Hybrid Announces Anticipated Delayed Filing of Annual Financial Statements and MD&A and Application for Management Cease Trade Order and Marketing Update

Vancouver, British Columbia--(Newsfile Corp. - September 16, 2024) - Hybrid Power Solutions Inc. (CSE: HPSS) (OTCQB: HPSIF) (FSE: E092) ("Hybrid" or the "Company") would like to provide an update on the status of the filing of its annual financial statements, accompanying management's discussion and analysis and related CEO and CFO certifications for the year ended May 31, 2024 (collectively, the "Annual Filings").

The current auditors of the Corporation have recently informed the Corporation that due to the delayed receipt of certain information, as a result of the Corporation transitioning from using primarily external accounting service providers to internal accountants who will administer the accounting of the Corporation and delayed payment to the auditors for services rendered, it is unlikely that the auditors will be able to compile and complete the necessary audit work in order to file the Annual Filings by the prescribed filing deadline of September 30, 2024 pursuant to Parts 4 and 5 of National Instrument 51-102 - Continuous Disclosure Obligations and National Instrument 52-109 - Certification of Disclosure in Issuer's Annual and Interim Filings (the "Filing Deadline").

The Company intends to continue to work diligently and expeditiously with its auditors and expects to file the Annual Filings as soon as possible, and in any event no later than October 31, 2024.

Other than as previously disclosed by the Company and herein with this press release, the Company confirms that there have been no material business developments since the date of its last financial statements that were filed.

Management Cease Trade Order Application

In light of the delay in filing of the Annual Filings prior to the Filing Deadline, the Company is providing this default announcement in accordance with National Policy 12-203 Management Cease Trade Orders ("NP 12-203"). The Company has made an application to the British Columbia Securities Commission (the "BCSC"), as principal regulator of the Company, for a management cease trade order ("MCTO") under NP 12-203 in respect of the anticipated default regarding the Annual Filings. The granting of the MCTO is at the discretion of the British Columbia Securities Commission and there is no guarantee that this will be granted. The issuance of the MCTO will not affect the ability of persons who have not been directors, officers or insiders of the Company to trade in their securities. In the event that the MCTO is granted, it will be in effect until the default is remedied. The Company intends to follow the provisions of the Alternative Information Guidelines set out in NP 12-203, including the issuance of bi-weekly default status reports in the form of news releases, for as long as the Company remains in default.