Hillcrest Completes Design Concept for Next Generation EV Inverter and Provides Additional Shareholder Updates

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES

• Hillcrest’s next generation EV inverter is optimized with the Company’s own ZVS-enabled power module
• New 350 kW SiC inverter designed for applications up to 1,000 V
• Hillcrest to present at London Stock Exchange Investor Webinar this Thursday

VANCOUVER, BC, July 17, 2023 – Hillcrest Energy Technologies (CSE: HEAT) (OTCQB: HLRTF) (FRA: 7HIA) (“Hillcrest” or the “Company”), an innovative clean technology company, redefining power conversion technologies and advanced control system solutions, is pleased to announce the completion of the design concept for its next generation electric vehicle (EV) inverter.

The new and improved EV inverter is optimized with Hillcrest’s own Zero Voltage Switching (ZVS)-enabled power module. The enhanced version provides an additional 100 kW of energy compared to Hillcrest’s previous prototype, leverages 350-kilowatt silicon carbide (SiC) technology and is designed for applications up to 1,000 volts (V).

By incorporating this new inverter, EV manufacturers can expect even higher power density, better switching performance and improved electromagnetic compatibility (EMC). The enhancements and benefits will enable EV manufacturers to further reduce vehicle weight and component costs, making EVs more efficient and affordable.

James Bolen, Chief Commercialization Officer at Hillcrest, says: “The first of its kind traction inverter is the result of Hillcrest’s relentless innovation and expertise in power electronics design and control systems. We’ve optimized our next generation SiC traction inverter with our own ZVS-enabled power module. This will be the only fully Zero Voltage Switching EV inverter in the world, creating a wider competitive advantage for Hillcrest. We firmly believe that our new traction inverter, available for customer demonstrations in Q4, will be the most innovative and unique option available in the market.”

The traction inverter is a key component in an EV, as it converts the battery’s direct current (DC) into alternating current (AC) to power the electric motors that drive the vehicle. Hillcrest’s SiC traction inverters leverage the Company’s exclusive ZVS technology platform, resulting in industry-leading inverter efficiency of up to 99.6%. Extensive testing and simulation have demonstrated significant improvements in overall system efficiency, performance, and reliability for electric systems such as EVs, stationary energy generation, and energy storage systems. These results indicate that Hillcrest’s ZVS technology could potentially save up to US$2,200 per vehicle by reducing the size of the battery and eliminating or reducing other components and materials.

Hillcrest produces power modules that are crucial components in high energy-density power conversion equipment, like automotive traction inverters. These modules contain power semiconductor devices (SiC dies) arranged on a substrate to create a circuit. This circuit ensures excellent electrical and thermal contact and insulation. Hillcrest’s power modules are the first ones designed specifically to make the most of the Company’s exclusive ZVS technology. They are expected to bring significant improvements in power density, system efficiency, performance, and reliability for electric vehicle applications up to 1,000 volts.

LSE Live Webinar this Week

This Thursday, July 20^th at 7:00 am PST, Hillcrest Chief Executive Officer, Don Currie, will participate in an investor webinar showcasing the future of the electric vehicle marketplace.  The live event will be hosted by the London Stock Exchange.

Registration for the virtual event is available at this link: LSE Live Investor Webinar

Close of Warrant Adjustment Placement

Hillcrest has closed its previously announced non-brokered private placement for total gross proceeds of $12,540 (the “Offering”).  There were an aggregate of 12,540,000 common share purchase warrants of the Company (each, a “Warrant”) sold at a price of $0.001 per Warrant pursuant to the Offering. However on June 7, 2023, the Company completed a consolidation (the “Consolidation”) of the common shares in the capital of the Company which resulted in one post-Consolidation common share being outstanding for every six pre-Consolidation common shares issued to shareholders, and subsequently, the Company adjusted the Offering size to one Warrant issued for every six Warrants subscribed for, with a post-Consolidation Offering size of an aggregate of 2,090,000 Warrants.  Each Warrant entitles the holder thereof to acquire one Common Share at a price of $0.90 per Common Share for a period of 24 months following the closing date of the Offering.

The Offering was available to those subscribers who purchased units of the Company consisting of 1.2 common shares in the capital of the Company (the “Units”) during the October and December 2022 distribution, at an issue price of $0.12 per Unit.

The subscribers to the Offering include two directors and an officer who subscribed for an aggregate of 301,333 Warrants. The issuance of Shares to this offer constitutes a “related party transaction” as this term is defined in Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions (“MI 61-101”). The Company is relying on the exemption from valuation requirement and minority approval pursuant to subsection 5.5(a) and 5.7(a) of MI 61-101, respectively, for the insider participation in the Offering, as the securities do not represent more than 25% of the Company’s market capitalization, as determined in accordance with MI 61-101.

All securities issued in connection with the Offering are subject to a four month and one day hold period.

The Company intends to use the proceeds from the Offering for ongoing technology development and commercialization activities, and general working capital.

The securities of the Company referred to in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or any state securities laws. Accordingly, the securities of the Company may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of any offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Hillcrest Energy Technologies

Hillcrest Energy Technologies is a clean technology company developing high-value, high-performance power conversion technologies and digital control systems for next-generation powertrains and grid-connected renewable energy systems. From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future. Hillcrest is publicly traded on the CSE under the symbol “HEAT,” on the OTCQB Venture Market as “HLRTF” and on the Frankfurt Exchange as “7HIA”. For more information, please visit: https://hillcrestenergy.tech/.