Mr. Justin Rosenberg reports

BLOCKMATE VENTURES TO ACQUIRE LITHIUM BATTERY DISTRIBUTOR, BESS

Blockmate Ventures Inc. has entered into a binding share purchase agreement dated Oct. 25, 2023, pursuant to which the company proposes to acquire all of the issued and outstanding share capital of Bess Power Innovation Corp., a company focused on the sales, distribution and manufacturing of residential and industrial lithium iron phosphate and lithium ion sodium batteries and auxiliary products.

Bess owns the exclusive distribution rights to Blivex Energy Technology Co.'s lithium battery products for North and South America, and intends to address demand for residential and industrial battery products, where expected delivery times for certain products exceed 12 months. Bess anticipates that equivalent Blivex battery products can be delivered within one to three months from the time of order.

Blivex has been developing, manufacturing and selling industrial lithium batteries, electric vehicle batteries and related products since 2005, and is publicly listed on the Shenzhen Stock Market.

In consideration for the transaction, Blockmate will issue 20 million common shares to the existing shareholders of Bess. The consideration shares are subject to restrictions on resale for four months and one day after completion of the transaction. Pending approval from the TSX Venture Exchange, completion of the transaction is expected to take place on or before Nov. 30, 2023.

The grid-scale battery energy storage solution market is expected to grow at over 24 per cent per year from $3-billion (U.S.) in 2020 to $15-billion (U.S.) in 2027 (1).

Commenting on the transaction, Blockmate chief executive officer Justin Rosenberg said: "Blockmate has been actively seeking venture opportunities in the clean energy space and is delighted to consummate our interest through this share purchase agreement with the vendors of Bess. Commercial issues around material sourcing and production delays have created a substantial opportunity for lithium battery producers in North America.

"Through this acquisition and the partnership Bess has with Blivex, there is an excellent opportunity to disrupt the industrial battery market in North America and South America.

"The team at Bess has an extensive track record in the energy transition industry in renewables, storage and EV charging.

"It is our mandate to help governments and corporations embrace technologies that help them reduce their carbon footprint.

"With Blockmate's market [capitalization] still under $5-million post this acquisition, this acquisition gives investors the lowest-cost entry to access one of the fastest-growing markets -- the energy storage sector."

"We are looking forward to working with the Blockmate team, who have excellent success in identifying disruptive opportunities and early-stage investments. Their expertise and global networks will be highly beneficial to Bess as we expand our lithium battery distribution into North America, capable of delivering products in less than half the time as the market leaders.

"Beyond just distributing batteries manufactured in Asia to North America, the commercial opportunity to leverage Blivex's supply chain to manufacture battery products in North America and South America is one we are very excited to explore with Blockmate and the support of Blivex."

(1) Grand View Research.

About Blockmate Ventures Inc.

Blockmate is a venture creator focusing on building fast-growing technology businesses relating to cutting-edge sectors such as blockchain, climate and energy storage. Working with prospective founders, projects in incubation can benefit from the Blockmate ecosystem that offers technology, services, integrations and advice to accelerate the incubation of projects toward monetization. Recent projects include Hivello (download its free passive income app) and Sunified, digitizing solar energy.

The leadership team at Blockmate has founded successful technology companies from the dot-com era through to the social media era.

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