Exro Technologies Announces Fourth Quarter and Full Year 2023 Financial Results

• The revenue generated by Exro is $5,736,140 12 months ended December 31, 2023.

• Our company terminates the non-disclosure agreement with Giaffone and announces the completion of Coil Driver.^TM Acceptance will begin for purchase order agreements that will be validated in Q4 2023 and begin in Q1 2024.

• Production of the Coil Driver™ began in Q3 2023 in small quantities, followed by first deliveries of sample units to customers in Q4 2023.

• upon January 30, 2024Exro has entered into a merger agreement with SEA Electric Inc. for the purpose of acquiring SEA Electric and providing equity financing of the resulting gross proceeds. $30,020,000.

Calgary, Alabama, April 1, 2024 /CNW/ – Exro Technologies Inc. (TSX: EXRO) (OTCQB: EXROF) ( “company” or “Exro”), a leading clean technology company that has developed a new generation of power control electronics that expands the capabilities of electric motors and batteries, today announced its financial results for the quarter ending December 31, 2023.

“We continued our business momentum through the fourth quarter of 2023 and closed the year with several important milestones,” said Exro's CEO. Sue Ozdemir. “2023 already feels like a distant memory as EXRO enters into a transformational merger with electric vehicle technology company SEA Electric in the first quarter of 2024, paving the way for accelerated revenue growth, technology adoption and profitability. We look forward to completing the transaction and servicing our leading commercial vehicle and passenger vehicle OEM partners in 2024 and beyond. ”

Merger of Exro and Sea Electric

Following year-end, Exro entered into a merger agreement (the “Transaction”) with SEA Electric Inc. (“SEA Electric”). The transaction is expected to strengthen Exro's technology offering, accelerate revenue growth and contribute to profitability.

The transaction is expected to provide significant benefits to Exro, including, but not limited to:

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• technology synergy: This transaction combines Exro's Coil Driver™ motor control technology with SEA Electric's SEA-Drive Vehicle Control Unit (VCU) software technology. This integration is expected to deliver superior performance, efficiency and total cost of ownership benefits in a complete package electric propulsion system for the commercial vehicle space. Exro and SEA Electric have been partnering for the past three years to test this technology.

• Revenue acceleration: Following this transaction, the company expects to deliver more than 1,000 propulsion systems to premier original equipment manufacturers (OEMs) in 2024. This strategic move is expected to significantly increase revenue.

• Multi-year commitment: Major commercial vehicle OEMs have multi-year agreements with the combined company. These initiatives confirm our confidence in the combined company's capabilities and potential.

In connection with this transaction, the Company announced a private placement purchase transaction for gross proceeds. $30 million 31,600,000 subscription receipts, $0.95 per subscription receipt. The underwriting receipts will be exchanged for common stock upon closing and the proceeds will be released to the Company.The transaction is expected to close in the next day April 5, 2024and is subject to customary closing conditions, including regulatory approvals and approval by Exro stockholders.

Performance highlights from the fourth quarter onwards

In Q4 2023, Exro terminated its NDA and announced a partnership with Giaffone Electric, further expanding its strategic partnership. south america. In Q1 2023, Exro and Giaffone integrated the Coil Driver™ system into the commercial delivery vehicles of the world's leading food and beverage companies. Additional systems were ordered and deliveries continued into his first quarter of 2024.

Exro, in collaboration with our off-highway NDA partners, has successfully completed bench testing of a 48V coil driver for hybrid diesel applications. Europe. Commercial negotiations for the units and systems are ongoing, including the termination of the NDA.

Coin Driver™ production began in Q3 2023 in small quantities, followed by first deliveries of sample units in Q4 2023.

For Exro's Cell Driver™ energy storage, the company announced a distribution partnership with Greentech Renewables Southwest and named Re:Build Manufacturing as the exclusive manufacturing partner for the company's Cell Driver cabinets. Exro employs more than 40 sales and installation partners worldwide. North America And that caribbean

upon March 6, 2024 Exro announced that it has completed the testing program required to obtain UL certification for its Cell Driver™ stationary energy storage system. The test results are currently being reviewed by his approved UL certification body, Intertek Laboratories, followed by an audit of Exro's Cell Driver™ contract manufacturer, Re:Build Manufacturing. Final UL certification is expected to be achieved in Q2 2024. Commercial sales and marketing activities will continue.

The Company disclosed additional key highlights from 2023 in its MD&A released in December 2020. April 1, 2024.

