Touchstone Exploration raises US$10–15 million

THIS ANNOUNCEMENT (INCLUDING THE APPENDICES) AND THE INFORMATION CONTAINED HEREIN ARE RESTRICTED AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, NEW ZEALAND, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO. THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND SHALL NOT CONSTITUTE AN OFFER TO SELL OR ISSUE OR THE SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE FOR OR OTHERWISE ACQUIRE ANY NEW COMMON SHARES OF TOUCHSTONE EXPLORATION INC. IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL. THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED ("MAR").

IN ADDITION, MARKET SOUNDINGS WERE TAKEN IN RESPECT OF THE MATTERS CONTAINED IN THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS BECAME AWARE OF SUCH INSIDE INFORMATION. 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. CALGARY, AB / ACCESS Newswire / June 4, 2026 / Touchstone Exploration Inc. (" Touchstone " or the " Company ") (TSX:TXP)(LSE:TXP) announces the launch of an integrated financing to raise gross proceeds of between US$10 million and US$15 million (between approximately £7.4 million / C$13.9 million and £11.2 million / C$20.8 million), of which US$10 million is expected to be provided by Touchstone's largest existing shareholder, Purebond Limited (the " Fundraise ").

The Fundraise will be conducted via the issue of new common shares of no par value in the capital of the Company (" Common Shares ") at a price of 7 pence (equivalent to approximately C$0.13) each (the " Issue Price ") and consists of: an aggregate investment of up to US$10 million by Purebond Limited (" Purebond "), comprising (i) a direct subscription (the " Subscription ") by Purebond for new Common Shares (the " Subscription Shares ") at the Issue Price pursuant to the subscription agreement entered into with the Company dated June 4, 2026 (the " Subscription Agreement "), subject to clawback to satisfy valid applications pursuant to the Placing and the LIFE Offering (both as defined below) and (ii) pursuant to the Subscription Agreement and the related repayment and subscription agreement between the Company and Purebond, unsecured non-convertible debt securities of the Company (a debenture) (the " Debt Securities ") in connection with the Fundraise; such Debt Securities are not issued at the Issue Price; a non-pre-emptive placing (the " Placing ") of new Common Shares (the " Placing Shares ") at the Issue Price to certain institutional and other investors, to be carried out by way of an accelerated bookbuild; a non-pre-emptive private placement (the " LIFE Offering ") of new Common Shares (the " LIFE Offering Shares ") at the Issue Price to certain investors in Canada pursuant to the Listed Issuer Financing Exemption (" LIFE ") (under applicable Canadian securities laws); and a non-pre-emptive retail offer through the Winterflood Retail Access Platform (" WRAP ") (the " WRAP Offer ") to raise gross proceeds of up to £0.74 million (US$1.0 million / C$1.4 million) through the issue of new Common Shares at the Issue Price (the " WRAP Offer Shares " and together with the Placing Shares, the LIFE Offering Shares and the Subscription Shares, the " Offer Shares ") to be made on terms outlined in a separate announcement. The Issue Price represents a 3.4 percent discount to 7.25 pence, which was the closing price of the Common Shares on the AIM market (" AIM ") of the London Stock Exchange on June 3, 2026. The Placing is to be conducted by way of an accelerated bookbuild process (the " Bookbuild ") which will commence immediately following this Announcement and will be subject to the terms and conditions set out in Appendix 1 to this Announcement.

Canaccord Genuity Limited (" Canaccord ") is acting as Nominated Adviser and Lead Bookrunner and Cavendish Capital Markets Limited (" Cavendish ") is acting as a Joint Bookrunner (together, the " Joint Bookrunners ") in connection with the Placing. There is an offering document (the " Offering Document ") related to the LIFE Offering in Canada that can be accessed under the Company's profile at www.sedarplus.ca and on the Company's website at www.touchstoneexploration.com . Prospective investors in Canada should read the Offering Document before making an investment decision.

Canaccord Genuity Corp, acting as Canadian Adviser, has been engaged to find subscribers for the LIFE Offering Shares on a "best efforts" basis. The Subscription Shares will be subscribed for on the terms of the Subscription Agreement, rather than pursuant to the terms and conditions of the Placing or the LIFE Offering. Trading of the Common Shares on the Toronto Stock Exchange (" TSX ") was halted as of 11:36 a.m. (Toronto time) today at the request of the Company, pending the release of this Announcement.

