Financial Statements 31 March 2026

Interim Condensed Consolidated Financial Statements Three Months Ended 31 March 2026 and 2025

(Presented in U.S. Dollars)

19 May 2026

To the shareholders of Falcon Oil & Gas Ltd.

The accompanying unaudited interim condensed consolidated financial statements as at and for the three months ended 31 March 2026, have been prepared by the management of the Company and approved by the Audit Committee.

The Company's independent auditors have not performed a review of these financial statements.

Interim Condensed Consolidated Statement of Operations and Comprehensive Loss 4

Interim Condensed Consolidated Statement of Financial Position 5

Interim Condensed Consolidated Statement of Changes in Equity 6

Interim Condensed Consolidated Statement of Cash Flows 7

Notes to the Interim Condensed Consolidated Financial Statements 8

(Unaudited)

Loss per share attributable to equity holders of the company:

Basic and diluted 5 ($0.001) ($0.000)

The notes are an integral part of these interim condensed consolidated financial statements. Note 18 - discontinued operations

The notes are an integral part of these interim condensed consolidated financial statements. Note 18 - assets held for sale

(Unaudited)

The notes are an integral part of these interim condensed consolidated financial statements.

(Unaudited)

Three months ended 31 March

The notes are an integral part of these interim condensed consolidated financial statements.

1. General Information

   Falcon Oil & Gas Ltd. ("Falcon") is an oil and gas company engaged in the exploration and development of unconventional oil and gas assets. Falcon's interests are located in Australia, Hungary, and South Africa.

   Falcon is incorporated in British Columbia, Canada with a registered office at 1200 Waterfront Centre, 200 Burrard Street, Vancouver BC V7X 1T2, Canada and headquartered in Dublin, Ireland. Falcon's common shares are traded on Toronto's TSX Venture Exchange ("TSX-V") (symbol: FO.V); and AIM, a market operated by the London Stock Exchange (symbol: FOG).

   The information provided herein in respect of Falcon includes information in respect of its wholly-owned subsidiaries: TXM Oil and Gas Exploration Kft., a Hungarian limited liability company ("TXM"); Falcon Oil & Gas Ireland Limited, an Irish limited liability company ("Falcon Ireland"); Falcon Oil & Gas Holdings Ireland Limited, an Irish limited liability company ("Falcon Holdings Ireland"); Falcon Exploration and Production South Africa (Pty) Ltd., a South African limited liability company ("Falcon South Africa") and its 98.1% majority owned subsidiary, Falcon Oil & Gas Australia Limited, an Australian limited liability company ("Falcon Australia") (collectively, the "Company" or the "Group").

2. Material accounting policies

These Interim Condensed Consolidated Financial Statements ("Interim Statements") of the Group have been prepared in accordance with IAS 34 'Interim Financial Reporting' and, except as described below, on the basis of the same accounting principles as, and should be read in conjunction with, the Consolidated Financial Statements for the year ended 31 December 2025 (pages 11 to 16) as filed on the Canadian Securities Administrator's System for Electronic Document Analysis and Retrieval ("SEDAR+") at www.sedarplus.ca.

There are no amended accounting standards or new accounting standards that have any significant impact on these interim financial statements applicable as at 1 January 2026.

The Interim Statements are presented in United States dollars ("$"). All amounts, except as otherwise indicated, are presented in thousands of dollars. Where referenced in the Interim Statements "CDN$" represents Canadian Dollars, "£" represents British Pounds Sterling, "HUF" represents Hungarian Forints, and "A$" represents Australian Dollars.

On 30 September 2025 Falcon and Tamboran Resources Corporation (NYSE: TBN, ASX: TBN) ("Tamboran") entered into a transaction ("Transaction") whereby Tamboran will acquire all of Falcon's subsidiaries (as listed under "1. General Information") in exchange for 6,537,503 shares of Tamboran NYSE Common Stock (the "Share Consideration") and cash consideration of $23.7 million (the "Cash Consideration") for non-eligible shareholders, which was approved by the Company's shareholders on 11 March 2026. The Transaction will result in the transfer of substantially all of the Group's assets and liabilities, and it will have no active operations going forward. Pursuant to the Transaction, eligible Falcon shareholders will exchange their common shares for the Share Consideration on the basis of 0.00687 Tamboran common shares for each Falcon common share and the Cash Consideration will be paid by Tamboran into a blocked account in the name of a sanctioned shareholder. The Transaction is expected to close in Q2 2026, subject to satisfaction of closing conditions, (see also note 18). Furthermore, as agreed as part of the Transaction, Tamboran has, subject to certain conditions, agreed to use commercially reasonable endeavours to pay any cash calls or credit support required to be paid by Falcon, in accordance with the terms of the Beetaloo Joint Operating Agreement and the APA Development Agreement as applicable from the 30 September 2025. The Arrangement Agreement further provides that, upon termination under certain circumstances, Falcon would be required to pay to Tamboran a termination fee of $1.62 million or reimburse Tamboran for its documented out-of-pocket expenses incurred in connection with the arrangement in connection with such termination and should Tamboran terminate they would be required to pay to Falcon a termination fee of $3.75 million in connection with such termination.

