Dear Shareholder and/or Friend of Zion:

This is an update of noteworthy events that have occurred since our last newsletter. In between updates, you should consult our website, press releases, and our SEC filings to keep up with company developments.

NEW ZION BOARD MEMBERMr. Glen H. Perry has re-joined the Zion Board of Directors, effective July 1, 2013.Glen was a founding member of Zion, serving on the Board of Directors and as President and Chief Operating Officer until 2009. He has been serving as our Israeli Operations Consultant. Mr. Perry resides in Tel Aviv and is a dual US-Israeli citizen.

He has a Master of Science degree in Petroleum Engineering from the University of Texas at Austin. He has over 40 years’ experience in the domestic and international petroleum energy field, specializing in project evaluation and development, as well as senior management of oil and gas exploration and production companies.

Mr. Perry will be filling the vacancy of departing board member, Mr. Julian Taylor.  Mr. Taylor was appointed a director in June 2009.  We greatly appreciate Julian’s dedicated service on Zion’s board for over four years.

FIELD OPERATIONSOn June 12, 2013, Zion’s Board of Directors, authorized spending up to $1.63 million toward upcoming operations in our Joseph and Asher-Menashe License areas.This dollar figure includes authorization to re-enter our Elijah #3 well to conduct in-well testing operations in hopes of finding commercially productive hydrocarbons.

Zion recently entered into a 2013 Workover Contract with Lapidoth Israel Oil Prospectors to use their rig and crew to conduct our upcoming operations.  We plan this field activity for September and October, 2013.

NEW MEGIDDO-JEZREEL LICENSE

Having reviewed our new license application and revised work plan, Israel’s Energy Ministry officially published our proposed license area boundaries (approximately 98,000 acres in Israel’s Megiddo and Jezreel Valley – see purple area in figure below).

The notice states that any other company has until September 3, 2013 to submit a competing application. After that date, there will be a second review and the license award can then be granted.

ANNUAL SHAREHOLDER MEETING OUTCOMEZion held its Annual Shareholder Meeting on Tuesday, June 11, 2013 in Dallas, Texas, with a great turnout of shareholders and supporters.Shareholders voted to elect/retain the following members of our Board of Directors: Robert Render, Justin Furnace, and Gene Scammahorn.

Shareholders also ratified the appointment of Malone Bailey, LLP, as Zion’s independent registered public accounting firm for 2013.

You can invest directly with Zion online and there is no need for a broker.We have a step-by-step online system that will help you enroll and invest with confidence.GO HERE to learn more about investing.

Remember: Our unit offering will continue until August 30, 2013.

GO HERE to learn more about our unit offering.

“And I will bless them that bless thee…”Genesis 12:2-3