Third Zion Lawyer Letter

WITHOUT PREJUDICE Dear Messrs. Hempton and Maher, Our client has clearly indicated in its public filings relating to the Ma’anit-Rehoboth #2 well that the well logs indicate the presence of hydrocarbons in identified 'zones of interest'. Well logs are currently being evaluated to determine whether recoverable hydrocarbons in commercial quantities may be present in these zones. Our client further disclosed in its filings that this evaluation requires, among other things, testing the ‘zones of interest’ by the use of special rigs or other appropriate equipment, which it is in the process of obtaining. Dropping geophones into wells will not obtain an accurate picture of the quantity of hydrocarbons and the prospects of recoverability. We suggest that John Hempton and Bronte Capital immediately consult with expert oil and gas professionals... it is clear to us they are not... and then publish a clear retraction. We also suggest that John Hempton and Bronte Capital immediately consult with an expert in law... it is clear to us they are not... who can explain the laws of libel to you and then you should publish a clear retraction and apology. John Hempton and Bronte Capital have seen fit to make libelous statements and malign our client and its management with baseless, incorrect and very damaging assertions. We will allow John Hempton and Bronte Capital a further 24 hours to publish a retraction and apology. We will not continue responding to any messages. Finally, the above is not exhaustive of our client’s rights and we reserve the right (and intend to) to avail ourselves of all rights, privileges and defenses available to our client under law.