Primeline Receives Service of Statement of Claim

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HONG KONG, Jan. 05, 2022 (GLOBE NEWSWIRE) — Primeline Energy Holdings Inc. (“Primeline” or the “Company”) announces that, further to its press release of August 11, 2021 announcing receipt of notice of the occurrence of an event of default under the loan facility from the syndicate of banks (the “Syndicate”) which provided finance for Primeline’s share of the development cost of the LS 36-1 gas field, it 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 USD 152,761,912.7, and accrued interest of USD 10,343,742.27 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 cooperate with the Syndicate in order to enable it to obtain a consent judgment.

Primeline also announces that its 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 Corporation ‎on the basis of procedural breaches disclosed in its press release of September 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 August 21, 2020 and the filing on February ‎‎13, 2020 of the Company’s latest interim financial report for the period ended December 31, 2019.‎

ON BEHALF OF PRIMELINE ENERGY HOLDINGS INC.

Signed “Andrew Biggs”

Chief Executive Officer

Contact:

Please visit the Company’s website at www.primelineenergy.com. 

Some of the statements in this news release contain forward-looking information, which involves inherent risk and ‎uncertainty affecting ‎the business of Primeline. These statements relate to Primeline’s ability to continue operations. Although these ‎statements are based on assumptions management believes to be reasonable, actual ‎results may vary from those ‎anticipated in such statements. Primeline will not defend the action brought by the Syndicate described above for repayment of the loan facility and enforcement of its security. That will likely result in the seizure of all of Primeline’s material assets, in which event ‎Primeline will ‎be unable to continue operations. Primeline assumes no ‎obligation to update forward-looking information, except as required by law. ‎

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.