Mr. Don Currie reports

HILLCREST ENTERS AI DATACENTER ECOSYSTEM

Hillcrest Energy Technologies Ltd. has entered a non-binding agreement in principle with the AI Hub of Innovation (AHI), a project of Agritech Haven LP.

The agreement dated July 20, 2026, advances Hillcrest's PCS1000 on two fronts: an operational BESS pilot at AHI's Alberta campus, and access to AHI's network of datacenter tenants, operators and technology vendors to evaluate the PCS1000 for 800-volt DC (direct current) sidecar power conversion.

Canada's AI data centre and energy storage infrastructure relies heavily on power conversion technology sourced from outside the country, consistent with Natural Resources Canada's assessment that Canada's electricity sector is highly import-dependent for critical components, with the domestic share of supply declining from 58 per cent (2018) to 52 per cent (2023). The PCS1000 -- built on Hillcrest's proprietary zero-voltage switching (ZVS) topology -- is designed to change that. Because the IP is entirely Canadian developed and Canadian owned, the technology and its economic returns remain in Canada -- an industrial sovereignty advantage that imported solutions cannot offer.

The agreement has two deliverables. The BESS pilot provides a real operational environment to validate PCS1000 round-trip efficiency and BMS integration -- a key step toward product certification. The data centre network access puts the PCS1000 in front of the operators and integrators building Canada's AI infrastructure, opening a commercial pathway that would otherwise take much longer to develop independently.

AHI will provide facility access for the BESS pilot and facilitate introductions to its datacenter tenant network, offering the PCS1000 where commercially aligned. AHI's participation -- including facility access and the allocation of engineering and campus resources -- is subject to execution of a definitive joint development agreement and confirmation of program funding. CleanPath Distribution Inc. -- Hillcrest's indigenous-led commercialization channel, majority owned by Pasqua First Nation No. 79 -- is a named party to the agreement, reflecting both companies' commitment to directing the economic benefits of Canadian energy technology to Canadian and Indigenous communities.

Don Currie, founder, director and chief executive officer of Hillcrest, stated:

"Canada is building AI infrastructure at scale, and the power conversion technology at its core should be Canadian owned. The BESS pilot gives us the real-world testing environment our development program requires. AHI's datacenter network puts us in front of the operators building that infrastructure. Together, these advance Canadian-developed technology into Canadian industrial capacity."

Sunny Sarpal, founder and chief executive officer, AI Hub of Innovation (a project of Agritech Haven LP), stated:

"AHI evaluates infrastructure technology across every layer of AI compute -- power, cooling, compute and networking. The Hillcrest ZVS PCS1000 warrants real-world testing, and we're pleased to provide the site and ecosystem connections to do that. The BESS pilot is the first step; introductions to our data centre tenants and integration partners are what take it to scale."

The case for Canadian power conversion

Power conversion sits at the core of energy storage and AI data centre infrastructure, and determines how efficiently, reliably and securely that infrastructure operates. Next-generation AI data centres are shifting to 800 V DC power architectures, an architecture formalized by the Open Compute Project (OCP). These architectures require a dedicated "sidecar" power rack to handle AC (alternating current) to 800 V DC conversion, a design that reduces losses, simplifies thermal management and improves rack-level power density.

The ZVS PCS1000 is the AC to 800 V DC conversion module for this sidecar architecture. It uses Hillcrest's proprietary zero-voltage switching topology and targets greater than 99-per-cent peak conversion efficiency, versus the 97 per cent to 98 per cent typical of conventional hard-switching systems. The IP is entirely Canadian developed and Canadian owned. These are design targets under active development; the PCS1000 is at the A-Sample stage and has not been validated in commercial deployment.

Agreement in principle: two deliverables

BESS pilot -- real-environment testing

The PCS1000 will be integrated with a confirmed BESS platform (130 kilowatts/250 kilowatt-hours/800 V nominal LFP) and deployed at AHI's Alberta campus, with deployment targeted for 2028 following bench validation under Hillcrest's parallel development program. Testing objectives include PCS1000 round-trip efficiency, system reliability and BMS integration in a live environment. This advances the PCS1000 from prototype toward the certification-ready stage required for commercial contracts.

Data centre ecosystem access

AHI will facilitate introductions to its data centre tenants, operators and technology vendors for evaluation of the PCS1000 as an 800 V sidecar power conversion module. AHI will offer the PCS1000 where commercially aligned.

CleanPath Distribution Inc.

CleanPath Distribution is Hillcrest's indigenous-led commercialization channel, operationalized in March, 2026. CleanPath is 75.5 per cent indigenous owned: Pasqua First Nation No. 79 holds 51 per cent, Apeiron Resources Ltd. -- an Alberta-based indigenous business -- holds 24.5 per cent, and Hillcrest Energy Technologies Operating Ltd. holds the remaining 24.5 per cent. Pasqua First Nation No. 79's majority ownership means the nation's economic returns scale directly with the commercial success of the ZVS platform -- aligning indigenous benefit with long-term technology performance. Both Hillcrest and AHI share a commitment to ensuring Canada's AI infrastructure buildout creates lasting economic participation for indigenous communities.

About ZVS PCS1000

The Hillcrest ZVS PCS1000 is a Canadian-developed and Canadian-owned, configurable bidirectional power conversion platform, currently at the A-Sample prototype stage, built on the company's proprietary zero-voltage switching topology. The same underlying platform can be customized and deployed across numerous applications -- including energy storage, microgrids and AI data centre sidecars -- targeting up to 250 kW at 480 V AC input with a DC operating range of 600 to 950 V. The PCS1000 is currently in the A-Sample prototype stage.

About AHI -- the AI Hub of Innovation (a project of AHLP)

The AI Hub of Innovation (AHI) is the sovereign AI infrastructure project of Agritech Haven (AHLP) -- a purpose-built, hydrogen-ready AI compute and data infrastructure campus under construction in Alberta. AHI is designed to scale from an initial 10 MW deployment to 30 MW in phase 1, with a phased buildout to 250-plus MW of on-site prime power and a pathway to one GW of AI compute capacity by 2035. AHI works with indigenous, industrial and technology partners -- including Pasqua First Nation No. 79 and CleanPath Distribution Inc.

About Hillcrest Energy Technologies

Hillcrest Energy Technologies is a Canadian clean technology company developing advanced power conversion technologies and digital control systems for next-generation energy applications, including AI data centres, energy storage, microgrids and electric-vehicle powertrains. The PCS1000 -- Hillcrest's newest product platform -- is Canadian developed and Canadian owned, currently in the A-Sample prototype stage.

We seek Safe Harbor.