General Announcement::Canacol Energy Ltd Provides Information on Arbitration Process

Issuer & Securities

Issuer/ Manager
CANACOL ENERGY LTD.
Securities
CANACOLENE US$500M5.75%281124A - US134808AD63 - PNTB
CANACOLENE US$500M5.75%281124R - USU13518AC64 - YW0B
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
08-Nov-2025 09:42:44
Status
New
Announcement Sub Title
Canacol Energy Ltd Provides Information on Arbitration Process
Announcement Reference
SG251108OTHR4ZGA
Submitted By (Co./ Ind. Name)
Canacol Energy Ltd.
Designation
SGX-SE
Description (Please provide a detailed description of the event in the box below)
Canacol Energy Ltd Provides Information on Arbitration Process

CALGARY, ALBERTA (November 7, 2025) Canacol Energy Ltd. ( Canacol or the Company ) announces that it has been notified of the decision issued in the domestic arbitration proceedings initiated by VP Ingenerg a S.A.S. E.S.P. before the Arbitration and Conciliation Center of the Bogot Chamber of Commerce.
The arbitration addressed the termination of three natural gas supply contracts, which were terminated by Canacol due to VP Ingenerg a s contractual breaches, including the failure to provide the contractually required guarantees and the failure to pay for gas delivered. During the proceedings, the relationship between these facts and the occurrence of a force majeure event experienced by Canacol in 2023 was also examined.
The arbitral tribunal decided to accept Canacol s arguments regarding the invalidity of the guarantees provided by VP Ingenerg a and the irregular manner in which VP Ingenerg a handled proceeds from the sale of gas, while on the other hand partially upholding VP Ingenerg a s claims with respect to the force majeure events. The net effect of the tribunal s ruling against each of the parties is that Canacol has to pay approximately USD $22 million. This decision is not yet perfected, as it is subject to clarification and supplementation, and therefore the award will become binding on November 20, 2025.
In this regard, the Company is reviewing this decision in light of the invoices that VP Ingenerg a still owes, as well as the payment orders against VP Ingenerg a in favor of Canacol issued by different Colombian judges, totalling USD $25 million approximately.
Additionally, Canacol is pursuing an international arbitral tribunal in which VP Ingenerg a is the respondent and in which amounts exceeding USD $76 million are claimed, without VP Ingenerg a having any economic claim against Canacol. Canacol s case in the international tribunal is strengthened by the recognition of the domestic tribunal that the contracts were terminated by Canacol for just cause, and therefore the Company expects a positive outcome in such process, which is estimated to conclude during the first half of 2026.
Likewise, Canacol will submit the domestic arbitral decision to the attention of the Office of the Attorney General of the Nation, as it was proved that the guarantees provided by VP Ingenerg a did not secure the contracts entered with Canacol and that VP Ingenerg a breached its duties of good faith by making unjustified withdrawals of the trust funds, which were intended for the payment of VP Ingenerg a s obligations in favor of Canacol. The foregoing will have a direct impact on the criminal actions being pursued against VP Ingenerg a s directors and shareholders, specifically Mr. lvaro Augusto Vargas Bravo (owner of VP Ingenerg a S.A.S. E.S.P.), Patricia Pe a (his spouse) and Darlyn Yesenia Neira (legal representative of the company), in relation to which charges have been filed by the Office of the Attorney General of the Nation, along with a request for preventive detention measures, for various offenses, including aggravated fraud and corruption, for acts and facts related directly to the differences between the parties in the domestic arbitration proceeding, which were decided in favour of Canacol by the domestic arbitration tribunal as noted above.

We reiterate that Canacol is currently reviewing the full content of the arbitral decision and will analyse the potential filing of any appeals or legal actions as appropriate.
Canacol insists that it will continue to rely on the Colombian justice system.

About Canacol
Canacol is a natural gas exploration and production company with operations focused in Colombia. The Corporation s shares are traded on the Toronto Stock Exchange under the symbol CNE, the OTCQX in the United States of America under the symbol CNNEF, the Bolsa de Valores de Colombia under the symbol CNEC.

Attachments

07.11.2025 - Canacol Energy Ltd Provides Information on Arbitration Process.pdf
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