GUELPH, ON / ACCESS Newswire / September 22, 2025 / Zentek Ltd. ("Zentek" or the "Company") (NASDAQ: ZTEK)(TSXV:ZEN), an intellectual property technology development and commercialization company, is pleased to share an update from its wholly owned subsidiary, Albany Graphite Corp. ("AGC") on its Critical Minerals Innovation Fund ("CMIF") grant-funded activities. AGC in collaboration with American Energy Technologies Company ("AETC"), has successfully purified a second batch of Albany graphite deposit flotation concentrate to an ultra-high 5N purity level of 99.9992 wt.% C. Subsequent elemental analysis of this material yielded a calculated Equivalent Boron Concentration ("EBC") of 2.60 ppm which is below the 3 ppm specification required by the nuclear industry. The findings indicate that the electrothermal Fluidized Bed Reactor ("FBR") purification process developed by AETC has the potential to produce reproducible results, and that ultra-high purity Albany Graphite could be suitable for use in the nuclear energy industry; a field traditionally dominated by synthetic graphite.

Highlights

• AETC successfully purified a second batch of Albany graphite to an ultra-high 5N purity level (99.9992 wt.% C), indicating potential reproducibility and suitability for nuclear applications. These results are helping to establish Albany graphite as a rare natural material able to reach the stringent purity required for nuclear applications, traditionally a domain reserved for synthetic graphite.

• Elemental analysis yielded a calculated EBC of 2.60 ppm, which is below the 3 ppm specification required by the nuclear industry. Achieving this low EBC is crucial, as it ensures the graphite's suitability for safe, reliable use in nuclear reactors, where boron contamination and other elemental contamination can impact reactor performance.

• The FBR purification process developed by AETC achieved consistent results without the use of halogen gases. This is significant because halogen-free processing reduces costs, environmental risks and operational hazards, offering a cleaner and safer route to high-purity graphite.

• Ongoing nuclear graphite testing includes measurements of particle size distribution, compressibility, resistivity, and coefficient of friction, along with the production and assessment of near-net-shaped graphite bricks for reactor lining applications. These efforts are important as they ensure that Albany graphite not only meets chemical specifications but also performs reliably in real-world reactor environments.

• Additional testing will also evaluate Albany graphite's suitability for lithium-ion battery anodes and as a cathode conductivity additive, supporting further advancement in nuclear and battery-grade graphite materials. This versatility is unique, positioning Albany graphite as a promising candidate for multiple high-growth, high-purity markets.

The thermal purification was conducted at AETC's Wheeling, IL facility utilizing a batch-scale electrothermal FBR at 2,800°C and under an inert gas atmosphere without the use of halogen gases. The EBC value was calculated according to ASTM C1233-15: Standard Practice for Determining Equivalent Boron Contents of Nuclear Materials and was further customized to the present-day industrial application based on AETC's knowledge of the current specification that is required by an operational nuclear plant. The calculated EBC value is the most critical test of purity for nuclear industry use.

These results align with increased investment in nuclear energy. In Canada, Ontario is constructing a grid-scale Small Modular Reactor ("SMR") at the Darlington site, which marks a step toward clean energy production. Additionally, Prime Minister Carney recently unveiled a list of five ‘nation-building' projects, which included a significant investment in Darlington's New Nuclear SMR Project in Clarington, Ontario.

Similarly, the United States and other countries have prioritized expanding domestic nuclear energy capacity and further highlights the importance of nuclear-grade graphite.¹²³

Next Steps
Additional downstream processing and material characterization is in progress and will involve the following measurements to confirm that additional nuclear specifications are met:

• Air Jet Sieve Yield: Meeting a specified particle size distribution and D50 is an important requirement.

• Compressibility: Achieving a high compact density along with a low elastic expansion is desirable for matrix graphite powder used in the nuclear industry.

• Four-Point Resistivity: Provides an indication of the degree of graphitization of the graphite powder and is a critical test for graphite used in pebble-bed reactors. A low resistivity and therefore a high degree of graphitization is desirable.

• Coefficient of Friction ("CoF"): A low CoF is desirable for lubricants.

Test work will also involve the production of near-net-shaped graphite bricks using a mixture of synthetic graphite, ultra-high purity Albany graphite and coal-tar pitch. These solid shapes are typically used to line nuclear reactors. Upon the successful production of the test bricks, AETC will characterize the properties of the composite to confirm that nuclear industry specifications have been achieved.

AETC will also be performing a lithium-ion battery suitability testing program which will involve spheroidization, coating and subsequent coin cell tests to characterize the electrochemical performance of Albany anode material. Spheroidization fines will also be processed and tested as a cathode conductivity additive. Results will be shared as the testwork evolves and they become available.

