Mr. Corey Ruttan reports

ALVOPETRO FILES EMERGENCY ARBITRATION REQUEST

Alvopetro Energy Ltd. has filed a request for an emergency arbitration before the International Court of Arbitration of the International Chamber of Commerce in connection with the redetermination of working interests in a unitized area, which includes Alvopetro's Cabure natural gas field.

As announced by Alvopetro on April 5, 2024, the independent expert appointed by Alvopetro and its third party partner found in favour of Alvopetro's proposal, thereby increasing Alvopetro's working interest in the unit from 49.1 per cent to 56.2 per cent. On April 11, 2024, Alvopetro received a notice of dispute from the partner with respect to the expert decision seeking to stay the redetermination procedure. Following the receipt of the decision of the expert, the partner had requested additional clarifications with respect to the decision. The expert has provided an additional formal response expanding on the technical justifications for its final decision, reiterating the decision in favour of Alvopetro and noting that it considers the matter closed.

As previously announced, Alvopetro strongly disagrees with the partner as all provisions of the unit operating agreement and related agreements between the parties provide that the decision of the expert is binding. Alvopetro has filed the emergency arbitration application before the ICC. Pursuant to the application, Alvopetro has requested that an emergency arbitrator be appointed to make the expert decision effective, as provided for in the UOA.

Alvopetro's vision is to become a leading independent upstream and mid-stream operator in Brazil. Its strategy is to unlock the onshore natural gas potential in the state of Bahia in Brazil, building off the development of its Cabure natural gas field and its strategic mid-stream infrastructure.

We seek Safe Harbor.