TSX Company Manual for an exemption from any shareholder approval requirement that would otherwise apply in respect of the Equity Financing and the Debt Amendments, on the basis that, as determined by the Company’s board of directors, the Company was in serious financial difficulty, the transactions are designed to improve its financial situation, and the transaction terms were reasonable in the circumstances. The Toronto Stock Exchange accepted the Company’s application to rely on this exemption. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 7 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS Despite these efforts by the Company and with the Company committed to further development in the Basal Quartz formation, PPR remains in a challenging position with respect to its development plans and current financial obligations while managing its decommissioning liabilities, debt obligations, and debt-related financial covenants. In the event of default under both the First Lien Loan and the Second Lien Notes, the lenders have the right to demand immediate repayment of all amounts owed under both facilities. The Company recognizes the significance of PPR's cash flows and continues to actively assess a variety of strategies and options to effectively manage its capital, however, there is no guarantee that the Company will be successful in these efforts. The Company's lenders have not re-determined the borrowing base following the Company's reserves evaluation as at December 31, 2024. The lenders have sole discretion on the determination of the borrowing base, which is based predominantly on the amount of the Company’s proved developed pro --- ducing oil and natural gas reserves. If a borrowing base deficiency exists because of a re-determination, the lender is required to notify the Company of such shortfall. The Company may repay the shortfall amount by either making one installment within 90 days or six equal consecutive monthly installments beginning within 30 days after the Company’s receipt of the borrowing base deficiency notice. In the event of such a shortfall, the Company may not have the funds available to repay the amount due. Due to the above factors, there is a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern. These Interim Financial Statements do not include adjustments to the recoverability and classification of recorded assets and liabilities and related expenses that might be necessary should the Company be unable to continue as a going concern. Such adjustments could be material should the Company therefore be required to realize its assets and liquidate its liabilities and commitments in other than the normal course of business at amounts different from those in the accompanying Interim Financial Statements. Functional and Presentation Currency The Interim Financial Statements are presented in Canadian dollars (CAD, $ or C$), which is also the Company’s functional currency. All references to US$ or USD are to United States dollars. Use of Estimates and Judgements The preparation of the Interim Financial Statements in conformity with International Financial Reporting Standards (“IFRS”) requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Information about significant areas of estimation uncertainty and critical judgments in applying accounting policies are outlined in Note 2 of the Annual Financial Statements. 3. MATERIAL ACCOUNTING POLICIES AND CHANGES IN ACCOUNTING POLICIES The following are the accounting policies that management considers material to the users of the Financial Statements. Accounting policy information is considered to be material if its disclosure is needed for users to understand information provided about material transactions or other events or conditions in the Financial Statements. The Company’s material accounting policies under IFRS are presented in Note 3 of the Annual Financial Statements. Certain information and disclosures normally required to be included in the notes to the Annual Financial Statements prepared in accordance with IFRS have been condensed or omitted in the Interim Financial Statements. New accounting standards and amendments not yet adopted On April 9, 2024, the IASB issued a new standard, International Financial Reporting Standard 18 Presentation and Disclosure in Financial Statements, which introduced new requirements for improved comparability in the statement of profit or loss, enhanced transparency of management-defined performance measures and more useful grouping of information in the financial statements. The standard is effective for annual reporting periods beginning on or after January 1, 2027. The Company is currently evaluating its impact to financial statem --- ents. On May 30, 2024, the IASB issued amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures that clarify the recognition and derecognition of certain financial assets and liabilities, including an exception for those settled via electronic cash NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 8 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS transfer systems. New disclosure requirements are introduced for instruments with terms that can change cash flows and for equity instruments designated at fair value through other comprehensive income. The amendments are effective for reporting periods beginning on or after January 1, 2026. PPR does not anticipate any material impact from these amendments to the financial statements. 4. DISPOSITIONS AND ACQUISITIONS 2024 Dispositions In the first quarter of 2025, the Company adjusted the purchase price equation for the disposition of certain Provost assets completed in the first quarter of 2024. The adjustments resulted in a $0.06 million reduction in cash consideration, the derecognition of a further $0.18 million in decommissioning liabilities (Note 10) and a further $0.12 million gain on disposition. 2025 Other acquisitions and dispositions PPR completed other property acquisitions in the first nine months of 2025 acquiring $0.03 million of property and equipment in exchange for $0.03 million in cash consideration. In addition, PPR sold $0.02 million of property and equipment in exchange for $0.02 million in cash consideration. 5. EXPLORATION AND EVALUATION ASSETS ($000s) Total Cost Balance, December 31, 2024 62,779 Change in estimates in decommissioning liabilities (Note 10) 959 Exploration and evaluation expense (27) Transfer to property and equipment (Note 6) (34) Balance, September 30, 2025 63,677 Impairment Balance, December 31, 2024 (59,258) Impairment expense (959) Balance, September 30, 2025 (60,217) Carrying amounts December 31, 2024 3,521 September 30, 2025 3,460 Exploration and evaluation (“E&E”) assets consist of the Company’s undeveloped land and exploration and pilot projects which are pending the determination of proved or probable reserves. During the three months and nine months ended September 30, 2025, PPR recognized E&E expense (related to surrendered and/or expired leases) in various areas of $0.00 million and $0.03 million, respectively (2024 - $nil). The Company did not capitalize any directly attributable general and administrative expenses or share-based compensation to E&E assets during the three and nine months ended September 30, 2025 (2024 - $nil). At September 30, 2025, the Company had not identified any indicators of impairment or reversal of impairment. During the three and nine months ended September 30, 2025, PPR recognized non-cash E&E impairment reversal of $0.02 million and an impairment expense of $1.0 million, respectively (2024 - $0.05 million impairment expense and $0.06 million impairment reversal, respectively), for changes in estimates of decommissioning liabilities related to E&E properties that had $nil carrying amount. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 9 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS 6. PROPERTY AND EQUIPMENT ($000s) Production and Development (“P&D”) --- Office Equipment Total Cost Balance, December 31, 2024 618,093 5,097 623,190 Additions 11,049 12 11,061 Net acquisitions 7 - 7 Capitalized share-based compensation (Note 13) 96 - 96 Decommissioning liabilities – Additions (Note 10) 418 - 418 Decommissioning liabilities – Changes in estimates (Note 10) (488) - (488) Transfer from E&E assets (Note 5) 34 - 34 Balance, September 30, 2025 629,209 5,109 634,318 Depletion, depreciation and impairment Balance, December 31, 2024 (524,196) (4,752) (528,948) Depletion and depreciation (7,750) (78) (7,828) Impairment expense (2,609) - (2,609) Balance, September 30, 2025 (534,555) (4,830) (539,385) Carrying amounts December 31, 2024 93,897 345 94,242 September 30, 2025 94,654 279 94,933 As at September 30, 2025, an estimated $188.1 million in future development costs associated with proved plus probable undeveloped reserves were included in the calculation of depletion (December 31, 2024 - $198.9 million). During the three and nine months ended September 30, 2025, $0.07 million and $0.5 million, respectively (2024 - $0.01 million and $0.1 million, respectively), of directly attributable general and administrative expenses were capitalized to property and equipment and included in additions above. Impairment Expense (Impairment Reversal) At September 30, 2025, the Company had not identified any indicators of impairment or reversal of impairment. During the three and nine months ended September 30, 2025, PPR recognized non-cash property and equipment impairment reversal of $0.2 million and impairment expense of $2.6 million, respectively (2024 - $0.3 million and $0.7 million impairment expense, respectively), for changes in estimates of decommissioning liabilities related to P&D properties that had $nil carrying amount. At June 30, 2025, the Company assessed its CGUs for indicators of impairment and reversal and determined that impairment indicators existed in the Princess CGU due to a decline in forecasted commodity prices. The fair value less costs of disposal (or “FVLCD”) method (see Note 3 of the Annual Financial Statements) was used to determine the recoverable amounts of these CGUs. These CGUs were classified as Level 3 fair value measurement as certain key assumptions were not based on observable market data, but rather management’s best estimates. The impairment tests resulted in a recoverable amount supporting the Princess CGU’s carrying amount of value of $33.2 million (December 31, 2024 - $34.9 million). The recoverable amount of the Princess CGU was calculated based on 19% discounted after-tax cash flows of proved and probable reserves using forward prices and costs estimates at June 30, 2025 and an inflation rate of 2%. The table below summarizes the forecasted prices used at June 30, 2025, to determine the recoverable amounts of the Princess CGU: WTI ($US/bbl) Canadian Light Sweet ($CAD/bbl) AECO ($CAD/MMBtu) Exchange rate ($US/$CAD) Inflation rate 2025 (6 months) 64.00 84.72 2.43 0.72 - 2026 68.00 89.66 3.42 0.73 2% 2027 68.00 86.67 3.28 0.75 2% 2028 69.36 88.40 3.35 0.75 2% 2029 70.75 90.17 3.41 0.75 2% 2030 72.16 97.97 3.48 0.75 2% 2031 73.61 93.81 3.55 0.75 2% NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 10 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS WTI ($US/bbl) Canadian Light Sweet ($CAD/bbl) AECO ($CAD/MMBtu) Exchange rate ($US/$CAD) Inflation rate 2032 75. --- 08 95.69 3.62 0.75 2% 2033 76.58 97.60 3.69 0.75 2% 2034 78.11 99.55 3.77 0.75 2% 2035 79.67 101.54 3.84 0.75 2% Thereafter (inflation percentage) 2% 2% 2% 0.75 2% At June 30, 2025, the Company did not identify any indicators of impairment or potential impairment reversals on its other CGUs, thus no impairment test was required. 7. RIGHT-OF-USE ASSETS ($000s) Office Leases Facility Lease Other Leases Total Cost Balance, September 30, 2025 and December 31, 2024 196 1,183 92 1,471 Accumulated depreciation Balance, December 31, 2024 (5) (148) (28) (181) Depreciation expense (42) (111) (14) (167) Balance, September 30, 2025 (47) (259) (42) (348) Carrying amounts December 31, 2024 191 1,035 64 1,290 September 30, 2025 149 924 50 1,123 8. DEBT At September 30, 2025, the Company's debt of $65.7 million (December 31, 2024 - $55.6 million) comprises the following: Principal Debt(1) Carrying Amount of Debt ($000s) September 30 2025 December 31 2024 September 30 2025 December 31 2024 Revolving Facility - First Lien Loan USD Advance - US$6.1 million principal (Dec 31, 2024 - US$5.7 million)(1) 8,519 8,142 8,083 7,190 CAD Advance - C$51.4 million principal (Dec 31, 2024 - C$48.0 million) 51,420 48,022 48,667 42,010 Amendment Fee - C$1.5 million principal (Dec 31, 2024 - C$1.5 million) 1,500 1,500 1,325 1,101 Total First Lien Loan 61,439 57,664 58,075 50,301 Second Lien Notes(2) Tranche 1 (Mar-23) - US$3.6 million principal (Dec 31, 2024 - US$3.6 million)(1)(2) 5,068 5,238 6,460 5,155 Additional Notes - US$0.1 million principal (Dec 31, 2024 - US$0.1 million)(1) 205 212 145 116 Subsequent Additional Notes - US$0.6 million principal (Dec 31, 2024 - US$nil)(1) 835 - 1,065 - Capitalized and accrued PIK interest(2) 2,932 1,787 - - Total Second Lien Notes 9,040 7,237 7,670 5,271 Carrying amounts Current portion of debt 70,479 64,901 65,745 55,572 Non-current portion of debt - - - - Total debt 70,479 64,901 65,745 55,572 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 11 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS (1) At September 30, 2025, USD-denominated principal debt converted at an exchange rate of US$1.00 to C$1.3921 (December 31, 2024 - US$1.00 to C$1.4389). (2) The Second Lien Notes tranches' principal is subject to deferred interest in kind (whilst the principal remains outstanding) and an overall deferred compensation fee as described below, which are included in the 'Capitalized and accrued PIK interest' as presented. PPR estimates that the principal will be subject to a target multiple of x1.8 on settlement at the maturity date, which is not reflected in the principal debt in the table above. In addition to the debt as detailed above, the Company includes the following in accounts payable and accrued liabilities: ($000s) September 30 2025 December 31 2024 Accrued liabilities - First Lien Loan USD Advance 73 - CAD Advance 385 - Total debt 458 - At September 30, 2025, there was $0.5 million of principal debt cash interest repayment on the First Lien Loan as a result of the deferral of a portion of cash interest owed under the First Lien Loan and 75% capitalized to outstanding principal as additional principal of all accrued interest amounts through September 30, 2025 as described below. At December 31, 2024, there was $nil accrued interest on the First Lien Loan as a result of the deferral of a portion of cash interest owed un --- der the First Lien Loan and 100% capitalized to outstanding principal as additional principal of all accrued interest amounts through December 31, 2024 as described below. Note 14 includes a reconciliation of the changes in liabilities arising from the financing activities of the Company's debt. Revolving Facility - First Lien Loan At September 30, 2025 and December 31, 2024, the Company has a senior secured credit facility ("First Lien Loan") with the Company's ultimate parent comprising US$65 million of senior secured revolving notes. Borrowings under the First Lien Loan are repayable at the Company’s election at par plus accrued interest and any applicable breakage costs. Repayments generally will not affect the aggregate commitment or borrowing base under the First Lien Loan, except in certain extraordinary circumstances where a repayment will reduce the borrowing base. The First Lien Loan is denominated in USD, but accommodates CAD advances. All notes were issued at par by Prairie Provident Resources Canada Ltd., a wholly-owned subsidiary of PPR, and are guaranteed by PPR and certain of its other subsidiaries and secured by a US$200 million debenture. The note purchase agreement governing the First Lien Facility also limits the amounts the Company can borrow to a borrowing base amount, determined by the secured noteholder at any time in their sole discretion based on their internal criteria and the estimated value of PPR’s petroleum and natural gas properties in accordance with the lender's customary practices for oil and gas loans. Outstanding borrowings in excess of the borrowing base must be repaid with interest. The Company's lenders have not re-determined the borrowing base following the Company's reserves evaluation as at December 31, 2024. The lenders have sole discretion on the determination of the borrowing base, which is based predominantly on the amount of the Company’s proved developed producing oil and natural gas reserves. If a borrowing base deficiency exists because of a