The trading halt will continue until 8:00 a.m. (Toronto time) on June 5, 2026, at which time trading of the Common Shares on the TSX is expected to continue in the normal course during trading hours. The Fundraise is expected to close (being the admission and settlement of the Placing Shares, the LIFE Offering Shares, the Retail Shares, the First Tranche Subscription Shares and the Debt Securities) concurrently on or about June 10, 2026. Background to the Fundraise and Intended Use of Proceeds The net proceeds from the Fundraise are intended to accelerate the Company's 2026 development program and fortify its financial position.

Specifically, capital will be deployed to: Execute high-impact drilling: Fund the next phase of development wells to drive near-term volume growth. Enhance existing assets: Perform low-cost, production-enhancing recompletions and workovers across the asset portfolio. Strengthen the balance sheet: Reduce aged trade payables and resolve historical working capital constraints.

Operational Performance and Pricing Dynamics The Company has continued to advance its operational and development activities during 2026. Average daily production for the quarter ended March 31, 2026 rose 8 percent year-over-year to 4,657 boe/d, with April 2026 sales volumes averaging 4,700 boe/d. A significant catalyst for revenue growth lies in the Company's transition to anticipated higher-margin Central block marketing contracts: Current realizations: March 2026 Central block LNG sales volumes achieved US$4.22/MMBtu (net of LNG fees) under the current Train 4 agreement.

Near-term upside: All gross production exceeding 7.1 Bcf (approximately 4.6 Bcf net) for the October 2025 to September 2026 period is eligible for nomination to the Atlantic LNG Train 2/3 marketing contract. The arrangement utilizes pricing formulas that are more directly linked to international LNG pricing benchmarks and, based on pricing assumptions used in the Company's March 2026 forecasts, was estimated to generate net realizations of approximately US$11.75/MMBtu (net of LNG fees). Due to scheduled Train 4 and pipeline infrastructure maintenance periods running through July 19, 2026, the Company is currently redirecting and selling Central field production through this higher-yielding Train 2/3 contract and the domestic market.

Future flexibility: The Train 4 agreement expires in May 2027, allowing the Company to transition all Central block production volumes to the Train 2/3 contract over the longer term. 2026 Development Plan The Company has achieved strong operational progress on its 2026 capital program, as the FR-1835 and FR-1836 development wells on the WD-8 block were successfully drilled, completed and placed on production in mid-May 2026. Key Upcoming Milestones: Second Quarter 2026: Commissioning of the Cascadura booster compressor is targeted for June to stabilize production and increase plant deliverability. Third Quarter 2026: Planned activities include drilling two development commitment wells on the WD-4 block (1) , executing a targeted recompletion and workover program across the Central and Ortoire blocks, and spudding the Central block BR-2 well.

Fourth Quarter 2026: Integration of the new WD-4 and BR-2 wells into the production stream and commencement of drilling the CR-4 development well (1) on the Central block. (1) Note that the drilling of the WD-4 and the CR-4 development wells are contingent on the Company raising in excess of US$10 million as disclosed below. Production Potential Successful execution across the WD-4, Cascadura, and Central blocks provides for the potential for a meaningful increase in production volumes. Management estimates that average production could grow from approximately 4,700 boe/d to approximately 6,800 boe/d by March 2027.

The majority of this incremental growth is expected to be driven from the Central block wells. These figures represent potential production levels based on successful development outcomes and remain subject to operational progress, final funding levels, and individual well productivity. Liquidity and Going Concern Considerations A portion of the proceeds from the fundraise are expected to be used to strengthen liquidity and reduce working capital constraints identified in the going concern note included in the Company's March 31, 2026, unaudited interim condensed consolidated financial statements.

Under Management's current assumptions, including the lower US$10 million funding scenario, this strategic use of capital is expected to mitigate the risk of year-end 2026 financial covenant breaches under its Trinidad-based loan agreement. Additionally, the Company has secured a formal waiver from its lender, eliminating the testing of the debt service coverage covenant for the 2026 financial year. Expected Use of Proceeds Related Party Participation Purebond has entered into a Subscription Agreement with the Company as part of the Fundraise.

This is deemed to be a transaction with a related party pursuant to Rule 13 of the AIM Rules for Companies by virtue of Purebond being a 15.4 percent shareholder of the Company. The Fundraise may also constitute a related party transaction for purposes of applicable Canadian securities laws, including Multilateral Instrument 61-101. Further details of the Purebond allocations and related party transaction details shall be provided upon close of the Fundraise.

