Strategic Indigenous Collaboration and Financing Position Company for Accelerated Market Entry Across Multiple High-Growth Sectors

Vancouver, British Columbia--(Newsfile Corp. - January 15, 2026) - Hillcrest Energy Technologies (CSE: HEAT) (OTCQB: HLRTF) (FSE: 7HI) ("Hillcrest" or the "Company") is pleased to provide shareholders with an update on recent strategic developments and key commercialization milestones expected in 2026.

"As we enter 2026, Hillcrest stands at a pivotal inflection point where years of technology development are translating into tangible commercial opportunities across multiple high-growth sectors," said Don Currie, CEO of Hillcrest Energy Technologies. "Our strategic collaboration with Pasqua First Nation and Apeiron Resources, combined with successful completion of our financing, provides both the resources and market access to accelerate commercialization of our ZVS technology across Canada while we continue to advance opportunities in automotive and data center sectors globally."

Strategic Foundation Established

In October 2025, Hillcrest announced a collaboration with Pasqua First Nation ("PFN") and Apeiron Resources Ltd. ("Apeiron") to establish an Indigenous-majority owned entity focused on commercializing Hillcrest's Zero Voltage Switching ("ZVS") power conversion technology throughout Canada. The structure contemplates creating a framework to market, distribute, sell, and potentially manufacture ZVS products across energy storage systems, AI data centers, remote microgrids, and critical infrastructure applications.

PFN's investment of $3 million directly into Hillcrest demonstrates confidence in both the technology and the business model. The collaboration is actively pursuing additional operating capital through government grants and qualified investment entities, with the goal of creating non-dilutive funding pathways to support commercialization activities in the Canadian market.

Last week, Hillcrest successfully closed the final tranche of its private placement offering, raising total gross proceeds of approximately $4.4 million through the cash offering and settling approximately $2.8 million in debt. The financing strengthens the Company's balance sheet to support further development of ZVS technology, marketing and investor relation activities, retirement of existing accounts payable, and general working capital.

"The strategic investment from Pasqua First Nation reinforces the value of our collaborative approach to commercializing ZVS technology," added Currie. "Combined with the successful retirement of debt, we're now positioned to accelerate development and deliver on the commitments we've made to our shareholders and partners."

Building on 2025 Progress

Throughout 2025, Hillcrest completed extensive validation testing with multiple automotive OEMs and Tier One suppliers, demonstrating measurable performance advantages in real-world automotive applications. These technical validations have translated into advanced commercial conversations with several global entities, exploring pathways to monetize ZVS technology in the automotive sector.

2026 Commercialization Focus

With technology validation complete and strategic collaborations in place, 2026 represents a pivotal year for accelerating commercial efforts.

Grid and Data Center Applications

The ZVS PCS1000, a 200kW, 1000V power conversion system, is expected to be ready for customer demonstrations in Q2 2026. The explosive growth of AI is creating unprecedented demand for efficient power conversion, and the ZVS PCS1000 is expected to be a purpose-engineered solution for 800V DC distribution architectures being standardized by the Open Compute Project, the consortium driving data center innovation for companies like Meta, Microsoft, Intel and NVIDIA.

The 200kW modular design will scale to 1.2MW and beyond with N+1 redundancy and hot-swap capability for zero-downtime maintenance. Ultra-low electromagnetic interference is critical for sensitive computing infrastructure, and superior efficiency will translate directly to operational cost savings. An additional 0.5% efficiency improvement translates to 500kW of avoided losses in a 100MW facility, representing the potential for substantial energy and cooling infrastructure savings.

Canada's clean energy market is projected to grow from 115 GW to 149 GW by 2030, with energy storage capacity expected to expand from 1 GW to 12-16 GW by 2035, representing over $140 billion in investment opportunities (Source: Renewables Association of Canada, Canadian Renewable Energy Market Outlook 2025). The federal government has committed $93 billion in Clean Economy Investment Tax Credits through 2034, including up to 30% refundable credits for clean technology manufacturing (Source: Canada Revenue Agency, Clean Economy Investment Tax Credits).

Canadian Market Expansion

The collaboration with Pasqua First Nation and Apeiron Resources is expected to position Hillcrest to accelerate market penetration across multiple Canadian sectors. PFN brings established relationships in Saskatchewan's industrial, military and resource sectors, while Apeiron's expertise in Indigenous business development and government funding programs accelerates access to capital and market opportunities. The Pasqua First Nation Group of Companies ("PFNGC") holds opportunities such as PRO Metal, a subsidiary focused on metal fabrication and manufacturing, creating potential synergies for future Canadian manufacturing of ZVS products.

Indigenous-led collaborations have become increasingly central to Canada's clean energy infrastructure expansion, with Indigenous communities now participating in nearly 20% of the country's clean electricity infrastructure development (Source: Environment and Climate Change Canada, 2025). The Seven Stars Energy Project, in which PFN is a partner alongside Enbridge and five other Indigenous partners, will produce emissions-free power for over 100,000 Saskatchewan homes when operational in 2027.

Automotive Sector Advancement

Hillcrest continues to advance multiple pathways to monetize its ZVS technology in the automotive sector. The Company is progressing in joint development and licensing opportunities with several established industry players. The Company's Automotive Center of Excellence in Germany, operated through its collaboration with Systematec GmbH, continues to support these ongoing efforts.