re-determination, the lender is required to notify the Company of such shortfall. The Company may repay the shortfall amount by either making one installment within 90 days or six equal consecutive monthly installments beginning within 30 days after the Company’s receipt of the borrowing base deficiency notice. Amounts borrowed under the Revolving Facility bear interest based on reference bank lending rates in effect from time to time, plus an applicable margin. The USD advances bear interest at the Secured Overnight Financing Rate (“SOFR”) plus 950 basis points and the CAD advances bear interest at the Canadian Overnight Repo Rate Average ("CORRA") (Canadian Dollar Offered Rate prior to the debt amendment below) plus 950 basis points. Standby fees on any undrawn borrowing capacity are 87.5 basis points per annum. On September 13, 2024, the maturity date was extended to March 31, 2026 in addition to the following amendments to the First Lien Loan: ? Deferral of a portion of cash interest obligations on amounts owed under the First Lien Loan, through (i) 100% capitalized to outstanding principal as additional principal of all accrued interest amounts through December 31, 2024; and (ii) 25% capitalization NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 12 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS of 2025 accrued interest through --- December 31, 2025 if PPR raises $14.5 million to $16.5 million of equity by March 31, 2025; or (iii) up to 50% of 2025 accrued interest through December 31, 2025 if PPR raises at least $16.5 million of equity by March 31, 2025 as additional principal of all accrued interest amounts; ? In consideration of the debt amendments, a $1.5 million debt amendment fee (the "Amendment Fee") payable to the noteholder at the earliest of (i) the March 31, 2026 maturity date; (ii) the date on which the other obligations of the First Lien Loan are settled; or (iii) the date on which an event of default occurs; and ? Adjustment of financial covenants, to replace existing covenants with new measures and thresholds that align with the Company’s current expectations for the remaining term to maturity. On February 19, 2025, in conjunction with the equity financings in February 2025 and March 2025 (Note 11), further amendments were made to the First Lien Loan that includes: ? Further deferral of a portion of cash interest obligations on amounts owed under the First Lien Loan, through 75% capitalization of 2025 accrued interest through December 31, 2025 as PPR raised $18.5 million of equity by March 31, 2025; and ? Replacing existing covenants with new measures and thresholds for the remaining term to maturity. The amended covenants are outlined below. Following the revised capitalization of 2025 accrued interest through December 31, 2025 and the impact on the present value of discounted repayments, the Company recognized a $0.2 million debt modification gain on the First Lien Loan. As at September 30, 2025, the Company had $nil (December 31, 2024 - $nil) available borrowing capacity under the First Lien Loan. The First Lien Loan is considered fully drawn. Following an Equity Financing and Debt Amendments on October 31, 2025 (as described in Note 23), the First Lien Loan debt was amended to extend maturities by 24 months, defer cash interest obligations through 2026, and adjust financial covenants Second Lien Notes On March 30, 2023, the Company completed a second lien financing of the 2023 PPR recapitalization and issued US$3.6 million of notes (the "Second Lien Notes") with Prudential Capital Energy Partners, L.P., a subsidiary of PPR's ultimate parent. The Second Lien Notes bear interest at the SOFR plus 1150 basis points. Interest on the Second Lien Notes must be paid in kind while the First Lien Loan remains outstanding. In addition to repayment of the principal balance on maturity, the Second Lien Note purchase agreement requires payment of a deferred compensation fee based on a target multiple of 1.8, capped by a 45% internal rate of return, on the later of maturity or prepayment and the date on which the Revolver is fully repaid. On May 17, 2024, the Company issued an additional tranche of US$2.3 million of Second Lien Notes with consistent interest, maturity and conditions. On September 13, 2024, the maturity date of the Second Lien Notes was extended to September 30, 2026 in addition to other amendments to the Second Lien Notes including an adjustment of financial covenants, to replace existing covenants and align with the First Lien Note covenants. On September 27, 2024, the US$2.3 million second tranche was settled and repaid through a C$3.1 million offset against the proceeds received from a $10 million PCEP Common Share subscription. The Company issued US$0.15 million of additional notes representing accrued indebtedness on the second tranche no --- te (the "Additional Notes") repayable on the extended September 30, 2026 maturity date. The Additional Notes are non-interest bearing, not subject to a target return and not subject to a deferred compensation fee. On February 19, 2025, in conjunction with the First Lien Loan debt amendments as described above, the Second Lien Note covenants were further revised. The amended covenants are outlined below. On June 9, 2025, the Company issued an additional tranche of US$0.6 million of Second Lien Notes (the “Subsequent Additional Notes”) with interest, maturity and conditions consistent with that of the March 2023 first tranche notes. Under IFRS 9, Financial Instruments, the Subsequent Additional Notes were recognized at fair value as part of a modification of the Second Lien Notes debt. As such, the net loss for the nine months ended September 30, 2025 includes a $0.1 million fair value adjustment on initial recognition of the debt. Subsequent to the fair value recognition of these notes, the Company recognizes this debt at amortized cost using the effective interest rate method on expected cash flows. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 13 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS The fair value measurement of the Subsequent Additional Notes is non-recurring and assessed as Level 3 (Note 3 of the Annual Financial Statements) as the Company used inputs for the liabilities that are not based on observable market data. The fair value was calculated using the present value of expected future cash flows with the major assumptions and inputs being: (i) settlement of principal, and applicable x1.8 target multiple (in the case of the Second Lien Notes) at maturity date; and (ii) Subsequent Additional Notes discounted at 35% based on management's best estimates of rates currently available to PPR for debt on similar terms, credit risk and remaining maturity. Following an Equity Financing and Debt Amendments on October 31, 2025 (as described in Note 23), the Second Lien Notes debt was amended to extend maturities by 24 months, defer cash interest obligations through 2026, and adjust financial covenants. Covenants at September 30, 2025 As described above, the amended September 13, 2024 debt agreements of the First Lien Loan and the Second Lien Notes and related parent and subsidiary guarantees now align the various financial and non-financial covenants on the part of the Company and its subsidiaries including covenants that place limitations on certain types of activities, including restrictions or requirements with respect to additional debt, liens, asset sales, capital expenditures, hedging activities, investments, dividends and mergers and acquisitions. At September 30, 2025, the financial covenant thresholds of the Company are as follows: Financial Covenant First Lien Loan Requirement Second Lien Notes Requirement As at September 30, 2025 Minimum EBITDAX (1) For the period of four fiscal quarters most recently ended: Quarter ending Sep 30, 2025 Exceed $19.0 million Exceed $17.5 million Not in compliance Total Leverage Ratio (2) For the period of four fiscal quarters most recently ended: Quarter ending Sep 30, 2025 Greater than 4.00 Greater than 4.50 Not in compliance Minimum Liquidity Monthly from Dec 2024 onwards Minimum of C$0.5 million in the form of unrestricted cash and/or unrestricted cash equivalents Not --- applicable In compliance Minimum Production (3) For the months ended: Jul-2025 At least 2,500 boe/d At least 2,250 boe/d Not In compliance Aug-2025 