Mr. Francois Byrne reports

HYBRID POWER SOLUTIONS CLOSES FIRST TRANCHE OF LIFE OFFERING FINANCING

Hybrid Power Solutions Inc. has closed the first tranche of its listed issuer financing exemption offering financing for gross proceeds of $1,014,899.94 from the sale of 16,914,999 units of the company at a price of six cents per unit under the listed issuer financing exemption (as defined herein).

Each unit will consist of one common share in the capital of the company and one whole common share purchase warrant. Each whole warrant will be exercisable to acquire one share at an exercise price of 10 cents per share for a period of 24 months from the date of issuance, subject to the following acceleration right. If, at any time after the date of issuance of the warrant, the closing price of the company's common shares on the Canadian Securities Exchange (or such other stock exchange on which the common shares may be traded from time to time) is at or above 20 cents per share for a period of 20 consecutive trading days, in which event the company may, within five days of the triggering event, accelerate the expiry date of the warrants by giving notice thereof to the holders of the warrants, by way of news release, in such case, the warrants will expire on the first day that is 30 calendar days after the date on which such notice is given by the company announcing the triggering event.

Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 (Prospectus Exemptions), the units will be offered for sale to purchasers resident in the provinces and territories of Canda except for Quebec, in the United States and offshore jurisdictions pursuant to the listed issuer financing exemption under Part 5A of NI 45-106, as amended by Coordinated Blanket Order 45-935 (Exemptions from Certain Conditions of the Listed Issuer Financing Exemption). The shares and the warrants underlying the units, and the shares underlying the warrants, if exercised, are expected to be immediately freely tradable in accordance with applicable Canadian securities legislation if sold to purchasers resident in Canada. All securities issued pursuant to the listed issuer financing exemption will not be subject to a hold period in Canada in accordance with applicable Canadian securities law.

Hybrid will use the net proceeds of the offering for company operations, product and company research and development, sales growth initiatives, marketing and general corporate purposes, and administrative expenses.

In connection with the LIFE offering, the company paid eligible finders a cash fee equal to 6 per cent of the gross proceeds raised from subscribers introduced by such finders, and issued to such finders non-transferable finders' warrants entitling the holders thereof to acquire, in aggregate, that number of shares equal to 6 per cent of the number of shares sold to such subscribers, with each finder's warrant exercisable for one share at a price of 10 cents per share for a period of 24 months from the closing of the LIFE offering.

Completion of the offering is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the Canadian Securities Exchange.

About Hybrid Power Solutions Inc.

Hybrid Power 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.

We seek Safe Harbor.