Hillcrest Announces Closing of Final Tranche of Unit Offering

Vancouver, British Columbia–(Newsfile Corp. – January 9, 2026) – Hillcrest Energy Technologies (CSE: HEAT) (FSE: 7HI) (“Hillcrest” or the “Company“) is pleased to announce it has closed the final tranche (the “Final Tranche“) of its previously announced offering (the “Offering“) of units of the Company (the “Units“) for gross proceeds of $4,593,118.86 at a price of $0.09 per Unit, comprised of: (i) $3,642,879.96 in aggregate gross proceeds raised through the issuance of 40,476,444 Units on a private placement basis (the “Cash Offering“) 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 “Debt Settlement“). 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 (a “Common Share“) and one Common Share purchase warrant (a “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, CEO 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 $0.12 per Common Share for a period of 24 months from the date of issuance. The Warrants are subject to an accelerated expiry upon thirty (30) business days’ notice from the Company in the event the Common Shares trade for ten (10) consecutive trading days any time after four (4) months from the date of issuance at a volume-weighted average price of at least $0.36 on the Canadian Securities Exchange (the “CSE“).

As previously announced, the Company entered into a memorandum of understanding with Pasqua First Nation (“PFN“) whereby PFN had to ability to invest $3,000,000 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 Energy Technologies 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”. For more information, please visit: https://hillcrestenergy.tech/.

THE SECURITIES OF THE COMPANY REFERRED TO IN THIS PRESS RELEASE HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT“), OR ANY STATE SECURITIES LAWS. ACCORDINGLY, THE SECURITIES OF THE COMPANY MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES UNLESS REGISTERED UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. THIS NEWS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF ANY OFFER TO BUY ANY SECURITIES OF THE COMPANY IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL.

FORWARD-LOOKING INFORMATION

This press release contains “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements in this press release include, but are not limited to, the expected use of proceeds from the Cash Offering. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to receiving all regulatory approvals, risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; political and regulatory risks; risks related to the maintenance of stock exchange listings; and other risks and uncertainties related to the Company’s business detailed elsewhere in the Company’s disclosure record. Additional information on these and other risk factors can be found in the Company’s continuous disclosure documents available under its profile on SEDAR+ at www.sedarplus.ca.

Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company’s expectations or projections.

CAUTIONARY STATEMENT

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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