through Sep-2025 At least 3,000 boe/d At least 2,700 boe/d Not In compliance (1) Under the debt agreements, EBITDAX for any period means (a) consolidated net loss for such period plus (b) to the extent deducted in determining consolidated net loss, financing charges, exploration expenses, income taxes, depreciation, depletion, amortization and other non-cash items of expense for such period (including any provision for the reduction in the carrying amount of assets recorded in accordance with Generally Accepted Accounting Practice and including non-cash charges resulting from share-based compensation and write downs on assets and non-cash losses resulting from outstanding risk management derivative contracts for such period, losses attributable to extraordinary and non-recurring losses for such period) minus (c) all non-cash items of income which were included in determining such consolidated net loss (including non-cash gains resulting from the outstanding risk management derivative contracts and earnings attributable to extra-ordinary and non-recurring gains for such period; provided that such EBITDAX shall be subject to pro forma adjustments for material acquisitions and dispositions assuming that such transactions had occurred on the first day of the applicable calculation period. (2) Under the debt agreements, the Total Leverage Ratio means the ratio as of the last day of any fiscal quarter of the Company, the ratio of (i) adjusted indebtedness at such time (including, for clarity, all First Lien Loans and Second Lien Notes), plus current liabilities at such time, less current assets at such time, to (ii) EBITDAX for the period of four fiscal quarters most recently ended. Under the agreements, current assets exclude derivative assets while current liabilities excludes the current portion of long-term debt, lease liabilities, decommissioning obligations, derivative liabilities and non-cash liabilities. (3) Production means an average daily hydrocarbon production volume, measured in barrels of oil equivalent per day (boe/d) (with 6,000 cubic feet of natural gas deemed to be one barrel of oil equivalent). Subsequent to September 30, 2025, and as part of the Debt Amendments on October 31, 2025, the Company obtained a waiver from the lenders for the financial debt covenant breaches as described above. In addition, the cash interest repayment with respect to the third quarter was also waived through the amended agreements. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 14 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS Amended covenants at October 31, 2025 Following the Equity Financing and Debt Amendments on October 31, 2025 (as described in Note 23), the First Lien Loan and Second Lien Notes debt was amended to extend maturities by 24 months, defer cash interest obligations through 2026, and adjust financial covenants to align with current expectations for the extended term to maturity. The amended financial covenants are as follows: Financial Covenant First Lien Loan Requirement Second Lien Notes Requirement As of September 30, 2025 Minimum EBITDAX (1) Not applicable For the period of four fiscal quarters most recently ended: Quarter ending Jun 30, 2026 Exceed $11.0 millio --- n Exceed $9.0 million Quarter ending Sep 30, 2026 Exceed $15.0 million Exceed $13.0 million Quarter ending Dec 31, 2026 Exceed $21.0 million Exceed $18.0 million Quarter ending Mar 31, 2027 Exceed $23.0 million Exceed $20.0 million Quarter ending Jun 30, 2027 Exceed $25.0 million Exceed $21.0 million Quarter ending Sep 30, 2027 Exceed $28.0 million Exceed $24.0 million Quarter ending Dec 31, 2027 Exceed $31.0 million Exceed $27.0 million Total Leverage Ratio (2) Not applicable For the period of four fiscal quarters most recently ended: Quarter ending Jun 30, 2026 Greater than 8.50 Greater than 9.00 Quarter ending Sep 30, 2026 Greater than 6.00 Greater than 6.50 Quarter ending Dec 31, 2026 Greater than 5.00 Greater than 5.50 Quarter ending Mar 31, 2027 Greater than 4.00 Greater than 4.50 Quarter ending Jun 30, 2027 Greater than 3.50 Greater than 4.00 Quarter ending Sep 30, 2027 Greater than 3.00 Greater than 3.50 Quarter ending Dec 31, 2027 Greater than 2.50 Greater than 3.00 Minimum Liquidity Not applicable Monthly from October 31, 2025 onwards Minimum of C$0.5 million in the form of unrestricted cash and/or unrestricted cash equivalents Not applicable Minimum Production (3) Not applicable For the months ended: Jun-2026 At least 2,750 boe/d At least 2,475 boe/d Jul-2026 through Oct-2026 At least 3,000 boe/d At least 2,700 boe/d Nov-2026 through Jun-2027 At least 3,500 boe/d At least 3,150 boe/d Jul-2027 through Oct-2027 At least 4,000 boe/d At least 3,600 boe/d Nov-2027 through Dec-2027 At least 4,500 boe/d At least 4,050 boe/d Jan-2028 through Feb-2028 At least 5,000 boe/d At least 4,500 boe/d Maximum CAPEX (4) Not applicable For the period of four fiscal quarters most recently ended: Quarter ending Jun 30, 2026 Not exceed $31.0 million Not exceed $33.0 million Quarter ending Sep 30, 2026 Not exceed $39.0 million Not exceed $42.0 million Quarter ending Dec 31, 2026 Not exceed $29.0 million Not exceed $31.0 million Quarter ending Mar 31, 2027 Not exceed $27.0 million Not exceed $29.0 million Quarter ending Jun 30, 2027 Not exceed $32.0 million Not exceed $35.0 million Quarter ending Sep 30, 2027 Not exceed $31.0 million Not exceed $33.0 million Quarter ending Dec 31, 2027 Not exceed $37.0 million Not exceed $43.0 million (1) through (3) See Covenants at September 30, 2025 above (4) Under the debt agreements, CAPEX means the capital expenditures or acquisitions, whether in respect of the Company’s oil and gas properties, acquisitions of oil and gas properties or shares or other assets of any kind or infrastructure projects of any kind (terms as defined under the debt agreements). NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 15 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS 9. LEASE LIABILITIES ($000s) Total Balance, December 31, 2024 2,581 Interest expense 279 Lease payments (1,946) Balance, September 30, 2025 914 September 30 2025 December 31 2024 Consisting of: Current portion of lease liabilities 759 2,350 Non-current portion of lease liabilities 155 231 The following table details the undiscounted cash flows of PPR’s lease liabilities as at September 30, 2025: ($000s) <1 Year 1-3 Years 4-5 Years >5 Years Total Contractual Cash Flows Carrying Amount Lease liabilities 782 167 12 34 995 914 10. DECOMMISSIONING LIABILITIES ($000s) Total Balance, December 31, 2024 71,773 Dispositions (Note 4) (182) Additions 418 Liabil --- ities settled (1,374) Change in estimates 471 Accretion expense 1,803 Balance, September 30, 2025 72,909 September 30 2025 December 31 2024 Consisting of: Current portion of decommissioning liabilities 5,931 6,260 Non-current portion of decommissioning liabilities 66,978 65,513 At September 30, 2025, the Company estimated the undiscounted and inflated total future liabilities to be approximately $196.1 million (December 31, 2024 – $194.0 million). Liability payments are estimated over the next 55 years with the majority of costs expected to be incurred over the next 35 years, of which $5.9 million is estimated to be spent in the next year. Decommissioning liabilities at September 30, 2025 were determined using risk-free rates of 2.80% to 3.48% (December 31, 2024 – 3.36% to 3.64%) and an inflation rate of 1.9% (December 31, 2024 – 1.9%). NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 16 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS 11. SHARE CAPITAL AND WARRANTS Authorized shares The Company has: ? Unlimited number of Common Shares. Issued and outstanding Common Shares Number (000s) Amount ($000s) Balance, December 31, 2024 1,197,401 159,386 Issuance of Common Shares 203,915 8,451 Share issuance costs(1) - (400) Issued on exercise of stock options 19 1 Issued for RSU settlements 241 25 Balance, September 30, 2025 1,401,576 167,463 (1) Includes issuance of 2025 Broker Warrants for services as per below. 