Zenith Energy

M&A Activity • Nov 22, 2021

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Acquisition of SLK from CNPC

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA), the Africa focused production and development energy company, is pleased to announce that Zenith Overseas Assets Holdings Ltd. ("ZOA"), its fully owned subsidiary, has entered into a share purchase agreement ("SPA") for the acquisition of a 100 percent interest in the issued, allotted, outstanding and fully paid-up share capital of Canadian North Africa Oil & Gas Ltd. ("CNAOG") (previously named CNPC International (Tunisia) Ltd), a 100% subsidiary of CNPC International Ltd.

CNAOG holds an undivided 22.5% interest in the North Kairouan permit and the Sidi El Kilani Concession in Tunisia ("SLK" or the "Concession"), together with 25 Class B shares in Compagnie Tuniso-Koweito-Chinoise de Pétrole ("CTKCP"), the operator, representing 25% of the issued share capital of CTKCP.

Terms

Pursuant to the terms of the SPA, ZOA has acquired CNAOG for a consideration of US\$1,658,680, paid by the Company upon completion (the "Consideration"). As at the Completion date, the volume of crude oil produced from the Concession and allocated to and received by CNAOG, which has not been sold or otherwise disposed of, amounts to approximately thirty thousand (30,000) barrels of crude oil.

The Company confirms that the terms of the SPA constitute a new transaction, and are in full and final replacement of the terms previously outlined in Zenith's announcement dated September 8, 2020.

Andrea Cattaneo, Chief Executive Officer of Zenith, commented:

"The Board is delighted to have now completed Zenith's acquisition of an equity stake in the SLK concession, providing Zenith with immediate additional daily production revenue in Tunisia and an exciting future in developing SLK which has significant unexploited potential.

The Company will now begin investing technical management time and resources towards the performance of targeted field rehabilitation and drilling activities to gradually increase production from SLK.

We are also pleased to have increased our footprint in Tunisia, a country where we are now increasingly well-established as an oil and gas producer and where we hope to further consolidate our presence.

I thank CNPCI for their constructive assistance in successfully concluding this transaction. We look forward to exploring further opportunities for cooperation with them in due course.

Similarly, we shall seek to provide further updates to shareholders on other areas of long-held focus between now and the close of the year."

The information included in this announcement is defined as inside information pursuant to MAR article 7 and is publicly disclosed in accordance with MAR article 17 and section 5 -12 of the Norwegian Securities Trading Act. The announcement is made by the contact person.

Further Information:

Zenith Energy Ltd	Tel: +1 (587) 315 9031
Andrea Cattaneo, Chief Executive Officer
	E: info@zenithenergy.ca
Allenby Capital Limited - Financial Adviser &	Tel: + 44 (0) 203 328 5656
Broker
Nick Harriss
Nick Athanas
Celicourt Communications (Financial PR)	Tel: +44 (0) 208 434 2643
Mark Antelme
	E: zenithenergy@celicourt.uk
Jimmy Lea

Notes to Editors:

Zenith Energy Ltd. is an international oil and gas production company, listed on the London Stock Exchange (LSE:ZEN) and the Euronext Growth Market of the Oslo Stock Exchange (OSE:ZENA).

Zenith's development strategy is to identify and rapidly complete value-accretive hydrocarbon production opportunities in the oil & gas sector, specifically in Africa.