Epsilon Energy Ltd.

Short term investments are highly liquid investments with original maturities between three and twelve months. The Company’s short term investments consist of US Treasury Bills. These investments are classified as available-for-sale. Available-for-sale short term investments are reported at fair value in the Consolidated Balance Sheets. Unrealized gains and losses are excluded from earnings and are reported in Accumulated other comprehensive income in the Consolidated Statements of Operations and Comprehensive Income.

As of June 30, 2025 and December 31, 2024, the Company hadno short term investments.

During the six months ended June 30, 2024, the Company sold securities with a carrying amount of $14,989,595

for total proceeds of $15,336,930. The realized gains on these sales were $347,335. An additional $7,780,000 of securities reached maturity with total realized gains of $234,248. During the three months ended June 30, 2024, the Company sold securities with a carrying amount of $7,986,472 for total proceeds of $8,177,645. The realized gains on these sales were $191,173. An additional $4,145,000 of securities reached maturity with total realized gains of $99,215. The realized gains are included in other income in the consolidated Statements of Operations and Comprehensive Income.