Mr. Jeffrey Allison reports

HTC EXTRACTION SYSTEMS ANNOUNCES CLOSING OF OPTION AND ASSET SALE

As an update to the May 15, 2023, press release, HTC Purenergy Inc. (doing business as HTC Extraction Systems) has closed the sale of the option agreement, selling its rights under the Kase Farma Inc. asset sale agreement.

In addition, HTC Purenergy has entered into an asset sale agreement dated May 31, 2023, with KF Aggregates Recycling Inc., an arm's-length party to HTC Purenergy. Pursuant to the ASA, HTC Purenergy is selling certain extraction equipment to Aggregates for the purchase price of $585,400.

Aggregates provided certain services and products, in the ordinary course of business, to HTC Purenergy, which HTC Purenergy has failed to make payment for, and therefore is indebted to Aggregates. Pursuant to the APA, HTC Purenergy will transfer the assets at the fair market value of approximately $585,400. The purchase price for the assets will be paid as follows: (i) by the set-off of the indebtedness; (ii) the payment of $50,000 in cash at closing; and (iii) the payment of the balance of $100,000 over 12 months.

The proposed transaction has been approved by the board of directors, and no finder's fee is payable in respect thereto.

We seek Safe Harbor.