Mr. Ian Clifford reports

ZENN MOTOR COMPANY PROVIDES CORPORATE UPDATE

Zenn Motor Company Inc. has provided an update on its recent corporate activities and near-term business plans. Since the company's most recent update on May 30, 2014, its 71.3-per-cent-owned subsidiary, EEStor Inc., has been focusing on producing electrical energy storage layers that meet or exceed specifications for a number of existing commercial capacitor products outside of high energy density storage markets. The potential benefits of an EEStor capacitor, engineered for the aluminum electrolytic capacitor market, include higher voltage capabilities in a smaller volumetric design with a longer life cycle.

Current internal test results have met initial target specifications; however, in accordance with company policy, details will not be released to the market until independently certified by a qualified third party. In that connection, the company has today engaged Intertek Group PLC, a multinational inspection, product testing and certification company, to validate the internal results under protocols selected by Intertek using its own equipment and testing in its own facilities. The results will be announced by the company once testing is completed.

Financing requirements

Zenn intends to raise gross proceeds of up to $1.5-million in a non-brokered private placement financing, which may be subscribed for in whole or in part by insiders of the company. Terms of the financing are to be established in the context of the market. Use of proceeds are intended to include:

• Hiring senior staff at EEStor to expand its capabilities and accelerate product development;
• Protecting further intellectual property;
• Extensive third party testing activities of ongoing enhancements to the current technology;
• Arranging partnership and licensing opportunities with key global capacitor companies;
• General corporate purposes and working capital.

Ian Clifford, founder and chief executive officer of Zenn and CEO of EEStor, commented: "I am very encouraged by the focus of our team at EEStor over the past two months. Bringing in Intertek as our primary testing and certification company should bring a high level of confidence in the current and ongoing results, and help us develop partnerships with leading international capacitor companies."

The private placement, if proceeded with, would be subject to the approval of the TSX Venture Exchange and there can be no assurance that the placement will be completed.

We seek Safe Harbor.