Zentek Ltd. (ZTEK): PESTLE Analysis [Nov-2025 Updated]

You're looking for a clear, no-nonsense breakdown of Zentek Ltd. (ZTEK) as of late 2025, and that means cutting through the noise to the core risks and opportunities. Zentek Ltd. is an intellectual property company with a strong tech pipeline but a small commercial footprint, reporting a net loss of CAD 10.04 million in fiscal year 2025 against revenue of only CAD 872.50K. This PESTLE analysis maps the external forces-from government funding to regulatory classification-that will defintely dictate their near-term commercial success.

Political Factors: Government Support and Leadership Risk

The political landscape offers Zentek Ltd. a clear opportunity, especially around critical minerals and government procurement. The Canadian government's focus on securing domestic supply chains for materials like graphite-essential for lithium-ion batteries-boosts the strategic value of Zentek Ltd.'s Albany Graphite Project. For example, the Albany Graphite Corp. secured a $500,000 grant from Ontario's Critical Minerals Innovation Fund (CMIF) to advance its purification efforts. Plus, eligibility for the Innovative Solutions Canada Testing Stream opens a direct, low-friction path for government purchases of their technology.

But there's a critical internal risk: the CEO's contract ends in March 2026. This creates a leadership vacuum right when the company needs stable, focused execution to transition from research to commercial sales. You can't afford a strategic pause during a critical commercialization phase. Government checks are great, but leadership stability is better.

Economic Factors: High Growth, High Burn Rate

From an economic standpoint, Zentek Ltd. is a story of extreme potential versus current reality. The good news is the fiscal year 2025 revenue was CAD 872.50K, which represents a massive 2,826.26% year-over-year growth. Here's the quick math: that growth is off a very low base, and the company is still burning cash heavily. The net loss for FY 2025 was CAD 10.04 million, highlighting the significant cost of R&D and launching new products.

To fund this, Zentek Ltd. secured gross proceeds of $2,479,227 from a private placement in late 2025. Still, the Nasdaq listing is under pressure; the stock traded below the $1.00 minimum bid price in August 2025, creating a compliance risk. If they can't regain compliance by February 23, 2026, they face delisting, which hurts liquidity and investor confidence. The growth percentage is misleading when the starting line was near zero.

Sociological Factors: The Post-Pandemic Health Imperative

Societal shifts are a major tailwind for Zentek Ltd.'s product line. The pandemic fundamentally changed public health awareness, driving strong market demand for improved Indoor Air Quality (IAQ) and safer personal protective equipment (PPE). Zentek Ltd.'s ZenGUARD™ technology directly addresses this social need by offering a 'better, safer, and greener' solution for cleaning public spaces and filtering air. This aligns perfectly with the growing consumer preference for sustainable technology.

Also, the company's focus on aptamer-based rapid diagnostics taps into the societal push for faster, point-of-care pathogen detection. Aptamers (synthetic antibodies) offer a way to quickly identify diseases outside of a lab setting. This focus positions Zentek Ltd. not just as a materials company, but as a key player in the future of decentralized public health. Public health awareness is a permanent tailwind for clean tech.

Technological Factors: Graphene IP and Portfolio Expansion

Zentek Ltd.'s value is fundamentally tied to its intellectual property (IP). The core asset is the patented ZenGUARD™ antimicrobial graphene coating. They are smart about expanding the application of this core technology; they are developing a new graphite gel-based fire-retardant product, which expands their portfolio beyond air and health. This shows a clear strategy of finding new markets for their base materials science.

They also hold an exclusive global license for an aptamer-based platform technology from McMaster University for diagnostics and therapeutics. This diversification is key. The technology itself is precise: research shows ZenGUARD™ Enhanced Air Filters achieve an average infectious aerosol removal efficiency of 42% against the MS2 bacteriophage, a common proxy for viruses. Their core value is in the chemistry, not the manufacturing plant.

Legal Factors: Compliance, Patents, and Regulatory Hurdles

The legal environment presents immediate challenges and long-term security. The most pressing issue is the Nasdaq minimum bid price deficiency notice, which requires compliance by February 23, 2026. Failure to address this could trigger a delisting process, which is a major investor concern.

