Update on Arbitrations against the Republic of Tunisia

02 Oct 2024 23:25 CEST

October 2, 2024

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Update on Arbitrations against the Republic of Tunisia

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA; OTCQB:
ZENAF), the listed international energy production and development company, is
pleased to provide an update regarding the international arbitration proceedings
it has initiated against the Republic of Tunisia and ETAP, the national company
of the Republic of Tunisia.

International Centre for Settlement of Investment Disputes (“ICSID”) arbitration
against the Republic of Tunisia held in Washington, D.C. (the “ICSID
Arbitration”).

Zenith Energy Africa Ltd. ("ZEAL"), Zenith Overseas Assets Ltd. ("ZOAL") and
Compagnie du Désert Ltd. ("CDD"), all fully owned subsidiaries of Zenith
(collectively, the “Investors”), submitted claims in June 2023 against the
Republic of Tunisia, brought under the United Kingdom - Tunisia bilateral
investment treaty under the auspices of the ICSID.

The ICSID Arbitration was launched following a series of actions undertaken by
the Republic of Tunisia to the material detriment of Zenith’s subsidiaries
including, inter alia, unreasonable and arbitrary obstructions in relation,
primarily, to the development of the Sidi El Kilani and Ezzaouia concessions.

The language of the ICSID Arbitration is French. As a result, many of the legal
advisors and expert consultants appointed by Zenith are based in Paris, France.

In consideration of the additional breaches committed by the Republic of Tunisia
to the material detriment of the Investors since the commencement of the ICSID
Arbitration, the Investors have appointed:

• Organisation Conseil Audit (“OCA”), an internationally recognised accountancy
firm specialised in the provision of quantum analysis expertise in connection
with arbitrations, to calculate a revised claim amount to be submitted as part
of the ICSID Arbitration.

• Chapman Hydrogen and Petroleum Engineering Ltd. (“Chapman”) a professional
engineering and reserves evaluating firm based in Calgary, the epicenter of the
energy industry in Canada, with more than 50 years of comprehensive experience
in the oil and gas industry.

OCA and Chapman have determined a revised amount of US$503 million as the total
claimed amount of the ICSID Arbitration, reflecting the damages sustained by the
Investors (the “Claimed Amount”).

The hearings for the ICSID Arbitration are expected to take place during
December 2025.

The Investors are represented by Simon Le Wita, a Paris-based Partner of Charles
Russell Speechlys, an internationally recognised law firm, and Clay Arbitration,
an independent boutique law firm specialised in arbitrations founded by
Professor Thomas Clay, a renowned academic and lawyer who is currently Professor
at Sorbonne Law School, where he teaches Arbitration Law and Alternative Dispute
Resolution, as an additional co-counsel to further strengthen Zenith’s legal
team.

The Investors were informed on March 18, 2024 that Anima Dispute Resolution, an
international law firm specialised in international arbitrations appointed by
the Republic of Tunisia as specialist counsel for the ICSID Arbitration, had
resigned from their mandate with immediate effect.


ICC Arbitration proceedings against ETAP (the “ICC 1 Arbitration”)

The Company can confirm that the final hearings of the ICC 1 Arbitration
initiated against Entreprise Tunisienne d'Activités Pétrolières ("ETAP"), the
national oil company of the Republic of Tunisia, were held in Paris on April 26
and 27, 2024.

The decision of the ICC 1 Arbitration is expected to be published by December
2024.

ICC Arbitration for SLK against the Republic of Tunisia - ("ICC 2 Arbitration")

The Company has recently filed additional pleadings and supporting documents in
connection with the ongoing ICC 2 Arbitration against the Republic of Tunisia.

Zenith's fully owned subsidiary, Canadian North Africa Oil and Gas Limited
("CNAOG") initiated ICC (International Chamber of Commerce) arbitration
proceedings against the Republic of Tunisia, as announced in December 2023.

The originally claimed amount, US$85.8 million, has been increased to US$130
million following calculations performed by the Company’s advisers, specifically
Chapman, regarding the quantifiable damages sustained by CNAOG.

A decision, resulting in a possible award favourable to CNAOG, is expected to be
made during the first quarter of 2025.

Andrea Cattaneo, Chief Executive Officer, commented:

“We are making steady progress on all fronts in the arbitrations commenced
against the Republic of Tunisia. The total cumulative amount claimed across the
three pending arbitrations now stands at US$639.7 million, evidencing the scale
of the damages inflicted upon Zenith and its shareholders by the Tunisian
authorities.

We are hopeful that the outcome of the ICC 1 arbitration, due by the close of
the year, will provide concrete confirmation of the validity of our position as
we direct our efforts towards the much larger ICC 2 and ICSID arbitrations, due
to be concluded in 2025 and 2026 respectively.”

Further Information:
Zenith Energy Ltd

Andrea Cattaneo, Chief Executive Officer
Tel: +1 (587) 315 1279
E: info@zenithenergy.ca



Notes to Editors:
Zenith Energy Ltd. is a revenue generating, independent energy company with
energy production, exploration and development assets in North Africa, the US
and Europe. The Company is listed on the London Stock Exchange Main Market (LSE:
ZEN), the Euronext Growth of the Oslo Stock Exchange (OSE: ZENA) and the Venture
Market of the OTCQB (OTCQB: ZENAF).
Zenith's strategic focus is on pursuing development opportunities through the
development of proven revenue generating energy production assets, as well as
low-risk exploration activities in assets with existing production.

For more information, please visit: www.zenithenergy.ca
Twitter: @zenithenergyltd
LinkedIn: https://bit.ly/3A5PRJb


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The information included in this announcement is defined as inside information
pursuant to MAR article 7 and is publicly disclosed in accordance with MAR
article 17 and section 5 -12 of the Norwegian Securities Trading Act. The
announcement is made by the contact person.

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