Vancouver, British Columbia--(Newsfile Corp. - December 30, 2025) - Hillcrest Energy Technologies (CSE: HEAT) (OTCQB: HLRTF) (FSE: 7HI) is pleased to announce the successful completion of Phase 1 of its technology evaluation project with a global Tier 1 automotive supplier. The project successfully demonstrates the technical feasibility of converting the supplier's half-bridge power modules to enable Zero Voltage Switching (ZVS) operation for next-generation electric vehicle (EV) inverter applications.

ZVS Evaluation Complete

The global Tier 1 automotive supplier involved in this evaluation is consistently ranked among the top 15 largest by revenue and is a recognized leader in automotive electrification. Specializing in critical power electronics components including inverters for electric vehicles, the supplier serves major automotive manufacturers worldwide and provided an optimal validation framework for this ZVS technology integration project.

In March 2025, Hillcrest announced the commencement of this project, with the Phase 1 objective being to develop the conversion of the supplier's half-bridge power modules to enable ZVS operation, with the aim of assessing the potential efficiency and performance of Hillcrest's technology on the Tier One Supplier's inverter architecture. Hillcrest successfully completed all requirements of the Phase 1 project and demonstrated technical viability through baseline measurements, hardware design, production and assembly of prototypes, double pulse testing, and final hardware delivery.

"The completion of this project phase represents an important proof point for our technology and demonstrates a clear pathway for ZVS integration into established automotive supplier platforms," said Hillcrest CEO, Don Currie. "We now have concrete validation that our ZVS technology can be successfully integrated into Tier 1 automotive supplier products. This strengthens our position as we prioritize the highest-value opportunities across both automotive and grid-connected market segments."

Strategic Focus on Highest-Value Commercial Opportunities

The successful Phase 1 completion positions Hillcrest to execute a focused commercialization strategy that prioritizes customer engagements and partnerships offering the highest commercial value and fastest paths to revenue generation across both automotive and grid-connected applications.

Automotive Technology Monetization

Hillcrest is actively prioritizing technology monetization opportunities in automotive applications based on commercial value potential, strategic fit, and partnership readiness. The Phase 1 completion provides third-party validation that ZVS technology can be successfully integrated into automotive inverter platforms while delivering measurable performance benefits. The Company's commercial traction inverter prototypes have achieved up to 99.7% efficiency and demonstrated system-level efficiency gains of up to 6% at various low-power operating points using the Worldwide Harmonized Light Vehicle Test Procedure (WLTP).

The Company is focusing its automotive business development efforts on engagements with automotive OEMs, Tier 1 suppliers, and strategic partners that demonstrate the strongest potential for near-term value creation through technology licensing, joint development agreements, or comprehensive partnerships. Hillcrest's extensive intellectual property portfolio, validated through numerous rounds of rigorous third-party evaluation, provides a strong foundation for value-creating arrangements. The Company is prioritizing discussions with parties that can offer sector-focused exclusivity, substantial licensing revenues, or strategic partnerships that accelerate commercial deployment while potentially providing non-dilutive capital to support grid-connected product development.

Grid-Connected Product Development and Market Entry

Concurrent with automotive technology monetization efforts, Hillcrest is advancing development of its ZVS PCS1000 (200kW | 1000V) while strategically prioritizing customer engagements and partnerships that offer the highest commercial value and clearest paths to market entry. The team is progressing development toward A-sample prototype demonstrations expected in Q2 2026 for applications such as data centers, energy storage, and EV charging.

Next-Generation AI Data Center Applications

The ZVS PCS1000 has been purpose-engineered as the optimal grid interface for next-generation AI data centers, directly addressing critical infrastructure challenges as the sector undergoes fundamental transformation. The Open Compute Project, supported by major technology leaders including Meta, Microsoft, Intel and NVIDIA, is standardizing 800V DC distribution to handle AI workload power densities that are reshaping facility requirements.

Traditional data center power architectures face significant limitations as AI computing demands escalate. Conventional systems route power through multiple conversion stages-introducing substantial inefficiencies where each conversion stage generates heat and consumes valuable space. The ZVS PCS1000 addresses these challenges through streamlined 800V DC architecture that eliminates intermediate conversion stages, with power flowing directly from medium voltage grid to 800V DC through the ZVS PCS1000, then through isolated DC-DC converters to computing loads.

