Mr. Raveel Afzaal reports

NEXT HYDROGEN REPORTS Q3 2023 FINANCIAL RESULTS

Next Hydrogen Solutions Inc. has released its financial results for the third quarter ended Sept. 30, 2023.

"The focus for 2023 is to: (1) achieve significant improvement in our product line; (2) demonstrate our second-generation product line; and (3) generate significant market traction," said Raveel Afzaal, president and chief executive officer of Next Hydrogen. "We are well capitalized to achieve these objectives, which will put us in a very competitive position for growth in 2024. The recently announced improvement in cell performance, new blue-chip industry partners such as Casale, GE and a $7.7-million agreement for a nuclear application are helping us advance strongly towards our 2023 objectives."

Q3 2023 financial highlights:

• Cash balance was $11.9-million as of Sept. 30, 2023, compared with $15.9-million as of June 30, 2023;
• Revenue was $53,399 and $143,095 for the three-month period and nine-month period, compared with $74,457 and $160,078, respectively, in the previous year;
• Net loss and comprehensive loss were $2.33-million and $8.67-million for the three-month period and nine-month period, respectively, compared with a loss of $3.9-million and $10.98-million, respectively, in the previous year.

Management is proud to highlight several recent milestones that demonstrate significant recent progress:

• Next Hydrogen has met its energy efficiency targets cell performance of 1.90 volts per cell at one ampere per square centimetre and 70 C for its new second-generation (Gen2) water electrolyzer technology, which exceeded the recently reported U.S. Department of Energy (DOE) technical targets status for energy efficiency. The Gen2 performance achievement is the beginning of the company's quest to achieve industry-leading performance and is targeting further improvement in 2024.
• The company has entered into a $7.7-million agreement for a project involving a specialized nuclear application. Under the agreement, Next Hydrogen will conduct design engineering (phase 1) and subsequently provide the electrolyzer needed (phase 2) for the project. A $5-million purchase order has been received for phase 1, which is expected to take place during 2024, with a follow-on order of $2.7-million planned for phase 2, with electrolyzer delivery expected to occur in 2025. This project will position the company to secure further contracts from the nuclear fusion industry and is very well aligned with its product roadmap for large-scale green hydrogen production.
• Next Hydrogen and Casale SA have signed a memorandum of understanding to develop green ammonia and methanol systems that integrate Next Hydrogen's electrolysis technology to offer a bundled package to customers. Under this agreement, the companies will bring together their collective experience and capabilities to accelerate and scale up green ammonia and methanol plants connected to renewable energy sources. This collaboration provides a compelling pathway to producing clean, zero-emission ammonia and methanol from green renewable energy power sources.
• Next Hydrogen will be receiving advisory services and up to $750,000 in research and development financing from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) toward the development and demonstration of the company's next-generation products. This will further help the company accelerate its product road map and its mission of driving large-scale adoption of green hydrogen solutions to decarbonize the global economy.
• 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.

For a more detailed discussion of Next Hydrogen's third quarter results, please see the company's financial statements and management discussion and analysis, 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 discussion and analysis).

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.

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