Mr. Ted Konyi reports

SMARTCOOL ANNOUNCES CLOSING OF FIRST TRANCHE OF PRIVATE PLACEMENT OFFERING

Smartcool Systems Inc. has closed the first tranche of a non-brokered private placement offering of up to 20 million units at a price of five cents per unit. In the first tranche, the company sold 2.95 million units for gross proceeds of $147,500. The company intends to close a second tranche of this offering on or before Feb. 25, 2019.

Each unit comprises one common share in the capital of the company and one non-transferable share purchase warrant. Each warrant will entitle the holder to purchase one additional share in the capital of the company for a period of one year from the closing date at an exercise price of eight cents, subject to an acceleration provision, whereby, in the event that the company's common shares have a closing price on the TSX Venture Exchange of greater than 11 cents per share for a period of 20 consecutive trading days, the company may accelerate the expiry date of the warrants by giving notice to the holders thereof and, in such case, the warrants will expire on the 30th day after the date on which such notice is given to the holders.

The company plans to use the proceeds for marketing initiatives, research and development, and general working capital.

All of the securities issued in the first tranche of the offering are subject to a hold period expiring on June 13, 2019. The warrants are not transferable.

The company paid a cash commission of $7,800 and issued 156,000 non-transferable broker warrants to one finder in connection with certain subscriptions in the financing. Each broker warrant shall entitle the holder to purchase one unit at a price of five cents per broker unit until Feb. 12, 2020, with each broker unit consisting of one share and one share purchase warrant, with each broker unit warrant entitling the holder to purchase one additional share at a price of eight cents until Feb. 12, 2020.

About Smartcool Systems Inc.

Smartcool Systems provides cutting-edge, energy-efficient and energy-cost-reduction solutions for businesses around the world. The ECO3, ESM and ECOHome are Smartcool's unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems by up to 40 per cent.

Total Energy Concepts, a wholly owned subsidiary of Smartcool, is a national leader in power protection, energy management, power quality, facility grounding and lighting solutions that help companies improve their bottom line by reducing expenses that drastically cut into company profits.

We seek Safe Harbor.