Zentek Outlines Government Engagement Strategy and Announces Plans to Advance Albany Graphite Toward New Preliminary Economic Assessment

Rhea-AI Summary

Zentek (NASDAQ:ZTEK) outlines government engagement and plans to advance the Albany Graphite Project toward a Pre-Feasibility Study (PFS). Key actions include commissioning a new Preliminary Economic Assessment this fiscal quarter, initiating second-year environmental baseline work, advancing FBR purification engineering, and pursuing non-dilutive federal and provincial funding.

Albany has laboratory-scale nuclear-grade results (99.9992% purity; 2.60 ppm boron) and is positioned to access programs such as Canada's $2-billion Strategic Resource Fund and Ontario's $500 million Critical Minerals Processing Fund.

Positive

• Laboratory-grade purity demonstrated at 99.9992% (2.60 ppm boron)
• New PEA targeted in current fiscal quarter to reflect FBR and market conditions
• Access to multiple funding pools including Canada's $2-billion Strategic Resource Fund
• Ontario support via $500 million Critical Minerals Processing Fund and $25 million Innovation Fund

Negative

• Existing PEA is outdated (2015) and not NI 43-101 current
• Second-year environmental baseline work is required before Environmental Assessment and PFS
• PEA is a Gate 1 requirement for government funding, creating dependency on its timely completion

Market Reaction – ZTEK

+17.34% $0.66 21.6x vol

15m delay 25 alerts

+17.34% Since News

+49.1% Peak in 49 min

$0.66 Last Price

$0.55 $0.88 Day Range

+$9M Valuation Impact

$60M Market Cap

21.6x Rel. Volume

Following this news, ZTEK has gained 17.34%, reflecting a significant positive market reaction. Argus tracked a peak move of +49.1% during the session. Our momentum scanner has triggered 25 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $0.66. This price movement has added approximately $9M to the company's valuation. Trading volume is exceptionally heavy at 21.6x the average, suggesting very strong buying interest.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Graphite purity: 99.9992% purity Boron concentration: 2.60 ppm Critical Minerals Sovereign Fund: $2 billion +5 more

8 metrics

Graphite purity 99.9992% purity Albany Graphite nuclear-grade material testing

Boron concentration 2.60 ppm Equivalent boron concentration for nuclear-grade graphite

Critical Minerals Sovereign Fund $2 billion Canada’s Strategic Resource Fund size for critical minerals

Clean tech tax credit up to 30% Refundable investment tax credit on eligible capital expenditures

Ontario Processing Fund $500 million Ontario Critical Minerals Processing Fund budget

Innovation Fund $25 million Ontario Critical Minerals Innovation Fund size

US DoD stockpile intent $1 billion USD Planned procurement of stockpile materials including graphite

US critical minerals stockpile $12 billion USD Trump Administration critical minerals stockpile initiative

Market Reality Check

Price: $0.5702 Vol: Volume 300,487 is above t...

high vol

$0.5702 Last Close

Volume Volume 300,487 is above the 20-day average of 146,701 (relative volume 2.05x). high

Technical Shares at 0.5627 are trading below the 200-day MA of 0.92 and far under the 52-week high of 1.8411.

Peers on Argus

Momentum scanner flagged the stock as moving down while only one peer (ZJYL) app...

1 Up

Momentum scanner flagged the stock as moving down while only one peer (ZJYL) appeared, moving up ~1.98%. Broader peers show mixed single-digit moves, suggesting a stock-specific narrative rather than a coordinated sector rotation.

Historical Context

5 past events · Latest: Feb 25 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 25	Nasdaq bid-price extension	Neutral	+1.2%	Received 180-day extension to regain compliance with Nasdaq $1.00 bid rule.
Feb 17	Strategic and regulatory update	Neutral	-12.6%	Outlined strategic reset and Albany roadmap, including updated PEA and baseline work.
Jan 29	Shareholder strategic letter	Positive	-7.4%	Detailed focused growth plan on three platforms with cost reductions and milestone roadmaps.
Jan 05	Nuclear-grade graphite results	Positive	+8.5%	Announced ultra-high-purity 5N graphite meeting nuclear-grade impurity thresholds.
Dec 17	Battery anode performance	Positive	+3.9%	Reported near-theoretical anode performance for Albany graphite in independent tests.

Pattern Detected

Recent Albany- and strategy-focused updates have produced mixed reactions: some positive technical milestones saw gains, while broader strategic reset news at times coincided with notable declines.

