Ms. Catherine Flax reports

ZEFIRO METHANE CORP. ANNOUNCES RECORD QUARTERLY EARNINGS WITH REVENUE OF USD $12.1 MILLION

Zefiro Methane Corp. has released its consolidated financial results for the fiscal quarter that ended Sept. 30, 2025 (first quarter 2026).

Fiscal quarter 2026 results (1):

• Zefiro achieved record quarterly revenue of approximately $12.1-million, an approximately 21-per-cent increase over the company's previous record quarterly revenue, in the first quarter of fiscal 2025.
• Operating expenses declined approximately $1.3-million to $3.1-million, compared with $4.4-million in the first quarter of fiscal year 2025, resulting in positive net income and free cash flow for the current quarter (2):
  • G&A (general and administrative) expenses decreased from $1.03-million last year to $550,000 this year (an approximately 47-per-cent decrease).
  • Salaries and benefits decreased from $1.33-million last year to $1.12-million this year (an approximately 16-per-cent decrease).
• Strong top-line performance combined with disciplined cost control resulted in record quarterly EBITDA (earnings before interest, taxes, depreciation and amortization) of approximately $2.6-million for the first quarter 2026.

Chief executive officer Catherine Flax commented: "This performance reflects the effectiveness of Zefiro's new management team, and our strategic focus on revenue generating business lines. We have conducted a thorough review of all expenses and implemented measures to eliminate unnecessary spending. Alongside these decisive cost-cutting initiatives, the team has executed strongly in the field, driving revenue growth through improved operational performance. By streamlining operations and maintaining a sharp focus on efficiency, the Company has strengthened its financial foundation and is well positioned for sustained profitability and growth as it enters fiscal 2026."

Recent highlights:

• Zefiro has been awarded a second material federally funded project in Ohio, consisting of 37 orphan wells. This project marks a significant initiative for the company in a strategically important market. Operations on the new project are expected to begin in November and continue through spring of 2026, providing additional revenue to offset normal seasonal fluctuations.
• Zefiro recently secured a two-year well retirement contract with a top-tier industry operator, expanding the company's partnership.
• In August, 2025, the company completed the first publicly announced sale of carbon offsets from its ACR project 959 (ACR959), delivering the initial tranche of certified credits to Mercuria Energy America LLC. This issuance verified a reduction of 92,956 metric tons of CO2 (carbon dioxide). The company has since delivered carbon credits to two additional strategic buyers, underscoring the growing demand for its verified emissions reductions.
• In September, 2025, the company repaid and retired its $350,000 promissory note from X Machina Capital Strategies Fund I LP.
• In November, 2025, the company repaid and retired its $100,000 promissory note from X Machina Capital Strategies Fund I. This repayment further demonstrates Zefiro's commitment to financial discipline and reducing its debt obligations

Looking ahead:

• The second quarter of fiscal year 2026 is expected to be another strong quarter, as preliminary October results point to one of the highest revenue months in the company's history. This momentum reflects continued demand for the company's service offerings and strong execution across all business lines. Under the leadership of Luke Plants, chief executive officer of subsidiary Plants & Goodwin, the company has sharpened its focus on core service lines, driving sustained revenue growth and improved financial performance.
• With the company's renewed focus on revenue generation and cost discipline, Zefiro is prioritizing future free cash flow over the next six months toward reducing outstanding debt, strengthening its balance sheet and enhancing financial flexibility for future growth initiatives.

About Zefiro Methane Corp.

Zefiro is an environmental services company, specializing in methane abatement. Zefiro strives to be a key commercial force toward active sustainability. Leveraging decades of operational expertise, Zefiro is building a new toolkit to clean up air, land and water sources directly impacted by methane leaks. The company has built a fully integrated ground operation driven by an innovative monetization solution for the emerging methane abatement marketplace. As an originator of high-quality United States-based methane offsets, Zefiro aims to generate long-term economic, environmental and social returns.

(1) Please refer to Zefiro's SEDAR+ profile for full filings containing these financial results.

(2) Free cash flow is a non-IFRS (international financial reporting standards) financial measure; additional details and reconciliations to comparable IFRS measures are provided in the company's most recent MD&A (management's discussion and analysis), available on SEDAR+.

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