Hillcrest closes final tranche of unit offering

Mr. Don Currie reports HILLCREST ANNOUNCES CLOSING OF FINAL TRANCHE OF UNIT OFFERING Hillcrest Energy Technologies Ltd. has closed the final tranche of its previously announced offering of units of the company for gross proceeds of $4,593,118.86 at a price of nine cents per unit, composed of: (i) $3,642,879.96 in aggregate gross proceeds raised through the issuance of 40,476,444 units on a private placement basis; and (ii) $950,238.90 in proceeds raised through the issuance of 10,558,210 units in consideration for the settlement of $950,238.90 in debt owing to an arm's-length creditor of the company. The total cash offering size, cumulative of all tranches, was 48,972,556 units for gross proceeds of approximately $4,407,530. The total debt settlement size, cumulative of all tranches, was 31,581,634 units in settlement of an aggregate of approximately $2,842,347 of debt. Each unit consists of one common share in the capital of the company and one common share purchase warrant. As a result, the company issued an aggregate total of 51,034,654 common shares and 51,034,654 warrants pursuant to the closing of the final tranche. "The closing of this final tranche represents a significant milestone for Hillcrest," said Don Currie, chief executive officer of Hillcrest Energy Technologies. "The strategic investment from Pasqua First Nation not only strengthens our balance sheet but reinforces the value of our collaborative approach to commercializing our ZVS technology. Combined with the successful retirement of debt and strong investor interest, we're now positioned to accelerate our technology development and deliver on the commitments we've made to our shareholders and partners." Each warrant entitles the holder thereof to acquire one common share at an exercise price of 12 cents per common share for a period of 24 months from the date of issuance. The warrants are subject to an accelerated expiry upon 30 business days notice from the company in the event the common shares trade for 10 consecutive trading days any time after four months from the date of issuance at a volume-weighted average price of at least 36 cents on the Canadian Securities Exchange. As previously announced, the company entered into a memorandum of understanding with Pasqua First Nation whereby PFN had to ability to invest $3-million directly into Hillcrest through the purchase of units in the company to support the further development and commercialization of Hillcrest's ZVS technology and support general operating needs. It is intended that the proceeds from closing of the final tranche of the cash 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. The securities issued in connection with the offering, including any common shares issuable upon the exercise of the warrants, are subject to a statutory four-month-and-one-day-hold period in accordance with the policies of the CSE and applicable Canadian securities laws. About Hillcrest Energy Technologies Ltd. Hillcrest 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. We seek Safe Harbor.