Mr. Hanspaul Pannu reports

SHARC ENERGY IS OFFICIALLY DEBT-FREE

Sharc International Systems Inc. has extinguished 100 per cent of its outstanding convertible debt liability and exercised nearly 100 per cent of its expiring warrants. The company is now debt-free, with a total working capital gain of $7.4-million since the beginning of the year.

Since the beginning of 2023, the company has converted 100 per cent of the $4-million total of convertible debt maturing on Feb. 13, Feb. 24, May 29 and June 12, 2023, into equity while bringing in $3.4-million in proceeds from warrant exercises to date.

The company has no debt outside of its standard operating payables and has approximately $3-million in cash and cash equivalents as of today.

"This marks the first time since the first quarter of 2017 that Sharc Energy's balance sheet will be free of convertible debt. The full conversion of debt into equity by our loyal and supportive shareholders validates their confidence in the company and its growth prospects," said Hanspaul Pannu, chief financial officer of Sharc Energy. "We are proud to reach this milestone, which further strengthens the company's ability to capitalize on the rapidly growing waste water energy transfer industry."

As of May 26, 2023, the last financial statement disclosure date, the company had an aggregate sales pipeline and sales order backlog of $17.7-million. The company expects its sales pipeline to continue to grow and the rate of sales pipeline converting to sales order backlog to accelerate over the balance of the year. The company will look to strategically invest its working capital to augment its pipeline growth and acceleration.

About Sharc International Systems Inc.

Sharc International Systems is a world leader in energy recovery from the waste water sent down the drain every day. Sharc Energy's systems recycle thermal energy from waste water, generating one of the most energy-efficient and economical systems for heating, cooling, and hot-water production for commercial, residential and industrial buildings.

We seek Safe Harbor.