CITIC RESOURCES: Seram Energy's claim against SKK Migas submitted to the Indonesian State Administrative Court has been accepted

According to the announcement from CITIC RESOURCES (01205), the board of directors has recently been informed by the company's indirect wholly-owned subsidiary, Seram Energy (the operator of the Seram block), that Seram Energy has submitted a claim to the Indonesian National Administrative Court against the special government agency SKK Migas, which is responsible for regulating upstream oil and gas activities under the Ministry of Energy and Mineral Resources of the Republic of Indonesia, on September 18, 2025. After consulting with its legal advisors, the board further learned that, according to the claim, Seram Energy is seeking a court order to suspend SKK Migas's order, which claims to appoint a "temporary operator" for the Seram block and replace Seram Energy, the current operator.

Seram Energy holds a 41% participating interest in the Seram block and has been the operator of the Seram block (located in eastern Indonesia for upstream oil exploration activities) since July 2006. To regulate the relationship among the contract participants, Seram Energy (as a contract participant) has also entered into a joint operating agreement with other contract participants. According to the joint operating agreement, an operating committee composed of representatives from each contract participant has been established to exercise comprehensive oversight of the operations in the Seram block. The operator of the Seram block is selected from the contract participants according to the procedures established in the joint operating agreement, which also stipulates (among other things) the conditions and procedures for replacing or dismissing the operator.

On August 11, 2025, SKK Migas issued a letter to the contract participants approving and appointing PIM (a contract participant with a 10% participating interest in the Seram block but not the operator) as the "temporary operator." Seram Energy believes that SKK Migas's decision violates applicable Indonesian laws and the provisions of the joint operating agreement for the following reasons: (i) there is no concept or procedure for appointing a "temporary operator" under applicable Indonesian law, and (ii) the appointment and/or dismissal of the operator for the Seram block should strictly follow the procedures and documentation requirements established in the joint operating agreement, and the claim to appoint PIM as the so-called "temporary operator" does not meet the relevant requirements.

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

As a result, Seram Energy submitted a claim to the Indonesian National Administrative Court against SKK Migas to suspend the execution of the letter dated August 11 until the court makes a decision on the legality of SKK Migas's claim to appoint PIM as the so-called "temporary operator." Seram Energy has been informed by its Indonesian legal advisor that the claim has been accepted by the Indonesian National Administrative Court, and according to Seram Energy's current understanding, the pre-hearing for the claim is scheduled to take place on October 2, 2025.

The company will take appropriate actions to actively safeguard its rights and legitimate interests regarding the Seram block under applicable laws and the joint operating agreement