Mr. Francois Byrne reports

HYBRID POWER SOLUTIONS FILES AMENDED LIFE OFFERING DOCUMENT AND PROVIDES UPDATE ON FINANCING

Hybrid Power Solutions Inc. has filed an amended and restated LIFE (listed issuer financing exemption) offering document effective Dec. 5, 2025.

The amended offering document related to the offering can be accessed under the company's SEDAR+ profile and on the company's website. Prospective investors should read this amended offering document before making an investment decision.

Under the amended offering document, the company announces its intention to complete a non-brokered private placement of between a minimum of 16,666,667 and up to 33,333,333 units at a price of six cents per unit for gross proceeds of a minimum of approximately $1-million and up to approximately $2-million.

Each unit will consist of one common share in the capital of the company and one whole common share purchase warrant. Each whole warrant will be exercisable to acquire one share at an exercise price of 10 cents per share for a period of 24 months from the date of issuance, subject to the following acceleration right. If, at any time after the date of issuance of the warrant, the closing price of the company's common shares on the Canadian Securities Exchange (or such other stock exchange on which the common shares may be traded from time to time) is at or above 20 cents per share for a period of 20 consecutive trading days, in which event the company may, within five days of the triggering event, accelerate the expiry date of the warrants by giving notice thereof to the holders of the warrants, by way of news release, and in such case the warrants will expire on the first day that is 30 calendar days after the date on which such notice is given by the company announcing the triggering event.

Certain insiders of the company may acquire units in the offering. Any participation by insiders in the private placement would constitute a related party transaction"as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. However, the company expects such participation would be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value of the units subscribed for by the insiders, nor the consideration for the units paid by such insiders, would exceed 25 per cent of the company's market capitalization.

Hybrid will use the net proceeds of the offering for company operations, product and company research and development, sales growth initiatives, marketing, and general corporate purposes and administrative expenses.

Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106, Prospectus Exemptions, the units will be offered for sale to purchasers resident in the provinces and territories of Canada except for Quebec, in the United States and offshore jurisdictions pursuant to the listed issuer financing exemption under Part 5A of NI 45-106, as amended by Coordinated Blanket Order 45-935, Exemptions from Certain Conditions of the Listed Issuer Financing Exemption. The shares and the warrants underlying the units, and the shares underlying the warrants, if exercised, are expected to be immediately freely tradeable in accordance with applicable Canadian securities legislation if sold to purchasers resident in Canada. All securities issued pursuant to the listed issuer financing exemption will not be subject to a hold period in Canada in accordance with applicable Canadian securities law.

The company may pay finders' fees on a portion of the offering, subject to applicable securities legislation and CSE polices.

Completion of the offering is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the Canadian Securities Exchange.

About Hybrid Power Solutions Inc.

Hybrid Power Solutions is a Canadian clean energy innovator listed on the Canadian Securities Exchange under the symbol HPSS. The company specializes in developing portable power systems that eliminate the need for fossil fuels in off-grid and remote applications. With a focus on environmental responsibility and technological innovation, Hybrid Power Solutions is committed to leading the clean energy transition.

We seek Safe Harbor.