Mr. William Trainer reports

VICINITY MOTOR CORP. RECEIVES LETTER OF INTENT FOR 100 VMC 1200 EV TRUCKS FROM PIONEER AUTO GROUP PIONEER AUTO GROUP REPRESENTS FIRST MAJOR RETAIL AUTOMOTIVE LOI FOR CLASS 3 ELECTRIC TRUCKS

Vicinity Motor Corp. has received a letter of intent (LOI) from Pioneer Auto Group, a leading retail automotive dealer in British Columbia, for 100 VMC 1200 Class 3 electric trucks worth approximately $14-million.

Pioneer is a well-respected Canadian dealership group with 17 locations located chiefly throughout British Columbia, Canada. The company retails over 6,000 vehicles per year and carries over 1,500 vehicles in its network, including Mitsubishi, Honda, Chrysler, Dodge, Jeep and RAM models. The 100 VMC 1200 Class 3 trucks specified in the LOI are expected to be delivered in 2022, subject to the execution of a dealer agreement, with first orders starting in first quarter. The dollar value of the vehicle purchase is approximately $14-million.

"Pioneer is a well-known and highly rated auto dealer with 17 locations across British Columbia, making them an excellent strategic partner to introduce our new Vicinity 1200 medium-duty electric truck throughout the province," said William Trainer, founder and chief executive officer of Vicinity Motor. "With a specialty focus on trucks and SUVs, Pioneer will be able to offer an [electric vehicle] alternative for customers interested in a commercial vehicle design for urban environments with a 6,000-pound load capacity, 150-mile estimated range and a popular cab-over design -- all at an attractive price."

"We are seeing strong indicative demand from our continent-wide dealer network and expect to see continued momentum in the months ahead. I look forward to providing further updates on this front to our valued shareholders as appropriate," concluded Mr. Trainer.

Ray Van Empel, president and CEO of Pioneer Auto Group, added: "This is a major milestone for our vehicle product line to offer the VMC 1200 popular cab-over chassis design with an EV powertrain. VMC is a well-known name in the municipal transit space, and it's exciting to see their crossover to industrial trucks. We look forward to selling these new VMC 1200 throughout our dealerships."

About Vicinity Motor Corp.

Vicinity is a leading North American supplier of electric vehicles for both public and commercial enterprise use. The company leverages a continent-wide dealer network and close relationships with world-class manufacturing partners to supply its flagship electric, compressed natural gas and clean-diesel Vicinity buses, the VMC 1200 electric truck, and a VMC Optimal EV shuttle bus. In addition, the company sells its proprietary electric chassis alongside J.B. Poindexter subsidiary EAVX, the company's strategic partner, for upfitting into next-generation delivery vehicles.

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