Topaz Energy Corp.

Energy infrastructure segment holding non-operated ownership interests in nine natural gas processing and gathering facilities in the Western Canadian Sedimentary Basin with cumulative net natural gas processing capacity of approximately 268 MMcf/d, together with associated crude oil and condensate handling facilities and two water management facilities. Interests are held alongside Tourmaline, Advantage, Tamarack, Whitecap, Logan and Headwater and the majority of the revenue is contracted under long-term fixed-fee take-or-pay agreements. Topaz bears its proportionate share of operating and capital costs, environmental liabilities and reclamation obligations except at the Glacier Gas Plant, Pipestone Assets, Gundy Gas Plant, Wembley Facility, Musreau Facility, Clearwater Gathering System and Pouce Coupe Facility, where the operator or producer has agreed to carry operating and maintenance capital during the volume commitment term. A separate contracted interest in third-party revenue at Tourmaline-owned facilities generates Other Income with no underlying asset ownership.

Relatively new, technologically advanced Montney gas plant at 05-02-076-12W6. Staged construction began in 2010 and the plant was expanded in six phases to 400 MMcf/d of raw gas and 6,800 Bbls/d of liquids capacity by 2018; following a further expansion its current natural gas throughput capability is 425 MMcf/d. The facility includes related infrastructure, acid gas pipelines and acid gas disposal wells and all liquids handling infrastructure required for the extraction and storage of hydrocarbon liquids. It processes Advantage's Montney production through a network of pipelines, compressor stations and liquids hubs. Topaz elected to participate in the 2023 expansion, adding incremental capacity ownership and fixed fee income.

NEBC Montney gas processing facility at C-060-A/094-B-16, commissioned by Tourmaline in 2018 and expanded to 400 MMcf/d of raw gas and 30,000 Bbls/d of liquids handling capacity in the first quarter of 2022. The plant consists of two processing trains and the site can accommodate a third if required. It processes Tourmaline's NEBC Montney production from the area surrounding Gundy through a network of Tourmaline-owned pipelines. Note that the AIF glossary describes the plant as approximately 200 MMcf/d capacity while the asset description states the post-expansion 400 MMcf/d figure used here.

Deep Basin gas processing facility at 15-12-50-21W5, commissioned by Tourmaline in 2011 and expanded to 155 MMcf/d of raw gas and 2,875 Bbls/d of liquids handling capacity in 2014. The plant consists of two processing trains and the site can accommodate a third if required. It processes Tourmaline's Alberta Deep Basin production from Basing, Minehead, Ansell and Lambert through Tourmaline-owned pipelines. All third-party processing revenue at Banshee, excluding Tourmaline's own volumes, is allocated to Topaz under the TPF Revenue Interest Agreement rather than shared pro rata.

Deep Basin sour gas plant commissioned by Tourmaline in 2010 and expanded in three phases to 120 MMcf/d raw gas and 4,600 Bbls/d of liquids handling capacity by 2014. The complex comprises two processing trains on the 08-13-062-06W6 and 09-13-062-06W6 sites plus a separate compressor station that can offload excess gas volumes to the Pembina Musreau facility. It processes a portion of Tourmaline's Alberta Deep Basin gas production gathered through Tourmaline-owned pipelines, and additional third-party volumes on which Topaz earns processing revenue in proportion to its ownership interest. Topaz and Tourmaline are the only owners and the only parties to the construction, ownership and operating agreement.

Deep Basin gas plant commissioned by Tourmaline in 2016 with 70 MMcf/d of raw gas and 2,200 Bbls/d of liquids handling capacity. The complex consists of one processing train and associated equipment on the 15-36-044-15W5 site plus a compressor station on the 16-36-044-15W5 site that can offload excess gas volumes to the Keyera Brazeau East facility, and the lease can accommodate a second processing train if required. It processes Tourmaline's Alberta Deep Basin production from Columbia, Brazeau, Peco and Stolberg through Tourmaline-owned pipelines, plus third-party volumes on which Topaz earns processing revenue in proportion to its ownership interest.

Newly commissioned natural gas and condensate facility in the Musreau area of the Alberta Montney, commissioned by Whitecap in 2024, comprising approximately 43 MMcf/d of natural gas compression capacity and 12,500 Bbl/d of condensate stabilization capacity. The interest was Topaz's largest single infrastructure acquisition to date at $100.0 million and is supported by a long-term fixed fee take-or-pay commitment, with Whitecap carrying operating and maintenance capital during the commitment term. The facility is distinct from the Tourmaline-operated Musreau Gas Plant in the Deep Basin in which Topaz holds a separate 45% interest.

Natural gas processing and condensate handling facility at 04-19-079-10W6 in the Pouce Coupe area of the Alberta Montney, comprising a natural gas plant, a compressor station and an oil battery with 40 MMcf/d of natural gas processing capacity. Commissioned by Logan in 2025 and acquired by Topaz on May 30, 2025 as the infrastructure leg of the 2025 Logan Transaction, which also created a new gross overriding royalty over Logan-operated Alberta Montney lands. Supported by a long-term fixed take-or-pay commitment with Logan carrying operating and maintenance capital during the commitment term.

Sweet natural gas processing facility with a nameplate capacity of 15 MMcf/d and an associated crude oil battery of approximately 1,500 Bbl/d, located in the Peace River High operating area and commissioned by Tamarack in 2023. The interest was acquired as part of a combined royalty and infrastructure transaction that paired the facility with new royalty acreage in the same area. The facility is supported by a long-term fixed take-or-pay commitment and Tamarack carries operating and maintenance capital during the commitment term, so Topaz's exposure is limited to contracted fee income.

