Bradford, Pennsylvania--(Newsfile Corp. - November 12, 2026) - Zefiro Methane Corp. (CBOE CA: ZEFI) (FSE: Y6B) (OTCQB: ZEFIF) (the "Company", "Zefiro", or "ZEFI"), a North American environmental services company specializing in the maintenance, remediation, and plugging of orphaned and end-of-life oil and gas wells for methane abatement, has reported its financial results for the first quarter of fiscal 2027 ended September 30, 2026. All figures are presented in U.S. dollars unless otherwise noted.

First Quarter Fiscal 2027 & Subsequent Operational Highlights:

• Generated quarterly revenue of $12.1 million, a sequential increase of 30.7% from the fourth quarter of fiscal 2026.
• Increased gross profit 43.1% sequentially to $2.5 million as gross margin expanded to 20.4% from 18.6% in the fourth quarter of fiscal 2026, while net loss narrowed to $2.4 million from $2.8 million and adjusted EBITDA turned positive at $0.1 million, a $0.7 million sequential improvement.
• Ramped the equipment fleet acquired from Viking Well Service to approximately $1.5 million of revenue in August and September 2026.
• Awarded an $11.5 million state-funded well plugging contract, with work scheduled to continue through June 2029.
• Grew backlog of government well plugging projects (excluding private sector) to approximately $40 million, with projects extending through June 2029, providing strong revenue visibility to support high rig utilization rates.
• Supported the development of Isometric's new Orphaned Well Plugging Protocol, which, once finalized, is expected to allow Zefiro to resume originating carbon credits from the plugging of orphaned wells.
• Completed a non-brokered private placement in October 2026 for gross proceeds of approximately C$5.0 million.

Management Commentary

Catherine Flax, Interim Chief Executive Officer of Zefiro, said: "Coming into fiscal 2027, we set two priorities: put the Viking fleet fully to work and turn the largest contracted pipeline in our history into revenue. The first quarter delivered progress on both. Revenue grew 31% from the fourth quarter to $12.1 million, and the equipment we acquired from Viking Well Service continued to ramp up, in line with our expectations, while taking our crews into Indiana and Michigan for the first time.

"Profitability moved in the right direction, although we still see meaningful room for improvement. Gross margin improved to 20.4% from 18.6% in the fourth quarter, our net loss narrowed by $0.4 million, and adjusted EBITDA returned to positive territory. Our direct operating costs now reflect a larger fleet and field workforce than we had a year ago, as well as higher fuel costs, and the margin opportunity from here lies in running that capacity at higher utilization.

"We enter the second quarter with approximately $40 million of awarded government work extending through June 2029, alongside seven new Master Service Agreements with corporate clients that the Viking acquisition made possible. In October, we completed a C$5.0 million private placement, adding working capital as we scale.

"Looking ahead into fiscal 2027, our focus is on turning that pipeline into revenue at better margins and keeping our rigs and crews fully utilized, while continuing to earn work on execution rather than on price," concluded Flax.

First Quarter Fiscal 2027 Financial Results Summary

Revenue for the first quarter of fiscal 2027 was $12.1 million, up 0.1% from $12.1 million in the same year-ago quarter and up 30.7% sequentially from $9.3 million in the fourth quarter of fiscal 2026. Excluding $0.3 million of carbon credit sales recognized in the year-ago quarter, revenue increased 2.8% year-over-year, led by a 6.2% increase in service rig revenue to $7.8 million and higher construction revenue from the Company's first carbon sequestration project, partially offset by lower cementing, wireline and transportation revenue reflecting the timing of customer programs. The sequential increase reflects the ramp-up of the equipment fleet acquired from Viking Well Service, which generated approximately $1.5 million of revenue in August and September 2026.

