ICC Arbitration proceedings against ETAP

Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA), the international energy production and development company, announces that it has initiated an ICC (International Chamber of Commerce) arbitration case seated in Paris, France against Entreprise Tunisienne d'Activités Pétrolières ("ETAP"), the national oil company of the Republic of Tunisia (the "ICC Arbitration").

Background

On July 10, 2023, the Company announced that it had successfully obtained a "conservative seizure" for an amount equivalent to approximately US$6.5 million deposited in a bank account under the name of ETAP in Switzerland (the "Conservative Seizure").

The Conservative Seizure was granted in view of ETAP's failure to comply with its contractual obligations and pay for oil produced and sold by one of the Company's subsidiaries.

The ICC Arbitration has been commenced by the Company following the Conservative Seizure.

ICSID Arbitration

Zenith had first announced the submission of a request for arbitration against the Republic of Tunisia before the International Centre for Settlement of Investment Disputes in Washington DC ("ICSID Arbitration") on June 7, 2023.

The request for damages in the ICSID Arbitration, following various breaches of bilateral trades agreements made by the Republic of Tunisia to the detriment of Zenith and its subsidiaries, is for a total cumulative claimed amount of at least US$48 million.

The ICSID Arbitration and the ICC Arbitration are two separate arbitration proceedings.

Andrea Cattaneo, Chief Executive Officer, commented:

"It is deeply regrettable that Zenith Energy has been compelled to initiate a second arbitration and conduct conservative seizures against ETAP following failures to satisfy contractually binding payments for oil production.

Shareholders can take comfort in the decisive action the Board has taken to ensure that Zenith's interests are upheld."