Laredo Oil Signs Second Letter of Intent to Deploy UGD in Argentina

Second LOI targets a concession in Santa Cruz Province; similar commercial framework now in place across two operators

AUSTIN, Texas, Oct. 27, 2026 /PRNewswire/ -- Laredo Oil, Inc. (OTC: LRDC) ("Laredo" or the "Company") today announced a non-binding letter of intent ("LOI") with an established Argentine oil and gas operator to evaluate the commercial deployment of Laredo's proprietary Underground Gravity Drainage ("UGD") technology in a hydrocarbon exploitation concession in Santa Cruz Province, Argentina. The concession is held by a third-party concession holder, and the operator holds its participating and operating rights under agreements applicable to the concession. It is the Company's second Argentine LOI in 30 days, following the LOI announced on September 22, 2026. The counterparty and concession are withheld at this stage under the LOI's confidentiality provisions.

Highlights

• Same structure, second operator. The operator retains its concession and operating rights; Laredo acts as exclusive UGD contractor, funds the UGD capital and operating expenditures, and recovers its investment from incremental production under a cost-recovery and profit-sharing framework to be set out in definitive agreements. This mirrors the first LOI and is the template Laredo intends to apply across Argentine operators.
• Planned path to a decision. Technical, legal, financial and operational review, including front-end engineering and design (FEED), expected within the LOI's initial 180-day exclusivity period for the project area; any investment is subject to financing, approvals (including those of the concession holder and other third parties) and definitive agreements.
• Province engaged. Laredo has met with the Governor of Santa Cruz and the provincial Ministry of Energy and Mining, whose approvals may be required for definitive agreements. Discussions with additional Argentine operators are ongoing.
• Right market, right moment. Argentina's crude output hit a record 887,227 bopd in May 2026 (+19% y/y, Ministry of Economy) and crude became the country's largest export product in H1 2026 (INDEC). Roughly 30% of output still comes from conventional basins in natural decline, the reservoirs UGD is designed for. The February 2026 U.S.–Argentina Agreement on Reciprocal Trade and Investment provides for U.S. EXIM and DFC to consider financing U.S. investment in critical sectors; Laredo, a U.S. company with U.S.-developed technology, intends to evaluate those tools alongside private capital.

"Two LOIs on a similar framework, a province working to recover its conventional production and a country whose energy sector is growing at record pace: that is the shape of our Argentina program," said Mark See, Chief Executive Officer. "The engineering work now ahead of us will determine what can be done and on what timeline, and we intend to pursue it with the discipline our partners and shareholders expect."

About Laredo Oil, Inc.
Laredo Oil, Inc. (OTC: LRDC) is a U.S. energy technology company, headquartered in Austin, Texas, commercializing its proprietary Underground Gravity Drainage ("UGD") technology to increase oil recovery from mature conventional reservoirs. UGD was developed and piloted in the United States over more than a decade; the Company owns 100% of the related intellectual property. More at www.laredo-oil.com and in the Company's SEC filings.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding the LOI, the evaluation, financing, approval and potential deployment of UGD, the expected timing of FEED work, the contemplated commercial structure and its application to other opportunities, discussions with provincial authorities and other operators, and the evaluation of U.S. government-supported financing. Words such as "expect," "intend," "would," "potential," "contemplate" and similar expressions identify such statements. They are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially, including: the non-binding nature of the Company's letters of intent and the possibility that definitive agreements are not reached; the Company's limited financial resources and need for substantial additional financing (the Company's financial statements for the fiscal year ended May 31, 2026 contain going-concern disclosure); the fact that UGD has not yet been deployed at commercial scale; the outcome of engineering and economic evaluation; the availability of U.S. government-supported or other financing; governmental, regulatory and third-party approvals in Argentina, including at the provincial level and from the concession holder and counterparties to existing agreements; political, economic, regulatory and currency risks in Argentina; commodity prices; and the other risks described in the Company's Annual Report on Form 10-K and other SEC filings at www.sec.gov. Third-party data on Argentina's production, exports and trade framework is drawn from public sources and has not been independently verified by the Company. Forward-looking statements speak only as of the date hereof, and the Company undertakes no obligation to update them except as required by law.

Contact

Nicholas Rausch, EVP Business Development – Laredo Oil, Inc. – (512) 337-1199 – [email protected]

SOURCE LAREDO OIL INC