TENAZ ENERGY CORP. ANNOUNCES EXERCISE OF WARRANTS AND OPTIONS, INCREASING DIRECTOR AND OFFICER SHARE OWNERSHIP

CALGARY, ALBERTA--(Newsfile Corp. - December 8, 2025) - Tenaz Energy Corp. ("Tenaz", "We", "Our", "Us" or the "Company") (TSX: TNZ) is pleased to announce increased share ownership of the directors and officers of Tenaz following the exercise of warrants and stock options.

The warrants were previously issued under the non-brokered private placement of units completed as part of the Company's recapitalization transaction in 2021, with an expiry date in October 2026. The stock options were granted in November 2021 as long-term incentive compensation designed to align the interests of officers with the long-term accretion in the value of Tenaz common shares ("shares") through strategic acquisitions and development of the Company's assets. The stock options had an expiry date in November 2026.

In aggregate, 1.7 million warrants and 1.2 million stock options were exercised by the directors and officers, resulting in the issuance of 2.9 million shares. Of these shares, 875 thousand shares were sold at a 1% discount to market in a block trade executed by National Bank Capital Markets. Proceeds of the sale will be used to fund applicable taxes and the exercise of the warrants and stock options. Tenaz intends to use the proceeds received from the exercise of the warrants and stock options for general corporate purposes.

This transaction allowed the warrants and stock options to be exercised prior to expiry in an efficient fashion and developed additional institutional ownership of Tenaz shares. The directors and officers have retained 70% of the shares from the exercised warrants and stock options, increasing their aggregate ownership of issued and outstanding shares from 11.0% to 16.3%. The directors and officers no longer hold any warrants or stock options.

The new basic number of issued and outstanding shares is 32.0 million, with an additional 3.0 million shares issuable pursuant to outstanding deferred share units, restricted share units, performance share units and warrants. The increased share ownership by directors and officers of Tenaz illustrates the continued alignment of the board of directors and management team with shareholders of the Company. As at December 8, 2025, Tenaz directors and officers own, control or direct a total of 5.2 million shares, representing 16.3% of the issued and outstanding shares (19.5% on a fully diluted basis).