Recent Company History

Over the last few months, Zentek has repeatedly highlighted Albany Graphite’s technical credentials and strategic importance. On Dec 17, 2025 and Jan 5, 2026, the company reported near‑theoretical anode performance and nuclear‑grade purity, with positive share reactions. In early 2026, Zentek announced a strategic reset, Nasdaq bid‑price extension, and a focused roadmap around Albany, ZenGUARD, and Triera, which drew mixed price responses. Today’s news deepens the Albany narrative by tying it more explicitly to defence, nuclear, and government funding pathways.

Market Pulse Summary

The stock is surging +17.3% following this news. A strong positive reaction aligns with the company’...

Analysis

The stock is surging +17.3% following this news. A strong positive reaction aligns with the company’s emphasis on Albany Graphite as a nuclear-, defence-, and battery-grade asset, despite the stock trading well below its 200-day MA of 0.92 and 52-week high of 1.8411. Investors reviewing this move would weigh the dense network of government programs and large funding pools against execution risks around permitting, new PEA delivery, and the multi-year path to a full Pre‑Feasibility Study.

Key Terms

pre-feasibility study, preliminary economic assessment, ni 43-101, environmental assessment, +3 more

7 terms

pre-feasibility study technical

"its accelerating path toward a Pre-Feasibility Study ("PFS") for the Albany Graphite Project."

A pre-feasibility study is an initial assessment that evaluates whether a proposed project or investment idea is worth exploring further. It involves examining basic factors like costs, potential benefits, and possible challenges, similar to conducting a preliminary check before deciding to invest more time and resources. This helps investors determine if pursuing the project further is practical and likely to be successful.

preliminary economic assessment technical

"prepare a new PEA reflecting current market conditions, the Company's proprietary FBR purification technology"

A preliminary economic assessment is an initial analysis that estimates the potential profitability and feasibility of a project or resource, such as a new mineral deposit or development venture. It provides a rough idea of costs, benefits, and risks, helping investors decide whether to pursue more detailed studies. This early evaluation is important because it offers a snapshot of whether the project is worth further investment and development.

ni 43-101 regulatory

"A PEA was previously completed in 2015 and is not current under NI 43-101"

A Canadian regulatory standard that sets the rules for how mining and exploration companies must report mineral resources and reserves, requiring technical reports prepared or signed off by an independent, certified expert. It matters to investors because it creates a consistent, transparent “inspection report” for mining projects, making it easier to compare prospects, judge the reliability of claims, and assess geological and financial risk before investing.

environmental assessment regulatory

"This work is a prerequisite for the Environmental Assessment process and is required to advance"

An environmental assessment is a process that evaluates how a project or activity might impact the natural surroundings, such as air, water, land, and wildlife. It helps identify potential environmental risks and ensures that any negative effects are managed or minimized. For investors, this assessment provides insight into the sustainability and long-term viability of projects, which can influence their financial decisions and risk management.

small modular reactor technical

"the construction of the first grid-scale Small Modular Reactor in the G7"

A small modular reactor is a compact nuclear power plant designed to generate electricity in smaller amounts compared to traditional reactors. It can be built in factories, then transported and assembled on-site, making it quicker and often cheaper to deploy. For investors, these reactors represent a potential source of clean energy with lower upfront costs and flexible scaling, which could influence future energy markets and infrastructure investments.

nato regulatory

"In December 2024, NATO released its first-ever list of 12 defence-critical raw materials"

A multinational defense and political alliance of member countries that coordinates military, diplomatic and security policies to deter threats and respond to crises. Investors watch it because its actions and tensions between members and rivals can change government spending, trade rules, sanctions and market confidence—like a neighborhood watch whose decisions can shift local safety, insurance costs and property values for everyone nearby.

pfs technical

"accelerating path toward a Pre-Feasibility Study ("PFS") for the Albany Graphite Project."

Progression-free survival (PFS) is a clinical-trial measure that records how long, on average, patients live without their disease getting worse after starting a treatment. For investors, PFS acts like a stopwatch of a drug’s effectiveness: longer PFS can signal meaningful patient benefit, improve chances of regulatory approval or label strength, and raise a drug’s commercial value, while shorter or unchanged PFS can weigh on a company’s prospects.

AI-generated analysis. Not financial advice.

Albany Graphite uniquely positioned at intersection of NATO, federal, and provincial critical minerals mandates; Company accelerating path to Pre-Feasibility Study

GUELPH, ON / ACCESS Newswire / February 26, 2026 / Zentek Ltd. (TSXV:ZEN)(NASDAQ:ZTEK) ("Zentek" or the "Company") is pleased to provide shareholders with an update on its strategic government engagement and its accelerating path toward a Pre-Feasibility Study ("PFS") for the Albany Graphite Project.

