NEWPORT RECEIVES AUD$438,725 (GROSS)/AUD$307,108 (NET) QUARTERLY ROYALTY PAYMENT

Newport Exploration Ltd has reported receipt of its quarterly gross overriding royalty payment from Cooper Basin operations in Australia for the February-April 2026 period. The company received AUD$307,108 net, representing a 2.5% gross overriding royalty after 30% Australian withholding tax deduction from gross royalty income of AUD$438,725. The royalty streams from oil and gas licences operated by Beach Energy Ltd in the Cooper Basin.

The financial update demonstrates the passive income nature of Newport's business model, which relies entirely on production from Beach Energy's operations without any operating involvement or control. Newport maintains a strong balance sheet with approximately CDN$3.0 million in treasury comprising cash, cash equivalents and short-term investments, while carrying no debt obligations. The company's royalty interests have no time limit or expiry date and require no ongoing capital investment to maintain.

Newport's structure as a pure-play royalty company provides shareholders with leveraged exposure to Cooper Basin oil and gas production without operational risks or capital requirements. However, the company acknowledges it has no influence over Beach Energy's operating decisions and directs investors to monitor Beach Energy and Santos Ltd disclosures for operational updates. The company currently has 105.6 million common shares outstanding, providing a clear per-share calculation basis for the royalty distributions.

This quarterly payment reflects ongoing production activity in the Cooper Basin, one of Australia's most established oil and gas regions. The consistent royalty flow supports Newport's dividend-like income model, though future payments remain dependent on Beach Energy's operational performance and commodity price movements. The disclosure highlights the cross-border nature of the investment, with Australian tax implications affecting net distributions to the Canadian-listed entity.