ZENA-ME: Completion of Private Placement following Admission to Merkur Market

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION INTO OR IN THE UNITED STATES, JAPAN
OR AUSTRALIA. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SUBSCRIBE OR
PURCHASE ANY OF THE SECURITIES DESCRIBED HEREIN 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 ("MAR"). Upon publication of this announcement via a
regulatory information service ("RIS"), the inside information contained in this
document is now considered to be in the public domain. 

November 12, 2018 

ZENITH ENERGY LTD. 

("Zenith" or the "Company") 

Completion of Private Placement following Admission to Merkur Market 
Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V: ZEE; OSE:
ZENA-ME) the listed international oil & gas production company operating the
largest onshore oilfield in Azerbaijan, is pleased to announce the completion of
a second Private Placement following its Admission to the Merkur Market of the
Oslo Børs. The Merkur Market is a multilateral trading facility owned and
operated by the Oslo Børs. 

As announced on November 7, 2018, in order to satisfy the Merkur Market
admission requirements the Company completed a private placement with Norwegian
investors raising gross proceeds of NOK 7,273,850 (approximately £668,300 or
CAD$1,141,600) through the placement of 20,782,429 common shares of no par value
at a subscription price of NOK 0.35 per share (approximately £0.032 or CAD$0.055
per Placement Share). 

On November 9, 2018 after the close of the market and as a result of market
demand, Zenith completed a second private placement with Norwegian investors
raising gross proceeds of NOK 1,000,000 (approximately £91,700 or CAD$157,000)
through the placement of 2,857,143 common shares of no par value (the "Placement
Shares") at a subscription price of NOK 0.35 per share (approximately £0.032 or
CAD$0.055 per Placement Share). The Placement Shares will be issued in the form
of depositary interests in the VPS, the Norwegian Central Securities Depositary.
No Insider/Person Discharging Managerial Responsibility has subscribed for
Placement Shares. 

Following issuance of the Placement Shares on November 9, 2018, the Company has
a total of 239,959,730 common shares in issue and admitted to trading on the TSX
Venture Exchange. It is expected that admission to trading of the Placement
Shares on the Merkur Market will take place on November 12, 2018. An application
for the Placement Shares to be listed on the standard segment of the UK Official
List and to be admitted to trading to the Main Market of the London Stock
Exchange will be made within 12 months of the issue of the Placement Shares; the
total number of common shares listed on the standard segment of the UK Official
List and admitted to trading on the Main Market of the London Stock Exchange
remains at 216,320,158. 

As announced on November 7, 2018, the net proceeds of the aforementioned private
placements, completed following the Company’s admission to trading on the Merkur
Market, will be invested in Zenith’s Azerbaijan operations. 

Orion Securities acted as manager for the Private Placement. 

The information include in this announcement is subject to the disclosure
requirements pursuant to the Norwegian Securities Trading Act.
 
Further Information:
 
Zenith Energy Ltd 
Andrea Cattaneo 
Chief Executive Officer 
E-mail: info@zenithenergy.ca 
Tel: +1 (587) 315 9031 

Allenby Capital Limited - Financial Adviser 
Nick Harriss 
Nick Athanas 
Tel: + 44 (0) 203 328 5656 

Daniel Stewart & Company Plc - Joint Broker 
Robert Emmet - Corporate Broking 
Tel: + 44 (0) 207 776 6550 

Optiva Securities - Joint Broker 
Christian Dennis 
Tel: + 44 (0) 203 137 1903 

Vigo Communications - PR Adviser 
Patrick d'Ancona 
Chris McMahon 
Tel: +44 (0) 20 7930 0230 

Orion Securities - Financial Adviser 
John E Skajem 
Tel: + 47 4188 7412 

This announcement and the information contained herein is issued for information
purposes only and does not constitute an offer to sell or a solicitation of an
offer to buy any of the securities described herein, including the Placement
Shares. 

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

Notes to Editors: 

Zenith Energy Ltd. is an international oil and gas production company, listed on
the TSX Venture Exchange (TSX.V:ZEE) and London Stock Exchange (LSE:ZEN). In
addition, the Company’s common share capital was admitted to trading on the
Merkur Market of the Oslo Børs (ZENA:ME) on November 8, 2018. The Merkur Market
is a multilateral trading facility owned and operated by the Oslo Børs. 

The Company was assigned a medium to long-term issuer credit rating of "B+" with
Positive Outlook on October 8, 2018 by Arc Ratings, S.A. 
The Company operates the largest onshore oilfield in Azerbaijan following the
signing of a 25-year REDPSA, (Rehabilitation, Exploration, Development and
Production Sharing Agreement), with SOCAR, State Oil Company of the Azerbaijan
Republic, in 2016. 

The Company's primary focus is the development of its Azerbaijan operations by
leveraging its technical expertise and financial resources to maximise low-cost
oil production via a systematic field rehabilitation programme intended to
achieve significantly increased revenue. Zenith also operates, or has working
interests in, a number of natural gas production concessions in Italy. The
Company's Italian operations produce natural gas, condensate and electricity. 

Zenith's development strategy is to identify and rapidly seize value-accretive
hydrocarbon production opportunities in the onshore oil & gas sector. The
Company's Board of Directors and senior management team have the experience and
technical expertise to develop the Company success