(via TheNewswire)

The agreement authorizes Vortex, on a non-exclusive basis, to integrate HPS products into its own energy solutions and to market, co-brand, resell and support them.

A separate, non-binding letter of intent outlines a proposed Canadian BESS manufacturing and commercialization relationship, including larger-system sales and cell-technology access.

Mississauga, Ontario – TheNewswire - October 22, 2026 – Hybrid Power Solutions Inc. (CSE: HPSS) (OTC: HPSIF) (FSE: E092) (“HPS”) and Vortex Telecom Group Inc., operating as Vortex Technology Group (“Vortex” and, together with HPS, the “Parties”), jointly announce that they have entered into a strategic systems integration, distribution and co-branding agreement (the “Integration Agreement”) and have separately signed a letter of intent dated October 19, 2026 (the “LOI”) setting out a non-binding framework for a proposed Canadian battery energy storage system (“BESS”) manufacturing and commercialization relationship. The proposed collaboration under the LOI would combine HPS’s Canadian manufacturing and industrial power-system capabilities with Vortex’s BESS platforms, cell-technology access and project-development activities, intended to support contract manufacturing for Vortex and potential larger-system sales through HPS’s channels.

The Parties see their overall relationship as a deeper and broader version of HPS’s standard dealer agreement. The Integration Agreement is a definitive agreement that is separate from the LOI and not part of it. Under the Integration Agreement, Vortex is authorized, on a non-exclusive basis, to integrate HPS products into its own energy solutions and to market, co-brand, resell and support them. No orders, sales volumes or revenue are assured under the Integration Agreement.

Under the LOI, Vortex would support the proposed manufacturing relationship through a proposed procurement program. The procurement program is subject to: (a) completion and submission to Vortex of HPS’s manufacturing cost estimates; (b) completion of Vortex’s market assessment, including competitive market analysis; and (c) successful completion of a Vortex pilot project, with its scope to be defined, to validate acceptance of an HPS-manufactured product. Any procurement commitment would be established only in an executed definitive manufacturing agreement with agreed order releases, delivery milestones and payment security.

The LOI does not create a minimum purchase obligation, purchase order, take-or-pay obligation, backlog, revenue guarantee or capacity reservation, and the proposed procurement program is not an executed order, firm backlog or guaranteed revenue.

“This gives us a path to build bigger systems, serve bigger projects and strengthen the products we already sell,” said Francois Byrne, Chief Executive Officer of Hybrid Power Solutions. “We see an opportunity to manufacture for Vortex while bringing larger systems to our own customers in construction, mining and modular AI infrastructure. Our focus is on turning that opportunity into qualified products and commercial orders.”

Proposed Workstreams Under the LOI

• Canadian contract manufacturing: HPS would manufacture, assemble, integrate and test agreed Vortex BESS configurations in Canada for Vortex’s customer projects, with responsibilities for North American system and component certification to be defined in the definitive agreement. The Parties would seek a definitive manufacturing agreement with agreed order releases, delivery milestones and payment security. 

• HPS commercialization rights: HPS and Vortex intend to negotiate rights for HPS to manufacture, integrate, market, sell and support selected larger Vortex-based BESS configurations in Canada and other mutually agreed markets, including a commercial supply and licensing framework that would allow HPS to quote and deliver systems through its own customer and distribution channels. The proposed relationship would be non-exclusive, and any such rights would be subject to agreed protections for Vortex’s existing customers and markets. Target applications include construction sites with multiple cranes and hoists, larger mining operations, and modular and edge AI computing infrastructure whose power and energy requirements extend beyond those addressed by a single Terra system. 

• Cell-technology access: The Parties would establish a framework for shared technical resources and HPS’s evaluation and procurement of selected Vortex-supplied cells and modules. The proposed work would include graphene-enhanced and semi-solid LFP technologies and, where appropriate and technically verified, supercapacitor-based solutions, with the objective of improving HPS product competitiveness. 

These workstreams would establish a potential Canadian manufacturing pathway for Vortex’s BESS projects while giving HPS a contract-manufacturing opportunity and an expanded customer-facing offering. Application suitability, sales and integration rights, technology performance and product approvals remain subject to qualification and definitive agreements; neither Party is announcing an AI, construction or mining customer contract under the LOI.

“Our objective is to establish a Canadian manufacturing relationship that supports Vortex’s cell technologies and product requirements, while creating vertical-market opportunities for both companies in the near term through our Integration Agreement as well as longer term through the LOI contract manufacturing agreement framework in progress,” said Brian Walters, Chief Executive Officer of Vortex Technology Group. “The next steps are to complete the cost and market assessments, validate the pilot product and agree on the commercial framework anticipated in the LOI.”

