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Orca Announces the Repurchase of Outstanding Shares in PAE PanAfrican Energy Corporation

Posted on 21 July 2023

TORTOLA, British Virgin Islands, July 21, 2023: Further to the announcement by Swala Oil & Gas (Tanzania) plc (“Swala TZ”) on April 3, 2023, which resolved that Swala TZ be placed into involuntary liquidation, Orca Energy Group Inc. (“Orca” or the “Company”) confirms that it has repurchased the 7.9% (7,933 Class A common shares) shares in the Company’s subsidiary PAE PanAfrican Energy Corporation (“PAEM”), currently held by Swala (PAEM) Limited (in administration) (“Swala UK”), for US$7.5 million.

Orca sold the 7.9% (7,933 Class A common shares) of PAEM to Swala UK, a wholly owned subsidiary of Swala TZ, in 2018 for US$21.02 million combining US$17.1 million cash and US$4.0 million of Swala TZ’s Preference Shares pursuant to an investment agreement made as of 2017. The $4.0 million due to Orca by way of preference share redemptions from Swala TZ remain outstanding, however Orca has submitted a notice of claim to the Tanzanian liquidators. The Company continues to investigate all legal remedies available to it following the allegations Swala TZ made about Orca and its conduct, which the Company continues to strongly refute.

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