Zentek Receives Notice of Reassessment from CRA for 2019 Financial Year.

Zentek Ltd. has received a notice of reassessment from the Canada Revenue Agency (CRA) in respect of its 2019 financial year. The CRA has reclassified approximately $199,000 of renounced Canadian exploration expenses as not meeting the definition of CEEs, resulting in a reassessment of deductions claimed by subscribers of the company's flow-through financings. Zentek has agreed to indemnify subscribers for tax attributable to disallowed renunciations, with a maximum aggregate liability of $427,000.