Operational Update

CALGARY, ALBERTA (August 1, 2024) - Touchstone Exploration Inc. ("Touchstone", "we", "our" or the "Company") (TSX, LSE: TXP) provides an operational update.

Highlights

• The Cascadura natural gas facility expansion and construction of the flowline from the Cascadura C surface location to the facility are progressing as scheduled, and we continue to target initial production from our Cascadura-2ST1 and Cascadura-3ST1 wells prior to the end of September 2024.
• Achieved average net sales volumes of 5,432 boe/d in the second quarter of 2024.
• Our current average net field estimated production is approximately 5,711 boe/d.
• Following production optimization efforts at Cascadura, the Cascadura-1ST1 and Cascadura Deep-1 wells are currently producing at a combined net field estimated rate of approximately 4,082 boe/d.
• The two CO-1 development wells drilled in 2024 commenced production on May 27, 2024, with current aggregate net field estimated production of approximately 212 bbls/d.

Cascadura

As part of our ongoing production optimization efforts at Cascadura, we performed a recompletion on the Cascadura Deep-1 well by adding perforations above the previously completed pay intervals. The well was shut in on June 24, 2024 and resumed production on July 4, 2024. Prior to the recompletion, the Cascadura wells produced an aggregate net field estimated rate of 3,463 boe/d, and current combined net field estimated production is approximately 4,082 boe/d.

We continue to make steady progress on the project connecting the Cascadura C surface location to our Cascadura natural gas facility. Key milestones include the completion of road and right-of-way construction and the installation of watercourse culvert crossings. The bridge over the Poole River is approximately fifty percent complete, with completion anticipated by the end of August. Additionally, the flowline construction is advancing on schedule, with approximately sixty-two percent of the pipeline welded and fifty-eight percent trenched along the right of way.

Simultaneously, the Cascadura facility expansion is underway. An additional natural gas separator has arrived at the facility, and the wellhead tie-in piping and valves are being delivered to a third-party for fabrication prior to installation.

We continue to target initial production from the Cascadura-2ST1 and Cascadura-3ST1 wells prior to the end of September 2024.

CO-1 Production

The two development wells on our CO-1 block commenced production on May 27, 2024. Since first production, the two wells have produced an aggregate net field estimated average of 167 bbls/d. In mid-July 2024, the Company performed optimization work on the wells, and they are currently producing at a combined net field estimated average rate of approximately 212 bbls/d.

Production Volumes

In the second quarter of 2024, we attained average net sales volumes of 5,432 boe/d, comprising:

• average natural gas net sales volumes of 25 MMcf/d (4,173 boe/d) at an average realized price of $2.48 per Mcf, with Cascadura Deep-1 shut in for seven days during the period; and
• average net daily crude oil and natural gas liquid sales volumes of 1,259 bbls/d, with an average realized price of $73.64 per barrel.

Our current average net field estimated production is approximately 5,711 boe/d, comprising:

• average natural gas volumes of 26.6 MMcf/d (4,426 boe/d); and
• average crude oil and natural gas liquids volumes of 1,285 bbls/d.

Touchstone Exploration Inc.

Touchstone Exploration Inc.

Paul Baay, President and Chief Executive Officer Tel: +1 (403) 750-4487

Brian Hollingshead, Executive Vice President Engineering and Business Development

Shore Capital (Nominated Advisor and Joint Broker)

Daniel Bush / Toby Gibbs / Tom Knibbs Tel: +44 (0) 207 408 4090

Canaccord Genuity (Joint Broker)

Adam James / Charlie Hammond Tel: +44 (0) 207 523 8000

FTI Consulting (Financial PR)

Nick Hennis / Ben Brewerton Tel: +44 (0) 203 727 1000

Advisories

Working Interest and Currency

Touchstone has an 80 percent operating working interest in the Cascadura field, which is located on the Ortoire block onshore in the Republic of Trinidad and Tobago. Heritage Petroleum Company Limited ("Heritage") holds the remaining 20 percent working interest. Touchstone has a 100 percent working interest in the CO-1 block via a sublicense agreement with Heritage. Unless otherwise stated, all production volumes disclosed herein are based on Company working interest before royalty burdens.

Oil and Natural Gas Measures

Product Type Disclosures

This announcement includes references to Touchstone's average production for the three months ended June 30, 2024 and current field estimated average production. The following table provides production by product type composition as defined by National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101").

In this announcement, any references to "crude oil" refer to "light crude oil and medium crude oil" and "heavy crude oil" combined product types; references to "NGLs" refer to condensate; and references to "natural gas" refer to the "conventional natural gas" product type, all as defined in NI 51-101. Any references to "crude oil and liquids" herein include crude oil and NGLs.

Abbreviations

The following abbreviations are referenced in this announcement:

bbl(s) barrel(s)

bbls/d barrels per day

Mcf thousand cubic feet

MMcf million cubic feet

MMcf/d million cubic feet per day

NGL(s) natural gas liquid(s)

boe barrels of oil equivalent

boe/d barrels of oil equivalent per day