Cygnet Energy Ltd. agreed to acquire Kiwetinohk Energy Corp. (TSX:KEC) from ARC Financial Corp., Luminus Energy IE Designated Activity Company and others for CAD 1.1 billion on October 28, 2025. A cash consideration valued at CAD 24.75 per share will be paid by Cygnet Energy Ltd. The transaction will be financed from debt and equity financings. As per the transaction, ARC Financial Corp. will exchange its 6.06 million shares held in Kiwetinohk Energy Corp. with the shares of Cygnet Energy Ltd.

The transaction is subject to approval by regulatory board / committee, antitrust approval, approval of offer by target shareholders and subject to court approval. The Board of Directors of Kiwetinohk Energy Corp. formed a special committee for the transaction. The deal has been unanimously approved by the board of directors of Kiwetinohk Energy Corp. The transaction is expected to close in late December 2025. As of December 8, 2025, the transaction has been unanimously approved by the board of directors of Kiwetinohk Energy Corp. As of December 16, 2025, the transaction has been approved by the shareholders of Kiwetinohk Energy Corp. The transaction is anticipated to be completed on December 18, 2025. The Shares will be delisted from the Toronto Stock Exchange following the closing of the Arrangement.

National Bank Financial Markets acted as fairness opinion provider for Kiwetinohk Energy Corp. National Bank Financial Markets acted as financial advisor for Kiwetinohk Energy Corp. RBC Capital Markets Inc. acted as financial advisor for Kiwetinohk Energy Corp. Chrysten E. Perry of Stikeman Elliott LLP acted as legal advisor for Kiwetinohk Energy Corp. Peters & Co., Limited acted as fairness opinion provider for Kiwetinohk Energy Corp. Burnet, Duckworth & Palmer LLP acted as legal advisor for Cygnet Energy Ltd. Tudor, Pickering, Holt & Co. Securities Canada, ULC acted as financial advisor for Cygnet Energy Ltd. BMO Capital Markets acted as financial advisor for Carlyle. Norton Rose Fulbright Canada LLP acted as legal advisor to Cygnet for the related debt and equity financings. Carlyle acted as advisor to Cygnet on the debt financing arrangements for the Acquisition.

Cygnet Energy Ltd. completed the acquisition of Kiwetinohk Energy Corp. (TSX:KEC) from ARC Financial Corp., Luminus Energy IE Designated Activity Company and others on December 18, 2025. The KEC Shares are expected to be delisted from the Toronto Stock Exchange at the close of business on December 19, 2025.