Mr. Lionel Kambeitz reports

HTC PROVIDES UPDATE ON STATUS OF FINANCIAL STATEMENTS

HTC Purenergy Inc. has provided an update to its previously announced management cease trade order (the MCTO) granted by the financial and Consumer Affairs Authority of Saskatchewan (the FCAA) under National Policy 12-203 -- Management Cease Trade Orders.

Pursuant to the MCTO, the company's chief executive officer, Lionel Kambeitz, and the company's chief financial officer, Jacelyn Case, may not trade in securities of the company until such time as the company files its annual audited financial statements, annual management's discussion and analysis, and related certifications for the year ended Dec. 31, 2021, and the FCAA revokes the MCTO.

The MCTO does not affect the ability of other shareholders to trade their securities.

The company has not yet filed the required documents, however the company is working diligently with its auditor and expects that the required documents will be filed as soon as possible. The required documents are being filed later than originally expected due to continuing internal delays with the company's auditor and acceptance of the TSX Venture Exchange for the company's transaction with Starling Brands Inc., announced in the company's press release dated Dec. 31, 2021. Until the exchange's acceptance has been granted, the company's auditor is unable to complete the audit of the financial statements which are among the required documents, since the assets sold under the transaction had been transferred prior to the completion of the year ended Dec. 31, 2021, which is the subject of the audit. The company is working with the company's auditor and the exchange to complete the transaction and accordingly the financial statements.

In addition to the late filing of the required documents, the company has not filed its interim financial statements, management's discussion and analysis, and related certifications the three-month financial period ended March 31, 2022, nor the six-month financial period ended June 30, 2022. The company expects to file the interim financial documents concurrently with the filing of the required documents on or before Sept. 30, 2022, subject to further unforeseen delays.

HTC also confirms that it intends to satisfy the provisions of NP 12-203 and issue biweekly default status reports for so long as HTC remains in default of the financial statement filing requirement, containing any material changes to the information in this release, all actions taken by HTC to remedy the default, particulars of any failure by HTC to fulfill these provisions, any subsequent defaults of HTC requiring a default announcement and any other material information concerning the affairs of HTC not previously disclosed.

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