Mr. Jim Payne reports

DYNACERT ANNOUNCES PIT GROUP TEST RESULTS OVERALL POSITIVE

DynaCERT Inc. has received the complete report on the PIT Group testing for fuel consumption and emissions tests of the HydraGEN technology.

As previously reported in the company's press release dated Sept. 21, 2017, the PIT Group report states, "The results are showing significant decreases in emission levels between baseline and final measurements, of almost half for carbon monoxide (CO), total hydrocarbons (THC), and for mono-nitrogen oxides (NOx)." Testing verified that the HydraGEN HG1 unit reduced emissions of CO by 48.1 per cent, THC by 50 per cent and NOx by 46.1 per cent, all of which exceeded the company's estimates. This puts DynaCERT and the HydraGEN technology firmly into the hydrogen arena and provides companies around the world the opportunity to benefit from the carbon credit economy with proven carbon emission reduction technology.

As reported on Sept. 21, 2017, in the phase 1 test period, the test truck was operated for 36 days from June to August, 2017; this operation was not continuous as had been planned in order to decarbonize the engine with the HG1 unit. As a consequence, the test engine did not meet the necessary planned break-in requirements for achieving expected fuel efficiency, but such break-in is not required to realize emission reductions. DynaCERT elected to continue the fuel consumption testing to phase 2 using these same vehicles to maintain continuity and ensure proper test procedures were followed.

The subsequent phase 2 testing by the PIT Group on the test vehicles was conducted on Oct. 31, 2017, which, by this date, had the test vehicle travel double the previous distance. PIT then followed the industry standard test procedure based on TMC Fuel Consumption Test Procedure -- Type II, RP 1102A (TMC 2016) as was done in the phase 1 testing. Performance of the HydraGEN HG1 unit reduced fuel consumption by 5.9 per cent when run at a constant speed of 105 kilometres per hour for 100 kilometres on a flat track. Please see DynaCERT's website for a copy of the PIT Group report titled "Fuel Consumption and Emissions Tests of the HydraGEN Technology from DynaCERT."

The company is very pleased with the results of this test and confident that, due to increased torque and power from the addition of DynaCERT's technology to diesel engines, better results can be achieved on real on-road conditions and can improve over time while in use. These new PIT Group results, together with previous testing at the Automotive Centre of Excellence (ACE) as previously reported in the company's press release of Nov. 15, 2016, indicate the important capabilities of the HydraGEN technology. Moreover, the various conditions of the ACE testing, which emulated varying road conditions with a dynamometer, showed that while altering the flow of gasses of hydrogen/oxygen with the company's HydraGEN unit, test results verified a range of fuel consumption reductions from 2.7 per cent to 19.2 per cent.

Additional benefits of HydraGEN technology

Many additional benefits of the DynaCERT HG1 and HG2 line of HydraGEN technology point to a very short payback period for users. The company reports that certain users of existing HydraGEN technology who measure performance and cost-saving results continuously have experienced significant reductions in diesel exhaust fluid (DEF) consumption, significant reductions in diesel particulate matter, resulting in fewer filter (DPF) changes, and reductions in the number of annual oil changes. These changes of trucking costs have led to reduced downtime of truck usage, reduced costs and reduced truck driver annoyances and also reduced fleet management aggravations. These additional benefits combined with the company's new reduced pricing strategy can reduce the payback period of the company's products to under one year and even lower payback periods in numerous circumstances. In quantifying such benefits to end-users, the company has considered the cost of filters for Class 6 to Class 8 trucks, which can reach and exceed three replacements per year at a cost of filters of up to $3,000 (U.S.) each, DEF at a cost of $6 (U.S.) per gallon, and oil changes at a cost of $200 (U.S.) per change.

DynaCERT unveils advantageous new pricing and improved product design

The company is pleased to report that new pricing and innovative designs of its HydraGEN technology has been unveiled in order to make the company's products more attractive to intended users of all the company's line of products. The company is unveiling its new complete and improved product line as follows.

Line of HydraGEN technology products

Currently, the company has improved both lines of its current products:

1. The HG1 product line includes two product line selections:
   1. The all-new HG1 4.5T unit for 10-to-15-litre turbo diesel engines such as for the Class 6 to Class 8 truck market, off-road equipment and power generator market;
   2. The current HG1 2.5T unit for five-to-10-litre turbo diesel engines, which lends itself mainly to smaller trucks such as used in many overseas countries such as India and smaller diesel-powered machinery.
2. The HG2 product line, which is designed to be smaller and more compact than the HG1 series, currently lends itself to smaller one-to-five-litre turbo and non-turbo diesel engines and the significant Reefer market (see press release of Sept. 21, 2017).

Improved design of the HydraGEN HG1 unit

The company has completed the design of its new HG1 4.5T unit, which is now available to its customers, and anticipates that the new HG1 4.5T unit will lower the payback period to end-users, substantially more than existing HG1 2.5T units currently in use. With the company's new pricing strategy and when reviewing the combined financial benefits of the PIT-tested HG1 unit, as described herein, the payback period at new list prices is calculated to be under 12 months for those targeted vehicles travelling approximately 11,000 miles (18,000 kilometres) per month.

"We're excited to report these very encouraging results which verify, once again, that our HydraGEN technology works to the benefit of our clients," said Robert Maier, chief operating officer and chief engineer of DynaCERT.

Jim Payne, chief executive officer and president, announced: "We, at DynaCERT, are confident that the new pricing of our HG1 units, combined with the new technological benefits provided by our upcoming HG1 4.5T unit, will enable all our clients to achieve their much-needed emissions reductions and important cost benefits going forward. Our 2017 shipments have been delayed by the typical start-up, technological and logistical issues which many innovative companies encounter in their first year of commercial operations. To ensure the highest quality assurance, we expect that our new HG1 4.5T models will not be shipped in time to be recorded in the 2017 fiscal year, but DynaCERT is preparing its sales, marketing and production facilities to record sales of its new HG1 4.5T units in q1 2018 and also initiate the launch of its HG2 units shortly thereafter."

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.

We seek Safe Harbor.