An anonymous director reports

TAIGA ANNOUNCES FOURTH QUARTER AND FULL YEAR 2023 RESULTS

Taiga Motors Corp. has released its financial and operating results for the year ended Dec. 31, 2023.

Taiga reported $16.1 million from the sale of 592 vehicles during the full year of 2023 and $6.1 million from the sale of 242 vehicles during the fourth quarter ended Dec. 31, 2023. Nomad snowmobile production started in November 2023 for the 2023/2024 winter season.

During the quarter, Taiga continued to build its sales channels and commenced distribution to international markets in South America and the U.A.E. alongside the continued development of its Taiga Service Provider ("TSP") network to 40 locations across Canada and the United States as of Dec. 31, 2023. To further accelerate its market penetration and better support customers in their local markets, the company intends to further evolve its omnichannel model, by expanding sales through dealers alongside distribution and direct to customer sales.

Fourth Quarter 2023 Operational Updates

• Produced 417 vehicles, of which 243 were Orca Performance watercraft and 174 were Nomad snowmobiles.
• Sold and delivered 242 vehicles, including 119 Orca PWC and 123 Nomad snowmobiles.
• Pre-order level stood at 2,442 as at Dec. 31, 2023, as the company focuses on maintaining a pre-order level and sales pipeline in line with its production plan.1
• Taiga Service Provider (TSP) network growth in 2023, with 30 TSPs onboarded as of Dec. 31, 2023, covering 40 locations in North America.
• Initiated international PWC distribution in the U.A.E. and in South America as well as snowmobile deliveries across multiple fleet operators in Sweden.
• Completed production launch on optimized high volume Orca Performance PWC and Nomad snowmobile product platforms achieving over 50 unit per week production on both product lines.
• Launched the new Cloud Connected Mobile App, enhancing customers' experience and further solidify Taiga as a technology leader in the off-road industry.

Fourth Quarter 2023 Financial Highlights (All amounts in Canadian dollars unless indicated otherwise)

• Recorded revenue of $6.1 million during the fourth quarter of 2023, compared to $1.4 million in the fourth quarter of 2022.
• Recorded Cost of Sales of $15.6 million during the fourth quarter of 2023, compared to $17.1 million in the fourth quarter of 2022.
• Research & Development (R&D) expense (net of tax credits) increased to $3.1 million in the fourth quarter of 2023 from $2.0 million in the fourth quarter of 2022.
• General & Administration (G&A) expense increased to $6.2 million from $4.9 million compared to the fourth quarter of 2022.
• Sales & Marketing (S&M) expense of $1.0 million remained relatively stable with no change compared to the fourth quarter of 2022.
• Net loss for the period decreased to $22.2 million compared to $23.8 million in the fourth quarter of 2022.

Full-Year 2023 Financial Highlights (All amounts in Canadian dollars unless indicated otherwise)

• Revenue of $16.1 million recorded during 2023, compared to $3.2 million recorded in 2022.
• Cost of Sales of $43.0 million recorded during 2023, compared to $29.2 million reported in 2022.
• Research & Development (R&D) expense (net of tax credits) increased to $15.4 million from $9.4 million compared 2022.
• General & Administration (G&A) expense increased to $20.9 million from $19.8 million in 2022.
• Sales & Marketing (S&M) expense increased to $5.1 million from $4.3 million in 2022.
• Net loss for 2023 increased to $72.5 million compared to $59.5 million in 2022.
• Additions to Property and Equipment decreased to $11.4 million compared to $12.1 million in 2022.
• Cash and cash equivalents of $5.3 million as at Dec. 31, 2023, compared to $22.8 million as at Dec. 31, 2022.
• Inventory increased to $33.2 million as at Dec. 31, 2023, compared to $20.8 million as at Dec. 31, 2022.

2024 Priorities

After making major investments in 2022-2023 on new product launches and to support the company's rapid production ramp-up, Taiga is now focused on driving cost efficiency throughout the business and on deploying its omnichannel sales model to support sustainable growth. In view of the current economic context combined with an unusually mild winter that negatively impacted the snowmobile business, Taiga is in the process of taking several steps to adjust its operations to better align seasonal production timing with dealer inventory levels. As such, the company announced today that it is temporarily pausing its vehicle production and temporarily reducing its workforce accordingly by approximately 70 people. In addition, Taiga is committed to further reducing its operating burn in 2024 and will continue to adjust the scale of its operations to the current market reality while maintaining the company's focus on expanding sales.

Furthermore, given the transition period in which Taiga currently finds itself as well as the company's current overall operational, market and financial circumstances, the company has decided that it does not currently intend to provide any forward-looking guidance, production or sales outlook in respect of the fiscal year ending Dec. 31, 2024 nor for any subsequent period.

Investors should read in their entirety the company's 2023 annual disclosure documents filed on April 2, 2024, including but not limited to the 2023 Annual MD&A and 2023 Annual Information Form.

Taiga will not be hosting a conference call to discuss its fourth quarter and full year 2023 results. Analysts and investors may contact Taiga's Chief Financial Officer by writing to eric.bussieres@taigamotors.ca.

About Taiga

Taiga (TSX: TAIG) is a Canadian company reinventing the powersports landscape with breakthrough electric off-road vehicles. Through a clean-sheet engineering approach, Taiga has pushed the frontiers of electric technology to achieve extreme power-to-weight ratios and thermal specifications required to outperform comparable high-performance combustion powersports vehicles. The first models released include a lineup of electric snowmobiles and personal watercraft to deliver on a rapidly growing demand from recreational and commercial customers who are seeking better ways to explore the great outdoors without compromise. For more information, visit www.taigamotors.com

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