TAG Oil : MD&A for the period ended March 31, 2024

MANAGEMENT'S DISCUSSION AND ANALYSIS

The following Management's Discussion and Analysis ("MD&A") is dated May 30, 2024, for the three month period ended March 31, 2024 and should be read in conjunction with the condensed consolidated interim financial statements for the same period and audited consolidated financial statements for the nine month period ended December 31, 2023.

The condensed consolidated interim financial statements for the three-month period ended March 31, 2024, have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, and its interpretations. Results for the three-month period ended March 31, 2024, are not necessarily indicative of future results. All figures are expressed in thousands of Canadian dollars unless otherwise stated.

ABOUT TAG OIL LTD.

TAG Oil Ltd. (the "Company" or "TAG") is a Canadian international upstream oil and gas exploration and production company listed on the TSX Venture Exchange under the trading symbol "TAO". The Company is focused on oil and gas exploration and development opportunities in the Middle East and North Africa ("MENA"). TAG holds an interest in the Badr Oil Field ("BED-1"), a 26,000 acres concession located in the Western Desert, Egypt, through a petroleum services agreement (the "PSA") with Badr Petroleum Company ("BPCO"). The Company also is entitled to a 2.5% royalty on gross revenue produced from the New Zealand assets previously sold and 3.0% gross overriding royalty on potential future gas production from its former Australian assets.

The Company has changed its year end from March 31 to December 31 to align it with its subsidiary, which operates on a calendar fiscal year end in Egypt. Accordingly, the current condensed consolidated interim financial statements prepared for three months ended March 31, 2024 and the comparative figures stated in the income statement, statement of changes in equity, cash flow statement and the related notes might not be comparable.

TAG's long-term plan is to deliver sustainable shareholder value through the evaluation of new acquisitions and joint venture opportunities primarily in Egypt and the broader MENA region, with the aim of expanding and identifying suitable additions to the Company's portfolio.

TAG will maintain its primary focus on the BED-1 field and continue to work on optimizing and unlocking shareholder value in other assets.

TAG CORPORATE

On November 17, 2023, the Company was approved for a reduction in the performance letter of guarantee (the "Letter of Guarantee") in the amount of US$2,562,595 based on expenditures reviewed by Egyptian General Petroleum Corporation ("EGPC") for fulfilling a portion of the commitments outlined in the PSA.

On September 1, 2023, the Company issued 1,450,000 shares for stock options exercised at a price of $0.25 per share.

On September 1, 2023, the Company issued 2,343,750 shares for warrants exercised at a price of $0.16 per share.

On August 24, 2023, and September 22, 2023, the Company issued 21,126,542 common shares for public offering and over-allotment option at a price of $0.58 per common share for aggregate gross proceeds of $12.3 million. The aggregate underwriters' fee paid to the underwriters in connection with the offering was $1.0 million and $0.1 million in other costs relating to the issuance.

On July 19, 2023, the Company issued 1,562,500 shares for warrants exercised at a price of $0.16 per share.

On July 11, 2023, the Company granted 1,800,000 stock options that are exercisable for a period of five years from the date of grant at a price of $0.70 per share.

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On June 26, 2023, the Company issued 2,187,500 common shares for warrants exercised at a price of $0.16 per share. Between May 10, 2023, to May 24, 2023, the Company issued 770,000 common shares for stock options exercised at a price of $0.50 per share.

RESULTS FROM OPERATIONS

On September 22, 2022, the Company was awarded the PSA for the development of the unconventional Abu Roash "F" ("ARF") reservoir in BED-1, Western Desert, Egypt, by BPCO, subject to various conditions. The two financial conditions being a signature bonus of US$3.0 million ($4.0 million) paid to BPCO and the Letter of Guarantee of US$6.0 million ($8.3 million) in favor of BPCO for work commitments to be completed. The PSA was formally signed on October 13, 2022.

On January 26, 2023, the Company commenced at BED-1 the re-completion and evaluation operations of the BED 1-7 vertical well. These initial operations are part of TAG's phase 1 development program of ARF reservoir in BED-1. On May 19, 2023, the BED 1-7 well started oil production from the ARF reservoir. The performance of the BED 1-7 well test has achieved the Company's objectives for the well, and data collected from the well along with geo-mechanical and 3D seismic review will be implemented for the first horizontal well.