Natural gas gathering system in the Marten Hills area of the Clearwater play with natural gas capacity of approximately 8 MMcf/d. The system was contracted in October 2023 as part of a $26.3 million package of definitive agreements with Headwater that also created a new gross overriding royalty interest in the Clearwater operating area, with funding for the gathering system advanced on final commissioning. Topaz closed the acquisition of its 99% interest on December 17, 2024. The system captures solution gas from Headwater's Clearwater heavy oil development, an area where Topaz also holds a substantial royalty position.

Royalty over the Weyburn Unit in southeast Saskatchewan, a conventional unitized oil field discovered in the 1950s and operated by Whitecap, which holds a 65.33% working interest. The unit covers over 50,000 acres and is under carbon dioxide enhanced oil recovery; it is the largest anthropogenic carbon capture, utilization and storage project in the world and is internationally recognised as one of the most successful developments of its kind technically, economically and environmentally. Injected CO2 acts as a solvent, flushing otherwise unrecoverable oil from the pore system. The unit is a self-sustaining, low base-decline operation that generates strong free cash flow even at low commodity prices, with production maintained on relatively minimal capital investment. Topaz's royalty applies to Whitecap's working interest.

Topaz's largest royalty position by acreage: approximately 3.7 million gross royalty acres over the Alberta Deep Basin, a multi-objective tight natural gas sand play with up to 15 separate lower Cretaceous liquids-rich gas-charged sand reservoirs, straddling the Alberta-British Columbia border roughly 250 km west of Edmonton. The acreage is predominantly operated by Tourmaline and was built up through the 2019 Initial GORR, the January 2021 Deep Basin GORR, the 2022 Peace River and Deep Basin GORR and the November 2024 Core Area GORR. The area is also where Topaz's Musreau, Brazeau and Banshee gas plant interests sit, so royalty and infrastructure income are drawn from the same production base.

Gross overriding royalty position over Tourmaline-operated liquids-rich Triassic Montney lands on the west flank of the Peace River High in northeast British Columbia, held across approximately 1.7 million gross royalty acres at December 31, 2025. The play is the most prolific liquids-rich natural gas resource in Western Canada and Topaz expects it to deliver the largest natural gas production growth in the WCSB over the next decade, underpinned by LNG Canada phase one (2.0 Bcf/d of supply online during 2025, up to 4.0 Bcf/d if expanded), Coastal GasLink, the North Montney Mainline and Enbridge's northern B.C. pipeline expansion. Topaz added a tuck-in NEBC Montney GORR over roughly 134,000 gross acres in September 2025. All acreage is operated by Tourmaline; Topaz carries no capital, operating or abandonment obligations.

Gross overriding royalty over Logan-operated Alberta Montney lands, acquired in January 2025 and covering approximately 0.1 million gross royalty acres at December 31, 2025. The Montney's extensive horizontal drilling and multi-stage fracture stimulation have unlocked the formation's prolific reserves. The position was acquired alongside a 35% working interest in Logan's Pouce Coupe processing facility, pairing royalty exposure with fee-for-service infrastructure income in the same operating area.

Royalty position over approximately 0.7 million gross acres of the greater Clearwater heavy oil play in Alberta, predominantly operated by Headwater and Tamarack. The Clearwater ranks among the strongest and fastest growing oil plays in the WCSB, characterised by low well costs, a high-quality large oil-in-place resource, moderate initial decline profiles, competitive netbacks and reduced land usage through multi-leg drilling. Closely spaced open-hole multi-lateral wells produced through one production string recover 14-24 degree API oil on primary production without hydraulic fracturing, thermal technology, sand or meaningful water use. Recoverable resource continues to expand through exploration drilling and waterflood or enhanced recovery projects.

Royalty position across approximately 0.7 million gross acres of the Peace River High, focused on crude oil and natural-gas-charged reservoirs of the Triassic Charlie Lake and Montney formations and the Wapiti Cardium. The area spans from Fort St. John, British Columbia to Lesser Slave Lake, Alberta and from Grande Prairie north to Manning, Alberta. Most of the acreage is operated by Tourmaline and Tamarack, with other minor royalty assets held across the fairway. Topaz's Wembley gas plant and oil battery interest is located in the same operating area.

Fee mineral title, gross royalty trust and gross overriding royalty interests across approximately 1.0 million gross acres, assembled primarily through the Reserve Royalty Acquisition and the Keystone Royalty Acquisition. Keystone Royalty Corp., a private Canadian company holding fee mineral title and GORR interests diversified across the WCSB and focused predominantly in southeast Saskatchewan, was amalgamated with Topaz on April 29, 2022. Reserve Royalty Income Trust held fee title and GORR interests on lands diversified across Western Canada. The interests are dispersed rather than concentrated in a single play, and are operated or leased by a range of third-party working interest owners.

Complementary royalty interests across approximately 1.0 million gross royalty acres diversified across the Western Canadian Sedimentary Basin, operated or leased by arm's length third-party exploration and production companies. The position is intentionally dispersed and adds operator and basin diversification alongside Topaz's concentrated core-area royalties. Topaz acquired further gross overriding and fee mineral title royalty interests over approximately 28,000 gross acres on December 22, 2025 for cash consideration of $7.8 million before closing adjustments.