TAG OIL LTD. (TAO-TSXV) TARGET CHANGE Energy August 30, 2023 HZ Well Drilling Ahead - Looking to Unlock the Potential of the ARF Reservoir ACTTION: Maintain SPECULATIVE BUY Recommendation Yesterday, TAG released its FQ1/24 results and provided an operational update. During the quarter, TAG completed a successful fracture stimulation of the Abu Roash “F” (“ARF”) formation in the BED 1-7 vertical well. After completing a single 110-ton frac, the well flowed at a stabilize rate of 140 bbl/d of 23 ○ API oil and confirmed that the ARF reservoir can be fracture stimulated and produced at a high rate. TAG has applied its learnings to the design of the new BED4-T100 (“T100”) horizontal well which is currently drilling. A successful production test of the T100 well could be a major near-term catalyst for the stock. We reiterate our SPECULATIVE BUY recommendation with a $1.25 target price equivalent to a 0.75x multiple of our risked NAV estimate. T100 Well Update : On August 22, 2023, TAG announced that it had commenced drilling of the T100 horizontal well. The well is currently at a depth of 1,250 metres and has a projected total vertical depth of 3,300 metres and the Company expects the well will be completed by calendar Q4/23. Based upon an independent resource report, a successful well is expected to initially produce in the 1,000 to 1,500 bbl/d range. The results of the T100 well will be used to design of a follow up drilling program expected to commence in calendar Q1/24. Targeting a Big Prize : Late last year, TAG announced the results of an independent resources evaluation of the ARF reservoir in the Badr Oil Field (“BED-1”). The resource report was prepared by RPS Energy Canada Ltd (“RPS”) and is effective March 31, 2022. Based upon 3D seismic data, 30 well penetrations, and log and core data, RPS assigned an oil-initially-in-place (P50) volume of 531.5 MMbbls to the ARF over the BED-1 concession. Based upon TAG’s current field development plan of 20 horizontal wells, on the east central part of the BED-1 concession, containing 178.3 MMbbls of OIIP, RPS calculated a risked contingent recoverable resource estimate of 27 million barrels, 16.5 MMbbls net to TAG. The risked, after-tax NPV discounted at 10% for the 2C resource is US$339mm (~C $458mm) equal to C$2.54/sh. TAG continues pursue additional acquisitions which could expand its exposure to the ARF unconventional resource play. Completes Bought Deal Financing: On August 24, 2023, TAG announced the closing of an upsized bought deal financing raising total proceeds of $11.7mm at a price of $0.58 per share. Research Capital Corp. was the lead underwriter and sole bookrunner. TAG remains debt free, and we estimate the Company has current positive working capital of ~ $25mm. IMPACT: Positive. Successful HZ Well Could Be A Game Changer We believe a stabilized flow rate of over 1,000 bbl/d from the T100 well could be a major near-term catalyst for the stock. With the completion of the financing, TAG has additional financial flexibility to accelerate a drilling program at the BED-1 block and also to pursue additional acquisition in Egypt and in the broader MENA region. Maintain SPECULATIVE BUY RATING & TARGET PRICE Rating SPECULATIVE BUY Price C$0.58 Price Target C$1.25 Market Cap ($M) C$104.70 Projected Return 115.5% MARKET DATA TAO-TSXV C$0.58 52 Week Range C$0.79 - C$0.39 Basic Shares O/S (mm) 180.5 Fully Diluted O/S (mm) 188.8 Enterprise Value ($M) C$80 Net Debt ($M) C$(25.0) UPCOMING EVENTS/CATALYSTS Initial results of the BED4-T100 horizontal well (Calendar Q4/23) Follow-up drilling program (Calendar Q1/24) Additional acquisitions (tba). ANALYST INFORMATION Bill Newman, CFA (403) 260-2460 bnewman@researchcapital.com This report has been created by analysts who are employed by Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see the Company Related Disclosure section of the report. 1 TAG OIL LTD. (TAO-TSXV) TARGET CHANGE Energy Company Description: TAG Oil Ltd. is currently focused on oil and gas exploration and development in the Middle East and North Africa. Near-term operations are focused on the unlocking the unconventional oil potenital in the ARF formation in the Badr Oil Field , located in theWestern Desert, Egypt. TAG also holds a 2.5% gross overriding royalty on future production from previously held assets located in New Zealand and a 3% GORR on perviously held assets in Australia. Risks: While this is not an exhaustive list, we view the following risks as being noteworthy to investors in TAG Oil Ltd. SHALE OIL PLAY: Although TAG has conducted a detailed analysis of the ARF zone, there