Mr. Jim Payne reports

DYNACERT INVESTS IN MULTIPLE GLOBAL VERTICAL MARKETS IN ACCORDANCE WITH ITS STRATEGY

DynaCERT Inc. has filed its audited financial statements and accompanying management's discussion and analysis for the year ended Dec. 31, 2018.

The corporate strategy of DynaCERT continues in 2019 to expand internationally and in numerous applications of its HydraGEN technology. Highlights of the 2018 fiscal year include numerous expenditures which have been written off as expenses. For greater clarification, DynaCERT wishes to explain the significant nature and extent of its investments in 2018 as they relate to the company's successful accomplishments. Although the financial statements do not separate expenditures by their purpose, in accordance with the company's business strategy, management of the company estimates its 2018 expenditures to be approximately apportioned as follows.

Fifteen per cent in Canadian endeavours, including representations and negotiations with Canadian federal and provincial governments regarding tax, subsidies and legislation that could affect DynaCERT's HydraGEN technology favourably in the months ahead (see press releases dated Dec. 19, 2018, and Oct. 1, 2018). In 2018, DynaCERT commenced establishing its brand recognition in Canada and in the United States, as it launched and showcased its HydraGEN technology product line in industries such as trucking and heavy equipment shows in Ontario, Quebec, Western Canada and Kentucky. The company has also started to initiate pilot projects with several large trucking and heavy equipment companies in both Canada and the United States.

Fifteen per cent for European endeavours, including setting up a wholly owned company, DynaCERT GMBH, and opening and staffing of office and warehouse facilities in Lahr, Germany, to spearhead all European sales efforts, marketing in Europe and setting up new dealerships in Europe. The TUV NORD and TUV SUD testing and certification in 2018 has been very successful and the company awaits KBA homologation (see press releases dated Sept. 24, 2018, and Aug. 16, 2018). The company also has secured a dealer in Scotland that will distribute the HydraGEN product line across the United Kingdom. The company is also pleased that a pilot project was successfully launched in Austria pursuant to a letter of intent for outfitting government diesel-powered vehicles and equipment upon successful demonstration of emission reductions (see press release dated Dec. 20, 2018).

Five per cent in North American non-Canadian endeavours, including negotiations regarding the United States and Mexican strategies for market penetration. Moreover, the company is advancing in California Air Research Board (CARB) certification, EPA recognition processes and numerous large potential users of its HydraGEN technology.

Fifteen per cent in South Asia endeavours, where the company already has earned firm orders, letters of intent from two separate provinces of India, received iCat certification for its HydraGEN technology and has established strong ties and continuing in talks with governments of India through its select group of dealers (see press releases dated Feb. 27, 2018, March 2, 2018, June 21, 2018, Sept. 17, 2018, Dec. 28, 2018, and Jan. 16, 2019).

Five per cent for Middle East endeavours, where the company has showcased its HydraGEN technology and signed up a well-connected dealer for all of the Middle East based in Dubai, and, also separately, an exclusive distributor for Israel. Both Israel and Dubai are such key areas for the use of HydraGEN technology that the company has appointed to its advisory boards senior strategic advisers regarding those specific jurisdictions. Results in the Middle East in 2018 have been very successful, especially in terms of trials of its HydraGEN technology for use on cranes and on generators (see press releases dated April 10, 2018, May 11, 2018, Sept. 17, 2018, and Dec. 28, 2018).

Ten per cent in the mining and marine sector. The company is strategically targeting both open-pit and underground mining globally as a key market for its HydraGEN technology as a consequence of the industry's dependency on diesel. The company has followed up in 2019 by launching its HydraGEN technology in the mining industry while showcasing at the Prospectors and Developers Association Convention, one of the world's largest mining conventions, along with being awarded the top prize at the Mining Cleantech challenge in Denver, Colo. (see press releases dated March 22, 2019, and April 11, 2019). The company has started the type approval under Transport Canada and Lloyds Register policies for equipment on marine vessels under the safety of life at sea (SOLAS) rules and regulations (see press releases dated April 20, 2018).

Fifteen per cent for the eventual collection and sale of Carbon Credits. The company recently announced part of its new team of highly qualified professionals, Monika Wojcik and Brian Semkiw, to obtain certification of its HydraGEN technology to accommodate Carbon Credit trading.

Twenty per cent in development work and legal fees for the continuation to advance its important intellectual property portfolio, including additional patent applications and securing world-wide patent protection on its initial patents.

Jim Payne, president and chief executive officer of DynaCERT, said: "We think of our 2018 expenditures as investments foreshadowing the inordinate potential future that lies ahead. In 2018, DynaCERT has established a unique and diversified team around the world, in different jurisdictions, aimed at numerous vertical markets. We are preparing for a future of our proud Canadian company based in Toronto to market its revolutionary technology around the world."

About DynaCERT Inc.

DynaCERT manufactures, distributes and installs carbon emission reduction technology for use with internal combustion engines. As part of the growing global hydrogen economy, the company's patent-pending technology creates hydrogen and oxygen on demand through electrolysis and supplies these through the air intake to enhance combustion, resulting in lower carbon emissions and greater fuel efficiency. Its technology is designed for use with all types and sizes of diesel engines used in on-road vehicles, reefer trailers, off-road construction, power generation, mining and forestry equipment, marine vessels, and railroad locomotives.

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