Mr. Ben Nyland reports

LOOP ENERGY REPORTS FIRST QUARTER 2023 RESULTS

Loop Energy Inc. today released its consolidated financial results for the first quarter ending March 31, 2023.

"The fuel cell market continues to develop as end users look to hydrogen solutions to reduce emissions. Loop's proprietary technology is continuing to advance, and customers are seeing the value of Loop's products for their applications," said Ben Nyland, president and chief executive officer. "We are continuing to manage the business conservatively and with the reduction in work force and cost-cutting initiatives implemented in the quarter will see operating expenses reduce going forward. We continue to focus on new product launches for buses and vertical integration. On a strategic basis, our management team and the board of directors continue to work closely with Credit Suisse, our financial adviser, to investigate potential partnerships, licensing opportunities, joint developments, outsourcing opportunities, sale, and other ways of bringing new capital and resources to support Loop Energy's expansion plans."

Commercial highlights Q1 2023:

• The company delivered three fuel cell systems to H2 Portable, a Canadian developer of hydrogen-electric mobile power solutions. The fuel cells will be integrated into hydrogen-electric gensets designed to provide clean, reliable, on-demand power to movie sets, construction sites and locations with limited grid power access.
• Loop Energy was selected by Wiggins Lift Co., a leading American material handling vehicle manufacturer, to provide the fuel cell system for its new hydrogen-powered eBull forklift product this year.
• In mid-April, the company's chief executive officer, Ben Nyland, and chief scientist Dr. Sean MacKinnon were presenting speakers on panels at Hannover Messe + H2 Fuel Cells Europe exhibition in Germany, where the company hosted a trade booth and held numerous OEM (original equipment manufacturer) customer meetings.

Financial highlights Q1 2023

• Revenues of $900,000 compared with $200,000 for the same period last year;
• Operating expenses, net of cost recoveries of $4.3-million versus $6.1-million for the same period last year;
• Capital expenditures in Q1 2023 were $2.4-million compared with $3.3-million in Q1 2022;
• Net losses of $(7.3-million) compared with $(8.0-million) for the same period last year;
• Loss per share in Q1 2023 was (21 cents) compared with (24 cents) per share in Q1 2022;
• Cash and cash equivalents of $13.2-million compared with $24.5-million in Q4 2022;
• Cash in the quarter was used for: i) inventory buildup as a result of commitments made in prior periods; ii) commitments for deposit on inventory made in prior periods; iii) capital expenditures committed to in prior periods; and iv) restructuring expenses incurred in the quarter. These uses of cash were partially offset by cost recoveries from SDTC and JGC;
• The company reduced headcount and implemented additional cost-saving measures during Q1 2023. With the full effect of the employee and operating expense reductions taking effect at the beginning of the second quarter, the company anticipates that its quarterly cash burn will be reduced from here forward;
• The company engaged Credit Suisse to explore strategic alternatives, including potential transaction structures that may bring new capital into the business and extend the company's runway into 2024 and beyond; currently, the company continues to believe it has adequate cash resources and financing commitments to continue operations until the end of the calendar year.

Conference call

Loop Energy will hold a conference call on Thursday, May 11, 2023, at 3 p.m. Pacific Time (6 p.m. Eastern Time) to review first quarter results. Investors and members of the public can join the live call by dialling 1-888-330-2057 (toll-free) with the conference ID: 5946836. Please dial-in by phone five to 10 minutes prior to the start time and ask to join the Loop Energy call. Following the call, a recording will be archived in the financials area of the investors section of Loop Energy's website and on SEDAR.

About Loop Energy Inc.

Loop Energy is a leading designer and manufacturer of hydrogen fuel cell systems targeted for the electrification of commercial vehicles, including light commercial vehicles, transit buses, and medium- and heavy-duty trucks. Loop Energy's products feature the company's proprietary eFlow technology in the fuel cell stack's bipolar plates. eFlow is designed to enable commercial customers to achieve performance maximization and cost minimization. Loop Energy works with original equipment manufacturers and major vehicle subsystem suppliers to enable the production of hydrogen fuel cell electric vehicles.

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