can be no assurances that the Company will be successful at proving the commerciality of the play FINANCIAL RISK| TAG currently has limited production and cash flow and must rely on working capital to fund its operations. If TAG is unable to increase production as expected, the Company may need to source additional capital which may not be available when needed. EXCHANGE RATE RISK| TAG is an international company, is exposed to currency fluctuations including the Egyptian Pound, the US dollar and Canadian dollar. EXPLORATION RISK | TAG has an active exploration program. The exploration for, and production of, hydrocarbons is a highly speculative activity which involves a high degree of risk. Exploration failure could have a material impact on our valuation. POLITICAL RISK| TAG is an international oil and natural gas exploration and production with primary activities in Egypt and as a result is subject to political risks. The government extensively regulates the energy industry, with influence over exploration and production activities, prices, taxes, royalties and export restrictions. New regulations or modifications to existing regulations could adversely impact the company’s profitability. Important Disclosures Analyst Certification I, Bill Newman, CFA, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report. Relevant Disclosures Applicable to Companies Under Coverage Relevant disclosures required under IIROC Rule 3400 applicable to companies under coverage discussed in this research report are available on our website at www.researchcapital.ca General Disclosures The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation ("RCC") are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions. Company Specific Disclosures This report has been created by analysts who are employed by Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see the Company Related Disclosure section of the report. 2 TAG OIL LTD. (TAO-TSXV) TARGET CHANGE Energy Within the past 12 months, Research Capital has provided investment banking services to the issuer. Distribution Policy Through www.researchcapital.com, our institutional and corporate clients can access our research as soon as it becomes available, 24-7. New reports are continually uploaded to the site as they become available throughout the day. Clients may also receive our research via Reuters, Bloomberg, FactSet, and Capital IQ. All of our research is made widely available at the same time to all Research Capital client groups entitled to our research. In addition, research reports are sent directly to our clients based on their delivery preference (mail, fax, e-mail). Fair Dissemination of Research Reports and Ratings To the extent reasonably practicable, Research Reports will be disseminated contemporaneously to all of Research Capital Corporation ("RCC") customers who are entitled to receive the firm's research. Until such time, Research Analysts will not discuss the contents of their reports with Sales and Trading or Investment Banking employees. RCC equity research is posted to our proprietary website to ensure eligible clients receive coverage initiations and changes in rating, targets and opinions in a timely manner. Additional distribution may be done by the sales personnel via email, fax or regular mail. Please contact your investment advisor for more information regarding RCC research. Percentage Distribution of Research Ratings As required by the Investment Industry Regulatory Organization of Canada, Research Capital provides a summary of the percentage of its recommendations that fall into each category of our ratings. Please click this link Our Research - Research Capital Corporation to see our distribution of ratings. Potential Conflicts of Interest All Research Capital Corporation ("RCC") Analysts are compensated based in part on the overall revenues of RCC, a portion of which are generated by investment banking activities. RCC may have had, or seek to have, an investment banking relationship with companies mentioned in this report. RCC and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned in our Research Reports as principal or agent. RCC makes every effort possible to avoid conflicts of interest, however readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies. RC USA INC. Information about Research Capital Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is available on our website at www.researchcapital.com. The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Research Capital Corporation assume any responsibility or liability. Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. Contents of this report cannot be reproduced in whole or in part without the express permission of Research Capital Corporation. US Institutional Clients – Research Capital USA Inc., a wholly owned subsidiary of Research Capital Corporation, accepts responsibility for the contents of this report subject to the terms and limitations set out above. US firms or institutions receiving this report should effect transactions in securities discussed in the report through Research Capital USA Inc., a Broker – Dealer registered with the Financial Industry Regulatory Authority (FINRA). Member – Canadian Investor Protection Fund / membre – fonds canadien de protection des épargnants This report has been created by analysts who are employed by Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see the Company Related Disclosure section of the report. 3 TAG OIL LTD. (TAO-TSXV) UPDATE Energy November 22, 2022 Independent Report Confirms Large Resource Potential ACTTION: Maintain SPEC. BUY and $1.35 This morning, TAG announced the results of an independent resources evaluation of the AbuRoash F Formation (“ARF”) in the Badr Oil Field (“BED-1”) in Western Egypt. Estimated oil-initially-in-place ("OIIP") of 532 million barrels (“MMbbls) is in line with our estimate of 500 MMbbls. Next month, TAG will commence a drilling and testing program intended to convert resources into reserves. We maintain our SPECULATIVE BUY recommendation and our $1.35 target price. DETAILS: BED-1 Holds a Large Unconventional Resource Badr Oil Field - Background : In October 2022, TAG was awarded of a petroleum service agreement to test and develop the ARF formation, in the Badr Oil Field. The ARF formation is a large oil-initially-in-place (“OIIP”), unconventional play that TAG plans to unlock using proven western technology, including long-reach horizontal wells and hydraulic fracture stimulation. TAG Oil has conducted a detailed technical analysis of the geologic, geophysical and well production data of the ARF zone, and has determined that it has similar, if not, slightly better characteristics to the Eagle Ford shale in Texas. All of the infrastructure is already in place with processing facilities and a pipeline to the coast. OIIP of 531 MMbbls: The resource report was prepared by RPS Energy Canada Ltd (“RPS”) and is effective March 31, 2022. Based upon 3D seismic data, 60 well penetrations, and log and core data, RPS assigned an oil-initially-in-place (P50) volume of 531.5 MMbbls to the ARF over the BED-1 concession. Net Contingent Resource of 16.5 MMbbl with an NPV of US$339 mm: Based upon TAG’s initial field development plan of 20 horizontal wells, on the east central part of the BED-1 concession, containing 178.3 MMbbls of OIIP, RPS calculated a risked contingent recoverable resource (“2C”) estimate of 27 million barrels, 16.5 MMbbls net to TAG. The risked, after-tax NPV discounted at 10% for the 2C resource is US$339 million, equal to C$2.93 per share. Net Steps: Next month, TAG plans to re-enter and complete a 100-tonne fracture stimulation of an existing vertical well and place the well on production. Then in Q1/23, TAG plans to commence a two horizontal well drilling program. Both wells will be completed with multi-stage fracture stimulation. IMPACT: Positive. Pilot Program to Move Resources into Reserves The initial 20 horizontal well field development plan has the potential to unlock a substantial resource on just a portion of the block. With success, TAG would likely expand the program. In the near-term, if the vertical well re-entry and two new horizontal well program proves successful, we expect a significant portion of the 2C contingent resource could be converted into 2P reserves, which could be a major catalyst for the stock. TAG also continues to conduct technical studies and evaluations of other acquisition opportunities in Egypt which could lead to new growth opportunities for the company. Maintain SPECULATIVE BUY and $1.35 target. KEY INFORMATION Price C$0.54 Price Target C$1.35 Rating SPECULATIVE BUY Market Cap ($M) C$83.70 MARKET DATA TAO-TSXV C$0.54 52 Week Range C$0.66 - C$0.20 Basic Shares O/S (mm) 155.0 Fully Diluted O/S (mm) 168.8 Enterprise Value ($M) C$34.5 Net Debt ($M) C$(34.5) ANALYST INFORMATION Bill Newman, CFA (403) 260-2460 bnewman@researchcapital.com This report has been created by analysts who are employed by Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report. 