Update on Legal Claim against SMP

04 Oct 2024 09:51 CEST

October 4, 2024

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Update on Legal Claim against SMP

Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA; OTCQB: ZENAF), the listed international
energy production and development company, is pleased to provide an update
regarding the legal claim being brought before the Paris Commercial Court (the
“Court”) by its fully owned subsidiary, Anglo African Oil & Gas Congo S.A.U
("AAOGC") against SMP Energies (hereafter "SMP", formerly Société de Maintenance
Pétrolière - SMP) the rig contractor that performed drilling services in wells
TLP-103 and TLP-103C of the Tilapia oilfield during 2018-2019.

On February 17, 2023, Zenith announced that it had increased the claimed amount
for SMP's failures during drilling activities to US$9 million in consideration
of the significant commercial damages suffered by AAOGC, specifically the
impossibility, as a direct result, to begin production activities from the
Tilapia oilfield.

The Company believes that the Claim launched by AAOGC has merit because of the
significant evidence collected at the time to substantiate its position. AAOGC
has since intensified its legal activities in support of the Claim by
commissioning third-party expert reports.

As announced on July 3, 2023, the Court rejected SMP’s request for a stay of
proceedings in France due to new proceedings having been initiated in the
Republic of Congo, stating that SMP's request contained "all the characteristics
of a dilatory request", and ordered SMP to pay an amount of EUR 30,000 to AAOGC
as procedural costs (the “Procedural Costs”).

SMP unsuccessfully appealed the decision of the Court. As a result, the Company
is pleased to confirm that the Paris Court of Appeal upheld the decision of the
Paris Commercial Court and that AAOGC has now received payment in the amount of
approximately EUR 30,000.

The Company has appointed Charles Russell Speechlys as new legal counsel before
the Court in connection with the legal claim against SMP. The final submission
for court pleadings is expected to take place on October 25, 2024.

The final pleadings of the case, resulting in a potential positive ruling in
favour of AAOGC by the Court, are expected to now take place on or around March
2025.

Andrea Cattaneo, Chief Executive of Zenith, commented:

“We are pleased by the decision of the Appeal Court, confirming the dilatory
conduct of SMP who has made every effort to delay and protract legal proceedings
to the detriment of AAOGC.

The Company will now proceed in presenting its final submissions with the aid of
expert technical consultants to maximise the possibilities of a favourable
decision that will compensate AAOGC for the very significant commercial damages
it has suffered because of failures ascribable to SMP.”

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

Market Abuse Regulation (MAR) Disclosure

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.

More information:
Access the news on Oslo Bors NewsWeb site

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