SEDAR Interim Financial Statements

TOPAZ ENERGY CORP. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS As at September 30, 2025 and for the three and nine months ended September 30, 2025 and 2024 FINANCIAL STATEMENTS | 2 TOPAZ ENERGY CORP. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at ($000s) (unaudited) Sept. 30, 2025 Dec. 31, 2024 Assets Current Assets Cash $ 431 $ 147 Accounts receivable (note 12) 46,060 52,485 Prepaids and deposits 355 786 Fair value of financial instruments (note 5) 6,715 10,603 Total Current Assets 53,561 64,021 Fair value of financial instruments (note 5) 865 2,335 Petroleum and natural gas interests (note 7) 1,792,934 1,828,258 Total Assets $ 1,847,360 $ 1,894,614 Liabilities and Shareholders’ Equity Accounts payable and accrued liabilities (note 6) $ 77,619 $ 6,274 Fair value of financial instruments (note 5) 2,575 5,989 Total Current Liabilities 80,194 12,263 Fair value of financial instruments (note 5) 1,245 4,913 Deferred income tax liability 37,995 15,338 Bank debt (note 8) 504,639 540,396 Decommissioning obligation (note 9) 5,621 5,419 Total Liabilities 629,694 578,329 Shareholders’ Equity Share capital (note 10) 1,741,045 1,734,408 Contributed surplus 62,098 63,827 Deficit (585,477) (481,950) Total Shareholders’ Equity 1,217,666 1,316,285 Total Liabilities and Shareholders’ Equity $ 1,847,360 $ 1,894,614 Refer to accompanying notes to the consolidated financial statements Subsequent events (notes 5 and 14) FINANCIAL STATEMENTS | 3 TOPAZ ENERGY CORP. CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME For the periods ended Three months Nine months ($000s, except for share information) (unaudited) Sept. 30, 2025 Sept. 30, 2024 Sept. 30, 2025 Sept. 30, 2024 Royalty production revenue (note 12) $ 52,291 $ 52,692 $ 179,342 $ 173,192 Processing revenue (note 12) 21,221 18,279 60,977 47,539 Other income 2,931 2,626 9,467 9,488 Realized gain on financial instruments (note 5) 8,737 4,716 14,724 7,852 Unrealized gain (loss) on financial instruments (note 5) (4,764) 9,788 1,724 4,889 80,416 88,101 266,234 242,960 Expenses Operating 1,545 2,209 5,503 5,749 Marketing 307 279 1,122 1,004 General and administrative 1,864 1,730 5,936 5,326 Share-based compensation (note 10) 1,350 1,143 2,973 2,364 Finance (note 13) 6,824 7,263 20,309 20,995 Depletion and depreciation (note 7) 52,197 49,678 157,247 148,070 64,087 62,302 193,090 183,508 Net income before taxes 16,329 25,799 73,144 59,452 Deferred tax expense 4,972 7,759 21,340 17,492 Net income and comprehensive income 11,357 18,040 51,804 41,960 Net income per common share Basic (note 11) $ 0.07 $ 0.12 $ 0.34 $ 0.29 Diluted (note 11) $ 0.07 $ 0.12 $ 0.34 $ 0.29 Refer to accompanying notes to the consolidated financial statements FINANCIAL STATEMENTS | 4 TOPAZ ENERGY CORP. CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY ($000s) (unaudited) Share Capital Contributed Surplus Retained Earnings (deficit) Total Shareholders Equity Balance, Dec. 31, 2023 $1,525,700 $55,247 $(337,169) $1,243,778 Exercise of share-based awards 2,541 (1,174) - 1,367 Share-based compensation - 4,372 - 4,372 Tax deduction on excess value of share-based awards - 124 - 124 Net income - - 41,960 41,960 Dividends to common shareholders - - (140,550) (140,550) Balance, Sept. 30, 2024 $1,528,241 $58,569 $(435,759) $1,151,051 Issue of common shares - bought deal financing 201,653 - - 201,653 Issue of common shares - private placement 5,240 - - 5,240 Exercise of share-based awards 5,964 (2,199) - 3,765 Share issu --- e costs, net of tax (6,690) - - (6,690) Share-based compensation - 5,956 - 5,956 Tax deduction on excess value of share-based awards - 1,501 - 1,501 Net income - - 4,426 4,426 Dividends to common shareholders - - (50,617) (50,617) Balance, Dec. 31, 2024 $1,734,408 $63,827 $(481,950) $1,316,285 ($000s) (unaudited) Share Capital Contributed Surplus Retained Earnings (deficit) Total Shareholders Equity Balance, Dec. 31, 2024 $1,734,408 $63,827 $(481,950) $1,316,285 Exercise of share-based awards (note 10) 6,637 (5,673) - 964 Share based compensation (note 10) - 5,261 - 5,261 Tax deduction on excess value of share-based awards - (1,317) - (1,317) Net income - - 51,804 51,804 Dividends to common shareholders (note 10) - - (155,331) (155,331) Balance, Sept. 30, 2025 $1,741,045 $62,098 $(585,477) $1,217,666 Refer to accompanying notes to the consolidated financial statements FINANCIAL STATEMENTS | 5 TOPAZ ENERGY CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS For the periods ended Three months Nine months ($000s, except for share information) (unaudited) Sept. 30, 2025 Sept. 30, 2024 Sept. 30, 2025 Sept. 30, 2024 Operating Activities Net income $ 11,357 $ 18,040 $ 51,804 $ 41,960 Items not affecting cash: Unrealized gain (loss) on financial instruments (note 5) 4,764 (9,788) (1,724) (4,889) Accretion expense (note 9) 50 40 145 116 Share-based compensation (note 10) 1,350 1,143 2,973 2,364 Amortization of debt transaction costs (note 13) 154 100 423 353 Depletion and depreciation (note 7) 52,197 49,678 157,247 148,070 Deferred income tax expense 4,972 7,759 21,340 17,492 Cash flow 74,844 66,972 232,208 205,466 Net change in non-cash working capital 3,303 4,281 7,409 5,875 Cash from operating activities 78,147 71,253 239,617 211,341 Financing Activities Exercise of share-based awards 964 550 964 1,367 Borrowings (repayments) on bank debt (note 8) (21,000) (22,824) (34,500) 27,540 Debt transaction costs - (13) (1,680) (13) Dividends paid (note 10) (52,303) (47,827) (155,331) (140,550) Net change in non-cash working capital (3,620) - 52 - Cash used in financing activities (75,959) (70,114) (190,495) (111,656) Investing