Ms. Natalie Arseneau reports

LOOP ENERGY PROVIDES CORPORATE UPDATE

Loop Energy Inc. has provided an update on the previously announced review and evaluation of strategic alternatives.

As previously disclosed on March 29, 2023, Loop conducted its review of strategic alternatives, including investigating strategic partnerships, licensing opportunities, joint development and outsourcing opportunities, and other ways to bring new capital, expertise and resources to the business, and to identify growth opportunities and ways to support Loop's expansion plan.

Following the public announcement of the strategic review and at the direction of the board of directors of the company, Loop conducted a comprehensive outreach to over 130 potential counterparties and while discussions are continuing with certain parties, no offer or proposal is currently under consideration.

Due to challenging capital market conditions, including significant stock price declines in the hydrogen fuel cell sector since the beginning of the year, and after careful consideration of its alternatives, the board has determined that it is in the best interests of the company to immediately execute an additional operating cost reduction program. This program includes, among other things, an approximate 65-per-cent global headcount reduction by the end of the year and the closing of production in China. Going forward, the company will be focusing its staffing and business development efforts on fuel cell stack design, development, production and testing based on the company's proprietary eFlow technology. Business development efforts will include finding potential partners to support the existing install base and exploring options for its fuel cell modules and systems business.

The company estimates that the implementation of the operating cost reduction program will extend the company's cash runway to the end of the first quarter, 2024. This will allow the continuation of the strategic review process and outreach to potential counterparties and engagement with parties that previously expressed interest.

In addition, as part of the operating cost reduction program, the company will be reducing product shipments through to the end of the year and accordingly may not meet prior-year revenues.

About Loop Energy Inc.

Loop is a leading designer and manufacturer of hydrogen fuel cell systems targeted for the electrification of commercial vehicles such as buses and trucks, as well as stationary power applications. Loop's products feature the company's proprietary eFlow technology in the fuel cell stack's bipolar plates. eFlow technology enables customers to achieve superior performance and higher fuel efficiency when using Loop's fuel cells, which lower operating cost for end-users while enabling original equipment manufacturers to achieve lower capital cost and faster time to market. Loop works closely with OEMs and major vehicle subsystem suppliers to enable the production of hydrogen electric solutions with its global network and integration support.

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