March 20, 2024

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Update on Arbitrations against Republic of Tunisia and ETAP 

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA; OTCQB:
ZENAF), the listed international energy production and development company,
provides an update regarding the international arbitration proceedings it has
initiated against the Republic of Tunisia and ETAP, the national oil company of
the Republic of Tunisia. 

ICC Arbitration against ETAP - ("ICC Arbitration 1")

As last announced on November 1, 2023, Ecumed Petroleum Zarzis Ltd ("EPZ"), a
fully owned subsidiary of Zenith registered in Barbados, initiated International
Chamber of Commerce (ICC) Arbitration proceedings, seated in Paris, against
Entreprise Tunisienne d'Activités Pétrolières ("ETAP"), the national oil company
of the Republic of Tunisia. 
ICC Arbitration 1 was commenced following ETAP's failure to comply with its
contractual obligations by not paying for oil produced and sold by EPZ in
Tunisia. 

On November 29, 2023, the Company announced that the Arbitral Tribunal had
rejected ETAP's request to include the Republic of Tunisia as co-defendant and
ordered ETAP to pay approximately EUR 120,000 in costs. 
The Arbitral Tribunal for ICC Arbitration 1 is expected to convene during the
month of April 2024. A decision, resulting in a potential award favourable to
EPZ, is expected to be made by the close of 2024. 
The ICC Arbitration 1 claim is in the amount of approximately US$7.5 million
including accrued interest resulting from late payment.  

ICC Arbitration for SLK against the Republic of Tunisia - ("CNAOG ICC
Arbitration")

As last announced on December 6, 2023, Zenith's fully owned company, Canadian
North Africa Oil and Gas Limited ("CNAOG") initiated ICC (International Chamber
of Commerce) Arbitration proceedings, seated in Geneva, against the Republic of
Tunisia. 

Zenith has presented a claim for damages in the amount of US$85.8 million in
connection with the CNAOG ICC Arbitration.
 
The claimed amount was determined by a third-party expert consultant in
consideration of the following:

o	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.
o	The volume of crude oil produced from the SLK Concession and allocated to and
received by CNAOG upon the completion of the acquisition.
o	Unpaid invoices for oil production by ETAP, the national oil company of
Tunisia.
o	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 K.S.C.C's subsidiary, which relinquished its interest in the
SLK Concession before its initial expiry.

A decision, resulting in a possible award favourable to CNAOG, is expected to be
made during the first quarter of 2025. 

ICSID Arbitration against the Republic of Tunisia - ("ICSID Arbitration") 
 
As announced on June 7, 2023, Zenith's fully owned subsidiaries (the
"Investors") submitted a request for Arbitration before the International Centre
for Settlement of Investment Disputes in Washington DC with a total cumulative
claimed amount of at least US$48 million.  
 
The ICSID Arbitration was launched following a series of actions undertaken by
the Republic of Tunisia to the material detriment of the Investors including,
inter alia, unreasonable and arbitrary obstructions in relation, primarily, to
the development of the Sidi El Kilani and Ezzaouia concessions.
 
Following certain additional breaches committed by the Republic of Tunisia to
the material detriment of the Investors since the commencement of the ICSID
Arbitration, the Investors are, in consultation with expert third-party
consultants, determining a revised increased claimed amount to be submitted. 

The Investors were informed on March 18, 2024, that Anima Dispute Resolution, an
international law firm dedicated to international arbitrations appointed by the
Republic of Tunisia as specialist counsel, had resigned with immediate effect. 

The ICSID Arbitration is expected to conclude during 2027.


Andrea Cattaneo, Chief Executive Officer, commented:   

"The very significant damage the Company, as well as local employees, have
suffered because of the actions of the Tunisian Ministry of Hydrocarbons cannot
be overstated.  

One of the primary results of these unjustified actions has been to deprive the
Company of the value it had created by way of the acquisitions commenced in
2021, when oil prices had been severely impacted by the COVID-19 pandemic, and
Zenith had invested significant financial resources in Tunisia in good faith
with the full support and knowledge of the Ministry of Hydrocarbons. 

The severe financial loss brought about by the arbitrary deprivation of the
Company's interests, inter alia, in the Sidi El Kilani and Ezzaouia concessions,
during a period when oil prices have since rebounded and sustained revenue
generation to the benefit of the Company's subsidiaries would have been
achieved, is an incontrovertible fact. 

The Arbitrations have the objective of redressing these breaches and fully
compensating the Company for the damages it has suffered. 

Zenith is fully confident in the merits of the Arbitrations. We shall look to
initiate a process to determine and grant an extraordinary dividend to
shareholders following a potential successful outcome resulting from the CNAOG
ICC Arbitration and ICSID Arbitration." 



Further Information:

Zenith Energy Ltd 

Andrea Cattaneo, Chief Executive Officer	 
Tel: +1 (587) 315 1279
E:       info@zenithenergy.ca

Allenby Capital Limited - Financial Adviser
Nick Harriss
Daniel Dearden-Williams	Tel: + 44 (0) 203 328 5656
 
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 Venture
Market of the OTCQB (OTCQB: 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
 
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