Zentek Ltd. announced completion of a study on the potential savings for the Canadian healthcare system from adopting ZenGUARD? -enhanced air filters. This analysis builds on the previously disclosed study announced on September 11, 2023, highlighting the potential return on investment from reduced absenteeism costs associated with the enhanced viral filtration from using the Company's ZenGUARD?

technology. Using publicly available third-party data and predictive risk assessment modelling incorporating respiratory infectious disease probabilities, the Company estimates that using a ZenGUARD? - enhanced MERV 9 filter instead of a regular MERV 9 filter may save the Canadian healthcare system approximately $13,752 for each 10,000 square foot workspace with 75 occupants.

This is in addition to the previously announced absenteeism and productivity losses experienced for an office space of this size and occupancy ($15,017). In addition to the assumptions disclosed in its September 11, 2023, press release, the Company used the peer-reviewed articles and government statistics below to estimate the economic impact to the Canadian healthcare system: Infection Frequency: Rate of COVID-19 infections in the Canadian population based on cases from February 2020 to April 2023; Hospitalizations, Emergency Department (ED) Visits and Intensive Care Unit (ICU) Admissions: Number of individuals who require ED visits, hospitalization and ICU admission due to COVID-19 and associated cost per case as reported by the Canadian Institute for Health Information (CIHI); In-Hospital Death Frequency: Canada-wide CIHI data from April 2022 to March 2023; In-Hospital Death Cost: Data for Ontario published by the Public Library of Sciences and adjusted for inflation; Self Care: Cost data from British Columbia and Ontario related to self care for individuals who do not visit the hospital, which could include over-the-counter medications, telehealth services, or other non-hospital medical services. The Company's current economic impact estimates do not include potential reduction in transmission risk associated with other pathogens like Influenza A/B, Rhinovirus and RSV.

The Company successfully completed Phase 2 HVAC filter testing with the National Research Council of Canada in a unique bioaerosol facility simulating a real-world classroom environment. This testing in a purpose-built facility, and the ZenGUARD? results, are helping reshape the narrative around HVAC filters to prioritize viral filtration efficiency and people's health in addition to particle filtration efficiency.

Through this project, Zentek is eligible to apply to Innovative Solutions Canada's new Pathway to Commercialization pilot program, which gives successful Canadian small and medium-sized enterprises like Zentek the exclusive opportunity to sell their innovation directly to the Government of Canada through Public Services Procurement Canada. Based on the Company's analysis described above and extrapolating to the entire Federal Public Service in Canada, the Company estimates that healthcare costs could be reduced by approximately $71.9 million per year. The key assumptions underlying the Company's analysis are as follows: 413,334 full-time equivalent employees across the Federal Public Service in Canada; All federal government buildings where these employees work use MERV 9 filters currently and convert to ZenGUARD?

- enhance MERV 9 filters; Space prototype assumptions consistent with those outlined above. The above analysis is disclosed for illustrative purposes only, and there can be no assurance that (i) the assumptions used by the Company in conducting its analysis are accurate and correct, (ii) the above analysis is or will be accurate or consistent with any third-party analysis, (iii) any third-party, including but not limited to, any governmental branch or office, awards or offers any contract to the Company, or (iv) the Pathway to Commercialization program will result in any future sales or revenue for the Company, and readers should not place undue reliance on such analysis. The Company is not making any express or implied claims that its product has the ability to eliminate, cure or contain COVID-19 (or SARS-2 Coronavirus) at this time.