Mr. Justin Holland reports

EGUANA REACHES SETTLEMENT TO COLLABORATION AGREEMENT WITH DURACELL POWER CENTER

Eguana Technologies Inc. has reached a settlement regarding the collaboration agreement dated Jan. 1, 2024, and an associated security agreement dated Jan. 31, 2024, with Omega Electronics Manufacturing Services and Omega Green Power (doing business as Duracell Power Center).

Pursuant to the terms of the settlement, in consideration for Eguana's release of Duracell Power Center's obligations under the agreements, Duracell Power Center has paid Eguana a termination fee of $250,000 (U.S.) in cash. Duracell Power Center has provided a reciprocal release of Eguana's obligations under the agreements.

Duracell Power Center will transfer ownership of $1.1-million (U.S.) in additional finished goods, consisting of both five-kilowatt and 10 KW Evolve systems under the agreements to Eguana. Eguana has agreed to provide replacement parts to Duracell Power Center as needed during the remaining warranty period for any products Duracell Power Center has sold. Duracell Power Center will remain responsible for field support costs of any warranty replacement.

Notwithstanding the settlement, Duracell Power Center has agreed to increase the amount of manufacturing credit available to Eguana under the agreements by $250,000 (U.S.) to $1.45-million (U.S.). The credit must be fully utilized by Eguana within the next 36 months.

The settlement agreement increases our finished goods inventories, which have been key to executing the feeder enhancement project in British Columbia, as well as providing additional systems to continue accelerating our utility strategy," commented Eguana chief executive officer Justin Holland. "The cash component has provided some near-term liquidity relief and the manufacturing credit and raw materials will reduce working capital requirements balance of year and through 2026."

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 across the globe 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.