Zentek Files Technical Report for the Albany Graphite PEA: US$3.85 Billion After-Tax NPV at a 5% Discount Rate, 27.4% After-Tax IRR, on an Acid-Free Route to Ultra-High-Purity Graphite
The modeled 30-year operation still needs commercial-scale process validation, and no permit application has been submitted.
Rhea-AI Summary
Zentek (ZTEKF) filed its Albany graphite technical report on September 24, 2026, estimating US$3,854.5 million in after-tax net present value.
The preliminary economic assessment uses a 5% discount rate and estimates a 27.4% after-tax internal rate of return and 4.4-year discounted after-tax payback. It projects US$817.0 million in initial capital, 30,000 tonnes of finished graphite products annually over a 30-year production period, and US$651.3 million in average annual gross revenue. The report supports results announced August 10, 2026; an updated operating-cost tabulation did not change the underlying economic model.
The acid- and halogen-free purification route has been tested at bench scale, but its modeled performance and product specifications remain unvalidated at continuous commercial scale or through customer qualification. Micon recommends a pre-feasibility study. No permit application has been submitted, and no construction decision has been made.
Positive
- US$3,854.5M estimated after-tax NPV at a 5% discount rate
- 27.4% estimated after-tax IRR in the Albany assessment
Negative
- 30,000 tonnes/year modeled production; purification remains unvalidated at commercial scale
News Explained
The report estimates
AI-generated analysis. How Rhea-AI works. Not financial advice.
Initial capital of US
- Filed on SEDAR+ on September 24, 2026, within 45 days of the August 10, 2026, announcement, as NI 43-101 requires.
- After-tax NPV of US
$3.85 billion at a5% discount with an after-tax IRR of27.4% and a discounted payback of 4.4 years. - Initial capital of US
$817.0 million , a 30-year production period inside a 35-year Project life, and 30,000 tonnes per year of finished ultra-high-purity graphite products. - Micon recommends advancing Albany to a Pre-Feasibility Study.
Guelph, Ontario--(Newsfile Corp. - September 24, 2026) - Zentek Ltd. (TSXV: ZEN) (OTCQX: ZTEKF) ("Zentek" or the "Company") announces the filing on SEDAR+ of the technical report titled "NI 43-101 Preliminary Economic Assessment ("PEA") Technical Report on the Albany Graphite Project" (the "Technical Report") for the Albany Graphite Project ("Albany" or the "Project"). Prepared by Micon International Limited ("Micon") in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), the Technical Report has an effective date of June 30, 2026, and a report date of September 18, 2026.
The Technical Report supports the results previously disclosed in the Company's press release dated August 10, 2026.
Management Commentary
"Albany represents the type of Canadian critical minerals project needed to support more resilient North American supply chains," said Mohammed (Moe) Jiwan, Chief Executive Officer of Zentek. "Our hydrofluoric acid-free, halogen-free thermal purification process has demonstrated ultra-high-purity graphite at bench scale and forms the basis of the purification flowsheet evaluated in the PEA. Albany combines a mineral designated as critical by Canada, the United States, the European Union and Australia, an independent PEA, and our partnership with Constance Lake First Nation. Our next step is the Pre-Feasibility Study, which will advance the engineering, process design, scale-up, and product specification work required to further de-risk the project."
PEA Highlights
Table 1: Economic Highlights
| Metric | Technical Report, September 18, 2026 |
| Pre-tax net present value ("NPV") at | US |
| After-tax NPV at | US |
| Pre-tax internal rate of return ("IRR") | |
| After-tax IRR | |
| Pre-tax payback period, discounted | 4.4 years |
| After-tax payback period, discounted | 4.4 years |
| Initial capital cost | US |
| Sustaining capital cost | US |
| Life of mine operating cost | US |
| Average annual operating cost | US |
| Operating cost per tonne of finished graphite products | US |
| Weighted average realized product price | US |
| Average annual revenue, gross | US |
| Average annual revenue, net of transport, insurance and royalty | US |
| Overall Project life inclusive of pre-production and closure (years) | 35 |
1 Life of mine operating cost, average annual operating cost and operating cost per tonne differ from the amounts disclosed in the Company's news release of August 10, 2026, by US
Table 2: Design Parameters
| Metric | Value |
| Production Period / Life of Mine (years) | 30 |
| Nominal annual processing rate (tonnes per year) | 894,454 |
| Life of mine average head grade (% Cg) | 3.9 |
| Flotation recovery (%) | 86 |
| Nominal flotation concentrate production (tonnes per year) | 34,483 |
| Nominal finished product production (tonnes per year) | 30,000 |
Purification performance and product specifications in the economic model are based on bench-scale testwork and have not yet been validated at continuous commercial scale or through customer qualification. "Cg" = graphitic carbon, "Mt" = million tonnes.
