Ms. Catherine Flax reports

ZEFIRO METHANE COMPLETES FIRST-EVER SALE OF CARBON OFFSETS ORIGINATED UNDER ACR'S ORPHAN WELL METHODOLOGY

Zefiro Methane Corp. has noted both (i) the successful issuance of certified carbon credits from American Carbon Registry (ACR) project 959 (ACR959) reflecting confirmed emissions reductions of 92,956 metric tonnes of CO2 (carbon dioxide) equivalent, as well as (ii) completed delivery of the first tranche of ACR959 carbon credits to Mercuria Energy America LLC.

This pair of events marks the debut of a third key revenue stream for Zefiro, supplementing its earnings from core operations which have already generated $24.4-million (U.S.) in revenue for the company's first three fiscal quarters of 2025 (as announced in Zefiro's May 14, 2025, press release).

In addition to Zefiro's plugging and abandonment division in the Appalachia region (Pennsylvania, Ohio, New York and West Virginia), Zefiro also recently announced its very first revenues from methane monitoring, with a $800,000 (U.S.) contract to provide services to the West Virginia Department of Environmental Protection.

Issuance of ACR959 carbon credits

In May of 2023, ACR published a first-of-its-kind methodology allowing carbon offsets to be created by plugging orphaned oil/gas wells (titled "Methodology for the Quantification, Monitoring, Reporting and Verification of Greenhouse Gas Emissions Reductions and Removals from Plugging Orphan Oil and Gas Wells in the U.S. and Canada" and referred to herein as the methodology).

Under the leadership of Tina Reine, Zefiro's chief commercial officer, who was one of the founding members of J.P. Morgan's carbon trading desk, Zefiro began to undertake all of the necessary steps to originate some of the first-ever offsets to be created under the methodology. This included taking preliminary methane emission measurements, completing all well-level plugging/remediation work, and engaging a third party validation and verification body (VVB) to independently certify all findings as announced in a press release earlier this year.

The ACR959 project is based on a well located on privately owned land in Custer county, Oklahoma. On June 21, 2025, postplugging monitoring confirmed that the well was plugged and in compliance with ACR methodology. On July 29, 2025, validation was officially completed by the VVB.

As a result of the completion of ACR959, Zefiro was issued carbon offsets reflecting emissions reductions of 92,956 metric tonnes of CO2 equivalent (CO2e).

Delivery of ACR959 carbon credits to Mercuria

Mercuria is one of the world's largest independent energy and commodities groups. Among Mercuria's key business areas is its net-zero solutions, helping businesses to meet their net-zero goals.

Following the publication of ACR's methodology, Mercuria issued a press release announcing that it was the buyer in a presale transaction with Zefiro for certified carbon credits to be generated from the remediation of unplugged oil/gas wells that are leaking greenhouse gases such as methane.

In the press release, Adam Raphaely (managing director, Mercuria Group America) commented: "For too long, investors have not had routine access to reduction activities that display proven pathways to reducing harmful oil and gas emissions. Our work with Zefiro represents not only Mercuria's commitment to fostering innovative projects and ideas that have the power to reshape the industry but also our alignment with the core principles of many of our customers."

The carbon offsets from ACR959 are to be transferred to Mercuria by Zefiro in equal 25-per-cent tranches, the first of which has already been delivered at the time of this press release.

Zefiro management commentary

Zefiro's chief executive officer, Catherine Flax, said: "The successful issuance and delivery of Zefiro's very first carbon credits is a landmark development not just for us as a company, but also for the voluntary carbon markets as a category in which new standards are being set. With this methodology that allows carbon offsets to be generated directly from the remediation of orphaned oil/gas wells, there is now a clear and straightforward blueprint in which the voluntary carbon markets can be leveraged as a funding source for leaking wells to be plugged without needing to rely on taxpayer resources. Our team has been very thorough in completing each and every step of this process, which ushers in a new era for Zefiro along with the many stakeholders and participants in the marketplace, which continues to play a key role in mitigating the long-term impacts caused by emissions of greenhouse gases such as methane."

Zefiro's chief commercial officer, Tina Reine, stated: "These days, institutional end-users in the carbon markets are looking for credits that are generated through projects that make a quantifiable and common-sense impact, with transparent and verifiable emissions reductions to directly offset their own output of emissions. Zefiro's carbon offsets are originated by plugging wells in the U.S. that are leaking methane, aligning optimally with the criteria of these end users and their respective environmental commitments. One of the most remarkable things about this pair of developments for Zefiro is that Mercuria agreed to purchase the ACR959 carbon credits before the methodology was even finalized, which virtually never happens in the voluntary carbon markets."

Ms. Reine continued: "Now that Zefiro has successfully delivered its very first carbon credits to a purchaser, we are now positioned to more rapidly generate carbon credits from current and future environmental remediation projects in the United States. There has long been a deficit of supply in terms of American-originated carbon offsets that meet the requirements of institutional purchasers such as Mercuria and their end-user clients, and we are pleased to have the opportunity to bring new supply into the pipeline to help organizations around the world work towards their net-zero pledges as responsible corporate citizens."

About Zefiro Methane Corp.

Zefiro is an environmental services company, specializing in methane abatement. Zefiro strives to be a key commercial force toward active sustainability. Leveraging decades of operational expertise, Zefiro is building a new toolkit to clean up air, land and water sources directly impacted by methane leaks. The company has built a fully integrated ground operation driven by an innovative monetization solution for the emerging methane abatement marketplace. As an originator of high-quality U.S.-based methane offsets, Zefiro aims to generate long-term economic, environmental and social returns.

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