Ms. Catherine Flax reports

ZEFIRO ANNOUNCES US$40 MILLION BACKLOG OF AWARDED GOVERNMENT PROJECTS EXTENDING THROUGH JUNE 2029

Zefiro Methane Corp.'s backlog of awarded government well-plugging projects totals approximately $40-million (U.S.), with work extending through June, 2029.

Zefiro expects to perform approximately $4.9-million (U.S.) of work toward the backlog during the current quarter -- the second quarter of fiscal 2027, ending Dec. 31, 2026. The remaining approximately $34.6-million (U.S.) is expected to be performed primarily over calendar years 2027 and 2028, with the last of the contracts in the backlog scheduled to conclude in June, 2029. Management expects the backlog to provide a strong, continued pipeline of revenue through mid-2029.

The backlog reflects government-funded projects only and does not include work for Zefiro's corporate clients, such as oil and gas operators. Corporate projects typically carry short lead times, with work scheduled and performed soon after award. As a result, the backlog represents only a portion of the work the company expects to perform in any given period.

Major components of the backlog include the following previously announced awards:

• A three-year, $19.6-million (U.S.) construction-manager-at-risk (CMAR) contract from the Ohio Department of Natural Resources (ODNR) to manage the plugging and abandonment of approximately 200 high-priority marginal wells across Ohio, running through May, 2029;
• A $11.5-million (U.S.) state-funded well-plugging contract from a state environmental protection department in the Great Lakes region, with work scheduled from November, 2026, through June, 2029;
• $2.4-million (U.S.) in federally funded ODNR projects to plug 12 orphan wells in Lorain and Gallia counties, Ohio;
• Three federally funded well-plugging projects in Ohio and Pennsylvania valued at approximately $1.9-million (U.S.), covering 12 orphaned wells.

The backlog also includes three additional Ohio well-plugging projects that have not been previously announced, together representing approximately $5-million (U.S.) of work across 48 wells.

Exploratory contract in southeastern Ohio

Zefiro has also been awarded an exploratory contract by ODNR for work in southeastern Ohio. Exploratory projects are part of ODNR's orphan well program and are designed to better evaluate the equipment, materials and conditions of orphan wells before they are plugged.

The work consists of assessment, site preparation and initial excavation to expose each well -- including removing surface equipment to identify the casing, tubing and rods present and running a depth meter to locate the first obstruction in the wellbore -- so that the well is ready to be plugged once a separate plugging contract is awarded.

Because exploratory work is contracted separately from plugging, the award represents an additional revenue stream for Zefiro. It also adds to the company's growing portfolio of services, which spans well plugging and abandonment, methane measurement and monitoring, carbon sequestration, and carbon credit origination -- and now includes exploratory work.

Management commentary

Zefiro chief executive officer Catherine Flax commented: "When we reported our fiscal 2026 results, we said fiscal 2027 would be about converting the largest contracted pipeline in our history into revenue. This backlog, none of which is yet reflected in our reported results, gives Zefiro a multiyear base of government-funded revenue through mid-2029 that complements our growing private-sector business.

"The exploratory contract is a welcome addition in its own right. It brings Zefiro into an earlier stage of the remediation process using the same crews we deploy every day, and it gives us another way to support state agencies as they work through their inventories of orphan wells," concluded Ms. Flax.

Zefiro senior vice-president of corporate development Luke Plants added: "A backlog of this size and duration changes how we can run the business. Knowing where our rigs and crews will be working through mid-2029 allows us to sequence projects efficiently, plan mobilizations well ahead of time and keep our people consistently in the field, which benefits our employees, our agency partners and our shareholders alike."

About Zefiro Methane Corp.

Zefiro Methane is a North American environmental services company specializing in methane abatement and the plugging of orphaned and end-of-life oil and gas wells. 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 life cycle -- measurement and monitoring, plugging and abandonment, site restoration, and carbon credit origination -- serving government and private-sector customers across 15 U.S. states.

We seek Safe Harbor.