On June 19, 2023, the Company announced that it was successful in securing a suitable drilling rig for the first horizontal well, BED4-T100 ("T100"), designed with a multi-stage fracture stimulation completion of the ARF reservoir. Mobilization of the rig was subsequently completed and the T100 well commenced drilling in August 2023. Commencing the T100 drilling program marks a significant milestone in the Company's operations and ongoing commitment to unlocking the ARF reservoir's potential in BED-1.

On August 22, 2023, the Company announced that the first horizontal well, BED4-T100 ("T100") in the Badr Oil Field ("BED-1") in the Western Desert of Egypt, has commenced drilling and is currently through a depth of 600 meters. The well targets oil in the ARF unconventional tight, carbonate reservoir at projected total vertical depth of 3,300 meters. The T100 well design included a vertical pilot assessment well for open-hole logging, formation imaging, pressure measurement and fluid sampling, followed by cement plug-back of lower vertical pilot hole and whip-stock drilling of build and lateral horizontal section in the ARF reservoir. Information obtained during the drilling of the T100 well, including mud logging and drill cuttings analysis along the lateral section, have been used in conjunction with the work completed on the geo-mechanical properties and 3D seismic review in the area to design the well completion and fracture stimulation program.

On September 27, 2023, the Company announced that it has started drilling the horizontal portion of the T100 well in BED-1. The vertical pilot hole was successfully drilled to a depth of 3,290 meters and included open-hole logging, formation imaging, and pressure measurement, followed by cement plug-back of the lower vertical pilot hole. Immediately thereafter, the Company proceeded into whip-stock drilling of build and lateral horizontal section in the ARF reservoir. The open hole logs showed very similar results to those completed over nearby offset wellbores in BED- 1. The ARF section was approximately 50 meters in thickness and was very close to the structural elevation anticipated.

On November 15, 2023, the Company announced the following update on drilling progress of the T100 horizontal well in BED-1. The horizontal build section of the T100 well and approximately 300 meters into the planned 1,000-meter lateral section in the ARF target reservoir encountered very good oil shows with high hydrocarbon gas readings and good indications of primary porosity. Initial drilling of the ARF unconventional, carbonate formation performed well at smooth build angles and steadily increasing drilling rates. However, drilling was encumbered by mechanical issues with the directional drilling tools and a minor throw fracture feature at which the Company elected to drill higher in the 50- meter ARF pay zone to go over the faulted section with the aim of increasing the final lateral length of the well. Drilling commenced on the next horizontal leg from the intermediate cased section at about 2,800 meters.

On January 3, 2024, the Company announced the following update on drilling progress of the T100 horizontal well in BED-1. As reported in the November 15 update, drilling continued from the intermediate cased section of the well and reached a measured depth of 3,312 meters in the ARF at hole angle of 90 degrees. However, geo-mechanical hole stability concerns in the upper section of the hole in the Abu-Roash "E" ("ARE"), an over-pressured formation with layered

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carbonate and shale lithology changes, was coupled with mechanical issues with the drilling rig mud system. This provided challenges to condition the build section of the hole past 3,200 meters to be able to run the casing liner, and multiple attempts to drill out past this point and continue into the ARF target reservoir were encumbered. The Company elected to plug back this hole section, initiate repairs of the drilling rig shale-shakers and tanks on the rig mud system, and review drilling procedures to isolate the ARE zone of the hole and land the casing liner in the ARF carbonate reservoir zone prior to proceeding with drilling the next lateral.

On Feb. 21, 2024, the Company announced the following update on drilling progress of the T100 horizontal well in BED-

1. Following the Company's last update on January 3, 2024, the Company has since completed re-drilling from the intermediate cased section of the T100 well in BED-1, landing the casing liner in the ARF carbonate reservoir zone, and reaching a measured depth of 3,238 meters in the ARF. TAG Oil then commenced drilling the T100 horizontal pay zone section, which was expected to take up to approximately three weeks to complete the drilling of the planned 1,000- meter horizontal section and run the completion technology.

