Mr. Andrew Biggs reports

PRIMELINE RECEIVES SERVICE OF STATEMENT OF CLAIM

Primeline Energy Holdings Inc., further to its press release of Aug. 11, 2021, announcing receipt of notice of the occurrence of an event of default under the loan facility from the syndicate of banks which provided finance for Primeline's share of the development cost of the LS 36-1 gas field, has now been served with a statement of claim in an action commenced by the syndicate against Primeline in the Ningbo Maritime Court in China. The syndicate is claiming against Primeline for outstanding principal of $152,761,912.7 (U.S.), and accrued interest of $10,343,742.27 (U.S.) as at July 20, 2021, owing under the loan facility, and is also asserting priority rights over the production facilities, contractual rights, accounts receivable, and the gas and product sale contracts pledged as collateral for the loan. As previously disclosed, production at LS 36-1 has been shut down, and Primeline has no source of revenue with which to repay the loan. Therefore, Primeline will not be defending in the action, and intends to co-operate with the syndicate in order to enable it to obtain a consent judgment.

Primeline's application in the High Court of the Republic of Singapore to set aside the award in its previously announced arbitration with CNOOC and China National Offshore Oil Corp. on the basis of procedural breaches disclosed in its press release of Sept. 11, 2020, has been dismissed with costs.

Primeline confirms that, other than as disclosed in prior press releases, there have been no material business developments since its press release of Aug. 21, 2020, and the filing on Feb. 13, 2020, of the company's latest interim financial report for the period ended Dec. 31, 2019.

We seek Safe Harbor.