Mr. Jeff Allison reports

DELTA ANNOUNCES SALE OF EMISSIONS REDUCTION DIVISIONS

Delta Cleantech Inc. has entered into an asset sale agreement with Scovan Inc. dated Jan. 21, 2025. Pursuant to the APA, Scovan will acquire certain assets related to Delta Cleantech's liquids, purification, carbon dioxide capture and OExperts divisions for up to an aggregate purchase price of $1.05-million, together with project royalties payable of up to $15.3-million over a maximum seven-year term.

As the Delta name was part of the proposed transaction, Delta Cleantech intends to change its name to better reflects its current business focus.

Jeff Allison commented: "The strategic merger of Delta Cleantech's CO2 emissions reduction and related purification division with Scovan will provide the engineering and fabrication capabilities that Delta was missing from its product offering. Closing of the proposed transaction will allow the corporation to move forward with a strong and experienced process design, engineering and fabrication capabilities."

Scovan is a leader in engineering and project execution for process equipment integration, specializing in the oil and gas and energy transition sectors. Scovan is entering into the proposed transaction to further enhance its position in the carbon capture market and to utilize Delta Cleantech's recognized skill set and historic experience, innovative technologies, and experienced team.

Kelly Mantei, vice-president, operations, of Scovan, commented: "This deal signifies a new chapter for carbon capture advancement in Western Canada. Delta Cleantech's products and team are the perfect partner to Scovan's EPFC services. This partnership enables us to leverage complementary strengths, innovate together and provide unparalleled value to our clients."

The board of directors of Delta Cleantech has approved the proposed transaction, and management of Delta Cleantech believes that it is in the best interest of Delta Cleantech's shareholder to proceed with the proposed transaction as it will offer Delta Cleantech and its shareholders an opportunity to benefit from the continuing royalty revenue associated with the process design and fabrication of CO2 capture infrastructure projects. As part of the sale of the CO2 assets, Delta Cleantech has sold the business name Delta Cleantech to Scovan, subject to special shareholders' approval and approval by the Canadian Securities Exchange, of a name change from Delta Cleantech Inc. to another suitable name, to better describe thecorporation's continuing business activities.

No finder's fee is payable in respect to the proposed transaction.

Delta Cleantech is a 19-year environmental, social and governance driven, recognized global technology leader in CO2capture, decarbonization of energy, solvent and glycol reclamation, blue hydrogen production, and carbon credit aggregation and management. Delta Cleantech continues to provide solutions to clients all over the world in sequestering, capturing and reducing CO2, and, through its affiliate, Carbon RX, is originating, validating, digitizing and streaming carbon credits.

We seek Safe Harbor.