Mr. Fred Andriano reports

SHARC ENERGY SELECTED BY NATIONAL LABORATORY OF THE ROCKIES FOR ADVANCED WASTEWATER ENERGY RECOVERY PROJECT

Sharc International Systems Inc. (Sharc Energy) has received a purchase order from the National Laboratory of the Rockies (NLR), a federally funded research laboratory operated by Alliance for Energy Innovation LLC.

The purchase order supports the deployment of Sharc Energy's Piranha waste water heat recovery system as part of a high-profile U.S. Department of War-supported (DoW) program at the Naval Postgraduate School's historic Hotel Del Monte in Monterey, Calif.

This program is focused on advancing high-efficiency domestic hot water retrofit solutions for large institutional facilities, one of the most energy-intensive and difficult-to-modernize building systems across DoW, formerly known as Department of Defence (DoD), infrastructure. The initiative aims to validate scalable, cost-effective technologies that improve building performance, reduce operating costs and enhance energy resilience.

Currently, there are 150,000 space heating and cooling units, and more than 70,000 domestic hot water heaters at DoW installations. Many of these legacy units operate at poor efficiency levels due to lack of adequate and consistent preventative and regular maintenance of these units over the years.

Sharc Energy's Piranha system is an integrated, all-electric WET solution that captures thermal energy from a building's waste water stream and upgrades it via a water-to-water heat pump to deliver high-efficiency domestic hot water. The recently developed Piranha HC system can produce up to 100 per cent of a building's hot water demand at 140 F year-round, while simultaneously providing supplemental cooling and dehumidification.

The installed system is expected to deliver approximately 120,000 British thermal units per hour (Btu/h) of domestic hot water capacity, alongside integrated cooling and dehumidification, enabling simultaneous heating and cooling from a single packaged unit. By leveraging waste water as a stable thermal source, the Piranha system operates at high efficiency year-round in any climate and avoids many of the limitations of conventional air-source heat pumps, including reduced efficiency in cold climates and the need for auxiliary heating.

The broader program targets up to 60 per cent in energy cost savings for domestic hot water systems, supporting the economic case for large-scale retrofit deployment across military, institutional and commercial building portfolios.

"This purchase order represents an important step in expanding Sharc Energy's presence within U.S. federal and institutional markets," said Michael Albertson, chief executive officer of Sharc Energy. "Our Piranha technology is ideally suited for retrofit applications where energy efficiency, cost savings and system resilience are critical. We are proud to support the National Laboratory of the Rockies and its partners in advancing scalable solutions for high performance buildings."

The project also includes collaboration with Honeywell as a technology transition partner, leveraging its extensive experience in energy performance contracting (ESPC) to support future commercialization and deployment across existing customer portfolios. Insights from the program are expected to inform the economics and scalability of domestic hot water system retrofits across a wide range of facilities.

The Piranha system's compact, packaged design allows for simplified installation in retrofit environments, with features including:

• All-in-one waste water heat recovery, hot water generation and cooling;
• Simultaneous heating and cooling capability;
• No requirement for maceration or prefiltration;
• Compatibility with both blackwater and greywater systems;
• Quiet operation, remote monitoring and modular scalability.

The project is expected to generate real-world performance data to support broader adoption of waste water energy recovery technologies across North America.

About Sharc International Systems Inc. (Sharc Energy)

Sharc Energy is a world leader in energy transfer from the waste water discharged down the drain every day. Sharc Energy's systems exchange thermal energy with 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 along with thermal energy networks, commonly referred to as district energy.

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.