Activities Petroleum and natural gas interests (note 7) (1,864) (2,183) (4,374) (4,912) Work in progress capital costs - (5,585) - (21,295) Property and infrastructure acquisitions (note 6) (71,733) - (115,204) (99,189) Net change in non-cash working capital 71,534 6,629 70,740 22,250 Cash used in investing activities (2,063) (1,139) (48,838) (103,146) Increase (decrease) in cash 125 - 284 (3,461) Cash and cash equivalents, beginning 306 - 147 3,461 Cash and cash equivalents, end $ 431 $ - $ 431 $ - Refer to accompanying notes to the consolidated financial statements FINANCIAL STATEMENTS | 6 Notes to the Interim Condensed Consolidated Financial Statements As at September 30, 2025 and for the three and nine months ended September 30, 2025 and 2024 (amounts in thousands of Canadian dollars unless otherwise noted) (unaudited) 1. NATURE OF THE ORGANIZATION Topaz Energy Corp. ("Topaz" or the "Company") is a royalty and infrastructure energy company focused on generating low- risk income and paying dividends to its shareholders, while strategically investing in additional revenue-generating assets to provide growth. The Company was incorporated under the laws of the Province of Alberta on October 13, 2006. These unaudited interim condensed consolidated financial statements reflect only the Company’s proportionate interest in its business acti --- vities and comprise Topaz Energy Corp. and its subsidiaries; Reserve Royalty Commercial Trust, Reserve Royalty GP Ltd., Reserve Royalty GP#2 Ltd., Reserve Royalty Limited Partnership, Reserve Royalty (Manitoba) Limited Partnership, 2377100 Alberta Ltd., and Jarvie Royalty Partnership. The Company’s registered office is located at Suite 2400, 525 – 8th Avenue S.W., Calgary, Alberta, Canada T2P 1G1. 2. BASIS OF PREPARATION (a) Statement of compliance These unaudited interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting”. These unaudited interim condensed consolidated financial statements do not include all of the information and disclosure required in the annual consolidated financial statements and should be read in conjunction with the Company’s annual consolidated financial statements as at and for the years ended December 31, 2024 and 2023. These unaudited interim condensed consolidated financial statements have been prepared on a going-concern basis, amounts are in thousands of Canadian dollars unless otherwise stated and were authorized for issuance by the Company’s Board of Directors on November 3, 2025. (b) Functional and presentation currency These unaudited interim condensed consolidated financial statements are presented in Canadian dollars, which is the functional currency of Topaz. (c) Accounting policies and significant judgments The accounting policies and significant accounting judgments, estimates, and assumptions used in these unaudited interim condensed consolidated financial statements are consistent with those described in notes 2 and 3 of the Company’s annual consolidated financial statements as at and for the years ended December 31, 2024 and 2023. (d) Geopolitical uncertainty Over the past few years, the market has experienced volatile supply and demand changes, ranging from excess supply to significant supply and demand volatility attributed to the global health crisis and the current geopolitical environment, including recent uncertainties surrounding tariffs. Geopolitical events continue to have an impact on the global economy which can lead to fluctuations in global trade, economies and financial markets. These political changes create uncertainty about future government policies, regulations and trade relationships between major global economies which may result in broad-based volatility in energy markets. Adverse changes to trade relations, including tariffs, between the governments of the United States, Canada and Mexico, may have a long-term impact on the Company’s results of operations, access to capital and/or financial position. (e) Accounting changes In April 2024, the IASB issued a new Accounting Standard IFRS 18 Presentation and Disclosure in Financial Statements, which will replace IAS 1 Presentation of Financial Statements. The new accounting standard will change how items of net income are presented on the face of the Consolidated Statements of Net Income and Comprehensive Income and disclose information in the notes to the financial statements. As well, management-defined performance measures will now be disclosed in the financial statements and subject to audit. The new Accounting Standard is effective from January 1, 2027, FINANCIAL STATEMENTS | 7 and applies retrospectively. Early adoption is permitted. The Company is assessing the potential effects of this new accounting standard. 3. CAPITAL --- MANAGEMENT In order to manage its capital structure, the Company’s objective is to maintain financial flexibility in order to distribute cash to shareholders in the form of dividends after considering the Company’s operational financial requirements and its future growth opportunities. As a royalty and non-operated infrastructure company, Topaz does not have any significant capital expenditure commitments, which enhances its financial flexibility. The Company considers its capital structure to include shareholders’ equity, bank debt and working capital. In order to maintain or adjust the capital structure, the Company may from time-to-time issue equity, utilize available credit facilities, adjust its dividend distributions and/or adjust its investment activities to manage current and forecast debt levels. The Company’s operating results, and capital structure are impacted by