Regulatory classification is another near-term hurdle: Health Canada is reviewing the status of ZenGUARD™ Enhanced Air Filters as of June 2025. A favorable classification is crucial for market access. On the positive side, their IP is well-protected: the ZenGUARD™ patent for PPE and HVAC was granted in Canada with 54 claims, securing protection until September 2041. A strong patent is the only true moat for an IP company. Plus, they recently received a Canada Revenue Agency (CRA) Notice of Reassessment for the 2019 tax year in November 2025, which will require attention and resources.

Environmental Factors: Energy Efficiency and Critical Minerals

The environmental factors are a significant opportunity, positioning Zentek Ltd. as a sustainability play. ZenGUARD™ Enhanced Air Filters are not just about cleaner air; they offer an estimated HVAC energy consumption reduction of approximately 62% in commercial buildings due to lower pressure drop. This massive energy saving is a compelling sales pitch for facility managers and corporate ESG (Environmental, Social, and Governance) goals.

Furthermore, their strategic partnership with RSK Environment Ltd. to market ZenGUARD™ in over 20 countries leverages global sustainability goals and provides a ready-made distribution channel. The Albany Graphite Corp. also supports the clean energy transition by focusing on purifying graphite for use in lithium-ion batteries. No environmental liability issues have been reported for their current exploration claims as of June 2025. Sustainability isn't a bonus; it's the core sales pitch.

Zentek Ltd. (ZTEK) - PESTLE Analysis: Political factors

Government Funding Secured: $500,000 Grant for Albany Graphite Corp. from Ontario's CMIF

The political landscape in Canada is strongly supportive of domestic critical mineral development, and Zentek Ltd. is defintely capitalizing on it. On September 2, 2025, the company's wholly owned subsidiary, Albany Graphite Corp. (AGC), was awarded a $500,000 grant from the Ontario Government's Critical Minerals Innovation Fund (CMIF).

This isn't just a half-million-dollar cash injection; it signals a clear government endorsement of the Albany Graphite Purification and Anode Material Development Project. The total project funding is approximately $1,014,500, with AGC contributing $314,500 and Natural Resources Canada (NRCan) providing $200,000 of in-kind support. This non-dilutive funding is a massive de-risking factor for the project's commercialization timeline.

Here's the quick math on the public-private split:

Eligibility for Government of Canada Purchases via the Innovative Solutions Canada Testing Stream

Zentek has a direct, government-backed pathway to sales that most companies only dream of. The company has successfully completed the Innovative Solutions Canada (ISC) Testing Stream contract for its ZenGUARD™ Enhanced Air Filters.

What this means is the product is now eligible for purchase by the Government of Canada through the Pathway to Commercialization (PTC) opportunity, which gives small and medium-sized enterprises (SMEs) a huge advantage in federal procurement. Also, the company secured a separate ISC Testing Stream contract, valued at approximately $1.1 million, for a different technology-developing an avian influenza (H5N1) countermeasure, with testing partners like Health and Emergency Preparedness Canada (HERC) and Defence Research and Development Canada (DRDC).

• Government validation boosts commercial credibility.
• ZenGUARD™ is eligible for direct federal purchase via the PTC.
• Aptamer technology is secured under a $1.1 million ISC contract for H5N1 countermeasure development.

This dual government engagement across two core product lines-ZenGUARD™ and the aptamer platform-is a crucial political tailwind.

Geopolitical Focus on Critical Minerals Boosts the Strategic Value of the Albany Graphite Project

The global political climate has shifted graphite from an industrial commodity to a strategic national security asset. Graphite is now formally categorized as a critical mineral in Canada, the U.S., and Europe.

The geopolitical risk here is clear: China, which dominates the supply chain, announced export controls on specific graphite products in late 2024 and expanded them in February 2025. This concentration risk makes a secure, North American supply like the Albany Graphite Project incredibly valuable.

