Hillcrest Returns to the UK and Provides Additional Shareholder Updates

VANCOUVER, BC, May 9, 2024 – Hillcrest Energy Technologies (CSE: HEAT) (OTCQB: HLRTF) (FRA: 7HI), an innovative clean technology company revolutionizing power conversion technologies, is actively pursuing business and financing opportunities in the United Kingdom.

Hillcrest CEO Don Currie returned to the UK this week, where he engaged with numerous potential partners. He emphasized the significance of maintaining a consistent presence in the region, stating, “We are seeing a growing interest from automotive and component manufacturers, as well as potential financial partners across the UK. It’s crucial for us to sustain this remarkable momentum.”

The UK’s commitment to a zero-emission vehicle mandate, its prominent role in electrifying the motorsport industry, and its leadership in offshore wind generation make it a key market for Hillcrest. The Company’s Zero Voltage Switching (ZVS) inverter technology offers unparalleled efficiency and cost-saving benefits across the electric mobility and renewable energy generation and storage sectors.

Close of the Third Drawdown of Previously Announced Equity Drawdown Facility

Hillcrest is also pleased to announce the closing of the most recent drawdown of the previously announced $5 million equity drawdown facility (the “Equity Facility”).

The Company has provided the third-party investor (the “Investor”) with a drawdown notice and on May 9, 2024, the Investor funded the Company with a drawdown amount of $156,435 (the “Drawdown”). Pursuant to the terms of the Equity Facility, in connection with the Drawdown the Company issued the Investor 724,238 units of the Company (“Units”) at a deemed price of $0.22 per Unit. Each Unit is comprised of one common share in the capital of the Company (a “Share”) and one-half of one Share purchase warrant (each whole Warrant, a “Warrant”), each of which is exercisable to acquire one additional Share at a price of $0.28 for a period of three years from the date of distribution. The Company also issued the Investor 86,909 Shares at a deemed price of $0.22 per Share in satisfaction of the drawdown fee payable in connection with the Second Drawdown.

The Company intends to use the proceeds from the Equity Facility, including this Drawdown, for technology and product development, commercialization, and general working capital.

To date and in connection with past drawdowns, the Company has received a total of $925,673 in proceeds from the Equity Facility and issued 4,589,340 Shares and 2,186,875 Share purchase warrants (“Warrants”). Of the 2,186,875 Warrants, all of which are exercisable for a period of three years from the date of issuance, 741,541 Warrants are exercisable at a price of $0.31, 547,044 are exercisable at a price of $0.30, 536,171 are exercisable at a price of $0.25 and 362,119 are exercisable at a price of $0.28.

All securities issued pursuant to the Equity Facility, including this Drawdown, will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.

All securities issued pursuant to the Equity Facility, including this Drawdown, will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.

The Company also announces the grant of 100,000 stock options of the Company (“Options”) to a consultant of the Company for up to 100,000 common shares of the Company.  The Options have an exercise price of $0.25, vest immediately and have a three-year term.