The efficiency advantages translate directly to substantial economic value in data center applications. The ZVS PCS1000's greater than 99% efficiency represents meaningful improvement over state-of-the-art inverters currently on the market. For a 100MW data center facility, each additional 0.5% efficiency improvement avoids 500kW in conversion losses, reducing both direct electricity costs and substantial cooling infrastructure required to manage waste heat. These savings compound over the facility lifecycle, improving return on investment for data center operators facing rising energy costs and increasing pressure to meet sustainability commitments.

The 200kW modular design of the ZVS PCS1000 provides critical architectural flexibility, scaling from single units to multi-megawatt installations exceeding 1.2MW through parallel operation, with N+1 redundancy and hot-swap capability enabling zero-downtime maintenance. This modular scalability allows data center operators to match power infrastructure precisely to computing requirements while maintaining flexibility to expand capacity as AI workload demands grow.

The Company recently released a white paper quantifying component-level advantages enabled by ZVS technology. ZVS-optimized inductors demonstrate cost reductions of up to 75% compared to conventional designs, with weight reductions of up to 4x and volume reductions of up to 3.3x. In data center applications where space commands premium value, these reductions translate to measurable capital savings and enable more flexible facility layouts. The ultra-low electromagnetic interference (EMI) characteristics address critical requirements for sensitive computing environments while simplifying grid compliance.

Broader Grid-Connected Market Opportunities

Beyond data centers, the ZVS PCS1000 platform addresses substantial market opportunities across energy storage systems, EV charging infrastructure, renewable energy integration, and industrial power conversion. The Company is establishing strategic partnerships to accelerate these grid-connected applications, including advanced discussions with Pasqua First Nation and Apeiron Resources Ltd. regarding Canadian manufacturing and commercialization of ZVS grid inverter products. The partnership structure is expected to emphasize meaningful economic participation, energy sovereignty, and community ownership, with target markets spanning energy storage systems, AI data centers, industrial applications as well as remote microgrids.

Value Creation Through Strategic Prioritization

Hillcrest's strategic approach focuses resources on opportunities offering the highest probability of near-term commercial success and substantial value creation. In automotive applications, this means prioritizing licensing and partnership discussions with parties demonstrating strong commercial commitment and clear paths to technology deployment. In grid-connected applications, this means focusing product development and customer engagement on markets where ZVS technology delivers quantifiable economic advantages and where customer needs align with the Company's technical capabilities and development timeline.

"Completion of this phase with the Tier 1 automotive supplier strengthens our strategic position," concluded Currie. "We have demonstrated our technology's practical integration into demanding automotive applications, while simultaneously advancing our grid-connected product pipeline toward commercial launch. We are now focused on pursuing the highest-value opportunities in both markets: monetizing our proven automotive technology through licensing and partnerships with the most commercially attractive parties, while bringing our ZVS PCS1000 products to market to serve the rapidly growing data center sector and other high-value grid applications. By prioritizing engagements based on commercial value potential and strategic fit, we position Hillcrest to create substantial shareholder value through focused execution on the opportunities most likely to generate near-term revenue and validate our commercial model."

About Hillcrest's Zero Voltage Switching (ZVS) Technology

Hillcrest Energy Technologies has developed a true Zero Voltage Switching (ZVS) inverter technology. The proprietary topology eliminates hard-switching losses by precisely timing switching events when voltage is zero, addressing fundamental challenges facing modern power conversion devices. While wide bandgap semiconductors like SiC have revolutionized inverter design, they introduce system-level challenges including increased EMI and persistent switching losses. Hillcrest's ZVS technology is specifically designed to complement and enhance wide bandgap semiconductors, addressing these challenges through system-level optimization.

About Hillcrest Energy Technologies Ltd.

Hillcrest Energy Technologies is an energy technology company focused on providing advanced power conversion technologies and digital control systems for next-generation powertrains and grid-connected renewable energy systems. From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future. Hillcrest is publicly traded on the CSE under the symbol "HEAT," on the OTCQB Venture Market as "HLRTF" and on the Frankfurt Exchange as "7HI". For more information, please visit: https://hillcrestenergy.tech/.

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