Dr. Talal Debs reports

ZEFIRO FOUNDER ANNOUNCES PARTIAL DISMISSAL OF NEW YORK LITIGATION AND COMMENTS ON ANNUAL MEETING RESULTS

Zefiro Methane Corp. founder Dr. Talal A. Debs's motion to dismiss of a New York civil case (the N.Y. litigation) brought by David McGrath against Dr. Debs, X Machina Capital Strategies Fund I GP LLC (XMC) and X Machina Capital Strategies LP (XMST) was granted in part. In a decision delivered March 19, 2026, a New York court dismissed multiple allegations included in the N.Y. litigation. Dr. Debs is confident he and XMC will prevail with respect to the remaining counts.

The N.Y. litigation was used by Zefiro's board of directors as a pretext for a frivolous investigation into Dr. Debs which was launched at considerable expense to shareholders. The board then repeatedly cited the existence of the investigation to discredit Dr. Debs in his bid to elect a slate of directors at the company's annual general and special meeting of shareholders which was held on March 20, 2026.

Mr. McGrath worked with the board to entrench the incumbent directors. He also sought unsuccessfully to block XMC's ability to function and to prevent XMC from voting its Zefiro shares at the meeting; these attempts were dismissed by a court and securities regulator, respectively.

In separate litigation, Zefiro chief executive officer Catherine Flax has filed a suit against XMC in which she makes additional false claims. Regrettably, the cynical nature of the Mr. McGrath and Ms. Flax actions has necessitated XMC filing suit against them in Florida for various matters, including tortious interference, civil conspiracy and defamation.

Commentary on the future of Zefiro Methane

As announced by the company, Dr. Debs was unsuccessful in his efforts to elect directors to the board at the meeting. Dr. Debs respects the decision Zefiro shareholders made based on the information available to them. Through XMC and XMST, he remains a significant shareholder, and plans to hold the board and management team to account on decisions affecting the company.

Dr. Debs commented: "I am grateful to have had the opportunity to contribute to Zefiro as its founder, CEO and chairman over the past several years. We have established a solid foundation upon which to build an environmental services leader with exciting growth prospects.

"I believe the proxy campaign raised awareness of important issues in the areas of governance and transparency at Zefiro and will likely lead to improvements going forward. It also played a key role in an improved balance sheet and a higher share price and therefore expanded strategic options. These results have benefited all shareholders including XMC. Furthermore, XMC has retained its right to acquire additional shares representing up to 7.3 per cent of the company's outstanding shares pursuant to the terms of the investor rights agreement between Zefiro and XMST. Zefiro remains a significant part of the XMC portfolio as we continue to invest in energy assets that contribute to a more sustainable future."

We seek Safe Harbor.