Zenith Energy Ltd. (“Zenith” or the “Company”) announced on Monday, September 22, 2025, that its fully owned UK subsidiaries have filed their final submissions in the ongoing arbitration against the Republic of Tunisia under the rules of the International Centre for Settlement of Investment Disputes (ICSID). The arbitration, initiated in June 2023, is grounded in Tunisia’s alleged violations of the Bilateral Investment Treaty (BIT) signed with the United Kingdom in 1989.

In connection with the final submission, Zenith disclosed an upward revision of its total claimed damages, from the previously communicated USD 503M to USD 572.65M. This revaluation reflects communicated additional breaches and extended operational obstructions, assessed by TWCOG LLP, an expert oil & gas arbitration firm, in collaboration with Chapman Petroleum Engineering. The final hearings are expected to take place in April 2026.

Analyst Group’s View on the ICSID Final Submission

The final submission in the ICSID arbitration marks a step in what is the most strategically significant legal process in Zenith’s history. The Company has now completed the written phase of proceedings, having formally quantified its updated claim at USD 572.65M, an increase of approximately 14 % from previously communicated claim. This upward revision materially strengthens the case’s investment relevance and signals legal confidence ahead of the 2026 hearings.

Analyst Group views the increased claim not merely as a legal escalation, but as a refined representation of cumulative damages tied to expropriated assets, unpaid oil deliveries, operational disruptions, and the loss of multi-decade licenses in Sidi El Kilani and Ezzaouia. The fact that the reassessment was conducted by TWCOG LLP, a specialist with over 60 international disputes and 50 expert testimonies, including multiple ICSID cases, adds weight and credibility to the updated valuation. Moreover, TWCOG’s methodology has been corroborated through collaboration with Chapman, Zenith’s longstanding reserves auditor.

The ICSID arbitration stands apart from Zenith’s prior ICC proceedings due to its treaty-based nature under international public law, which typically involves larger claims, sovereign respondents, and stricter procedural frameworks. The involvement of Clay Arbitration and Charles Russell Speechlys (Paris), led by Professor Thomas Clay and Maître Simon Le Wita respectively, provides additional procedural strength. While outcomes in treaty-based arbitrations remain binary in nature, Analyst Group estimates a 68 % probability of a favorable result, based on historical ICSID data and comparative legal precedent.

Analyst Group’s View on Zenith as an Investment

Zenith enters this final phase of the ICSID arbitration at a time when the Company continues to execute on its broader strategic objectives, including:

• A rapidly expanding solar energy portfolio in Italy, now totaling 64.5 MWp, with expectations of surpassing 100 MWp before year-end 2025.
• A profitable core business centered on gas-to-electricity production, providing recurring cash flow to support operations.
• An active secondary legal process via the ICC-2 annulment application, filed with the Swiss Federal Court, which could reopen a dismissed USD 130M claim.
• A recently launched listing on the Spotlight Stock Market in Sweden, aimed at broadening the investor base and enhancing access to Nordic capital markets, with a subscription price of SEK 0.45 per SDR and a subscription period running until 23 September.

Together, these elements supports a attractive risk–reward profile where the core business provides operational resilience, and the ICSID arbitration acts as a substantial upside catalyst.

Zenith Energy Ltd. (“Zenith” or the “Company”) announced on Thursday, September 18, 2025, that the Company has secured subscription intentions and guarantee commitments totaling approximately SEK 16.3 million, representing 65.2 % of the ongoing offering of Swedish Depository Receipts (SDRs) in connection with the planned listing on Spotlight Stock Market. The offering comprises up to 55 555 556 SDRs, equal to approximately SEK 25 million before issue costs. Trading in Zenith’s SDRs is expected to commence on October 10, 2025. The subscription intentions of approximately SEK 3.3 million stemmed from CEO Andrea Cattaneo and CFO Luca Benedetto and represent their pro rata ownership. The guarantee commitments (“Top-down Guarantee”) amount to approximately SEK 13 million, corresponding to 52.2 % of the Offering, and have been provided by external investors.

