Mr. Moe Jiwan reports

ZENTEK LTD. RECEIVES FAVORABLE JUDGMENT IN LONG-STANDING LITIGATION; ONTARIO SUPERIOR COURT DISMISSES CLAIMS ORIGINALLY EXCEEDING $6 MILLION AGAINST ZENTEK

Zentek Ltd. has received notification from the Ontario Superior Court of Justice (commercial list). The court has issued its reasons for judgment dated March 12, 2026, in the companion actions Eveleigh et al. versus Zenyatta; Zentek v. Eveleigh et al., 2026 ONSC 1510.

Background

The litigation arose following the removal of Aubrey Eveleigh, the company's founder and former president and chief executive officer, by shareholders at a special meeting held on May 11, 2018. The two companion actions were tried together before Justice Osborne of the Ontario Superior Court of Justice.

Outcome

The court dismissed substantially all claims advanced by Mr. Eveleigh and his consulting firm, Eveleigh Geological Consulting Inc. Original claims, as filed, exceeded $6-million. At trial, the claims were refined and the court denied all remaining monetary claims, specifically:

• A success fee claim of $282,500 -- denied on the basis that the prefeasibility study required to trigger the payment obligation was never commenced;

• Severance claims totalling $1.35-million under the president's agreement and related memorandum of agreement -- found to be void and unenforceable as a result of breaches of fiduciary duty;

• Unpaid wages of $51,748.82 -- denied;

• Defamation damages of $75,000 -- denied, with the court finding the relevant statements were factually accurate;

• Indemnification claims of approximately $194,000 in costs and disbursements -- denied.

With respect to Zentek's claim for cancellation of 4.5 million founder shares and disgorgement of profits, the court found that the shares had been properly issued and that there was no basis to set aside the issuance.

Chief executive officer's comment

"This judgment closes a chapter that has been part of Zentek's history since before I arrived on Dec. 1," said Moe Jiwan, CEO of Zentek. "The court's decision speaks for itself. What matters now is execution -- on Albany, on ZenGUARD, on Triera and on building the foundation this company deserves. We move forward."

About Zentek Ltd.

Zentek is a Canadian intellectual property development and commercialization company advancing a portfolio of graphene-enabled and advanced material technologies across clean air, next-generation materials and critical minerals. The company's core platforms are Albany Graphite, ZenGUARD and Triera.

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