The Albany project's unique ultra-high purity graphite, which has tested at 99.9992% purity, meets specifications for nuclear industry applications, not just the massive electric vehicle (EV) battery market, which requires up to 125 kilograms of graphite per vehicle. This dual-use capability-clean energy and national defense-makes the project a key political priority for the Canadian government.

CEO Transition Creates a Leadership Vacuum During a Critical Commercialization Phase

Honesty, a leadership change during a major commercialization push is always a near-term risk. Former CEO Greg Fenton resigned on September 3, 2025, to take a role at Altek Advanced Materials Inc. The board had already planned for a change, announcing in July 2025 that his consulting contract would not be extended past March 31, 2026.

The good news is the transition period is being managed quickly. CFO Wendy Ford stepped in as Interim CEO, but the board has already appointed a permanent successor: Mohammed 'Moe' Jiwan will take over as CEO on December 1, 2025. This swift appointment of a new leader with over two decades of experience in technology, healthcare, and life sciences immediately reduces the political and operational uncertainty that a prolonged search would have created. The risk of a leadership vacuum is largely mitigated.

Zentek Ltd. (ZTEK) - PESTLE Analysis: Economic factors

Fiscal Year 2025 Revenue and Growth

Zentek Ltd.'s economic profile is defined by high-growth potential from a low base, coupled with significant capital burn typical of an intellectual property (IP) commercialization company. For the fiscal year ended March 31, 2025, the company reported annual revenue of CAD 872.50K. This figure represents an impressive 2,826.26% year-over-year growth, which, while substantial, is a function of scaling up from a very small initial revenue base. This explosive percentage growth shows that initial commercialization efforts for products like ZenGUARD™ are starting to gain traction, but the absolute dollar amount is still small for a publicly listed entity.

Net Loss and Burn Rate

The company's focus remains on research and development (R&D) and market penetration, which drives a high burn rate (the speed at which a company spends its cash). The net loss for the full fiscal year 2025 was CAD 10.04 million, a critical figure that highlights the capital intensity of bringing advanced nanotechnology products to market. This loss, however, was a slight narrowing from the previous year's loss of CAD 11.7 million, suggesting some marginal operational efficiency improvements as commercialization starts. This is a common trade-off: you have to spend money to make money, but you need a clear path to profitability.

Here's the quick math on the core financial performance for FY 2025:

Secured Gross Proceeds and Capital Runway

To fund ongoing operations and the significant R&D pipeline, Zentek Ltd. continues to rely on capital markets. In late 2025, specifically on October 22, 2025, the company closed a non-brokered private placement, securing gross proceeds of $2,479,227. This capital infusion is crucial for maintaining the operational runway, especially given the substantial net loss. The proceeds are earmarked for working capital and general corporate purposes, essentially buying time for the ZenGUARD™ and other IP to achieve meaningful scale and profitability.

The reliance on equity financing means shareholders face dilution, but it's defintely necessary to keep the lights on for a growth-stage IP company.

• Closed Private Placement: $2,479,227 gross proceeds.
• Use of Funds: Working capital and general corporate purposes.
• Impact: Temporary extension of the cash runway; shareholder dilution risk.

Nasdaq Compliance Risk

A significant near-term economic risk is the company's listing status on the Nasdaq Stock Market. On August 26, 2025, Zentek Ltd. received a written notification from Nasdaq regarding a minimum bid price deficiency. The stock had traded below the required US $1.00 minimum bid price for 31 consecutive business days, triggering a compliance issue. This is not an immediate delisting notice, but it is a serious capital markets risk.

The company has a 180-day period, until February 23, 2026, to regain compliance by having its closing bid price at or above US $1.00 for at least ten consecutive business days. Failure to resolve this could lead to delisting, which would severely impact the stock's liquidity and the company's ability to raise capital from US investors. Management will need to consider all options, including a reverse stock split, to cure the deficiency before the deadline.

Finance: draft 13-week cash view by Friday, incorporating the new private placement funds and modeling the impact of a potential reverse stock split on market capitalization.

