Dear Friends and Family of Zion Oil & Gas –

Recent Israel Trip Update:

Victor Carrillo (Zion’s Executive VP and Director) and I just returned from Israel where we had a busy week accomplishing many tasks and meeting key people to advance our mission in Israel.

Richard, Victor and I went to Jerusalem for a meeting with Dr. Michael Gardosh, a Geophysicist and Geologist, who is Israel’s current Petroleum Commissioner and Dr. Avi Honigstein, a Geologist, who is Israel’s Deputy Petroleum Commissioner. The purpose of this meeting was to discuss the status of our current licenses, work programs and applications for new licenses and permits. The meeting also provided the opportunity for Victor Carrillo, currently involved with the Interstate Oil & Gas Compact Commission (IOGCC — an association of all oil and gas producing states in the U.S. and certain international affiliates) to personally present Dr. Gardosh with a personal invitation from IOGCC’s Chair, Governor Mary Fallin of Oklahoma, to attend an upcoming meeting and join the International Affiliate program. Involvement with IOGCC would assist Israel as they begin to develop an oil and gas regulatory structure similar to what has already been done in other key oil and gas producing regions of the U.S. and Canada. The overall meeting was cordial and they both are well aware that Zion has been pursuing a relentless exploration program in Israel, which includes spending a lot of time and money on drilling wells and re-processing existing seismic data and acquiring new data. We all are very optimistic about finding more oil and gas in Israel.

We also visited with Dr. Shimon Cohen, a Geologist and personal friend of mine for over 20 years. Shimon introduced Victor, Richard and me to Dr. Baruch Derin, a Geologist whose expertise is the Triassic and Permian geological periods of Israel. Dr. Derin is also the founder of Globe Exploration — an Israeli oil company planning to drill a well within the next few months in Northern Israel with their target within Triassic rocks. Both Dr. Cohen and Dr. Derin have offered their services as Geological Consultants to Zion (free of charge). They are both concerned that Israel needs to find more oil as quickly as possible and they want to help us if they can.

For your information, many people assume there has never been any oil found in Israel. This is just not true. For example, the Heletz Oil Field has produced over 17 million barrels of oil since it was discovered in 1955 and may have future exploration potential that is even now being tested by Lapidoth (an Israeli oil and drilling company owned by Mr. Ya’acov Luxembourg). Victor Carrillo, also a Geologist and Geophysicist, believes this area of Israel may have lots of future potential, but additional geological and geophysical studies are needed to confirm this.

Richard and I met with Mr. Luxembourg of Lapidoth in our Israel offices. Lapidoth is currently completing a new well on his Heletz Field License. Over the past, Mr. Luxembourg has shown an interest in drilling our future wells in Israel. Richard has an ongoing dialog with Ya’acov who has said that if he isn’t awarded the current MoU for drilling three new wells for Zion in Israel and for the possible future creation of Zion Drilling, then he is willing and able to be the back-up contractor to whomever is awarded the new MoU as our primary well drilling contractor in Israel.

Also while in Israel, Victor Carrillo met with Dr. Uri Frieslander and Dr. Yuval Ben-Gai of the Geophysical Institute of Israel. They discussed and are currently finalizing acquisition of new seismic data in our Jordan Valley License area which should help us to better understand our future drilling prospect there. Zion is also likely to consult with Dr. Ben-Gai in taking a fresh new look at all of our three current license areas in Israel. It is essential that Zion better understands the overall geology of our license areas before drilling our next well(s).

Victor and Aaron Kahn (staff geologist in Israel) went to Tel Aviv University to discuss an exciting area of research conducted by Dr. Lev Eppelbaum (Geophysicist) and Dr. Youri Katz (Geologist) that was recently reported in the media. According to the media reports, the scientists applied an integrated and interdisciplinary approach that resulted in amore accurate and in-depth land survey of Israel and the surrounding Mediterranean area than ever before. Their findings suggest some likely places to find reservoirs of oil and natural gas andmay be able to put critical information in the grasp of today’s scientists. We had a good meeting and agreed to stay in touch as we review our areas of interest.

All in all, we had a very productive trip to Israel. This information is all I can share with you for now, but while there is still a lot of work to do, we cannot guarantee anything other than we are doing our best and we will announce publicly to everyone as our agreements/contracts are finalized and legally filed with the SEC.

In the meanwhile, we need you all to remain calm and trust in the Lord that we are moving steadily ahead as we are being led. (Psalm 32:8) We are as determined as ever to fulfill the Vision (Hab. 2:3) and any fear or listening to unfounded rumors are just not in Zion’s stockholder’s best interest and please don’t forget to pray for Israel, Jerusalem and Zion Oil (Psalm 62:8).