Condor Signs Its First LNG Framework Agreement in Kazakhstan

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CALGARY, Alberta, July 17, 2024 (GLOBE NEWSWIRE) — Condor Energies Limited (“Condor” or the “Company”) (TSX: CDR), a Canadian energy transition company focused on providing stable and sustainable solutions for the energy transition, is pleased to announce the signing of the first LNG Framework Agreement (“Agreement”) to use liquefied natural gas (“LNG”) to fuel railway locomotives in Kazakhstan. The Agreement was signed by Kazakhstan Temir Zholy National Company Limited (“KTZ”), the national railway operator of the Republic of Kazakhstan (“Kazakhstan”), and Wabtec Corporation (“Wabtec”) (NYSE: WAB), a U.S.-based locomotive manufacturer with facilities in Kazakhstan.

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KTZ and Wabtec had earlier signed a Memorandum of Understanding (MoU) covering the modernization works to upgrade KTZ’s main fleet of locomotives to use LNG and integrate LNG into the new locomotives. The agreement brings Condor into this locomotive fleet modernization strategy as a supplier and distributor of LNG.

The agreement also provides a detailed framework whereby the three parties will coordinate efforts to ensure that Condor’s LNG production volumes are synchronized with the delivery of Wabtec’s new and converted LNG-powered railcars. A working group consisting of members from each party will be responsible for defining and monitoring key performance indicators associated with this initiative.

Replacing diesel with LNG as a locomotive fuel is expected to reduce costs and increase the speed of freight transportation by rail across Kazakhstan by increasing operating ranges, reducing transit times, and reducing fuel and maintenance costs. It will also significantly reduce greenhouse gas emissions in support of the Kazakhstan government’s goal of becoming carbon-neutral by 2060.

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The agreement is also important for providing a stable, economical and environmentally friendly fuel source for the expansion of the Trans-Caspian International Transport Route (“TITR”), which is currently the shortest, fastest and most geopolitically secure transit route for cargo transportation between Asia and Europe. The Government of Kazakhstan and KTZ are making significant investments in the TITR infrastructure, including the expansion of the railway network, the construction of a new dry port on the border of Kazakhstan and China, and the increase of container handling capacities at various Caspian ports.

Condor has already completed front-end engineering for its first modular LNG facility, and detailed engineering will begin soon. The company’s LNG facilities will use the latest technology developed by the U.S. Department of Energy and its market partner Condor LNG USA. The first facility will be built near Aktobe, Kazakhstan, and will produce 120,000 metric tons of LNG per year, equivalent to the energy volume of 450,000 liters of diesel per day. The first phase of the first facility is currently scheduled to start LNG production in mid-2026, with stable feed gas supplies already secured. The company is also developing project financing options.

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“This is a significant milestone in the company’s strategic plan to promote, produce and distribute LNG for use in Kazakhstan’s transport sector,” commented Don Straw, Chairman and CEO of Condor. “The close cooperation outlined in the framework agreement will ensure that the three parties effectively coordinate the production and timely delivery of LNG, which will more effectively meet the demands of Kazakhstan’s energy transition and growth plans. The Trans-Pacific trade route, with its growing importance as the shortest and fastest route for transporting goods between Asia and Europe, is expected to boost demand for LNG.”

Readers are invited to review the Company’s latest presentation available on Condor’s website at “condorenergies.ca”.

About CONDOR ENERGIES INC.

Condor Energies Limited is a Toronto-listed company advancing the energy transition and focusing on diverse initiatives in Central Asia. With producing gas assets, an ongoing project to build and operate Central Asia’s first LNG facility and a separate lithium brine development and production project, the company has built a strong foundation of reserves, production and cash flow growth while also seeking to reduce its environmental footprint.

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About KTZ

KTZ is the national railway operator with over 100,000 employees and a fleet of over 1,400 locomotives across Kazakhstan.

About WABTEC

Wabtec is a Fortune 500 company. Headquartered in the United States and with operations in over 50 countries, it has over 150 years of experience in the railroad locomotive manufacturing and maintenance industry.^{trade mark} The diesel-LNG system has been in operation since 2018.

Forward looking data

Certain statements in this press release constitute forward-looking statements under applicable securities laws. Such statements can generally be identified by terminology such as “anticipate,” “seem,” “believe,” “intend,” “expect,” “plan,” “estimate,” “budget,” “forecast,” “scheduled,” “may,” “will,” “should,” “could,” “would,” “in process” or similar language. Forward-looking information in this press release includes, but is not limited to, information relating to: the timing and ability of the three parties to coordinate efforts to ensure that Condor’s LNG production volumes coincide with the delivery of Wabtec’s new and converted LNG-fired railroad locomotives; the timing and ability to monitor key performance indicators associated with this initiative; the timing and ability to increase operating ranges, reduce transit times and reduce fuel and maintenance costs; the ability to materially reduce greenhouse gas emissions; the timing and ability to provide a more stable, economical and environmentally friendly fuel source; the timing and ability to conduct detailed engineering of the facility; Timing and ability to use advanced LNG facility technology; Timing and ability to build facilities and produce and sell 120,000 metric tons of LNG per year from the first LNG facility; Timing and ability to produce LNG by mid-2026; Timing and ability to secure project financing; and Timing and ability to TITR transport route to further boost LNG demand.

The Toronto Stock Exchange does not assume responsibility for the adequacy or accuracy of this press release.

For more information, please contact Don Straw, President and CEO or Sandy Quilty, Vice President and Chief Financial Officer at 403-201-9694.

Abbreviations

Toronto Stock Exchange TSX

United States of America United States of America

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