Trillion Energy to sell Park Place Energy Turkiye

• Trillion Energy International Inc. entered into a definitive sale agreement to divest all shares of Park Place Energy Turkiye Ltd. (PPET).
• PPET holds the South Akcakoca Subbasin natural gas project and Cendere oil field licences in Turkey.
• The transaction transfers approximately US$20 million of PPET liabilities to the purchaser, removing these obligations from Trillion's balance sheet.
• Trillion retains a 7% Gross Overriding Royalty (GORR) on future production revenues from the disposed licences.
• The royalty is effective only after cumulative gross revenues post-closing exceed US$7.5 million.
• If Trillion disposes of the licences later, the royalty crystallizes requiring payment of 7% of the gross value to Trillion.
• This follows a March 31 announcement where management stated they were actively seeking buyers for this stake.

• Balance Sheet Improvement: The removal of US$20 million in legacy liabilities is material given the company's cash position of only ~US$597,000 as of September 2025. This significantly reduces immediate solvency risk associated with these specific assets.
• Strategic Focus: The sale allows management to streamline operations and focus on core exploration opportunities, specifically the M47 block where they have an earn-in agreement.
• Royalty Upside: Retaining a 7% GORR preserves long-term upside without further capital outlay, though it is contingent on production exceeding US$7.5 million in cumulative revenue.
• Execution of Known Strategy: While the intent to sell was announced in March (Routine - Negative context due to cancelled farm-ins), the definitive terms and liability transfer are new information that materially alters the financial risk profile compared to the prior "seeking buyers" status.
• Remaining Capital Needs: The sale does not provide immediate cash proceeds; it removes debt. The company still faces a CAD$10 million equity raise deadline by September 30, 2026, to avoid debenture acceleration.

• Company: Trillion Energy International Inc. operates in the oil and gas sector with a focus on Turkey.
• Flagship Project (Current): The M47 Block in Southeast Turkey is now the primary operational focus following the divestiture of SASB assets.
• M47 Details: Company holds a 29% working interest via an earn-in agreement requiring US$15 million total investment ($9.5M for 2026, $5.5M for 2027).
• Previous Flagship: The South Akcakoca Subbasin (SASB) natural gas project and Cendere oil field were divested in April 2026.
• Operational Status: Management is actively evaluating additional opportunities across Turkey, seeking value-accretive partnerships.