Mr. Don Currie reports

HILLCREST ENERGY TECHNOLOGIES SIGNS LETTER OF INTENT WITH EQUIPMAKE TO INTEGRATE ZVS TECHNOLOGY INTO ELECTRIC POWERTRAIN PLATFORM

Hillcrest Energy Technologies Ltd. has entered into a letter of intent (LOI) with Equipmake PLC, a United Kingdom-based developer and manufacturer of high performance electric motors and inverters for e-mobility applications. The LOI establishes a framework for a joint development program under which the parties would work together to integrate Hillcrest's proprietary zero voltage switching (ZVS) inverter technology into a defined Equipmake powertrain product line.

An established platform, proven channels

Equipmake is an established developer and manufacturer of high performance powertrain systems with a strong commercial record, products deployed across automotive, commercial vehicle, bus, aerospace and marine applications, and existing OEM (original equipment manufacturer) relationships in the product area targeted by this collaboration. A successful ZVS integration, if validated through the joint development program, would be positioned to reach an established customer base through channels that Equipmake has already built and may be able to expand, reducing the time and friction of independent market entry.

The program would bring together Equipmake's deep domain expertise and platform knowledge with Hillcrest's ZVS technology and full-stack co-design capability across hardware, controls firmware and thermal management -- supported by development partner Systematec GmbH, which contributes over 25 years of combined HEV/EV powertrain development experience.

Hillcrest ZVS technology: independently validated performance

Hillcrest's ZVS technology has been independently validated through testing at the facilities of global automotive OEMs and Tier 1 suppliers. That testing confirmed 99.7-per-cent peak inverter efficiency and system-level efficiency gains of up to 6 per cent at various low-power operating points. Separately, EMC chamber testing conducted at a certified external laboratory selected by a European automotive OEM confirmed that Hillcrest's ZVS traction inverter delivers substantially lower electromagnetic interference (EMI) than conventional inverters, with results suggesting meaningful system-level cost savings.

Management commentary

"Our ZVS traction technology has been independently validated at global automotive OEM and Tier 1 supplier facilities. The focus now is on accelerating the path to commercial deployment, and Equipmake is exactly the kind of partner that helps us do that. They bring a validated powertrain platform, established OEM relationships and a commercial track record across multiple vehicle classes. If we can successfully validate ZVS integration within the defined product line through this program, we would be positioned to deploy through channels that Equipmake has already built -- avoiding the time and friction of establishing that market access independently."

- Don Currie, chief executive officer, Hillcrest Energy Technologies

"At Equipmake, we are always looking for technologies that have the potential to take the performance of our products to the next level for our customers. Hillcrest's ZVS technology has characteristics we believe are worth exploring through a structured joint development program. We look forward to working with the Hillcrest team to assess what this integration could deliver."

- Ian Foley, founder and CEO, Equipmake

Terms of the letter of intent

The LOI, signed July 7, 2026, contemplates a jointly funded, milestone-gated development program in which Hillcrest would integrate its ZVS technology into a defined Equipmake powertrain product line, with both parties contributing engineering resources and funding on terms to be agreed. Both Hillcrest and Equipmake would also seek supplementary funding from strategic third party sources. The parties anticipate a program duration of up to 24 months from execution of a definitive joint development agreement.

Under the framework contemplated by the LOI:

• Hillcrest would retain ownership of its ZVS technology, and all related improvements developed during the program; each party retains its respective pre-existing intellectual property.
• Upon execution of a definitive joint development agreement, Hillcrest would grant Equipmake exclusive rights to use ZVS technology within the defined product scope for the duration of the program, with Hillcrest retaining full rights in all other applications.
• In recognition of Equipmake's contribution to the program, the parties have agreed in principle that Equipmake would receive preferred licensing terms upon commercialization, the specifics of which remain subject to negotiation.
• Upon successful completion of the initial program, the parties may, at their discretion, consider whether an expanded collaboration is warranted.

The LOI is non-binding and does not give rise to any legal obligation to conclude a definitive joint development agreement. All commercial terms remain subject to negotiation, and any binding contractual relationship would arise exclusively through execution of a definitive joint development agreement. The parties have agreed to use commercially reasonable efforts to execute a definitive agreement within 90 days of the date of the LOI. There is no assurance that the definitive agreement will be executed within the contemplated time frame, or at all, or that the joint development program, if initiated, will be completed successfully.

RSU grant

The company also announces the grant of 117,647 restricted share units (RSUs) to a consultant of the company, pursuant to the company's restricted share unit plan. The RSUs vest immediately and expire three years from the date of grant.

About Hillcrest Energy Technologies Ltd.

Hillcrest Energy Technologies is a Canadian clean technology company developing advanced power conversion technologies and digital control systems for next-generation energy applications, including AI data centres, energy storage, microgrids and electric-vehicle powertrains. The company's proprietary zero voltage switching (ZVS) technology has been independently validated at the facilities of global automotive OEMs and Tier 1 suppliers.

We seek Safe Harbor.