LNGE LNG Energy Group Corp

LNG Energy Group Corp. (TSXV: LNGE) (TSXV: LNGE.WT) (OTCQB: LNGNF) (FWB: E26) (the “Company” or “LNG Energy Group”) today provided an update with respect to its previously announced strategic review (the “Strategic Review”). As previously announced, the Board of Directors of the Company has initiated, with the assistance of financial advisors, a strategic review process to explore and evaluate a broad range of potential options for the Company to enhance shareholder value. This review process will assess strategic alternatives that may include, but are not limited to financings, strategic partnerships, strategic investments, accretive acquisitions, a potential sale, merger or other business combination.

Capital Strengthening and Financing Update

The Company is in the process of farming out a non-operating portion of its participating interest in the VIM-41 Block located onshore Colombia, and of pursuing a well development financing (“JV Contribution”) in order to raise capital to initiate the drilling of the B5 well located onshore Colombia. Furthermore, the Company intends to review options to optimize cash flow available for drilling vis a vis its financial obligations.

In conjunction with its near-term development plans, the Company has entered into an agreement with ECM Capital Advisors Inc. in respect of the Strategic Review in order to assist the Company in assessing all strategic alternatives, including financings, asset sales other potential transactions. The previously announced engagement agreement with Eight Capital has been mutually terminated by the parties thereto.

Other Initiatives

In connection with the foregoing initiatives, the Company is pleased to announce an amendment (the “Amendment”) to the senior secured credit agreement entered into by LNG Canada Holdco Inc. (the “Borrower”), as borrower, Lewis Energy Colombia, Inc., as guarantor (the “Guarantor” and together with the Borrower, the “Loan Parties”) and Macquarie Group Ltd., as administrative agent, and the other lenders (the “Lenders”) dated August 15, 2023 (the “Credit Agreement”). As of the date hereof, the Company has amortized approximately U.S.$20 million of the initial principal outstanding (approximately C$0.17 per common share outstanding) and reaching an aggregate principal amount outstanding in respect of the Credit Agreement of approximately U.S.$50 million. Pursuant to the terms of the Amendment, the Lenders have agreed to certain covenant relief in order to allow for the foregoing strategic initiatives to be entered into by the Company and its subsidiaries, as well as funding of its drilling program.

Neither the TSXV nor its Regulation Services Provider accept responsibility for the adequacy or accuracy of this news release.

About LNG Energy Group

The Company is focused on the acquisition and development of natural gas production and exploration assets in Latin America. For more information, please visit www.lngenergygroup.com.

For more information please contact:

Angel Roa, Chief Financial OfficerLNG Energy Group Corp.Website: www.lngenergygroup.comEmail: investor.relations@lngenergygroup.com

Find us on social media:LinkedIn: https://www.linkedin.com/company/lng-energy-group-inc/Instagram: @lngenergygroup X: @LNGEnergyCorp

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities laws. 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. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often using phrases such as “expects”, “anticipates”, “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”, “should”, “might” or “will” be taken to occur or be achieved, are not statements of historical fact and may be forward-looking statements.

Specifically, this news release includes, but is not limited to, forward-looking statements relating to: the Company’s business plans, strategies, priorities and development plans, including the strategic initiatives being considered by the Company and the corporate reorganization and anticipated annual savings therefrom; the application of the stimulation technology used for the BN-1 well workover on other wells of the Company; the anticipated benefits of the completion of various strategic initiatives being considered by the Company; the completion of the JV Contribution and completion of other options to optimize cash flow; the ability of the Company to book additional reserves in the future; the completion of any transactions relating to the Strategic Review; receipt of all regulatory approvals, including the approval of the TSXV, in connection with the Strategic Review; the anticipated insider participation any financing; and the anticipated use of proceeds from the transactions relating to the Strategic Review. 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 the Company will derive from them. For more information regarding the Strategic Review, please see the Company’s news release dated December 4, 2024.

Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include: the Company's ability to complete the Strategic Review on the terms described herein or at all or to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; and the delay or failure to receive regulatory or other approvals, including any approvals of the TSXV and the Company’s senior lenders, for the Offering; general business, economic, competitive, political and social uncertainties; risks related to the Company’s ability to complete any of the proposed strategic initiatives described in this news release on the terms described herein or at all; risks related to commodity prices; delay or failure to receive any necessary board, shareholder or regulatory approvals, factors may occur which impede or prevent LNG Energy Group’s future business plans; and other factors beyond the control of LNG Energy Group. The intended use of the proceeds of the transactions relating to the Strategic Review by the Company might change if the Board of Directors of the Company determines that it would be in the best interests of LNG Energy Group. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements contained in this news release. Except as required by law, LNG Energy Group assumes no obligation to update the forward-looking statements, whether they change as a result of new information, future events or otherwise. There can be no guarantee that any of the foregoing transactions, including the JV Contribution or any transactions relating to the Strategic Review, will achieve a satisfactory closing.