Operations Update

The Company drilled 4 wells and completed 3 wells during the quarter, which leaves 4 wells drilled but not completed at the end of the second quarter. Due to the wet spring, drilling and completion operations were delayed until late July. Yangarra expects to drill 5-6 wells and complete 4-5 wells during the third quarter. Guidance for the year remains unchanged.

Environment, Social, Governance (“ESG”) strategy

Yangarra focuses on creating long-term shareholder value through financial discipline while minimizing Yangarra’s environmental footprint and by operating in a safe manner with a diverse culture. While Canadian oil & gas ESG standards have not been formalized or adopted, Yangarra is moving forward on ESG initiatives with the following:

• Methane baseline study is complete and on track for a 55% reduction.

• Recently implemented revised completion procedures which will reduce flaring by 90% and reduce completion costs by 10%.

• Implement a strategy of recycling 90% of all water generated from completions and production operations via reuse in new fracture stimulations.

• Yangarra has drilled over 300 wells since inception, 120 of these have produced to their economic limit and were abandoned, resulting in a low standing well count and minimal asset retirement obligations.

• Recently adopted a formal diversity policy to acknowledge important diversity considerations such as gender, age and ethnicity with a view to ensuring that the Company benefits from a broader range of perspectives and relevant experiences.

Share buybacks

Yangarra continues to make capital allocation decisions using a full cycle return model, which includes the decision on whether to buyback the Company’s shares. Using the second quarter production of 13,032 boe/d the and the current enterprise value (Market capitalization + Net Debt) the Company’s shares have traded as low as $23,500 on a per flowing boe basis. The Company’s cashflow and debt levels would allow for buybacks, however based on full-cycle capital efficiencies comparisons, the Company has made the decision to allocate capital to land purchases, new drilling and debt reduction versus share buybacks at this time.