Dr. Ming Wang reports

PRIMELINE ENERGY HOLDINGS INC. CNOOC ARBITRATION UPDATE

Primeline Energy Holdings Inc. has provided the following update on its arbitration proceedings against China National Offshore Oil Corp. (CNOOC) and CNOOC China Ltd. (CCL).

As previously announced Primeline commenced the CNOOC arbitration under the dispute resolution provisions of petroleum contract 25/34 in accordance with the UNCITRAL Arbitration Rules (1976). The tribunal (comprising three arbitrators) was formed on Aug. 30, 2016, with the seat of arbitration being agreed to be in Singapore. Primeline has claimed in respect of CCL's mismanagement as operator of the LS36-1 gas field, resulting in delay in the commencement of production of LS36-1 gas field from 2013 to 2014 leading to loss of revenue, increased cost and the project falling below its design level; and in respect of CCL's breach of good faith and wrongful conduct as Primeline's agent in dealing with Zhejiang Gas and managing the gas sales contract for LS 36-1; and against CNOOC as guarantor of CCL.

The final hearing of the CNOOC arbitration took place in Singapore between Sept. 10 and Sept. 20, 2018. The parties are now required to submit final written submissions following which the tribunal will make its decision. It is anticipated that the tribunal will take several months to finalize and deliver its decision.

About Primeline Energy Holdings Inc.

Primeline is an exploration and production company focusing exclusively on China natural resources to become a major supplier of gas and oil to the East China market. Primeline has a 100-per-cent contractor interest in, and is the operator of, the petroleum contract with CNOOC for block 33/07 (4,397 square kilometres) and a 49-per-cent interest in the producing LS36-1 gas field in block 25/34, together with CNOOC (51-per-cent interest and acting as operator).

We seek Safe Harbor.