Analyst Group’s View on the Offering

Analyst Group views the subscription intentions and guarantee commitments covering over 65 % of the offering as a strong signal of internal confidence and external investor interest in Zenith ahead of its planned Spotlight listing. The participation of the Company’s Board and management, CEO and member of the board of directors Andrea Cattaneo and CFO and member of the board of directors Luca Benedetto, with personal capital underscores the management team’s belief in Zenith’s long-term potential and aligns with shareholder interests. The cash-based compensation of 12.5 % reflects prevailing market terms for similar offerings of this size and risk profile. Additionally, this offering comprises the entire initial free float on Spotlight; as such, the level of subscription will directly shape post-listing liquidity. The SEK 25 million raise, if fully subscribed, establishes an initial free float sufficient to support post-listing trading activity and would represent approximately 20 % of the Company’s total shares post-transaction.

Zenith enters the Spotlight listing process at a time when the Company, in our view, holds a resilient core business, with a clear growth strategy in solar, and active legal processes that may unlock significant value upside potential. Zenith presents a risk–reward profile where capital raised through the offering is expected to accelerate portfolio expansion and further strengthen the Company’s investor base and access to the Nordic capital markets.

Zenith Energy Ltd. (“Zenith” or the “Company”) announced on Tuesday, September 16th 2025, that the Company has acquired a solar energy development project located in the Puglia region of Italy through its wholly owned Italian subsidiary created to manage its solar energy portfolio, WESOLAR S.R.L. (“WESOLAR”).

The newly acquired asset, currently in development stage, will have a total installed capacity of approximately 6 MWp. The EUR 750,000 consideration includes the purchase of the land and is conditional on obtaining all required permits for the project to be classified as ”Ready-to-Build.” With this latest transaction, Zenith’s total Italian solar portfolio now reaches 64.5 MWp, consisting of operational, ready-to-build, and development-stage assets.

Analyst Group’s View on the Puglia Acquisition

The acquired solar energy development asset, located in Puglia, will have a total installed capacity of approximately 6 MWp once operational, bringing the total portfolio capacity to 64.5 MWp. Analyst Group views the Puglia Acquisition as a strategic and value-accretive addition to Zenith’s fast-growing solar portfolio. The new 6 MWp development project strengthens Zenith’s regional cluster strategy, with Puglia now joining Piedmont and Lazio as one of three key focus areas for solar development. Importantly, the acquisition in Puglia highlights the Company’s continued progress in executing its communicated strategy of building a diversified, cash-generative renewable energy portfolio. The Company maintains a high pace of acquisitions during year 2025 and now holds a significantly expanded and diversified portfolio of solar assets spanning operational, ready-to-build, and development-stage projects, expanding the total solar portfolio to 64.5 MWp, which significantly strengthens the core business operations and further supports our expectation that the total portfolio exceeds 100 MWp before the end of year 2025.

Zenith’s solar strategy continues to be underpinned by the favorable structural conditions in the Italian energy market, including elevated electricity prices, strong policy support, and high solar irradiation, particularly in southern regions like Puglia, where the solar irradiation (GHI) is estimated to average between 1 800 and 2 000 kWh/m²/year, with a capacity factor between 17–20%, which represents the most favorable conditions for solar production. Based on our assumptions, Zenith’s total solar energy projects, once operational, are expected to generate revenues of approximately EUR 10.5M per year.

Zenith is currently in the process of listing on Spotlight Stock Market and offering Swedish Depository Receipts (SDRs) to both institutional and retail investors. The offering includes up to 55,555,556 SDRs, representing new shares equivalent to approximately SEK 25 million before issue costs.

Zenith has a long history of well-timed acquisitions at attractive valuations, as demonstrated by the acquisition of oil assets in Tunisia during the COVID-19 period. Core operations remain resilient, supported by profitable gas-to-electricity and solar production in Italy, where Zenith has been active since the year 2010. In 2025, the Company executed its largest solar acquisition to date and currently holds a diversified portfolio of 64.5 MWp, expected to exceed 100 MWp before year-end. Beyond core operations, Zenith has an established legal track record. The ICC-1 arbitration concluded successfully in December 2024 with a USD 9.7M award. While ICC-2 resulted in a full dismissal of USD 130M in claims, Zenith has now submitted an annulment application, citing serious procedural irregularities and newly discovered connections between tribunal members and the Tunisian state.

The broader and most strategically significant legal process remains the ICSID arbitration, where the Company is pursuing USD 503M under the UK–Tunisia Bilateral Investment Treaty. Final submissions are scheduled for September 2025, with hearings in Q2 2026. Analyst Group estimates a 68% probability of a favorable outcome based on historical data and legal precedent.

With a stable operational base in Italy and two active legal processes that could unlock substantial upside, Zenith presents a risk–reward profile where litigation outcomes may serve as significant value catalysts.

