Mr. Lynn Mueller reports

SHARC ENERGY AT FOREFRONT OF ALEXANDRIA'S SUSTAINABLE MEGA CAMPUS INITIATIVE

Sharc International Systems Inc. has provided an update to a previously disclosed project in the heart of Seattle. Sharc Energy is honoured to have collaborated with King County, McKinstry and esteemed real estate firm Alexandria Real Estate Equities Inc. (ARE) in unveiling a cutting-edge sewer heat recovery system, commonly referred to as a waste water energy transfer (WET) system, at the Alexandria Center for Life Science in South Lake Union, Seattle. This initiative clearly demonstrates the benefits of public-private partnerships based on King County's progressive sustainable legislation.

By utilizing the consistent 70-degree waste water temperature from the sewer system, waste water treated as a renewable resource offers a sustainable alternative to traditional energy sources. It is anticipated that the Sharc WET system will reduce carbon emissions by an astonishing 99 per cent while providing 70 per cent of the heating needs to the campus compared with a standard laboratory building in Seattle.

At the heart of this sustainable project lies the Sharc WET system, engineered to serve the 1.6 million-square-foot life science megacampus. The system captures heat from a King county sewer pipeline, transmitting the reclaimed energy through a heat pump to warm the campus's facilities. The project is beneath ARE's 701 Dexter Ave. North development, with full operational status envisioned by 2025.

A key milestone in the project was when McKinstry connected the county's century-old main sewer line to Alexandria's system, demonstrating the feasibility of waste water energy in urban landscapes. McKinstry's expertise further demonstrates the collective competency propelling this project.

King County's recent press release on Oct. 19, 2023, highlights its commitment to sustainable practices, setting a remarkable precedent for other regions. The leadership shown by King county's sewer heat recovery program shows how it is actively nurturing commercial interest in renewable energy solutions, combating climate change and mitigating energy costs. Currently, there remains two project spaces open under the program where approved projects will not be required to pay transfer fees for three years in exchange for the operational data.

The disclosure of this project precedes a CleanTech Alliance led round-table event on Oct. 25, 2023 -- Harnessing the Untapped Potential of Wastewater Energy Transfer for Your Municipality -- where sewer authorities from across the United States will be teaching on how to transform sewer infrastructure into a clean energy network of the future. Virtual registration to the event is free for any interested attendees.

In closing, this collaborative venture aligns impeccably with Sharc Energy's ability to drive electrification, decarbonization and fresh water conservation.

Learn more about the Alexandria Center project on the Sharc website. Additional insights can be found in a recent Seattle Times article detailing how sewer heat recovery technology is warming office buildings in Seattle.

About Sharc International Systems Inc.

Sharc International Systems is a world leader in energy transfer from the waste water people send 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.

Sharc Energy is publicly traded in Canada (Canadian Securities Exchange: SHRC), the United States (OTCQB: INTWF) and Germany (Frankfurt Stock Exchange: IWIA).

We seek Safe Harbor.