On March 18, 2024, the Company announced a significant milestone in its ongoing exploration and development efforts within BED-1 with the successful completion of the drilling phase for the T100 horizontal well in the ARF limestone formation. The well penetrated an over-pressured reservoir with regions of exceptional porosity and permeability. During drilling operations, there were signs of free oil flowing into the wellbore and to surface, accompanied by consistently elevated gas readings across the ARF formation. The high pressure and potentially high gas to oil ratio in the ARF zone are projected to enhance the T100 well's production capabilities. Given the notably higher reservoir pressure and gas readings observed during drilling, the Company has made the proactive decision to adjust the lateral length to 308 meters (1,000 feet) as a safety measure. The exceptional quality of the encountered reservoir section presents an exciting prospect, offering the potential for robust oil production performance following the hydraulic fracture stimulation of the ARF horizontal well. The 4-1/2" liner with the packers assembly required for the completion has been installed and the drilling rig was released.

On April 10, 2024, the Company announced that completion and multistage hydraulic fracture equipment, personnel, camp and natural frac sand had been mobilized to the T100 well location. Additionally, static reservoir pressure and temperature measurements were performed to optimize the simulation model and completion design of the T100 well. Large-scale completion equipment for the region with frac head, sand conveyor and connecting lines to treatment fluid were rigged up on the T100 location.

On April 25, 2024, the Company announced that it has successfully pumped all twelve planned stages of its multistage hydraulic frac on its T100 well location. Stages one through three, which are located across the heavily fractured and more permeable section of the well, received a concentrated acid stimulation while stages four through twelve were mechanically fracture stimulated with proppant. At least 50 tonnes of sand were used per stage in the mechanically propped fracture stages with over 1,000,000 pounds successfully pumped across the 308-metre lateral section. The fracture equipment was moved off location, and a coiled tubing unit rigged in to drill out the metal balls and ball seats between fracture stages.

On May 16, 2024, the Company announced initial production test results on its BED4-T100 horizontal well, which tested at 800 barrels of oil per day ("BOPD"). The T100 well demonstrated encouraging results following a multi-stage hydraulic fracture stimulation targeting the ARF tight carbonate reservoir in BED-1 in the Western Desert of Egypt. During flowback, the oil production rates ranged between 400 and 800 BOPD as the well unloaded and the water-cut decreased to below 30%. The well continued to be unloaded under natural flow for another two weeks until a work-over rig was available to move to location and surface facilities were installed. The well recovered approximately 25% of the frac load water and has produced over 4,500 barrels of oil to date.

On May 28, 2024, the Company announced that the initial flow-back operation at the T100 well has been completed. The workover rig has been mobilized to the T100 well location to swap the 4 ½" frac tubing with 3 ½" production tubing, install a jet pump for artificial lift, and immediately put the well on long term production. The Company anticipates announcing a 10-day initial production average in the second half of June, which will indicate actual productivity potential for the T100 well.

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The Company completed the program laid out in the November offering as at March 31, 2024. The timing of the programs was pushed out due to the availability of suitable rigs, materials, service providers, and other activities in the executed portion of the program. Most of the variance in expenditures is slated for the multiple lateral legs required to complete the T100 horizontal well. The well was spudded in August of 2023, with drilling phase completed in March 2024 and fracture stimulation conducted in April 2024. Flow-back operations commenced in late April and continued until jet pump installation in May 2024.

The horizontal side-track well scheduled for later in 2024 will incorporate learnings information obtained in drilling the T100 well. Other potential acquisition opportunities are ongoing and will continue to be funded, but no definite prospect has been accepted.