Zenith Energy Ltd. (“Zenith” or the “Company”) announced on Wednesday, July 16th 2025, the decision of the Arbitral Tribunal regarding the claims submitted by Zenith’s fully owned Canadian subsidiary, Canadian North African Oil & Gas (“CNAOG”), in relation to the Sidi El Kilani concession (“SLK Concession”), against the Tunisian national oil company, Entreprise Tunisienne d’Activités Pétrolières (“ETAP”), under the International Chamber of Commerce in Paris (“ICC-2 Arbitration”).

The Arbitral Tribunal has issued a decision rejecting the entirety of the claims presented by CNAOG. Zenith states that its legal counsel identified and documented several serious procedural irregularities during ICC-2 why the Company now will proceed with an application for annulment of the ICC-2 award before the Swiss Federal Supreme Court in Lausanne, Switzerland. The Swiss Federal Supreme Court typically renders decisions on annulment applications within 6 to 9 months from submission.

Analyst Group’s View on the Result of the ICC-2 Arbitration

The ruling in ICC-2 represents a significant legal and financial disappointment for Zenith. The complete dismissal of the USD 130 million claim, despite the Company’s stated confidence in the merits of its case, highlights the complexity and unpredictability of international arbitration processes involving sovereign counterparties. The ruling eliminates any short-term monetary recovery from ICC-2.

Previously, Analyst Group had modeled an expected haircut-adjusted award of USD 66.9 million based on legal precedent and comparative outcomes. The decision therefore represents a result beneath even low-probability downside assumptions. However, similar full dismissals have occurred historically, especially in cases where procedural dynamics or tribunal composition have played a material role.

The Company has asserted that serious procedural irregularities has been identified and formally recorded during ICC-2, which will now form the basis for its annulment application. These were documented and will now serve as the legal foundation for the Company’s annulment application to the Swiss Federal Supreme Court. The swift and public announcement of this legal course of action underscores a proactive litigation strategy, aimed not only at contesting the outcome but also at challenging the fundamental legitimacy of the arbitral process itself, an assertion that, if substantiated, could carry significant legal weight. Should the annulment be granted, it could pave the way for the case to be re-heard before a newly constituted and impartial tribunal, which may restore part, or all, of the lost claim value. As such, the ICC-2 result, while negative in its current form, may not represent a final resolution to the dispute.

Despite this legal disappointment, Zenith’s underlying operations remain operationally resilient. High electricity prices in Italy continue to support strong revenue generation from the Company’s Italian power assets. Looking ahead, Zenith is expected to intensify legal and strategic focus on the ICSID proceedings, where Zenith currently is preparing its final written submission, scheduled for delivery in September 2025, ahead of the final hearing set for Q2 2026. A hearing is anticipated during the first or second quarter of 2026. With claims amounting to USD 503 million under the UK–Tunisia Bilateral Investment Treaty, a favorable decision under ICSID will be critical to restoring long-term shareholder value and reinforcing Zenith’s broader claims of unlawful and discriminatory treatment by Tunisian authorities.

Summary

The Arbitral Tribunal has rejected all claims in the ICC-2 arbitration related to the Sidi El Kilani concession, representing a significant legal and financial setback for the Company. In response, Zenith intends to file an annulment application before the Swiss Federal Supreme Court, citing documented procedural irregularities during the arbitration process. If granted, this decision could permit a retrial before a new tribunal. Despite the adverse outcome, the ICSID arbitration, where Zenith is pursuing USD 503 million under the UK–Tunisia investment treaty, remains fully intact and now Zenith is expected to intensify legal and strategic focus on the ICSID proceedings. Final submissions are due in September 2025, with hearings scheduled for the second quarter of 2026. Zenith’s operational performance remains stable, supported by strong cash flows from its Italian power assets, which continue to sustain the Company’s legal strategy as it seeks material recovery through ICSID.

Andrea Cattaneo, Chief Executive of Zenith, commented:

“We are outraged by the decision rendered by the Arbitral Tribunal in ICC-2.

Our position has always been – and remains – that CNAOG is entitled to substantial compensation with respect to the SLK concession. The failure to recognize the illegitimate conduct of the Tunisian authorities, following the favourable precedent set in ICC-1, is nothing short of a travesty.

