NewMed Energy Partnership : Dismissal of Claims regarding the Determination of the Investment Recovery Date in respect of the Tamar Project

NewMed Energy - Limited Partnership

(the "Partnership)

Re: Dismissal of Claims regarding the Determination of the Investment Recovery

Date in respect of the Tamar Project

Further to Section 7.25.6 of the Partnership's periodic report for 2022, as released on March 28, 2023 (Reference No. 2023-01-033096), Section 7(d) of the update to Chapter A in the Partnership's Q1/2023 report, as released on May 11, 2023 (Reference No. 2023-01-050346), and Section 14(c) of the update to Chapter A in the Partnership's Q2/2023 report, as released on August 21, 2023 (Reference No. 2023-01-095937), regarding a suit brought with the Tel Aviv District Court (Economic Department) by the supervisors on behalf of the holders of participation units of the Partnership against the Partnership, the General Partner and the royalty interest owners, which consist of Delek Group, Delek Energy Systems Ltd. and Tomer Energy Royalties (2012) Ltd. (formerly Delek Royalties (2012) Ltd.) (the "Royalty Interest Owners"), and a countersuit brought by the Royalty Interest Owners against the Partnership (the "Claims"), and all in connection with the determination of the "investment recovery date" in respect of the Tamar project, and upon the parties' consent to defer to a mediation proceeding on the matter, the Partnership respectfully informs that on 21 December 2023, per the parties' request, the Court ordered the dismissal of the Claims with no order for costs in view of mutual agreements reached by and between the parties, under which, inter alia, the parties confirmed the original calculation that had been made by the Partnership (subject to the correction of an error with respect to retirement costs attributed to the Partnership, for which a provision of approx. $1.6 million had been made in the Company's books as early as 2018). Furthermore, the Royalty Interest Owners and the Partnership have confirmed that the principles according to which the investment recovery date had been calculated for the Tamar project would apply (after certain adjustments as specified within the mutual agreements) also in relation to the calculation of the investment recovery date in respect of the Leviathan project.

Sincerely,

NewMed Energy Management Ltd.

the General Partner of NewMed Energy - Limited Partnership

By: Yossi Abu, CEO

And Sari Singer Kaufman, General Counsel, Senior VP