Mr. Don Currie reports

HILLCREST PROVIDES AN UPDATE ON PRIVATE PLACEMENT OFFERING

Hillcrest Energy Technologies Ltd. has provided updates with respect to its previously announced offering of units of the company, as outlined in its news releases of Oct. 14, 2025, and Oct. 28, 2025.

The company expects that it will close the second tranche of the offering in early January, 2026, which will include the strategic investment from Pasqua First Nation in the amount of $3-million.

Additionally, the company originally announced that the offering would be for an aggregate amount of up to $7.2-million, comprising: (i) up to $3.9-million in proceeds to the company to be raised via the issuance of units at a price of nine cents per unit on a private placement basis; and (ii) up to $3.3-million in debt to be settled through the issuance of units on the same terms as in respect of the cash offering. The company now anticipates increasing the amount of the cash offering to be an aggregate of $4.4-million and that the debt offering will be limited to $2.85-million. This updated total includes an anticipated increase of the total offering amount from $7.2-million to $7.25-million due to oversubscriptions in respect of the cash offering.

The closing of the second tranche of the offering is expected to trigger company securityholder approval requirements pursuant to Section (2)(a)(i)(2) of Policy 4 of the Canadian Securities Exchange's policies, due to the potential issuance of over 100 per cent of the total number of securities currently outstanding of the company as result of the aggregated offering.

As previously disclosed in the news release of the company dated Oct. 28, 2025, the company will rely on the financial difficulties exemption under Section (2)(b) of CSE Policy 4 such that it will not be required to seek or obtain company security approval for the offerings. In this regard, the audit committee of the company, which is composed solely of independent directors of the company, had determined that: (i) the offering is in the best interests of the company; (ii) the offering is reasonable in the circumstances; and (iii) it is not feasible to obtain company security holder approval or to complete a rights offering to the company's existing securityholders on the same terms as the offering.

For further details regarding the offering and the closing of the first tranche of the offering, please refer to the news releases of the company dated Oct. 14, 2025, and Oct. 28, 2025, respectively.

It is intended that the proceeds from the offering will be used for further development of Hillcrest's ZVS technology, marketing of its products to potential customers, investor relations activities, retirement of existing accounts payable and general working capital.

All securities issued in connection with the offering are subject to a statutory four-month-and-one-day hold period, in accordance with the policies of the Canadian Securities Exchange and applicable Canadian securities laws.

About Hillcrest Energy Technologies Ltd.

Hillcrest Energy Technologies is an energy technology company focused on providing advanced power conversion technologies and digital control systems for next-generation powertrains and grid-connected renewable energy systems. From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future. Hillcrest is publicly traded on the CSE under the symbol HEAT, on the OTCQB Venture Market as HLRTF and on the Frankfurt Stock Exchange as 7HI.

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