Mr. Matt Gowanlock reports

CLEANTEK INDUSTRIES INC. ANNOUNCES 2023 Q2 RESULTS

Cleantek Industries Inc. has released its second 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 waste water 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: "While the second quarter has historically been our softest quarter, due in large part to the Canadian spring weather, our strategy of deploying assets to the United States is working and our revenues improved compared to the second quarter of 2022. Revenues are starting to see the benefits of our new product and service offering in SecureTek and GZeroE is on track for our first unit to be deployed in the third quarter that will add depth to our portfolio of ESG accretive technology. In addition to these new product and service offerings, we are pleased to announce that Cleantek sold its first Halo lighting system into an area of North America we do not currently service, as a way to maximize our revenue potential. We are exploring further potential Halo sales, targeting new geographic locations."

Highlights for the second quarter of 2023:

• Cleantek generated revenue of $3,397 for Q2 2023, an increase of $271 or 9 per cent from Q2 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 $2,084 or 61 per cent of revenue for Q2 2023 was in line with target and improved when compared with gross profit of $1,706 and 55 per cent of revenue for Q2 2022.
• Cleantek's net loss of $687 for Q2 2023 was a $756 improvement from the net loss of $1,443 for Q2 2022.
• Cleantek's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (1) was $586 for Q2 2023, an decrease of $246 when compared with Q2 2022 as the increased revenue was offset by increased foreign exchange loss.

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 waste water treatment assets, Cleantek continues to experience increased utilization of these high-margin product lines.

In 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 waste water 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 Cleantek's existing infrastructure, SecureTek is an accretive service offering and a great opportunity to expand Cleantek'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 Cleantek's new waste-gas-powered waste water 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 one unit will launch to the market in Q3 of this year to a growing backlog of interested clientele. Additional units will be based off customer demand and feedback.

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 waste water treatment assets;
• Expanding and growing the company's fleet of sustainable lighting solutions and mobile ZeroE waste water treatment assets to satisfy increased demand in the oil and gas, mid-stream, mining, industrial, and construction markets;
• Leveraging Cleantek's technology to capture additional market share through organic growth of the ZeroE waste water treatment and vaporization services, including the new mobile GZeroE, as well as the new product and service offering in SecureTek;
• Expanding and diversifying Cleantek's geographic focus and customer base, including exploring opportunities outside of the North American market for rental or product sales;
• 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 Cleantek's offering to its current client base.

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

Operational update

Cleantek's second quarter 2023 revenue was $3,397, an increase of $272 from same period last year.

Selected financial and operation information is outlined below and should be read in conjunction with Cleantek's unaudited condensed consolidated interim financial statements and management's discussion and analysis (MD&A) for the three and six months ended June 30, 2023, and June 30, 2022, which are available on SEDAR.

About Cleantek Industries Inc.

Cleantek is a clean energy technology company focused on ESG accretive 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. Complimenting 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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