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.

About Lycos

Lycos is an oil-focused, exploration, development and production company based in Calgary, Alberta, operating high-quality, heavy-oil, development assets in Central Alberta.

Reader Advisories

Forward-Looking and Cautionary Statements

Certain statements contained within this press release constitute forward-looking statements within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "outlook", "plan", "endeavor", "continue", "estimate", "evaluate", "expect", "forecast", "monitor", "may", "will", "can", "able", "potential", "target", "intend", "consider", "focus", "identify", "use", "utilize", "manage", "maintain", "remain", "result", "cultivate", "could", "should", "believe" and similar expressions (including negatives and variations thereof). Lycos believes that the expectations reflected in such forward-looking statements are reasonable as of the date hereof, but no assurance can be given that such expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Without limitation, this press release contains forward-looking statements pertaining to payment of the Distribution, including the timing and amount thereof, and the related due-bill trading of the Common Shares. The forward-looking statements and information are based on certain key expectations and assumptions made by Lycos and various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to: fluctuations in commodity prices (including pursuant to determinations by the Organization of Petroleum Exporting Countries and other countries (collectively referred to as OPEC+) regarding production levels) and the risk of an extended period of low oil and natural gas prices; changes in industry regulations and political landscape both domestically and abroad; the impact of tariffs and other restrictive trade measures imposed or threatened by the U.S. administration, the Canadian administration and foreign governments, including retaliatory or countermeasures, on global economic markets, market volatility and the demand and/or market price for the Company's products; wars (including Russia's military actions in Ukraine and the Israel-Hamas conflict in Gaza); hostilities; civil insurrections; foreign exchange or interest rates; increased operating and capital costs due to inflationary pressures (actual and anticipated); volatility in the stock market and financial system; impacts of pandemics; the retention of key management and employees; and risks with respect to unplanned third-party pipeline outages, including in respect of safety, asset integrity and shutting in production. Ongoing military actions between Russia and Ukraine have the potential to threaten the supply of oil and gas from the region. The long-term impacts of the actions between these nations remains uncertain. Please refer to the Company's annual information form for the year ended December 31, 2024, and the Company's latest management discussion and analysis ("MD&A") for additional risk factors relating to Lycos, which can be accessed either on the Company's website at www.lycosenergy.com or under the Company's SEDAR+ profile at www.sedarplus.ca. Although Lycos believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Lycos can give no assurance that they will prove to be correct. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Lycos undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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