The following table outlines the proposed use of the proceeds of the offering completed on August 24, 2023, and the over-allotment on September 22, 2023:

				Approximate
		Proposed		Use of
		Use of Net		Proceeds to
Activity or Nature of		Proceeds		March 31, 2024		Variance
Expenditure		('000)		('000)		('000)		Comments
Operational and Drilling Budget
for year ended 2024 (comprised
of exploration wells)
Long lead items for the Drilling	$2,500	$2,500	$0		No current expenditures
Program								expected in the 2024 program.
Horizontal Drilling Program	$2,500	$0	$2,500		Work on a horizontal side-track
								well is tentatively scheduled for
								Q4 2024.
Potential Strategic Acquisition	$2,500	$360	$2,140		The Company is continuing to
Opportunities								look at other acquisition
								opportunities.
Unallocated Working Capital	$4,141	$2,806	$1,335
Total	$11,641	$5,666	$5,975

The Company is continuing to work through the program laid out in the August and September offering and is showing a variance with $6.0 million remaining as at March 31, 2024. As we move through 2024, we will use the results of the T100 to evaluate and inform the future design and development of our program. It is anticipated that the above funds of $6.0 million will be used as indicated in calendar 2024.

FIRST QUARTER FINANCIAL AND OPERATING HIGHLIGHTS

• At March 31, 2024, the Company had $12.7 million in cash and cash equivalents and $9.4 million in working capital.
• Oil sales in the amount of $nil for the three month period ended March 31, 2024 as the BED 1-7 well is currently undergoing a build-up assessment of the reservoir pressure to determine the depletion and potential of the well. It will then be evaluated for clean-out operations and resuming production.
• Capital expenditures totaled $5.7 million for the three month period ended March 31, 2024. The amount consists of exploration and evaluation.

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BUSINESS ENVIRONMENT

As of May 2024, the oil and gas business environment in Egypt remains robust and promising for international companies, with significant government initiatives and investments aimed at enhancing the sector. Here are the key aspects shaping the current landscape:

1. Increased Investment: Egypt aims to attract $7.5 billion in foreign investments for the oil and gas sector in the fiscal year 2024/2025, up from $6 billion the previous year. This target is part of a broader strategy to ramp up total oil and natural gas investments to $9 billion in 2023/2024 (EgyptToday) (Ahram Online).
2. Exploration and Production: The country continues to be a hub for major international oil companies. Recent developments include Qatar Energy acquiring a 40% interest in two offshore blocks from ExxonMobil, and the awarding of new exploration bids to companies such as Eni, BP, Qatar Energy, and Zarubezhneft (The Energy Year) (The New Arab). Additionally, Egypt plans to drill 35 new exploratory gas wells in the Mediterranean and the Nile Delta by 2025, with an expected investment of $1.8 billion (Ahram Online).
3. Strategic Projects and Partnerships: Notable projects include BP and ADNOC's upstream joint venture and Dragon Oil's investment of $500 million to drill new wells to maintain a production rate of 61,000 barrels of oil per day (EgyptToday) (The Energy Year). The government has also signed nine new oil and gas agreements worth over $1 billion to further boost exploration and production (JPT).
4. Geopolitical and Market Conditions: While Egypt has seen a decline in natural gas production due to more mature fields, it is actively working to manage and mitigate these effects. The geopolitical landscape and local market needs, particularly in the summer months, have influenced the country's export strategies and operational focus (EgyptToday).
5. Downstream and Petrochemical Development: Egypt is expanding its downstream operations to enhance refining capacity and become a net exporter of petrochemicals, aiming to diversify its industrial ecosystem and maximize economic potential (The Energy Year).

Overall, the business environment in Egypt's oil and gas sector is marked by increased foreign investment, strategic international partnerships, and substantial government support, making it an attractive destination for international oil companies looking to expand their operations.

OUTLOOK

The British Columbia and Alberta work environments have returned to pre-pandemic conditions. Travel restriction and increased precautions have been removed and progress and timing of most activities are normal. TAG has commenced exploration and evaluation operations in BED-1, Western Desert, Egypt, pursuant to the PSA and has established an Egyptian branch office.

The Company completed re-completion and evaluation operations at BED-1 for the BED 1-7 vertical well. These initial operations are part of TAG's phase 1 development program for the ARF reservoir at BED-1. On May 19, 2023, the BED 1-7 well began producing oil from the ARF reservoir. The performance of the BED 1-7 well test met the Company's objectives, and the data collected, along with geo-mechanical and 3D seismic reviews informed the drilling of the T100 well. The well has produced approximately 10,000 barrels of oil and currently undergoing a build-upassessment of the reservoir pressure to determine the depletion and potential of the well and possible workover in combination with T100 artificial lift installation work-over rig operations.

