FIDDLEHEAD RESOURCES CORP. ANNOUNCES Q1 2026 FINANCIAL RESULTS

CALGARY, AB, May 29, 2026 /CNW/ - Fiddlehead Resources Corp. ("Fiddlehead," or the "Company") (TSXV: FHR), is pleased to announce the filing of its unaudited financial and operating results for the three months ended March 31, 2026.  Selected financial and operating information should be read in conjunction with Fiddlehead's unaudited interim financial statements and related management's discussion and analysis ("MD&A") for the three months ended March 31, 2026 and 2025 ("2026 Q1 Documents"). Financial and operating highlights for the period include:

• Achieved average corporate production of 1,439 BOE per day ("BOE/d") in Q1 2026, an increase of 10% over Q4 2025.  Q1 2026 is the second complete quarter where the Company had full operational control of its acquired assets, and the second consecutive quarter with a quarter over quarter increase in production. The Company completed the license transfer in August, 2025, and operational handoff took place later that month.
  
  
• For the first quarter of 2026, Fiddlehead's petroleum and natural gas sales totaled $3.1 million. On January 6, 2026, the Company entered a 7-month natural gas supply agreement, commencing April 1, 2026 through to October 31, 2026, under which the Company will deliver 2,000 GJ/d and receive a price of $2.15/GJ, less associated deductions. This contract enables the Company to ensure a portion of its revenue and cash flow for 12 months.  October 30, 2025, the Company entered a 1-year natural gas supply agreement, commencing on November 1, 2025, under which the Company will deliver 1,500 GJ/d and receive a price of $2.86/GJ, less associated deductions. In Q1 2026, the Company received $127,887 above market price under this contract.
  
  
• Generated $1.4 million in cash proceeds through the sale of its minority, non-operated working interest in nine sections of non-core acreage. The disposition reduces Fiddlehead's abandonment liabilities by approximately$0.2 million. The Company recognized a gain for the period ended March 31,2026 of $1.3 million.  The disposition reduces overall production by approximately 24.7 BOE/d.
  
  
• The Company closed its non-arm's length debt settlement of common shares of the Company.  In Q1 2026 TSX approval was received to issue the 4,843,232 Common Shares reserved at December 31, 2025 for settlement of $242,162 indebtedness. 

The table below summarizes selected highlights from the Company's financial and operating results:

    (Expressed in $000s, except per share, price and volumes amounts)

			Three months ended
			March 31			December 31			March 31
			2026			2025			2025
OPERATING HIGHLIGHTS AND NETBACKS^1
Average production and sales volumes
Light oil (bbls/d)			49			30			119
NGLs (bbls/d)			404			375			394
Natural gas (Mcf/d)			5,920			5,409			6,746
Total (BOE/d)			1,439			1,306			1,636
Average realized sales prices
Light oil ($/bbl)			88.90			71.83			91.79
NGLs ($/bbl)			43.36			33.40			49.32
Natural gas ($/Mcf)			2.09			2.41			2.06
Total oil equivalent ($/BOE)			23.90			21.30			27.13
Netbacks ($/BOE)^1
Petroleum and natural gas sales			23.90			21.30			27.13
Royalties			4.93			4.09			6.65
Operating expenses			12.33			13.01			11.65
Transportation expenses			0.21			0.08			0.10
Prior Period Adjustment^3			-			13.26			-
Operating Netback^1			6.43			(9.15)			8.74
General and administrative expenses			5.84			7.41			7.62
Finance costs			7.48			5.10			6.27
Adjusted Funds Flow Netback^1,2			(6.89)			(21.66)			(5.15)
FINANCIAL HIGHLIGHTS
Petroleum and natural gas sales			3,081			2,650			3,976
Petroleum and natural gas sales, net of royalties			2,442			2,158			2,996
Net loss & comprehensive loss			(689)			(2,330)			(2,497)
Basic per share			(0.01)			(0.04)			(0.04)
Diluted per share			(0.01)			(0.04)			(0.04)
Cash flow used in operating activities			(55)			(601)			(145)
Funds Flow from Operations^2			(389)			(2,009)			(195)
Basic per share			(0.01)			(0.03)			(0.00)
Diluted per share			(0.01)			(0.03)			(0.00)
Dispositions			1,400			-			-
Total assets			27,471			30,153			30,054
Total non-current financial liabilities			10,144			10,201			11,482
Total long-term debt, including current portion			11,720			12,242			12,120
Shareholders' equity			(382)			58			3,412
Weighted average common shares outstanding (000s) – basic			71,364			63,200			60,521
Weighted average common shares outstanding (000s) – diluted			71,364			63,200			60,521
Common shares outstanding (000s), end of period			71,364			66,521			60,521

^1	"Netbacks" are non-GAAP financial measure calculated per unit of production. "Operating Netback", and "Adjusted Funds Flow Netback" do not have standardized meanings under IFRS Accounting Standards. See " Non-GAAP Financial Measures " section
^2	"Funds Flow from Operations" ("FFO") does not have a standardized meanings under IFRS Accounting Standards. See "Non-GAAP Financial Measures".
^3	A prior period adjustment was incurred as a result of a true up of estimates by the Vendor of the Ferrier Strachan property. These adjustments were received as a Final Statements of Adjustments on February 5, 2026. The Final Statement of Adjustments has been disputed by the Company, however an accrual was made to recognize a maximum potential impact of $2.0 million.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release, including, without limitation, future statements related to anticipated production volumes and the the closing of the Transaction. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's most recent Management Discussion and Analysis and its Annual Information Form, which are available for view on SEDAR+ at www.sedarplus.ca. These risks include but are not limited to, the risks associated with the oil and natural gas industry, such as exploration, production and general operational risks, the volatility of pricing for oil and natural gas, the inability to market natural gas production and changes in natural gas sale prices, changing investor sentiment about the oil and natural gas industry, any delays in production, marketing and transportation of natural gas, drilling costs and availability of equipment, regulatory approval risks and environmental, health and safety risks. Forward-looking statements contained herein are made as of the date of this news release, and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. In this press release, all references to "$" are to Canadian dollars.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Fiddlehead Resources Corp.

FOR FURTHER INFORMATION: For further information concerning Fiddlehead Resources Corp., please contact Brent Osmond, Chief Executive Officer and Director, Email: [email protected].