Zentek Ltd. (ZTEK) - PESTLE Analysis: Social factors

Strong market demand for improved Indoor Air Quality (IAQ) following pandemic-driven public health awareness.

The collective experience of the global pandemic permanently shifted the public's perception of air safety, moving IAQ (Indoor Air Quality) from a niche concern to a social imperative. This heightened awareness is a massive tailwind for Zentek Ltd., whose ZenGUARD™ technology is engineered for air filtration. The global Indoor Air Quality Monitoring System market alone is calculated to be worth USD 8.67 billion in 2025, and it is expected to grow at a CAGR of 9.04% through 2034. That's a huge market driven by a fundamental change in social behavior.

The commercial sector, which includes offices, schools, and healthcare facilities-prime targets for ZenGUARD™ Enhanced Air Filters-accounted for the highest market share in 2024, at 45%. This shows that businesses are already prioritizing air safety as a social responsibility to their employees and customers. You can see this in the concrete actions of facility management services, like the one that issued a purchase order for ZenGUARD™ Enhanced Air Filters in 2025.

ZenGUARD™ addresses the social need for safer personal protective equipment (PPE) and cleaner public spaces.

ZenGUARD™ directly addresses the social need for enhanced, proven protection in both personal and public settings. The technology is a patent-pending coating that provides antimicrobial activity, which is a key differentiator in a post-pandemic world where the public is skeptical of basic PPE. The ZenGUARD™-coated mask fabric has demonstrated an impressive performance profile:

• Antibacterial effectiveness: Over 99.99% against E. coli.
• Antiviral effectiveness: 99.7% after 8 hours against H1N1 (seasonal influenza).

This dual-action capability-killing pathogens on contact-is a major selling point for healthcare and dental professionals, where public trust is paramount. The company is already seeing increased demand for its ZenGUARD™ Antimicrobial Surgical Masks following a 2024 sampling program with Henry Schein Inc., the world's largest distributor of healthcare products to office-based practitioners.

Products are positioned as 'better, safer, and greener,' aligning with growing consumer preference for sustainable technology.

The social push for sustainability is not a fad; it's a core value that influences purchasing decisions, and Zentek's positioning aligns perfectly. Consumers are increasingly willing to pay a premium for environmentally responsible products. For example, 72% of global consumers are willing to pay more for sustainable products, and 60% of customers are willing to pay a premium for products with sustainable attributes. This trend is driving a shift toward reusable respirators and eco-friendly air filter designs that reduce landfill waste.

Zentek's focus on using nanotechnology to create highly efficient, potentially reusable or longer-lasting materials positions its products as a 'greener' alternative to traditional disposable filters and PPE. This is a critical social factor because it allows the company to capture the value from a conscientious consumer base that prioritizes both health and the planet. Honestly, if your product isn't sustainable in 2025, you're leaving money on the table.

Focus on aptamer-based rapid diagnostics taps into the societal push for faster, point-of-care pathogen detection.

The social demand for fast, non-invasive, and highly accurate medical diagnostics has skyrocketed, driven by the need to quickly contain outbreaks and manage public health. Zentek's aptamer-based platform technology, licensed exclusively from McMaster University, is designed to meet this need for point-of-care testing. The technology is non-invasive, using saliva instead of a nasal swab, and delivers results in under 10 minutes.

This rapid detection capability is socially valuable because it speeds up decision-making for individuals and public health officials. Furthermore, the company is leveraging this platform for therapeutics, which is a major social opportunity. The subsidiary, Triera Biosciences Ltd., received a $1.1 million Government of Canada contract to test its multivalent aptamer technology as a countermeasure for highly pathogenic avian influenza (HPAI) A(H5N1). Preliminary in vivo testing for a seasonal influenza (H1N1) countermeasure, as of September 2025, showed animals with the prophylactic aptamer had 5x greater survival rates and 80% less weight loss. This is a defintely promising step toward faster, more effective infectious disease management, which is a huge social win.

