Mr. Matt Gowanlock reports

CLEANTEK INDUSTRIES INC. ANNOUNCES RECORD 2023 Q1 RESULTS, APPOINTMENT OF COO AND EXPANSION OF THE COMPANY'S PRODUCT PORTFOLIO

Cleantek Industries Inc. has released its record first quarter 2023 financial and operational results. Cleantek is an innovative provider of patented, clean technology solutions focused on reducing both cost and carbon intensity in the wastewater management and industrial lighting sectors across North America. All amounts are in thousands of Canadian dollars unless otherwise indicated.

Cleantek chief executive officer Matt Gowanlock commented: "It has been a tremendous start to 2023 for Cleantek. We are pleased to announce positive earnings and record revenues along with the launch of two new product and service offerings that will add depth to our portfolio of ESG accretive technology. In line with our growth strategy is building a strong team, and promoting an experienced individual in Chris Murray to COO will serve to accelerate our growth and capabilities as an organization."

Highlights for the first quarter 2023

• Cleantek generated revenue of $3,833 for Q1 2023, an increase of $686 or 22 per cent, from Q1 2022. The increased revenue in 2023 is primarily due to a ramp-up in rental activity and increased rental prices in both sustainable lighting solutions and ZeroE dehydration;
• Cleantek's gross profit of $2,317 or 60 per cent of revenue for Q1 2023 was in line with target and improved substantially when compared with gross profit of $1,836 and 58 per cent of revenue for Q1 2022;
• Cleantek's net income of $180 for Q1 2023 was a $914 improvement from the net loss of $734 for Q1 2022;
• Cleantek's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $1,184 for Q1 2023, an increase of $24 when compared with Q1 2022 primarily due to the increased revenue.

Expansion and outlook

Cleantek's strategy focuses on delivering innovative and cost-effective solutions that reduce the carbon intensity as well as the capital and operating costs of industrial operations. By focusing on expanding the market awareness and adoption of its sustainable lighting solutions and wastewater treatment assets, Cleantek continues to experience increased utilization of these high-margin product lines.

In Q1 2023, the company launched two new growth initiatives, including SecureTek, Cleantek's line of remote security services, as well as the company's newest addition to the ZeroE line of wastewater treatment products, the mobile GZeroE. Both growth initiatives will utilize the company's existing asset base and will require minimal capital investment for what the company believes could be substantial growth opportunities in adjacent industry verticals.

• SecureTek -- Cleantek's line of remote security services, being offered as a stand-alone system or integrated with the company's sustainable lighting products, is expected to drive higher utilization of existing assets and creating an exciting new recurring revenue stream for the company. Utilizing the company's existing infrastructure, SecureTek is an accretive bolt-on service offering and a great opportunity to expand the company's reach into the construction, mining, storage, agriculture and other commercial markets, with minimal new capital investment.
• Mobile GZeroE -- Adding to the fleet of ZeroE technology is the company's new waste-gas powered, wastewater treatment and dehydration system, or GZeroE. GZeroE will utilize waste-gas as its primary energy source, allowing for deployment of the ZeroE system into areas without a waste-heat source while providing substantial ESG (environmental, social and governance) and cost benefits. This product is currently under construction and will launch to the market in Q3 of this year to a growing backlog of interested clientele.

The company's near-term strategy will continue to focus on:

• Maximize utilization rates of its current fleet of sustainable lighting solutions and mobile ZeroE wastewater treatment assets;
• Expanding and growing the company's fleet of sustainable lighting solutions and mobile ZeroE wastewater treatment assets to satisfy increased demand in the oil and gas, midstream, mining, industrial and construction markets;
• Leveraging Cleantek's technology to capture additional market share through organic growth of the ZeroE wastewater treatment and vaporization services;
• Expanding and diversifying Cleantek's geographic focus and customer base, including exploring opportunities outside of the North American market;
• Focusing on growth, generating positive return for shareholders and improving financial position now that the patent litigation related to the HALO lighting systems in the United States is completed;
• Evaluating new technology, products and services to increase the company's offering to its current client base.

The company is uniquely positioned with the prospect to capture expansion in both ZeroE wastewater vaporization and sustainable lighting markets. Cleantek expects that wastewater and vaporization opportunities in the oil and gas, municipal grey water, and industrial wastewater industries, and a growing awareness regarding the disadvantages and risks of down hole injection will continue to increase the demand for Cleantek's ZeroE products.

Appointment of chief operating officer

The company is pleased to announce the promotion of Chris Murray, PEng, to chief operating officer (COO), effective May 18, 2023.

Mr. Murray brings a wealth of experience to Cleantek through his extensive career as a sales, marketing and operations executive, with over 25-plus years of experience in the energy industry. Mr. Murray is recognized as a driven and highly competitive team player with extensive leadership success. He previously held positions at Total Oilfield Rentals, Patterson-UTI, Horizon Drilling as well as a previous tenure at Cleantek where he held executive roles in strategy, sales and marketing.

Operational update

Cleantek's first quarter 2023 revenue was $3,833, an increase of $686 from same period last year.

About Cleantek Industries Inc.

Cleantek is a clean energy technology company focused on ESG-accretive (environmental, social, governance) technology solutions with operations across North America. Cleantek has developed and commercialized its patented waste water dehydration technology, the ZeroE, which it rents to its customers for use at gas processing facilities and on drilling rigs focused on hydro-sustainability. Cleantek's ZeroE technology separates waste water into (i) clean water which is evaporated and returned to the natural hydrological cycle and (ii) concentrated brine which is disposed of using traditional means. The ZeroE technology is powered by the waste heat generated from the engine exhaust of gas plants and drilling rigs. Complementing Cleantek's ZeroE technology is the suit of low-carbon LED (light-emitting diode) lighting systems containing its patented solar hybrid lighting systems and Halo crown-mounted lighting systems.

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