royalty production volumes, commodity prices and third- party revenue generated at its non-operated processing facilities or through its contracted third-party income. The Company’s capital structure is managed through its financial and operating forecast process. The forecast of the Company’s future cash flows is based on estimates of royalty interest production, natural gas, crude oil and natural gas liquids prices, third-party facility utilization, operating and marketing expense, administrative expenses, taxes and other investing and financing activities. The forecast is regularly updated based on changes in commodity prices, royalty interest production expectations, third-party facility utilization expectations and other factors that, in the Company’s view, could impact cash from operating activities. Management uses the terms “adjusted working capital”, “net debt”, free cash flow (“FCF”) and “Excess FCF” to measure the Company’s liquidity position and capital flexibility, as such these terms are considered capital management measures. “Adjusted working capital” is calculated as current assets less current liabilities, adjusted for financial instruments and work in progress capital costs. “Net debt” is calculated as total debt outstanding less adjusted working capital. “FCF” is defined as cash flow less capital expenditures and provides a measure of cash available after capital costs, but before acquisitions. Excess FCF is defined as FCF less dividends paid. Management uses FCF for its own performance measures and to provide investors with a measure of the Company’s efficiency and its ability to generate the cash necessary to fund or increase dividends, fund future growth opportunities and/or to repay debt. As at September 30, 2025, the Company had an adjusted working capital deficit of $30.8 million (December 31, 2024 – adjusted working capital of $48.4 million), unutilized capacity of $193.5 million on its Syndicated Credit Facility (note 8), and $300.0 million of additional capacity available through an accordion feature (subject to agent consent). Net debt at September 30, 2025 was $535.4 million, compared to net debt at December 31, 2024 of $492.0 million. During the nine months ended September 30, 2025, the Company generated cash flow of $232.2 million, completed $115.4 million in acquisitions, paid dividends of $155.3 million, and increased net debt by $43.4 million. A reconciliation of working capital to adjusted working capital and net debt as at September 30, 2025 and December 31, 2024 is provided below. As at ($000s) Sept. 30, 2025 Dec. 31, 2024 Work --- ing capital (deficit) (26,633) 51,758 Exclude fair value of financial asset 4,140 4,614 Exclude work in progress capital costs - (1,228) Adjusted working capital (deficit) (30,773) 48,372 Less: bank debt 504,639 540,396 Net debt 535,412 492,024 For the three months ended September 30, 2025, the Company generated FCF of $73.0 million (three months ended September 30, 2024 - $64.8 million), after capital expenditures of $1.9 million (three months ended September 30, 2024 - $2.2 million). After the payment of dividends, Topaz generated $20.7 million of Excess FCF during the three months ended September 30, 2025 (three months ended September 30, 2024 - $17.0 million). FINANCIAL STATEMENTS | 8 For the nine months ended September 30, 2025, the Company generated FCF of $227.8 million (nine months ended September 30, 2024 - $200.6 million), after capital expenditures of $4.4 million (nine months ended September 30, 2024 - $4.9 million). After the payment of dividends, Topaz generated $72.5 million of Excess FCF during the nine months ended September 30, 2025 (nine months ended September 30, 2024 - $60.0 million). A reconciliation of FCF and excess FCF for the three and nine months ended September 30, 2025 and 2024 is outlined below. Three months Nine months For the periods ended ($000s) Sept. 30, 2025 Sept. 30, 2024 Sept. 30, 2025 Sept. 30, 2024 Cash from operating activities 78,147 71,253 239,617 211,341 Exclude net change in non-cash working capital 3,303 4,281 7,409 5,875 Cash flow 74,844 66,972 232,208 205,466 Less: Capital expenditures 1,864 2,183 4,374 4,912 FCF 72,980 64,789 227,834 200,554 Less: Dividends 52,303 47,827 155,331 140,550 Excess FCF 20,677 16,962 72,503 60,004 4. DETERMINATION OF FAIR VALUE The Company’s fair value measurements require disclosure about how the fair value was determined based on significant levels of inputs described in the following hierarchy: Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 – Pricing inputs are other than quoted prices in active markets in Level 1. Prices in Level 2 are either directly or indirectly observable as of the reporting date. Level 2 valuations are based on inputs, including quoted forward prices for commodities, time value and volatility factors, which can be substantially observed or corroborated in the marketplace. Level 3 – Valuations in this level are those with inputs for the asset or liability that are not based on observable market data. Assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement within the fair value hierarchy level. The Company’s risk management contracts are considered Level 2. 5. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework, and the Board 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 Company, to set appropriate risk limits and controls, and to monitor risks and adherence to market conditions and the Company’s activities. The Company’s financial risks are consistent with those discussed in note 6 of the Company’s annual co --- nsolidated financial statements as at and for the years ended December 31, 2024 and 2023. As at September 30, 2025, the Company has entered into certain financial derivative contracts in order to mitigate exposure to commodity price volatility. These instruments are not used for trading or speculative purposes. The Company has not designated its financial derivative contracts as effective accounting hedges, even though the Company considers all commodity and foreign exchange rate contracts to be effective economic hedges. As a result, all such contracts are recorded on the interim condensed consolidated statements of financial position at fair value, with changes in fair value being recognized as an unrealized gain or loss on the interim condensed consolidated statements of net income and comprehensive income. FINANCIAL STATEMENTS | 9 The Company utilizes financial derivative contracts as a risk management technique to mitigate exposure to commodity price volatility. The following tables present, as at September 30, 2025, the outstanding commodity price financial derivative contracts and foreign exchange financial instruments. The fair value of Topaz’s total outstanding contracts is a net asset of $3.8 million as at September 30, 2025 (net asset of $2.0 million as at December 31, 2024) as detailed below. Contract type Q4 2025 Q1 2026 Q2 2026 Q3 2026 >1 year AECO (5A) fixed price Average Volumes (GJ/d) 28,333 17,500 25,000 25,000 11,250 W.A.(1) Price (C$/GJ) $2.90 $3.20 $2.98 $2.98 $3.13 NYMEX-Call option Average Volumes (mmbtu/d) - 15,000 15,000 15,000 15,000 W.A. (1) Price (USD$/mmbtu) - $4.50 $4.50 $4.50 $4.50 WTI CAD costless collar Average Volumes (bbl/d) 1,000 - - - - W.A. (1) price range (C$/bbl) $91.25 - $106.40 - - - - WTI CAD fixed price Average Volumes (bbl/d) 1,000 - - - - W.A. (1) Price (C$/bbl) $104.03 - - - - (1) Weighted average. Subsequent to September 30, 2025, the Company entered the following contracts: Contract type Q4 2025 Q1 2026 Q2 2026 Q3 2026 >1 year AECO (5A) fixed price Average Volumes (GJ/d) - - 5,000 5,000 1,685 W.A. (1) Price (C$/GJ) - - $2.78 $2.78 $2.78 At September 30, 2025, the Company had the following foreign exchange derivative contracts in place. Contract type and currency Term Notional Amount (US$000/month) Floor price Ceiling price USD/CAD variable rate collar October 2025 - December 2025 1,000 $ 1.3350 $ 1.4100 USD/CAD variable rate collar October 2025 - December 2025 3,000 $ 1.3400 $ 1.4200 USD/CAD variable rate collar October 2025 - December 2025 2,000 $ 1.3300 $ 1.4000 USD/CAD variable rate collar January 2026 - December 2026 2,000 $ 1.3200 $ 1.4050 Financial assets and liabilities are presented on a net basis if the Company has a legal right to offset and intends to either settle on a net basis or to realize the asset and settle the liability simultaneously. The Company offsets financial assets and liabilities when the counterparty, currency and timing of settlement are the same. As at September 30, 2025 and December 31, 2024, there were no financial derivative contracts presented on a net basis in the interim condensed consolidated statements of financial position. As at September 30, 2025 and December 31, 2024, the reconciliation of financial instruments to the consolidated statements of financial position includes: At Sept. 30, 2025 At Dec. 31, 2024 ($000s) Asset Liability Asset Liability Current financial instruments 6,715 2,575 10,603 5,989 Long term financial instruments 865 1,245 2,335 --- 4,913 The following table provides the realized and unrealized gains (losses) on financial instruments for the three and nine months ended September 30, 2025 and 2024. Three months Nine months For the periods ended ($000s) Sept. 30, 2025 Sept. 30, 2024 Sept. 30, 2025 Sept. 30, 2024 Realized gain on financial instruments 8,737 4,716 14,724 7,852 Unrealized gain (loss) on financial instruments (4,764) 9,788 1,724 4,889 Total 3,973 14,504 16,448 12,741 FINANCIAL STATEMENTS | 10 The Company’s financial derivative contracts are sensitive to fluctuations in commodity prices. For the commodity contracts in place at September 30, 2025, if the future strip prices for natural gas were $0.10 per mcf higher and future strip prices for crude oil were $1.00 per bbl higher, with all other variables held constant, the unrealized loss on commodity contracts for the nine months ended September 30, 2025 would increase by $1.2 million, directly impacting net income (unrealized gain for the nine months ended September 30, 2024 would decrease by $1.8 million). An equal and opposite impact would have occurred if natural gas prices were $0.10 per mcf lower and crude oil prices were $1.00 per bbl lower. For the current foreign exchange contracts in place at September 30, 2025, if the future strip prices for USD/CAD exchange rate increased by $0.01, with all other variables held constant, the 2025 unrealized gain on foreign exchange contracts would be remain relatively unchanged, as the foreign exchange forward pricing would remain within the contract pricing collars. 