1 TAG OIL LTD. (TAO-TSXV) UPDATE Energy Company Description: TAG Oil Ltd. is currently focused on oil and gas exploration and development in the Middle East and North Africa. Near-term operations are focused on the unlocking the unconventional oil potenital in the ARF formation in the BED-1 block, located in Egypt. TAG also holds a 2.5% gross overriding royalty on future production from previously held assets located in New Zealand and a 3% GORR on perviously held assets in Australia. Risks: RISKS While this is not an exhaustive list, we view the following risks as being noteworthy to investors in TAG Oil Ltd. SHALE OIL PLAY: Although TAG has conducted a detailed analysis of the ARF zone, there can be no assurances that the Company will be successful at proving the commerciality of the play FINANCIAL RISK| TAG currently has limited production and cash flow and must rely on working capital to fund its operations. If TAG is unable to increase production as expected, the Company may need to source additional capital which may not be available when needed. EXCHANGE RATE RISK| TAG is an international company, is exposed to currency fluctuations including the Egyptian Pound, the US dollar and Canadian dollar. EXPLORATION RISK | TAG has an active exploration program. The exploration for, and production of, hydrocarbons is a highly speculative activity which involves a high degree of risk. Exploration failure could have a material impact on our valuation. POLITICAL RISK| TAG is an international oil and natural gas exploration and production with primary activities in Egypt and as a result is subject to political risks. The government extensively regulates the energy industry, with influence over exploration and production activities, prices, taxes, royalties and export restrictions. New regulations or modifications to existing regulations could adversely impact the company’s profitability. Important Disclosures Analyst Certification I, Bill Newman, CFA, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report. General Disclosures The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation ("RCC") are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions. Company Specific Disclosures Within the past 12 months, Research Capital has provided investment banking services to the issuer. This report has been created by analysts who are employed by Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report. 2 TAG OIL LTD. (TAO-TSXV) UPDATE Energy Tag Oil Ltd. Rating History as of 11/21/2022 0.60 0.50 0.40 0.30 0.20 0.10 0.00 Jan 20 Apr 20 Jul 20 Oct 20 Jan 21 Apr 21 Jul 21 Oct 21 Jan 22 Apr 22 Jul 22 Oct 22 H:NA 09/21/2020 SB:$1.35 09/20/2022 Closing Price Distribution Policy Through www.researchcapital.com, our institutional and corporate clients can access our research as soon as it becomes available, 24-7. New reports are continually uploaded to the site as they become available throughout the day. Clients may also receive our research via Reuters, Bloomberg, FactSet, and Capital IQ. All of our research is made widely available at the same time to all Research Capital client groups entitled to our research. In addition, research reports are sent directly to our clients based on their delivery preference (mail, fax, e-mail). Fair Dissemination of Research Reports and Ratings To the extent reasonably practicable, Research Reports will be disseminated contemporaneously to all of Research Capital Corporation ("RCC") customers who are entitled to receive the firm's research. Until such time, Research Analysts will not discuss the contents of their reports with Sales and Trading or Investment Banking employees. RCC equity research is posted to our proprietary website to ensure eligible clients receive coverage initiations and changes in rating, targets and opinions in a timely manner. Additional distribution may be done by the sales personnel via email, fax or regular mail. Please contact your investment advisor for more information regarding RCC research. Percentage Distribution of Research Ratings As required by the Investment Industry Regulatory Organization of Canada, Research Capital provides a summary of the percentage of its recommendations that fall into each category of our ratings. Please click this link Our Research - Research Capital Corporation to see our distribution of ratings. Potential Conflicts of Interest All Research Capital Corporation ("RCC") Analysts are compensated based in part on the overall revenues of RCC, a portion of which are generated by investment banking activities. RCC may have had, or seek to have, an investment banking relationship with companies mentioned in this report. RCC and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned in our Research Reports as principal or agent. RCC makes every effort possible to avoid conflicts of interest, however readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies. RCC USA Information about Research Capital Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is available on our website at www.researchcapital.ca. The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Research Capital Corporation assume any responsibility or liability. Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. Contents of this report cannot be reproduced in whole or in part without the express permission of Research Capital Corporation. US Institutional Clients – Research Capital USA Inc., a wholly owned subsidiary of Research Capital Corporation, accepts responsibility for the contents of this report subject to the terms and limitations set out above. US firms or institutions receiving this report should effect transactions in securities This report has been created by analysts who are employed by Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report. 3 TAG OIL LTD. (TAO-TSXV) UPDATE Energy discussed in the report through Research Capital USA Inc., a Broker – Dealer registered with the Financial Industry Regulatory Authority (FINRA). Member – Canadian Investor Protection Fund / membre – fonds canadien de protection des épargnants This report has been created by analysts who are employed by Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report. 4 TAG OIL LTD. (TAO-TSXV) UPDATE Energy November 7, 2022 Cashed Up and Ready to Roll! ACTTION: Maintain SPEC. BUY and $1.35 On Friday, TAG announced the closing of the previously announced $25.3 million underwritten equity financing. Research Capital Corporation was a co-lead underwriter and sole-bookrunner for the financing, which was fully subscribed, including the full exercise of the over-allotment option. Post financing, we estimate net positive working capital has increased to approximately $35 million. The primary use of proceeds is to fund the evaluation of the Abu Roash F Formation (“ARF”) in the Badr Oil Field (“BED-1”) in Western Egypt. We maintain our SPECULATIVE BUY recommendation and our $1.35 target price equivalent to a 0.75x (from 0.5x) multiple of our risked NAV estimate. DETAILS: Pilot Program Underway – First Well to Spud in Early 2023 Badr Oil Field: In October 2022, TAG was awarded of a petroleum service agreement to test and develop the ARF Reservoir, in the Badr Oil Field. The ARF formation is a large original-oil-in-place (“OOIP”), unconventional play that TAG plans to unlock using proven western technology, including long-reach horizontal wells and hydraulic fracture stimulation. The Badr Oil Field was discovered in 1982 by a joint venture led by Shell Oil and has produced significant light oil and associated natural gas from conventional sandstone reservoirs. Although the ARF formation is a deep, tight, carbonate reservoir, it has produced medium gravity oil, conventionally, from some wells on the block. TAG will pay 100% of the capital and operating cost in return for a significant portion of the production revenue from the ARF formation. ARF Resource Play: TAG Oil has conducted a detailed technical analysis of the geologic, geophysical and well production data of the ARF zone, and has determined that it has similar, if not, slightly better characteristics to the Eagle Ford shale in Texas. The ARF zone ranges from 25 to 50 metres in thickness, across the 26,000-acre BED-1 concession, with the potential to hold substantial oil-in-place. TAG expects to commence a Phase 1 pilot development stage, later this month through H1/23, which will likely include the drilling of its first shale well in early 2023. The Pilot program is expected to be followed by the Phase 2 & 3, commercial production stages. All the infrastructure is already in place with processing facilities and a pipeline to the coast. Resource Potential: Assuming 33% of the 26,000 acre BED-1 block proves economic in the ARF, and assuming average net pay of 25 metres, and using the Eagle Ford as an analogy, we calculate a potential ~ 60,000 bbl of OOIP per acre, equal to over 500 million barrels of OOIP. An independent resource report is expected to be released before year-end. IMPACT: Positive. Capital in Place to Commence the Pilot Program Management has an impressive track record of building and monetizing successful international oil and gas companies operating in Egypt and other countries around the world. With the capital now in hand, TAG has the funding to complete its 2022/2023 Pilot program, which upon success could lead to a commercial development of the play. TAG also continues to conduct technical studies and evaluations of other acquisition opportunities in Egypt which could lead to new growth opportunities for the company. Maintain SPECULATIVE BUY and $1.35 target. KEY INFORMATION Price C$0.43 Price Target C$1.35 Rating SPECULATIVE BUY Market Cap ($M) C$39.14 MARKET DATA TAO-TSXV C$0.43 52 Week Range C$0.66 - C$0.20 Basic Shares O/S (mm) 91.8 Fully Diluted O/S (mm) 105.5 Enterprise Value ($M) C$26.4 Net Debt ($M) C$(15.4) ANALYST INFORMATION Bill Newman, CFA (403) 260-2460 bnewman@researchcapital.com This report has been created by analysts who are employed by Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report. 