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The Company has made significant progress at the T100 horizontal well in BED-1, targeting the ARF formation. The drilling phase was successfully completed, encountering an over-pressured reservoir with high porosity and permeability, indicating substantial production potential. The lateral length of the well was adjusted to 308 meters for safety. Subsequently, preparations for multistage hydraulic fracture completion were made, with equipment and materials mobilized to the site. Static reservoir measurements optimized the simulation model and completion design. The hydraulic fracture stimulation was executed in twelve stages, with a mix of acid stimulation and mechanical proppant fracturing, using over 1,000,000 pounds of proppant. Flow back operations began, yielding initial production rates of up to 800 BOPD. During the clean-up phase, the well flowed at over 1,000 barrels of fluid per day with a decreasing water- cut, producing over 4,500 barrels of oil and recovering 23% of the frac load water. The T100 well's performance highlights the ARF formation's potential and the efficacy of the Company's stimulation techniques, with further updates expected as production stabilizes.

The Company is continuing to seek out and evaluate other new opportunities in the MENA region.

The Company has sufficient liquidity to operate over the next twelve months.

SUMMARY OF QUARTERLY INFORMATION

	Mar	Dec	Sept	Jun	Mar	Dec	Sept	Jun
	31,	31,	30,	30,	31,	31,	30,	30,
Canadian ('000), except per share or boe	2024	2023	2023	2023	2023	2022	2022	2022
Net production volumes (boe/d)	0)	8)	41)	44)	0)	0)	0)	0)
Total revenue	0)	17)	262)	307)	-)	-)	-)	-)
Operating costs	(113)	(461)	(877)	-)	-)	-)	-)	-)
Depletion, depreciation and accretion	(57)	(65)	(61)	(44)	(43)	(41)	(40)	(40)
Foreign exchange gain (loss)	338)	(60)	326)	(400)	(46)	188)	569)	166)
Interest and other income	227)	295)	268)	255)	275)	210)	62)	24)
Stock-based compensation	(240)	(341)	(630)	(262)	(683)	(175)	(33)	(53)
General and administative	(1,426)	(2,004)	(1,125)	(1,353)	(1,378)	(2,487)	(788)	(664)
Exploration expense and other income	(17)	(98)	-)	(54)	(6)	-)	(110)	(139)
Interest and penalties recovered	361)	-)	-)	-)	-)	-)	-)	-)
Gain (loss) on royalty valuation	144)	(654)	566)	43)	990)	(155)	791)	603)
Net (loss) income before tax	(783)	(3,371)	(1,271)	(1,508)	(891)	(2,460)	451)	(103)
Income tax	-)	-)	-)	-)	-)	-)	-)	-)
Net (loss) income	(783)	(3,371)	(1,271)	(1,508)	(891)	(2,460)	451)	(103)
(Loss) income per share - basic	(0.00)	(0.02)	(0.01)	(0.01)	(0.01)	(0.02)	0.00)	(0.00)
(Loss) income per share - diluted	(0.00)	(0.02)	(0.01)	(0.01)	(0.01)	(0.02)	0.00)	(0.00)
Adjusted net loss(1)	(1,288)	(2,717)	(1,837)	(1,551)	(1,881)	(2,305)	(340)	(706)
Capital expenditures	5,714)	10,072)	4,516)	3,489)	2,066)	4,499)	15)	4)
Cash flow provided by (used in)
Operating activities(1)	1,099)	906)	(1,551)	(2,279)	(1,141)	(2,739)	(880)	(779)

1. Adjusted net loss and cash flow used in operating activities are non-GAAP measure. Adjusted net loss represents earnings before impairment expense and write-offs. Cash flow used in operating activities represents cash flow from operating activities before changes in working capital. See non-GAAP measures for further explanation.

