Certain information contained in this notice would have been considered inside information within the meaning of Article 7 of Regulation (EU) No 596/2014 until the publication of this Communication. The proceeds of the loan will be used for general working capital purposes and to support the operational activities described in the June 30, 2020 announcement issued by the business and operations update company, including the ongoing development drilling program at West Bortovoy and the feasibility study and related engineering and design work at East Bortovoy. Zoltav (AIM: ZOL), the Russia-focused oil and gas exploration company, announces that the Company has entered into a loan agreement with ARA Capital Holdings Limited, under which ARA Capital Holdings Limited has granted a revolving credit facility of up to $9,000,000 (the “Loan”). ARA Capital Holdings Limited is the parent company of ARA Capital Limited – the two companies together hold 44.1% of the share capital issued by the company. The loan is currently repayable until August 15, 2020, unless extended or converted into equity by mutual agreement, and in the event of conversion, subject to shareholders` agreement. The loan is interest-free, except in case of inoperative repayment, under what circumstances the loan is remunerated at the interest rate of 15% per year. The company is currently studying strategies for marketing the eastern fields of the Bortovoy license. As announced on June 30, 2020, management has conducted preliminary discussions with a number of potential project funding providers for the Development of East Bortovoy, including possible future equity contributions to the project that may be required to secure such funding. In the event of a positive final investment decision for this project in a timely manner, it is currently expected that the loan will be restructured in order to facilitate a necessary capital injection or part of it. (1) US$2,000,000 which is made available unconditionally and which has been used by the Company; and “We are pleased to have secured the financial support of a major shareholder.

Such funding is necessary to advance the East Bortovoy feasibility study so that the Board of Directors can secure project funding and make a final investment decision, and to support the West Bortovoy development drilling program necessary to maintain production. Zoltav holds the Bortovoy license in the Saratov region of southwestern Russia, an area of 3,215 km² located on the northern periphery of the pre-Kaspic basin, one of the largest hydrocarbon basins in the CIS. . . .

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