Mr. Raveel Afzaal reports

NEXT HYDROGEN REPORTS Q1 2023 FINANCIAL RESULTS

Next Hydrogen Solutions Inc. has released its financial results for the first quarter ended March 31, 2023.

"Our cell performance improvement program is delivering significant dividends which, combined with our unique cell design architecture, is pointing to a very compelling product-market fit for economical green hydrogen production at scale," said Raveel Afzaal, president and chief executive officer of Next Hydrogen. "The focus for 2023 is to (1) launch our second-generation product line with better energy efficiency, lower cost and improved reliability, (2) demonstrate multi-MW [megawatt] production from our second-generation product line in a market application, and (3) demonstrate market traction for our product line with our strategic partners. We are well capitalized to achieve these objectives given our balance sheet and recent government grant."

Q1 2023 financial highlights:

• Cash balance was $19.4-million as of March 31, 2023, compared with $22.1-million as of Dec. 31, 2022;
• Revenue was $44,169 for the three-month period, compared with $40,795 for the same period in the previous year;
• Net loss and comprehensive loss was $3.4-million for the three-month period, compared with a loss of $3.7-million for the same period in the previous year.

Management is also proud to highlight a number of recent developments that demonstrate significant recent progress:

• The company has been awarded $5.1-million from Sustainable Development Technology Canada (SDTC) toward the development and demonstration of the company's next-generation electrolysis technology. The SDTC project with a budget of over $12-million will run to early 2025, resulting in the launch of a second-generation product line with cost and performance improvements, and a third-generation larger-scale product line with further cost and performance improvements. With the launch of these products, Next Hydrogen will be well positioned to support the needs of its customers for both near-term market demonstrations and commercial large-scale green hydrogen systems. The payment for the first milestone has been received in Q1 2023.
• Further, Next Hydrogen has secured five blue-chip industry partners and received letters of commitment totalling $1.5-million toward its product development road map. These partners include end users, suppliers and channel partners to ensure strong product-market fit, and positions the company for high-quality revenue generation opportunities.
• Leveraging the company's test infrastructure, it achieved significant product development milestones which showcased the compelling features resulting from its unique design, and which were proved out using the company's bench-scale test infrastructure. Next Hydrogen achieved cell performance that is enabling for full system energy efficiency of 55 kWh/kg (kilowatt-hours per kilogram) (previously 65 kWh/kg) at a current density of one amp/square centimetre (cm) (which is the 2030 target set by the European road map) in its bench-scale test units, with a turn down ratio of well below 10 per cent. This highlights a very compelling product-market fit for integration with renewables to produce green hydrogen economically. The company commissioned a pilot-scale version (which uses full-size parts) of its second-generation electrolyzer in the fourth quarter. It is well positioned to assess the product performance in 2023.
• The company was the recipient of the Innovation in Hydrogen Technology award at the Canadian Hydrogen Convention in Edmonton, Alta., in April, 2023. This is the largest hydrogen event in North America with over 1,000 conference delegates.
• In partnership with Black & Veatch, the company has completed a concept design for 20 MW (megawatt) solution. Next Hydrogen's unique hydrogen technology expertise and Black & Veatch's vast customer network and engineering leadership will offer an integrated hydrogen solution to clients worldwide.

For a more detailed discussion of Next Hydrogen's first quarter results, please see the company's financial statements and management's discussion and analysis (MD&A), which are available on the company's website or on SEDAR.

In addition, to better understand the company's achievements from 2022 and the outlook for 2023, please refer to the chief executive officer letter included in the 2022 year-end MD&A.

Management cease trade order update

The company is pleased to announce that as the company's first quarter interim financial report and management's discussion and analysis as at and for the period ended March 31, 2023, have been filed on time, the company will withdraw its application to the BCSC (British Columbia Securities Commission) for a management cease trade order.

Cease trade order update

On May 1, 2023, the company became subject to a cease trade order (CTO) due to a delay in filing the year-end financial documents within the prescribed timelines. The company filed its year-end financial documents for the year ended Dec. 31, 2022, on May 17, 2023. On May 18, 2023, the applicable securities regulators issued a revocation order with respect to the CTO. Since the revocation order was granted, the company has shared the necessary information with the TSX Venture Exchange and expects a resolution to resume trading of the company's securities shortly.

About Next Hydrogen Solutions Inc.

Founded in 2007, Next Hydrogen is a designer and manufacturer of electrolyzers that use water and electricity as inputs to generate clean hydrogen for use as an energy source. Next Hydrogen's unique cell design architecture, supported by 40 patents, enables high-current density operations and superior dynamic response to efficiently convert intermittent renewable electricity into green hydrogen on an infrastructure scale. Following successful pilots, Next Hydrogen is scaling up its technology to deliver commercial solutions to decarbonize transportation and industrial sectors.

We seek Safe Harbor.