Mr. Cliff Grandison reports

ALASKA HYDRO ANNOUNCES TRANSITION TO SEMI-ANNUAL FINANCIAL REPORTING

Alaska Hydro Corp. intends to adopt the policies outlined in the semi-annual reporting (SAR) pilot program utilizing the exemptions provided under Coordinated Blanket Order 51-933, Exemptions to Permit Semi-Annual Reporting for Certain Venture Issuers.

The blanket order is a Canadian securities regulators pilot program that allows eligible venture issuers to voluntarily move from quarterly to semi-annual financial reporting. The company's fiscal year ends on Dec. 31. Under the SAR pilot program, the company will be exempt from filing interim financial reports and related management discussion and analysis (MD&A) for its first and third quarters. Accordingly, the company will not file interim financial statements or related MD&A for the nine-month period ending Sept. 30, 2026, and all subsequent periods ending March 31 and Sept. 30.

The company will continue to file audited annual financial statements (due within 120 days of Dec. 31) and six-month interim financial reports and related MD&A (due within 60 days of June 30). The company remains committed to timely disclosure and will continue to report all material changes and significant developments in accordance with National Instrument 51-102, Continuous Disclosure Obligations.

The company confirms that it meets the eligibility criteria under the blanket order. The company has determined that participation in the SAR pilot program will ease the administrative and financial burden associated with quarterly reporting and is consistent with the objectives of the blanket order.

We seek Safe Harbor.