6. ACQUISITIONS Three months Nine months For the periods ended ($000s) Sept. 30, 2025 Sept. 30, 2024 Sept. 30, 2025 Sept. 30, 2024 Royalty assets 71,733 - 88,365 - Infrastructure assets - - 27,064 99,646 Total acquisitions 71,733 - 115,429 99,646 On January 31, 2025, the Company acquired a gross overriding royalty interest across approximately 0.1 million gross acres (over 60% undeveloped) in the Alberta Montney, for total cash consideration of $17.0 million before customary closing adjustments. On January 31, 2025, the Company entered into a definitive agreement to acquire a 35% working interest in an Alberta Montney natural gas processing facility (the ‘Facility’). The Facility was commissioned on May 30, 2025, at which time the Company paid cash consideration of $26.0 million and the assumption of a decommissioning obligation of $0.3 million, before customary closing adjustments. The Facility is supported by contractual commitments that provide the Company with fixed take-or-pay revenue for a 15-year period. On September 30, 2025, the Company acquired a gross overriding royalty interest on approximately 0.1 million gross acres, (over 65% undeveloped), in its NEBC Montney core royalty area for total cash consideration of $71.7 million, before customary closing adjustments. The closing of the acquisition occurred on, and was recorded in accounts payable as at September 30, 2025, which was subsequently paid on October 1, 2025 due to the September 30, 2025 bank holiday. On June 24, 2024, the Company completed the acquisition of a 50% non-operated working interest in a newly commissioned natural gas and condensate facility, located in the Musreau area of the Alberta Montney (the ‘Musreau Facility’) for total cash consideration of $100.0 million and the assumption of a decommissioning obligation of $0.5 million, before customary closing adjustments. The Musreau Facility is supported by contractual co --- mmitments that provide the Company with fixed take-or-pay revenue for a 10-year term and preferential capacity dedication for a subsequent 7-year term. The Company applied the optional IFRS 3 concentration test to the acquisitions, which resulted in acquired assets being accounted for as asset acquisitions. FINANCIAL STATEMENTS | 11 7. PETROLEUM AND NATURAL GAS INTERESTS Cost ($000s) Balance, Dec. 31, 2023 2,260,657 Additions 7,330 Acquisitions 431,255 Change in decommissioning liabilities (75) Non-cash additions 4,966 Balance, Dec. 31, 2024 2,704,133 Additions 4,374 Acquisitions 115,429 Change in decommissioning liabilities (note 9) (168) Non-cash additions (note 10) 2,288 Balance, Sept. 30, 2025 2,826,056 Accumulated Depletion, Depreciation & Amortization (DD&A) ($000s) Balance, Dec. 31, 2023 (679,429) Depletion and depreciation (196,446) Balance, Dec. 31, 2024 (875,875) Depletion and depreciation (157,247) Balance, Sept. 30, 2025 (1,033,122) Net Book Value ($000s) Balance, Dec. 31, 2024 1,828,258 Balance, Sept. 30, 2025 1,792,934 8. BANK DEBT At September 30, 2025, Topaz had a covenant-based, unsecured, operating credit facility with a syndicate of Canadian banks in the amount of $700.0 million (“Syndicated Credit Facility”) which provides for a permitted increase to $1.0 billion, subject to agent consent. The maturity date is April 30, 2029. At the request of the Company and with consent of the lender, the Syndicated Credit Facility can be extended on an annual basis. The Syndicated Credit Facility includes borrowing options of prime rate loans, Secured Overnight Financing Rate (‘SOFR’) loans, U.S. base rate loans, letters of credit and Canadian Overnight Repo Rate Average (‘CORRA’) loans, which will bear interest on a variable pricing grid based on certain financial ratios, in addition to the prevailing applicable interest rate for the respective type of loan. Topaz’s effective interest rate for the nine months ended September 30, 2025 was 4.95% (December 31, 2024 – 6.47%). The Syndicated Credit Facility is subject to the following covenants, on a rolling four quarter basis: (i) the ratio of consolidated senior debt to EBITDA must not exceed 3.5:1, (ii) the ratio of total debt to EBITDA must not exceed 4.0:1, and (iii) the ratio of Total Debt to Capitalization must not exceed 55%. The terms “consolidated senior debt”, “EBITDA”, “total debt”, and “capitalization” for purposes of the financial covenants are defined as follows under the Syndicated Credit Facility: “consolidated senior debt” is consolidated total debt excluding any subordinated debt, “EBITDA” is consolidated net income or loss from continuing operations, excluding extraordinary items, plus interest expense, income taxes, and adjusted for non-cash items, gains or losses on dispositions, and material acquisitions in accordance with the credit agreement; “total debt” is the aggregate principal amount of all consolidated debt; all of which are determined in accordance with GAAP; “capitalization” is the aggregate of consolidated total debt, any convertible debentures and consolidated shareholders’ equity. FINANCIAL STATEMENTS | 12 The following tables reconcile each of the defined terms under the Syndicated Credit Facility as at and for the three and nine months ended September 30, 2025 and 2024. Three months Nine months For the periods ended ($000s) Sept. 30, 2025 Sept. 30, 2024 Sept. 30, 2025 Sept. 30, 2024 Net income 11,357 18,040 51,804 41,960 Unrealized loss (gain) on --- financial instruments 4,764 (9,788) (1,724) (4,889) Share-based compensation 1,350 1,143 2,973 2,364 Finance expense 6,824 7,263 20,309 20,995 Depletion and depreciation 52,197 49,678 157,247 148,070 Deferred income tax expense 4,972 7,759 21,340 17,492 Less: interest income (52) (111) (221) (469) EBITDA 81,412 73,984 251,728 225,523 As at ($000s) Sept. 30, 2025 CORRA term loans 506,500 Total consolidated senior debt and total debt 506,500 Shareholder's equity 1,217,666 Capitalization 1,724,166 Based on the above covenant definitions, as at September 30, 2025, Topaz’s ratio of consolidated senior debt to EBITDA was 1.48, total debt to EBITDA was 1.48, and total debt to capitalization was 29%. For the covenant calculations, EBITDA is based on the rolling four quarters ($341.5 million), calculated in accordance with the terms of the credit agreement. The Company was in compliance with each of its financial covenants. As at September 30, 2025, there was $506.5 million (December 31, 2024 - $541.0 million) drawn on the Syndicated Credit Facility and $1.9 million in deferred financing costs (December 31, 2024 - $0.6 million). 