Update on ICC-2 Annulment Application

11 Mar 2026 01:05 CET

March 11, 2026

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Update on ICC-2 Annulment Application

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA; XSAT: ZENA
SDR), the international energy production and development company, is pleased to
provide an update regarding the application for annulment (the "Annulment
Application") of the ICC-2 Arbitration (the "ICC-2 Arbitration") before the
Swiss Federal Supreme Court in Lausanne, Switzerland (the “Swiss Court”)
submitted by its wholly owned subsidiary, Canadian North Africa Oil and Gas
Limited (“CNAOG”).

The Annulment application was submitted by CNAOG in September 2025 and
procedurally accepted by the Swiss Court in October 2025.

The Company confirms that the Republic of Tunisia failed to submit its response
to the Annulment Application within the required procedural timeframe set out by
the Swiss Court and has instead sent a submission to the Swiss Court contesting
its jurisdiction. Further, the Republic of Tunisia has advanced a legally
unfounded and unreasonable argument that the Annulment Application should be
adjudicated by a Court of Appeal seated within the Republic of Tunisia.

The Company will provide an update once further information becomes available,
in full compliance with procedural guidelines.

Background

CNAOG initiated the ICC-2 Arbitration against the Republic of Tunisia, as
announced in December 2023, following a series of arbitrary actions and
obstructions undertaken by the Republic of Tunisia, leading to the arbitrary
termination of the SLK concession.

Inter alia, these included:

• CNAOG's lost production revenue and associated profitability, during a period
of high energy prices, from the SLK Concession until its initial expiry in
December 2022.

• The volume of crude oil produced from the SLK Concession and allocated to and
received by CNAOG upon the completion of the acquisition.

• The value of the 45% interest in the renewal of the SLK Concession,
representing a breach of CNAOG's right to renew its previously existing 22.5%
interest in SLK, as well as the 22.5% interest held by Kuwait Foreign Petroleum
Exploration Company, which relinquished its interest in the SLK Concession
before its initial expiry.

• CNAOG filed claims in the amount of approximately US$130 million following
calculations made by third-party experts.

Application for Annulment

Under the Swiss procedural rules, the Company applied for annulment of an
arbitral award for, inter alia, cases of serious procedural irregularities.

As previously disclosed on September 15, 2025, following the ICC-2 Award, the
Company became aware of new evidence indicating previously undisclosed
connections between two members of the ICC-2 Arbitral Tribunal, including its
Chair, Ms. Cecilia Carrara, and the Republic of Tunisia.

These undisclosed connections and the procedural irregularities, both during the
proceedings and reflected within the ICC-2 Award, constitute the core foundation
for the Annulment Application.

The Company engaged Charles Russell Speechlys Geneva, led by Pierre Bydzovsky,
to prepare and file the Annulment Application.

The Swiss Court usually renders decisions on annulment applications within 6 to
9 months from submission.

Andrea Cattaneo, Chief Executive Officer of Zenith Energy, commented:

“Despite the historically low success rate of annulment applications, we believe
that the extent to which the ICC-2 Arbitration was flawed and procedurally
irregular, culminating in an Arbitral Tribunal issuing a 70-page arbitral award
containing only six pages of reasoning and dismissing claims totalling US$130
million after 32 months of proceedings, is both deeply surprising and
disappointing. This occurred after the ICC-2 Arbitral Tribunal refused to apply
the applicable legal rules and contradicted the prior arbitral award in ICC-1.

These matters are further compounded by evidence collected and presented in the
Annulment Application, which casts significant doubt on the impartiality of two
members of the ICC-2 Arbitral Tribunal, including its Chair, Ms Cecilia Carrara.
The Chair of the ICC-2 Arbitral Tribunal and another member of the ICC-2
Arbitral Tribunal failed to disclose connections giving rise to a serious
conflict of interest with the Republic of Tunisia.

Moreover, the fact that the Republic of Tunisia has failed to submit its
response within the required timeframe and has instead challenged the authority
of the Swiss Court, asserting that the Annulment Application should be heard in
Tunisia, represents yet another example of Tunisia’s consistent efforts to
escape justice, as evidenced, amongst other things, by its failure to date to
pay any procedural expenses associated with the arbitrations, all of which have
been borne by Zenith subsidiaries, including CNAOG. This is emblematic of an
ongoing pattern of behaviour characterised by dilatory tactics, non-payment, and
attempts to inflict as much financial damage as possible on Zenith’s
subsidiaries to hinder their ability to pursue their claims.

Our legal team has worked with dedication and perseverance to present the merits
of the ICC-2 Annulment Application clearly and comprehensively. We look ahead
with confidence that the Swiss Court will give due consideration to CNAOG’s
submissions.”

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 on the
Spotlight Stock Market in Sweden (XSAT: ZENA SDR).

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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