Mr. Andrea Cattaneo reports

DISTRIBUTION OF UNITS

Subject to regulatory approval, Zenith Energy Ltd. has distributed units to Optiva Securities Ltd. under the previously announced private placement. Each unit consists of one common share in the capital of the company and one common share purchase warrant. Please refer to the company's press releases dated Dec. 5 and Dec. 16, 2014, for more information.

Following this distribution, Optiva will hold 1,633,159 common shares of the company, representing approximately 6.58 per cent of the issued and outstanding shares of the company and 1,633,159 common share purchase warrants. Assuming the exercise of the common share purchase warrants in full, Optiva would beneficially own or control an aggregate of 3,266,318 common shares of the company, representing approximately 12.35 per cent of the issued and outstanding common shares of the company on a fully diluted basis.

Optiva relied on Section 2.3 of National Instrument 45-106 (prospectus and registration exemptions) as it meets the definition of an accredited investor under securities legislation. Optiva is investing in the company in the ordinary course of business and may, in the future, make additional investments in or dispositions of the company's securities.

Optiva will file a report (as contemplated by National Instrument 62-103 (the early warning system and related takeover bid and insider reporting issues)) in connection with the acquisition of units under this second tranche of the private placement. A copy of the report may be obtained from SEDAR. Nothing in this press release or in the filing of the report mentioned herein is an admission that any person named in the report is a joint actor with another named entity.

We seek Safe Harbor.