Mr. Jeff Allison reports

HTC PURENERGY INC. (DBA "HTC PURENERGY") ANNOUNCES FINANCIAL RESULTS FOR FISCAL YEAR ENDING DECEMBER 31, 2016

HTC Purenergy Inc. has released its audited financial results for the fiscal year ending Dec. 31, 2016.

HTC Purenergy and its subsidiaries are participating in two industry sectors: industrial and energy services, and clean energy technologies.

Industrial and energy sector:

The brand Maxx Energy 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 their automation and advanced technologies used in their design. Products sold under the MaxxEnergy banner include: the guardian pipe handling system; advanced mud control systems; enviro tanks for petroleum-based mud drilling systems; customized frack water tankage; and containment systems.

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. HTC's CO2 (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 CO2 Systems has developed an improved proprietary CO2 capture system that has been designed to significantly reduce the cost of CO2 capture. Brand-named the HTC Low-Cost Design or LCDesign, this system has been engineered to reduce capital and operating costs while at the same time delivering superior performance by reducing energy usage, lowering emissions and improving the quality of CO2 product captured.

During the 2015 year, HTC completed the World Trade Organization patenting and commercialization of the Delta purification system, and now has a commercial unit installed at the Husky Lashburn CO2 capture plant. The Delta purification system reclaimer unit is like a kidney in the human body, in that it removes the impurities that build up in the liquid solvents and glycols used in most CO2 capture systems, allowing cleaned-up solvents and glycols to be reused instead of having to buy more solvents and dispose of the used solvents and glycols underground.

The HTC proprietary Delta purification system is unique in that it has been designed to remove the impurities from mixed and formulated solvents and glycols, resulting in a smaller environmental footprint and lower energy costs in operation.

The Husky project is showcasing the Delta purification technology, which is designed to meet the cleanup targets of gas and liquid energy streams. The Delta purification system recycles the solvents and glycols used in the process, resulting in lower operating costs and lower solvent and glycol disposal liability.

Going forward, HTC is optimistic about the opportunities in the gas processing industry, whereby the Delta purification system can be used 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 markets for solvent and glycol reclaiming/recycling solutions compared with the traditional disposal/dump legacy methods. Delta purification system advantages as compared with existing technologies are: simple design with less capital and operating costs; less waste for disposal; and higher recovery rates for solvents and glycols.

HTC currently has a number of outstanding bids for reclaimer systems, as well as CO2 capture systems, as a result of the Canadian initiatives to bring in carbon tax, and hopes to capitalize on these opportunities in 2017.

During the past year, HTC's subsidiary Clear Glycol & Solvents Inc. (ClearGSI) expanded and rebranded its operations to include two new distributors in the Alberta market area and a new sales representative focussing on east-central heavy oil operations. The company also commenced operations in Saskatchewan, which initiative has led to the sale of recycled and reclaimed glycol to the southern Saskatchewan oil patch.

Clear Glycol Inc. (Clear), a wholly owned subsidiary of ClearGSI, has also been recently qualified as a Saskatchewan-approved "glycol recycling centre," which allows Clear now to participate in the government-sponsored glycol recycling program. This program pays "collectors" for collecting glycol from recycling depots and delivering this product to approved glycol recycling centres.

Clear and Valhalla (1235014 Alberta Ltd., doing business as Valhalla Filtration 2006, a wholly owned subsidiary of ClearGSI) are also working hard on expanding the glycol processing capacity at the Stettler, Alta., glycol processing plant. The new plant being designed will triple the capacity of existing operations, as well as give the plant the option to process solvents and glycol. In addition, significant contemplated and implemented, increased government regulation, shareholder expectations, and environmental and social licence pressures are reducing the amount of glycols and solvents presently being disposed underground. This has resulted in strong market traction for the companies' products and services.

ClearGSI's plans for the 2017 year include expanding the existing plant operations in Alberta, which will be accomplished through purchasing additional equipment assets, expanding the current sales force, and looking for future expansion locations and market acquisitions, for the potential of growing organic and accretive earnings.

Financial results

Selected financial information of HTC is summarized in the accompanying table. Financial results for HTC have been prepared in accordance with international financial reporting standards.