Shareholder Approval It is expected that the Fundraise will be undertaken in two tranches. Under the first tranche (the " First Tranche "), the Company plans to issue such number of Common Shares as may be permitted to be issued without shareholder approval under applicable TSX requirements, and for those shares (the " First Tranche Shares ") to be admitted to trading on the AIM market (" AIM ") and the TSX in advance of the remaining Offer Shares to be issued to Purebond (as described below) (the " First Admission "). As part of the First Tranche, pursuant to the Subscription Agreement, the Company will issue to Purebond a number of Subscription Shares (the " First Tranche Subscription Shares ") such that, prior to obtaining shareholder approval at the General Meeting, Purebond's beneficial ownership of Common Shares does not exceed 19.99 percent of the Company's total issued share capital, and any remaining Purebond commitment that cannot be satisfied through the issuance of Common Shares within applicable equity issuance limitations (including any applicable TSX insider participation requirements) will be satisfied through the issuance of Debt Securities.

Under the second tranche (the " Second Tranche "), subject to shareholder approval from independent shareholders at a general and special meeting of shareholders of the Company to be held on or about July, 23, 2026 (the " General Meeting ") and other applicable approvals, the Company expects that any Debt Securities issued to Purebond in connection with the Fundraise will be repaid in full and such repayment amount redirected into a subscription for Common Shares one (1) Business Day following the General Meeting (provided shareholder approval is obtained), or otherwise as described in the repayment and subscription agreement between the Company and Purebond. If shareholder approval is not obtained, such subscription and repayment mechanics will not proceed, and the Debt Securities will remain outstanding. It is expected that such Common Shares (the " Second Tranche Shares ") will be admitted to trading on AIM and the TSX on or about July 28, 2026 (the " Second Admission ").

It is important to note that the First Tranche Shares shall be issued on First Admission, which is expected to occur at 8:00 a.m. on June 10, 2026 (or such later date as the Company and the Joint Bookrunners may agree). If the approvals and other conditions required to repay in full the Debt Securities and redirect the repayment amount into Common Shares (or otherwise settle them) are not subsequently satisfied, the portion of Purebond's commitment not satisfied through the issuance of Common Shares in the First Tranche will remain in the form of the Debt Securities pending any further approvals. Details of the Fundraise UK Placing The Joint Bookrunners will be conducting an accelerated book building process, in respect of the Placing.

The book will open with immediate effect. The Joint Bookrunners have entered into an agreement with Touchstone (the " Placing Agreement ") under which, subject to the conditions set out therein, the Joint Bookrunners will agree to use their respective reasonable endeavours to procure subscribers for the Placing Shares at the Issue Price. The Placing is subject to the terms and conditions set out in Appendix 1 to this Announcement, including the completion of the Subscription and the LIFE Offering.

Members of the public are not entitled to participate in the Placing. The Placing Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with Touchstone's existing issued Common Shares. The number of Placing Shares to be allotted and issued by the Company pursuant to the Placing will be determined at the close of the Bookbuild.

It is envisaged that the Bookbuild will close no later than 7:00 p.m. (London Time) on June 4, 2026 but the timing of the closing of the Bookbuild and allocations are at the absolute discretion of the Joint Bookrunners and the Company. Details of the final number of Placing Shares and the Issue Price will be announced as soon as practicable after the closing of the Bookbuild. The Placing is not being underwritten.

The Placing is conditional upon the completion of the Subscription and the LIFE Offering and the admission to trading and settlement of the First Tranche Subscription Shares and the LIFE Offering Shares. The Issue Price for UK Placees (as defined below) pursuant to the UK Placing has been translated at a fixed exchange rate of £1.00 to C$1.864 such that it will be the same price in pounds sterling equivalent as for placees participating in the LIFE Offering. In managing allocations among the Placing and the WRAP Offer, the Company intends to comply with applicable TSX requirements, including the TSX Company Manual s.607 limitation on the number of Common Shares that may be issued without shareholder approval in connection with the non-LIFE components of the Fundraise, with the LIFE Offering structured as a bona fide LIFE offering under the TSX Company Manual s.606.

