Mr. Murray Payne reports

DYNACERT PROVIDES OPERATIONAL UPDATES

DynaCERT Inc. has provided the following operational updates.

Lease expansion facility

DynaCERT is scheduled to occupy the approximately 8,000-square-foot lease expansion facility on Oct. 1, 2016. The lease payments will commence on possession date. This facility is designed with a monthly capacity of 2,000 units per eight-hour shift for the assembly of the HydraGen units.

Government grant and loan programs

The existing manufacturing area will be converted to research and development and production of the next-generation HydraGen units, which will be designed for shipping, rail and large stationary power-generation products. The company has a planned program to work with government and port support, as well as specific consortium members to drive these initiatives.

DynaCERT is continuing to proceed through various levels and grant application stages and loan programs with both the federal and provincial governments.

Third party testing

As required by the Ontario government's requirement for a validation process to ensure qualification under any of the provincial or federal government's programs, an extensive schedule of third party testing was undertaken to validate and determine proper flow rates of its flagship HydraGen product for Class 8 trucks. These tests were completed at the University Of Ontario Institute Of Technology, a facility deemed an "automotive centre of excellence" for both fuel savings and carbon emission reductions. Two different Class 8 trucks with HydraGen units were placed on a chassis dynamometer which produced extensive readings for various emissions and fuel efficacy. These tests provided over 550 pages of valuable data. The company, along with third party engineers, is reviewing and analyzing the data. A formal report will be completed soon.

We seek Safe Harbor.