Q3 2026 Operations Update

The MEX-GOL, SV and VAS production licences have remained suspended and, accordingly, there was no production from those licences during the third quarter, nor in the period since then to present. Further details on the suspensions are set out below.

Operations

At the SC exploration licence area, development planning is continuing, including planning for the drilling of the SC-5 exploration well, and for the installation of new gas processing facilities and other surface infrastructure, as well as assessing the feasibility of an alternative option of a connection to existing gas processing facilities. Additionally, temporary gathering, separation and compression equipment has been installed at the SC-4 well site to enable gas and condensate from this well to be separated, the gas compressed at site, and then trucked to the Company’s existing gas processing facilities at its MEX-GOL and SV fields for treatment and sale.

In general, the operating environment in Ukraine remains very challenging. The Company continues to be cautious and vigilant with its ongoing activities and is taking the appropriate measures available to protect and safeguard its personnel and business. The safety and well-being of its personnel and contractors is paramount, and the Company will continue to take all possible precautionary measures to ensure their safety.

Cash Holdings

At 30 September 2026, the Company’s cash resources were approximately US$86.9 million, comprised of US$73.9 million equivalent in Ukrainian Hryvnia and the balance of US$13.0 million equivalent in a combination of US Dollars, British Pounds and Euros.

Suspension of MEX-GOL, SV and VAS Licences

As announced on 11 October 2024, a Decree of the President of Ukraine numbered 698/2024 and dated 8 October 2024 (the “Decree”), made pursuant to a resolution of the National Security and Defence Council of Ukraine dated 8 October 2024, entitled “On application of personal special economic and other restrictive measures (sanctions)”, was implemented, pursuant to which personal special economic and other restrictive measures (sanctions) were applied to, inter alia, Proteas Trustee Services Limited and Proteas Trustees Limited (as well as their respective shareholders Andreas Sophocleous and Konstantina Alkiviadous), Elena Iona and Afrodite Loukiadou, who are trustees of the Cypriot Trusts (the “Trustees”) that hold a major indirect shareholding interest in the Company.

As a consequence of such registrations in the State Register, the SGSS recognises the Trustees as the ultimate beneficial owners of the MEX-GOL, SV and VAS production licences. As a result, the SGSS issued the suspension orders dated 15 November 2024 in respect of each of the MEX-GOL, SV and VAS production licences for a period of 10 years effective from 8 October 2024 (being the date of the Decree). Following the issue of the suspension orders, the Company commenced legal proceedings in Ukraine to challenge such orders, and within such proceedings, the Company obtained interim rulings (the “Interim Rulings”) to lift such suspension orders pending determination of the substantive issues in the legal proceedings. However, the SGSS appealed against the Interim Rulings, and such Interim Rulings were lifted on 22 January 2025 in the case of the MEX-GOL and SV licences, and on 27 February 2025 in the case of the VAS licence. As a result, the suspension orders in respect of the MEX-GOL, SV and VAS licences were reinstated, and the Company ceased all field operations on those licences immediately following the respective appeal decisions.

In light of these circumstances, as announced on 27 August 2025, the Company issued arbitration proceedings against Ukraine under the Agreement Between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Ukraine for the Promotion and Reciprocal Protection of Investments (the “Treaty”). The Treaty is an international treaty designed to protect the rights of investors from the United Kingdom or Ukraine who make investments in the other country. The arbitration proceedings have been registered by the International Centre for Settlement of Investment Disputes (“ICSID”), and within such proceedings, the Company is claiming monetary damages for the loss and damage it has suffered as a result of Ukraine’s actions, as well as the reinstatement of its MEX-GOL, SV and VAS licences for the remainder of their respective durations, and its costs. In the proceedings, the Group made an application for provisional measures, which led to the Arbitration Tribunal’s Order dated 26 June 2026, under which each of Ukraine and the Group are obliged to notify the Tribunal and the other party by way of four days written notice of any new proceedings or any material change in any existing proceedings which might affect the Group’s rights in relation to its Group companies or the integrity of the arbitration. Further details are set out in the Company’s announcement dated 23 July 2026.

The Company will continue such legal proceedings and other initiatives, in consultation with its external legal and other advisers, so as to seek to mitigate the risks associated with the regulatory actions of the Ukrainian authorities.

Oleksiy Zayets, CEO, commented: “The ongoing suspensions of our MEX-GOL, SV and VAS licences, as well as the war in Ukraine, remain persistent and significant challenges that are adversely affecting the Group’s business. Nevertheless, we have made some progress with the compression initiative at the SC exploration licence area, which should enable the re-commencement of some production. The lack of progress towards a resolution of the regulatory situation is disappointing, and has meant that it has been necessary to continue to take other steps to protect our business and assets, including through our arbitration proceedings under the bilateral investment treaty between the United Kingdom and Ukraine.”