2025 Equity Financings As part of a brokered private placement, PPR raised $8.666 million in gross proceeds through the issuance of Common Shares and Warrants: ? On February 20, 2025, PPR closed the first tranche of an equity financing for $4.8 million in gross proceeds from its principal and largest shareholder, PCEP, at a price of $0.0425 per Common Share and issued 112,941,176 Common Shares to PCEP; and ? On March 5, 2025, PPR closed the second and final tranche of the equity financing for additional $3.87 million in gross proceeds through: o The issuance of 86,267,672 units at a price of $0.0425 per unit, for gross proceeds of $3.67 million in an offering made pursuant to the 'listed issuer financing exemption' (LIFE) under applicable Canadian securities laws. Each unit comprises one Common Share and one Common Share purchase warrant, with each such purchase warrant exercisable for one Common Share at a price of $0.05 per Common Share until March 5, 2028 (the "2025 Purchase Warrant"). As part of the LIFE offering, PCEP acquired 54,508,872 units in total for $2.3 million in gross proceeds; and o A further $0.2 million in gross proceeds from directors and officers at a price of $0.0425 per Common Share, issuing 4,705,883 Common Shares to directors and officers. In connection with the 2025 Equity Financings, $8.451 million of the gross proceeds was allocated to Common Share capital and the residual $0.215 million was allocated to the 2025 Purchase Warrants, and included in Warrants. In connection with the brokered private placement, the Company paid deal brokers total cash compensation of $0.35 million and issued them a total of 2,508,704 non-transferable broker warrants (the “2025 Broker Warrants“). Each 2025 Broker Warrant entitles the holder thereof to acquire one unit at a price of $0.0425 per unit until March 5, 2028. Following an Equity Financing and Debt Amendments on October 31, 2025, PPR Canadian Pref Holdco, L --- LC (and an affiliate of PCEP) holds 264,848 Class A preferred shares in the capital of the Company’s subsidiary, Prairie Provident Resources Canada Ltd (as described in Note 23). Issued and outstanding Warrants Number (000s) Amount ($000s) Balance, December 31, 2024 48,000 729 Issued in connection with 2025 Equity Financings 86,267 215 Issued for services 2,509 76 Balance, September 30, 2025 136,776 1,020 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 17 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS September 30, 2025 December 31, 2024 Number (000s) Amount ($000s) Number (000s) Amount ($000s) Consisting of: 2023 Purchase Warrants(1) 44,444 445 44,444 445 2023 Broker Warrants(2) 3,556 284 3,556 284 2025 Purchase Warrants(3) 86,267 215 - - 2025 Broker Warrants(4) 2,509 76 - - Total Warrants 136,776 1,020 48,000 729 (1) Each 2023 Purchase Warrant is exercisable for one Common Share at a price of $0.10/share until May 15, 2028. (2) Each 2023 Broker Warrant is exercisable for one unit at a price of $0.09/unit until May 15, 2028 with each unit comprising one Common Share as well as a warrant entitling the holder to subscribe for another Common Share at a price of $0.10/share until May 15, 2028. (3) Each 2025 Purchase Warrant is exercisable for one Common Share at a price of $0.05/share until March 5, 2028. (4) Each 2025 Broker Warrant is exercisable for one unit at a price of $0.0425/unit until March 5, 2028 with each unit comprising one Common Share as well as a warrant entitling the holder to subscribe for another Common Share at a price of $0.05/share until March 5, 2028. Following an Equity Financing and Debt Amendments on October 31, 2025, PPR Canadian Pref Holdco, LLC (and an affiliate of PCEP) holds new warrants exercisable for 379,024,000 PPR Common Shares (as described in Note 23). 12. NET INCOME (LOSS) PER SHARE Three Months Ended September 30 Nine Months Ended September 30 ($000s, except Common Shares and per share amounts) 2025 2024 2025 2024 (Restated)(1) (Restated)(1) Net income (loss) for the period ($000) (6,897) 5,039 (19,535) (6,841) Weighted average number of Common Shares (000s) Basic 1,401,576 729,199 1,359,436 720,476 Diluted 1,401,576 729,199 1,359,436 720,476 Net income (loss) per Common Share ($) Basic - $0.01 $(0.01) $(0.01) Diluted - $0.01 $(0.01) $(0.01) (1) Restated (Note 22). Per share information is calculated on the basis of the weighted average number of Common Shares outstanding during the period. Diluted per share information reflects the potential dilution that could occur if securities or other contracts to issue Common Shares were exercised or converted to Common Shares. Diluted per share information is calculated using a method which assumes that any proceeds received by the Company upon the exercise of in-the-money stock options or warrants plus unamortized share-based compensation expense would be used to buy back Common Shares at the average market price for the period. Diluted net loss per share is calculated using the basic weighted average Common Shares. The weighted average diluted Common Shares outstanding for the three and nine months ended September 30, 2025 and the nine months ended September 30, 2024, exclude the impact of all outstanding equity-settled awards issued under the Company's long-term incentive plans and Warrants as they were anti-dilutive. 13. SHARE-BASED COMPE --- NSATION As part of its long-term incentive plans, PPR’s equity compensation arrangements consist of its stock option plan (“Option Plan”) and incentive security plan (“Incentive Security Plan”). Option Plan The Option Plan provides for the grant from time to time to directors, officers, employees and consultants of the Company of stock options to purchase Common Shares at a specified exercise price determined at the time of grant (“Options”). Under the Company’s Option Plan, Options granted typically vest evenly over a three-year period and expire 5 years after the grant date. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 18 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS The following table summarizes the number of Options under the Option Plan: Number of Options Weighted Average Exercise Price Balance, December 31, 2024 64,902,418 $0.04 Exercised (18,596) $0.05 Forfeited or expired (1,028,822) $0.11 Balance, September 30, 2025 63,855,000 $0.04 Exercisable, September 30, 2025 1,015,000 $0.14 The following table summarizes the Company’s outstanding Options at September 30, 2025: Options Outstanding Options Exercisable Year of Grant Number Remaining contractual life (years) Weighted Average Exercise Price Number Remaining contractual life (years) Weighted Average Exercise Price 2022 320,000 1.5 $0.28 320,000 1.5 $0.28 2024 63,535,000 4.2 $0.04 695,000 3.5 $0.08 Total 63,855,000 4.2 $0.04 1,015,000 2.9 $0.14 Incentive Security Plan The Incentive Security Plan provides for the grant from time to time to directors, officers and employees of the Company of "phantom" unit awards in the form of deferred share units ("DSUs"), restricted share units ("RSUs") and performance share units ("PSUs"). DSUs may be granted to non-management directors of the Company. DSUs vest immediately upon granting but no payment in respect of DSUs is made until the participant ceases to be a director. DSUs may be settled in Common Shares (by issuance from treasury or through the delivery of Common Shares purchased through the open market) or cash at the discretion of the Company. RSUs may be granted to employees and management. RSUs vest evenly over a three-year period and will be settled in Common Shares or cash at the discretion of the Company. As it is PPR’s intention to settle these unit awards in Common Shares, this plan is accounted for as equity-settled. The following table summarizes the number of awards under the Incentive Security Plan: DSUs RSUs Balance, December 31, 2024 2,000,000 6,690,000 Settled - (463,336) Balance, September 30, 2025 2,000,000 6,226,664 Share-based compensation Three Months Ended September 30 Nine Months Ended September 30 ($000s) 2025 2024 2025 2024 Stock Options 387 40 1,176 61 DSUs - - - - RSUs 39 22 126 109 Total shared-based compensation 426 62 1,302 170 Capitalized to property and equipment (Notes 6) (32) - (96) - Expensed in general and administrative expenses (Note 17) 394 62 1,206 170 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 19 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS 14. SUPPLEMENTAL INFORMATION Cash Flow The following table details the components of non-cash working capital: Three Months Ended September 30 Nine Months Ended September 30 ($000s) 2025 2024 2025 2024 (Restated)( --- 1) Provided by (used in): Accounts receivable 1,030 486 1,096 2,772 Prepaid expenses 693 (739) (83) (65) Other assets - - 45 - Accounts payable and accrued liabilities(1) (1,314) 218 (4,298) (5,020) 409 (35) (3,240) (2,313) Provided by (used in): Operating activities(1) 108 579 (2,832) (1,257) Investing activities (156) (614) (1,774) (1,056) Financing activities 457 - 1,366 - 409 (35) (3,240) (2,313) Cash interest paid – excludes debt repayments 77 160 286 555 Debt repayments - - 888 20,000 (1) Restated (Note 22). Financial Liabilities Reconciliation Changes in liabilities arising from financing activities: ($000s) First Lien Loan Accrued Cash Interest Repayment First Lien Loan Debt Second Lien Note Debt Balance, December 31, 2024 - 50,301 5,271 Cash items Debt advanced - - 821 Debt repayments - (888) - Non-cash changes Interest expense and finance costs - Debt - 9,604 1,626 Unrealized foreign exchange (gain) loss - (238) (159) Loss (gain) on debt modification / fair value adjustment (Note 8) - (246) 111 Accrued repayments 458 (458) - Balance, September 30, 2025 458 58,075 7,670 15. REVENUE Three Months Ended September 30 Nine Months Ended September 30 ($000s) 2025 2024 2025 2024 Crude oil and condensate 8,699 8,894 29,120 28,394 Natural gas liquids 333 386 1,204 1,159 Natural gas 362 371 2,697 2,582 Petroleum and natural gas sales 9,394 9,651 33,021 32,135 Included in accounts receivable at September 30, 2025 was $3.0 million of accrued petroleum and natural gas sales related to September 2025 production (December 31, 2024 – $4.1 million related to December 2024 production). NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 20 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS 16. OPERATING EXPENSES Three Months Ended September 30 Nine Months Ended September 30 ($000s) 2025 2024 2025 2024 (Restated)(1) (Restated)(1) Lease operating expense(1) 4,138 4,323 11,830 15,253 Transportation and processing expenses 1,224 733 4,248 3,391 Production, property and carbon taxes 1,055 330 2,638 2,652 Operating expense 6,417 5,386 18,716 21,296 (1) Restated (Note 22). 17. GENERAL AND ADMINISTRATIVE (“G&A”) EXPENSES Three Months Ended September 30 Nine Months Ended September 30 ($000s) 2025 2024 2025 2024 G&A costs 1,911 1,990 5,796 6,162 Share-based compensation expense (Note 13) 394 62 1,206 170 Gross G&A expense 2,305 2,052 7,002 6,332 G&A costs capitalized to property and equipment (Note 6) (65) (10) (451) (87) G&A expenses 2,240 2,042 6,551 6,245 18. FINANCE COSTS Three Months Ended September 30 Nine Months Ended September 30 ($000s) 2025 2024 2025 2024 Interest expense and finance costs – Debt 3,943 3,162 11,230 8,559 Interest expense - Lease liabilities (Note 9) 67 149 279 531 Interest expense - Other 11 12 8 25 Interest income (14) (186) (40) (186) Accretion expense – Decommissioning liabilities (Note 10) 601 615 1,803 2,005 Accretion expense – Other liabilities 15 - 45 - Finance costs 4,623 3,752 13,325 10,934 19. FINANCIAL INSTRUMENTS AND CAPITAL MANAGEMENT Fair Value of Financial Instruments During the nine months ended September 30, 2025 and 2024, there were no transfers among Levels 1, 2 and 3 of the fair value hierarchy (Note 3 of the Annual Financial Statements). Risk Management The Company’s activities expose it to a variety of financial risks that arise as a result of its exploration, development production and financing ac --- tivities such as: ? Credit risk; ? Liquidity risk; and ? Market risk This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives, policies and processes for measuring and managing risk and the Company’s management of capital. The Board of Directors oversees management’s establishment and execution of the Company’s risk management framework. Management has implemented, and monitors compliance with, risk management policies. The Company’s risk management policies are established to identify and analyze the risks faced by the NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 21 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS Company, to set appropriate risk limits and controls, and to monitor risks and adherence to market conditions and the Company’s activities. Credit Risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s accounts receivables from joint operators and petroleum and natural gas marketers. Cash, Restricted Cash and Restricted Deposits The Company limits its exposure to credit risk related to cash, restricted cash and restricted deposits by depositing its excess cash at September 30, 2025 of $1.3 million (December 31, 2024 - $4.7 million) and restricted deposits of $4.1 million (December 31, 2024 – $4.1 million) only with financial institutions that have investment grade credit ratings. The restricted deposits includes guaranteed investment certificates with maturity dates of one year or less. Accounts Receivable All of the Company’s operations are conducted in Canada. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. All of the Company’s petroleum and natural gas production is marketed under standard industry terms. Accounts receivable from petroleum and natural gas marketers are normally collected on the 25th day of the month following production. The Company’s policy to mitigate credit risk associated with these balances is to establish marketing relationships with a number of large purchasers and by entering into sales contracts with only established, credit-worthy counterparties. The Company historically has not experienced any collection issues with its petroleum and natural gas marketers. PPR executes its derivative contracts with credit-worthy counterparties believed to have low credit risk. The Company historically has not experienced any collection issues with its derivative instruments counterparties. Receivables from joint operators are typically collected within one to three months of the joint venture bill being issued. The Company attempts to mitigate the risk from joint venture receivables by obtaining the partners’ pre- approval of significant capital expenditures. However, the receivables are from participants in the petroleum and natural gas sector, and collection of the balances is dependent on industry factors such as commodity price fluctuations, escalating costs and the risk of unsuccessful drilling. In addition, further risks exist with joint operators as disagreements occasionally arise that may increase the potential for non-collection. The Company does not typically obtain collateral from its marketers or joint operators; howeve --- r, the Company can withhold production from joint operators in the event of non-payment or may be able to register security on the assets of joint operators. For the nine months ended September 30, 2025, PPR received approximately 71% of its revenue from two purchasers (2024 – 65% of its revenue from 3 purchasers). The maximum exposure to credit risk for loans and receivables at the reporting date by type of customer was: ($000s) September 30 2025 December 31 2024 Petroleum and natural gas marketing companies 3,107 4,346 Joint venture partners 824 953 Government agencies 381 374 Other 328 284 Total accounts receivable 4,640 5,957 The Company’s accounts receivable are aged as follows: Current (less than 90 days) 3,373 5,442 Past due (more than 90 days) 1,267 515 Total accounts receivable 4,640 5,957 PPR recognized an allowance for doubtful accounts of $0.5 million as at September 30, 2025 (December 31, 2024 - $0.2 million). When determining whether amounts that are past due are collectible, management assesses the creditworthiness and past payment history of NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 22 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS the counterparty, as well as the nature of the past due amount. Derivatives PPR executes with each of its derivative counterparties an International Swap and Derivatives Association, Inc. ("ISDA") Master Agreement, which is a standard industry form contract containing general terms and conditions applicable to many types of derivative transactions. As at September 30, 2025 and December 31, 2024, PPR had no outstanding derivative contracts. Liquidity Risk and Capital Management Liquidity Risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. As outlined in Note 8, at September 30, 2025, the Company had $nil borrowing capacity under the Second Lien Loan. This, and the information provided in Note 2 (Going Concern), results in material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern. As