On behalf of subsidiaries-Norley Corporation Inc: Contingent liability for an arbitration.

1.Parties to the legal matter:
  Petitioner: SeaRiver Maritime LLC
  Respondant: Tanker International
  Third party: Pacifica Maritime Limited (100% owned by Norley)
2.Name of the court or punishing agency of the legal matter:
  None, the arbitration is in its initial stages.
3.Reference/Case number of relevant documents of the legal matter:
  None.
4.Date of occurrence of the event:2022/01/26
5.Details of occurrence (including the matter under dispute):
  Oil tanker Elbhoff, owned by Pacifica Maritime Limited which is a
  100% owned subsidiary by the Company, joined the Tanker
  International’s pool operation and was assigned to provide
  charter service to SeaRiver Maritime LLC.
  Due to its engine failure caused delay for loading time,
  SeaRiver terminated the contract and hired substitute vessels.
  Subsequently, SeaRiver filed arbitration against Tanker International
  claimed US$7,066,097 for substitute rental costs and related port charges.
6.Handling procedure:
  Pacifica, as vessel owner, has potential liability and the claim
  has been filed to for arbitration in New York, USA and the document
  were exchanged on Jan 25, 2022, New York Time.
7.Impact on the Company’s finance and business and projected amount:
  The arbitration case is still in the initial stage of preparation,
  and the cause of the accident has yet to be clarified,
  so it is impossible to estimate its financial impact for the time being.
8.Countermeasures and improvement status:
  The Company will continue to follow up and track the progress of the case,
  and actively seek for settlement.
9.Any other matters that need to be specified:
  None.