January 6, 2021     
         
ZENITH ENERGY LTD.

("Zenith" or the "Company")

Debt Reduction & Exercise of Warrants 

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA-ME), the
listed international oil & gas production company focused on pursuing African
development opportunities, is pleased to announce that it fully repaid one and
partially settled the second of the two credit agreements entered into with a
local financial institution in Azerbaijan for a total amount of approximately
US$442,000. 

As disclosed in the latest audited accounts for the financial year ended March
31, 2020, the Company had two general line of credit agreements (the "Credit
Agreements") for an outstanding combined principal amount of US$480,000;
interest has continued to accrue. 

Following the aforementioned payments, the outstanding principal amount in
relation to the remaining Credit Agreement is US$54,650.00 plus accrued interest
which is now payable by June 30, 2021. 

Exercise of Warrants 

An investor in the Company has exercised warrants to acquire a total of
28,571,429 new common shares of no par value (the "Common Shares") in the
capital of the Company with an exercise price of NOK 0.15 (equivalent to
approximately £0.013) for a total consideration of 4,285,714 NOK (approximately
£371,000) (the "Warrant Shares"). 

The Warrant Shares were issued yesterday, January 5, 2021, and will rank pari
passu in all respects with the existing common shares of the Company.

An application for the Warrant Shares to be listed on the standard segment of
the FCA Official List and to be admitted for trading on the London Stock
Exchange Main Market for listed securities will be made within 12 months of the
issue date. 

Total Voting Rights

The Company wishes to announce, in accordance with the Financial Conduct
Authority's Disclosure Guidance and Transparency Rules, the following revised
information resulting from completion of the Financing. 
 
Class of share	 
Total number of shares	 
Number of voting rights per share	 
Total number of voting rights per class of share
 
Common Shares in issue and admitted to trading on the Main Market of the London
Stock Exchange	313,400,824	1	313,400,824
Common Shares in issue and admitted to trading on the Euronext Growth Market of
the Oslo Børs - representing the total outstanding common share capital of the
Company 	1,070,644,350	1	1,070,644,350
 
Zenith holds 25,395,828 Common Shares in treasury. The above figure for total
number of Common Shares may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in, the
Company under the Financial Conduct Authority's Disclosure Guidance and
Transparency Rules.

Further Information:

Zenith Energy Ltd 	 
Andrea Cattaneo, Chief Executive Officer	Tel: +1 (587) 315 9031
 	E-mail:    info@zenithenergy.ca

Allenby Capital Limited - Financial Adviser & Broker	 
Nick Harriss
Nick Athanas	Tel: + 44 (0) 203 328 5656
 
Notes to Editors: 

Zenith Energy Ltd. is an international oil and gas production company, listed on
the London Stock Exchange (LSE: ZEN) and the Euronext Growth Market of the Oslo
Stock Exchange (OSE: ZENA).
Zenith's development strategy is to identify and rapidly seize value-accretive
hydrocarbon production opportunities in the onshore oil & gas sector,
specifically in Africa. The Company's board of directors and senior management
team have the experience and technical expertise to develop the Company
successfully.

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