Acting on the advice of Professor Thomas Clay, a globally recognized authority in international arbitration, CNAOG had already expressed serious concerns regarding the management of ICC-2. We identified and promptly documented serious and repeated procedural irregularities during ICC-2. However, due to the confidentiality provisions governing ICC-2, we were unable to disclose these irregularities publicly until now.

The Company is now considering all legal avenues. CNAOG will, without delay, file an application for annulment of the ICC-2 award before the Swiss Federal Supreme Court. Should the annulment succeed, a new arbitration will be initiated under a properly constituted and impartial tribunal.

CNAOG remains fully confident in the strength of its case and will continue to fight vigorously to achieve justice. Our immediate focus now shifts to the ICSID arbitration, where we are pursuing a US$503 million claim. The final submission is scheduled for September 2025, ahead of the final hearing in Q2 2026. At the same time, we are taking all necessary measures to enforce the ICC-1 award of approximately US$10 million.

This injustice only serves to strengthen our resolve. The Company will not hesitate to explore every legal and procedural mechanism available to ensure accountability and to vindicate its rights.”

Background to the arbitration proceedings

Zenith’s entry into Tunisia, executed in year 2020 and year 2021 during the COVID-19 pandemic, coincided with a low point in the oil price cycle. This timing initially appeared advantageous, as many competitors either went bankrupt or scaled down operations. However, following the invasion of Ukraine by Russia in February year 2022, the price of oil reversed and reached levels above USD 110, highlighting the well-timed execution. The investments in Tunisia have since been characterized by a series of arbitrary and obstructive actions by the Tunisian Government and the national oil enterprise, Enterprise Tunisienne d’Activités Pétrolières (“ETAP”), ultimately resulting in the initiation of multiple international legal disputes.

To date, three separate arbitration proceedings have been launched. Two arbitrations relate to contractual disputes arising from commercial obligations under relevant agreements and are conducted under the International Chamber of Commerce (“ICC”), referred to as “ICC-1” and “ICC-2.” The third arbitration is conducted under the International Centre for Settlement of Investment Disputes (“ICSID”) and addresses broader claims of treaty violations by the Tunisian state against the Company under applicable bilateral investment treaties. This includes the Bilateral Investment Treaty (“BIT”) between the United Kingdom and Tunisia, under which all relevant subsidiaries of Zenith were originally incorporated, having British jurisdiction. The first arbitration, ICC-1, resulted in a favorable award of USD 9.7 million. The ICC-2 arbitration involved a total claim value of USD 130 million and pertains to a contractual dispute regarding the purchase of all shares in the company CNPCIT, which holds a 22.5 % interest in the Sidi El Kilani (SLK) oil concession. The arbitration under ICSID involves claims from Zenith Group totaling USD 503 million and stems from violations of the BIT between the United Kingdom and Tunisia. The dispute concerns all of the Company’s British subsidiaries and operations in Tunisia. The combined total value of claims in the two ongoing proceedings amounts to approximately USD 633 million.

ICC-2 Arbitration: Broader Claims Arising From Contractual Breaches in the SLK Concession

Under the International Chamber of Commerce (ICC), a second arbitration proceeding was initiated to assess Zenith’s second claim within this framework, designated as ICC-2, with a total claim value of USD 130 million. The arbitration was initiated by Canadian North African Oil & Gas (“CNAOG”), announced in December year 2023 by Zenith. CNAOG, then a wholly owned subsidiary of Zenith Energy, represents the renamed entity of CNPC Tunisia and holds a 22.5 % stake in the Sidi El Kilani (SLK) oil concession.

This arbitration outlines CNAOG’s broader allegation that Tunisian authorities engaged in arbitrary and obstructive conduct, thereby preventing lawful operation and the realization of value from SLK.

The claim includes:

• Loss of production revenues and profits: CNAOG seeks compensation for foregone revenue from the SLK field between the acquisition date and concession expiry in December 2022, during a period of elevated oil prices.
• Crude allocations denied: Oil volumes owned by CNPCIT (now renamed CNAOG post-acquisition), were allegedly sequestrated, and hence never delivered or monetized.
• Unpaid oil invoices (SLK-specific): As per the crude oil in the port tanks, invoices for oil sold domestically (called DMO) were never paid.
• Loss of right to renew SLK: CNAOG also asserts that it was unlawfully denied the right to renew the SLK concession after 2022. This claim includes the projected future value of a 45% interest (combining the CNPC and KUFPEC stakes) in a renewed SLK license.