An anonymous director reports

EXRO PROVIDES UPDATE ON FACILITY MILESTONES

Exro Technologies Inc. has provided a further update on the satisfaction of the near-term strategic milestones established in connection with the company's $30-million (U.S.) credit facility announced on May 16, 2025.

Postponement of debenture security

As the company announced in its May 16, 2025, news release, advances under the facility require Exro to meet various milestones, one of which was either: (1) the postponement of security from a requisite majority of the company's $15-million of debentures issued pursuant to an indenture dated Dec. 30, 2022; or (2) the redemption of the convertible debentures for Exro shares.

The Dec. 30, 2022, indenture governing the convertible debentures has been amended to provide that the lender under the facility has a first-priority security interest on substantially all of the assets of the company, and the convertible debentures have a second-priority security position, ranking pari passu with previously issued secured notes of the company in the aggregate amount of $70,832,830 (U.S.). In addition, the indenture was amended to include a 120-day standstill period in respect of the enforcement of certain rights by the holders of the convertible debentures on the occurrence of an event of default under the indenture. The amendments to the indenture were approved by an extraordinary resolution of over 66-2/3 per cent of the principal outstanding amount of the convertible debentures and are contained in an amended and restated indenture dated July 11, 2025, a copy of which has been filed under the company's profile at SEDAR+.

Exro thanks the convertible debenture holders who supported the company in this initiative.

Strategic review

The strategic review process described in the company's May 16, 2025, press release remains active and is progressing positively. The company has received an extension of the facility milestone of demonstrating active engagement with three credible strategic partners from July 15 to July 31, 2025.

About Exro Technologies Inc.

Exro Technologies, expanded through the strategic acquisition of SEA Electric, is a leading clean technology company that has developed new-generation power control electronics. Its innovative suite of solutions, including Coil Driver, Cell Driver and SEA-Drive, expands the capabilities of electric motors and batteries, and offers original equipment manufacturers a comprehensive e-propulsion solution with unmatched performance and efficiency. Exro is reshaping global energy consumption, accelerating adoption toward a circular electrified economy by delivering more with less -- minimum energy for maximum results.

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