Financial Highlights for the Fourth Quarter and Fiscal Year 2023

For the three-month period ending December 31, 2023

• revenue of $935,410 (2022 – $1,807,859)

• comprehensive loss $18,201,611 (2022 – $25,301,810)

• Selling, general and administrative expenses decreased $5,886 to $2,592,706 from $2,598,592

• Salary and consulting fees increased $796,058 to $4,474,702 from $3,678,644

• R&D increased $1,840,285 to $4,485,833 from $2,645,548

For the 12 months ending December 31, 2023

• revenue of $5,736,140 (2022 – $2,185,448)

• comprehensive loss $50,143,198 (2022 – $39,495,905)

• Selling, general and administrative expenses decreased $1,343,234 to $9,776,036 from $11,119,270

• Salary and consulting fees increased $2,883,319 to $16,669,923 from $13,786,604

• R&D increased $4,071,391 to $12,836,892 from $8,765,501

The Company generated the following revenues: $935,410 and $5,736,140through the execution of an Engineering Services Agreement for three and twelve months, respectively, ending December 31, 2023.

Exro experienced an increase in overall operating costs during the ended twelve months. December 31, 2023This was primarily due to higher personnel and research and development expenses compared to the same period in 2022, offset by lower selling, general and administrative expenses. In addition, we are subject to increased expenses related to non-cash items, including investment losses in SEA, fair value losses on derivative assets, interest expense settled through the issuance of our stock, increases in depreciation and share-based payments, etc. I have confirmed.

Liquidity and capital resources

As of December 31, 2023, the Company had cash and cash equivalents. $6,241,176 and accounts receivable $4,233,672. The Company had accounts payable and accrued liabilities. $8,629,951.

Business results and carefully selected financial data

Issued stock data

As of April 1, 2024, the number of outstanding common shares is 170,121,818 shares.

Additional Information

The financial statements and management's discussion and analysis for the quarter ended December 31, 2023, published on April 1, 2024, are available below. www.exro.com/investors or on SEDAR+ from Exro Technologies Inc. www.sedarplus.ca.

Unless otherwise stated, all numbers are expressed in Canadian currency, Cdn.

About EXRO Technologies Co., Ltd.

Exro Technologies Inc. is a leading clean technology company that has developed a new generation of power control electronics that is changing the way the world optimizes energy by extending the capabilities of electric motors and batteries. The company's innovative technology bridges the performance and cost gap between e-mobility (Coil Driver™) and stationary energy storage (Cell Driver™), delivering more power with less energy. , thereby playing a role in accelerating the adoption of a circular electrification economy. Maximum results.

For more information, please visit the following website: www.exro.com.

Visit us on social media @exrotech.

on behalf of the board of directors
Sue Ozdemirchief executive officer

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable securities laws. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements generally include terms such as “plans,” “expects,” “estimates,” “intends,” “anticipates,” “believes” or variations of such words, or that certain actions may result in forward-looking statements. It can be identified by the use of the description “happens''. , an event or result “may,” “might,” “would,” “could,” “will occur,” “happen,” or “achieve.” Forward-looking statements involve risks, uncertainties and other factors disclosed under the heading “Risk Factors” and elsewhere in the Company's filings with Canadian securities regulators, and which may results, performance, prospects and opportunities may differ materially from those expressed or implied by them. Forward-Looking Statements. Although the Company believes that the assumptions and factors used in the preparation of these forward-looking statements are reasonable based on information currently available to management as of the date hereof, actual results may vary. and developments may differ materially from those contemplated in these statements. Readers are therefore cautioned not to place undue reliance on these statements. These statements apply only as of the date of this news release and there can be no assurance that such events will occur within the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. .

This information is fully qualified by the cautionary statements and risk factor disclosures contained in the Company's filings with Canadian securities regulators, including the Company's Annual Information Form for the ended fiscal year. December 31, 2023financial statements for the ended fiscal year and related MD&A. December 31, 2023filed with certain state securities regulators Canada Available at www.sedarplus.ca. If one or more of these risks or uncertainties materialize, or if the assumptions underlying the forward-looking information prove incorrect, actual results may differ from those intended, planned, anticipated or believed. actual results may differ materially from those estimated or anticipated herein. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially from those anticipated, estimated or intended. There is a possibility. The Company does not intend, and undertakes no obligation, to update this forward-looking information, except as otherwise required by applicable law.

Toronto Stock Exchange and Investment Industry Regulatory Authority Canada is responsible for the adequacy or accuracy of this press release.

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