Dr. Richard Lu reports

$41 MILLION USD TRANSACTION ACCELERATES POWERBANK GROWTH STRATEGY

Powerbank Corp. has agreed to sell its Elmira, Jordan Road 1 and Jordan Road 2 solar power projects to Solar Advocate Development LLC (the owner). The transaction, valued at approximately $41-million (U.S.), includes Powerbank's continued engagement to construct the projects through to commercial operation. The three community solar projects represent a combined generation capacity of 16.87 megawatts.

Dr. Richard Lu, chief executive officer of Powerbank, commented: "This transaction represents a pivotal moment in Powerbank's evolution. Since 2018, we have built a trusted partnership with Solar Advocate Development, and these three projects mark our eleventh successful collaboration. What makes this particularly strategic is our ability to capitalize on accelerated construction timelines created by the One Big Beautiful Bill Act. While our core focus remains building our independent power producer portfolio for long-term value creation, we're selectively monetizing development assets where market conditions are optimal. This transaction exemplifies that strategy -- converting development expertise into immediate capital that directly funds our IPP growth trajectory. It's a win-win: our partner gets high-quality community solar projects, and we reinvest the proceeds to expand our owned and operated asset base."

Transaction highlights

The transaction demonstrates Powerbank's comprehensive development capabilities and deepening market presence in New York state's renewable energy sector. Key highlights include:

• Total transaction value: approximately $41-million (U.S.), encompassing both project sale and construction services;
• Combined capacity: 16.87 megawatts across three strategically located community solar installations;
• Development milestones achieved: completed interconnection agreements with utility partners and secured permits from local authorities;
• NYSERDA eligibility: projects positioned to qualify for New York State Energy Research and Development Authority NY-Sun program incentives;
• EPC contract -- engineering, procurement and construction (EPC) -- agreements executed Dec. 19, 2025, with Powerbank delivering turnkey solutions to commercial operation.

Strategic rationale and market context

This transaction reflects Powerbank's balanced approach to value creation in the rapidly evolving renewable energy landscape. The passage of the One Big Beautiful Bill Act has created accelerated timelines for solar project development, enabling Powerbank to strategically monetize select shovel-ready assets while maintaining focus on its core objective to expand its portfolio as an independent power producer.

The projects are being constructed as ground-mount solar installations serving the community solar market -- a high-growth segment providing clean energy access to residential and small business customers who cannot install on-site solar. As community solar projects, these facilities will deliver renewable electricity benefits to multiple subscribers within their local utility service territories.

Powerbank's continuing partnership with solar advocate development, now spanning seven years and 11 announced or completed projects, underscores the company's reputation for delivering high-quality, permitted and interconnected solar assets. The net proceeds from this and similar strategic sales directly support Powerbank's expansion of its owned IPP portfolio, creating a sustainable capital recycling model.

There are several risks associated with the development of the projects. The development of any project is subject to the continued availability of third party financing arrangements for the owner and the risks associated with the construction of a solar power project. Each EPC agreement includes a corresponding guarantee agreement entered into between owner and the company that provides that the owner shall have, if it is not satisfied with its due diligence, the absolute and unconditional right to sell, transfer, convey or assign the project back to the company (sell-back right) without incurring any further liabilities by providing written notice to company at any time within 60 days of Dec. 19, 2025. If any EPC agreement is terminated, the company will not achieve the transaction value and will required to return any funds that have been received associated with the terminated project. In addition, governments may revise, reduce or eliminate incentives and policy support schemes for solar power, which could result in future projects no longer being economic.

About Powerbank Corp.

Powerbank is a North American renewable energy developer and independent power producer specializing in distributed solar and battery energy storage system (BESS) projects across Canada and the United States. The company's integrated business model encompasses project development, construction management and long-term asset ownership, serving utility, commercial, industrial, municipal and residential off-takers.

Powerbank's diversified portfolio strategy spans multiple leading North American markets and includes utility-scale projects, host offtaker arrangements, community solar installations and virtual net metering programs. The company has successfully developed and constructed renewable energy projects exceeding 100 megawatts of combined capacity and maintains a robust development pipeline of over one gigawatt of potential future projects.

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