Mr. Francois Byrne reports

HYBRID POWER SOLUTIONS ANNOUNCES $1.5 MILLION FINANCING

Hybrid Power Solutions Inc. has arranged a non-brokered prospectus financing of units consisting of up to five million units at 30 cents per unit for gross proceeds of up to $1.5-million. Each unit will be composed of one common share of the company and one common share purchase warrant of the company. Each unit warrant will entitle the holder to acquire one common share at an exercise price of 32 cents per unit warrant share for a period of 24 months from closing of the offering subject to acceleration.

The acceleration clause of the warrants will provide that if the volume-weighted average price of the common shares on the Canadian Securities Exchange (or such other stock exchange where the majority of the trading volume occurs) exceeds 40 cents for a period of five consecutive trading days between the closing date of the offering and the expiry of the warrants, then the company may, at any time, in its discretion, accelerate the expiry date of the warrants by providing written notice to the warrantholders by news release. If the company provides such acceleration notice, then any unexercised warrants will expire on the 30th day after the date on which the news release is disseminated.

The offering will be subscribed by accredited investors under applicable securities laws, and the company will be entering into formal subscription agreements with each investor to purchase the units.

The company may pay finders' fees to eligible finders in accordance with applicable securities laws and the policies of the CSE. The company intends to use the proceeds from the offering for general working capital and corporate purposes.

The units will be qualified under a shelf prospectus supplement to be filed with the securities commissions in British Columbia, Alberta, Saskatchewan, Ontario, Manitoba, and Newfoundland and Labrador prior to closing and in accordance with National Instrument 44-101 (Short Form Prospectus Distributions) and National Instrument 44-102 (Shelf Distributions). The offering will be made only by means of the prospectus supplement and the accompanying base shelf prospectus dated March 14, 2024. Complete details of the offering will be set out in the prospectus supplement, and when available, the prospectus supplement together with the shelf prospectus can be obtained under the company's SEDAR+ profile.

The offering is expected to close on or about April 30, 2024, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals and listings, including fulfilling applicable requirements of the CSE.

About Hybrid Power Solutions Inc.

Hybrid is a Canadian clean energy company listed on the Canadian Securities Exchange under the symbol HPSS. Hybrid specializes in the development of sustainable energy solutions, offering products that redefine how industries approach access to power and energy storage. With a focus on innovation and environmental responsibility, Hybrid continues to lead the way in providing scalable, cost-effective power solutions.

We seek Safe Harbor.