Mr. Murray Payne reports

DYNACERT OBTAINS EUROPEAN APPROVAL OF ITS HYDROGEN TECHNOLOGY

DynaCERT Inc.'s wholly owned European subsidiary, dynaCERT GmbH, has obtained from Kraftfahrt-Bundesamt (KBA), the transport ministry of Germany, the Allgemeine Betriebserlaubnis (ABE) national type approval (homologation).

ABE homologation, which emanates from KBA, permits the marketing, sales, installation and use of DynaCERT's HydraGEN technology in Germany and is utilized throughout the entire European Union.

Unique innovative breakthrough

DynaCERT has achieved a major and unprecedented milestone. Applications for ABE type approval must meet stringent testing and validations required by rigorous and exacting regulation in Germany.

DynaCERT's HydraGEN technology is the only hydrogen gas supply system that has ever been approved by KBA and received homologation for the ABE type approval. This unique advantage gives DynaCERT a lead in hydrogen-based technology and provides a strong market benefit, as well as a barrier to entry for imitators and possible competitive technologies.

Importance of ABE homologation globally

The addressable market of DynaCERT's HydraGEN technology has expanded significantly and globally with the addition of this first-in-kind ABE homologation.

As a result of its reputation for excellence, the acceptance of an ABE homologation is monitored by other countries on every continent of the globe. In regulating their transportation industry, many countries and jurisdictions worldwide rely on the ABE homologation as the unequivocal standard of due diligence and excellence for the regulated use of new expertise, such as DynaCERT's HydraGEN technology.

Thorough due diligence by ABE

DynaCERT's HydraGEN technology underwent thorough testing to obtain ABE homologation. Moreover, the ABE homologation from KBA required approximately 26 months of proofs of concept, testing, validations, verifications, confirmations, authentications, rigorous trials with strict protocols, scientific analysis, exacting reviews using both on-road and in-laboratory methods, and accompanying certified reports. Numerous engineers, combustion specialists and automotive experts, including world-renowned authorities in Europe, such as Continental EMITEC, TUV Nord and TUV Sud, were consulted and relied upon by KBA which granted the ABE (see press releases dated Aug. 16, 2018, and Sept. 17, 2018).

Market size

According to the European Automobile Manufacturers Association (ACEA), there are over 398 million vehicles in the European region. Approximately 45 per cent are diesel powered. Almost all of the approximately 39 million commercial vehicles are diesel powered and these are eligible for DynaCERT's HydraGEN technology across the European Union and the rest of Europe. DynaCERT's ABE homologation from KBA applies to more than 560 MAN powered vehicle types and models.

Marketing significance

Commencing immediately, marketing and sales of DynaCERT's HydraGEN technology can launch throughout Europe by the company's numerous licensed dealers and distributors.

In the last 18 months, DynaCERT has identified and negotiated numerous distributor and dealer agreements to market and sell its HydraGEN technology. Such dealers and distributors include very qualified DynaCERT resellers covering European countries such as Germany, Austria, Belgium, Netherlands, Luxemburg, Spain, Portugal, Lithuania, Latvia, Estonia, Norway, Sweden, Finland, Denmark, the United Kingdom and Ireland.

DynaCERT continues to increase its dealer and distributor footprint in Europe and throughout the world.

Value of homologation to the trucking industry

DynaCERT's HydraGEN technology advances the same interests upheld by new European regulations and the Paris agreement on climate change.

The European regulations for carbon dioxide reduction came into effect in January, 2019. These regulations require all truck manufacturers to provide full emission testing on every new vehicle model in various load and road configurations. These tests then become the baseline from which each vehicle sold in Europe built after Jan. 1, 2025, must achieve a 15-per-cent reduction in carbon dioxide emissions. A further 5-per-cent reduction requirement is to be achieved by 2030. Vehicles that do not achieve these carbon dioxide reductions will lose their regulatory approvals (see press release of Sept. 24, 2018, and the European Union regulation entitled "Commission Regulation (EU) 2017/2400 of Dec. 12, 2017, of the European Parliament as regards the determination of the CO2 emissions and fuel consumption of heavy-duty vehicles.")

DynaCERT's HydraGEN technology is a currently existing and readily available solution for this carbon dioxide pollution throughout Europe.

Validation of exceptional results

Based on the TUV Nord recorded fuel consumption reductions witnessed and certified during the ABE application process, DynaCERT's HydraGEN technology provides a return on investment (ROI) or payback of less than one year for most of its long-distance trucking user applications.

