Mr. Justin Holland reports

EGUANA ANNOUNCES ITOCHU'S CONVERSION OF APPROXIMATELY $1.164 MILLION OF INTEREST INTO COMMON SHARES

Eguana Technologies Inc. and Itochu Corp., a strategic investor in the company, have agreed to convert $1,164,493.14 of interest owing under the company's 7 per cent unsecured convertible debenture into 13,580,094 common shares of Eguana in full satisfaction of the interest payment due on Sept. 1, 2023.

"Aligned with the Eguana vision, Itochu continues to be a valuable strategic investor and partner. The election of interest in the form of shares demonstrates their confidence in our partnership and the growth opportunities as the power grid modernizes," commented Justin Holland, Eguana's chief executive officer. "The virtual power plant (VPP) market is evolving quickly, where we maintain a competitive technology advantage for utility companies. To execute these VPP opportunities, along with near-term opportunities in our three key markets, Eguana truly values the continued support from Itochu."

In connection with the interest conversion, Eguana will issue 13,580,094 common shares at a deemed price of 8.575 cents per share on Sept. 28, 2023. All of the common shares will be subject to a four-month-and-one-day hold period in accordance with applicable Canadian securities laws. The conversion remains subject to final approval by the TSX Venture Exchange. Additional details regarding the convertible debenture issued on Aug. 31, 2022, can be found in the company's news releases dated Aug. 26 and Aug. 31, 2022, all of which are available on the company's profile on SEDAR+.

As a result of Itochu's status as an insider of the company, the foregoing interest conversion constitutes a related-party transaction under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101). This transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of the securities issued, nor the consideration provided therefore, exceed 25 per cent of the company's market capitalization. Immediately prior to the payment, Itochu owned, or exercised control or direction over, 54,923,281 common shares, representing 12.95 per cent of the total issued and outstanding common shares of Eguana. Immediately following the payment, Itochu will hold 68,503,375 common shares, representing 15.65 per cent of the total issued and outstanding common shares of Eguana.

Itochu acquired the common shares for investment purposes and to support the growth of Eguana's business. Itochu may, from time to time, and at any time, acquire additional shares and/or other equity, debt, or other securities or instruments of the company in the open market or otherwise, and reserves the right to dispose of any or all of its securities in the open market or otherwise, at any time, and from time to time, and to engage in similar transactions with respect to the securities, the whole depending on market conditions, the business and prospects of the company, and other relevant factors.

Itochu will file an early warning report with the securities regulators with respect to the foregoing matters, pursuant to National Instrument 62-103 -- The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, a copy of which will be available under Eguana's profile on SEDAR+.

About Eguana Technologies Inc.

Based in Calgary, Alta., Canada, Eguana designs and manufactures high-performance residential and commercial energy storage systems. Eguana has two decades of experience delivering grid edge power electronics for fuel-cell, photovoltaic and battery applications, and delivers proven, durable, high-quality solutions from its high-capacity manufacturing facilities in Europe, Australia and North America.

With thousands of its proprietary energy storage inverters deployed in the European and North American markets, Eguana is one of the leading suppliers of power controls for solar self-consumption, grid services and demand charge applications at the grid edge.

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