CITIC Resources (01205) announced that the board of directors was recently informed by Seram Energy, an indirect wholly-owned subsidiary of the company and operator of the Seram Block, that Seram Energy filed a claim with Indonesia's State Administrative Court on September 18, 2025, against SKK Migas, a special government agency under the Ministry of Energy and Mineral Resources of the Republic of Indonesia responsible for regulating upstream oil and gas activities.

After consulting with its legal advisors, the board further learned that through this claim, Seram Energy is seeking a court order to suspend SKK Migas' directive that purportedly appoints an "interim operator" for the Seram Block to replace Seram Energy as the current operator.

Seram Energy holds a 41% participating interest in the Seram Block and has served as the operator of the Seram Block (upstream oil exploration operations located in eastern Indonesia) since July 2006. To govern relationships among contract parties, Seram Energy, as a contract party, has also entered into a joint operating agreement with other contract parties. Under the joint operating agreement, an operating committee composed of representatives from each contract party has been established to exercise comprehensive supervision over Seram Block operations.

The operator of the Seram Block is selected from among the contract parties according to procedures established in the joint operating agreement, which also sets forth conditions and procedures for replacing or removing operators, among other provisions.

On August 11, 2025, SKK Migas issued a letter to the contract parties approving and appointing PIM (a contract party holding a 10% participating interest in the Seram Block but not serving as operator) as the "interim operator."

Seram Energy believes that SKK Migas' decision violates applicable Indonesian law and provisions of the joint operating agreement because: (i) applicable Indonesian law contains no concept or procedure for appointing an "interim operator," and (ii) the appointment and/or removal of the Seram Block operator should strictly follow the procedures and documentation requirements established in the joint operating agreement, and the purported appointment of PIM as the so-called "interim operator" does not meet these requirements.

Seram Energy subsequently issued a written administrative objection notice to SKK Migas on August 19, 2025, protesting and opposing its decision in the August 11 letter. According to Article 77(4) of Government Administration Law No. 30 of 2014 (as amended), SKK Migas was required to respond to Seram Energy's objection within 10 working days (by September 2, 2025). However, after the deadline expired, SKK Migas failed to respond to Seram Energy's written administrative objection.

Therefore, Seram Energy filed a claim with Indonesia's State Administrative Court against SKK Migas to suspend execution of the August 11 letter until the court decides on the legality of SKK Migas' purported appointment of PIM as the so-called "interim operator."

Seram Energy has been informed by its Indonesian legal advisors that the claim has subsequently been accepted by Indonesia's State Administrative Court, and according to Seram Energy's current understanding, a preliminary hearing for the claim is scheduled for October 2, 2025.

The company will take appropriate action to actively protect its rights and legitimate interests regarding the Seram Block under applicable law and the joint operating agreement.