Mr. Francois Byrne reports

HYBRID POWER SOLUTIONS SECURES $120,000 FROM ONTARIO'S CRITICAL INDUSTRIAL TECHNOLOGIES INITIATIVE TO ACCELERATE DEVELOPMENT OF HPS AIR

Hybrid Power Solutions Inc. has been awarded two grants from Ontario's Critical Industrial Technologies (CIT) initiative powered by the Ontario Centre of Innovation (OCI) to advance its next-generation portable power platform, HPS Air. In a growing roster of more than 329 CIT projects announced on March 2 by Minister Fedeli, Ontario is investing in the adoption and commercialization of critical technologies by industry including 5G, AI (artificial intelligence), blockchain, cybersecurity, quantum and robotics.

Resulting from the dual investment, Hybrid Power Solutions will receive:

• $20,000 through the CIT talent development internship (TDI) program, supporting expansion of technical talent directly contributing to HPS Air development;
• $100,000 through the CIT development and commercialization (DC) program, plus exclusive access to the uWaterloo-RoboHub powered by the Rogers CIT technology development site to support engineering, prototyping and commercialization work.

"We're excited and grateful to receive not one, but two program funding awards from the Critical Industrial Technologies initiative," said Francois Byrne, chief executive officer of Hybrid Power Solutions. "This backing accelerates our progress on HPS Air and supports the technical team driving this next leap forward in portable energy."

This commitment underscores strong provincial support in advancing clean-energy technology and strengthening Ontario's innovation ecosystem, with Hybrid leading the way.

"Ontario's innovation economy is strengthened when industry, government and innovators work together," said Claudia Krywiak, president and chief executive officer of the Ontario Centre of Innovation. "Strategic investments through the Critical Industrial Technologies (CIT) initiative accelerate technology adoption, reduce commercialization barriers and position SMEs [small and medium-sized enterprises] to compete global while delivering impactful solutions across key sectors such as mining."

The combined approvals signal growing recognition of Hybrid's role in developing clean, reliable and scalable power alternatives, reinforcing the company's commitment to innovation and local talent development.

"As Ontario's mining sector evolves, the integration of critical technologies is essential to improving productivity, safety, sustainability and global competitiveness," said Raed Kadri, vice-president of strategic initiatives and business development and head of OVIN (Ontario Vehicle Innovation Network) at OCI. "Through CIT, we are supporting companies as they move from innovation to commercialization, leading to stronger supply chains, the creation of good-paying jobs and securing Ontario's position as a global leader in industrial transformation."

The CIT development and commercialization program is delivered in collaboration with uWaterloo-RoboHub powered by Rogers as a CIT technology development site.

Through CIT, SMEs can access RoboHub's cutting-edge facilities, enabling them to test and validate their robotic products and automation services in facilities that mimic real-world environments, including the precommercial Rogers 5G network. Hybrid and other SMEs leverage RoboHub's technical leadership to source validation and feedback in real time, supporting Ontario companies in accelerated development and integration of critical technology products.

Through the CIT initiative, leading Ontario companies (such as Hybrid) are taking charge by tackling widespread challenges with critical-technology-integrated solutions. Together, Hybrid Power Solutions and the CIT initiative are building the future of industry in Ontario.

Conference call

Hybrid will host a conference call on Thursday, March 5, 2026, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). Interested parties are invited to register on-line.

Option grant

Pursuant to an amendment to the agreement with Sophic Capital Inc., the exercise price of the stock options previously granted to purchase up to 1.03 million common shares has been adjusted from four cents per share to five cents per share. The options will vest quarterly in four tranches of 257,500 each and expire on the earlier of: (i) 90 days after the termination of the engagement; and (ii) Feb. 18, 2031. The options remain governed by the provisions of Hybrid's stock option plan and the policies of the Canadian Securities Exchange.

About Hybrid Power Solutions Inc.

Hybrid Power Solutions is a Canadian clean energy innovator listed on the CSE 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.

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