Canadian LIFE Offering Concurrent with the Placing, the WRAP Offer and the Subscription, subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 - Prospectus Exemptions ("NI 45-106 "), the LIFE Offering Shares that may be sold in Canada under the LIFE Offering will be offered for sale to purchasers in each of the provinces of Canada other than Quebec, pursuant to the listed issuer financing exemption under Part 5A of NI 45-106, as amended by Coordinated Blanket Order 45-935 - Exemptions from Certain Conditions of the Listed Issuer Financing Exemption (the " Listed Issuer Financing Exemption "). LIFE Offering Shares issued under the Listed Issuer Financing Exemption will not be subject to a hold period under Canadian securities legislation. Canaccord Genuity Corp, acting as Canadian Adviser, has been engaged to find subscribers for the LIFE Offering Shares on a "best efforts" basis.

Subscription Concurrent with the Placing, the LIFE Offering and the WRAP Offer, the Company has entered into a Subscription Agreement with Purebond in accordance with which Purebond has irrevocably agreed to invest up to US$10,000,000 into the Company pursuant to: a subscription for a number of Common Shares equal to its pro rata portion of the Placing Shares, the WRAP Offer Shares and the LIFE Offering Shares (the " Basic Tranche 1 Subscription Shares ") as part of the Offering (the " Basic Subscription "); to the extent that the proceeds of: (i) the Basic Subscription; (ii) the Placing; (iii) the WRAP Offer; and (iv) the LIFE Offering would otherwise be less than US$10,000,000 (a " Basic Subscription Shortfall "), a subscription for such additional Common Shares (if any) (the " Additional Tranche 1 Subscription Shares " and, together with the Basic Tranche 1 Subscription Shares, the " Tranche 1 Subscription Shares ") at the Issue Price which would give rise to proceeds equal to such Basic Subscription Shortfall (the " Additional Tranche 1 Subscription " and together with the Basic Subscription, the " Tranche 1 Subscription "), provided that, after giving effect to such Additional Tranche 1 Subscription, Purebond's beneficial ownership of Common Shares does not exceed 19.99 percent of the issued share capital of the Company prior to the General Meeting, and the issuance of such Common Shares complies with applicable TSX requirements (including any applicable insider participation requirements); and to the extent that the proceeds of: (i) the Tranche 1 Subscription; (ii) the Placing; (iii) the WRAP Offer; and (iv) the LIFE Offering is less than US$10,000,000 (a " Tranche 1 Subscription Shortfall "), a subscription for Debt Securities of the Company (the " Tranche 2 Subscription " and, together with the Tranche 1 Subscription, the " Subscription ") with an issue price which would give rise to proceeds equal to such Tranche 1 Subscription Shortfall. Purebond's obligation to subscribe for, and the Company's obligation to issue, the Tranche 1 Subscription Shares is conditional upon admission of the Tranche 1 Subscription Shares to trading on AIM. The Company's obligation to issue the Tranche 1 Subscription Shares is also conditional upon (inter alia) acceptance of the terms of the Offering and the Subscription Agreement by the TSX and all other regulatory approvals in accordance with applicable law and regulation, including for greater certainty the AIM Rules, Canadian Securities Laws and the TSX Company Manual.

In connection with the Subscription, the Company will issue the Debt Securities to Purebond. Such Debt Securities are expected to be repaid in full and the repayment amount redirected into a subscription for Common Shares one (1) Business Day following the General Meeting, provided shareholder approval is obtained and all other conditions to such repayment and subscription mechanics are satisfied (including TSX approval, as applicable, or otherwise as described in the repayment and subscription agreement between the Company and Purebond). If shareholder approval is not obtained (or the other conditions are not satisfied), such repayment and subscription mechanics will not proceed, and the Debt Securities will remain outstanding.

The Company will not complete any subscription, repayment and redirection into Common Shares if it would result in the cumulative issuance of more than 81,183,402 Common Shares (being 25 percent of the Company's issued and outstanding Common Shares as of the date of the agreement) without shareholder approval. WRAP Offer Concurrent with the Placing, the LIFE Offering and the Subscription, there will be a separate offer by the Company on the Winterflood Retail Access Platform (" WRAP ") of WRAP Offer Shares at the Issue Price to provide UK retail investors with an opportunity to participate in the Fundraise. The WRAP Offer will be made on terms outlined in a separate announcement to be made shortly.

For the avoidance of doubt, the WRAP Offer is not part of the Placing, nor is it underwritten, and is the sole responsibility of the Company. Admission and Settlement Application will be made for the Offer Shares to be admitted to trading on AIM (" Admission ") and the TSX. It is expected that Admission of the First Tranche Shares will take place at or around 8:00 a.m. (London time) on June 10, 2026 (or such later date as may be agreed between the Company, Canaccord and Cavendish).