Market Opportunity and Technology Advantages

The data center power market is projected to reach $50 billion by 2030 (Source: MarketsandMarkets, Data Center Power Market via PR Newswire), driven by AI infrastructure expansion requiring up to 200kW per rack with ultra-low EMI and high reliability requirements. Battery energy storage systems in the 100kW to 1MW range represent a market projected at over $100 billion by 2030 (Source: Battery Energy Storage System Market Research Reports), requiring dynamic grid response capabilities and superior efficiency. Emergency power systems represent an $18 billion market by 2030 (Source: Emergency Power System Market Research Reports), while portable and mobile power applications over 100kW represent more than $10 billion in annual market opportunity (Source: Portable/Mobile Power Market Research Reports) across remote operations, construction, military, and emergency response applications.

The Company's ZVS technology delivers performance advantages that create competitive differentiation. Superior efficiency exceeding 99% compares favorably to current inverters on the market operating at 96-98% efficiency. Ultra-low electromagnetic interference addresses critical requirements in sensitive applications like data centers and reduces filtering and shielding requirements across many applications. Enhanced power quality through higher switching frequencies enables cleaner waveforms with lower total harmonic distortion, while advanced power density through the elimination of switching losses enables more compact installations with up to 50% capacitor and 60% filter size reductions.

Path Forward

Hillcrest is well positioned with the financial resources to execute on near-term commercialization priorities. The strategic investment from Pasqua First Nation demonstrates confidence in both the technology and the collaboration structure. The pursuit of additional operating capital through government grants and qualified investment entities creates additional funding pathways to support commercialization activities.

Three key factors differentiate the Company's position as it enters 2026. First, proven technology backed by extensive validation that delivers measurable performance advantages across multiple applications. Second, diverse market access spanning automotive, data centers, renewable energy, and industrial applications reduce dependence on any single sector while creating multiple pathways to revenue generation. Third, strategic collaborations from the Indigenous-led initiative with Pasqua First Nation and Apeiron Resources to automotive and grid sector relationships globally accelerate the path from technology to revenue.

The global power conversion market is experiencing convergent growth drivers through electrification mandates, AI infrastructure buildout, renewable energy deployment, and industrial decarbonization. Hillcrest's ZVS technology sits at the intersection of all four trends, positioning the Company to capitalize on multiple market opportunities as these sectors continue their rapid expansion.

"We're not just ready for 2026-we're positioned to lead," concluded Currie. "Thank you to our shareholders, partners, and team members for your continued support and dedication. Together, we're building the power conversion standard for the next generation of clean energy infrastructure."

Other Updates

The Company also announces the grant of 7,583,333 restricted shares units of the Company ("RSUs") to several executives of the Company. The RSU's are being granted in relation to performance in 2024 and 2025 performance. The RSUs and any underlying common shares in the capital of the Company are subject to a four month hold pursuant to the policies of the Canadian Securities Exchange.

About Pasqua First Nation

Pasqua First Nation is a Treaty First Nation in Saskatchewan. PFN has established a wholly owned entity, Pasqua First Nation Group of Companies (PFNGC), through which it conducts various business investments and economic development activities. PFNGC's portfolio includes PRO Metal, a subsidiary focused on metal fabrication and manufacturing.

PFN is also actively involved in renewable energy development, including participation in the Seven Stars Energy Project, a 200-megawatt wind energy initiative being developed in partnership with Enbridge and five other Indigenous partners. The project, targeted to be operational in 2027, will produce emissions-free power for over 100,000 Saskatchewan homes and represents significant Indigenous ownership and participation in clean energy infrastructure.

About Apeiron Resources Ltd.

Apeiron Resources Ltd. is a Métis, First Nation, and Native American owned corporation and Certified Indigenous Business driven by a single purpose: to build stronger communities through sustainable socio-economic partnerships. Rooted in their Nations, they invest time, resources, and passion into volunteer leadership, community sponsorships, and capacity-building initiatives that empower citizens and honours cultural heritage.

Through Apeiron's family of companies, they secure federal and provincial grants, provide fuel solutions, corporate indigenous governance, deliver skills training, and forge trust-based relationships between industry and Indigenous Nations. By connecting non-Indigenous organizations with authentic inclusion opportunities, they help the energy sector and beyond engage meaningfully with First Nation, Métis, and Native American tribes.

Every project they undertake reflects cultural values, fosters economic empowerment, and delivers generational impact. Together with their partners, they create lasting change by bringing employment, training, and economic growth back to communities while guiding their partners in reconciliation to achieve more.

About Hillcrest Energy Technologies

Hillcrest Energy Technologies is a Canadian 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/

CONTACT INFORMATION

FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements."

Forward-looking statements in this press release include, but are not limited to, statements regarding: the expected benefits and opportunities arising from the collaboration with PFN and Apeiron; the formation and operation of NEWCO; the commercialization and potential manufacturing of ZVS products in Canada; market opportunities in various sectors including data centers, energy storage, and renewable energy; the Company's product development timeline; the completion of prototype development and customer demonstrations; potential revenue generation; and the use of proceeds from the financing.

Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to the formation and operation of NEWCO; risks related to obtaining necessary regulatory approvals and financing; risks related to the successful development and commercialization of the Company's technology; risks related to market acceptance of the Company's products; political and regulatory risks; risks related to the maintenance of stock exchange listings; competition from other technologies and products; and other risks and uncertainties related to the Company's business.

Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances, except as required by law. Actual events or results could differ materially from the Company's expectations or projections.

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