Second Quarter Results (Quarterly report Q2 F26)

International exploration & production

The following Management's Discussion and Analysis ("MD&A") of the consolidated financial results of Bengal Energy Ltd. ("Bengal" or the "Company") is at and for the three and six months ended September 30, 2025. This MD&A dated November 6, 2025, should be read in conjunction with the Company's unaudited interim condensed consolidated financial statements and related notes for the three and six months ended September 30, 2025. The interim condensed consolidated financial statements of the Company have been prepared in accordance with International Accounting Standard No. 34, Interim Financial Reporting ("IAS 34"). These accompanying interim condensed consolidated financial statements have not been reviewed by the Company's independent auditors.

The functional currency of the Company's operating subsidiary, Bengal Energy (Australia) Pty Ltd. ("Bengal Australia"), is the Australian dollar; the functional currency of the Company is the Canadian dollar ("CAD"). The Company's presentation currency is the CAD. In this MD&A, all dollar amounts are expressed in CAD unless otherwise noted.

This MD&A contains non-IFRS measures, abbreviations and forward-looking information relating to future events and the Company's future performance. Please refer to "Non-IFRS Measurements", "Abbreviations" and "Advisories" sections at the end of this MD&A for further information. Additional information relating to Bengal, including Bengal's audited March 31, 2025, consolidated financial statements and other filings are available on SEDAR at https://www.sedarplus.ca. In the following discussion, the three months ended September 30, 2025, may be referred to as "second quarter of fiscal 2026", "Q2 fiscal 2026", "current quarter", and "the quarter". The comparative three months ended September 30, 2024, may be referred to as "second quarter of fiscal 2025", "Q2 fiscal 2025" and "prior year's quarter".

Financial summary:

• Sales revenue - Crude oil sales revenue was $0.9 million in the second quarter of fiscal 2026, 24% lower than $1.3 million in Q2 fiscal 2025. Production was 114 barrels of oil per day ("bopd") in Q2 fiscal 2025, 10% lower than 127 bopd in Q2 fiscal 2025 and realized pricing was US$68.97 per barrel ("bbl"), 16% lower during Q2 fiscal 2026 compared to US$82.59/bbl Q2 fiscal 2025.

• Funds from operations 1 - Funds used in operations was $0.4 million during Q2 fiscal 2026 compared to funds (used in) operations of $0.3 million in Q2 fiscal 2025 driven by a $0.3 million decrease in revenue and a $0.1 million increase in operating expense. The decrease in operating margins was partially offset by a $0.2 million reduction in general and administrative expenses.

• Net loss - Bengal reported a net loss of $0.7 million in Q2 fiscal 2026 compared to net loss of $0.6 million in Q2 fiscal 2025.

  Operational summary:

• Production volumes - The Company's share of total Cuisinier production in the current quarter was 10,530 (114 bopd), a decrease of 10% compared to production of 11,670 bbls (127 bopd) in the second quarter of fiscal 2025. The decrease in production was due to the impact of downtime at four Cuisinier wells for which production did not resume until September 2025. Incremental production from workover activity was expected during the quarter however production improvements were delayed due to a flooding event in the Cooper Basin restricting surface operations. The Company continues to investigate allocation anomalies and is working with the operator to evaluate the impacts of downtime and reactivations; however, the timing and volume of expected incremental production is currently uncertain.

Business Overview

‌1 See "Non-IFRS and Other Financial Measures" on page 11 of this MD&A.

2

Bengal's producing and non-producing assets are situated in Australia's Cooper Basin, a region featuring large accumulations of very light and high-quality crude oil and natural gas. The Company's core Australian assets, Petroleum Lease ("PL") 303 Cuisinier, Authority to Prospect ("ATP") 934 Barrolka, Potential Commercial Area ("PCA") 332 (formerly ATP 732) Tookoonooka, and four petroleum licenses are situated within an area of the Cooper Basin that is well served with production infrastructure and take-away capacity for produced crude oil and natural gas. Still in early stages in terms of appraisal and development, Bengal believes these assets offer attractive upside potential for both oil and gas. Australia presents a stable political, fiscal, and economic environment in which to operate, and a favourable royalty regime for oil and gas production. In addition, Bengal owns a 26km 6" high pressure gas pipeline (PPL 138) connecting the Wareena field to a large raw gas network passing Bengal's prospects at ATP 934.

