Mr. Ryan Shacklock reports

ZENTEK RECEIVES CRA NOTICE OF REASSESSMENT FOR 2019

Further to Zentek Ltd.'s press release dated March 21, 2025, regarding the completion by the Canada Revenue Agency (CRA) of an audit of the company's 2018 and 2019 renunciations of Canadian exploration expenses (CEE) in favour of subscribers to private placements of flow-through common shares which closed on Dec. 21, 2018, and Dec. 20, ,2019 for aggregate gross proceeds of $4.21-million, it has received a notice of reassessment from the CRA in respect of its 2019 financial year in connection with the flow-through financings.

On Oct. 8, 2025, the company received a notice of reassessment from CRA in respect of its 2019 financial year resulting in a reclassification of approximately $199,000 (16.467 per cent) of the amounts renounced (the reclassified expenses) on the basis that the reclassified expenses did not meet the definition of CEEs, as defined for income tax purposes. As a result, Part XII.6 tax payable under Section 211.91 of the Income Tax Act, related to form T101 was assessed for $22,481.89.

Subscribers of the flow-through financings will be contacted directly by the CRA regarding a reassessment of deductions claimed in connection with the reclassified expenses. Pursuant to the terms of the subscription and renunciation agreements entered into by the company and the subscribers in connection with the flow-through financings, the reduction in renounced CEEs will be made on a pro rata basis among all subscribers of the same financing.

Furthermore, pursuant to the subscription agreements, the company has agreed to indemnify the subscribers within 20 business days for tax attributable to disallowed renunciations of CEEs. The company invites subscribers of the flow-through financings who have received notices of reassessment from CRA to contact fts@zentek.com as soon as possible to exercise their right of indemnification and for more information about next steps. The maximum aggregate quantum of the company's liability with respect to this indemnification obligation from the flow-through financings is $427,000.

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 enhanced viral filtration efficiency for surgical masks and HVAC (heating, ventilation and air conditioning) systems. Zentek's ZenGuard production facility is in Guelph, Ont.

Zentek has a global exclusive license 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.