Mr. Randy Buchamer reports

LEGEND POWER SYSTEMS ANNOUNCES SIGNIFICANT OPERATIONAL AND SALES PROGRESS

Legend Power Systems Inc. has provided operational and sales updates.

During the past year, Legend Power continued to adapt its solutions to a changing world and customer needs. The company continued to invest in developing awareness and acceptance in a new solution category, active power management (APM), and is well recognized as the leading APM brand. The company has created a strong base for growth as its powerful and unique solutions become industry standards.

As a result of these operational activities, the company has received $8-million of order commitments that have either been realized in the fourth quarter or are in various stages of finalization. The company also announces an additional $8-million (U.S.) in commitments for larger systems (currently in development) for future delivery.

Fourth quarter commitments range from retail to large, multiple building facilities; however, the company made significant progress with the U.S. federal government, including an initial commitment for double-digit SmartGate systems. Over the next decade, the U.S. federal government could account for over 10,000 systems. When combined with the verbal commitment for more than 300 systems for a single vertical of a major U.S. municipal government customer, the demand for Legend Power Systems SmartGate continues to grow. At the end of the fiscal year ended Sept. 30, 2023, Legend Power Systems has $75-million (U.S.) of pending proposals and $125-million (U.S.) of near-term opportunities. The company estimates that the current 200 potential customers that are active in the sales funnel could be worth over $2-billion (U.S.) to Legend.

"Interest in our active power management solutions is growing across all of our targeted verticals, especially the U.S. government sectors," said Legend Power Systems chief executive officer Randy Buchamer. "This is evidenced by our U.S. federal government commitments as well as a U.S. municipality verbally committing to over 300 systems over the next five years. The $2.4-million equity financing that we closed in late summer, along with a $1-million net cash gain contribution from backlog sales as well as 5-per-cent cost reductions from improvement initiatives, have strengthened our balance sheet to support these business development activities. I look forward to updating investors on our progress as these opportunities progress."

To support these order commitments, Legend Power is collaborating with outsourcing providers to reduce installation costs and enhance the financial feasibility of SmartGate projects for customers. Moreover, with capacity planning completed and robust material resource planning mechanisms in place, the company is primed to convert its commitments into sustained cash flow for the foreseeable future.

The company has renewed its agreement with Sophic Capital Inc. to act as its investor relations firm. Sophic will be paid $7,000 per month for a term of 12 months and Sean Peasgood, the authorized individual at Sophic, will receive 100,000 incentive stock options to acquire common shares in the capital of Legend Power. The options are non-transferable and exercisable for five years at 18 cents per option, subject to vesting provisions, with one-sixth vesting six months from the date of grant and one-sixth vesting every six months thereafter. Sophic and/or its authorized individual, Mr. Peasgood, currently hold 1,717,700 common shares and 600,000 stock options in the capital of the company.

About Legend Power Systems Inc.

Legend Power provides an intelligent energy management platform that analyzes and improves building energy challenges, significantly impacting asset management and corporate performance. Legend Power's proven solutions support pro-active executive decision making in a complex and volatile business and energy environment. The proprietary and patented system reduces total energy consumption and power costs while also maximizing the life of electrical equipment. Legend Power's unique solution is also a key contributor to both corporate sustainability efforts and the meeting of utility energy efficiency targets.

We seek Safe Harbor.