Mr. Matt Gowanlock reports

CLEANTEK INDUSTRIES INC. ANNOUNCES 2023 Q3 RESULTS

Cleantek Industries Inc. has released its third 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.

Cleantek chief executive officer Matt Gowanlock commented: "The third quarter saw the company grow revenues by another 6 per cent compared to the same period last year, demonstrating the effectiveness of our geographic focus and expanded asset fleet. The execution on our near-term strategy is resulting in positive net income and we are well positioned to finish the year with strong results."

Highlights for the third quarter of 2023 (all amounts are in thousands of Canadian dollars unless otherwise indicated):

• Cleantek generated revenue of $3,588 for Q3 2023, an increase of $199 or 6 per cent from Q3 2022. The increased revenue in 2023 is primarily due to increased Halo fleet size combined with increased rental prices, as well as the first sale of a Halo lighting unit.
• Cleantek's gross profit of $2,284 or 64 per cent of revenue for Q3 2023 was in line with target and improved when compared with gross profit of $2,029 and 60 per cent of revenue for Q3 2022.
• Cleantek's net income of $245 for Q3 2023 was a $1,268 improvement from the net loss of $1,023 for Q3 2022.
• Cleantek's EBITDA (earnings before interest, taxes, depreciation and amortization) (1) was $1,193 for Q3 2023, an increase of $1,217 when compared with Q3 2022, due to the increased net income.

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 waste-gas-fired 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:

• International expansion: Expanding on the company's recent success with the first Halo sale in a geographic area historically not serviced by Cleantek, Cleantek sees great opportunity diversifying its geographic focus and customer base, including exploring opportunities outside of the North American market for rental and/or product sales.
• SecureTek: Cleantek's line of remote security services, being offered as a stand-alone system or integrated with its 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 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 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 the first system will launch to the market in late 2022 to one of a growing number of clientele that continue to express their interest. Additional units will be determined 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;
• 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 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 third quarter 2023 revenue was $3,588, an increase of $199 from same period last year.

Selected financial and operation information is outlined in this news release 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 nine months ended Sept. 30, 2023, and Sept. 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. Complementing Cleantek's ZeroE technology is the suit of low-carbon LED (light-emitting diode) lighting systems containing our patented solar hybrid lighting systems and Halo crown-mounted lighting systems.

(1) Non-IFRS (international financial reporting standards) measures

Cleantek uses certain financial measures to quantify its results that are not prescribed by IFRS. EBITDA, adjusted EBITDA, working capital and non-current debt are not recognized measures under IFRS and may not be comparable with those reported by other companies. Cleantek believes that, in addition to measures prepared in accordance with IFRS, the non-IFRS measurements provide useful information to evaluate the company's performance and ability to generate cash, profitability and meet financial commitments.

These non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

We seek Safe Harbor.