Emily Schmidt, project manager and business development representative at AETC was quoted as saying, "AETC is very excited about the successful confirmation that Albany graphite material can be upgraded to nuclear purity graphite without the use of halogen gas in processing. Meeting 5N purity is a necessary but insufficient condition for qualifying graphite for nuclear applications. One needs to also achieve a stringent specification on EBC which in the case of Albany natural graphite material was demonstrated to be at the level of 2.60 ppm compared to the industry spec of 3 ppm. Albany graphite has the potential of being used in market segments of fuel encapsulation, reactor linings, and specialty uses within nuclear plants that include lubrication, repair and maintenance, and other critical needs that support the operation of the plant. Work is currently ongoing on qualifying material from the Albany graphite natural resource in some of these market segments."

Eric Wallman, Board Chair of Zentek, commented: "This is an exciting development as we continue to gather information on the potential of the Albany project. The ability to consistently reach ultra-high purity and meet strict nuclear specifications is a promising sign for both the graphite industry, the potential value of the Albany Graphite Deposit and Zentek's ongoing commitment to innovation. This milestone not only demonstrates the quality and versatility of Albany graphite but also showcases the strength of our partnerships and the dedication of our team. As we move forward, I am eager to see how these results open new doors for technological advancement, sustainability, and global competitiveness. We remain committed to supporting rigorous testing and further development to ensure our products meet the highest standards of excellence."

Mr. Peter Wood, P.Eng., P.Geo., Vice President, Development of AGC, a "Qualified Person" under NI 43-101, has approved the technical information contained in this news release.

Overview of the Albany Graphite Project
The Albany Graphite Project, is a unique igneous-hosted, fluid-derived graphite deposit, located in Ontario and has been developed to an advanced exploration stage. The project is located northwest of the communities of Constance Lake First Nation and Hearst, Ontario, within 30 km of the Trans-Canada Highway, close to established infrastructure including roads, rail, power transmission lines, and a natural gas pipeline.

About the Ontario Critical Minerals Innovation Fund ("CMIF") Program
The CMIF is dedicated to building a stronger Ontario by supporting the mining industry through research, development, and the commercialization of innovative technologies, processes, and solutions for the critical minerals supply chain. Part of the government's Critical Minerals Strategy, the CMIF aims to establish a made-in-Ontario supply chain that meets the growing global demand for critical minerals essential for manufacturing technologies like batteries and electric vehicles.

"We're not just leading-we're accelerating Ontario's role in critical minerals, and the Critical Minerals Innovation Fund is how we are making it happen," said Stephen Lecce, Ontario's Minister of Energy and Mines. "By investing in the Purification and Anode Development Project, we're positioning Ontario as a global leader in clean energy minerals-creating good jobs, driving economic growth, and powering the future of electric vehicles and sustainable industries across the province."

About AETC
AETC is a woman-owned, privately held business which conducts operations out of the greater Chicago area. In its Wheeling, IL facility, AETC operates three business units: a manufacturing plant making battery-ready graphite and carbon materials, a pilot demonstration facility for battery materials and graphite dispersions, and a fully functional applications laboratory supporting the above business units. Currently, AETC is one of only three organizations which commercially manufacture lithium-ion battery-ready graphite in the United States. Furthermore, AETC's Wheeling, IL plant is currently the only industrial end-to-end commercial manufacturer of spherical purified surface coated natural graphite in the US. In doing so, the company develops and operates an upstream ore beneficiation, unique refining, particle spheroidization, and carbon coating technologies. AETC is both developing and producing spherical graphite (natural and synthetic), expanded graphite, partially graphitized nanostructured carbons, ultra-high purity graphite-based electrically conductive inks, paints, and coatings which find use within the industry. AETC is a proud supply chain member of electric vehicles and an approved supplier to twelve battery manufacturers and one fuel cell producer.

AETC works with industrial partners and manufacturing groups worldwide, including the U.S. Department of Defense, to ensure materials meet performance standards and strategic requirements. Their facilities are equipped for testing, downstream processing, AI-driven manufacturing, and carbon material development, enabling AGC to tailor products to international market specifications.

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, Ontario

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

For further information:
investorrelations@zentek.com

Ryan Shacklock
Tel: (306) 270-9610
Email: rshacklock@zentek.com

To find out more about Zentek, please visit our website at www.Zentek.com. A copy of this news release and all material documents in respect of the Company may be obtained on Zentek's SEDAR profile at http://www.sedar.com/.

Forward-Looking Statements
This news release contains forward-looking statements. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although Zentek believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Zentek disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Zentek Ltd.