Mr. Greg Fenton reports

ZENTEK REPORTS IMPROVEMENTS AND EXPANSION OF ITS APTAMER-BASED PLATFORM TECHNOLOGY

Zentek Ltd. has developed a significant upgrade to its aptamer platform improving the binding affinity of the universal Covid-19 aptamer from 300 to over 500 times, compared with the base aptamer. The improved platform has also solved key challenges for manufacturing and these high-binding affinity (HBA) aptamers are now produced with approximately a 95-per-cent yield. A key roadblock of translating a promising lead candidate (lab-scale therapeutic) into a commercial product is cost-effective and high-purity manufacturing. Solving production at this early stage of the development program is essential for successful clinical trials and the lower manufacturing costs and high yields should translate into a competitive advantage over many existing therapies. The company has filed a new provisional patent to protect this latest innovation.

As Zentek has been engaged with industry experts regarding the platform innovation, there has been consistent feedback that the greatest potential for the aptamer platform is toward precision therapy which is currently dominated by monoclonal antibodies. Zentek and its partners at McMaster University will be exploring oncology and immunology research.

A pharmaceutical industry study by Dr. Wouters from the London School of Economics and Political Science calculated that between 2009 and 2018, the cost for a new potential therapeutic to complete preclinical trials was $237-million (U.S.) without factoring any costs resulting from drug failure. The Zentek HBA aptamer for SARS-CoV-2 has demonstrated strong therapeutic potential through four different animal tests and is at the current stage of development for a total cost of less than $2-million. Zentek estimates that an additional $1.0-million will be required to complete the preclinical program for the SARS-CoV-2 therapeutic and enter clinical trials. Zentek believes these significant cost and timeline advantages are inherent to the aptamer platform technology and will be transferable to other aptamer-based medicines. In addition, increased binding affinity, greater bioavailability without the need for polyethylene glycol (PEG) and high-yield manufacturing of HBA aptamers may lead to therapeutics with performances that are comparable to or outperforming their monoclonal antibody counterparts. There are already many aptamer-based therapies in development globally and Zentek's platform technology could potentially be a plug and play addition to these that could improve their performance.

Zentek chief executive officer, Greg Fenton, commented: "The power of Dr. Li's aptamer innovation could provide for a rapid, robust and economic pathway for new drug discovery across numerous areas of interest, including infectious disease, oncology, immune and neurological disorders. We continue to be surprised at the results generated by the Li Lab and look forward to capitalizing on their success as we transition into a new commercialization and partnership strategy."

Zentek has added significant experience from the pharmaceutical industry to its board of directors by adding John Snisarenko. Mr. Snisarenko brings 35 years of specialty pharmaceutical, medical device and commercialization experience spanning from start-up to large pharmaceutical and biotech companies, including 15 years in the United States in executive positions with Genentech and Shire. Mr. Snisarenko was also a key member of the Genentech/Novartis Global Alliance Partnership for Lucentis in ophthalmology. Mr. Snisarenko will be instrumental as Zentek is building its strategy for the aptamer platform to resonate with the pharmaceutical industry. His deep knowledge of the industry and the relationships he has built over 35 years will be a strategic resource as Zentek implements this next phase of outreach and partnership engagement.

Zentek independent director, John Snisarenko added: "I am excited to join Zentek's board at this important juncture in the company's evolution. The applicability of the new HBA aptamer platform holds great promise in future drug development in many therapeutic areas."

About Zentek Ltd.

Zentek is an ISO 13485:2016 certified intellectual property technology company focused on the research, development and commercialization of novel products seeking to give the company's commercial partners a competitive advantage by making their products better, safer and greener.

Zentek's patented technology platform Zenguard, is shown to have 99-per-cent anti-microbial activity and to significantly increase the bacterial and viral filtration efficiency of both surgical masks and HVAC (heating, ventilation and air conditioning) systems. Zentek's Zenguard production facility is located in Guelph, Ont. Zentek's patent pending Zenarmor technology platform is focused on corrosion protection applications.

Zentek has a global exclusive licence to the aptamer-based platform technology developed by McMaster University which is being jointly developed by Zentek and McMaster for both the diagnostic and therapeutic markets.

We seek Safe Harbor.