Lycos Energy Inc. Declares Cash Distribution to Shareholders

Calgary, Alberta--(Newsfile Corp. - November 13, 2025) - Lycos Energy Inc. (TSXV: LCX) ("Lycos" or the "Company") is pleased to announce that at its special meeting (the "Meeting") of shareholders (the "Shareholders") held earlier today, Shareholders approved a special resolution authorizing a reduction of the stated capital account maintained in respect of the Company's common shares ("Common Shares") by $47.9 million (the "Reduction of Stated Capital") to enable the Company to make a return of capital in cash to Shareholders. The special resolution was approved with 60.64% of the Common Shares outstanding voting in favour of the resolution.

Declaration of Cash Distribution

The Company's Board of Directors is pleased to announce the declaration of a special cash distribution on its Common Shares of $0.90 per Common Share (the "Distribution"). The Distribution will be payable on November 28, 2025 (the "Payment Date"), to Shareholders of record at the close of business on November 20, 2025 (the "Record Date"). The Distribution is designated as a return of capital for Canadian income tax purposes.

Due to the size of the Distribution relative to the trading price of the Common Shares, the Distribution will be completed in accordance with the applicable "due bill" trading procedures of the TSX Venture Exchange (the "TSXV"). The Common Shares will be traded in accordance with the "due bill" procedures from the Record Date until the close of trading on the Payment Date (the "Due Bills Period"). Any trades executed on the TSXV during the Due Bills Period will be identified to ensure that purchasers of Common Shares receive entitlement to the Distribution whereby the sellers of the Common Shares during the Due Bills Period will also sell their entitlement to the Distribution to the respective purchasers of such Common Shares. The Common Shares will commence trading on an "ex-dividend" basis without an attached "Due Bill" entitlement to the Distribution from the opening of trading on December 1, 2025, the next trading day after the Payment Date. The last day for the settlement of trades executed during the Due Bills Period will be December 1, 2025, which is the redemption date for the due bills.