Questerre Energy (QEC) Investor update summary

Recent strategic developments

• Completed acquisition of Red Leaf Resources, securing 100% control of key oil shale technology and assets, including a cash inflow of $8–9 million.

• Restructured business to separate Quebec assets via tracking shares, allowing targeted investment and risk management.

• Maintained profitable, cash-flow positive production in Montney and Saskatchewan, with ongoing exploration and growth plans.

• PX Energy acquisition in Brazil provides a cash-flowing platform for technology commercialization and global expansion.

Financial and operational performance

• Achieved positive cash flow despite significant legal and advisory fees related to the PX transaction.

• Canadian operations maintain close to CAD 20 million in working capital and an undrawn CAD 16 million credit facility.

• Consolidated working capital deficit of CAD 40 million is largely ring-fenced in Brazil.

• Implemented CAD 8 million in cost savings at PX, with further reductions planned for 2027.

Technology and commercialization roadmap

• New patented oil shale process to be demonstrated at PX for CAD 2 million, aiming for a six-month payout and 10% more oil yield.

• Plan to scale to 3,000 barrels/day at PX for $250 million, targeting operating costs below $30/barrel.

• Demonstration success in Brazil will de-risk larger projects in Jordan and Utah, with independent engineering validation underway.