Mr. Francois Byrne reports

HYBRID POWER SOLUTIONS ANNOUNCES STRATEGIC MOU WITH CARBOMAT FOR LOW-COST SUSTAINABLE ANODES IN LITHIUM-ION BATTERIES

Hybrid Power Solutions Inc. has signed a memorandum of understanding (MOU) with CarboMat Inc., a pioneer in carbon-based advanced materials. The non-binding MOU establishes a joint development partnership to engineer low-cost, sustainable anode materials for next-generation lithium-ion batteries specifically optimized for integration into Hybrid's Terra microgrid systems.

Under the collaboration, CarboMat will leverage its proprietary battery anode material (BAM) technology to deliver high performance, low-cost and eco-friendly anodes that reduce reliance on mined graphite and lower production costs by up to 40 per cent compared with conventional solutions. Hybrid will integrate these anodes into its scalable battery modules, enabling longer cycle life, faster charging, and enhanced energy density for off-grid and hybrid power applications in construction, mining, rail and marine sectors.

This MOU with CarboMat is a game-changer for sustainable energy storage," said Francois Byrne, chief executive officer and founder of Hybrid. "By combining CarboMat's breakthrough carbon technology with our field-proven Terra platform, we're creating a vertically integrated ecosystem that delivers greener, more affordable power solutions -- driving massive interest from industry partners and investors alike."

CarboMat CEO and co-founder Shabab Saad stated: "This MOU between CarboMat and Hybrid marks a pivotal step toward establishing a robust and resilient graphite supply chain here in Canada -- one that is absolutely essential to support the rapid growth of Li-ion batteries powering Hybrid's Terra battery packs. At CarboMat, we are demonstrating that low-cost, sustainable graphite derived from low-value industrial waste byproducts can compete directly with today's commercial graphite supply, more than 80 per cent of which currently comes from China. Through this partnership, we envision not only meaningful gains in energy density and cycle life for Hybrid's Terra systems, but also a substantial reduction in Scope 3 emissions as Hybrid's power solutions begin displacing diesel in real-world field operations."

This strategic collaboration sets the foundation for joint go-to-market pilots from Q2 through Q4 2026, with the first commercial Terra units featuring CarboMat's graphite in Li-ion cells targeted for release in Q3 to Q4 2027. Together, the company is building the future of clean, secure and high performance energy systems in Canada.

About Hybrid Power Solutions Inc.

Hybrid Power Solutions is a Canadian clean energy innovator listed on the Canadian Securities Exchange under the symbol HPSS. The company specializes in developing portable power systems that eliminate the need for fossil fuels in off-grid and remote applications. With a focus on environmental responsibility and technological innovation, Hybrid Power Solutions is committed to leading the clean energy transition.

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