Conversion of Sterling Denominated Loan Note

ZENITH ENERGY LTD.

("Zenith" or the "Company")

FULL CONVERSION OF STERLING DENOMINATED £100,000 CONVERTIBLE LOAN NOTE

Calgary, Alberta, March 21, 2017, Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; TSX.V: ZEE), the dual listed international oil & gas production company, is pleased to announce that Gunsynd PLC ("Gunsynd") has elected to fully convert its GBP£100,000 principal amount unsecured convertible note (the "Convertible Note") into common shares of the Company ("Common Shares") at the conversion price of CAD$0.10, as outlined in the Company's prospectus published on January 5, 2017.

Upon conversion of the Convertible Note 1,637,100 Common Shares will be issued to Gunsynd. This fully extinguishes Zenith's GBP convertible debt.

Following the issuance of the 1,637,100 Common Shares, the Company will have 113,407,230 issued and outstanding Common Shares.

For further information, please contact:

Zenith Energy Ltd.

José Ramón López-Portillo

Chairman of the Board

Andrea Cattaneo

CEO & President

E-mail: info@zenithenergy.ca

Telephone: +1 (587) 315 9031

Telefax: +1 (403) 775 4474

Allenby Capital Limited - (Joint Broker)

Nick Harriss

Nick Athanas

Richard Short

Telephone:  +44 (0) 203 328 5656 

Optiva Securities - (Joint Broker)

Christian Dennis

Telephone: +44 (0) 203 137 1903