Mr. Murray Payne reports

DYNACERT ANNOUNCES FINANCIAL RESULTS FOR THE SECOND QUARTER OF FISCAL 2017

DynaCERT Inc. has released its quarterly financial statements and management discussion and analysis for the three and six months ended June 30, 2017 (fiscal Q2 2017). This press release should be read in conjunction with DynaCERT's financial statements and management discussion and analysis for the quarter ended June 30, 2017. These documents can be found on the company's website or on SEDAR.

Robert Maier, chief operating officer of DynaCERT, stated: "We encountered significant challenges during the quarter with one of our key suppliers, which required us to redesign key electrical components and resulted in us discontinuing our relationship with that supplier. The company has retained legal counsel and has put the initial supplier on notice to recover costs associated with the loss due to the defective components, the work related to the redesign, and the delays in income related to business interruption. The company is discussing with legal counsel the appropriate next steps, which may include legal action. This redesign was completed in August."

The company noted that a number of its U.S. and Canadian end-users and dealers had advised that they were delaying release of their orders for HG1 units pending the completion of the testing at the PIT Group facility in Montreal.

Q2 highlights:

• Revenue of $238,737;
• Gross profit of $103,141;
• Net loss of $992,105.

DynaCERT has engaged a third party for validation testing of the HydraGEN technology. This testing will be conducted at the accredited PIT Group in Montreal, which use the official Transport Canada's test track to provide real-life test results in a controlled manner. The joint protocol TMC/SAE J1321 Type II is the recommended practice providing a standardized test procedure for comparing the in-service fuel consumption and emissions of a test vehicle with another equal vehicle. The unchanged control vehicle is operated in tandem with the test vehicle, which has an HG1 unit operating on it to provide reference fuel consumption and carbon emissions performance data. PIT Group has advised that it will take two to three weeks to complete its report on the test results.

The company has made significant progress in the development of the HG2 unit, which is approximately 25 per cent of the size of the HG1. The HydraGEN HG2 is designed for use on diesel engines of truck classes 2 to 5, refrigerated trailers and containers, and applications such as off-road construction equipment and stationary power generators up to 300 horsepower. A production facility to produce the HG2 unit at 501 Alliance Ave. in Toronto is under construction.

About DynaCERT Inc.

DynaCERT manufactures, distributes and installs carbon emission reduction technology for use with internal combustion engines. The company's patent-pending technology creates hydrogen and oxygen on demand through electrolysis and supplies these additives through the air intake to enhance combustion, resulting in lower carbon emissions and greater fuel efficiency. The company's technology is currently in use with on-road applications.

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