Trillion Energy Announces Amendment to M47 Farm-In Agreement Gaining Additional Flexibility Through 2027 for Earn-in Commitments

Rhea-AI Summary

Trillion Energy (OTCQB: TRLEF) amended its M47 farm-in agreement, extending and restructuring earn-in payments for the onshore M47 oil block in Türkiye. About USD$4.35 million is now due by September 15, 2026, with further payments deferred to September 2027.

The company is earning a 29% interest via a USD$15 million commitment, funding 80% of the next work program phase, as several new wells and up to 80 potential North Block development wells are evaluated.

Positive

• Next USD$4.35 million tranche deferred to September 15, 2026
• Further earn-in payments postponed until September 2027
• Total USD$15 million earn-in for 29% interest in M47 Block
• Trillion funds 80% of next work program, advancing M47 development
• North Block potential for up to 80 vertical development wells
• Independent appraisal indicates 81% chance of commerciality for North Block

Negative

• Significant remaining USD$15 million overall earn-in commitment
• Trillion responsible for 80% of next work program costs
• Funding terms for one partner-covered well still under discussion
• Targeted production timing depends on meeting earn-in and drilling milestones

News Market Reaction – TRLEF

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In the Jul 9 session, TRLEF declined 1.11%, reflecting a mild negative market reaction.

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Vancouver, British Columbia--(Newsfile Corp. - July 9, 2026) - Trillion Energy International Inc. (CSE: TCF) (OTCQB: TRLEF) (FSE: Z62) ("Trillion" or the "Company") is pleased to announce an extension and restructuring of payments required in its earn-in agreement for the M47c,d oil block (the "M47 Block"), an onshore exploration asset in the Cudi-Gabar petroleum province of southeastern Türkiye.

As previously announced, the Company entered into a Farm-In Agreement on January 9, 2026, to acquire 29% participating interest in the M47 Block. In exchange for USD$300,000 advanced on July 4, 2026, as part of the earn-in commitment, the remainder of Trillion's next tranche of funding commitment has been extended to September 15, 2026. Approximately USD$4.35 million is payable by September 15, 2026. Further payments are postponed until September 2027, providing Trillion with additional financial flexibility.

The payment timing intervals correspond to seismic and other commitments required to advance exploration and development plans for the block without undue delays. The Company's financial commitment will cover 80% of the next component of the work program, including, inter alia, development activities in the North Block. One additional well is expected to be covered by another partner, the terms of which are under discussion at this time. Several new wells are expected over the next 12 months as exploration and development ramps up on the block. Other block partners are expected to make significant additional financial contributions; Trillion's financial commitment will also be prorated to its interest after its entire $15 million earn-in commitment is expended. The North Block has the potential for up to 80 vertical development wells, subject to commerciality, which has been evaluated at 81% chance of commerciality by independent appraisal on a 95,315 MSTB gross PIIP-derived resource.

Scott Lower, President, stated: "The Company is strongly committed to its investors and partners to make the M47 a producing block, given the region's strong momentum for development ramp-up. Meaningful production is targeted to start later this year upon meeting our earn-in commitment and well drilling/workover activities commencing, and this revised agreement provides additional optionality to achieve it."

About the M47c,d Oil Block

The M47c,d oil block covers approximately 450 km² within the Cudi-Gabar petroleum province, approximately 11 km southeast of the Şehit Aybüke Yalçın field, Türkiye's largest onshore light oil discovery. The region hosts a significantly established production, with over 100 analogue wells operating nearby. An independent NI 51-101 resource evaluation has identified meaningful contingent and prospective oil resources on the Block, providing a strong technical foundation for the upcoming work program. Highlights of the opportunity are as follows:

• 2C Contingent Resource of 27.6 MMbbl on the North Discovery, with an unrisked NPV-10 of USD$733.5 million.

• Approximately 11 km from the Şehit Aybüke Yalçın oil field, Türkiye's largest onshore oil discovery

• Light oil discovery confirmed at 32.4° API gravity (2025)

• 38 metres of net oil pay at C-1 discovery well (2025)

• Total unrisked resource potential of 51.6 MMbbl net to Trillion across three prospects, with a North Prospect 3C estimate at an unrisked NPV-10 of USD$1.18 billion.

• Seven newly discovered analog oil fields in the Gabar region over the past five years

• Analog Gabar regional fields produce a combined rate of over 80,000 bbl/d

• 578,213 MSTB PIIP (100% interest) assessed by appraisal

About Trillion Energy International Inc.

Trillion Energy International Inc. is a Canadian oil exploration company focused on Türkiye. The Company has an agreement to earn 29% working interest in the M47 oil exploration block (C3 and C4 licenses) located in the Cudi-Gabar petroleum province of southeastern Türkiye. More information may be found on www.sedarplus.ca and on the Company's website at www.trillionenergy.com.

Requests for further information should be directed to:
Scott Lower, President
e-mail: info@trillionenergy.com
Trillion Energy International Inc.
Suite 700, 838 West Hastings Street
Vancouver, B.C., V6C 0A6
Corporate offices: 1-778-819-1585

Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws, including statements regarding the extension of the Company's payment and funding commitments under the Farm-In Agreement; the related financing to advance the earn-in; the Company's completion of the earn-in and its participating interest in the M47 Block; the use of proceeds; and the contingent and prospective resources. This information reflects the Company's current expectations and is subject to risks and uncertainties, including that the financing may not be completed on the terms, timing or at all; that required regulatory, stock exchange and securities approvals may not be obtained; that the funding milestones may not be met; and commodity price, exploration, dilution, Türkiye regulatory, JOC partner and currency risks. Readers should not place undue reliance on forward-looking information, which is made as of the date hereof; the Company disclaims any obligation to update it except as required by applicable securities law.

