Mr. Justin Holland reports

EGUANA PROVIDES BUSINESS UPDATE AND ANNOUNCES MANAGEMENT CHANGES

Eguana Technologies Inc. has provided various financial and corporate updates.

As outlined in the recent news release dated Jan. 22, 2025, Eguana is managing near-term liquidity and continues to pursue sales and cash collections. However, due to payment delays through January, the liquidity position of the company remains tight. As previously noted, Eguana is working closely with its senior lender, which continues to be supportive, allowing the company to defer the Jan. 15 and Feb. 15, 2025, amortization payments with the lender. The company is also pursuing options to put in place an additional forbearance agreement, for a period of time, to reduce the regular monthly amortization payment amount, more aligned with the company's current liquidity position.

On Feb. 21, 2025, the company reached an agreement to defer the coming cash interest payment on its unsecured convertible debenture, originally due on March 1, 2025, to Aug. 31, 2025. Interest payments on the convertible debenture due on March 1, 2024, and Sept. 1, 2024, that were previously deferred as outlined in prior news releases, have also been deferred to Aug. 31, 2025.

In February, 2025, the company closed a short-term bridge loan financing in the principal amount of approximately $90,000, with certain lenders, including the company's chief executive officer and one member of the board of directors. A portion of the bridge financing was received in U.S. dollars and a portion in Canadian dollars. The bridge financing is unsecured and will be used for general working capital and is intended to be a short-term gap measure to a potential future equity offering. Interest shall accrue on the principal amount at a rate of 4 per cent per month. The principal amount of the bridge financing, together with interest accrued thereon, will become due and payable on May 1, 2025, and is intended to be converted into equity, based on similar terms of a future equity offering. If the bridge financing is repaid in cash, the repayments require the approval of the company's senior lender. Any conversion to equity would be subject to the approval of the TSX Venture Exchange. The lenders will not receive any other fees or commissions.

The portions of the bridge financing obtained from the company's chief executive officer and board member constitute related party transactions under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. 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 transaction nor the consideration paid to the lenders of the bridge financing, who are related parties of the company, would exceed 25 per cent of the company's market capitalization.

On Feb. 21, 2025, the board of directors granted incentive stock options to acquire up to an aggregate of 3.45 million common shares at a strike price of five cents. Of the options granted, 1.65 million have been granted to directors and executives of the company.

The company continues to explore potential alternatives to improve liquidity and enhance shareholder value as Eguana manages short-term liquidity. At present, there can be no assurance as to what, if any, further alternatives might be pursued by the company or if the bridge financing will be adequate to meet all short-term obligations. The company will disclose further details with respect to its review or actions taken if the board of directors has approved a transaction or the company otherwise determines that further disclosure is warranted. The company anticipates launching a financing in the coming weeks and will outline further details in a subsequent news release.

The company is happy to announce the promotion of Neil D'Souza to vice-president of engineering. Mr. D'Souza has been managing day-to-day development activities and processes for the past several years and will now be responsible for all development planning. Additionally, the company is happy to announce the promotion of Adebayo Adegbola and Mohamed Safa to directors of engineering and customer and technical service, respectively. Mr. Adegbola will focus on advancing Eguana's ESS (energy storage system) product line, including battery integration and certification updates. Mr. Safa will plan and build out Eguana's customer service team's capabilities to match utility and other partner requirements.

Lastly, Eguana's chief financial officer, Hansine Ullberg, has resigned, effective Feb. 19, 2025, to pursue a new opportunity. Ms. Ullberg will assist with a transition while a replacement is sought. "On behalf of the board, I would like to thank Hansine for her strong contributions," commented Eguana chief executive officer Justin Holland. "Hansine remains active with the team and continues to be a valuable resource to the company. I would also like to congratulate Neil, Bayo and Mohamed on their respective promotions. Each has driven results through their pillars and continues to deliver leadership by example throughout the Eguana team."

About Eguana Technologies Inc.

Eguana's vision is to build the grid of the future by delivering flexible, modular and cost-effective alternatives to traditional grid upgrades. The company's technology provides value to all key stakeholders -- from the consumer to the electricity retailer, the distribution utility and the system operator.

Since 1998, Eguana Technologies has connected utilities with consumers through its high performance commercial and residential energy storage solutions. The Eguana product suite has been designed from the ground up with both the end-user and the utility in mind to transition the power grid seamlessly.

Manufactured in local facilities in North America to ensure compliance and quality, Eguana's standardized platform allows the flexibility to ensure each product solution is optimized for use in major grid modernization markets.

We seek Safe Harbor.