Hillcrest settles shares for debt

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VANCOUVER, BC / ACCESS Newswire / July 21, 2026 / Hillcrest Energy Technologies Ltd. (OTCQB:HLRTF)(CSE:HEAT)(FRA:7HI) is pleased to announce that the Company proposes to enter into debt settlement agreements with certain arm's length creditors (the " Creditors "), pursuant to which the Company will issue 611,111 units of the Company (each, a" Unit ") at a price of $0.18 per Unit in full satisfaction and final settlement of an aggregate of $110,000 in debt owed to the Creditors (the " Debt Settlement ").

Each Unit will consist of one common share in the capital of the Company (each, a " Share ") and one Share purchase warrant (each, a " Warrant "). Each Warrant will entitle the holder to purchase an additional Share (a " Warrant Share ") at a price of $0.20 per Warrant Share for a period of 24 months following the date of issuance of the Warrant.

All securities issued in connection with the Offering are subject to a statutory hold period of four months and one day following the date of issuance in accordance with applicable Canadian securities laws.

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.

The Company further announces that it has granted stock options (" Options ") to a consultant of the Company to purchase up to 1,000,000 Common Shares pursuant to the Company's share option plan. The Options vest immediately and are exercisable on or before July 20, 2030, at a price of $0.18 per Common Share.

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/ .

CONTACT INFORMATION

Investor Relations Don Currie info@hillcrestenergy.tech O: +1 604-609-0006 Toll-free: 1 855-609-0006

Public Relations Jamie L. Hogue jhogue@hillcrestenergy.tech O: +1 602-793-9481

Cautionary Statement Regarding "Forward-Looking" Information

Some of the statements contained in this news release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "expects," "intends," "is expected," "potential," "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may," "could," "should," "would," "might" or "will" be taken, occur or be achieved. This forward-looking information is provided as of the date of this news release. The forward-looking information reflects our current expectations and assumptions and is subject to a number of known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to be materially different from any anticipated future results, performance or expectations expressed or implied by the forward-looking information. No assurance can be given that these assumptions will prove correct. Forward looking statements in this news release include statements related to the completion of the Debt Settlement, which remain subject to the ordinary conditions of completion, and additionally requires the entry into debt settlement agreements with each of the Creditors, as well as non-objection of the placement by regulatory authorities including the Canadian Securities Exchange. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company's control. Investors are advised to consider the risk factors under the heading "Risks and Uncertainties" in the Company's MD&A for the year ended Dec. 31, 2025, available at https://www.sedarplus.ca/ for a discussion of the factors that could cause the Company's actual results, performance and achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward- looking information. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.

SOURCE: Hillcrest Energy Technologies Ltd.

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