??Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.

2 November 2023

San Leon Energy plc

("San Leon" or the "Company")

Update on investment from a strategic investor

San Leon, the independent oil and gas production, development and exploration company focused on Nigeria, provides the following update on the investment of up to US$187 million into the Company by Tri Ri Asset Management Corp. ("TRAM").  The investment was announced by the Company on 10 October 2023. As previously announced, TRAM has confirmed that all conditions precedent to its investment have been satisfied and San Leon has accordingly requested draw down of the US$125.0 million convertible secured loan from TRAM (the "Loan"). In this respect, TRAM has confirmed to San Leon that funds are in the process of being transferred from TRAM's bank in North America and San Leon has since received confirmation that payment has been made.  San Leon expects to receive the net proceeds of the Loan shortly. 

As part of the investment, TRAM also agreed to subscribe for 44,991,302 new ordinary shares of ?0.01 each in the Company (the "Ordinary Shares") at a price of 30 pence per new Ordinary Share (the "Subscription Shares").  It was previously expected by both TRAM and San Leon that the subscription would take place on or before 31 October 2023. TRAM has signed and returned the subscription letter for the Subscription Shares and San Leon understands that TRAM is currently in the process of setting up an account in the UK with its prime broker who will then be responsible for concluding the settlement of the Subscription Shares.   San Leon expects the setting up of TRAM's account in the UK to conclude shortly, following which San Leon will apply for admission of the Subscription Shares to trading on AIM.

Pending receipt of the funds from TRAM, the US$5.0 million loan from funds managed by Toscafund Asset Management LLP ("Toscafund"), which was originally announced by San Leon on 8 August 2023, remains outstanding. In this regard, San Leon is in regular correspondence with Toscafund in relation to the likely timing of any repayment and release of the security held by Toscafund, that comprises both a debenture issued by the Company as well as assignments and pledges over all of its group companies' loan and equity interests in Energy Link Infrastructure (Malta) Limited. In addition, the Company has not yet settled any of its other outstanding creditors.

Further announcements will be made in due course following receipt of funds from TRAM. 

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