Mr. Taylor Procyk reports

URBAN SMALL MOTORS EMISSIONS ABATEMENT PROJECT 2023 RESULTS

Aether Catalyst Solutions Inc. has provided the results of the Urban Small Motors Emissions Abatement Project (USMESP) for 2023.

Highlights:

• 6 active mowers in the test fleet.
• All units showing 100% NOx reduction.
• All but one unit is over 200 hours, three are over 300 hours, and one is over 380 hours.
• Demonstrated that air injection enables us to offer a 3-way catalysis solution with one formulation.

The third season of field testing with the City of Burnaby has wrapped up with NOx conversion remaining 100% on all units. Usage for several of the mowers was particularly high this season giving us added insights into durability. Additionally, this year we were able to demonstrate that Air Injection can enable us to offer a 3-way catalysis solution with one formulation.

For the USMEAP, Aether is able to make use of the muffler housing, substituting its catalyst for existing muffler material, resulting in a plug and play solution with high performance, requiring minimal engineering, and no loss of sound dampening.

Small motors contribute significantly to urban air pollution, and currently, emissions from these small motors are lessened to the extent possible by simple factory tuning of the motors that allow them to meet minimal requirements. Thus, these devices are still responsible for considerable volumes of urban air pollution, causing significant amounts of smog, and greenhouse gas emissions. The common argument used to justify current emission requirements for small motors has been the cost of precious metal based catalytic converters being too high for consumers. However, with Aether's low- cost emission reduction technology, the cost argument is no longer valid. Additionally, over time, the general awareness of urban air pollution and greenhouse gas emissions has become a major political talking point, and voters are demanding improvements be made. In discussions with a small motors OEM, they say it now appears likely that small motor emissions will see tightened regulations soon, creating a legislated demand for Aether's technology that has drawn their interest.

Taylor Procyk, Aether's Chief Operating Officer states "I couldn't be happier with the results of the testing so far. The catalysts are performing very well and our experience implementing Aether's technology for this application has given us an excellent base of knowledge in our discussions with OEMs. This year's results suggest that Aether can offer a compelling solution for emissions control in this market."

Paul Woodward, President of Aether adds "USMEAP has provided data that has helped us secure the interest of OEMs; we believe that we have a product for the small motors application, and in entering into an NDA with one of the largest small motors manufacturers in the world, have begun the first steps of commercialization."

ABOUT THE CITY OF BURNABY:

The City of Burnaby is a vibrant city at the geographic centre of Metro Vancouver. It has an amazing natural environment, a strong cultural mosaic and thriving town centres. To meet the aggressive carbon reduction targets established by Burnaby City Council, a framework called This is Climate Action has been developed to guide how the City will put into action its commitment to be "carbon neutral" (no longer contributing to the carbon emissions that accelerate climate change) by 2050.

ABOUT AETHER:

Aether Catalyst Solutions, Inc. is focused on providing an order of magnitude cost reduction in automotive catalytic converter catalyst, while meeting, or exceeding government emission standards. Aether is working to quickly advance its technology through rapid screening of new materials directed at enhancing end of life conversion levels after accelerated aging. While Aether's primary focus has been automotive applications, the company is also developing catalysts to address small motors emissions a significant contributor to urban air pollution.

We seek Safe Harbor.