Under the State of Queensland Regulatory process, ATPs are granted by the State generally for a period of twelve years with one-third of the original grant area expiring every four years. At the end of the final term of the ATP, an application can be made to continue a portion of the permit in the form of a Potential Commercial Area ("PCA"). PCAs have a life span of five to fifteen years. PCA applications include a commercial viability report that indicates that the area is likely to be commercially viable within the applied term. This allows for extra time to commercialize any identified Resource. These PCAs remain a part of the ATP until expiry. If a discovery of oil or gas is made, an application for a PL is made to allow for production. PLs are granted for up to a thirty-year term.

Bengal has a 30.375% interest in two PLs on the former ATP 752 Barta block, PL 303 and PL 1028. In addition, the Company has three PCAs associated with ATP 752 which are the Barta block, PCA 206 and PCA 207 and PCA 155 in the Wompi block which contains the Nubba well. Bengal also holds a 100% working interest in four PLs including PPL 188 adjacent to the 100% owned ATP 934.

Following extensive public consultation, in late December 2023 the Queensland government released a document outlining its plans for increased restrictions to petroleum activities within the rivers and floodplains area of the Lake Eyre Basin (LEB) catchment. Bengal Energy areas affected by this are the western portion of the Durham Downs block (ATP 934) where Bengal holds a 40% interest and PCA 155 (Nubba)(ATP 752 Wompi) in which Bengal holds a 38% interest. Of these permits, work can continue to develop gas resources under an existing petroleum lease. No additional PL's have been acquired by Bengal since the new Queensland Legislation came into effect.

In the Wompi portion of the Bengal ATP 752 permit (Bengal 38.5% WI) the discovered volumes of natural gas in the Nubba well are deemed too small for commerciality, and Bengal and partners will move to relinquish this block. In the western portion of ATP 934 in the Durham Downs East block (Bengal 40% W.I.) which is the part of ATP 934 which was farmed out, the operator is expected to withdraw from the permit subject to the terms of the Joint Operating Agreement (JOA) leaving Bengal with 100% interest. Bengal anticipates relinquishing this interest and is working with the regulator to secure favourable relinquishment terms. Neither of these assets have any carrying value in the Company's financial statements. Bengal prospects within Barrolka East (ATP 934 - 100% WI), Ghina (PL 1109 - 100% WI), Wareena (PL 1110 - 100% WI), Ramses PL 188, Karnak PL 411 and Tookoonooka (PCA 332 - 100% WI) are unaffected.

AUSTRALIA - Cooper Basin, Queensland

PL 303 Barta Block Cuisinier (controlling permit ATP 752) (30.357% WI)

The water injection pilot at Cuisinier has been permanently suspended by the operator. Whilst the JV has observed compelling evidence that the overall field decline was temporarily arrested with a modest upward trend in oil production during periods of operation, the water injection program has suffered from extended shut-in periods due to equipment failure and lack of available replacement parts. The program was intermittently operational during fiscal 2025; however, its impact to the joint venture was not measurable given unexplained changes to the Operator's allocation methodology. Bengal continues to challenge the Operator on this performance shortfall; the validity of its evaluation of the water injection pilot and is strongly encouraging the Operator to focus its development activities on pressure maintenance in the reservoir before considering new drilling activity.

PL 114 Wareena, PL 157 Ghina, PL 188 Ramses, PL 411 Karnak, PPL 138 pipeline (100% WI)

The Company has a 100% working interest in four PLs and a natural gas pipeline connected to transportation infrastructure into the Eastern Australia Gas Market. These non-productive PLs are highly compatible and near ATP 934.

The 100% ownership of these assets presents an appraisal and development opportunity (subject to available financing) that will be operated by the Company and is seen as a steppingstone for Bengal's natural gas platform upon which future development and appraisal work at the existing PLs and exploration growth through ATP 934 can be undertaken.

PCA 332 Tookoonooka (100% WI; formerly ATP 732)

Bengal conducted an acid treatment in 2022 on the Caracal-1 well to improve well bore inflow with moderate inflow of very light 53-degree gravity oil from the Wyandra zone. While not immediately commercially viable, fracture stimulation (subject to financing) is being considered to enhance productivity. The well is currently suspended with shut-in pressure data being monitored.

