Vancouver, British Columbia--(Newsfile Corp. - December 31, 2025) - Hillcrest Energy Technologies Ltd. (CSE: HEAT) (FSE: 7HI) ("Hillcrest" or the "Company"), is pleased to provide updates with respect to its previously announced offering (the "Offering") of units of the Company (the "Units") as outlined in its news releases of October 14, 2025 and October 28, 2025.

The Company expects that it will close the second tranche of the Offering (the "Second Tranche") in early January 2026, which will include the strategic investment from Pasqua First Nation in the amount of $3,000,000.

Additionally, the Company originally announced that the Offering would be for an aggregate amount of up to $7,200,000 comprised of: (i) up to $3,900,000 in proceeds to the Company to be raised via the issuance of Units at a price of $0.09 per Unit on a private placement basis (the "Cash Offering") and (ii) up to $3,300,000 in debt to be settled through the issuance of Units on the same terms as in respect of the Cash Offering (the "Debt Offering"). The Company now anticipates increasing the amount of the Cash Offering to be an aggregate of $4,400,000 and that the Debt Offering will be limited to $2,850,000. This updated total includes an anticipated increase of the total offering amount from $7,200,000 to $7,250,000 due to oversubscriptions in respect of the Cash Offering.

The closing of the Second Tranche of the Offering is expected to trigger Company security holder approval requirements pursuant to Section (2)(a)(i)(2) of Policy 4 of the Canadian Securities Exchange's policies ("CSE Policy 4"), due to the potential issuance of over 100% of the total number of securities currently outstanding of the Company as result of the aggregated Offering.

As previously disclosed in the press release of the Company dated October 28, 2025, the Company will rely on the financial difficulties exemption under Section (2)(b) of CSE Policy 4 such that it will not be required to seek or obtain Company security approval for the Offerings (the "Exemption"). In this regard, the audit committee of the Company, which is composed solely of independent directors of the Company, had determined that: (i) the Offering is in the best interests of the Company, (ii) the Offering is reasonable in the circumstances, and (iii) it is not feasible to obtain Company security holder approval or to complete a rights offering to the Company's existing security holders on the same terms as the Offering.

For further details regarding the Offering and the closing of the first tranche of the Offering, please refer to the press releases of the Company dated October 14, 2025 and October 28, 2025, respectively.

It is intended that the proceeds from the Offering will be used for further development of Hillcrest's ZVS technology, marketing of its products to potential customers, investor relations activities, retirement of existing accounts payable, and general working capital.

All securities issued in connection with the Offering, are subject to a statutory four month and one day hold period, in accordance with the policies of the Canadian Securities Exchange and applicable Canadian securities laws.

About Hillcrest Energy Technologies Ltd.

Hillcrest Energy Technologies is an energy technology company focused on providing advanced power conversion technologies and digital control systems for next-generation powertrains and grid-connected renewable energy systems. From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future. Hillcrest is publicly traded on the CSE under the symbol "HEAT," on the OTCQB Venture Market as "HLRTF" and on the Frankfurt Exchange as "7HI". For more information, please visit: https://hillcrestenergy.tech/.

CONTACT INFORMATION

THE SECURITIES OF THE COMPANY REFERRED TO IN THIS PRESS RELEASE HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. ACCORDINGLY, THE SECURITIES OF THE COMPANY MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES UNLESS REGISTERED UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. THIS NEWS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF ANY OFFER TO BUY ANY SECURITIES OF THE COMPANY IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL.

FORWARD-LOOKING INFORMATION

This press release contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements". Forward-looking statements in this press release include, but are not limited to, the closing of the Second Tranche, anticipated proceeds to be raised from the Offering, composition of proceeds to be raised from the Cash Offering and the Debt Offering, respectively, and the expected use of proceeds from the Offering. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to receiving all regulatory approvals, including but not limited to approval from the Canadian Securities Exchange with respect to the Offerings, risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; political and regulatory risks; risks related to the maintenance of stock exchange listings; and other risks and uncertainties related to the Company's business detailed elsewhere in the Company's disclosure record. Additional information on these and other risk factors can be found in the Company's continuous disclosure documents available under its profile on SEDAR+ at www.sedarplus.ca.

Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections.

CAUTIONARY STATEMENT

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES

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