Hillcrest Announces New Joint Development Opportunity and Provides Additional Shareholder Updates

VANCOUVER, BC, May 17, 2024 – Hillcrest Energy Technologies (CSE: HEAT) (OTCQB: HLRTF) (FRA: 7HI), an innovative clean technology company specializing in power conversion technologies, is pleased to announce that it is finalizing development terms with a European energy storage services innovator (“ESS Innovator”) for the delivery of 300kVA | 800V Hillcrest ZVS inverters.

Hillcrest is actively working with the ESS Innovator to finalize a joint development agreement. The primary goal of the collaboration will be to customize a ZVS inverter prototype to meet the specific requirements of the ESS Innovator. Successful deployment of these prototypes is expected to pave the way for a commercial supply arrangement.

Ari Berger, Chief Technology Officer at Hillcrest, highlights the advantages of the Company’s ZVS technology. “Our technology provides exceptional efficiency and enhances power quality, especially in applications such as energy storage. In scenarios with frequent bidirectional charge and discharge cycles, the benefits of ZVS are magnified. Additionally, our ability to significantly reduce or potentially eliminate protective measures required to mitigate electromagnetic interference (EMI) can lead to substantial system cost savings.”

The ESS Innovator is focused on bringing the highest efficiency energy storage solutions to the market. With the rapid transition towards electrification, there’s a burgeoning demand for energy storage solutions. The European energy storage market is forecasted to grow at a compounded annual growth rate exceeding 18% through 2029.

According to Hillcrest CEO, Don Currie, “this project represents a significant milestone. It marks the initial implementation of our ZVS technology beyond electric vehicle (EV) traction inverters. By deploying this technology in stationary, grid-connected applications, we aim to demonstrate its broader value proposition across various power conversion uses. This move not only expands our market reach but also reinforces our leadership in the clean technology sector.”

Hillcrest and the ESS Innovator anticipate finalizing formal terms in the coming weeks. The Company will continue to provide updates as significant milestones are attained.

Additional Shareholder Updates

Hillcrest announces incentives to various executives, directors and consultants of the Company. The incentives will be paid through the issuance of common shares in the capital of the Company (the “Shares”) at a deemed price of $0.25 per Share, resulting in the issuance of an aggregate of 7,297,025 Shares.

The Company also announces the grant of 2,410,000 restricted share units of the Company (“RSUs”) and 4,663,867 stock options of the Company (“Stock Options”) to various executives, employees and consultants of the Company. The RSUs have a 3-year term and vest immediately. The Stock Options have an exercise price of $0.25, a 5-year term and are subject to vesting criteria.

Correction of News Release on May 9, 2024

Hillcrest would also like to correct information relating to the close of the third drawdown of its previously announced Equity Drawdown Facility (“Equity Facility”) on May 9, 2024.  Pursuant to the terms of the Equity Facility, the Company issued the Investor 724,238 units of the Company (“Units”) at a deemed price of $0.216 per Unit.  The Company also issued the Investor 86,909 shares at a deemed price of $0.216 per Share in satisfaction of the drawdown fee payable in connection with the third drawdown.