Ms. Catherine Flax reports

ZEFIRO METHANE CORP. PROVIDES UPDATE ON RECENT STRATEGIC EXECUTION AND MILESTONES ACHIEVED

Zefiro Methane Corp. has provided a consolidated update of its accomplishments following the appointment of Catherine Flax as Zefiro's chief executive officer and Michael Downs as chief financial officer in June of 2025. Along with Luke Plants as CEO of Zefiro subsidiary Plants & Goodwin Inc. (P&G), this team has led transformational change, driving vastly improved value for shareholders and charting a course for sustained long-term growth.

All financial figures listed herein are approximate and in United States dollars unless otherwise stated.

Overview of key highlights since June, 2025

• Expect revenue to be approximately $10.0-million for the current quarter (fiscal Q3 2026);
• On target to achieve a run rate of $40.0-million of revenue for fiscal year 2026;
• During the first half of Zefiro's fiscal 2026 year, Zefiro generated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $3.8-million, as well as $300,000 in positive net income;
• Reduced approximately $2.8-million of high-interest debt during the present fiscal quarter which was due within the calendar year of 2026;
• Completed the sale of 92,956 metric tonnes of carbon credits to four separate counterparties;
• Sustained win rate of over 30 per cent of all funding received by the State of Ohio from the phase 1 formula grant under the Infrastructure Investment and Jobs Act (IIJA);
• Expanded operations into Louisiana, the eighth state in which P&G has generated revenue;
• Monitored over 800 wells in West Virginia financed through the Methane Emissions Reduction Program (MERP).

Since June, 2025, Zefiro has made several notable achievements as outlined in greater detail below, while also laying the groundwork for generating further business value at scale going forward.

Luke Plants, chief executive officer, Zefiro Environmental Services, commented: "Working with Catherine since she stepped into CEO role has created a very pro-active growth-oriented environment that was needed to drive the business and capitalize on the immense opportunities in both segments of the business, environmental services and environmental markets."

Financial performance: During the first two full fiscal quarters under the current company's administration (each ended Sept. 30, 2025, and Dec. 31, 2025), Zefiro had record financial performance over this six-month period, with highlights that include those listed below:

• $22.2-million in revenue, an increase of nearly $4.7-million or approximately 27 per cent compared with the six months of the prior period;
• $8.1-million in gross profit, an increase of over $4.2-million or approximately 108 per cent compared with the six months of the prior period;
• $3.8-million in adjusted EBITDA, representing an improvement of almost $6.3-million compared with the six months of the prior period.

Zefiro also notably cleared $300,000 in net income during this six-month period, a monumental improvement over the operating loss of $6.1-million during the six months of the prior period.

Debt reduction: In January, 2026, the company completed a strategic transaction to eliminate more than $2.0-million in high-interest debt at the parent level. As a result, total parent-level debt was reduced by 65.7 per cent from $3.5-million to $1.2-million in 2026. The company further paid off the remainder of the $500,000 high-interest debt at the parent level with a new $300,000 promissory note due in 2027 and free cash flow from the business.

Carbon credit fulfilment: Zefiro completed its seventh sale of carbon credits during February, 2026. Zefiro has now sold carbon credits to four buyers, as a direct result of commercialization efforts by Tina Reine, who heads Zefiro's activities in the voluntary carbon markets. In August of 2025, Zefiro completed the first-ever sale of carbon offsets originated under the American Carbon Registry (ACR) methodology for orphaned oil/gas wells. After plugging a single well in Custer county, Oklahoma (ACR project 959), Zefiro was issued offsets reflecting confirmed emissions reductions of 92,956 metric tonnes of CO2 (carbon dioxide) equivalent. These were then delivered to institutional clients including Mercuria Energy America LLC and EDF Trading.

"We're actively working behind the scenes to prepare for ACR's updated orphan well methodology, which is set to be published this year and will give us the ability to continue originating and selling carbon offsets from plugging orphan oil/gas wells here in the United States," commented Zefiro's chief commercial officer, Tina Reine. "Zefiro was actually one of the only carbon offset originators to complete a deal of this size during the 2025 year in the voluntary carbon markets. The unique and transparent value proposition behind Zefiro's carbon offsets has enabled us to stand out in this hyper-competitive marketplace even when not many deals were being made, and we are keen to build upon that momentum, keeping carbon credits a continued focus for us at Zefiro as a fully integrated environmental services company."

Government contracts in Ohio: As of last month, P&G had won approximately 37 per cent of all funding received by the State of Ohio from the phase 1 formula grant under the Infrastructure Investment and Jobs Act. Between the months of June, 2025, and February, 2026, P&G was awarded more than $25-million worth of government-financed contracts in Ohio between a $19.6-million construction manager at risk (CMAR) three-year contract for marginal wells, another CMAR contract for orphan wells valued at $4.5-million, the Belmont 6 project for $420,784.45 and the Morrow 8 project for $522,233.

Expansion into Louisiana: In January, 2026, P&G commenced work on a three-month energy infrastructure project near Lake Charles, La., with more than $5-million in revenue to be realized upon completion. This expansion into Louisiana allowed full-scale work to be done during the winter months, which is traditionally "low season" in the plug-and-abandonment business. As a result of this expansion, Zefiro/P&G now have a footprint in eight states including Pennsylvania, New York, Ohio, West Virginia, Kentucky, Oklahoma, Virginia and Louisiana.

Methane monitoring: In July, 2025, the West Virginia Department of Environmental Protection awarded Zefiro a contract to perform preplugging and postplugging methane monitoring work, financed through the Methane Emissions Reduction Program (MERP) under the Inflation Reduction Act. An increased scope of work initially had this project valued at $800,000, though a later expansion further increased the total value to $1.3-million. To date over 800 wells have been monitored by Zefiro under this program.

Daryl Heald, a global philanthropist based in Tennessee who was also one of Zefiro's founding members on its board of directors, added: "These are very exciting times for Zefiro, both as a business that is now consistently driving positive EBITDA, but also as an environmental services company that is making a noticeable difference in American communities with each well that gets plugged. These efforts are only continuing to gain momentum as federal and state IIJA funds are expected to increase in the year 2026, particularly in states where Zefiro already has a strong presence. It continues to be a pleasure to work with Catherine and Zefiro's management team in our efforts to scale the Zefiro enterprise and further solidify the company's market presence."

About Zefiro Methane Corp.

Zefiro is an environmental services company, specializing in methane abatement. Zefiro strives to be a key commercial force towards 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.

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