Mr. Jeffrey Allison reports

HTC EXTRACTION SYSTEMS ANNOUNCES CLOSING OF PARTIAL SETTLEMENT OF SUBSIDIARY DEBT.

HTC Purenergy Inc.'s wholly owned subsidiary, KF Hemp Corp. (HempCo), has closed the partial settlement of debt agreement entered into with KF Kambeitz Farms Inc. This transaction has been approved by the shareholder and the board of directors of HempCo and the TSX Venture Exchange.

HempCo was indebted to Farms in the amount of $4,206,660. HempCo recently communicated to Farms, an arm's-length creditor and secured party, that it is unable to settle the indebtedness, when due. As a result, on May 9, 2023, HempCo and Farms entered into a partial debt settlement agreement, pursuant to which HempCo settled $1.2-million of its indebtedness, by transferring the right, title and interest of all the hemp-related property and assets of HempCo to Farms, effective Dec. 31, 2022, with the balance of the indebtedness to be payable in full on Oct. 31, 2025. HempCo's indebtedness to Farms has now been reduced to $3,006,660.

We seek Safe Harbor.