Results of Placing and Subscription

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, NEW ZEALAND, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A BREACH OF THE RELEVANT SECURITIES LAWS OF SUCH JURISDICTION.

This Announcement does not constitute a prospectus or offering memorandum or an offer in respect of any securities and is not intended to provide the basis for any investment decision in respect of Petro Matad Limited or other evaluation of any securities of Petro Matad Limited or any other entity and should not be considered as a recommendation that any investor should subscribe for or purchase any such securities.

This Announcement contains inside information for the purposes of the UK version of the market abuse regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").  In addition, market soundings (as defined in UK MAR) were taken in respect of certain of the matters contained in this Announcement, with the result that certain persons became aware of such inside information, as permitted by UK MAR.  Upon the publication of this Announcement, this inside information is now considered to be in the public domain and such persons shall therefore cease to be in possession of inside information.

For immediate release

11 July 2025

Petro Matad Limited

("Petro Matad" or the "Company")

Results of Placing and Subscription

Petro Matad Limited ("Petro Matad" or the "Company") (AIM: MATD), the AIM quoted Mongolian oil company, is pleased to announce that following the accelerated bookbuild which was announced at 4:35 p.m. on 10 July 2025 (the "Launch Announcement"), the Company has conditionally raised gross proceeds of GBP 2.84 million (c.US$4 million) through the Placing of 323,250,000 new Ordinary Shares, and Subscriptions for 32,169,117 new Ordinary Shares by each of a director and shareholder of the Company at a price of 0.80 pence (the "Placing Price") per share.

Shore Capital Stockbrokers ("Shore Capital") and Zeus Capital ("Zeus") acted as Joint Bookrunners.

Capitalised terms used in this announcement (this "Announcement") have the meanings given to them in the Launch Announcement, unless the context provides otherwise.

Highlights

·    The Company has conditionally raised, in aggregate, GBP 2.84 million (c.US$4 million) at a price of 0.80 pence per new Ordinary Share.

·    Petrovis Matad Inc. (a Substantial Shareholder as defined under the AIM Rules) is participating in the Subscription for a total of 27,573,529 Subscription Shares with a total value of US$300,000.

·    Mike Buck, CEO of Petro Matad, is participating in the Subscription for a total of 4,595,588 Subscription Shares with a total value of US$50,000.

·    Conditionally, in aggregate, a total of 355,419,117 Placing Shares and Subscription Shares will therefore be issued, representing approximately 19.32 per cent. of the enlarged share capital of the Company.

Funding allocation strategy

The proceeds of this capital raise will be allocated, as follows:

·    Heron-1:

o  Reducing operating expenditure at the producing Heron-1 well through a low-cost switch from diesel fired power to grid electricity.

·    Heron-2:

o  Low cost testing operations at Heron-2 well which was proven oil bearing in 2024.

·    Gazelle-1

o  Low cost testing operations at Gazelle-1 which has good log indications of potentially productive oil pay.

o  Positive results from Gazelle-1 will also provide information to determine an appraisal strategy for the structure.

·    Gobi Bear-1

o  Perform a test of Gobi Bear-1 where in 2024 logs identified a zone of interest in which geochemical studies on well cuttings indicated that migrated oil may be present.

o  In the event of success at Gobi Bear-1, this could add significant oil resources in Block XX.

The planned well testing constitutes a low cost, potentially high impact programme to be conducted over the next 6 months in parallel with ongoing efforts to introduce partners to the Block XX assets to accelerate their development, production ramp up and revenue and so increase shareholder value. With success in the testing operations, these wells can quickly be brought on stream through the existing production facilities at Heron-1 and can add to the Company's production revenue in the short term.

The balance of the capital raise, including any funds raised from the Retail Offer, will be allocated towards:

·    SunSteppe Renewable Energy

o  Petro Matad's SunSteppe Renewable Energy joint venture has secured exclusivity on two sizeable projects of 200MW and 1.5GW respectively and land lease and wind resource data gathering are scheduled to start.

o  In its role as local developer on these large projects, SunSteppe is looking to reach ready-to-build status in order to secure development premia when investors join the construction phase of the projects.

o Benchmarking past projects in Mongolia indicates that these large projects could attract multi-million dollar development premia from investors once they reach ready-to build status. Some of the proceeds from the capital raise will be directed at these two projects and on other projects that are currently under review by the SunSteppe team.

·    Block VII

o  Conduct geochemical evaluation and field work on this large area into which basins productive for oil to the south in northern China are believed to extend.

o  The Company is also seeking partners to join it in exploring this exciting acreage.

Retail Offer

Within the Launch Announcement it was noted that, as part of the Capital Raising, the Company was launching a separate retail offer of up to 62.50 million new Ordinary Shares at the Placing Price on the BookBuild Platform to raise up to a further £0.5m (c.US$0.7m) to provide existing retail shareholders in the United Kingdom with an opportunity to participate in the Capital Raising. A separate announcement will be made on the result of the Retail Offer, expected to be released on 16 July 2025.

Admission

Application will be made for the admission of 355,419,117 Placing Shares and Subscription Shares to trading on the AIM market of London Stock Exchange plc ("Admission"). It is ‎expected that such Admission will take place at or around 8.00 a.m. (London time) on 18 July 2025.

Following Admission, the Group's share capital and total voting rights will comprise 1,839,302,718 ordinary shares of US$0.01 each and the Group does not hold any shares in treasury. Consequently, 1,839,302,718 is the figure which may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.

Related Party Transaction

As a substantial shareholder, Petrovis Matad Inc.'s participation in the Subscription is deemed to be a related party transaction for the purposes of AIM Rule 13. The independent director of Petro Matad (being for this purpose Tim Bushell), having consulted with the Company's nominated adviser, Shore Capital, considers that the terms of Petrovis Matad Inc.'s participation in the Subscription are fair and reasonable insofar as Shareholders are concerned.

As a director, Mike Buck's intended participation in the Subscription is deemed to be a related party transaction for the purposes of AIM Rule 13. The independent Director of Petro Matad (being for this purpose Tim Bushell), having consulted with the Company's nominated adviser, Shore Capital, considers that the terms of his participation in the Subscription are fair and reasonable insofar as Shareholders are concerned.

Enquiries:

About Petro Matad

Petro Matad is the parent company of a group focussed on oil exploration, as well as future development and production in Mongolia. At the current time, Petro Matad holds 100% working interest and the operatorship of two Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 214 square kilometres in the far eastern part of the country and Block V has an area of 7,937 square kilometres in the central western part of the country.

Petro Matad Limited is incorporated in the Isle of Man under company number 1483V. Its registered office is at Victory House, Prospect Hill, Douglas, Isle of Man, IM1 1EQ.

Market Abuse Regulation

This Announcement is released by Petro Matad Limited and contains inside information for the purposes of UK MAR and is disclosed in accordance with the Company's obligations under UK MAR. The person who arranged for the release of this Announcement on behalf of Petro Matad Limited was Mike Buck, Chief Executive Officer.

Important Notices

Shore Capital is a member of the London Stock Exchange and is authorised and regulated in the United Kingdom by the Financial Conduct Authority (the "FCA") and Zeus is regulated in the United Kingdom by the FCA. Each of Shore Capital and Zeus is acting exclusively for the Company and no one else in connection with the Placing, and Shore Capital and Zeus will each not be responsible to anyone (including any Placees) other than the Company for providing the protections afforded to its clients or for providing advice in relation to the Placing or any other matters referred to in this Announcement.

The notification below, made in accordance with the requirements of UK MAR, provides further details of above transactions.