Mr. Don Currie report

HILLCREST ENERGY TECHNOLOGIES ANNOUNCES LAUNCH OF CLEANPATH DISTRIBUTION INC

Hillcrest Energy Technologies Ltd. has operationalized CleanPath Distribution Inc., an indigenous-led Canadian corporation operationalized pursuant to the memorandum of understanding between Hillcrest, Pasqua First Nation #79 and Apeiron Resources Ltd. announced on Oct. 14, 2025.

CleanPath Distribution is an indigenous-led Canadian corporation operationalized in March, 2026, to pursue financing opportunities -- including government funding -- and to support the commercialization of Hillcrest's zero-voltage-switching power conversion technology in Canada. CleanPath's indigenous-led structure and PFN majority ownership are intended to support its ability to access funding programs and build the government and industry relationships required to pursue the Canadian market.

CleanPath is owned as follows: Pasqua First Nation: 51 per cent; Apeiron Resources: 24.5 per cent; and Hillcrest Energy Technologies Operating Ltd.: 24.5 per cent. Directors were appointed and shares were issued on March 5, 2026. The entity is governed by a board of directors with representation from all three partners. Hillcrest retains full ownership of all ZVS intellectual property and responsibility for technology development, manufacturing execution and product certification.

Hillcrest's zero-voltage-switching power conversion technology reduces the switching losses inherent in conventional power converters, resulting in higher efficiency, lower electromagnetic interference and smaller, lighter passive components. Efficiency and EMI performance have been measured at European automotive original equipment manufacturer and Tier 1 supplier test benches. Hillcrest's ZVS technology is the subject of two prototypes currently in development: the PCS1000 grid power conversion system, a 200-kilowatt grid-connected power conversion system targeting customer demonstration in second quarter 2026; and the MVP3 ZVS traction inverter, a 350-kilovolt-ampere silicon carbide traction inverter prototype validated with multiple automotive OEMs and Tier 1 suppliers in Europe in an automotive context.

Don Currie, chief executive officer and director of Hillcrest Energy Technologies, commented, "CleanPath brings together Pasqua First Nation #79's indigenous leadership, industry relationships and market knowledge, Apeiron's expertise in indigenous economic development, and Hillcrest's ZVS technology."

Mr. Currie continued: "Canada's recently announced defence industrial strategy and the NRC IRAP Defence Industry Assist initiative establish a policy framework for Canadian SME participation in defence R&D. CleanPath's indigenous-led structure and Hillcrest's Canadian-owned ZVS technology are relevant to that framework, and the Canadian defence sector is a target market for CleanPath's mandate. We are pleased to be taking this step with our partners at Pasqua First Nation #79 and Apeiron."

About Hillcrest Energy Technologies Ltd.

Hillcrest Energy Technologies is a Canadian clean 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 Canadian Securities Exchange under the symbol HEAT, on the OTCQB Venture Market as HLRTF and on the Frankfurt exchange as 7HI.

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