BEACH REPORT FIRST HALF FY26 RESULTS, DRILLING PROGRAM UNDERWAY WITH 100% SUCCESS RATE

The most recent news (February 5, 2026) reports on the half-year (H1 FY26) results from Beach Energy, the operator of the Cooper Basin licenses where Newport holds a 2.5% Gross Overriding Royalty (GOR). Key highlights include: - A 100% success rate on the first six wells of a 12-well oil appraisal and development campaign. - One well is already online and producing, with the remainder expected to be connected in H2 FY26. - This represents the first drilling campaign in the Western Flank in over two and a half years. - Plans for a subsequent 10-well oil exploration campaign starting in late FY26. - Newport reports a healthy treasury of CAD $2.9 million and 105,579,874 shares outstanding.

The news is Materially Positive for Newport Exploration for the following reasons: - Reversal of Trend: After nearly three years of drilling inactivity and a significant 33% production decline in FY2025 (due to flooding and natural field decline), the commencement of an active, successful drilling program is critical for stabilizing and potentially growing the royalty stream. - High Success Rate: A 100% success rate on initial wells suggests high-quality targets in the Callawonga field, which reduces the risk of "dry holes" that would provide zero return to the GOR. - Future Pipeline: The transition from appraisal/development (12 wells) to exploration (10 wells) provides a multi-quarter catalyst path for reserves replacement. - Financial Buffer: With $2.9 million in cash and no debt, Newport is not under pressure to raise capital, allowing the royalty income to accumulate or be potentially distributed as dividends, as has been historical practice.

Newport Exploration Ltd. is a natural resource company with a primary focus on its 2.5% Gross Overriding Royalty (GOR) on several oil and gas licenses in the Cooper Basin, Australia. - Flagship Asset: The 2.5% GOR covers the "Western Flank" of the Cooper Basin, operated by Beach Energy Ltd (with Santos Ltd as a partner). - Terms: The royalty is "gross," meaning Newport does not pay for drilling, operating, or environmental costs. It is also perpetual with no expiry. - Secondary Asset: 100% interest in the Chu Chua copper-gold property in BC, Canada, which is currently carried at a nominal $1 value on the books.