Path to Commercialization

The LOI contemplates preparing initial manufacturing quotations, a proposed procurement profile and a qualification plan within 60 days after execution and seeking to finalize definitive agreements within 120 days. These are planning objectives, not guaranteed completion dates. The firm order commitment window remains to be determined and would be negotiated in parallel with further due diligence and completion of the definitive agreements. Unless extended by both Parties in writing, the non-binding commercial framework would expire 120 days after execution of the LOI.

The LOI includes binding provisions relating to the Parties’ existing Mutual Confidentiality and Nondisclosure Agreement, public announcements, costs, authority and termination, governing law, and legal effect. Its commercial framework, including manufacturing, procurement, commercialization and technology access, is expressly non-binding, and neither Party is obliged to conclude a transaction or continue negotiations. Either Party may terminate the LOI by written notice. No assurance can be given that definitive agreements, orders or deployments will result.

About Vortex Technology Group

Vortex Technology Group provides BESS solutions for microgrids, telecommunications, renewable-energy integration and commercial and industrial infrastructure ( Vortex company overview ). Its energy storage activities include system integration and monitoring technologies ( Vortex BESS ).

Vortex Technology Group
Brian Walters, Chief Executive Officer
E: brian.walters@vortextel.ca
T: 416-524-8844

About Hybrid Power Solutions

Hybrid Power Solutions Inc. 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.

On Behalf of Hybrid Power Solutions Inc.,

Francois Byrne, CEO and Director

On Behalf of Vortex Telecom Group Inc., operating as Vortex Technology Group,

Brian Walters, Chief Executive Officer

For further information, inquiries, or media opportunities, please contact:

Hybrid Power Solutions
E: invest@hybridps.ca
T: 866-549-2743
www.investhps.com

Investor Relations
Dean Stuart
E: dean@boardmarker.net
T: 403-617-7609

Sophic Capital
Sean Peasgood
E: Sean@SophicCapital.com
T: 437-836-8862

Forward-Looking Statements

This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking information in this release includes, without limitation, statements regarding: the proposed Canadian BESS manufacturing and commercialization relationship between HPS and Vortex; the negotiation, terms, execution and timing of definitive agreements; the performance of the Integration Agreement, the integration, marketing, co-branding, resale and support of HPS products by Vortex, and any resulting orders, sales volumes or revenue; the proposed procurement program and the satisfaction of its prerequisites, including HPS’s manufacturing cost estimates, Vortex’s market assessment and the Vortex pilot project; the rights the Parties intend to negotiate for HPS to manufacture, integrate, market, sell and support selected Vortex-based BESS configurations; access to Vortex-supplied cells and modules and potential improvements in HPS product competitiveness; target applications; and the planning timetable under the LOI. Words such as “intend,” “would,” “proposed,” “expect,” “plan” and similar expressions identify forward-looking information.

Forward-looking information is based on management’s assumptions, opinions and estimates as of the date of this release, including assumptions that: the Parties will negotiate and execute commercially acceptable definitive agreements; the Parties will perform as anticipated under the Integration Agreement and there will be customer demand for Vortex solutions incorporating HPS products; HPS’s manufacturing cost estimates and Vortex’s market assessment will support a commercially viable offering; the Vortex pilot project will be completed successfully and will validate acceptance of an HPS-manufactured product; Vortex has, or can obtain, the rights required to supply or license the relevant technologies; technical qualification and applicable approvals will be obtained; and HPS will have access to the components, production capacity and working capital required.

Actual results could differ materially from those expressed or implied by forward-looking information due to risks and uncertainties, including that: the Parties may not reach definitive agreements on acceptable terms or at all; the Integration Agreement may not result in orders, sales volumes or revenue at the levels expected or at all; customer demand for Vortex solutions incorporating HPS products may be lower than expected; the Parties may not perform as anticipated under the Integration Agreement, and it may be terminated in accordance with its terms; negotiations may be delayed or fail; either Party may terminate the LOI by written notice, and the non-binding commercial framework will expire 120 days after execution unless extended in writing; the procurement prerequisites, including the Vortex pilot project, may not be satisfied; Vortex’s prior written approval is required for any voluntary public announcement about the LOI; technical qualification or regulatory approvals may be delayed or not obtained; supply, licensing, component, manufacturing-capacity or financing constraints may arise; and competition and customer requirements may change. The LOI does not create a purchase order, minimum purchase obligation, backlog or guaranteed revenue. Readers should not place undue reliance on forward-looking information. HPS does not undertake to update forward-looking information except as required by applicable securities laws.

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.

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