Mr. Jeff Allison reports

HTC PURENERGY INC. (DBA "HTC PURENERGY") ANNOUNCES UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR THE SECOND QUARTER PERIOD ENDING JUNE 30TH, 2016

HTC Purenergy Inc. has released its unaudited condensed consolidated interim financial results for the second quarter period ended June 30, 2016.

HTC and its subsidiaries, save for Maxx Group of Companies Corp. and Clear Glycol & Solvents Inc., are development-stage companies. HTC and its subsidiaries participate in two industry sectors: industrial and energy services and clean-energy technologies.

Clean-energy technologies

Companies doing business in the energy industry are looking for cost-effective methods and new energy technologies to produce their products, while at the same time being environmentally sustainable and profitable. The carbon dioxide capture and gas purification mandate is to develop and commercialize the technologies that satisfy these requirements and to commercialize these product offers worldwide. HTC has developed cost-effective CO2 capture solutions for CO2-enhanced heavy oil production, coal and gas power generation, and the industrial food-grade CO2 markets. HTC participates in this sector through its commercial entity: HTC CO2 Systems Corp., within its proprietary LCDesign and PDOengine technologies.

HTC is optimistic about the opportunities in the gas-processing industry, whereby the Delta Purification System can be utilized to clean up the solvents and glycols used in over 800 natural-gas-processing plants and 6,800 natural gas compression and pumping stations located in Western Canada. Pending changes in current legislation will continue to open up the market for solvent and glycol reclaiming/recycling solutions versus the traditional disposal/dump legacy methods.

Industrial and energy services

The industrial and energy services sector is focused on servicing industry and energy by providing services for industrial facilities, potash mines, oil and gas producers, and drilling service contractors in Western Canada and the north-central United States. The commercial operating entity servicing this sector is 101059035 Saskatchewan Ltd. doing business as Pinnacle Industrial Services. During the downturn in the oil and gas sector, Pinnacle has remained financially viable through a combination of expense reductions and diversification into other market sectors, such as structural steel, agricultural manufacturing, custom fabrication for the potash industry, oil and gas BOP certification, and special projects.

The brand Maxx Energy, supplied by HTC's subsidiary Pinnacle, provides a diverse line of high-technology products. These newly developed products generate higher sale volumes and are differentiated from other standard oil field products because of the automation and advanced technologies utilized in design. Products sold under the Maxx Energy banner include: the Guardian automated pipe-handling system; Mud Master advanced mud control systems; hot- and cold-water customized frack tankage; and containment systems.

Financial results

Selected financial information of HTC is summarized herein. Information provided in the attached table is prepared in accordance with international financial reporting standards.

                                  FINANCIAL RESULTS
                                                        Six months ended      Six months ended
                                                           June 30, 2016         June 30, 2015
                                                                                    (restated)*

Revenue                                                       $3,930,580            $7,014,272
(Loss) from operations                                       $(2,344,054)          $(1,059,762)
Income (loss) from continuing operations                      $1,763,877           $(1,071,266)
Net income                                                    $2,629,642              $810,260
Total comprehensive income                                    $3,109,597              $297,520
Profit per common share (weighted average)                        $0.087                $0.027
Fully diluted profit per common share (weighted                   $0.069                $0.021
average)**

* Comparative amounts have been restated to consider discontinued operations.
** Diluted net loss per common share is not presented, as the effect would be 
anti-dilutive.

For the period, the corporation had operating revenue of $3,930,580 (June 30, 2015: $7,014,272), of which $3,256,894 (June 30, 2015: $5,402,125) came from HTC's subsidiary Maxx; $32,080 (June 30, 2015: $1,612,147) came from engineering and process design; and $641,606 came from ClearGSI. The decrease in revenue in Maxx is associated with the sale of Maxx's subsidiary, NuVision Industries Inc., in the period and downturn in the oil sector impacting operations in the period. The decrease in engineering and process design is due to the completion of work on the Husky/Lashburn project CO2 capture facility.

Costs of sales reflect manufacturing and sales costs associated with Maxx, ClearGSI and their subsidiaries. The decrease is a result of the reduced sales in Maxx. Engineering and process design services include costs associated with the provision of engineering services. Services for the period were $20,913 as compared with $1,533,392 as at June 30, 2015, reflecting decreased activity associated with the completion of the Husky/Lashburn project. Decrease in costs is due to the completion of the project in 2015. Costs incurred in the period relate to maintenance costs. Commercialization, product development and administrative expenses for the period were $3,234,234 as compared with $2,639,509 for the prior year. The increase in 2016 is primarily due to new operating costs incurred in connection with ClearGSI and its subsidiaries (not present in the 2015 comparative period), the sale of NuVision, and product development costs associated with the Delta Purification System, as well as rising compliance and administrative costs. Amortization for the period was $334,343 (June 30, 2015: $249,671).

The corporation had an operating loss of $2,344,054 as compared with a loss of $1,059,762 for the period ended June 30, 2015. The increase in operating loss is primarily related to the downturn of the oil sector, the expansion of the newly acquired ClearGSI and costs relating to the disposition of NuVision.

Net profit for the period was $2,629,642 compared with $810,260 in the prior period. The increase in income is primarily attributable to the sale of NuVision resulting in a large capital gain on sale of the investment of $4,039,962 offset by increased costs as described above.

Total assets for the period were $28,298,826 compared with $31,526,385 as at Dec. 31, 2015. The primary reasons for the net decrease are the removal of NuVision's assets and goodwill due to the sale, the use of cash to reduce current liabilities since year-end, and increased amortization associated with ClearGSI.

We seek Safe Harbor.