Government Engagement and Strategic Positioning

Albany Graphite is uniquely positioned at the intersection of multiple government priorities across federal, provincial, and allied-nation mandates. The Company is actively engaged with all levels of government to advance its project and secure non-dilutive funding.

NATO and Allied Defence Supply Chains

In December 2024, NATO released its first-ever list of 12 defence-critical raw materials, which includes graphite. NATO identified graphite as essential for the production of main battle tanks, naval vessels, and submarine components, noting that disruptions in graphite supply could impact the production of essential defence equipment.

Canada's first Defence Industrial Strategy, launched by Prime Minister Carney on February 17, 2026, explicitly highlighted Canada's role as a reliable source of NATO defence-critical minerals, noting that Canada already produces 10 of the 12 minerals on NATO's list - including graphite. The strategy established a Defence Investment Agency to provide single-point coordination for defence-related mineral sourcing with fast-track approval processes.

Zentek's Albany Graphite has demonstrated nuclear-grade material purity and physical properties (99.9992% purity, equivalent boron concentration of 2.60 ppm) through independent laboratory-scale testing conducted in collaboration with American Energy Technologies Company as previously disclosed by the Company on September 22, 2025, meeting key benchmarks for nuclear-grade graphite blocks including strength, density, electrical performance, and extremely low impurity levels. This positions Albany as a potential domestic source of defence-critical graphite for NATO allied supply chains.

Federal Government Programs

The Company is actively engaged with multiple federal funding programs aligned with Canada's Critical Minerals Strategy:

• Strategic Resource Fund: Canada's $2-billion Critical Minerals Sovereign Fund provides equity investments, loan guarantees, and offtake agreements to advance strategic mining projects. Albany Graphite's nuclear-grade credentials and domestic supply chain positioning align directly with the Fund's mandate.

• Critical Minerals Research, Development and Demonstration Program ("CMRDD"): Extended to March 31, 2028, the CMRDD supports scale-up of transformative processing technologies - directly relevant to Zentek's proprietary fluidized bed reactor ("FBR") thermal purification process.

• Clean Technology Manufacturing Investment Tax Credit: Provides a refundable tax credit of up to 30% on eligible capital expenditures for critical mineral processing equipment, applicable to future FBR capital deployment.

• G7 Critical Minerals Production Alliance: Canada has unlocked 26 new investments and partnerships with nine allied countries to secure critical minerals supply chains. Graphite is among the eligible commodities, with several Canadian graphite projects already receiving support under this framework.

Provincial Government - Ontario

Ontario's Critical Minerals Strategy (2022-2027) and the Ministry of Energy and Mines' 2025-2026 mandate provide a comprehensive framework that directly supports Albany Graphite's advancement:

• Critical Minerals Processing Fund: Ontario's landmark $500 million fund, announced in the 2025 provincial budget, supports processing facility development directly applicable to the Company's planned FBR processing operations.

• Critical Minerals Innovation Fund: An additional $25 million to accelerate commercialization and reduce reliance on foreign sources, supporting research, innovation, and industry partnerships.

• Invest Ontario: The Company continues discussions with Invest Ontario regarding potential project support. Ontario has positioned itself as the top jurisdiction in Canada for mineral exploration and development.

• "One Project, One Process" (1P1P): Ontario's new permitting framework, launched in late 2025, is designed to cut approval times in half through a coordinated single-window approach - potentially accelerating Albany's path through the permitting process.

Ontario's nuclear advantage is particularly relevant: with nuclear power supplying approximately 50% of the province's electricity and the construction of the first grid-scale Small Modular Reactor in the G7, Ontario is creating growing demand for nuclear-grade graphite that Albany is uniquely positioned to supply from within the province.

United States - Defence and Stockpiling

In 2025, the US Department of Defense announced its intent to procure up to $1 billion USD in stockpile materials, including graphite, with the Trump Administration announcing a $12 billion USD critical minerals stockpile initiative. As a near-border project with demonstrated nuclear-grade performance, Albany Graphite is positioned to potentially supply into US defence and energy supply chains.

Accelerating Toward Pre-Feasibility

The Company is taking concrete steps to de-risk the Albany Graphite Project and advance toward a Pre-Feasibility Study ("PFS") on the most reasonable timeline possible:

New Preliminary Economic Assessment ("PEA")

The Company intends to mandate an established engineering firm with prior knowledge of the Albany deposit to prepare a new PEA reflecting current market conditions, the Company's proprietary FBR purification technology, and the expanded market opportunity in nuclear-grade, battery-grade, and defence applications. A PEA was previously completed in 2015 and is not current under NI 43-101, having been prepared under a different market and technology paradigm. A new PEA is a Gate 1 requirement for multiple government funding programs and is expected to be a significant catalyst for the Company and its shareholders. The Company is targeting engagement in the current fiscal quarter.

