Mr. Frank Carnevale reports

ALKALINE FUEL ANNOUNCES INCREASE IN ASSETS AND REVENUES IN FILING OF SECOND QUARTER 2022 FINANCIAL STATEMENTS AND MD&A

Alkaline Fuel Cell Power Corp. has filed its financial and operating results for the three- and six-month periods ended June 30, 2022. Select financial and operational information is outlined below and should be read in concert with Alkaline Fuel's consolidated financial statements and management's discussion and analysis for the second quarter and first half 2022, available on SEDAR and on Alkaline Fuel's website.

"AFCP is diversifying its investments into more immediate revenue-generating investments such as its CHP assets and improving its ability to bring its fuel cells to market, quicker," commented Frank Carnevale, chief executive officer. "Investors want a more derisked investment platform, and we're on our way to delivering."

Q2 2022 financial highlights

Alkaline Fuel realized significant progress and advancements during the second quarter of 2022, including the following highlights:

• Approximately 5-per-cent increase in total assets of over first two quarters of 2022 from $8,968,000 to $9,413,000;
• Achieved a 71-per-cent reduction in year-over-year quarterly operating expenses compared with Q2 2021, positioning Alkaline Fuel to benefit from a much lower monthly cash burn rate;
• Recorded a significantly lower net loss of $1.4-million in Q2 2022 compared with a net loss of $5.0-million during the same period in 2021, primarily due to a decrease in stock-based compensation with partial offsets attributable to increased activities during 2022;
• Initial preliminary revenue generation of $46,500 from the partial quarter from the PWRR Flow business and the corresponding approximately $1-million in equipment value from operating entity;
• Exited the quarter with working capital of $2.2-million and cash on hand of $3.1-million compared with working capital of $6.1-million and cash on hand of $5.9-million at Dec. 31, 2021.

Outlook

As reported on June 20, 2022, the company provided an outlook for the balance of 2022 and over the longer term. The company will continue to update on the success over the coming months. Outlined below are a few of the objectives.

Corporate initiatives:

• Enhance financial flexibility by exploring opportunities to leverage the use of flow-through shares to minimize Alkaline Fuel's equity requirements for continuing development and advancement of CHP projects;
• Identify, nurture and execute on strategic acquisitions of additional attractive energy assets, earnings-positive service companies in the power and energy space, and/or synergistic clean technology assets or companies;
• Source and secure working capital for acquisitions and growth capital, as may be required.

Continuing growth of PWWR Flow Streams:

• Expand the company's asset installation base leveraging its continuing revenue and earnings generated through PWWR Flow as it continues to develop the $50-million worth of PWWR Flow projects in its pipeline over the next two years.

Continue to progress commercialization of Fuel Cell Power NV:

• Achieve next critical milestone on the path to achieving a fully functioning four-kilowatt fuel cell system within a laboratory configuration;
• Further accelerate and ramp up efforts to bring fuel cells to market, globally;
• Develop and implement strategies to establish large-scale and cost-effective fuel cell manufacturing capabilities;
• Secure additional strategic partnerships for the piloting and deployment of fuel cells in North America.

About Alkaline Fuel Cell Power Corp.

Alkaline Fuel is a diversified investment platform, developing affordable, renewable and reliable energy assets and cleantech. It brings power to the people today, combining a stable revenue stream with a future-forward vision to commercialize its advanced hydrogen fuel cell technology to meet the massive global market need and ultimately generate compelling returns for investors.

Alkaline Fuel operates through two global entities: Fuel Cell Power, a wholly owned subsidiary in Belgium, and PWWR Flow, an Alkaline Fuel brand in Canada:

• Fuel Cell Power is focused on the development, production and commercialization of microcombined heat and power based on advanced alkaline fuel cell technology that generates zero carbon dioxide emissions. Fuel Cell Power is working through milestones to deliver a commercialized alkaline fuel cell in 2024.
• PWWR Flow is focused on the development, ownership and operations of combined heat and power assets. PWWR Flow assets deliver efficiency improvements of over 20 per cent with reduced costs to customers in multiresidential and commercial applications. PWWR Flow has contracted existing CHP assets in Toronto, Canada, and has an additional pipeline of potential contracts valued at over $50-million currently in development.

Alkaline Fuel is well positioned to deliver power to the people in the global energy transition while offering a diversified cleantech growth platform for investors.

Common shares are listed for trading on the NEO Exchange under the symbol PWWR, on the OTC Venture Exchange OTCQB under the symbol ALKFF, and on the Frankfurt Exchange under the symbols 77R and WKN A3CTYF.

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