9. DECOMMISSIONING OBLIGATIONS The decommissioning liability was estimated based on the Company’s net ownership interest in all facilities within the infrastructure cash generating unit (“CGU”), the estimated costs to abandon and reclaim the facilities, and the estimated timing of the costs to be incurred in future periods. The estimated future cash flows have been discounted using an average risk-free rate of 3.61% and an inflation rate of 1.95% (December 31, 2024; 3.33% and 1.82%, respectively). The Company has estimated the net present value of the decommissioning obligations to be $5.6 million at September 30, 2025 (December 31, 2024 - $5.4 million). The undiscounted, uninflated total future liability as at September 30, 2025 is $7.8 million (December 31, 2024 - $7.5 million). The payments are expected to be incurred over the operating lives of the assets. The following table reconciles the decommissioning liability: ($000s) Balance, Dec. 31, 2023 4,647 Change in estimates (75) Acquisitions 686 Accretion expense 161 Balance, Dec. 31, 2024 5,419 Change in estimates (168) Acquisitions 225 Accretion expense 145 Balance, Sept. 30, 2025 5,621 FINANCIAL STATEMENTS | 13 10. SHARE CAPITAL Authorized The authorized share capital consists of an unlimited number of common voting shares without par value. The common shares entitle holders to one vote per share at meetings of shareholders. Issued and Outstanding ($000s except share amounts) Number of Shares Amount Balance, Dec. 31, 2023 144,741,369 1,525,700 Issue of common shares - bought deal financing 8,050,000 201,653 Issue of common shares - private placement 209,177 5,240 Exercise of share-based awards 456,500 8,505 Share issue costs, net of tax - (6,690) Balance, Dec. 31, 2024 153,457,046 1,734,408 Exercise of share-based awards 373,708 6,637 Balance, Sept. 30, 2025 153,830,754 1,741,045 Dividends During the three months ended September 30, 2025, the Company paid $52.3 million ($0.34 per common share) in dividends to its shareholders, compared to $47.8 million ($0.33 per common share) during the three months ended September 30, 2024. During the nine months ended September 30, 2025, the Company paid $155.3 million ($1.01 per common share) in dividends to its shareholders, compared to $140.6 million ($0.97 per common share) during the nine months ended September 30, 2024. SH --- ARE-BASED COMPENSATION The Company recorded share-based compensation expense of $1.4 million and $3.0 million for the three and nine months ended September 30, 2025, net of capitalized costs (three and nine months ended September 30, 2024 - $1.1 million and $2.4 million, respectively). Three months Nine months For the periods ended ($000s) Sept. 30, 2025 Sept. 30, 2024 Sept. 30, 2025 Sept. 30, 2024 Gross share-based compensation expense 2,102 1,794 5,261 4,372 Capitalized share-based compensation (752) (651) (2,288) (2,008) Total share-based compensation expense 1,350 1,143 2,973 2,364 Performance Share Unit Awards The Company has a performance share unit (“PSU”) plan, whereby PSUs may be issued to employees, consultants, officers, and members of the Board. Each PSU is a notional unit equal in value to one Common Share, which entitles the holder to a Common Share or cash payment (at the option of the Company) upon redemption, plus accrued dividend equivalents. PSUs awarded under the Company’s long-term incentive plan (“LTIP”) vest on the third anniversary of the grant date and are adjusted for a performance multiplier ranging from 0 to 2 times which is linked to three-year average corporate performance measures. Under the Company’s short-term incentive plan (“STIP”), employees can elect to receive 50% of the annual STIP award in equity whereby PSUs are issued which vest immediately into Common Shares of the Company and are subject to a two-year contractual hold. As at September 30, 2025, 0.9 million PSUs were outstanding (December 31, 2024 – 0.9 million PSUs outstanding). (000's) Number of PSUs PSUs outstanding, Dec. 31, 2024 936 Granted 258 Exercised (317) Dividend reinvestment 36 PSUs outstanding, Sept. 30, 2025 913 FINANCIAL STATEMENTS | 14 The fair value of PSUs granted under the LTIP, during the nine months ended September 30, 2025, was estimated based on the volume-weighted average share price on the date of the respective grant, less the present value of estimated future dividends, which are recorded over time as dividend reinvestment units. The weighted average fair value of PSUs granted during the nine months ended September 30, 2025 was $23.40 based on a weighted average share price of $27.15, adjusted for the present value of estimated future dividends (September 30, 2024 – weighted average fair value of $16.04 based on a weighted average share price of $19.52, adjusted for the present value of estimated future dividends). Deferred Share Unit Awards The Company has a deferred share unit (“DSU”) plan, whereby DSUs may be issued to members of the Board. Each DSU is a notional unit that entitles the holder to a Common Share or cash payment (at the option of the Company) upon redemption, plus accrued dividend equivalents. DSUs vest immediately upon grant date but can only be converted to Common Shares or cash upon the holder ceasing to be a director of the Company. At September 30, 2025, 0.2 million DSUs were outstanding (December 31, 2024 – 0.1 million DSUs outstanding). (000's) Number of DSUs DSUs outstanding, Dec. 