Hybrid Power receives two Spark repeat orders

Mr. Francois Byrne reports HYBRID POWER SOLUTIONS RECEIVES FOLLOW UP ORDER FOR BATTERY SYSTEMS FROM MAJOR TRANSIT OPERATOR, RESHORING OF TERRA PRODUCTION AND DEBENTURE FINANCING Hybrid Power Solutions Inc. has received a repeat order of two Spark power systems from a major Canadian public transit agency, following the successful evaluation of an initial test unit. The repeat purchase demonstrates growing confidence in Hybrid's platform and highlights the client's continued interest in electrifying site operations and reducing emissions through clean, battery-powered alternatives. The Spark system is being used to support operations that would otherwise rely on gas or diesel generators, offering a quiet, low maintenance and zero-emission solution for both urban and maintenance environments. "When a major transit operator comes back with a follow-up order, it shows we're delivering performance where it matters," said Francois Byrne, chief executive officer of Hybrid Power Solutions. "This is a clear signal that clean energy is not only viable but also being validated in the field by some of the most demanding infrastructure clients in the country." Hybrid currently has additional Spark units under active quotation with the same agency, positioning the company for further opportunities within the public transportation and infrastructure sectors. Bring Terra production home to Canada Hybrid also announces that the design, engineering and assembly of its flagship Terra battery energy storage system will be completed in-house at its facility, ending reliance on overseas manufacturing partners. This strategic move reflects the management team's commitment to investing in the long-term knowledge base required to deliver market-leading energy storage solutions. By reshoring production, Hybrid gains direct control over quality, performance and customization, allowing the company to respond faster to customer needs and technological advances. "Bringing Terra's production home is more than a manufacturing decision, it's an investment in our future capabilities," said Francois Byrne, chief executive officer of Hybrid Power Solutions. "It means higher quality, faster innovation and the ability to build bigger, more powerful systems on the same design foundation." Terra's architecture will serve as the design basis for larger-scale BESS platforms, giving Hybrid Power Solutions the flexibility to scale into multimegawatt-hour systems with ease. This shift also enables rapid adaptation to emerging battery chemistries and next-generation power components, ensuring the Terra remains at the forefront of energy storage innovation. By consolidating expertise under one roof, Hybrid is positioning itself to deliver better service for end clients, shorten delivery timelines and maintain full oversight from concept to completion, critical advantages in a rapidly evolving clean energy market. Debenture Hybrid also announces that the company intends to complete a non-brokered private placement of senior secured convertible debenture units of the company for aggregate gross proceeds of up to $500,000, led by Plaza Capital at a price of $1,000 per convertible debenture unit. Each convertible debenture unit will consist of: (i) a $1,000 principal senior secured convertible debenture; and (ii) 20,000 common share purchase warrants exercisable for 20,000 common shares in the company. The convertible debentures will mature on the date that is 12 months from the date of issuance and shall bear interest at a rate of 12.0 per cent per annum, beginning on the date of issuance and payable in cash on the last business day of each calendar month. The principal sum of the convertible debentures, or any portion thereof, and any accrued but unpaid interest may be converted into common shares at a conversion price of five cents per common share subject to adjustment in the event the company issues additional stock or convertible instruments at a price lower than the conversion price, as per the policies of the Canadian Securities Exchange. Each warrant shall entitle the holder to acquire one additional common share at a price of six cents per common share subject to adjustment in the event the company issues additional warrants at a price lower than the exercise price for a period of 24 months from the date of issuance. The obligations under the convertible debentures will be collaterally secured by a general security agreement granting a security interest in all the company's property and assets. The company may not issue any securities that rank senior or pari passu to the convertible debentures. All convertible debentures and warrants issued pursuant to the offering (including any securities into which they may be converted or exercised) will be subject to a statutory hold period of four months and one day from the date of issuance. The offering is expected to close on or about Aug. 18, 2025, subject to satisfactory completion of due diligence, negotiation of definitive documentation, and compliance with applicable securities laws and Canadian Securities Exchange policies. The company will pay the lead investor a closing fee in connection with the offering composed of 4.0 per cent of the gross proceeds arising from orders received from the lead investor group in the offering. The company has also agreed to reimburse the lead investor for reasonable and documented out-of-pocket expenses incurred in connection with the offering in the amount of up to $25,000 plus applicable taxes and disbursements. Funds from this debenture will support production needs for an existing order for two Terras from a major construction company and the following objectives: Relocate Hybrid's Terra manufacturing to North America to enhance supply chain efficiency, quality control and production timelines; Advance the development and rollout of connected technology features, set for release across all units in fourth quarter 2025; Adopt advanced production and quality control processes to boost efficiency, ensure product consistency, meet regulatory standards, lower costs and improve margins; Expand presence at key industry trade shows, live demonstrations and client road show events across Canada and the United States in fourth quarter 2025; Hire two additional sales reps dedicated to key market verticals in Canada and the U.S.; General working capital. About Hybrid Power Solutions Inc. Hybrid 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.