Mr. Jim Payne of DynaCERT reports

CIPHER NEUTRON, DYNACERT'S PARTNER, SIGNS GREEN HYDROGEN COLLABORATION AGREEMENT WITH STRATEGIC RESOURCES

DynaCERT Inc.'s AEM (anion exchange membrane) green electrolyzer partner, Cipher Neutron Inc. (CN), and Strategic Resources Inc. have executed a collaboration agreement to study supplying the BlackRock project's metallurgical facility (owned by Strategic), located in Saguenay, Que., Canada, with anion exchange membrane electrolyzers. These AEM electrolyzers, manufactured by Cipher Neutron, will be designed to produce green hydrogen in order to support the transition to green steel. As per Strategic's recent National Instrument 43-101 feasibility study, Strategic plans on using natural gas for its Tenova HYL Energiron direct reduction plant, which can also use hydrogen. The collaboration agreement will enable Strategic to accelerate its hydrogen development road map and move toward producing near-emission-free iron metallic products for use in electric arc furnaces and steel foundries.

Collaboration agreement -- green hydrogen AEM electrolyzer technology of Cipher Neutron

The collaboration agreement enables Strategic to consider the use of AEM electrolyzers from CN for the BlackRock project, including its iron, titanium and vanadium production at its metallurgical processing plant to be located adjacent to the Port of Saguenay, Que., Canada. Cipher Neutron's innovative products, such as its proprietary AEM electrolyzers, have unique advantages over other green hydrogen production technologies and, more specifically, these are as following:

1. CN AEMs provide greater electrical efficiency versus their technology peers, leading to lower hydrogen costs.
2. CN AEM electrolyzers are free of platinum and iridium materials, harmful PFAS (polyfluoroalkyl substances) chemicals and polluting metals, leading to lower costs, enhanced availability, and shortened lead times and delivery schedules.
3. CN's AEM membranes have demonstrated longer life, leading to lower sustaining capital and operating costs.
4. CN's green hydrogen is provided at pressures of up to 30 bar, reducing the need for compressors and excess power required by compressors, further reducing the capital and operating costs.

The BlackRock project's leased industrial site at the Port of Saguenay provides an ideal location to deploy Cipher Neutron's green hydrogen AEM electrolyzers. Strategic can utilize the green hydrogen in its hydrogen-ready Tenova HYL Energiron direct reduction plant for the production of high-purity, clean metallic iron products, a key component of green steel. Strategic has an established business footprint in Quebec, and CN's supply of AEM electrolyzers for this multimegawatt-capacity project is well suited for Strategic, Cipher Neutron, the province of Quebec and North America.

Magnitude of the collaboration

Strategic has completed a bankable feasibility of the fully permitted BlackRock project, which, along with its environmental certificates of authorization from Quebec, demonstrates significant achievements of advanced greenhouse gas (GHG) reduction with proven technologies. The work contemplated by CN and Strategic for the first phase of the collaboration will consider the possibility of further advancing the GHG reduction achievements of Strategic toward even lower emissions.

CN will provide the design for the initial implementation of approximately 84 250-kilowatt AEM green hydrogen electrolyzers to produce approximately 10 tonnes of green hydrogen gas per day, to be utilized in the reduction of iron and potentially other purposes for the BlackRock project.

If the initial project phase is implemented, the supply of AEM green hydrogen electrolyzers could represent meaningful revenue to Cipher Neutron and, subject to the supply of available electrical energy and other factors, could eventually scale up to over 200 250-kilowatt electrolyzers, to produce up to 30 tonnes of green hydrogen per day for the BlackRock project.

Sean Cleary, chief executive officer of Strategic Resources, stated: "Cipher Neutron's AEM technology has significant game-changing potential and is an excellent fit with the developing hydrogen strategy of Strategic's BlackRock project. We look forward to incorporating the AEM electrolyzer technology, such as that of Cipher Neutron, to foster a greener and more sustainable future, in line with global reduction of GHG. Strategic Resources has a long history of fostering green and sustainable technology, and we welcome the opportunity to be a part of the development of the growing green hydrogen economy and support the transition to green steel for the Western world."

Gurjant Randhawa, president and CEO of Cipher Neutron, stated: "Cipher Neutron welcomes this very significant alliance with Strategic Resources on its ongoing energy projects. Approximately 7 per cent of the total carbon dioxide produced in the world emanates from the iron and steel industries. We commend Strategic Resources for its leadership in green hydrogen adoption, which can considerably change forever these highly intense GHG emissions sectors. We believe that carbon emissions and other harmful impacts on our environment can be reduced drastically in the province of Quebec, and across the globe, by deploying CN's AEM electrolyzers."

Jean-Pierre Colin, executive vice-president and director of DynaCERT, a partner of Cipher Neutron, stated: "After many years of due diligence and negotiations on the BlackRock project, DynaCERT is very pleased to congratulate its partner, Cipher Neutron, and Strategic Resources, for the conclusion of their collaboration agreement to study the implementation of CN's AEM electrolyzers for Strategic Resources. The province of Quebec and Hydro Quebec is a particularly well-suited jurisdiction to deploy Cipher Neutron's green hydrogen technology, since there is an abundance of green electric power in the region."

About Strategic Resources Inc.

Strategic Resources is a critical mineral exploration and development company focused on high-purity iron and vanadium projects in Canada and Finland. The company is developing its flagship BlackRock project, which is a fully permitted and ready-to-construct mine, concentrator and metallurgical facility located at a seaport in Quebec with full access to the St. Lawrence Seaway. The company's head office is in Montreal, Que.

About Cipher Neutron Inc.

Cipher Neutron is a rapidly growing disruptive technology company focused on AEM electrolyzers for green hydrogen production and reversible fuel cells for power generation and energy storage solutions. Cipher Neutron is a global group of scientists, engineers, technology developers, experts in hydrogen technology, investment bankers and people who have worked in hydrogen for decades. Cipher Neutron's innovative products, such as AEM electrolyzers and reversible fuel cells, have unique advantages over other green hydrogen production, power generation and energy storage solutions currently available in the global market.

About DynaCERT Inc.

DynaCERT manufactures and distributes carbon emission reduction technology, along with its proprietary HydraLytica telematics, a means of monitoring fuel consumption and calculating GHG (greenhouse gas) emissions savings designed for the tracking of possible future carbon credits 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, which has shown to lower carbon emissions and improve 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.

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