US ENERGY CORP

As previously announced, on December 12, 2024, U.S. Energy Corp. (the “Company”, “we” and “us”), and our wholly-owned subsidiary, New Horizon Resources LLC (“New Horizon”), entered into a Purchase and Sale Agreement (the “Sale Agreement”), with 84 Resources Holdings, LLC (“84 Resources”). Pursuant to the Sale Agreement, we agreed to sell 84 Resources primarily operated oil and gas producing properties, including all oil and gas leases, wells (122), surface rights, rights of ways, personal property, permits, contracts, records and facilities, associated therewith located primarily in Liberty and Henderson Counties, Texas (the “Property”), in consideration for $6.825 million, subject to customary adjustments (the “Purchase Price” and the “Sale”).

On December 31, 2024, the Company completed the Sale, and sold the Property to 84 Resources in consideration for the Purchase Price, which is subject to certain adjustments that will be finalized following the closing pursuant to the Purchase Agreement.