Mr. Ben Nyland reports

LOOP ENERGY REPORTS SECOND QUARTER 2023 RESULTS

Loop Energy Inc. has released consolidated financial results for the second quarter ended June 30, 2023.

"We continue to manage the business prudently and are containing spending in the second half of the year as we work closely with our financial adviser Credit Suisse to investigate strategic alternatives, including partnerships, licensing opportunities, joint development and outsource opportunities, sale, and other ways to bring new capital, expertise and resources to the business," said Ben Nyland, president and chief executive officer of Loop Energy. "Global demand for commercial fuel cell solutions in 2023 remains very similar to 2022 as we have seen in our year-to-date revenues. In this current macroeconomic environment, the board of directors will be examining all strategic options available that best serve the interests of all stakeholders, including our shareholders, customers, employees, partners and the company going forward."

Commercial highlights for Q2 2023:

• Loop Energy announced a strategic partnership with Australian power generator manufacturer Mynt First Element. Under the agreement, Loop Energy's hydrogen fuel cell modules will be integrated into Mynt's lineup of Purple H2 generators, which are designed to provide a clean energy alternative solution to diesel generators in base load applications for mining, industrial and construction clients. Mynt is planning three trials in the second half of 2023 in Queensland and New South Wales. With the first units of the generators already in production, Mynt expects customer demand to significantly increase over the next two years in the Australian market. As a part of the agreement, Loop Energy has further appointed Mynt as an exclusive value-added distribution partner for the Australian market.
• Loop Energy announced that Polish electric bus manufacturer Arp E-Vehicles has selected Loop Energy's T605 fuel cell system for its new hydrogen electric bus platform. With this selection, Loop Energy is now a fuel cell provider of choice to fuel cell electric bus manufacturers, addressing what is estimated to be an up-to-12,000-unit-per-year serviceable market opportunity across Korea, Australia and Europe. This announcement marks Loop Energy's third win with European bus manufacturers and the sixth time globally. Under the agreement, Loop Energy's 60-kilowatt fuel cell system will be integrated into Arp E-Vehicles' new 12-metre hydrogen-electric bus designed for the municipal transit service market in Europe. Anticipated to take place in fourth quarter 2023, delivery of the first T605 60-kilowatt fuel cell unit to Arp E-Vehicles will constitute the first deployment of Loop Energy's new product line designed for rooftop mounting, thus specifically catering to the European bus market.

Financial highlights for Q2 2023:

• Year-to-date revenues of $1.2-million unchanged year over year;
• Revenues of $300,000 compared with $1.1-million in Q2 2022;
• Operating expenses, net of cost recoveries, of $5.6-million versus $7.7-million in Q2 2022;
• Capital expenditures of $1.5-million consistent with Q2 2022;
• Net losses of ($8.2-million) compared with ($9.9-million) in Q2 2022;
• Loss per share in Q2 2023 was (24 cents) compared with (29 cents) per share in Q2 2022;
• Cash and cash equivalents of $9.9-million compared with $13.2-million at the end of first quarter 2023;
• Cash in the quarter was used for: (i) inventory based on commitments made in prior periods; (ii) capital expenditures committed to in prior periods; and (iii) some small restructuring expenses incurred in the quarter.

The company announced on March 29, 2023, that it had engaged Credit Suisse to explore strategic alternatives, including potential transaction structures that may bring new capital into the business and extend its 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.

It expects full-year revenue in 2023 to be in line with or slightly above 2022 on a year-over-year basis subject to current market uncertainty and the risk factors that the company has outlined in the quarterly management's discussion and analysis and the annual information form.

Conference call

Loop Energy will hold a conference call on Thursday, Aug. 3, 2023, at 3 p.m. Pacific Time (6 p.m. Eastern Time), to review second 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 SEDAR+.

About Loop Energy Inc.

Loop Energy is a leading designer and manufacturer of 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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