31, 2024 134 Granted 24 Dividend reinvestment 5 DSUs outstanding, Sept. 30, 2025 163 The fair value of DSUs granted is estimated based on the volume-weighted average share price on the date of the respective grant, less the present value of estimated future dividends, which are recorded over time as dividend reinvestment units. The weighted average fair value of DSUs granted during the nine months ended September 30, --- 2025 was $19.16 based on a weighted average share price of $25.41, adjusted for the present value of estimated future dividends (September 30, 2024 – weighted average fair value of $17.81 based on a weighted average share price of $23.76, adjusted for the present value of estimated future dividends). Stock Options The Company has a stock option plan in place whereby it may issue stock options to employees, consultants and directors of the Company. The aggregate number of shares that may be acquired upon exercise of all stock options granted pursuant to the plan shall, at any date or time of determination, be not greater than 5.0% of the number of the Company’s basic common shares then issued and outstanding. Stock options are granted throughout the year and vest 1/3 on each the first, second and third anniversaries from the date of grant and expire seven years from the date of issuance. As at September 30, 2025 1.5 million stock options were outstanding (December 31, 2024 – 1.6 million stock options were outstanding). (000's) Number of Stock Options W.A.(1) exercise price Stock options outstanding, Dec. 31, 2024 1,593 $14.78 Exercised (57) $16.91 Stock options outstanding, Sept. 30, 2025 1,536 $14.70 (1) Weighted average. The following table summarizes stock options outstanding and exercisable as at September 30, 2025: Exercise price Number outstanding at period end W.A.(1) remaining life W.A.(1) exercise price Number exercisable at period end W.A.(1) exercise price $10.00 - $11.00 713,332 1.50 $10.42 713,332 $10.42 $11.01 - $15.00 297,500 2.26 $14.33 297,500 $14.33 $15.01 - $21.00 525,000 3.78 $20.71 525,000 $20.71 Total 1,535,832 2.43 $14.70 1,535,832 $14.70 (1) Weighted average. FINANCIAL STATEMENTS | 15 11. NET INCOME PER COMMON SHARE Net income per share amounts is calculated by dividing the net income for the period attributable to the common shareholders of the Company by the weighted average number of common shares outstanding during the period. The average market value of common shares for purposes of determining the dilutive effect of outstanding stock options was based on quoted market prices for the period. For the periods ended ($000s) Three months Nine months ($000s, except for share information) Sept. 30, 2025 Sept. 30, 2024 Sept. 30, 2025 Sept. 30, 2024 Net income 11,357 18,040 51,804 41,960 W.A.(1) common shares – basic 153,793,917 144,908,512 153,779,389 144,875,419 W.A.(1) common shares – diluted 154,441,606 145,622,194 154,412,524 145,462,072 Net income per common share - basic $ 0.07 $ 0.12 $ 0.34 $ 0.29 Net income per common share - diluted $ 0.07 $ 0.12 $ 0.34 $ 0.29 (1) Weighted Average. For the three and nine months ended September 30, 2025 and 2024, no stock options were excluded from the weighted average share calculation as they were anti-dilutive. 12. REVENUE The Company had two disaggregated sources of revenue: royalty production revenue and processing revenue. Amounts disclosed below do not include realized or unrealized gains or losses on financial derivative contracts resulting from the Company’s commodity price risk management activities or other income. Royalty production revenue The Company’s royalty production revenue is determined pursuant to the terms of its royalty agreements. The commodity prices for natural gas, light and medium crude oil, heavy crude oil, and natural gas liquids are primarily based on market index prices in the month of production and the majority of Topaz’s royalty contracts --- do not permit transportation or quality deductions. The royalty production volumes are currently marketed with the respective royalty payor’s production volume and revenue is generally received two months after the natural gas, crude oil and natural gas liquids volumes are produced. The Company can elect to take its share of the royalty production volume in kind, if desired. As at September 30, 2025, 76% of the accounts receivable balance of $46.1 million related to royalty production revenue (December 31, 2024 – 82%). Processing revenue The Company’s processing revenue is generated through its non-operated ownership in processing facilities. The facilities provide services to customers on a fee-for-service basis, including natural gas processing and water usage, storage, and disposal. Certain fees include fixed take-or-pay arrangements under long-term commercial arrangements. As at September 30, 2025, 24% of the accounts receivable balance of $46.1 million related to processing revenue (December 31, 2024 – 18%). Three months Nine months For the periods ended ($000s) Sept. 30, 2025 Sept. 30, 2024 Sept. 30, 2025 Sept. 30, 2024 Royalty production revenue 52,291 52,692 179,342 173,192 Processing revenue 21,221 18,279 60,977 47,539 Total revenue 73,512 70,971 240,319 220,731 13. FINANCE EXPENSE Three months Nine months For the periods ended ($000s) Sept. 30, 2025 Sept. 30, 2024 Sept. 30, 2025 Sept. 30, 2024 Accretion expense 50 40 145 116 Amortization of debt transaction costs 154 100 423 353 Interest expense 6,620 7,123 19,741 20,526 Total finance expense 6,824 7,263 20,309 20,995 FINANCIAL STATEMENTS | 16 14. RELATED PARTY TRANSACTIONS The Company has entered into a number of agreements relating to both royalty and