1 TAG OIL LTD. (TAO-TSXV) UPDATE Energy Company Description: TAG Oil Ltd. is currently focused on oil and gas exploration and development in the Middle East and North Africa. Near-term operations are focused on the unlocking the unconventional oil potenital in the ARF formation in the BED-1 block, located in Egypt. TAG also holds a 2.5% gross overriding royalty on future production from previously held assets located in New Zealand and a 3% GORR on perviously held assets in Australia. Risks: RISKS While this is not an exhaustive list, we view the following risks as being noteworthy to investors in TAG Oil Ltd. SHALE OIL PLAY: Although TAG has conducted a detailed analysis of the ARF zone, there can be no assurances that the Company will be successful at proving the commerciality of the play FINANCIAL RISK| TAG currently has limited production and cash flow and must rely on working capital to fund its operations. If TAG is unable to increase production as expected, the Company may need to source additional capital which may not be available when needed. EXCHANGE RATE RISK| TAG is an international company, is exposed to currency fluctuations including the Egyptian Pound, the US dollar and Canadian dollar. EXPLORATION RISK | TAG has an active exploration program. The exploration for, and production of, hydrocarbons is a highly speculative activity which involves a high degree of risk. Exploration failure could have a material impact on our valuation. POLITICAL RISK| TAG is an international oil and natural gas exploration and production with primary activities in Egypt and as a result is subject to political risks. The government extensively regulates the energy industry, with influence over exploration and production activities, prices, taxes, royalties and export restrictions. New regulations or modifications to existing regulations could adversely impact the company’s profitability. Important Disclosures Analyst Certification I, Bill Newman, CFA, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report. General Disclosures The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation ("RCC") are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions. Company Specific Disclosures Within the past 12 months, Research Capital has provided investment banking services to the issuer. This report has been created by analysts who are employed by Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report. 2 TAG OIL LTD. (TAO-TSXV) UPDATE Energy Tag Oil Ltd. Rating History as of 11/04/2022 0.60 0.50 0.40 0.30 0.20 0.10 0.00 Jan 20 Apr 20 Jul 20 Oct 20 Jan 21 Apr 21 Jul 21 Oct 21 Jan 22 Apr 22 Jul 22 Oct 22 H:NA 09/21/2020 SB:$1.35 09/20/2022 Closing Price Distribution Policy Through www.researchcapital.com, our institutional and corporate clients can access our research as soon as it becomes available, 24-7. New reports are continually uploaded to the site as they become available throughout the day. Clients may also receive our research via Reuters, Bloomberg, FactSet, and Capital IQ. All of our research is made widely available at the same time to all Research Capital client groups entitled to our research. In addition, research reports are sent directly to our clients based on their delivery preference (mail, fax, e-mail). Fair Dissemination of Research Reports and Ratings To the extent reasonably practicable, Research Reports will be disseminated contemporaneously to all of Research Capital Corporation ("RCC") customers who are entitled to receive the firm's research. Until such time, Research Analysts will not discuss the contents of their reports with Sales and Trading or Investment Banking employees. RCC equity research is posted to our proprietary website to ensure eligible clients receive coverage initiations and changes in rating, targets and opinions in a timely manner. Additional distribution may be done by the sales personnel via email, fax or regular mail. Please