The Placing is conditional upon, inter alia , the completion of the Subscription and the LIFE Offering and Admission becoming effective. The Placing is also conditional upon the Placing Agreement not being terminated in accordance with its terms. It is expected that Admission of the Second Tranche Shares, subject to shareholder approval, will take place at or around 8:00 a.m. (London time) on July 28, 2026.

Indicative timetable of principal events The timing of the closing of the Subscription, the Bookbuild, the LIFE Offering and the WRAP Offer and allocations are at the absolute discretion of the Company and, where applicable, the Joint Bookrunners or Canadian Adviser. If any of the details contained in the timetable above should change, the revised times and dates will be notified to Shareholders by means of an announcement through a Regulatory Information Service. Certain of the events in the above timetable are conditional upon, inter alia, the approval of the Resolutions to be proposed at the General Meeting.

This Announcement should be read in its entirety. In particular, you should read and understand Appendix 1 and the information provided in the "Important Notice to Investors" section of this Announcement. Touchstone Exploration Inc. Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas.

Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company's common shares are traded on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol "TXP". For further information about Touchstone, please visit our website at www.touchstoneexploration.com or contact: Advisories Certain information contained in this Announcement would have been deemed inside information as stipulated under the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time, until the release of this Announcement.

Exchange Rate For reference purposes in this Announcement, one British pound has been converted into United States dollars at a rate of 1.00 to US$1.3426 and Canadian dollars at a rate of 1.00 to C$1.8640. Forward-looking Statements The information provided in this Announcement contains certain forward-looking statements and information (collectively, " forward-looking statements ") within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to assumptions, risks and uncertainties, many of which are beyond the control of the Company.

Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words expect", "believe", "estimate", "potential", "anticipate", "forecast", "pursue", "aim", "intends"and similar expressions, or are events or conditions that "will", "would", "may", "could" or "should" occur or be achieved. The forward-looking statements contained in this Announcement speak only as of the date hereof and are expressly qualified by this cautionary statement. Specifically, this Announcement includes, but is not limited to, forward-looking statements relating to: the UK Placing, the WRAP Offer, the LIFE Offering and the Subscription, including the size, pricing and timing thereof, the type of securities being offered thereunder (including any Debt Securities), the investors participating therein, the intended use of proceeds therefrom (including with respect to future exploration, development and production activities and the locations thereof), the conditions and approvals required and applications being filed in connection therewith; the Company's business plans, strategies, priorities and development plans; anticipated developmental drilling and facility upgrade activities, including locations, the timing thereof and related production and cash flows therefrom; estimated field estimated production rates; projected future production rates; expected future pricing under various LNG contracts; the Company's expectation of removing its going concern note in the future; the Company's ability to amend its current loan agreement and/or obtain future waivers for projected financial covenant breaches; and Touchstone's current and future financial position, including the Company's liquidity and the sufficiency of resources to fund current obligations future capital expenditures.

The Company's actual decisions, activities, results, performance, or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Touchstone will derive from them. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.

Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in the Company's 2025 Annual Information Form dated March 30, 2026 which is available on the Company's profile on SEDAR+ ( www.sedarplus.ca ) and website ( www.touchstoneexploration.com ). The forward-looking statements contained in this Announcement are made as of the date hereof, and except as may be required by applicable securities laws, the Company assumes no obligation or intent to update publicly or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

This Announcement contains future-oriented financial information and financial outlook information (collectively, " FOFI ") about Touchstone's prospective results of operations and production included in its 2026 development plan and resulting production potential, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the paragraphs above. The FOFI contained in this Announcement was approved by Management as of the date of this Announcement and was provided for the purpose of providing further information about Touchstone's future business operations. This information has been provided for illustration only and, with respect to future periods, is based on budgets and forecasts that are speculative and are subject to a variety of contingencies and may not be appropriate for other purposes.

Touchstone and its Management believe that FOFI has been prepared on a reasonable basis, reflecting Management's best estimates and judgments, and represents, to the best of Management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. Touchstone disclaims any intention or obligation to update or revise any FOFI contained herein, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law.

Readers are cautioned that the FOFI contained herein should not be used for purposes other than for which it is disclosed herein, and the FOFI contained herein is not conclusive and is subject to change. Variations in forecasted commodity prices, differences in the amount and timing of capital expenditures, and variances in average production estimates and decline rates can have a significant impact on the key performance measures included in the guidance disclosed herein. Management does not have firm commitments for all of the costs, expenditures, prices or other financial assumptions used to prepare the financial outlook or assurance that such operating results will be achieved and, accordingly, the complete financial effects of the forecasted costs, expenditures, prices and operating results are not objectively determinable.

