Letter To Shareholders

15 February 2024
Dear Shareholders,
The Molopo Board wishes to advise shareholders that the scheduled mediation of the long running
litigation commenced in 2011 between 31005682 Nova Scotia ULC (310) as Plaintiff and Molopo
Energy Canada Ltd (MECL) and Crescent Point Holdings Inc (Crescent Point) as Defendants was
conducted in Calgary on 5th and 6th of December 2023. MECL was represented by the Chair of
Molopo Energy Ltd Mr Roger Corbett AO and the company’s legal counsel Mr Stephen Williams.
Your current board, who were not involved when the litigation action commenced, and have been and
remain diligent in their approach in defending the matter to protect shareholders’ interests.
The mediation was conducted by an experienced mediator in oil and gas transactions who was across
all the issues in this complicated litigation. Despite the mediator’s attempts to narrow the issues in
dispute and get all parties to agree a compromise and with best efforts made by the Defendants, the
parties were so far apart and the mediation negotiations were terminated on the second day without a
satisfactory outcome. The Board also waited for an appropriate time following the mediation to ensure
that there was no likelihood of any follow-up negotiations for settlement. The matter is now scheduled
for trial in or about July 2024 unless further settlement negotiations are instigated closer to the trial
date.
The Board subsequently received an invitation along with the other parties to participate in a Court
facilitated mediation overseen by a Supreme Court Justice which required all parties to agree to
participate. Having participated in good faith in the earlier mediation and given the 310 position at
that time, there appeared little point in participating in a further mediation and incurring additional
associated expense. We have been advised 310 did not pursue the invitation and given the 310
position at the December mediation, Crescent Point also saw no benefit and was not inclined to accept
the Court’s invitation.
MECL is now proceeding to prepare for trial to defend its position and will keep shareholders
informed of progress as the trial approaches