Oil and Gas Disclosure, COGEH / NI 51-101

This news release has been prepared in accordance with National Instrument 51-101 ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook ("COGEH"). The contingent and prospective oil resources referred to are estimates from an independent evaluation prepared by Chapman Petroleum Engineering Ltd. (effective December 31, 2025); they are estimates only, are not reserves, and there is no certainty they will be commercially produced or, in the case of prospective resources, discovered.

Analogue fields -References to the Şehit Aybüke Yalçın field and other nearby producing fields, and to current Gabar production of approximately 80,000 barrels per day are based on publicly available information reported by Türkiye Petrolleri Anonim Ortaklığı ("TPAO") and public media sources; Trillion has no direct knowledge of their data, which is not necessarily indicative of results at Block M47C3,C4. Any reference to nearby or analog field discoveries and production rates in the Gabar/Cudi petroleum province is historical information about third-party properties in the same geological trend and is not an estimate of resources attributable to the Company's M47 Concession.

Contingent Resources The C2 case represents the "2C" (best estimate) Contingent Resources category for the North Prospect (Mardin Group), based on 82 gross drilling locations, with associated gross Contingent Resources of 27,641 MSTB light oil (24,186 MSTB net to the Company's appraised working interest). Chapman has assigned a Chance of Development of 81% to this case, derived from an assessment of economic viability, market access, production and transportation infrastructure, regulatory and social license, and corporate/external approvals. Because the North Prospect resources are discovered no Chance of Discovery risk applies. Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered commercially recoverable due to one or more contingencies. The primary contingency affecting this project is the early stage of development; a Project Maturity Sub-class of "Development Unclarified" has been assigned, as drilling operations are still being planned by the Company. Estimated net present values (before income tax) associated with the 2C case, both before and after application of the Chance of Development, are set out above.

Total unrisked resource potential (51.6 MMbbl net to Trillion). This figure aggregates the 2C Contingent Resources estimate for the North Prospect (27,641 MSTB) with the arithmetic-average Prospective Resources estimates for the Central Prospect (14,964 MSTB) and Findik Prospect (9,023 MSTB), representing Trillion's 29% working and/or royalty interest share before deduction of third-party royalties.

578,213 MSTB PIIP (100% interest). Petroleum Initially-In-Place ("PIIP") is the estimated quantity of petroleum estimated to exist in the reservoir prior to production, on a 100% (gross property) basis, before application of a recovery factor. PIIP is not a resources or reserves estimate and is not, and should not be construed as, an estimate of recoverable volumes. Only a portion of PIIP is classified as Contingent or Prospective Resources after application of the applicable recovery factor (20-40%, depending on the prospect and case), and only the resources so classified — not the PIIP — are subject to the resource and economic estimates disclosed elsewhere in this release. As with the resource-potential figure above, this total combines PIIP for a discovered (Contingent) accumulation with PIIP for undiscovered (Prospective) accumulations.

Additional information, including the applicable resource definitions, evaluation assumptions, and risk factors, is available in the Company's continuous disclosure record on SEDAR+.

Neither the Canadian Securities Exchange nor its regulation services provider accepts responsibility for the adequacy or accuracy of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/304561

FAQ

What change did Trillion Energy (TRLEF) announce to the M47 farm-in agreement on July 9, 2026?

Trillion Energy announced an amendment extending and restructuring payments under its M47 earn-in agreement. According to Trillion Energy, the next major tranche now falls due on September 15, 2026, with later payments postponed to September 2027, providing added financial flexibility for development.

How much must Trillion Energy pay under the M47 earn-in by September 15, 2026?

Trillion Energy expects to pay approximately USD$4.35 million by September 15, 2026. According to Trillion Energy, this follows a USD$300,000 advance made on July 4, 2026, as part of its overall USD$15 million commitment to earn a 29% interest in the M47 Block.

What financial flexibility does the revised M47 payment schedule give Trillion Energy (TRLEF)?

The revised schedule defers significant M47 earn-in payments into late 2026 and 2027. According to Trillion Energy, extending the next tranche to September 15, 2026 and postponing later payments to September 2027 aligns funding with seismic work and development activities on the block.

What is the development potential of the North Block in Trillion Energy's M47 oil block?

The North Block is evaluated for up to 80 vertical development wells, subject to commerciality. According to Trillion Energy, an independent appraisal indicates an 81% chance of commerciality on a 95,315 MSTB gross PIIP-derived resource, supporting plans for several new wells over the next 12 months.

What is Trillion Energy's total earn-in commitment and interest in the M47 Block?

Trillion Energy has a total USD$15 million earn-in commitment to acquire a 29% participating interest. According to Trillion Energy, this commitment includes funding 80% of the next work program component, after which its financial contributions will be prorated to its ownership interest.

When does Trillion Energy (TRLEF) aim to start production from the M47 Block?

Trillion Energy is targeting meaningful production from the M47 Block later this year. According to Trillion Energy, this timing depends on meeting earn-in commitments and commencing well drilling and workover activities under the revised agreement and broader development plan for the block.