at September 30, 2025, PPR had outstanding letters of credit of $4.0 million (December 31, 2024 – $4.0 million). The letters of credit are issued by a financial institution at which PPR posted a cash deposit to cover letters of credit. The related deposit is classified as restricted deposit on the statement of financial position (Note 22) and the balance is invested in short-term market instruments with maturity dates of one year or less when purchased (see Cash, Restricted Cash and Restricted Deposit above). The following table details the cash flows and contractual maturities of the Company's financial liabilities at September 30, 2025: ($000s) Total <1 Year 1-3 Years 4-5 Years >5 Years Accounts payable and accrued liabilities 20,920 20,920 - - - Lease liabilities 995 782 167 12 34 Debt(1) 76,036 76,036 - - - Total 97,951 97,738 167 12 34 (1) Includes interest payments and the principal and deferred amounts payable on maturity on the Company's Revolving Facility and Second Lien Notes. Interest payments are estimated for the Revolving Facility using year-end outstanding borrowing and year-end prime interest rate plus applicable margins for the related borrowing periods (Note 8). Capital Management PPR’s objective when managing capital is to maintain a flexibl --- e capital structure and sufficient liquidity to meet its financial obligations and execute its business plans. The Company considers its capital structure to include shareholders’ equity, borrowings under its credit facilities and working capital. PPR monitors its capital structure using the Total Leverage Ratio (as defined in Note 8) to trailing twelve months’ EBITDAX (as defined in Note 8). The Total Leverage Ratio provides a measure of the Company’s ability to manage its debt levels under current operating conditions. The Company’s goal is to manage this ratio within the financial covenants imposed on it under its outstanding debt agreements. As at September 30, 2025, the Company was in breach of this financial covenant. Refer to Note 8 for additional details. Market Risk Market risk is the risk that changes in market prices, such as commodity prices, foreign exchange rates and interest rates will affect the Company’s income or the value of the financial instruments. The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimizing returns. The Company may use financial derivative contracts to manage market risks as disclosed below. All such transactions are conducted within risk management tolerances that are reviewed by the Board of Directors. Currency Risk Currency risk is the risk that the fair value of future cash flows will fluctuate as a result of changes in foreign exchange rates. Substantially all of the Company’s petroleum and natural gas sales are conducted in Canada and are denominated in Canadian dollars. Canadian commodity prices are influenced by fluctuations in the Canada to United States dollar exchange rate. Prices for oil are determined in NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 23 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS global markets and generally denominated in United States dollars. The Company is exposed to currency risk in relation to its US dollar denominated long-term debt. The exposure to fluctuations of the US dollar and Canadian dollar exchange rate, serves as natural hedges to the US dollar denominated debt. Interest Rate Risk Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates. The interest charged on the debt fluctuates with changes in interest rates. The Company is exposed to interest rate risk related to borrowings that are drawn under the First Lien Loan and the Second Lien Notes. A change in interest rates by 100 basis points would have changed net loss by approximately $0.7 million in the nine months ended September 30, 2025 (2024 – $0.5 million), assuming all other variables remain constant. Commodity Price Risk Commodity price risk is the risk that the fair value of future cash flows will fluctuate as a result of changes in commodity prices. Commodity prices for oil and natural gas are impacted not only by the relationship between the Canadian and United States dollars but also worldwide economic events that influence supply and demand. PPR may enter into derivative instruments to manage its exposure to commodity price risk caused by fluctuations in commodity prices, which have served to protect and provide certainty on a portion of the Company’s cash flows. As at September 30, 2025 and December 31, 2024, PPR had no outstanding deriv --- ative contracts. 20. RELATED PARTY TRANSACTIONS PCEP Canadian Holdco, LLC is the immediate holding and parent company of PPR. Please see Note 11 with regards to PCEP's participation in the equity offerings in February 2025 and March 2025. The First Lien Loan is held with PGIM, Inc., the ultimate parent of PPR. The First Lien Loan and related transactions are described in Note 8. The Second Lien Notes are held by Prudential Capital Energy Partners, L.P., a subsidiary of PPR's ultimate parent, PGIM. The Second Lien Notes and related transactions are described in Note 8. The First Lien Loan debt is held by PGIM, Inc.'s general account (the “Senior Debt”) and the Senior Debt is separately managed from the Second Lien Notes and equity held by the PGIM Capital Partners mezzanine fund (held by PCEP). There is a wall separating the management of the Senior Debt and PCEP, and all negotiations with the management of the Senior Debt are conducted at arm's-length, consistent with negotiations with other third parties. Following an Equity Financing and Debt Amendments on October 31, 2025, PPR Canadian Pref Holdco, LLC (and an affiliate of PCEP) holds (i) 264,848 Class A preferred shares in the capital of the Company’s subsidiary, Prairie Provident Resources Canada Ltd.; and (ii) new warrants exercisable for 379,024,000 PPR Common Shares (as described in Note 23). 21. COMMITMENTS AND CONTINGENCIES At September 30, 2025, in addition to the Company’s lease liabilities (Note 9) and debt and other financial liabilities (Notes 8 and 19), the Company has non-cancellable contractual obligations summarized as follows: ($000s) <1 Year 1-3 Years 4-5 Years >5 Years Total Leases - variable 182 288 - - 470 Firm transportation agreements 181 6 - - 187 Other agreements 206 89 40 184 519 Total 569 383 40 184 1,176 The table above excludes contractual obligations for lease payments which are recorded as lease liabilities on the consolidated statement of financial position (Note 9). NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 24 | PRAIRIE PROVIDENT RESOURCES INC. | Q3 2025 FINANCIAL STATEMENTS Contingencies PPR is involved in litigation and claims arising in the normal course of operations. 22. RESTATEMENTS At December 31, 2024 and in the fourth quarter of 2024, the Company made certain corrections to the prior period financial statements as outlined in Note 24 of the Annual Financial Statements. Prior period comparative information has been restated to reflect those adjustments. Note 24 of the Annual Financial Statements also details the impact to affected prior period financial statements, including December 31, 2023 financial statement line items (audited) and interim period results for the three and nine months ended September 30, 2024 financial statement line items (unaudited) of those restatements. 