Mr. Francois Byrne reports

HYBRID POWER SOLUTIONS AND VORTEX TECHNOLOGY GROUP SIGN STRATEGIC SYSTEMS INTEGRATION, DISTRIBUTION AND CO-BRANDING AGREEMENT AND LETTER OF INTENT FOR PROPOSED CANADIAN BESS COLLABORATION

Hybrid Power Solutions Inc. and Vortex Telecom Group Inc., operating as Vortex Technology Group, have entered into a strategic systems integration, distribution and co-branding agreement, and have separately signed a letter of intent (LOI) dated Oct. 19, 2026, setting out a non-binding framework for a proposed Canadian battery energy storage system (BESS) manufacturing and commercialization relationship. The proposed collaboration under the LOI would combine Hybrid Power Solutions' Canadian manufacturing and industrial power system capabilities with Vortex's BESS platforms, cell technology access and project development activities, intended to support contract manufacturing for Vortex and potential larger system sales through Hybrid Power Solutions' channels.

The parties see their overall relationship as a deeper and broader version of Hybrid Power Solutions' standard dealer agreement. The integration agreement is a definitive agreement that is separate from the LOI and not part of it. Under the integration agreement, Vortex is authorized, on a non-exclusive basis, to integrate Hybrid Power Solutions products into its own energy solutions and to market, co-brand, resell and support them. No orders, sales volumes or revenue are assured under the integration agreement.

Under the LOI, Vortex would support the proposed manufacturing relationship through a proposed procurement program. The procurement program is subject to: (a) completion and submission to Vortex of Hybrid Power Solutions' manufacturing cost estimates; (b) completion of Vortex's market assessment, including competitive market analysis; and (c) successful completion of a Vortex pilot project, with its scope to be defined, to validate acceptance of an Hybrid Power Solutions-manufactured product. Any procurement commitment would be established only in an executed definitive manufacturing agreement with agreed order releases, delivery milestones and payment security.

The LOI does not create a minimum purchase obligation, purchase order, take-or-pay obligation, backlog, revenue guarantee or capacity reservation, and the proposed procurement program is not an executed order, firm backlog or guaranteed revenue.

"This gives us a path to build bigger systems, serve bigger projects and strengthen the products we already sell," said Francois Byrne, chief executive officer of Hybrid Power Solutions. "We see an opportunity to manufacture for Vortex while bringing larger systems to our own customers in construction, mining and modular AI infrastructure. Our focus is on turning that opportunity into qualified products and commercial orders."

Proposed work streams under the LOI:

• Canadian contract manufacturing: Hybrid Power Solutions would manufacture, assemble, integrate and test agreed Vortex BESS configurations in Canada for Vortex's customer projects, with responsibilities for North American system and component certification to be defined in the definitive agreement. The parties would seek a definitive manufacturing agreement with agreed order releases, delivery milestones and payment security.
• Hybrid Power Solutions commercialization rights: Hybrid Power Solutions and Vortex intend to negotiate rights for Hybrid Power Solutions to manufacture, integrate, market, sell and support selected larger Vortex-based BESS configurations in Canada and other mutually agreed markets, including a commercial supply and licensing framework that would allow Hybrid Power Solutions to quote and deliver systems through its own customer and distribution channels. The proposed relationship would be non-exclusive, and any such rights would be subject to agreed protections for Vortex's existing customers and markets. Target applications include construction sites with multiple cranes and hoists, larger mining operations, and modular and edge AI (artificial intelligence) computing infrastructure, the power and energy requirements of which extend beyond those addressed by a single Terra system.
• Cell technology access: The parties would establish a framework for shared technical resources and Hybrid Power Solutions' evaluation and procurement of selected Vortex-supplied cells and modules. The proposed work would include graphene-enhanced and semi-solid LFP technologies, and, where appropriate and technically verified, supercapacitor-based solutions, with the objective of improving Hybrid Power Solutions product competitiveness.

These work streams would establish a potential Canadian manufacturing pathway for Vortex's BESS projects while giving Hybrid Power Solutions a contract manufacturing opportunity and an expanded customer-facing offering. Application suitability, sales and integration rights, technology performance, and product approvals remain subject to qualification and definitive agreements; neither party is announcing an AI, construction or mining customer contract under the LOI.

"Our objective is to establish a Canadian manufacturing relationship that supports Vortex's cell technologies and product requirements, while creating vertical market opportunities for both companies in the near term through our integration agreement, as well as longer term through the LOI contract manufacturing agreement framework in progress," said Brian Walters, chief executive officer of Vortex Technology Group. "The next steps are to complete the cost and market assessments, validate the pilot product, and agree on the commercial framework anticipated in the LOI."

Path to commercialization

The LOI contemplates preparing initial manufacturing quotations, a proposed procurement profile and a qualification plan within 60 days after execution, and seeking to finalize definitive agreements within 120 days. These are planning objectives, not guaranteed completion dates. The firm order commitment window remains to be determined and would be negotiated in parallel with further due diligence and completion of the definitive agreements. Unless extended by both parties in writing, the non-binding commercial framework would expire 120 days after execution of the LOI.

The LOI includes binding provisions relating to the parties' existing mutual confidentiality and non-disclosure agreement, public announcements, costs, authority and termination, governing law, and legal effect. Its commercial framework, including manufacturing, procurement, commercialization and technology access, is expressly non-binding, and neither party is obliged to conclude a transaction or continue negotiations. Either party may terminate the LOI by written notice. No assurance can be given that definitive agreements, orders or deployments will result.

About Vortex Technology Group Inc.

Vortex Technology Group provides BESS solutions for microgrids, telecommunications, renewable energy integration and commercial and industrial infrastructure. Its energy storage activities include system integration and monitoring technologies.

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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