Zenith Energy

Zenith Energy Ltd. (“Zenith” or the “Company”) announced on October 27, 2026, that the Company has engaged The Hon. Michael R. Pompeo, former United States Secretary of State and former Director of the Central Intelligence Agency, and his advisory firm, CNQ Global Advisors (“CNQ”), as strategic advisors (the “Advisory Engagement”). The engagement relates to the approximately USD 572.65m international arbitration that Zenith’s UK subsidiaries are pursuing against the Republic of Tunisia before the International Centre for Settlement of Investment Disputes (“ICSID”) under the 1989 bilateral investment treaty between the United Kingdom and Tunisia.

About the Advisory Engagement

Secretary Pompeo served as the 70th United States Secretary of State from 2018 to 2021 and is Chairman of CNQ. CNQ is led by Vice Chairman Brian Bulatao, former Under Secretary of State for Management, and President Matthew Kroenig, a professor at Georgetown University and senior fellow at the Atlantic Council. CNQ’s senior advisory team includes Elliott Abrams, former Deputy National Security Advisor; Ulrich Brechbühl, former Counselor of the US Department of State; J. Peter Pham, former US Special Envoy for the Great Lakes and Sahel Regions of Africa; and Kurt Volker, former US Ambassador to NATO.

According to Zenith, the objective of the Advisory Engagement is to support the Company’s UK subsidiaries in their ICSID proceedings. Zenith remains open to a potential settlement that appropriately reflects the legal and economic value of the claims. In this context, the engagement will consider options to help the subsidiaries and the Republic of Tunisia move beyond the dispute toward a more constructive future for both sides.

In his comments, Secretary Pompeo highlighted that the claimants’ case rests on firm legal footing and centers on fundamental investor protections. He expressed confidence that his team can help bring the dispute to an amicable resolution that serves the interests of both parties.

Zenith’s ICSID Arbitration

The ICSID proceedings were brought by Zenith’s wholly owned UK subsidiaries and seek compensation for breaches of the bilateral investment treaty, including the expropriation, impairment and loss of value of their investments in Tunisia. The final hearing was held in April 2026. According to Zenith, the claimants’ legal team at the hearing included Charles Michel, former President of the European Council and former Prime Minister of Belgium. Zenith notes that the witness testimony raised significant factual issues, several of which the Tribunal indicated warranted further consideration in the post-hearing submissions. Following the post-hearing written submissions in July and September 2026, the Tribunal will deliberate before issuing its final award, expected in the first quarter of 2027.

Analyst Group’s View on the Advisory Engagement

In Analyst Group’s view, engaging a former US Secretary of State, supported by senior former US officials with extensive experience in diplomacy, national security and African affairs, adds considerable strategic and geopolitical weight to Zenith’s position at a decisive stage of the ICSID proceedings. Alongside the legal process, the Advisory Engagement opens a constructive channel toward a potential negotiated resolution, which could support both the timing and the realization of value from the claims. The engagement also follows Secretary Pompeo’s proposed appointment as Chairman of Reveille Resources, in which Zenith is the largest shareholder, announced on October 6, 2026. In our view, this underlines the relationship that Zenith has established with Secretary Pompeo. Analyst Group continues to assign a 72 % probability to a favorable outcome in the ICSID proceedings based on precedent. We view the Tribunal’s final award, together with any progress toward a negotiated resolution, as the key milestones going forward.