Second-Year Environmental Baseline Work

The Company plans to initiate the second year of environmental baseline studies at the Albany site. This work is a prerequisite for the Environmental Assessment process and is required to advance toward a PFS and ultimately a construction decision. Early initiation of this workstream is intended to avoid unnecessary delays in the overall project timeline.

Path to Pre-Feasibility Study

Collectively, these activities - the new PEA, environmental baseline work, FBR engineering advancement, and government funding engagement - are designed to systematically de-risk the Albany Graphite Project and position the Company to initiate a PFS in the most reasonable timeline possible.

Management Commentary

"Albany sits at the intersection of everything Western governments are prioritizing right now: NATO defence supply chains, nuclear energy, battery materials, and domestic critical minerals production. The breadth of government programs aligned with our project is unlike anything we've seen in the sector, and we intend to move through them systematically," said Mohammed (Moe) Jiwan, CEO of Zentek. "The updated PEA is a pivotal step. The previous study was completed in 2015 under entirely different market conditions and without our FBR purification technology. A new economic evaluation reflecting today's graphite market, expanded nuclear and defence applications, and our proprietary processing approach, is expected to provide an updated preliminary assessment of Albany's economic potential."

Mr. Peter Wood, P.Eng., P.Geo., Vice President of Development of the Company's wholly owned subsidiary Albany Graphite Corp., a "Qualified Person" under NI 43-101, has reviewed and approved the technical information contained in this news release.

About Zentek

Zentek Ltd. is a Canadian IP development and commercialization company focused on next-generation healthcare solutions and the development of the Albany Graphite deposit, a unique source of high-purity graphite located in Northern Ontario. Through its wholly owned subsidiary Albany Graphite Corp., its patented ZenGUARD™ technology platform, and its novel graphite purification process using fluidized bed reactor (FBR) technology, Zentek is building a portfolio of products and projects that serve the critical minerals, nuclear energy, EV battery, defence, and advanced materials sectors. Albany Graphite has independently demonstrated nuclear-grade performance (99.9992% purity) and near-theoretical anode performance in battery applications. For more information, visit www.zentek.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable Canadian and United States securities legislation. Forward-looking statements include, but are not limited to, statements regarding: the Company's plans to engage an engineering firm to prepare an updated PEA; plans to initiate second-year environmental baseline work; the advancement of FBR technology and engineering studies; the Company's intention to advance toward a PFS; anticipated government funding applications and their outcomes; alignment with NATO, federal, and provincial critical minerals mandates; and the Company's business strategy, plans, and objectives. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially. These risks include, but are not limited to: government funding programs may not approve the Company's applications; the updated PEA may produce results materially different from prior estimates; environmental studies may identify issues that delay or increase the cost of development; commodity prices and market conditions may change adversely; and the Company may not have sufficient capital to complete its planned activities. The Company undertakes no obligation to update forward-looking statements except 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.

For further information:
Moe Jiwan, CEO
Zentek Ltd.
ir@zentek.com
www.zentek.com

SOURCE: Zentek Ltd.

View the original press release on ACCESS Newswire

FAQ

What did Zentek (ZTEK) announce on February 26, 2026 about Albany Graphite's timeline?

Zentek plans a new Preliminary Economic Assessment this fiscal quarter and to begin year-two baseline studies. According to the company, these steps aim to de-risk Albany ahead of a PFS and unlock government funding programs tied to Gate 1 requirements.

Does Albany Graphite meet nuclear-grade specifications, and what are the measured values for ZTEK?

Yes; laboratory tests showed nuclear-grade performance with 99.9992% purity and 2.60 ppm equivalent boron. According to the company, independent lab-scale testing met benchmarks for strength, density, electrical performance and very low impurities.

Which government funds could Zentek (ZTEK) access to advance Albany Graphite?

Potential sources include Canada's $2-billion Strategic Resource Fund and Ontario's $500 million Critical Minerals Processing Fund. According to the company, these programs align with Albany's processing plans and FBR purification technology deployment.

How does the FBR purification technology factor into Zentek's (ZTEK) development plan for Albany?

The proprietary fluidized bed reactor (FBR) is central to processing and will be reflected in the new PEA. According to the company, FBR engineering advancement is part of the pathway to a PFS and potential funding eligibility.

What are the key near-term technical prerequisites for Albany Graphite's PFS as stated by Zentek (ZTEK)?

Key prerequisites are a new PEA, second-year environmental baseline studies, and FBR engineering progress. According to the company, completing these items is required to proceed toward an NI 43-101 PFS and funding applications.