New Risk • May 11
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Canadian stocks, typically moving 14% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$6.2m free cash flow). Revenue is less than US$1m (CA$943k revenue, or US$689k). Minor Risks Share price has been volatile over the past 3 months (14% average weekly change). Market cap is less than US$100m (CA$108.6m market cap, or US$79.3m). Announcement • Mar 13
Zentek Ltd. Receives Favorable Judgment in Long-Standing Litigation Zentek Ltd. announced that the Ontario Superior Court of Justice (Commercial List) has issued its Reasons for Judgment dated March 12, 2026, in the companion actions Eveleigh et al. v. 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 pre-feasibility study required to trigger the payment obligation was never commenced; · Severance claims totaling $1,350,000 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; and · 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. New Risk • Feb 19
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -CA$6.2m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$6.2m free cash flow). Revenue is less than US$1m (CA$943k revenue, or US$688k). Minor Risk Market cap is less than US$100m (CA$83.9m market cap, or US$61.2m). 
