May 22, 2026
 
ZENITH ENERGY LTD.

Sale of ZEN-260 drilling rig for US$4.3 million

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA; XSAT: ZENA
SDR), the listed international energy production and development company, is
pleased to provide an update regarding the sale of its fully owned ZEN-260
onshore drilling rig ("ZEN-260").

Further to the Company's announcement of November 25, 2025, Zenith has agreed
terms for the sale of the ZEN-260 for total gross consideration of approximately
US$4.3 million to a company operating in the oil and gas sector in the
Philippines, including payment of a non-refundable deposit.

The agreed consideration materially exceeds previously disclosed indicative
offers and reflects both the outcome of a competitive process involving multiple
interested counterparties and the strengthened oil and gas pricing environment.
The final agreed gross consideration of approximately US$4.3 million compares
favourably with the approximately US$2 million indicative offers previously
announced by the Company.

The transaction has received the necessary approvals from the relevant
Philippine authorities, and importation of the rig is expected to take place
during July 2026. 

The ZEN-260 was originally acquired by Zenith in September 2018 for
approximately EUR EUR2.25 million. The sale will strengthen the Company's
financial position and provide additional funding to accelerate the development
of its Italian solar portfolio.

Andrea Cattaneo, Chief Executive Officer, commented:

"We are extremely pleased with the progress achieved in relation to the sale of
the ZEN-260 and the substantial increase in value obtained through the
negotiation process.

With the Company's strategic focus increasingly directed towards the development
of our Italian energy and solar portfolio, we believe this transaction
represents an excellent opportunity to monetise a non-core asset at an
attractive valuation made possible by the strengthened oil price environment.

The transaction represents a strong outcome for Zenith and demonstrates
management's focus on unlocking value from non-core assets while supporting the
continued development of our Italian solar portfolio."
 


Further Information:

Zenith Energy Ltd 

Andrea Cattaneo, Chief Executive Officer	 
Tel: +1 (587) 315 1279
E:       info@zenithenergy.ca

 
Notes to Editors:

Zenith Energy Ltd. is a revenue generating, independent energy company with
energy production, exploration and development assets in North Africa, the US
and Europe. The Company is listed on the London Stock Exchange Main Market (LSE:
ZEN), the Euronext Growth of the Oslo Stock Exchange (OSE: ZENA) and on the
Spotlight Stock Market in Sweden (XSAT: ZENA SDR).

Zenith's strategic focus is on pursuing development opportunities through the
development of proven revenue generating energy production assets, as well as
low-risk exploration activities in assets with existing production.

For more information, please visit: www.zenithenergy.ca
Twitter: @zenithenergyltd
LinkedIn: https://bit.ly/3A5PRJb

Market Abuse Regulation (MAR) Disclosure

The information included in this announcement is defined as inside information
pursuant to MAR article 7 and is publicly disclosed in accordance with MAR
article 17 and section 5 -12 of the Norwegian Securities Trading Act. The
announcement is made by the contact person.
ion 5 -12 of the Norwegian Securities Trading Act. The\
announcement is made by the contact person.\