Hillcrest Energy Technologies Ltd. (CSE: HEAT) (OTCQB: HLRTF) (FSE: 7HI) is pleased to provide an update on the Company's recent accomplishments, highlighting key advancements and strategic developments as it continues to position itself as a leader in the fast-growing electric vehicle (EV) and renewable energy sectors.

"Our ZVS technology represents a significant leap forward in power conversion capabilities. Recent advancements are critical for driving broad adoption across multiple industries," said Hillcrest CEO Don Currie.

Momentum Building: Progressing Towards Commercial Agreements with Top Automakers and Suppliers

Hillcrest is advancing joint development discussions with leading automakers and Tier One suppliers, fueled by growing interest in its Zero Voltage Switching (ZVS) technology. Our ZVS traction inverter and power factor correction (PFC) prototype stand out for their unique benefits, such as enhanced efficiency, elimination of switching losses, and superior electromagnetic compatibility (EMC). These advantages make Hillcrest's technology particularly appealing in the electric vehicle and industrial power conversion markets.

"We believe we are on the verge of a major breakthrough, with our first commercial agreement potentially nearing fruition," said CEO Don Currie. "Several potential deals are in the advanced stages, and our recent demonstrations and strategic collaborations, especially in Europe, are paving the way for formal partnerships. We are confident these ongoing discussions will soon translate into significant commercial transactions, driving long-term growth for Hillcrest."

Despite recent market declines, the global electric vehicle market is projected to grow at a compound annual growth rate (CAGR) of 18-24%, potentially exceeding US$3 trillion in value by 2030. Hillcrest's ZVS traction inverter, which offers potential savings of up to $2,200 per vehicle, strategically positions the Company to capture a substantial share of this expanding market. In addition, ongoing discussions with leading global automakers and Tier One suppliers are anticipated to lead to formal agreements in the near term, further strengthening the Company's growth trajectory.

Accelerated Demonstration Schedule to Drive Commercial Adoption

Hillcrest is actively showcasing the value of its ZVS-enabled products to a growing list of potential customers and partners, with the aim of securing its first commercial agreements. By the end of the year, the Company expects to complete advanced demonstrations with several new customers, including three of the world's top ten automakers and major Tier One suppliers. These demonstrations highlight the key features of Hillcrest's ZVS traction inverter, which are designed to meet the critical needs of next-generation electric vehicle platforms. Hillcrest's ZVS-enabled PFC prototype will also be showcased, highlighting its potential to enhance power quality and optimize energy usage in EV onboard chargers and other industrial and renewable energy applications.

Strategic Collaborations in Europe: Hillcrest and Systematec Push Technological Boundaries

Recently, Hillcrest and its development partner, Systematec GmbH, held a series of strategic meetings in Germany with potential customers and investors. These discussions, along with a two-week technical collaboration, have been instrumental in advancing Hillcrest's ZVS traction inverter and PFC prototypes.

"The time spent in Germany resulted in significant commercial advancements with potential customers and was instrumental in accelerating the further development of our ZVS technologies," Currie continued. "The collaborative environment allowed us to push the boundaries of what our products can achieve while simultaneously building stronger connections with key industry stakeholders."

Hillcrest's ongoing presence in Europe supports its broader strategy to capitalize on the multi-billion-dollar market opportunity for high-efficiency power electronics in EV, industrial and renewable energy applications.

Ocean Batteries Collaboration: Prototype Development on Track for Early 2025

Hillcrest's partnership in the Ocean Batteries project is progressing as planned, with the delivery of the first 300kVA | 800V ZVS inverter prototype expected in early 2025. This prototype is designed to meet the stringent demands of marine shore power applications and could set a new benchmark for efficiency and reliability in the marine energy storage sector. The European energy storage market is forecasted to grow at a compounded annual growth rate exceeding 18% through 2029, and Hillcrest's ZVS technology is poised to play a critical role in this expansion.

"We're excited about the potential impact of our ZVS inverter on the Ocean Batteries project," said James Bolen, Chief Commercialization Officer at Hillcrest. "This collaboration highlights our commitment to expanding ZVS technology into grid-connected applications, including marine and renewable energy generation."

Diverse Applications of ZVS Technology Driving Hillcrest's Growth

Hillcrest's Zero Voltage Switching technology is at the heart of the Company's portfolio, offering versatile, high-performance solutions across multiple sectors:

• The ZVS traction inverter enhances EV performance by eliminating switching losses and improving EMC, offering up to US$2,200 in savings per vehicle.

• The ZVS power factor correction (PFC) optimizes power management in industrial and renewable energy applications, reducing energy losses and ensuring greater operational efficiency across systems such as EV onboard charging, renewable energy generation and energy storage.

• The grid-connect ZVS inverter is designed for energy storage and stationary applications, such as e-mobility chargers and data centers, providing highly efficient power conversion with minimal harmonic distortion. These advantages could lead to tens of millions of dollars in additional power generation revenue over the lifetime of a utility-scale solar farm

• The ZVS-enabled power module is a highly versatile, integrated solution that can be customized for various power levels and voltage needs, applicable to EVs, renewable energy systems, and industrial power applications.

"With these advanced applications, Hillcrest is poised to capture a share of the clean energy and electrification markets," said Currie. "Our technology roadmap positions us as a leader in the clean energy transition, and our portfolio of innovative solutions offers immense potential for both short- and long-term growth."

Looking Ahead: Hillcrest's Commitment to Shareholder Value

With key partnerships on the horizon and groundbreaking ZVS technology ready to disrupt multiple markets, Hillcrest is well-positioned to deliver significant shareholder value in the clean energy transition.

About Hillcrest Energy Technologies

Hillcrest Energy Technologies is a clean technology company focused on providing advanced 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 "7HI". For more information, please visit: https://hillcrestenergy.tech/.

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Some of the statements contained in this news release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "expects," "intends," "is expected," "potential," "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may," "could," "should," "would," "might" or "will" be taken, occur or be achieved. This forward-looking information is provided as of the date of this news release. The forward-looking information reflects our current expectations and assumptions and is subject to a number of known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to be materially different from any anticipated future results, performance or expectations expressed or implied by the forward-looking information. No assurance can be given that these assumptions will prove correct. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company's control. Investors are advised to consider the risk factors under the heading "Risks and Uncertainties" in the Company's MD&A for the year ended Dec. 31, 2023, available at https://www.sedarplus.ca/ for a discussion of the factors that could cause the Company's actual results, performance and achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking information. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.