Mr. Majid Shafiq reports

I3 ENERGY PLC ANNOUNCES REDUCTION OF CAPITAL

i3 Energy PLC's notice of annual general meeting was posted to shareholders yesterday. The circular contains details of, among other things, a proposed reduction of capital.

Terms used in this announcement have the same meaning given to them in the circular.

Notice of annual general meeting (AGM)

• The circular, which was posted to shareholders yesterday, is available on the company's website.
• The AGM is to be held at the offices of W H Ireland Ltd. at 24 Martin Lane, London, EC4R 0DR, at 11 a.m. BST on June 30, 2023.
• Shareholders are strongly encouraged to appoint the chair of the meeting as their proxy for the AGM. This will ensure that your vote will be counted even if attendance at the AGM is restricted or you are unable to attend.
• The results of the votes on the resolution proposed at the AGM will be announced as soon as practicable after the conclusion of the AGM and will be available on the company's website.

Proposed capital reduction

The board considers it highly desirable that the company has the maximum flexibility to consider the payment of dividends and otherwise return value to shareholders. However, the company will be precluded from the payment of any dividends or other distributions or the redemption or buyback of its shares in the absence of it having sufficient distributable reserves.

The company's share premium account currently stands at approximately 51 million pounds sterling. As at May 31, 2023, the company had retained earnings of approximately six million pounds sterling. It is proposed that the company's share premium account be cancelled. The proposed capital reduction is intended to increase retained earnings by an amount equal to the amount standing to the credit of the company's share premium account.

The purpose of the company's cancellation of its share premium account is to create further distributable reserves in the company to facilitate the future payment of dividends (in cash or otherwise) to shareholders, where justified by the profits of the company, or to allow the redemption or buyback of the company's shares (or other distributions to shareholders).

If the proposed cancellation of the company's share premium account is approved by shareholders at the AGM, it will be subject to the scrutiny of, and confirmation by, the High Court of England and Wales, which will take due account of the protection of creditors. Subject to that confirmation and registration by the Registrar of Companies in England and Wales of the order of the High Court, the capital reduction is expected to take effect later this year.

The board anticipates that the cancellation of the company's share premium account will result in the creation of further distributable reserves. However, this is subject to: (i) there being no materially negative change in the financial position or prospects of the company; and (ii) any provision that the court requires the company to make for the protection of its creditors (although the board does not expect any undertakings or similar measures to be required). This will give the company the maximum flexibility to consider the payment of dividends and otherwise return value to the shareholders, should the board consider it appropriate. It should however be noted that if the company is required to give undertakings to the High Court, this may delay the company's ability to pay dividends and otherwise return value to shareholders.

Following the implementation of the capital reduction, there will be no change in the nominal value of the company's shares or the number of shares in issue. The capital reduction in itself will not involve any distribution or repayment of share premium by the company and will not reduce the underlying net assets of the company.

The directors reserve the right to abandon or discontinue any application to the High Court for confirmation of the capital reduction if the directors believe that the terms required to obtain confirmation are unsatisfactory to the company or if, as the result of a material unforeseen event, the directors consider that to continue with the capital reduction would be inappropriate or inadvisable.

Timetable of principal events

The expected timetable of principal events with respect to the capital reduction is as displayed in the table (more precise dates will be announced following the conclusion of the AGM).

Principal event                                                 Time and date                

Annual general meeting                                          11 a.m. BST on June 30, 2023

Expected date for the directions hearing for 
the High Court to consider the capital reduction application    July, 2023                    

Expected date for the hearing by the High Court to confirm 
the capital reduction                                           Late July/August, 2023      

Expected date that the capital reduction becomes effective      August, 2023                  

Notes

1. The dates set out in this timetable and throughout this document that fall after the date of publication of this document are based on the company's current expectations and are subject to change. The times and dates are indicative only and will depend, among other things, on the date upon which the High Court of England and Wales confirms the capital reduction. The provisional final hearing date will be subject to change and dependent on the High Court.

2. The timetable assumes that there is no adjournment of the AGM. If the scheduled date for the AGM changes, the revised date and/or time will be notified to shareholders by an announcement made by the company through a RIS.

3. All times shown are London times unless otherwise stated.

About the company

i3 Energy is an oil and gas company with a low-cost, diversified, growing production base in Canada's most prolific hydrocarbon region, the Western Canadian sedimentary basin, and appraisal assets in the North Sea with significant upside.

The company is well positioned to deliver future growth through the optimization of its existing 100-per-cent-owned asset base and the acquisition of long-life, low-decline conventional production assets.

i3 is dedicated to responsible corporate practices and the environment, and places high value on adhering to strong environmental, social and governance (ESG) practices. i3 is proud of its performance to date as a responsible steward of the environment, people and capital management. The company is committed to maintaining an ESG strategy, which has broader implications for long-term value creation, as these benefits extend beyond regulatory requirements.