infrastructure assets with Tourmaline Oil Corp. (“Tourmaline”) who had a 21.3% ownership interest in the common shares of the Company as at September 30, 2025. Subsequent to September 30, 2025, Tourmaline, through a bought deal secondary equity offering, sold 9.2 million common shares of Topaz, resulting in an ownership interest of 15.3% as at November 3, 2025. As at September 30, 2025, $18.6 million (December 31, 2024 - $24.5 million) of the accounts receivable balance was due from Tourmaline, all of which will be collected in the normal course of business. There were no bad debts outstanding relating to Tourmaline as at September 30, 2025 or December 31, 2024. During the three and nine months ended September 30, 2025, 32% and 39%, respectively, of royalty production revenue and 47% and 48%, respectively, of processing revenue was generated from Tourmaline (three and nine months ended September 30, 2024 - 27% and 35% of royalty production revenue and 55% and 62% of processing revenue, respectively, was generated from Tourmaline). The Company’s accounts payable as at September 30, 2025 includes $71.7 million due to Tourmaline in respect of the September 30, 2025 royalty acquisition (note 6), which was paid on October 1, 2025. The Company pays a marketing fee to Tourmaline for the Company’s royalty production that is marketed with Tourmaline’s production. During the three and nine months ended September 30, 2025, the Company paid $0.2 million and $0.7 million, respectively, (three and nine months ended September 30, 2024 - $0.3 million and $1.0 million, respectively), in respect of marketing fees, which were incurred in the normal course of business. During the three and nine months ended September 30, 2025, the Company paid ren --- t expense to Tourmaline of $0.06 million and $0.2 million, respectively (three and nine months ended September 30, 2024 - $0.05 million and $0.2 million, respectively), which was incurred in the normal course of business. FINANCIAL STATEMENTS | 17 15. SEGMENT INFORMATION The Company’s reconciliation of cash flow, net income before tax and total assets between operating segments as at and for the three and nine months ended September 30, 2025, is as follows: Three months ended Sept. 30, 2025 ('000s) Royalties Infrastructure Total Royalty production revenue 52,291 - 52,291 Processing revenue - 21,221 21,221 Other income - 2,931 2,931 Total 52,291 24,152 76,443 Cash expenses Operating expense - (1,545) (1,545) Marketing expense (307) - (307) General and administrative expense (1,398) (466) (1,864) Realized gain on financial instruments 8,737 - 8,737 Interest expense (4,965) (1,655) (6,620) Cash flow 54,358 20,486 74,844 Depletion expense (47,342) (4,855) (52,197) Accretion - (50) (50) Amortization of debt transaction costs (115) (39) (154) Unrealized loss on financial instruments (4,764) - (4,764) Share-based compensation expense (1,013) (337) (1,350) Net income before tax 1,124 15,205 16,329 Nine months ended Sept. 30, 2025 ('000s) Royalties Infrastructure Total Royalty production revenue 179,342 - 179,342 Processing revenue - 60,977 60,977 Other income - 9,467 9,467 Total 179,342 70,444 249,786 Cash expenses Operating expense - (5,503) (5,503) Marketing expense (1,122) - (1,122) General and administrative expenses (4,452) (1,484) (5,936) Realized gain on financial instruments 14,724 - 14,724 Interest expense (14,806) (4,935) (19,741) Cash Flow 173,686 58,522 232,208 Depletion expense (143,026) (14,221) (157,247) Accretion - (145) (145) Amortization of debt transaction costs (317) (106) (423) Unrealized gain on financial instruments 1,724 - 1,724 Share-based compensation expense (2,230) (743) (2,973) Net income before tax 29,837 43,307 73,144 As at Sept. 30, 2025 ('000s) Royalties Infrastructure Total Total Assets 1,422,467 424,893 1,847,360 FINANCIAL STATEMENTS | 18 The Company’s reconciliation of cash flow, net income before tax and total assets between operating segments for the three and nine months ended September 30, 2024, and as at December 31, 2024 is as follows: Three months ended Sept. 30, 2024 ('000s) Royalties Infrastructure Total Royalty production revenue 52,692 - 52,692 Processing revenue - 18,279 18,279 Other income - 2,626 2,626 Total 52,692 20,905 73,597 Cash expenses Operating expense - (2,209) (2,209) Marketing expense (279) - (279) General and administrative expense (1,384) (346) (1,730) Realized gain of financial instruments 4,716 - 4,716 Interest expense (5,699) (1,424) (7,123) Cash Flow 50,046 16,926 66,972 Depletion expense (45,399) (4,279) (49,678) Accretion - (40) (40) Amortization of debt transaction costs (80) (20) (100) Unrealized gain on financial instruments 9,788 - 9,788 Share-based compensation expense (823) (320) (1,143) Net income before tax 13,532 12,267 25,799 Nine months ended Sept. 30, 2024 ('000s) Royalties Infrastructure Total Royalty production revenue 173,192 - 173,192 Processing revenue - 47,539 47,539 Other income - 9,488 9,488 Total 173,192 57,027 230,219 Cash expenses Operating expense - (5,749) (5,749) Marketing expense (1,004) - (1,004) General and administrative expense (4,261) (1,065) (5,326) Realized gain on financial instruments 7,852 - 7,852 Interest expense (16,421) (4,105) (20,526) --- Cash Flow 159,358 46,108 205,466 Depletion expense (136,111) (11,959) (148,070) Accretion - (116) (116) Amortization of debt transaction costs (254) (99) (353) Unrealized gain on financial instruments 4,889 - 4,889 Share-based compensation expense (1,702) (662) (2,364) Net income before tax 26,180 33,272 59,452 As at Dec. 31, 2024 ('000s) Royalties Infrastructure Total Total assets 1,458,853 435,761 1,894,614