Key Project Attributes
Purity. Bench-scale thermal purification testwork has produced graphite with a maximum measured purity of 99.99985 wt.% carbon (5N+) and an average purity of 99.9995 wt.%, as disclosed on September 14, 2026. This testwork formed part of the program supporting the PEA as announced on August 10, 2026.
Process route. The PEA evaluates an acid- and halogen-free thermal purification flowsheet using a fluidized bed reactor ("FBR"). The purification process uses no hydrofluoric acid at any stage or halogen gases, and the flotation circuit requires no lime or acid pH modifiers.
Permitting. The Technical Report describes Ontario's One Project, One Process framework, which is in the early stages of implementation, as a potential route for provincial permitting. It also states that federal impact assessment requirements or other federal approvals may apply. No permitting determination has been made, and no permit application has been submitted.
Location. Northern Ontario, within 30 km of the Trans-Canada Highway, with existing road, rail, power transmission and natural gas infrastructure nearby. Graphite is designated a critical mineral by both the Government of Canada and the United States Department of Energy.
Figure 1: Conceptual Site Plan
Source: Technical Report.
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Basis of the Technical Report
The Technical Report evaluates Albany as an integrated operation, from open pit extraction through flotation processing and FBR purification to finished ultra-high-purity graphite products. The production schedule processes approximately 25.9 Mt of mill feed grading
Figure 2: Conceptual Process Block Flow Diagram
Source: Technical Report, Figure 17.1 (Micon, 2026). Shows the flotation concentrator only. FBR purification is not shown.
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The weighted average product price is held constant in real terms throughout the Project life. It reflects Albany's potential position as a supplier of ultra-high-purity graphite to specialized, high-value markets rather than commodity or battery-grade markets and is aligned with the quality and performance specifications required by the applications targeted by the Project. Prices in these markets are generally influenced by product specification, qualification status and negotiated contractual terms rather than by reference to a transparent commodity index.
Pricing was developed from market research and pricing analyses prepared by AppEco Inc. and by an independent laboratory in the United States, for the ultra-high-purity product tiers Albany is targeting. Nuclear-grade graphite was used as the closest observable pricing analogue, and no country-of-origin premium has been applied. Micon's reliance on these analyses is described in Item 3 of the Technical Report.
Figures 3 and 4 show how the after-tax NPV at a
Figure 3: After-Tax NPV Sensitivity,
Source: Technical Report, Figure 22.3.
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Figure 4: After-Tax IRR Sensitivity
Source: Technical Report, Figure 22.4.
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Table 3: Mineral Resource Estimate, effective June 30, 2026
| Resource Category | Tonnage (Mt) | Grade (% Cg) | Contained Graphitic Carbon (t Cg) |
| Total Indicated | 23.1 | 4.14 | 957,075 |
| Total Inferred | 13.3 | 2.88 | 382,130 |
Mineral resources are reported for a combined open pit and underground scenario, at cut-off grades of
The PEA is preliminary in nature. It includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability, and may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. Readers are cautioned not to assume that all or any part of the Indicated or Inferred Mineral Resources will ever be converted into Mineral Reserves or that the PEA represents, or will result in, an economically viable operation.
Recommendations
Micon recommends that the Project be advanced to a Pre-Feasibility Study, and the Technical Report sets out the recommended work programs across resource definition, mine design, flotation and purification testwork including FBR scale-up, site infrastructure, tailings management and environmental baseline studies. No decision to construct has been made.
Community Engagement and Local Benefits
Albany lies within the traditional territory of Constance Lake First Nation ("CLFN"), which has been engaged on the Project through its earlier phases of work. That engagement is ongoing and conducted directly by the Company's Chief Executive Officer. The Company intends to work with CLFN on training, employment and business opportunities associated with the Project.
