C.O. Cyprus Opportunity Energy Public Company LTD

Legal Proceedings Report • Jan 14, 2016

Announcement

Further to C.O. CYPRUS OPPORTUNITY ENERGY PUBLIC COMPANY LIMITED ("the Company") announcement dated October 29 2015 with respect to receiving together with its partners the Hatrurim license ("the License"), the Petroleum Commissioner at the Ministry of National Infrastructures, Energy and Water of Israel ("the Commissioner") has demanded the issue of a guarantee in the amount of 600,000 USD for the entire License. The Company's obligation out of the total guarantee of 600,000 USD amounts to 33,333.33 USD ("the Guarantee").

For the performance of the Company's obligation herein Petrica Energy AS (formally AGR Energy AS) ("Petrica") has agreed to provide the Guarantee according to requirements and instructions of the Commissioner.

As soon as possible and no later than 6 months the Company will replace the Guarantee provided by Petrica in an alternative guarantee which will be provided to the Commissioner and releasing Petrica's Guarantee.

In consideration for providing the Guarantee, Petrica shall be entitled to out of pocket expenses reimbursement. Petrica is not entitled to any other consideration with this respect.