BEACH ENERGY'S Q1 ACTIVITIES REPORT

The most recent news release, dated October 20, 2025, provides an update on production from operator Beach Energy for the first quarter of fiscal year 2026 (July to September 2025). Production from the Western Flank permits in the Cooper Basin, over which Newport holds its royalty, was 371,000 barrels of oil equivalent (kboe). This is comprised of 247,000 barrels of oil (kbbl) and 124 kboe of gas and gas liquids.

This news is materially negative. The reported production of 371 kboe represents a sharp 16.6% decline from the 445 kboe reported in the previous quarter (Q4 FY25). This continues and accelerates a deeply concerning trend of declining production, which is Newport's sole source of revenue.

A chronological review of operations reveals a deteriorating situation: * Q2 FY25 (ended Dec 2024): 626 kboe produced. Beach plans for a 10-well drill program in Q4 FY25. * Q3 FY25 (ended Mar 2025): 549 kboe produced (12% decline QoQ). The decline is attributed to natural decline and the new issue of "heavy rain and flooding." The drilling program is delayed to H1 FY26. * Q4 FY25 (ended Jun 2025): 445 kboe produced (19% decline QoQ). Flooding impact is cited as ongoing. The drilling program is delayed again, now to H2 FY26. * Q1 FY26 (ended Sep 2025): 371 kboe produced (16.6% decline QoQ). This confirms the flooding impact is severe and persistent.

In less than a year, quarterly production has fallen by 41% (from 626 kboe to 371 kboe). This directly translates to lower royalty payments and jeopardizes the company's financial stability. The company terminated its dividend in December 2024 due to production declines and uncertainty. This latest report validates that decision and deepens concerns about future cash flow. While the CFO's significant share purchase at $0.08 in September 2025 showed insider confidence, this operational update is a stark reminder of the fundamental challenges the company faces. The news confirms the negative trend and provides no evidence of a turnaround in the near term.

Newport Exploration Ltd. is a royalty company. Its business model is to acquire and hold royalty interests, generating revenue without incurring direct exploration, development, or operational costs. * Flagship Project: The company's sole material asset is a perpetual 2.5% Gross Overriding Royalty (GOR) on oil and gas production from specific licenses (ex PEL's 91, 106, 107 and PPL 280) in the Cooper Basin, Australia. The properties are operated by Beach Energy Ltd., a major Australian producer. Newport has no operational control or influence over Beach's decisions regarding drilling, production, or development. * The property is royalty-free to Newport, meaning it has no costs to maintain the GOR.