Zentek Ltd. (ZTEK) - PESTLE Analysis: Technological factors

The core of Zentek Ltd.'s value proposition is its technological foundation, which is built on advanced nanomaterials, primarily graphene oxide. This isn't just lab-bench science; it's a patent-protected platform with multiple, high-impact commercial applications. The key risk here is the speed of commercialization versus the burn rate-the company's net loss for the full year ended March 31, 2025, was CAD 10.04 million, on sales of only CAD 0.872495 million. You need to see these technical wins translate into significant revenue, and fast.

Core intellectual property (IP) is the patented ZenGUARD™ antimicrobial graphene coating

ZenGUARD™ is Zentek's flagship intellectual property (IP), a graphene oxide-cationic silver (GO-Ag+) nanocomposite that acts as a broad-spectrum antimicrobial agent. This technology isn't just patent-pending anymore; the patent for its use on Personal Protective Equipment (PPE) and Heating, Ventilation, and Air Conditioning (HVAC) filters was granted in Canada on December 6, 2022, and is protected until September 20, 2041. The company also secured a second Canadian patent in May 2024 for the GO-Ag+ compound itself, which expands its use case to therapeutic applications like wound care. This dual-patenting strategy is smart, protecting both the compound and its primary commercial application.

ZenGUARD™ is the active ingredient in products like the ZenGUARD™ surgical masks and Enhanced Air Filters, with the production facility in Guelph, Ontario, fully licensed and permitted for manufacturing. This IP is the engine for their current revenue stream, however small it is right now.

Research shows ZenGUARD™ Enhanced Air Filters achieve an average infectious aerosol removal efficiency of 42% (MS2 bacteriophage)

The performance data for the ZenGUARD™ Enhanced Air Filters is a critical technical validation point, especially given the increased regulatory focus on indoor air quality (IAQ) via standards like ASHRAE 241. Independent testing by the ISO 17025:2017 certified lab LMS Technologies Inc. confirmed the enhanced performance. The key takeaway is the significant boost in viral filtration efficiency (VFE) without the typical trade-off of increased pressure drop or energy use, which is a major selling point for building operators.

Here's the quick math on the filtration improvement:

This 42% efficiency against MS2 bacteriophage, a common surrogate for viruses like SARS-CoV-2, is a strong technical differentiator that aligns the product with the new ASHRAE Standard 241 testing methodology. They can now defintely market this as a high-performance solution.

Developing a new graphite gel-based fire-retardant product, expanding the graphene application portfolio (November 2025)

Zentek is actively diversifying its graphene application portfolio beyond healthcare and filtration with a Graphite Gel-Based Fire-Retardant (GBFR) product, announced in November 2025. This novel material, branded GraphGel™ in the U.S. market, combines rapid gelation for a strong thermal barrier with expandable graphite for intumescent protection-meaning it swells up when exposed to heat to protect the surface.

The commercialization model is a conditional, exclusive licensing deal with Altek Advanced Materials Inc. for the U.S. market, dated November 4, 2025. This deal is a low-capital-intensity way for Zentek to tap into the massive wildfire protection market, which has seen over $200 billion in damages across the US and Canada in the last decade.

• Achieved Class A fire rating in ASTM E84 testing.
• High-loading application (0.6-0.7 cm) achieved a Flame Spread Index (FSI) of just 5.
• Altek Advanced Materials Inc. pays Zentek a 5% royalty on net sales.
• Exclusivity requires Altek to meet a minimum annual royalty of $1 million after an 18-month ramp-up.

Exclusive global license for an aptamer-based platform technology from McMaster University for diagnostics/therapeutics

The company's long-term technological upside lies in its biomedical division, Triera Biosciences Ltd., a wholly-owned subsidiary that holds an exclusive, worldwide, 20-year royalty-bearing license from McMaster University. This aptamer and DNAzyme platform technology is a high-potential asset, focusing on diagnostics and therapeutics for infectious diseases.