The exceptionally positive TUV Nord testing results of DynaCERT's HydraGEN technology on diesel engines which were meticulously recorded and certified during the ABE homologation process include an 8.9-per-cent improvement in fuel consumption, an 8.7-per-cent reduction in carbon dioxide, an 88-per-cent reduction in nitrogen oxide, a 52-per-cent reduction in total hydrocarbons (THC), a 54.5-per-cent reduction in particulate matter (PM) and a 74.3-per-cent reduction in particulate number.

In addition, DynaCERT is also currently engaged in applying for the monetizing of carbon credits, which can significantly improve the value proposition of the company's HydraGEN technology, its ROI and payback (see press release of March 26, 2019).

Further economic benefits include reduced diesel exhaust fluid (DEF) consumption, reduced diesel particulate filter (DPF) changes, and reduced diesel engine oil and filter changes.

Design of HydraGEN

Technology

The HydraGEN technology is designed to add a stream of pure hydrogen gas and oxygen gas into the air intake of a diesel engine. Adding pure hydrogen gas in controlled amounts through an air intake acts as a combustion catalyst improving the consumption of diesel fuel and reduces harmful carbon emissions such as nitrogen oxide.

The HydraGEN technology was developed as an on-demand system to produce hydrogen and oxygen gas and uses a sophisticated patented electrolysis system. Distilled water mixed with potassium hydroxide (KOH) is used to produce clean gas in an appropriate amount for introduction into the air intake of the engine. The exact amount of hydrogen gas flow is regulated by DynaCERT's proprietary patented electronic control unit, appropriately named the smart ECU. The determination of the rate of gas flows is a key feature of DynaCERT's proprietary know-how and HydraGEN technology.

The HydraGEN technology unit is suitable for all outdoor climates. A built-in heater ensures that the device can function even in very cold temperatures. The device is ready for operation at temperatures between minus 60 and plus 50 degrees Celsius.

The HydraGEN system is protected by a rugged, lightweight housing that is typically attached to a mounting bracket on a vehicle. The HydraGEN technology unit is powered directly from the onboard power system of the vehicle and instantly shuts down when the engine is switched off. The device can also be switched off mechanically; on the side of the device is an on-off switch.

There is no on-board storage of hydrogen gas and the system is operated in an ambient, non-pressure, condition for safety purposes.

Upcoming European events

On Nov. 8 and 9, 2019, the DynaCERT team will be available for institutional investors, private investors and industry representatives in Munich, Germany, at the International Precious Metals and Raw Materials Fair.

From Nov. 25, 2019, to Nov. 27, 2019, Jim Payne, DynaCERT's chief executive officer, will introduce the company to institutional investors, analysts and media representatives at the German Equity Forum in Frankfurt, Germany.

On Dec. 11 and 12, 2019, DynaCERT will participate in the 28th Munich Capital Market Conference (MKK) of GBC AG and present itself to analysts and investors. The event is the largest investor conference in Southern Germany for small-cap and mid-cap companies.

Corporate statements

Enrico Schlaepfer, DynaCERT's vice-president of global sales, stated: "DynaCERT is the first manufacturer of an automotive aftermarket product that is allowed to apply hydrogen and oxygen into the combustion chamber of diesel engines across Europe. We have written automotive history! With the ABE homologation in Germany, DynaCERT has reached a historic milestone in the trucking world. Over the last 26 months, our teams in Germany and Canada, collaborating with TUV Nord and TUV Sud, successfully achieved their goals. DynaCERT in Germany is now well situated to effectively position and market the HydraGEN technology in the European marketplace. In fact, with our HydraGEN technology, regional governments can align themselves with their national environmental goals for the benefit of climate protection. With available HydraGEN technology, Europe has come a step closer to achieving the ambitious pollution reduction goals set out in the Paris agreement."

Jim Payne, DynaCERT's chief executive officer, stated: "On behalf of our board of directors, I congratulate and thank all the technical staff and European teams at DynaCERT for the success of achieving DynaCERT's important homologation landmark and for their devotion and unwavering persistence in this enduring but extremely worthwhile process. DynaCERT now stands out globally as having a unique approval and validated technology that reduces carbon emissions, while at the same time reduces fuel consumption. We are grateful to have received one of the most highly respected and coveted approvals in our industry."

About DynaCERT Inc.

DynaCERT manufactures and distributes carbon emission reduction technology for use with internal combustion engines. As part of the growing global hydrogen economy, its patented technology creates hydrogen and oxygen on demand through a unique electrolysis system and supplies these gases through the air intake to enhance combustion, resulting in lower carbon emissions and greater fuel efficiency. Its technology is designed for use with many 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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