Technical Report Availability and Qualified Persons
The Technical Report is available under Zentek's issuer profile on SEDAR+ at www.sedarplus.ca, on EDGAR at www.sec.gov as an exhibit to the Company's Form 6-K, and on the Company's website at www.zentek.com. Readers are encouraged to read the Technical Report in its entirety, including all qualifications, assumptions and exclusions that relate to the details summarized in this news release.
The Technical Report was prepared by Charley Murahwi, P.Geo.; Oktay Erten, PhD, P.Eng.; Richard M. Gowans, P.Eng.; Garth Liukko, P.Eng.; Mohsin Hashmi, P.Eng.; and Becky Humphrey, CEnv, MIMMM, each of Micon; and Sepehr Aryan, P.Eng., and Morwenna Rogers, MSc., MIMMM, each of Halyard Inc.; each a Qualified Person as defined in NI 43-101 and independent of the Company. The scientific and technical information in this news release has been reviewed and approved by Mr. Murahwi and Mr. Erten, who are responsible for the Mineral Resource Estimate, and Mr. Liukko, who is responsible for the market studies, capital and operating cost estimates and economic analysis set out in the Technical Report, each a Qualified Person and independent of the Company. It has also been reviewed and approved by Peter Wood, P.Eng., P.Geo., Vice President, Development of Albany Graphite Corp., a Qualified Person who is not independent of the Company.
About Albany Graphite Corp.
The Albany Graphite Project is an igneous-hosted, fluid-derived graphite deposit held in two breccia pipes in Northern Ontario, near Hearst, held through the Company's wholly owned subsidiary Albany Graphite Corp. Independent bench-scale testing disclosed on September 22, 2025, confirmed ultra-high purity of
About Zentek
Zentek Ltd. is a Canadian intellectual property development and commercialization company advancing a portfolio of graphene-enabled and advanced material technologies across clean air, next-generation materials, and critical minerals. Core platforms are Albany Graphite, ZenGUARD™, and Triera. Albany is the Company's principal critical minerals asset.
For more information:
Mohammed (Moe) Jiwan
Chief Executive Officer, Zentek Ltd.
T: 437-826-3779
E: mjiwan2@zentek.com
www.zentek.com
Forward-Looking Statements
This news release includes certain information that may be deemed "forward-looking information" under applicable securities laws. All statements in this release, other than statements of historical facts, that address the results of the PEA (including the estimated NPV, IRR, payback period, capital expenditure requirements, project life, production potential and product value), work to be conducted on the Project in the future including a Pre-Feasibility Study, mineral resource potential, planned or potential exploration and development activities, purification testwork and scale-up, the design, engineering, construction and operation of a processing, purification and separation facility, product qualification, collaboration with CLFN, and events or developments that the Company expects, is forward-looking information. Although the Company believes the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors, including, without limitation, the risk factors set out in the Company's Annual Information Form and quarterly MD&A, that could cause actual results to differ materially from those in the forward-looking information. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking information. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/315335
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What are the projected economics of Zentek's Albany graphite project?
The Albany assessment estimates US$3,854.5 million in after-tax net present value at a 5% discount rate and a 27.4% after-tax internal rate of return. It estimates discounted after-tax payback of 4.4 years and initial capital of US$817.0 million. These are preliminary estimates, not operating results.
How was graphite pricing determined for Zentek's Albany assessment?
The assessment uses a US$23,485-per-tonne weighted average product price, held constant in real terms throughout the project life. Pricing analyses for the targeted ultra-high-purity products used nuclear-grade graphite as the closest observable analogue; no country-of-origin premium was applied.
What permits has Zentek applied for at the Albany graphite project?
No permit application has been submitted for Albany, and no permitting determination has been made. Ontario's One Project, One Process framework is described as a potential provincial route, while federal impact assessment requirements or other federal approvals may apply.
Why did Albany's operating-cost figures change from Zentek's August 2026 announcement?
The report's updated tabulation changed the previously disclosed life-of-mine operating cost by US$21.0 million, average annual operating cost by US$0.7 million, and cost per tonne by US$25. The underlying economic model and overall project economics did not change.