As of 31 March 2026, the Group had $0.2 million of cash and cash equivalents however that balance has been fully expended at the date of the approval of these financial statements. On March 31, 2026 the Group signed a side letter to the Arrangement Agreement entered into with Tamboran, subject to applicable law, pursuant to which, as a result of delays to the completion of the Transaction Tamboran has agreed to provide initial funding of $728,000.00 and an additional payment of up to $272,000.00 if required to Falcon to ensure Falcon can continue to meet its obligations as they fall due in the period prior to completion of the Transaction. In addition to this, Falcon has submitted a Research and Development tax Incentive application for approximately $2 million with the refund expected subsequent to the

1. Material accounting policies (continued)

   issue of the financial statements. On receipt, this will provide additional cash resources for the Group towards its own operating costs.

   Management and those charged with governance are confident that the Transaction will be completed since shareholder approval was obtained on 11 March 2026 and the Supreme Court of British Columbia approved the final order regarding the Transaction, subject to certain amendments on 26 March 2026, however if the Transaction does not complete further funding would be required and there can be no certainty that sufficient funds can be raised as required. This indicates the existence of a material uncertainty, which may cast significant doubt over the Group's ability to continue as a going concern, and therefore, it may be unable to realise its assets and discharge its liabilities in the normal course of business. The financial statements do not include adjustments that would result if the Group was unable to continue as a going concern. Having given due consideration to the Transaction as noted above and the cash requirements of the Group, management and those charged with governance has a reasonable expectation that the Group will have adequate resources to continue in operational existence for a period up to the finalization of the Transaction or if for whatever reason the Transaction does not proceed for at least twelve months from the date of approval of these financial statements. For this reason, the Board continues to adopt the going concern basis in preparing these consolidated financial statements which assumes the Group will be able to meet its liabilities as they fall due for the foreseeable future.

2. Segment information

   Based on internal reporting information, it was determined that there is one reportable segment. All of the Group's operations are in the petroleum and natural gas industry with its principal business activity being in the acquisition, exploration and development of petroleum and natural gas properties. The Group has no producing petroleum and natural gas properties, the Group has unproven petroleum and natural gas interests in Australia, South Africa and Hungary.

   The key performance measures reviewed for the segment which management believes are the most relevant information when evaluating the results of the Group are:

   • the progress and extent to which farm-out agreements have been executed over the Group's acreage; and

   • cash flow, capital expenditure and operating expenses.

     An analysis of the geographic areas is as follows:

     Australia South Africa Hungary				Other	Total
     $'000 $'000 $'000				$'000	$'000
     Three months ended 31 March 2026: Net loss (i) (72) (2) (259)				(917)	(1,250)
     Non-current assets (ii) 59,498 - 2,319				35	61,852
     Three months ended 31 March 2025:
     Net loss (i)	(104)	(15)	(118)	(260)	(497)
     Non-current assets (ii)	53,347	-	2,091	32	55,470

     1. Net loss attributable to equity holders of the company.

     2. Non-current assets consist of exploration and evaluation assets, restricted cash and decommissioning provision deposits.

3. Finance income and expense

   Three months ended 31 March

   	Notes	2026 $'000	2025 $'000
   Finance income Interest income on bank deposits		1	8
   Net foreign exchange gain		33	90
   Finance expense		34	98
   Decommissioning provisions	13	(150)	(141)
   		(150)	(141)
   Net finance expense		(116)	(43)

   For details on expenses related to discontinued operations, refer to note 18.

4. Loss per share

   Basic and diluted loss per share is calculated as follows:

   For the three months ended 31 March

   	2026 $'000	2025 $'000
   Loss attributable to equity holders of the company	(1,250)	(497)
   Weighted average number of common shares in issue - (thousands)	1,109,142	1,109,142
   Loss / diluted loss per share	($0.001)	($0.000)

   Future shares issuable under the Group share option plan would be anti-dilutive as those shares would reduce the loss per share.

5. Exploration and Evaluation ("E&E") assets - Australia

   E&E assets represent assets held for sale as of 31 March 2026.
   	At 31 March	At 31 December
   	2026 $'000	2025 $'000
   Opening balance	56,797	50,291
   Additions	2,269	6,569
   Decommissioning provision	-	(63)
   Closing balance	59,066	56,797

   E&E assets consist of the Group's Australian exploration project which is pending the determination of proven or probable reserves.