23. SUBSEQUENT EVENTS Preferred Share investment and Debt Amendments On October 31, 2025, the Company completed a preferred share financing (the “Equity Financing”), raising $26.5 million in gross proceeds, and concluded amendments to its debt agreements to extend maturities by 24 months, defer cash interest obligations through 2026, and adjust financial covenants (the “Debt Amendments”). Equity Financing The Equity Financing was completed through a sale of 264,848 Class A preferred shares (“Preferred Shares”) in the capital of the Company’s subsidiary, Prairie Prov --- ident Resources Canada Ltd. (“PPRC”), to PPR Canadian Pref Holdco, LLC (the “Purchaser” or “PCPH”), an affiliate of the Company’s largest shareholder, PCEP, at an issue price of C$100 per share for total gross proceeds of C$26,484,800. The Preferred Shares are non-voting (except as required by applicable law), rank senior to all other classes of PPRC equity, and carry an 8% annual yield, accruing daily and compounded annually. The original issue price plus the accrued yield (the “Payout Amount”) is payable by PPRC upon redemption or retraction of the Preferred Shares, or upon a liquidation or a corporate sale, business combination or sale of all or substantially all of the assets of the Company or PPRC (a “Liquidity Event”). The Preferred Shares are redeemable by PPRC or retractable by the Purchaser for the Payout Amount at any time on or after March 31, 2031. On a redemption by PPRC, the Payout Amount must be paid in cash. If on a retraction by the Purchaser the full Payout Amount is not immediately satisfied, then PPRC’s payment obligation in respect of the Payout Amount will constitute an unsecured, subordinated debt bearing interest at 8% per annum until paid, will not be repayable before two years from the retraction date, and will be guaranteed by the Company. In such event, the Company and PPRC will enter into such agreements as may be required by the Purchaser and under any applicable lending arrangements then in effect to evidence the debt, provide for the guarantee, and address intercreditor arrangements relative to the Company’s secured creditors at the time. In the circumstances of a Liquidity Event, PPRC or the Company, as the case may be, has a call right to acquire the Preferred Shares for the Payout Amount (the “Call Right”), and the Purchaser has a put right to require that PPRC or the Company, as applicable, acquire the Preferred Shares for the Payout Amount (the “Put Right”), payable in either case at the Purchaser’s option in cash or in PPR Common Shares based on their market value at the time. In consideration for arranging the Equity Financing, the Purchaser was also issued warrants (the “Warrants”) entitling the holder to acquire, for no additional consideration, an aggregate of 379,024,000 Common Shares. The Warrants will be exercisable for the underlying Common Shares upon redemption or retraction of the Preferred Shares, or a Liquidity Event. Each Warrant will be exercisable for one Common Share, subject to adjustment in certain events. The Company will, if requested by the Purchaser and subject to receipt of necessary regulatory (including stock exchange) and shareholder approvals, accommodate a future exchange of the Preferred Shares for preferred shares of the Company having substantially equivalent rights and seek all such approvals to do so, failing which each Warrant will become exercisable for 1.5 shares instead of 1 share. In connection with closing of the Equity Financing, the existing Investor Rights Agreement between the Company and PPRC, on the one hand, and PCEP and certain of its affiliates, on the other, was amended to add the Purchaser as a party entitled to the benefits thereof, and to provide the investor parties with (i) incremental board observer rights, (ii) the right to require that the Company undertake a NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the three months and nine months ended September 30, 2025 and 2024 25 | PRAIRIE PROVIDENT RESOURCES INC. --- | Q3 2025 FINANCIAL STATEMENTS strategic alternatives review process, (iii) a consent right with respect to any future issue of shares or convertible securities, (iv) covenants substantially similar to those currently owed by the Company pursuant to the Second Lien Notes, to become operative if the First Lien Loan, Second Lien Notes and any other senior debt ceases to be outstanding, and (v) information rights substantially similar to those currently provided to the holders of the Second Lien Notes. Debt Amendments The Debt Amendments provide for: (i) 24-month extensions to the maturity date of both the First Lien Loan (to March 31, 2028) and the Second Lien Notes (to September 30, 2028); (ii) allowance for the Company to defer all cash interest obligations on the First Lien Loan through 2026 (with cash interest obligations to resume March 31, 2027 for the quarter then ended), and instead capitalize such amounts as additional principal; and (iii) adjustments to financial covenants to align with current expectations for the extended term to maturity. The lenders under the First Lien Loan and the holders of the Second Lien Notes are affiliates of PCEP. Regulatory Matters As more particularly outlined in the Company’s news release of October 21, 2025 announcing term sheets for the Equity Financing and Debt Amendments, the Company had applied to the Toronto Stock Exchange (“TSX”) pursuant to the ‘financial hardship’ provisions of section 604(e) of the TSX Company Manual for an exemption from any shareholder approval requirement that would otherwise apply in respect of the Equity Financing and the Debt Amendments, on the basis that, as determined by the Company’s board of directors, the Company was in serious financial difficulty, the transactions are designed to improve its financial situation, and the transaction terms were reasonable in the circumstances. TSX accepted the Company’s application to rely on this exemption. As a consequence of the application, the TSX has placed the Company under a 120-day remedial delisting review, which is normal practice when a listed issuer seeks to rely on this exemption. Although the Company currently believes that it will be in compliance with all continued listing requirements of the TSX upon conclusion of a delisting review, no assurance can be provided as to the outcome of that review and, therefore, on the Company’s continued qualification for listing on the TSX. Insofar as the Purchaser, the lenders under the First Lien Loan, and the holders of the Second Lien Notes are all affiliates of PCEP, which as the holder of more than 80% of the outstanding PPR Common Shares is a control person of the Company under applicable securities laws, each such lender and holder is itself a ‘related party’ of the Company within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and, accordingly, the Equity Financing and Debt Amendments each constitute a ‘related party transaction’ for the Company under MI 61-101. The Company has determined that the Equity Financing and Debt Amendments were exempt from the formal valuation and minority approval requirements of MI 61-101 pursuant to the ‘financial hardship’ exemptions contained, respectively, in sections 5.5(g) and 5.7(1)(e) thereof, based on the determinations of the Company’s board of directors referred to above. The Company did not file a material change report 21 days before completion of --- the Equity Financing and Debt Amendments, as the Company’s financial condition required timely completion. Related Party holdings Before giving effect to completion of the Equity Financing, PCEP held 1,123,810,063 Common Shares, representing approximately 80.2% of the total PPR Common Shares currently outstanding on an undiluted basis, plus warrants ("Existing Warrants") to purchase an additional 54,508,872 Common Shares, which if exercised today would result in PCEP holding approximately 80.9% of the PPR Common Shares that would be outstanding immediately following such exercise. On completion of the Equity Financing, PCPH, an affiliate of PCEP, acquires new Warrants exercisable for 379,024,000 PPR Common Shares (subject to adjustment in certain events) as described above. Additionally, the PPRC Preferred Shares acquired by PCPH under the Equity Financing are subject to the Put Right, an exercise by PCPH of which could result in PPRC or the Company becoming obligated to acquire the Preferred Shares, for an amount equal to the Payout Amount at the time, payable (if so elected by PCPH) in Common Shares based on their market value at the time. CORPORATE INFORMATION BOARD OF DIRECTORS AUDITORS Dale Miller Ernst & Young LLP Executive Chairman Calgary, Alberta Glenn Hamilton BANKERS Independent Director ATB Financial Kathy Turgeon Calgary, Alberta Independent Director LEGAL COUNSEL Matthew Shyba Independent Director Bennett Jones LLP Calgary, Alberta OFFICERS EVALUATION ENGINEERS Dale Miller Trimble Engineering Associates Ltd. Executive Chairman Calgary, Alberta Richard Greenough REGISTRAR & TRANSFER AGENT Interim Chief Financial Officer Alliance Trust Company Amber Wright Calgary, Alberta Vice President, Operations & Engineering STOCK TRADING HEAD OFFICE Toronto Stock Exchange (“TSX”) Trading Symbol: PPR #1000, 500 – 4th Avenue SW Calgary, AB T2P 2V6 Tel: (403) 292-8000 Web: www.ppr.ca Email: [email protected]