The actual results of the Company's operations and the resulting financial results will vary from the amounts set forth in this Announcement and such variations may be material. Oil and Natural Gas Measures To provide a single unit of production for analytical purposes, natural gas production has been converted mathematically to barrels of oil equivalent. The Company uses the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl).

The 6:1 boe ratio is based on an energy equivalent conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the boe ratio is useful for comparative measures and observing trends, it does not accurately reflect individual product values and may be misleading, particularly if used in isolation, as the value ratio between crude oil and natural gas based on current commodity prices may differ significantly from the 6:1 energy equivalency ratio.

Product Type Disclosures This Announcement includes references to April 2026 average daily production. In accordance with NI 51-101 Standards of Disclosure for Oil and Gas Activities (" NI 51-101 "), disclosure of production volumes must include segmentation by product type as defined in the instrument. In this Announcement, references to "crude oil and liquids" include the combined product types light and medium crude oil, condensate and propane, and references to "natural gas" refer to conventional natural gas, all as defined in the instrument.

This Announcement includes references to crude oil, NGLs, crude oil and liquids, natural gas average daily production volumes. Under NI 51-101, disclosure of production volumes should include segmentation by product type as defined in the instrument. In this Announcement, references to "crude oil" refer to light and medium crude oil and heavy crude oil; references to "NGLs" refer to condensate and propane; and references to "natural gas" refer to conventional natural gas, all as defined in the instrument.

References to "crude oil and liquids" include crude oil and NGLs. The Company's average net production volumes for April 2026 consist of the following product types as defined in NI 51-101 using a conversion of 6 Mcf to 1 boe where applicable. For further information regarding specific product disclosures in accordance with NI 51-101, including first quarter 2026 average daily production information by product type, please refer to the " Advisories - Product Type Disclosures " section of the Company's most recent Management's discussion and analysis for the three months ended March 31, 2026 accompanying the March 31, 2026 unaudited interim condensed consolidated financial statements, both of which are available on the Company's profile on SEDAR+ ( www.sedarplus.ca ) and website ( www.touchstoneexploration.com ).

Abbreviations The following abbreviations may be referenced in this Announcement: Important Notice to Investors No prospectus or admission document has been or will be filed, published or made available in connection with the matters described in this Announcement. Members of the public are not eligible to take part in the Placing. In any EEA Member State, this Announcement is only addressed to and directed at persons in such member states who are qualified investors within the meaning of Article 2(e) of the Prospectus Regulation (EU) 2017/1129 (as amended) (the " EU Prospectus Regulation ") including any implementing measure in any member state (" Qualified Investors ").

In addition, in the United Kingdom, this Announcement is addressed and directed only at persons who are qualified investors within the meaning of paragraph 15 of Schedule 1 of the Public Offers and Admissions to Trading Regulations 2024 ( "POATR" ) and who (i) are persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the " Order "), (ii) are persons who are high net worth entities falling within Article 49(2)(a) to (d) of the Order, and (iii) to persons to whom it may otherwise be lawful to communicate it to (all such persons being referred to as " Relevant Persons "). Any investment or investment activity to which this Announcement relates is available only to Relevant Persons and will be engaged in only with such persons. Other persons should not rely or act upon this Announcement or any of its contents.

This Announcement must not be acted on or relied on by persons who are not Relevant Persons. Persons distributing this Announcement must satisfy themselves that it is lawful to do so. Any investment or investment activity to which this Announcement relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

This Announcement does not itself constitute an offer for sale or subscription of any securities in the Company. All offers of the Placing Shares in the EEA and the United Kingdom will be made pursuant to an exemption under the EU Prospectus Regulation and POATR (respectively) from the requirement to produce a prospectus. In the United Kingdom, this Announcement is being directed solely at persons in circumstances in which section 21(1) of the Financial Services and Markets Act 2000 (as amended) (" FSMA ") does not require the approval of the Announcement by an authorised person.

