Mr. Murray Payne reports

DYNACERT AND GALAXY POWER APPLAUD THE CANADIAN CLEAN TECHNOLOGY TAX INCENTIVES OF BUDGET 2022

DynaCERT Inc. and Galaxy Power Inc. applaud the recently announced changes proposed in the Canadian government's budget of April 7, 2022, regarding the creation of a 30-per-cent new tax credit for investments in clean technology focused on net-zero technologies, battery storage and clean hydrogen, a new 30-per-cent critical mineral exploration tax credit and certain other provisions relating to expanding clean technology tax incentives associated with flow-through shares, including the expansion of Class 43.1 and Class 43.2 Canadian renewal and conservation expense (CRCE) tax definitions, and certain new deductions.

Successful consultative meetings

DynaCERT and Galaxy Power and their principals have been meeting for more than two years with cabinet ministers, elected members of Parliament as well as senior officials within the government to advance and assist with the implementation of clean technology tax deferrals and tax credits. DynaCERT and Galaxy Power have had face-to-face meetings, conversations and correspondence with political parties on all sides to help bring clean technology tax incentives to fruition.

Foreseeable future economic benefit

Budget 2022 and its corresponding proposals for clean tech incentives were endorsed by Justin Trudeau, Canada's Prime Minister and leader of the Liberal Party of Canada, Chrystia Freeland, Canada's deputy Prime Minister and Minister of Finance, Steven Guilbeault, Environment and Climate Change Minister, and Omar Alghabra, Minister of Transport, among many other dignitaries.

Accordingly, Galaxy Power and DynaCERT welcome the clean tech incentives as lasting strong evidence of an obvious, clear, irrefutable and unequivocal foreseeable future economic benefit for all Canadians and to such Canadian participants such as DynaCERT and Galaxy Power.

Support for continued government consultation

DynaCERT and Galaxy Power continue to support the government's openness in a consultative process on the design details of the tax matters in clean technology and see consultative measures as a rational and important step to continue to expand clean technology flow-through shares.

Clean technology incentives reduce greenhouse gas emissions (GHGs)

The new clean tech incentives can enhance the financial potential of fast-growing clean technology companies that foster clean technology in Canada to reduce global greenhouse gas emissions.

Enhancing growth of canadian companies

Galaxy Power and DynaCERT believe that the clean tech incentives in Budget 2022, along with the Budget 2021 proposed expanded clean technology flow-through share policy, when successfully implemented, can greatly enhance the much-needed financing capabilities of clean technology companies in Canada while at the same time contributing to the Canadian government's objectives of reducing Canadian greenhouse gas emissions and enhancing rapid Canadian economic growth from coast to coast.

The clean tech incentives in Budget 2022 are seen as being in accordance with the objectives of the Paris Agreement of the United Nations, which is a legally binding international treaty on climate change.

Importance of tax incentives

As opposed to government grants, significant tax credits and clean tech incentives as the ones contained in Budget 2022 bring to the private sector the impetus to make business decisions based on reducing greenhouse gas emissions and places the incentive to invest in clean technology on the private sector while using private-sector capital as opposed to direct investing by governments.

The new clean tech incentives clearly demonstrate the federal government's recognition of the need to involve private-sector capital to combat greenhouse gas emissions.

This involvement of private-sector capital is seen as consistent with, and an important precursor to, a continued expansion of clean technology flow-through share policy, which could bring vast amounts of additional capital from the capital markets in Canada.

Creation of jobs throughout Canada

Galaxy Power and DynaCERT believe that clean tech incentives can create numerous jobs across the nation, for individual workers, scientists, engineers, researchers, entrepreneurs, as well as start-ups and large multinationals, and many other contributors, of all employment ages, in urban and remote areas of Canada.

Galaxy Power has indicated in its talks with government officials that thousands of jobs have been created with the multiple billions of dollars of the national mining and oil and gas investments attributed to flow-through shares, which were first magnificently instituted by successive Canadian governments since approximately four decades ago and endorsed by successive provincial governments.

Jean-Pierre Colin, president and chief executive officer of Galaxy Power, stated: "The historic changes contributing to the new clean tech incentives contained in Budget 2022 are very significant for all Canadians. Galaxy Power warmly thanks and applauds the Canadian government and all of the politicians and members of Parliament and the senior government officials who put forward strong climate change action by endorsing new clean tech incentives.

"In addition to the well-meaning but financially limited ability of governments, the larger collective economic might of the Canadian capital markets is required in order to address the risky challenges of financing the urgent high-priced fight against GHGs. The expansion of clean technology flow-through share tax provisions has potential to attract the numerous capital market participants to become directly involved. Galaxy Power recognizes with pronounced esteem the vital efforts of all the non-partisan participants throughout all of Canada who continually foster the significance and expansion of eligibility of clean technology flow-through shares."

Jim Payne, president and chief executive officer of DynaCERT, stated: "As the owner of 20 per cent of Galaxy Power, DynaCERT is very pleased with the proposed new tax credit for investments in clean technology of Budget 2022. This successful endeavour, supported by DynaCERT and Galaxy Power, may have a historical significance one day in Canadian financial history. The long efforts of the entire team at Galaxy Power in furthering the new clean tech provisions under Budget 2022 have been endorsed by the entire Canadian government, and we thank governments and parliamentarians for their availability and understanding. DynaCERT also thanks Galaxy Power for their tenacious initiative, which can have long-lasting economic benefits to DynaCERT."

About flow-through shares

Clean technology flow-through shares can enhance the non-government private sector in Canada to contribute to the international battle against climate change without the reliance on government grants.

About DynaCERT Inc.

DynaCERT manufactures and distributes carbon emission reduction technology for use with internal combustion engines. As part of the growing global hydrogen economy, the company's patented technology creates hydrogen and oxygen on demand through a unique electrolysis system and supplies these gases through the air intake to enhance combustion, resulting in lower carbon emissions and greater fuel efficiency. The company's technology is designed for use with many types and sizes of diesel engines used in on-road vehicles, reefer trailers, off-road construction, power generation, mining and forestry equipment, marine vessels, and railway locomotives.

We seek Safe Harbor.