contact your investment advisor for more information regarding RCC research. Percentage Distribution of Research Ratings As required by the Investment Industry Regulatory Organization of Canada, Research Capital provides a summary of the percentage of its recommendations that fall into each category of our ratings. Please click this link Our Research - Research Capital Corporation to see our distribution of ratings. Potential Conflicts of Interest All Research Capital Corporation ("RCC") Analysts are compensated based in part on the overall revenues of RCC, a portion of which are generated by investment banking activities. RCC may have had, or seek to have, an investment banking relationship with companies mentioned in this report. RCC and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned in our Research Reports as principal or agent. RCC makes every effort possible to avoid conflicts of interest, however readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies. RCC USA Information about Research Capital Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is available on our website at www.researchcapital.ca. The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Research Capital Corporation assume any responsibility or liability. Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. Contents of this report cannot be reproduced in whole or in part without the express permission of Research Capital Corporation. US Institutional Clients – Research Capital USA Inc., a wholly owned subsidiary of Research Capital Corporation, accepts responsibility for the contents of this report subject to the terms and limitations set out above. US firms or institutions receiving this report should effect transactions in securities This report has been created by analysts who are employed by Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report. 3 TAG OIL LTD. (TAO-TSXV) UPDATE Energy discussed in the report through Research Capital USA Inc., a Broker – Dealer registered with the Financial Industry Regulatory Authority (FINRA). Member – Canadian Investor Protection Fund / membre – fonds canadien de protection des épargnants This report has been created by analysts who are employed by Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report. 4 TAG OIL LTD. (TAO-TSXV) RATING CHANGE Energy September 20, 2022 TAG Enters Egypt! ACTTION: Upgrading to a SPEC. BUY and Increasing Target to $1.35 This morning, TAG announced the award of a petroleum service agreement to develop the Abu Roash F formation (“ARF”), in the Badr Oil Field (“BED-1”), located in Western Egypt. The ARF formation is a large original-oil-in-place (“OOIP”), unconventional play that TAG plans to unlock using proven western technology, including long-reach horizontal wells and hydraulic fracture stimulation. Management has an impressive track record of building and monetizing successful international oil and gas companies operating in Egypt and other countries around the world. We are upgrading our recommendation to a SPECULATIVE BUY (from HOLD) and we are increasing our target price to $1.35 equivalent to a 0.5x multiple of our new risked NAV estimate DETAILS: Developing a New Oil Resource Play in Egypt Badr Oil Field : The Badr Oil Field was discovered in 1982 by a joint venture led by Shell Oil, and has produced significant light oil and associated natural gas from conventional sandstone reservoirs. The field is currently producing approximately 3,500 bbl/d. Although the ARF formation is a deep, tight, carbonate reservoir, it has produced medium gravity oil, conventionally, from some wells on the block. TAG will pay 100% of the capital and operating cost in return for a significant portion of the production revenue from the ARF formation. ARF Resource Play: TAG Oil has conducted a detailed technical analysis of the geologic, geophysical and well production data of the ARF zone, and has determined that it has similar, if not, slightly better characteristics to the Eagle Ford shale in Texas. The ARF zone ranges from 25 to 50 metres in thickness, across the 26,000 acre BED-1 concession, with the potential to hold substantial oil-in-place. TAG expects to commence a Phase 1, pilot development stage, late this year through H1/23, which is expected to be followed by the Phase 2 & 3, commercial production stages. All of the infrastructure is already in place with processing facilities and a pipeline to the coast. Valuation : Assuming 33% of the 26,000 acre BED-1 block proves economic in the ARF, and assuming average net pay of 25 metres, and using the Eagle Ford as an analogy, we calculate