Orca Energy Group Inc. Reports Appeal Result in Contractor Dispute

TORTOLA, British Virgin Islands – February 4, 2026 – Orca Energy Group Inc. (“Orca” or the “Company”), a public company focused on natural gas development and supply in Tanzania, has disclosed the result of its appeal in a long-standing contractual dispute with African Geophysical Services LLP (“AGS”). The announcement was made through a formal press release distributed via GlobeNewswire.

Background of the Contractor Dispute

In February 2025, the High Court of Tanzania (Commercial Division) delivered a judgment against Orca’s Tanzanian subsidiary, PanAfrican Energy Tanzania Limited (“PAET”), in favor of AGS. The court ruled that PAET owed specific and general damages totaling US$23,100,451, in addition to legal costs and interest at a rate of 7% per annum. The dispute arose from contractual disagreements between PAET and AGS related to services provided under an agreement, the details of which led to litigation in the Tanzanian courts.

Following the High Court’s decision, PAET filed an appeal (hereafter referred to as the “Appeal”) to the Court of Appeal of Tanzania. The Appeal required Orca to post security for costs equal to the full amount of the original judgment. As a result, the Company recognized a corresponding financial liability in its 2024 financial statements.

Outcome of the Appeal

On February 3, 2026, the Court of Appeal issued its decision (referred to as the “Appeal Judgment”), modifying parts of the original High Court ruling. The appellate court:

• Partially granted the Appeal;
• Awarded AGS total damages of US$17,912,445, reducing the amount of the original judgment;
• Dismissed certain grounds for damages that together totaled US$5,125,006.

This outcome effectively reduces the liability associated with the dispute, though a substantial amount remains upheld in favor of AGS. Orca is now carefully reviewing the court’s reasoning and the broader financial and legal ramifications of the new judgment.

Company’s Review and Next Steps

Orca Energy Group indicated that senior management and legal advisors are analyzing the Appeal Judgment to fully understand its implications. Once that review is complete, the Company plans to evaluate its available legal options, which could include further appeals or other means of challenging the judgment if justified.

While Orca has not committed to immediate additional disclosures, it noted that future updates will be provided if the board of directors determines such communication is necessary or appropriate. Throughout this process, the Company reaffirmed its commitment to protecting shareholder interests and safeguarding stakeholder value.

About Orca Energy Group Inc.

Orca Energy Group Inc. is an international public company engaged in the development and supply of natural gas resources in Tanzania. The Company operates through its subsidiary, PAET, and is listed on the TSX Venture Exchange under the trading symbols ORC.A and ORC.B. Orca’s principal focus is on the Songo Songo gas field, where it contributes to the region’s energy supply chain by producing and delivering natural gas that supports local industries and power generation efforts.

The Company continues its operations with an emphasis on legal diligence, operational sustainability, and transparent communication with its investors, partners, and broader stakeholders. As the legal review advances, Orca remains focused on its strategic objectives in the East African energy sector.

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