Neither this Announcement nor any copy of it may be taken or transmitted, published or distributed, directly or indirectly, in whole or in part, in, into or from the United States of America (including its territories and possessions, any state of the United States of America (the "United States " or the " US ")), Australia, Japan or the Republic of South Africa or transmitted, distributed to, or sent by, any national or resident or citizen of any such countries or any other jurisdiction where to do so would constitute a violation of the relevant securities laws of such jurisdiction (each a " Restricted Jurisdiction "). Any failure to comply with this restriction may constitute a violation of United States, Australian, Japanese or South African securities laws. This Announcement does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any shares or other securities in any Restricted Jurisdiction or in Canada, except for the LIFE Offering in each of the provinces of Canada other than Quebec made pursuant to the Listed Issuer Financing Exemption.

The Fundraise and the distribution of this Announcement and other information in connection with the Fundraise and Admission in certain jurisdictions may be restricted by law and persons into whose possession this Announcement and any document or other information referred to herein comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. No offer or sale of any securities is being made in Canada under this Announcement other than the LIFE Offering made pursuant to the Listed Issuer Financing Exemption under Part 5A of NI 45-106.

The Placing Shares, the WRAP Offer Shares and the Subscription Shares are not being offered or sold in any of the provinces or territories of Canada. No securities commission or similar authority in any jurisdiction of Canada has reviewed or passed upon the merits of the securities offered under the LIFE Offering or reviewed this Announcement, and any representation to the contrary is an offence. The Company is relying on the listed issuer financing exemption under Part 5A of National Instrument 45-106 - Prospectus Exemptions in connection with the LIFE Offering and, as a consequence, purchasers in the LIFE Offering have statutory rights of action for rescission or damages for misrepresentation in the offering document and certain other disclosure under applicable Canadian securities laws.

The Offer Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the " US Securities Act ") or under the securities laws of any state or other jurisdiction of the United States, and may not be offered, sold or transferred within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act. The Offer Shares have not been and will not be approved or disapproved by the United States Securities and Exchange Commission, any state securities commission or other regulatory authority in the United States, nor have any of the foregoing authorities passed upon or endorsed the merits of the Fundraise or the accuracy or adequacy of this Announcement. Any representation to the contrary is a criminal offence in the United States.

The information contained in this Announcement is for background purposes only and does not purport to be full or complete. No reliance may or should be placed for any purposes whatsoever on the information contained in this Announcement or its accuracy, completeness or fairness. The information in this Announcement is subject to change.

However, the Company does not undertake to provide the recipient of this Announcement with any additional information, or to update this Announcement or to correct any inaccuracies, and the distribution of this Announcement shall not be deemed to be any form of commitment on the part of the Company to proceed with the Placing or the WRAP Offer or any transaction or arrangement referred to in this Announcement. For the purposes of UK MAR and Article 2 of the binding technical standards published by the Financial Conduct Authority in relation to MAR as regards Commission Implementing Regulation (EU) 2016/1055, the person responsible for the release of this Announcement is Paul Baay (President and Chief Executive Officer). Canaccord Genuity Limited (" Canaccord ") which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting as Nominated Adviser and Lead Bookrunner for Touchstone and for no-one else in connection with the subject matter of this Announcement and will not be responsible to anyone other than Touchstone for providing the protections afforded to clients of Canaccord, or for providing advice in relation to any matter referred to herein.

Cavendish Capital Markets Limited (" Cavendish ") which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting as a Joint Bookrunnerfor Touchstone and for no-one else in connection with the subject matter of this Announcement and will not be responsible to anyone other than Touchstone for providing the protections afforded to clients of Cavendish, or for providing advice in relation to any matter referred to herein. No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by either Canaccord or Cavendish or by any of their respective affiliates or agents as to, or in relation to, the accuracy or completeness of this Announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefor is expressly disclaimed. Neither Canaccord nor Cavendish, nor any of their subsidiaries or affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Canaccord or Cavendish (as the case may be) in connection with this Announcement, any statement contained herein or otherwise.

No statement in this Announcement is intended to be a profit forecast or estimate, and no statement in this Announcement should be interpreted to mean that earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company. The price of shares and any income expected from them may go down as well as up and investors may not get back the full amount invested upon disposal of the shares. Past performance is no guide to future performance, and persons needing advice should consult an independent financial adviser.

