December 15, 2017

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). Upon publication of this announcement via a regulatory information service ("RIS"), the inside information contained in this document is now considered to be in the public domain.

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Director/ PDMR Shareholding

Zenith Energy Ltd., ("Zenith" or the "Company") (LSE: ZEN; TSX.V: ZEE), the dual listed international oil & gas production company operating the largest onshore oilfield in Azerbaijan, announces the following dealings undertaken by Mr. Andrea Cattaneo, Chief Executive Officer and President of the Company.

Exercise of Share Options

On December 15, 2017, Mr. Cattaneo exercised stock options to acquire 1,000,000 common shares of no par value ("New Shares") in the capital of the Company at an exercise price (the "Options Price") of CAD$0.15 (approximately £0.087) per New Share and at a total cost of CAD$150,000 (approximately £87,000).

The Stock Options Plan, (the "Plan"), was approved by shareholders at the Company's last AGM, held on January 20, 2017. 

An application will be made for the New Shares to be admitted to the standard segment of the Financial Conduct Authority UK Official List and to trading on the Main Market for listed securities of the London Stock Exchange (the "Admission"). The New Shares will rank pari passu in all respects with the existing common shares of the Company. An application will also be made for the New Shares to be listed on the TSX Venture Exchange. It is expected that Admission will become effective and unconditional dealings in the New Shares will begin on December 22, 2017.

Total Voting Rights 

Following Admission of the New Shares, the Company will have 142,450,119 common shares in issue and admitted to trading on the Main Market of the London Stock Exchange and the Toronto Stock Exchange Venture Exchange. The above figure 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 change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules. No shares are held in Treasury. The total number of voting rights in the Company will therefore be 142,450,119.

Sale of Shares

On December 13, 2017 and December 14, 2017, Mr. Cattaneo sold a total of 1,250,000 common shares at an average price of £0.08 per share in connection with entering into a financial instrument contract.

Entry into a Financial Instrument Contract

Mr. Cattaneo advised the Company that he had entered into a financial spread betting instrument agreement on December 13, 2017, acquiring indirect voting rights over the aforementioned 1,250,000 common shares.  

As a result of these transactions, Mr. Cattaneo will be directly beneficially interested in a total of 3,420,116 common shares, representing 2.40 per cent of the Company's issued common share capital. In addition, Mr. Cattaneo will be indirectly interested in a total of 1,250,000 common shares, being the common shares subject to the spread betting instrument, representing 0.88 per cent of the Company's issued share capital. 

For further information please contact:

Zenith Energy Ltd.  

Andrea Cattaneo

Chief Executive Officer 

Email: info@zenithenergy.ca

Telephone:  +1 (587) 315 9031

Telefax:       +1 (403) 775 4474

Optiva Securities - (Joint Broker)

Christian Dennis

Telephone: + 44 (0) 203 137 1903

Beaufort Securities Limited - (Joint Broker)

Jon Belliss

Telephone: +44 207 382 8300

Allenby Capital Limited - (Financial Adviser)

Nick Harriss

Nick Athanas

Telephone:   + 44 (0) 203 328 5656

Yellow Jersey (Financial PR/IR)

Tim Thompson

Telephone: +44 (0) 203 735 8825

NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY ASSOCIATED WITH THEM