ATP 732 reached the end of its term in March of 2023, and the Company lodged an application over the northern portion of the ATP for continuation in the form of PCA 332 for a further 15 years. Based on the positive results from Caracal-1, the application was approved on January 30, 2023. The PCA, granted by the Queensland Government in record time, provides much-needed certainty for Bengal to focus on its hydrocarbon projects in the Talgeberry-Tintaburra corridor. The majority of PCA 332 is covered by 3D seismic which has outlined the prospective targets as described in the Company's press release: "Bengal Energy Announces Independent Oil and Natural Gas Resource Report" dated March 30, 2022. The Company announced the completion of its Field Resource Maturation and Development Plan for its Tookoonooka PCA332 on March 14, 2024.

ATP 934 Barrolka East (100% WI)

ATP 934 is the Company's 100% owned natural gas exploration block. The current LWP includes the drilling of up to two wells and acquisition of 260 km2 of 3D seismic. The Company has proposed a swap of non-prospective land in the Durham Downs portion of this ATP in consideration for a reduction in the outcome-based LWP and a potential further extension.

AC/RL 10 Katandra (100% WI)

Bengal submitted a notification of withdrawal in relation to its renewal application of the retention lease in May 2025. This was accepted by the Australian Government on May 6, 2025. Given that these assets had nil carrying value, there was no financial statement impact from this relinquishment. There are no abandonment liabilities associated with this licence.

Business development

From time to time, Bengal has been in discussions regarding potential farm-out opportunities surrounding its exploration and development portfolio, as well as other corporate initiatives including acquisitions and divestitures aimed at increasing shareholder value. With oil prices under pressure and junior equity markets virtually closed for oil and gas companies, Bengal has been unable to advance these initiatives to date.

OPERATING SUMMARY

($000s except per share, %, volumes and operating netback(1) amounts)

Three months ended

September 30,

Six months ended September 30,

Non-IFRS and Other Financial Measures.

RESULTS OF OPERATIONS

Production Three months ended

September 30,

Six months ended September 30,

The Company's share of total Cuisinier production in the current quarter of fiscal 2026 was 10,530 (114 bopd), representing a decrease of 10% compared to production of 11,670 bbls (127 bopd) in the second quarter of fiscal 2025. For the six months September 30, 2025, production was 21,440 (117 bopd), a decrease of 22% from the

six months September 30, 204 of 27,463 bopd (150 bopd).

The decrease in production was due to downhole issues in four Cuisinier wells deferring 30 bopd of production net to Bengal during downtime. Workover activities since Q1 fiscal 2026 have restored production from all wells by September 2025; however, due to a change in field measurement process by the Operator, the Company's allocated production has not been restored to historical decline-based expected volumes. The Company is currently investigating anomalies in the allocation methodology and working directly with Cuisinier's Operator to address these issues.

Revenue/Pricing

The following table outlines the oil lifting from bills of lading, pipeline oil estimates, applicable prices and oil sales reflected in the Company's financial statements:

Three months ended

September 30,

Six months ended September 30,

The price received for Bengal's Australian oil sales is benchmarked on US Brent for the month in which the bill of lading occurs, plus a realized premium due to oil quality differences. Pipeline oil is the term used to describe oil moving along the pipeline from the wellhead to the port which has been legally transferred to the buyer but not priced and waiting to be sold. Lifting occurs when the oil is moved from the port to the ship. The Cuisinier Joint Venture has recently negotiated a revised COPSA with corresponding transportation agreements effective January 1, 2025, through to December 31, 2025.

The realized weighted average price of oil lifting sales was US$70.49/bbl and US$84.61/bbl for the current and previous year's quarters respectively, which is a decrease of 17%. Brent reference price between the two fiscal quarters was 14% lower. During the current quarter fiscal 2026, the value of the pipeline oil decreased by $0.3 million due pricing, contributing to the oil price decrease.

Oil sales were $0.9 million in the second quarter of fiscal 2026, decrease of 24% compared to $1.3 million in the second quarter of fiscal 2025. Oil sales were $2.0 million for the six months ended September 30, 2025, compared to $3.2 million for the six months ended September 30, 2024. Factors include the 14% decline in oil price as well as 10% decline in production from 127 bopd in Q2 fiscal 2025 to 114 bopd in Q2 fiscal 2026. For the six months ended September 30, 2025, production decreased by 22% to 117 bopd from prior fiscal period six months ended September 30, 2024, of 150 bopd.