Gross profit was $2.5 million, or 20.4% of revenue, in the first quarter of fiscal 2027, as compared to $4.6 million, or 37.8% of revenue, in the same year-ago quarter. The year-over-year decline reflects a larger field cost base - including the rigs and crews added through the Viking Well Service acquisition and the field employees Plants & Goodwin hired in June 2026 to serve new corporate accounts - which lifted field salaries and benefits to $4.2 million from $3.3 million, as well as higher equipment rental, fuel, and repair and maintenance costs and the absence of higher-margin carbon credit sales recognized in the year-ago quarter. Gross margin improved sequentially from 18.6% in the fourth quarter of fiscal 2026, as revenue growth outpaced the increase in direct operating costs with the Viking fleet and crews running at higher utilization.

Operating expenses totaled $4.2 million in the first quarter of fiscal 2027, as compared to $2.8 million in the same year-ago quarter. Approximately $0.9 million of the increase reflected non-cash items, as share-based compensation rose to $0.8 million on the vesting of restricted share units granted in April 2026 and new grants in July and September 2026, and amortization increased to $1.1 million on recent equipment additions, including the Viking Well Service fleet.

Net loss for the first quarter of fiscal 2027 was $2.4 million, or $(0.02) per basic and diluted share, as compared to net income of $0.6 million, or $0.01 per basic and diluted share, in the same year-ago quarter, and a net loss of $2.8 million, or $(0.03) per basic and diluted share, in the fourth quarter of fiscal 2026.

Adjusted EBITDA, a non-IFRS measure, was $0.1 million in the first quarter of fiscal 2027, as compared to $2.8 million in the same year-ago quarter and an adjusted EBITDA loss of $0.6 million in the fourth quarter of fiscal 2026.

About Zefiro Methane Corp.

Zefiro Methane Corp. (Cboe Canada: ZEFI) (Frankfurt: Y6B) (OTCQB: ZEFIF) is a North American environmental services company specializing in the maintenance, remediation, and plugging of orphaned and end-of-life oil and gas wells for methane abatement. Through operating subsidiary Plants & Goodwin, Inc., a third-generation well services company with a 50-plus-year operating history, Zefiro is vertically integrated across the well lifecycle - measurement and monitoring, maintenance and remediation, plugging and abandonment, site restoration, and carbon credit origination - serving government and private-sector customers across 15 U.S. states. For more information, visit zefiroglobal.com.

ZEFIF@mzgroup.us 
www.mzgroup.us

Use of Non-IFRS Financial Measures

This press release includes EBITDA and adjusted EBITDA, non-IFRS financial measures that do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. The Company defines EBITDA as net income (loss) for the period before interest, income taxes, and amortization, and defines adjusted EBITDA as EBITDA further adjusted to exclude share-based compensation and other non-operating and non-recurring items, including impairment of property and equipment, changes in the fair value of investments and of the derivative liability, losses on the settlement and modification of debt, foreign exchange, and gains on the sale of equipment. Management believes these measures, when considered together with the corresponding IFRS measure, provide useful information to investors and management regarding financial and business trends relating to the Company's results of operations, as they remove the effect of non-cash charges and of items that are not indicative of the Company's underlying operating performance. Adjusted EBITDA has significant limitations, in that it does not reflect all of the costs and other items associated with the operation of the Company's business as determined in accordance with IFRS, including interest, income taxes, amortization, and the capital expenditures required to maintain the existing equipment fleet. It should be considered in addition to, and not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS. A reconciliation of adjusted EBITDA to net income (loss) for the period, its most directly comparable IFRS measure, is presented below.

Adjusted EBITDA Reconciliation
(in U.S. dollars)

(1) Change in fair value of investments and of the derivative liability.
(2) Foreign exchange and gain on sale of equipment.

Notice Regarding References to Zefiro Entities

In this press release, the standalone name/term "Zefiro" collectively refers to both (i) Zefiro Methane Corp. (incorporated in the province of British Columbia, Canada) and (ii) Subsidiaries of Zefiro Methane Corp. unless explicitly stated or otherwise implied by the context. Likewise, first-person linguistic mechanisms such as "We", "Our", and "Us" also collectively refer to Zefiro Methane Corp. and its subsidiaries unless explicitly stated or otherwise implied by the context.