The Offer Shares to be issued pursuant to the Fundraise will not be admitted to trading on any stock exchange other than on AIM and the TSX. Neither the content of the Company's website nor any website accessible by hyperlinks on the Company's website is incorporated in, or forms part of, this Announcement. Information to Distributors - UK Product Governance Requirements Solely for the purposes of the product governance requirements contained within chapter 3 of the FCA Handbook Product Intervention and Product Governance Sourcebook (the UK Product Governance Requirements ) and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the UK Product Governance Requirements) may otherwise have with respect thereto, the securities the subject of the Fundraise have been subject to a product approval process, which has determined that such securities are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in chapter 3 of the FCA Handbook Conduct of Business Sourcebook ( COBS ); and (ii) eligible for distribution through all permitted distribution channels (the UK Target Market Assessment ).

Notwithstanding the UK Target Market Assessment, distributors should note that: the price of the securities the subject of the Fundraise may decline and investors could lose all or part of their investment; the securities offer no guaranteed income and no capital protection; and an investment in the securities is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The UK Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Fundraise. Furthermore, it is noted that, notwithstanding the UK Target Market Assessment, Canaccord and Cavendish will only procure investors who meet the criteria of professional clients and eligible counterparties.

For the avoidance of doubt, the UK Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of chapters 9A or 10A respectively of the COBS; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the securities the subject of the Fundraise. Each distributor is responsible for undertaking its own target market assessment in respect of the securities and determining appropriate distribution channels. Information to Distributors - EU Product Governance Requirements Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended ( MiFID II ); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the MiFID II Product Governance Requirements ), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the securities the subject of the Fundraise have been subject to a product approval process, which has determined that such securities are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the EU Target Market Assessment ).

Notwithstanding the EU Target Market Assessment, Distributors should note that: the price of the securities the subject of the Fundraise may decline and investors could lose all or part of their investment; the securities offer no guaranteed income and no capital protection; and an investment in the securities is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The EU Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Fundraise. Furthermore, it is noted that, notwithstanding the EU Target Market Assessment, Canaccord and Cavendish will only procure investors who meet the criteria of professional clients and eligible counterparties.

For the avoidance of doubt, the EU Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the securities the subject of the Fundraise. Each distributor is responsible for undertaking its own target market assessment in respect of the securities and determining appropriate distribution channels. APPENDIX 1 - TERMS AND CONDITIONS OF THE UK PLACING IMPORTANT INFORMATION FOR INVITED UK PLACEES ONLY REGARDING THE UK PLACING MEMBERS OF THE PUBLIC ARE NOT ELIGIBLE TO TAKE PART IN THE PLACING.

THIS ANNOUNCEMENT, INCLUDING THIS APPENDIX 1 AND THE TERMS AND CONDITIONS SET OUT HEREIN (TOGETHER, THIS "ANNOUNCEMENT") (WHICH IS FOR INFORMATION PURPOSES ONLY) ARE DIRECTED ONLY AT: (A) PERSONS IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA (THE "EEA") WHO ARE QUALIFIED INVESTORS WITHIN THE MEANING OF ARTICLE 2(e) OF REGULATION (EU) 2017/1129 AND (B) PERSONS IN THE UNITED KINGDOM WHO ARE QUALIFIED INVESTORS WITHIN THE MEANING OF PARAGRAPH 15 OF SCHEDULE 1 OF THE PUBLIC OFFERS AND ADMISSIONS TO TRADING REGULATIONS 2024 ("POATR") AND (C) IN THE UNITED KINGDOM, QUALIFIED INVESTORS WHO ARE PERSONS WHO: (I) HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS WHO FALL WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 AS AMENDED (THE "ORDER") (INVESTMENT PROFESSIONALS); (II) ARE PERSONS FALLING WITHIN ARTICLE 49(2)(A) TO (D) (HIGH NET WORTH COMPANIES, UNINCORPORATED ASSOCIATIONS, ETC) OF THE ORDER; OR (III) ARE PERSONS TO WHOM IT MAY OTHERWISE BE LAWFULLY COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS"). THIS ANNOUNCEMENT AND THE INFORMATION IN IT MUST NOT BE ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. PERSONS DISTRIBUTING THIS ANNOUNCEMENT MUST SATISFY THEMSELVES THAT IT IS LAWFUL TO DO SO.

ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS ANNOUNCEMENT RELATES IS AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS. THIS ANNOUNCEMENT DOES NOT ITSELF CONSTITUTE AN OFFER FOR THE SALE OR SUBSCRIPTION OR A SOLICITATION OF AN OFFER TO BUY OR ACQUIRE OF ANY SECURITIES IN THE COMPANY IN THE UNITED STATES OR ELSEWHERE. THE PLACING SHARES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR JURISDICTION OF THE UNITED STATES OR UNDER ANY SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION OF THE UNI