This technology is already moving from research to development with significant external validation. In November 2024, Triera Biosciences Ltd. received a $1.1 million contract from the Government of Canada to test the multivalent aptamer platform for rapid drug discovery against highly pathogenic avian influenza A(H5N1). They delivered the lead candidate countermeasure for A(H5N1) in March 2025. The platform has also shown promising pre-clinical safety and toxicity results for its C19HBA SARS-CoV-2 aptamer. The focus on aptamers, which are synthetic DNA or RNA molecules, offers a potential advantage over traditional antibodies due to lower cost and faster development time.

Zentek Ltd. (ZTEK) - PESTLE Analysis: Legal factors

You are looking at Zentek Ltd. (ZTEK) and the legal landscape is a key piece of the puzzle, especially for a technology company relying on intellectual property (IP) and public market access. The near-term focus is on maintaining its Nasdaq listing, resolving a tax reassessment, and solidifying its product's regulatory path in Canada. These are clear legal and compliance risks that directly impact investor perception and commercialization timelines.

Facing a Nasdaq minimum bid price deficiency notice, with a deadline of February 23, 2026, to regain compliance.

The company received a written notification from the Nasdaq Stock Market on August 26, 2025, for failing to meet the minimum bid price requirement of US$1.00 per share for 30 consecutive business days. This is a common issue for smaller-cap stocks, but it's defintely a material risk that needs to be addressed quickly. The clock is ticking on their initial compliance period.

Zentek has 180 calendar days, until February 23, 2026, to fix this. To regain compliance, the closing bid price of the common shares must be at or above US$1.00 for at least ten consecutive business days. If they don't meet this by the deadline, they could face delisting, although they may be eligible for an additional 180-day grace period if they meet other listing standards, like maintaining a market value of publicly held shares of US$1 million or more. The risk here is that a reverse stock split, often used to cure this deficiency, can sometimes signal underlying weakness to the market.

Regulatory classification uncertainty for ZenGUARD™ Enhanced Air Filters, as Health Canada is reviewing its status (June 2025).

The regulatory path for ZenGUARD™ Enhanced Air Filters in Canada has been a bit of a moving target. After withdrawing its submission to the Pest Management Regulatory Agency (PMRA) on October 31, 2024, Zentek shifted its strategy, intending to market the product as a Class I medical device under its existing Medical Device Establishment License (MDEL). This is a much simpler regulatory path, but there is still uncertainty.

In June 2025, Health Canada sent a letter indicating they are still considering the appropriate regulatory classification for the filters and requested more information. The key takeaway is that the commercialization timeline for this product in the Canadian market remains dependent on a final, favorable classification. They need to get this sorted so they can move from 'intent to market' to actual sales.

Received a Canada Revenue Agency (CRA) Notice of Reassessment for the 2019 tax year in November 2025.

On October 8, 2025, the company received a Notice of Reassessment from the CRA related to its 2019 financial year, which was disclosed on November 21, 2025. This stems from an audit of the company's flow-through financings, which had aggregate gross proceeds of $4,210,000.

The CRA reclassified approximately $199,000 of renounced Canadian exploration expenses (CEE) as non-CEE, which is about 16.467% of the renounced amounts. This reclassification triggered a Part XII.6 tax assessment of $22,481.89 payable by Zentek. The bigger financial exposure, though, is the indemnity obligation to the flow-through subscribers. Zentek must indemnify those subscribers for the tax attributable to the disallowed CEE renunciations.

Here's the quick math on the potential cost:

Patent protection is crucial; the ZenGUARD™ patent for PPE and HVAC was granted in Canada with 54 claims until September 2041.

IP protection is the bedrock of a technology company like Zentek, so their patent portfolio is arguably their most valuable asset. The core ZenGUARD™ technology, which applies to Personal Protective Equipment (PPE) and HVAC filters, has patent protection in Canada that extends until 2041. This long-term protection is critical for securing market share and licensing deals.

Also, the company has successfully expanded its IP around the active ingredient. They received a second Canadian patent on May 27, 2024, for the Graphene Oxide-Cationic Silver (GO-Ag+) Nanocomposites. This second patent is significant because it covers the compound itself and its use as a broad-spectrum antimicrobial agent, claiming 64 successful claims.