6. Restricted cash

   Restricted cash represents assets held for sale at 31 March 2026.
   	31 March	31 December
   	2026 $'000	2025 $'000
   Restricted cash	35	35
   	35	35

7. Cash and cash equivalents

   Cash and cash equivalents include cash on hand, deposits held on call with banks, other short term highly liquid investments with initial maturities of three months or less at inception. At 31 March 2026, $28,000 relates to assets held for sale.

   31 March 2026

   31 December

   2025

   $'000 $'000

   Cash 197 1,282

   197 1,282
8. Share based compensation

The Group, in accordance with the policies of the TSX-V, may grant options to directors, officers, employees and consultants, to acquire up to 10% of the Group's issued and outstanding common stock. The exercise price of each option is based on the market price of the Group's stock at the date of grant, which may be discounted in accordance with TSX-V policies. The exercise price of all options granted to date has been based on the market price of the Group's stock at the date of grant, and no options have been granted at a discount to the market price. The options can be granted for a maximum term of five years. The Group records compensation expense over the vesting period based on the fair value at the grant date of the options granted. All Options granted have a vesting schedule allowing one third of the Options to vest immediately at the date of grant with an additional one third vesting on each subsequent anniversary. These amounts are recorded as contributed surplus. Any consideration paid on the exercise of these options together with the related contributed surplus associated with the exercised options is recorded as share capital.

The Group incurred no share-based expense for the period ended 31 March 2026 (2025: Nil).

A summary of the Group's stock option plan as of 31 March 2026 and 31 December 2025 and changes during the periods then ended, is presented below:

The exercise prices of the outstanding options are as follows:

A number of the Group's accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and / or disclosure purposes based on the methods outlined below. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

Cash and cash equivalents, restricted cash, accounts payable and accrued expenses

As at 31 March 2026 and 31 December 2025, the fair value of cash and cash equivalents, restricted cash, accounts payable and accrued expenses approximated their carrying value due to their short term to maturity.

1. Financial Instruments and risk management

   The following tables provide fair value measurement information for financial assets and liabilities as at 31 March 2026 and 31 December 2025. The carrying value of cash and cash equivalents, restricted cash, and accounts payable and accrued expenses included in the consolidated statement of financial position approximate fair value due to the short-term nature of those instruments. Financial assets in the table below are measured at amortized cost.

   	Carrying value	31 March 2026 Fair value	31 Carrying value	December 2025 Fair value
   	$'000	$'000	$'000	$'000
   Financial assets: Cash and cash equivalents including restricted cash	232	232	1,317	1,317
   Financial Liabilities: Other financial liabilities Accounts payable and accrued expenses	3,969	3,969	1,753	1,753
   Lease liability	-	-	6	6

   The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

   Level 1 Fair Value Measurements

   • Level 1 fair value measurements are based on unadjusted quoted market prices.

     Level 2 Fair Value Measurements

   • Level 2 fair value measurements are based on valuation models and techniques where the significant inputs are derived from quoted indices.

     Level 3 Fair Value Measurements

   • Level 3 fair value measurements are based on unobservable information. No financial assets or liabilities have been valued using Level 3 fair value measurements.

2. General and administrative expenses

For the 3 months ended 31 March 2026, $641,000 (see note 18) of the $981,000 for general and administrative expenses represents expenses related to discontinued operations.

For the three months ended 31 March

A reconciliation of the decommissioning provision for the period ended 31 March 2026 and the year ended 31 December 2025 is provided below. As of 31 March 2026, $17,445,000 of the balance relates to liabilities directly associated with assets held for sale.

The Group's decommissioning provision results from its ownership interest in oil and natural gas assets. The total decommissioning provision is estimated based on the Group's net ownership interest in the wells, estimated costs to reclaim and abandon these wells and the estimated timing of the costs to be incurred in future years.

The Group has estimated the net present value of the decommissioning provision for its Hungarian well interests to be

$14.5 million as at 31 March 2026 (31 December 2025: $14.4 million) based on an undiscounted total future liability of

$16.6 million (31 December 2025: $16.7 million). These payments are expected to be made in 4 years. The discount factor, being the risk-free rate related to the liability, was 3.64% as at 31 March 2026 (31 December 2025: 3.64%). The inflation factor related to the liability was 2.32% as at 31 March 2026 (31 December 2025: 2.32%). A 1% increase / (decrease) in the discount rate will (decrease) / increase the provision by ($599,000) / $451,000.

The estimated net present value of the decommissioning provision for its Australian Beetaloo well interests is $2.9 million as at 31 March 2026 (31 December 2025: $2.78 million) based on an undiscounted total future liability of $6.6 million (31 December 2025: $6.5 million). These payments are expected to be made between 2-29 years. The discount factors, being the risk-free rate related to the liability, were 4.056% and 5.213% respectively as at 31 March 2026 and 31 December 2025. The inflation factor related to the liability, was 2.50% as at 31 March 2026 and 31 December 2025. A 1% increase / (decrease) in the discount rate will (decrease) / increase the provision by ($305,000) / $391,000.