For the quarter ended March 31, 2024, the Company reported no revenue, $0.0 million in the quarter ended December 31, 2023 and no revenue in the quarter ended March 31, 2023. During this period, the Company was engaged in exploration and preliminary evaluation work on properties in Egypt. The BED 1-7well is currently undergoing a buildup assessment of the reservoir pressure to determine the depletion and potential of the well and possible workover in combination with T100 completion works and is not currently producing. Operating costs for the latest quarter were $0.1 million, down from $0.5 million in the quarter ended December 31, 2023, and no costs in March 2023. The Company has produced oil from the BED 1-7 well and to date has produced approximately 10,000 bbls.

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The net loss before tax for the quarter ended March 31, 2024, was $0.8 million, a decrease from $3.4 million in the quarter ended December 31, 2023, and a slight decrease from a net loss of $0.9 million in the quarter ended March 31, 2023. The adjusted net loss for the quarter ended March 31, 2024 was $1.3 million, lower than the $2.7 million in the quarter ended December 31, 2023 and $1.9 million in the quarter ended March 31, 2023. The decrease in net loss is attributed primarily to a decrease in general and administrative expenses to $1.4 million, down from $2.0 million in the quarter ended December 31, 2023, and changes in other financial metrics. Specifically, there was a decrease in stock- based compensation to $0.2 million from $0.3 million in the quarter ended December 31, 2023, and an increase in foreign exchange gain to $0.3 million from a loss of $0.1 million. Additionally, compared to the quarter ended March 31, 2023, stock-based compensation decreased $0.5 million, with an increase in foreign exchange gain of $0.4 million, up from a loss.

General and Administrative Expenses ("G&A")

	Three months ended
	Mar 31,	Dec 31,	Mar 31,
Canadian ('000)	2024	2023	2023
Consulting fees	140	156	71
Director fees	29	29	29
Filing, listing and transfer agent	24	66	52
Insurance	14	38	45
Office and administration	156	324	219
Professional fees	202	227	184
Rent	61	35	14
Shareholder relations and communications	135	327	147
Travel	172	223	213
Wages and salaries	493	579	404
G&A expenses	1,426	2,004	1,378

General and administrative costs decreased to $1.4 million for the quarter ended March 31, 2024, from $2.0 million for the quarter ended December 31, 2023. The decrease is due to a decrease of office and administration of $0.2 million, which is partly from the decreased activity in the operations in Egypt, additional shareholder relations and communications of $0.2 million which includes business development on a new project in Egypt in the period ended December 31, 2023 and a decrease in wages and salaries of $0.1 million.

General and administrative costs remained consistent at $1.4 million for the quarter ended March 31, 2024, and the same quarter in 2023 at $1.4. The change of $0.05 resulted from minor changes up and down across the accounts.

Stock-based Compensation

	Three months ended
	Mar 31,	Dec 31,	Mar 31,
Canadian ('000)	2024	2023	2023
Stock-based compensation	240	341	683

Stock-based compensation costs are non-cash charges, which reflect the theoretical estimated value of stock options granted. The Company applies the Black-Scholes option pricing model using the closing market prices on the grant dates and to date the Company has calculated option benefits using a volatility ratio and a risk-free interest rate. The theoretical fair value of the option benefit is amortized on a diminishing basis over the vesting period of the options, generally being a minimum of two years.

In the quarter ended March 31, 2024, the Company did not grant or exercise any stock options.

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Stock-based compensation decreased to $0.24 million in the quarter ended March 31, 2024, compared $0.34 million for the quarter ended December 31, 2023. The decrease in total stock-based compensation costs is due to no options granted in the current period.

Stock-based compensation decreased to $0.24 million in the quarter ended March 31, 2024, compared $0.68 million for the quarter ended March 31, 2023. The decrease in total stock-based compensation costs is due to no options granted in the period.

Depletion, Depreciation and Accretion ("DD&A")

	Three months ended
	Mar 31,	Dec 31,	Mar 31,
Canadian ('000)	2024	2023	2023
Depletion, depreciation and accretion	57	65	43

DD&A expenses slightly decreased for the quarter ended March 31, 2024 to $0.57 million compared with $0.65 million for the quarter ended December 31, 2023.

