Mr. Ben Nyland reports

LOOP ENERGY REPORTS THIRD QUARTER 2023 RESULTS

Loop Energy Inc. has released its consolidated financial results for the third quarter ending Sept. 30, 2023.

Commercial highlights Q3 2023:

• On Aug. 1, 2023, Loop Energy announced that its value-added distributor in South Korea, NGVI Inc., had secured a supply contract for a hydrogen electric bus project with a second municipality in the country. The two-year government project, led by KAR Co. Ltd., will see the hydrogen electric bus put into operation in Ulju-gun, South Korea, in 2024.
• On Aug. 1, 2023, Loop Energy announced that it had been selected to supply fuel cell systems for a new fire truck platform by an established specialty vehicle OEM (original equipment manufacturer) with significant global presence. The new hydrogen electric fire truck will be fitted with two of Loop Energy's T505 fuel cell systems. In the first stage of the rollout plan, a pilot project will see a vehicle put into operation at an airport in Spain. In subsequent stages, the OEM is looking to scale production for use in other locations with production expected to begin in Q4 of 2023.
• On Sept. 12, 2023, Loop Energy announced that the company and Tycrop Manufacturing Ltd. had been selected to provide a hydrogen electric solution for the global supply chain leader DP World pilot project to decarbonize its rubber-tired gantry cranes (RTGs) fleet at the port of Vancouver. The design and manufacturing of DP World's RTG pilot project are led by Tycrop and bring together a consortium of companies in British Columbia, including Loop Energy as fuel cell supplier and HTEC for hydrogen fuel supply.
• On Sept. 19, 2023, Loop Energy announced further cost reduction activities and an update on the previously announced review and evaluation of strategic alternatives. Due to challenging capital market conditions, the board determined that was in the best interests of the company to immediately execute an additional operating cost reduction program, including an approximate 65-per-cent global head count 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.

Financial highlights Q3 2023:

• Year-to-date revenues for the three quarters ending Sept. 30, 2023, of $1.7-million, compared with year-to-date revenues for the three quarters ending Sept. 30, 2022, of $2.6-million;
• Revenues in the third quarter of 2023 of $400,000, compared with revenues of $1.4-million for the third quarter in 2022;
• An impairment loss of $4.8-million in the third quarter of 2023;
• Q3 2023 operating expenses, net of cost recoveries, of $10.7-million (which includes the $4.8-million impairment loss), versus $7.5-million in Q3 2022;
• Q3 2023 capital expenditures of $700,000, compared with Q3 2022 capital expenditures of $2.5-million;
• Q3 2023 net loss of $14.7-million, compared with a net loss of $9.9-million in Q3 2022;
• Q3 2023 loss per share of 43 cents, compared with Q3 2022 loss per share of 29 cents;
• Q3 2023 cash and cash equivalents of $5.6-million, compared with Q2 2023 cash and cash equivalents of $9.9-million.

Outlook:

• On Oct. 24, 2023, Loop Energy announced that it had executed its first non-binding letter of intent and is considering other non-binding proposals for the acquisition of components of its module business. It is anticipated that any potential acquirers may become customers of the company's hydrogen fuel cell stack business.
• On Oct. 24, 2023, Loop Energy announced that it had responded to a request for proposal to develop a new hydrogen fuel cell stack and is actively in discussions with a number of other parties with respect to fuel cell stack engineering and design services.
• On Oct. 24, 2023, Loop Energy announced that the company was engaged in discussions with potential new investors interested in supporting a smaller and more tightly focused company.
• On Oct. 24, 2023, Loop Energy announced that the change in ownership of the company's financial adviser, Credit Suisse, and the strategic direction of its new owner had required a termination of its engagement as financial adviser to Loop Energy for the strategic alternative review process.

About Loop Energy Inc.

Loop Energy is a leading designer and manufacturer of hydrogen fuel stacks targeted for the electrification of commercial vehicles, such as buses and trucks, as well as stationary power applications. Loop Energy'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 Energy's fuel cell stacks, which lowers operating cost for end-users while enabling OEMs to achieve lower capital cost and faster time to market. Loop Energy works closely with its partners to enable the production of hydrogen electric solutions.

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