As of 31 March 2026, $3,623,000 of accounts payable and accrued expenses relates to liabilities directly associated with assets held for sale

The Group planned a drilling programme which commenced in 2015 with its farm-in partners. Work recommenced in 2019 following the moratorium on hydraulic fracturing, details of current operations are included in the Management's Discussion & Analysis document for the three and twelve months ended 31 December 2025.

Since April 2020 Falcon Australia holds a 22.5% PI in the EPs and there was also an overall cost cap of A$263.8 million resulting from farm out transactions agreed to up to that date. In October 2022, Falcon Australia was granted an additional carry on costs up to A$30 million (gross) and there was the introduction of DSUs on sole risk operations providing optionality to Falcon Australia on future wells drilled. The size of a DSU varies depending on (a) the type and length of the well to be drilled and (b) whether or not the well is a "commitment well" under the terms of the EPs, a non-commitment well creates a DSU to a maximum of 6,400 acres, while a government commitment well creates a DSU to a maximum of 25,600 acres. The optionality created by the DSUs allows Falcon to participate at its PI of 22.5% or reduce its interest as low as 0% in a particular DSU without impairing the percentage it participates in a future DSU across the acreage. The cost cap and the additional carry have now been consumed and Falcon Australia is contributing to the costs in proportion to its 22.5% PI or reduced interest as elected. A Pilot Project at the Shenandoah South location commenced in 2024 with Falcon Australia electing to reduce its PI in the first two wells of the Pilot Project to 5% and further reducing its PI in the remaining wells drilled in the Pilot Project in 2025 to 0%.

The terms of the Beetaloo Joint Venture continue to necessitate specific minimum work obligations through May 2028. Future commitments for the next two years to May 2028 include an expected gross spend of A$106,750,000 across the three exploration permits, related to drilling and multi-stage stimulations, 3D seismic survey, and sub-surface studies, with gross expenditure across EP76 of A$20,750,000, EP 98 of A$63,650,000 and EP 117 of A$22,500,000.

Falcon Australia's level of future spend will be dependent on the participating interest it opts into each of the joint

operations at.

South Africa - Karoo Basin, South Africa

On granting of an approved exploration right in South Africa, the Group will be required to make a payment to the South African government of approximately $0.7 million. Management does not foresee this payment falling due within the

next 12 months based on the expected timeframe of being granted an approved exploration right.

Hungary - Makó Trough, Hungary

The Group is not committed to any independent technical operations in Hungary.

1. Subsequent events

   For the period end 31 March 2026, the Company has not recognised a research and development ("R&D") tax incentive receivable related to expenditure incurred in 2024, a submission to the Australian Tax Office was made in April 2026 to obtain the applicable refund which is estimated to be approximately $2 million.

   There were no other significant changes in the state of affairs of the Company that occurred since the period end of the period under review.

2. Assets held for sale, discontinued operations

   During quarter 1 2026 Falcon obtained shareholder approval for the Transaction, for further detail please refer to note

   2. While the Transaction had been agreed and announced on 30 September 2025; completion of the Transaction was subject to shareholder and court approval. In March 2026, the Supreme Court of British Columbia approved the transaction, subject to certain amendments to the Plan of Arrangement relating to the treatment of Falcon shareholders that are subject to sanctions.

   Tamboran and Falcon agreed to extend the Plan of Arrangement until June 30, 2026.

   Given the Transaction is for Tamboran to acquire all the subsidiaries of Falcon, which represents materially all elements of the Interim Condensed Consolidated Statement of Financial Position, Falcon has identified in the respective notes of these Interim Financial Statement balances that represent assets held for sale and liabilities directly associated with assets in a disposal group held for sale. Furthermore, from an Interim Condensed Consolidated Statement of Operations and Comprehensive Loss perspective for the three months ended 31 March 2026, the loss incurred for the period relating to discontinued operations was as follows:

   For the three months ended

   31 March 2026 $'000

   Exploration and evaluation expenses (45)

   General and administrative expenses (641)

   Foreign exchange expense (107)

   Finance income 33

   Finance expense (164)

   Loss and comprehensive loss for the period associated with discontinued operations (924)

   General and administrative expenses detail related to discontinued operations

   For the three months ended 31 March

   2026 $'000

   Accounting and audit fees (61)

   Consulting fees 27

   Legal fees (268)

   Investor relations (274)

   Office and administrative costs (20)

   Directors' fees (45)

   (641)
3. Approval of Interim financial statements

These Interim Financial Statements were approved by the Audit Committee as delegated by the Board of Directors and authorised for issue on 19 May 2026.