Ms. Catherine Flax reports

ZEFIRO'S MANAGEMENT TEAM HIGHLIGHTS KEY BUSINESS SEGMENTS DRIVING GROWTH IN 2026 FOLLOWING LANDSLIDE PROXY CONTEST VICTORY

Zefiro Methane Corp. is excited to highlight its key business segments and focus areas for continued performance and growth, following a significant proxy contest victory last week at the company's annual and special meeting of shareholders. This victory ensured that the incumbent leadership team that drove significant positive change since June, 2025, would remain at the helm of Zefiro, with the addition of London-based venture investor Hudheifa Moawalla to the company's board of directors.

Going forward, Zefiro's business model will focus on the two main categories outlined below, which were chosen to prioritize the company's established legacy operations. Zefiro's plug and abandonment (P&A) operations have consistently driven revenue, while recently proving to be both scalable and profitable. With this financial stability, Zefiro is suitably positioned to further pursue endeavours such as proprietary technology development and carbon offset origination, which both have significant high-growth potential in the long term.

Environmental services

This category primarily represents Zefiro's core business, which drives steady cash flow from a robust pipeline of oil/gas well plugging projects for clients in both the public and private sectors, as well as methane emissions monitoring.

Plug and abandonment, remediation for infrastructure/commercial projects

For government contracts in this subcategory, Zefiro subsidiary Plants & Goodwin Inc. (P&G) has sustained a solid win rate, notably including 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).

P&G currently has revenue-generating operations for this category in several jurisdictions. States where P&G is either currently operating or has recently had operations include:

1. Pennsylvania;
2. New York;
3. Ohio;
4. West Virginia;
5. Kentucky;
6. Oklahoma;
7. Virginia;
8. Louisiana.

The states listed above collectively represent approximately just one-third of all U.S. states with known unplugged oil/gas wells. This means Zefiro can still expand into approximately two-thirds of these other states, representing untapped potential for further growth.

Orphan well projects are continuing to be released by government agencies at a steady pace. P&G is actively bidding on these contracts, and expects its crew and equipment fleet to be fully utilized throughout the spring/summer/fall seasons of 2026.

P&G has also been providing services to clients in industries besides the oil and gas sector. Various types of unplugged wells can pose a hazard to or impede the building/expansion of infrastructure facilities (power plants) or commercial structures (factories, warehouses).

Some recent examples of these types of projects done by P&G include:

• A $5-million (U.S.) contract for the remediation of nine wells in the Lake Charles, La., area for a private infrastructure developer building a major energy facility;
• Surveying and plugging several wells on two build sites for warehouses owned and operated by a major global e-commerce player;
• A $1.5-million (U.S.) project to plug nine marginal wells in Indiana county in Pennsylvania for the advancement of a large-scale infrastructure project converting a coal-fired power plant into a cleaner, natural gas-fired power plant.

Zefiro is pleased to announce that the Louisiana project, which began in January of 2026, was recently completed three weeks ahead of schedule. P&G is now a licensed Louisiana contractor, which, combined with this portfolio project, will allow for further expansion of Zefiro's presence in this key market.

Emissions monitoring and quantification

Under the Inflation Reduction Act, the Environmental Protection Agency (EPA) recently launched its methane emissions reduction program (MERP), providing $1.36-billion (U.S.) in financial and technical assistance to address methane emissions, which encompasses monitoring, detection, measurement and quantification of emissions.

In July of 2025, Zefiro announced that it secured its first-ever contract under the MERP program, administered by the West Virginia Department of Environmental Protection (subcontracted by North Wind Site Services). The initial scope of this project was for approximately $800,000 (U.S.) worth of work to perform preplugging and postplugging measurements, though it was later increased to a total of $1.3-million (U.S.). To date, more than 700 wells have been monitored under this contract.

Zefiro plans to further commercialize its emissions monitoring capabilities throughout 2026. Being an asset-light operation with very low capex and opex burdens, Zefiro is able to scale its methane monitoring footprint quite rapidly with a very low threshold for attaining profitability in this business category.

Environmental markets: carbon origination and sales

In 2025, Zefiro completed the first-ever sale of carbon offsets under the American Carbon Registry's methodology for orphan wells. These were delivered to Mercuria and EDF Trading.

Zefiro chief commercial officer Tina Reine is actively working with entities developing new methodologies for orphaned, abandoned and marginal wells, which are expected to be completed in the coming months. These methodologies will give Zefiro the ability to resume originating carbon offsets from well-plugging projects, bringing much needed supply of high-quality American carbon offsets to the voluntary carbon markets, for which there is persisting demand from institutional purchasers.

Management and board commentary

Zefiro chief executive officer Catherine Flax commented: "Our team is very excited to be entering a promising new era for Zefiro, in which we are prioritizing measurable outcomes and positive shareholder value instead of novel pursuits with no immediate path towards revenue. With Zefiro being among the three largest operators in the U.S., focused primarily on well plugging and end-of-life well remediation, this is a market position we need to sustain and fully capitalize on as the marketplace only continues to grow in size. Now that we have properly straightened out Zefiro's board of directors, the company is better positioned than ever to take a focused, disciplined and results-oriented approach to its decision-making and planning for the future. We thank our valued shareholders for their votes and support, as we gear up to make 2026 Zefiro's very best year yet."

London-based venture investor Hudheifa Moawalla, who was appointed to Zefiro's board of directors last week, commented: "I'm delighted to join Zefiro at this pivotal time for the company, as momentum continues to build in each of its operating segments. I invested in the business in its early stages and have a deep understanding of the generational challenges, responsibilities and opportunities Zefiro faces head on."

Mr. Moawalla continued: "As a global investor in emerging industries, the convergence of several factors makes Zefiro stand out as unique. Besides being a fully integrated provider with multiple profitable revenue streams, Zefiro is also a trusted partner of several U.S. government agencies, a preferred vendor for major private-sector customers and a first mover in the carbon markets. Zefiro is rapidly cementing itself as a nationwide leader in methane abatement, whose work is both critical and category defining. As part of the board of directors, I look forward to supporting Catherine and the highly talented and dedicated Zefiro team to drive the business forward."

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 tool kit 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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