• Secures ZenGUARD™ market exclusivity until 2041.
• Second patent for active ingredient (GO-Ag+) has 64 claims.
• IP is the foundation for global expansion into 47 countries.

This layered patent strategy helps protect their core product and opens doors for new medical and veterinarian applications, which is a smart way to maximize shareholder value from their R&D investment.

Zentek Ltd. (ZTEK) - PESTLE Analysis: Environmental factors

ZenGUARD™ Enhanced Air Filters Offer Significant HVAC Energy Savings

The environmental case for Zentek Ltd.'s core product, ZenGUARD™ Enhanced Air Filters, is compelling because it directly addresses the massive energy consumption of commercial heating, ventilation, and air conditioning (HVAC) systems. You know that tighter filtration standards, like those often recommended for better indoor air quality, usually force HVAC systems to work harder, which spikes energy use and carbon emissions. ZenGUARD™ is a real game-changer here.

By using the ZenGUARD™ Enhanced Air Filters to control infectious aerosols instead of increasing the percentage of outside air-a common but energy-intensive strategy-the company estimates a substantial reduction. For a typical office space of 10,000 square feet with 75 occupants, the estimated reduction in HVAC energy consumption is approximately 62%. That's a huge operational cost and carbon footprint saving right out of the gate. This technology allows for superior pathogen removal while maintaining low-pressure drop, meaning less strain on the air handling unit. Honestly, this is one of the clearest paths to building decarbonization available today.

Strategic Partnership with RSK Environment Ltd.

Zentek Ltd. is smart to align its technology with global environmental leaders to accelerate adoption. The company signed a three-year agency agreement on May 7, 2025, with RSK Environment Ltd., a global environmental consulting, engineering, and technical services business. This partnership immediately expands the market for ZenGUARD™ Enhanced Air Filters to more than 20 countries, including a major focus on the Gulf Cooperation Council (GCC) region.

This move is defintely strategic because RSK Environment Ltd. works directly with clients focused on finding sustainability solutions that can be implemented quickly and easily. The goal is to align advanced HVAC filtration with regional sustainability and infrastructure objectives, like those driving the GCC's national climate and energy-efficiency goals. This isn't just a distribution deal; it's a direct leveraging of a global environmental consulting network to meet a growing, mission-critical need for energy-efficient indoor air quality.

• Partnership Term: Three years (from May 7, 2025)
• Geographic Scope: More than 20 countries
• Key Focus Area: Gulf Cooperation Council (GCC) region

Albany Graphite Corp. and the Clean Energy Transition

Zentek Ltd.'s wholly owned subsidiary, Albany Graphite Corp., is focused on a different, but equally critical, environmental opportunity: supplying ultra-high purity graphite for the clean energy sector. The company's work supports the shift to electric vehicles and nuclear power, both essential for reducing reliance on fossil fuels. Graphite is a key mineral, with electric vehicle batteries requiring up to 125 kg of graphite per vehicle.

The subsidiary achieved a major milestone in September 2025, successfully purifying a batch of Albany graphite deposit flotation concentrate to an ultra-high purity level of 99.9992 wt.% C (known as 5N purity). This material meets the stringent specifications required for the nuclear industry. Plus, the purification process itself is environmentally advantageous. Here's the quick math on the purity and process:

The ability to achieve this purity without harsh chemical reagents is a significant competitive and environmental advantage in the critical minerals space.

Exploration Claims and Environmental Liability

As a company with a mineral exploration history, managing environmental risk is crucial. As of the end of the first fiscal quarter on June 30, 2025, Zentek Ltd. reported a clean slate on this front. Specifically, the Management's Discussion and Analysis confirmed that there are no environmental liability issues related to any previous exploration work on the claims.

Moreover, neither Zentek Ltd. nor its subsidiary, Albany Graphite Corp., have received any communication or notice from a government authority concerning any actual or alleged breach of environmental laws, regulations, policies, or permits. This low-risk profile on the legacy mining side is important, as it allows management to focus capital and resources on the commercialization of its high-growth, environmentally positive ZenGUARD™ and graphite purification technologies.