DD&A expenses slightly increased for the quarter ended March 31, 2024 to $0.57 million compared with $0.43 million for the quarter ended March 31, 2023.

Foreign Exchange Gain (Loss)

	Three months ended
	Mar 31,	Dec 31,	Mar 31,
Canadian ('000)	2024	2023	2023
Foreign exchange gain (loss)	338	(60)	(46)

The foreign exchange gain (loss) for the quarter ended March 31, 2024, was a result of movement of the USD against the NZD and CDN.

Net Loss Before Income Tax and Net Loss After Tax

	Three months ended
	Mar 31,	Dec 31,	Mar 31,
Canadian ('000)	2024	2023	2023
Net loss before tax	(783)	(3,371)	(891)
Income tax	-)	-)	-)
Net loss after tax	(783)	(3,371)	(891)
Loss per share - basic and diluted ($)	(0.00)	(0.02)	(0.01)
Cash Flow
	Three months ended
	Mar 31,	Dec 31,	Mar 31,
Canadian ('000)	2024	2023	2023
Operating cash flow (1)	(872)	(1,979)	(1,179)
Cash used in operating activities	1,099)	906)	(1,141)
Operating cash flow per share - basic and diluted ($)	(0.00)	(0.01)	(0.01)

1. Operating cash flow is a non-GAAP measure.It represents cash flow from operating activities before changes in working capital.See non- GAAP measures for further explanation.

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Operating cash outflow decreased to $0.9 million for the quarter ended March 31, 2024, compared to $1.2 million for the quarter ended March 31, 2023.

CAPITAL EXPENDITURES

Capital expenditures consisted of exploration and evaluation assets of $5.7 million and capital leases, computer and office equipment and leasehold improvements of $nil for the quarter ended March 31, 2024. Capital expenditures consisted of exploration and evaluation assets of $17.9 million and capital leases, office equipment and leasehold improvements of $0.2 million for the quarter ended December 31, 2023.

FUTURE CAPITAL EXPENDITURES

The Company had the following commitments for capital expenditure at March 31, 2024:

		Less than	Two to	More than
Contractual Obligations Canadian ('000)	Total	One Year	Five Years	Five Years
Operating leases (1)	464	226	238	-
Other long-term obligations (2)	7,991	-	7,991	-
Total contractual obligations	8,455	226	8,229	-

1. The Company has commitments related to corporate office leases signed in Vancouver and Calgary, Canada and a lease for apartments in Egypt .
2. The Company has commitements under it's PSA related to exploration and evaluation in the BED-1 fiield in the Western Desert of Egypt.

The Company expects to manage its working capital on hand to meet its commitments in the PSA and any future selective development and exploration opportunities. Commitments and work programs are subject to change as dictated by cashflow. The Company is also obligated under the PSA to provide equal to US$50,000 at the beginning of each financial year towards training technology transfer.

LIQUIDITY AND CAPITAL RESOURCES

	Three months	Nine months
	ended	ended
Canadian ('000)	Mar 31, 2024	Dec 31, 2023
Cash and cash equivalents	12,734	16,436
Working capital	9,431	12,237
Contractual obligations, next twelve months	226	233
Revenue	-	586
Cashflow provided by (used in) operating activities	1,099	(2,924)

As of the date of this report, the Company is monitoring its funding requirements and may adjust its current operations to ensure anticipated cash flow from the recent financings, New Zealand royalty, and oil sales allows the Company to meet its commitments for the next twelve months. The Company has cash available, and it continues to monitor cash on hand and cash flow. TAG will focus on the recently signed PSA and continue to pursue opportunities with the goal of acquiring concessions leading to exploration, productions, and reserves.

The Company may require additional financing in the event of adding any additional material commitments or any additional agreements or acquisitions.

NON-GAAP MEASURES

The Company uses certain terms for measurement within this MD&A that do not have standardized meanings prescribed by generally accepted accounting principles ("GAAP"), including IFRS, and these measurements may differ from other companies and accordingly may not be comparable to measures used by other companies.

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