Court decision in ICSID Arbitration against the Republic of Tunisia

27 Dec 2024 00:11 CET

December 27, 2024

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Court decision in ICSID Arbitration against the Republic of Tunisia

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA; OTC PINK:
ZENAF), the listed international energy production and development company, is
pleased to announce that it has now received the latest decision of the Arbitral
Tribunal of the International Centre for Settlement of Investment Disputes
("ICSID") arbitration against the Republic of Tunisia held in Washington, D.C.
(the "ICSID Arbitration") initiated by the Company’s fully owned subsidiaries,
Zenith Energy Africa Ltd. (British), Zenith Overseas Assets Ltd. (British),
Compagnie du Désert Ltd. (British) (collectively, “Claimants”) against the
Republic of Tunisia as Respondent (the “Respondent”).

Zenith's legal counsel in the ICSID Arbitration is Clay Arbitration and Charles
Russell Speechlys (Paris), the same legal team that advised the Company in
connection with the successful ICC-1 Arbitration.

This language of the ICSID Arbitration is French. The ICSID, in French language,
is named ‘Centre Internationale pour le Réglement des Differents relatifs aux
investissements (“CIRDI”) and is registered under No. ARB/23/18.

ICSID (CIRDI) cases are partially public and information updates can be
visualised using the following official webpage, using as reference Arb/23/18,
link:
https://icsid.worldbank.org/cases/case-database/case-detail?CaseNo=ARB/23/18).

Decision

On December 23, 2024, the ICSID Arbitral Tribunal issued a decision in
connection with the Respondent’s request to address objections to jurisdiction
as a preliminary question (“Bifurcation”).

The Respondent’s request for Bifurcation was fully rejected in very severe terms
by the ICSID Arbitral Tribunal.
The Arbitral Tribunal’s Decision has dismissed the Respondent’s application in
its entirety and has reserved all other matters, including those relating to
costs, for a subsequent order, decision or award.

The Decision has also ordered the Claimants and Respondent to consult and agree
on a shorter procedural timetable and to communicate this to the Tribunal no
later than January 20, 2025.

For background, the ICSID Arbitration was initiated by the Claimants in June
2023 following the Republic of Tunisia’s failure to comply with the terms of the
Investment Treaty BIT United Kingdom of Great Britain and Northern Ireland -
Tunisia signed in 1989.

The amount claimed for the ICSID Arbitration, determined by a panel of
international quantum experts appointed by the Company, is for a total principal
amount of US$503 million.

Andrea Cattaneo, Chief Executive of Zenith, commented:

“Progress in respect of our international legal arbitrations against the
Republic of Tunisia, with claims totalling approximately US$639.7 million,
continues without pause.

We are pleased by the fact that the decisions for both the ICC-2 Arbitration,
expected during the summer of 2025, and the ICSID Arbitration, expected during
the first two quarters of 2026, are no longer in the distant future and are
increasingly within sight.

The Company will always seek to update investors to the extent it is permitted
under the rules of the ICC and ICSID, as well as in full conformity with
applicable stock exchange regulations.

Following the recent favourable decision achieved in the ICC-1 Arbitration, it
is apparent that there is a linear and effective pathway by which Zenith and its
shareholders can be compensated for the very significant damages suffered
because of the arbitrary conduct of the Tunisian authorities.

We are particularly grateful to our very capable legal team, comprised by
Professor Thomas Clay (Clay Arbitration) and Mr. Simon Le Wita (Charles Russell
Speechlys CRS - Paris) who have been instrumental in presenting the merit and
validity of our position.”

Calendar
• ICSID procedural timetable shall be known before 20 January 2025.
• The final Court hearing of the ICC-2 Arbitration is expected by the close of
February 2025, with the final decision (the “Award”) expected during the summer
of 2025.






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 Pink
Markets of the OTC (OTC PINK: 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:
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