Reconnaisance Energy Africa Ltd.

Read this notice carefully as it may affect your rights.

This Notice is directed to all persons and entities, excluding certain persons associated with the defendant, Reconnaissance Energy Africa Ltd. (“ReconAfrica”) wherever they may reside or be domiciled, who purchased or otherwise acquired common shares of ReconAfrica listed on the TSX Venture Exchange and Frankfurt Stock Exchange, on or after May 30, 2020 (the “ReconAfrica Securities”), and held some or all of those securities until after the close of trading on September 7, 2021 (“Canadian Settlement Class Members” and the “Canadian Class Period”).

PURPOSE OF THIS NOTICE

A proposed class action (the “Canadian Action”) brought on behalf of the Canadian Settlement Class Members has been settled. The Canadian Settlement has been approved by the British Columbia Supreme Court (the “Canadian Court”). This Notice provides Canadian Settlement Class Members with information about how to submit a Claim Form to the Canadian Claims Administrator in order to participate in the distribution of the Canadian Net Settlement Fund.

THE ACTION

The plaintiff in the Canadian Action (the “Canadian Plaintiff”) alleges that commencing May 2020, ReconAfrica negligently signaled planned fracking by referencing “unconventional” resources and “shale” deposits within Namibia. In industry parlance, “unconventional” resources and/or “shale” deposits refer to oil and gas deposits requiring extraction by fracking. The Canadian Plaintiff alleges that ReconAfrica was made these statements negligently because it failed to disclose to investors that: (1) ReconAfrica had not determined whether Namibia would allow fracking, which had never been done in Namibia, and which was central to ReconAfrica’s business plans; and (2) ReconAfrica possessed data from its test wells that revealed poor prospects for achieving oil and gas production that would be commercially viable. These alleged omitted material facts undermined ReconAfrica’s public statements made during the Canadian Class Period, rendering them misleading. When publicly corrected, the markets’ reaction was allegedly immediate and harsh.

ReconAfrica denies all such allegations.

The settlement of the Canadian Action, without an admission of liability on the part of ReconAfrica, was approved by The Honourable Justice Francis on June 20, 2024. This notice provides a summary of the settlement.

SUMMARY OF THE SETTLEMENT TERMS

ReconAfrica will pay CAD $5,075,000 million (the “Canadian Settlement Amount”), in full and final settlement of all claims against it in the Canadian Action. Canadian Class Counsel Fees, including out-of-pocket expenses and taxes, were fixed by the Court as a first charge on the Canadian Settlement Amount in the amount of thirty (30) percent of CAD $5,075,000 million, plus disbursements, plus taxes. The Canadian Settlement Amount for the Class, less the Canadian Class Counsel Fees and disbursements, administrator’s expenses, and taxes, (the “Canadian Net Settlement Amount”) will be distributed to the Canadian Settlement Class in accordance with the Court-approved Canadian Plan of Allocation. The Global Stipulation and Agreement of Settlement dated

February 27, 2024 (the “Settlement Agreement”) and Canadian Plan of Allocation may be viewed at the Important Documents tabs above.

HOW TO MAKE A CLAIM FOR COMPENSATION:

CLAIMS FOR COMPENSATION MUST BE RECEIVED BY OCTOBER 28, 2024

Each Canadian Settlement Class Member must submit a completed Claim Form on or before October 28, 2024 in order to participate in the settlement. The Claim Form can be downloaded from the Important Documents tab above, or obtained by calling the Canadian Claims Administrator at 647.598.8772 extension 6. If you do not submit a completed Claim Form by October 28, 2024 2024, you will not receive any part of the Canadian Net Settlement Amount.

The Canadian Court appointed Berger Montague (Canada) PC as the Administrator of the settlement to, among other things: (i) receive and process Claim Forms; (ii) decide eligibility for compensation; and (iii) distribute the net Canadian Settlement Amount to eligible Class Members. The Claim Form should be submitted to the Administrator by using the secure Online Claims System.

INTERPRETATION

If there is a conflict between the provisions of this Notice and the Settlement Agreement, the terms of the Settlement Agreement will prevail.

Background

This is a shareholder class action on behalf of a class consisting of all persons and entities who purchased or otherwise acquired the securities of Reconnaissance Energy Africa Ltd. (“ReconAfrica”) between May 30, 2020 and September 7, 2021 (the “Class Period”), excluding those persons and entities that have issued their own action or a member of a certified class action in the United States and who have not otherwise opted out of said certified class action in the United States. 

During the Class Period, the Company signaled its planned fracking by referencing “unconventional” resources and “shale” deposits within Namibia. In industry parlance, “unconventional” resources and/or “shale” deposits refer to oil and gas deposits requiring extraction by fracking. These false statements resulted in ReconAfrica’s share price being artificially inflated.

Commencing June 24, 2021, research firm Viceroy Research LLC (“Viceroy”) published a report exposing the Defendant’s wrongdoing. The report detailed ReconAfrica’s unrealistic fracking intentions, and the omission of material facts concerning their data from the Company’s promotional test well announcements. Viceroy continued to publish additional reports further revealing the Defendant’s misrepresentations and weak prospects for conventional oil and gas production. Those reports included a Viceroy report dated September 7, 2021, the last day of the Class Period, pointing out significant weaknesses and omissions in the Company’s then most recently announced test results. During the Class Period, the Defendant failed to disclose to investors that: (1) ReconAfrica had not determined whether Namibia would allow fracking, which had never been done in Namibia, and which was central to the Company’s business plans; and (2) ReconAfrica possessed data from its test wells that revealed poor prospects for achieving oil and gas production that would be commercially viable. These omitted material facts undermined the Defendant’s public statements made during the Class Period, rendering them misleading. When publicly corrected, the markets’ reaction was immediate and harsh.

On September 7, 2021, when the Viceroy Report was published, ReconAfrica’s closing share price dropped from $6.50 to $5.90, or 12.8%, on record trading volume.