                                                      Fiscal year ending         Fiscal year ending
                                                           Dec. 31, 2016              Dec. 31, 2015*

Revenue                                                       $9,091,313                $12,675,270
Expenses                                                     $13,877,045                $15,728,676
(Loss) from operations                                       ($4,206,050)               ($3,009,914)
Net income (loss)                                             $3,773,662                ($2,544,891)
Total comprehensive income (loss)                             $4,001,407                ($2,472,692)
Profit (loss) per common share (weighted average)                  $0.08                     ($0.07)
Fully diluted profit (loss) per common share
(weighted average)                                                 $0.07                          -

* Dec. 31, 2015, amounts have been restated to the current basis presentation arising from the
  disposition of NuVision Industries Inc.

Total assets for the year were $29,839,303, compared with $31,516,385 as at Dec. 31, 2015. The primary reasons for the net decrease are due in part to the disposition of NuVision during the year, balanced by the increase in contingent consideration receivable on the sale.

Current liabilities were $3,142,192 for the year, as compared with $10,593,078 as at Dec. 31, 2015. The decrease of $7,450,886 is largely due to the sale on NuVision, which resulted in a decrease in liabilities of $4,532,266. The balance of the change reflects a decrease of accounts payable and accrued liabilities associated with reduced oil product operations and debt restructuring.

The corporation had operating revenue of $9,091,313 (2015 -- $12,675,270). Of this, $7,015,939 (2015 -- $10,877,935) came from HTC's subsidiary Maxx Group of Companies Corp. (together with its subsidiaries referred to as Maxx), $2,043,928 (2015 -- $52,194) came from the HTC CO2 Systems operating segment, and $31,446 (2015 -- $1,745,141) came from engineering and process design. The decrease in revenue in Maxx is attributed to the downturn in the oil sector affecting continuing operations during the year. 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 year were $26,618, as compared with $1,481,104 at Dec. 31, 2015, reflecting decreased activity associated with the completion of the Husky/Lashburn project. Commercialization, product development and administrative expenses for the year were $6,931,498, as compared with $6,086,000 for the prior year. The increase in 2016 is primarily due to continuing commercialization of CO2 capture and solvent and glycol reclaiming, as well as work on the dual design of the Delta reclaimer to allow this reclaimer to work on both solvents and glycol related products.

Amortization for the year was $902,938 (2015 -- $482,064). The increase in amortization relates to amortization of reclaimer development costs as well as amortization associated with the acquisition of ClearGSI and intangible assets acquired at the end of 2015.

Finance expense realized during the year was $105,688 (2015 -- $66,028). The increase is a result of an increase in the amount of debt subject to interest relating to equipment financing (restructuring of ClearGSI).

For the year, the corporation had an operating loss of $4,206,050, as compared with a loss of $3,009,914 from operations for the year ended Dec. 31, 2015. The decrease in operation income is primarily due to the downturn of the oil sector affecting operations and the reduction in engineering processing consulting causing a redirection of resource to product development.

The sale of NuVision resulted in a gain of $9,183,826 (2015 -- nil). Current-year valuation and impairment losses, which are non-cash-related expenses, comprised $419,509 (2015 -- nil) in the impairment of goodwill resulting from the decline in the oil sector and $280,000 relating to the writedown of an inactive, available-for-sale investment. The prior year's impairment of available-for-sale assets through income was $3,860,438.

Deferred tax expense of $1,297,431 results from the accounting recognition on contingent gains associated with the sale of NuVision during the year. The amounts arise from the recognition of the potential additional sale consideration that the corporation may realize over the next few years based on a series of assumptions regarding the future income flows over the duration and the contract and the collectability of these amounts. These taxes should reverse over the next few years as amounts are realized in accordance with the terms of the contract. Deferred tax expense is offset by a deferred tax liability. Deferred tax liabilities of the prior year related to certain asset additions and were recovered in the 2016 year.

Net income for the year was $3,773,662, compared with a loss of $2,544,891 in the prior year. Comprehensive income includes the unrealized gains and (losses) on investments classified as available for sale of $227,745 (2015 -- $117,199) and represents the net change in the carrying value of the investments to the quoted value and transfer of impaired investments to the consolidated statement of loss. These adjustments do not involve cash. Comprehensive income for the year is $4,001,407, compared with a loss of $2,427,692 in 2015.

We seek Safe Harbor.