For instances in which a precise entity must be identified, the exact legal name of the entity in question will generally be stated (e.g., "Zefiro Methane Corp." would refer to this entity only and not any of its subsidiaries).

This convention is used only for convenience to facilitate simple and plain-language disclosures to investors, and a comprehensive overview of Zefiro Methane Corp.'s subsidiaries that are collectively referred to with the "Zefiro" name/term can be found in the Company's most recent MD&A, which can be accessed on SEDAR+ at www.sedarplus.ca/.

Forward-Looking Statements

This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian and U.S. securities laws (collectively, "forward-looking statements"). These statements are based on the current expectations, estimates, projections, beliefs, and assumptions of management of the Company as of the date of this news release. Forward-looking statements may be identified by words such as "anticipates," "expects," "intends," "plans," "believes," "estimates," "may," "will," "should," "could," "potential," and similar expressions, although not all forward-looking statements contain such words. These statements include, without limitation, expectations concerning the Company's operational outlook and priorities for fiscal 2027, project backlog and the work expected to be performed in the second quarter of fiscal 2027, existing and anticipated private and/or government contracts and Master Service Agreements, the anticipated benefits of the Viking Well Service equipment acquisition and associated revenue run rates, the finalization of carbon credit methodologies and the Company's ability to resume originating carbon credits, the intended use of proceeds from the private placement, expected revenues, margins, and financial performance, timing and scope of project execution, private and/or government funding and work authorizations, business opportunities, and future operations. Such statements are based on assumptions considered reasonable by management, including the continued availability of private and/or government funding, anticipated project schedules and scopes of work, timely receipt of necessary approvals and authorizations, availability of personnel and operational resources, and the absence of material adverse changes in economic, regulatory, or market conditions.

Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, many beyond the Company's control, that could cause actual results to differ materially from those expressed or implied. These factors include, without limitation: (i) adverse economic and market conditions; (ii) changes in private or government funding, policies, regulations, or environmental programs; (iii) delays, modifications, reductions, or cancellations of contracts or projects, including changes in the timing, scope, funding, work authorizations, or payments associated with the Company's backlog; (iv) uncertainty regarding the volume and timing of work authorized or performed under the Master Service Agreements and the Company's ability to realize the anticipated benefits of the Viking Well Service equipment acquisition; (v) operational, technical, environmental, permitting, labor, fuel, and equipment-related risks affecting project execution or costs; (vi) financing, liquidity, and working capital requirements; (vii) fluctuations in commodity prices, carbon credit markets, and demand for environmental services, including delays in or changes to the finalization of carbon credit methodologies; and (viii) reliance on customers, government agencies, contractors, suppliers, and other third parties. Additional risks are described in the Company's management's discussion and analysis, annual information form, and other continuous disclosure filings available on SEDAR+ at www.sedarplus.ca. These risks are not exhaustive. Although management considers its assumptions reasonable, there can be no assurance that anticipated results or events will occur as expected or at all. Readers should not place undue reliance on these statements, which speak only as of the date of this news release. The Company undertakes no obligation to publicly update or revise them, except as required by applicable law.

Also, this news release may include market and industry data obtained from various publicly available sources and other sources believed by the Company to be true. Although the Company believes it to be reliable, the Company has not independently verified any of the data from third-party sources referred to in this news release or analyzed or verified the underlying reports relied upon or referred to by such sources, or ascertained the underlying assumptions relied upon by such sources. The Company does not make any representation as to the accuracy of such information.

This news release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Zefiro Methane Corp., nor shall it form the basis of or be relied upon in connection with any investment decision.

Statement Regarding Third-Party Investor Relations Firms

Disclosures relating to investor relations firms retained by Zefiro Methane Corp. can be found under the Company's profile on SEDAR+ at www.sedarplus.ca/.

Condensed Interim Consolidated Statements of Financial Position
(Expressed in U.S. dollars)

Condensed Interim Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited)
(Expressed in U.S. dollars, except per share data)

Comparative figures reclassified to present employer benefit costs within cost of revenues.

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