VANCOUVER, BC - Hillcrest Energy Technologies Ltd. (CSE: HEAT) (OTCQB: HLRTF) (the 'Company' or 'Hillcrest'), a clean technology company developing transformative power conversion technologies and control system solutions for next-generation electrical systems, announces that it has closed its previously announced non-brokered private placement of up to 10,650,000 units of the Company (the 'Units') at a price of CDN$0.12 per Unit for gross proceeds of CDN$1,278,000.04 ('Offering'). Each Unit consists of 1.2 common shares in the capital of the Company (the 'Shares'), resulting in the issuance of a total of 12,780,000 Shares pursuant to the Offering.

The subscribers to the Offering include two directors and an officer who subscribed for an aggregate of 1,506,667 Units. The issuance of Shares to this offer constitutes a 'related party transaction' as this term is defined in Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions ('MI 61-101'). Additionally, two directors and one officer of the Company hold an aggregate of 1,350,000 common share purchase warrants, whose expiry date was extended with other common share purchase warrants as disclosed in the Company's news release dated December 29, 2022. In each of the warrant amendment, and the insider participation in the Offering, the Company is relying on the exemption from valuation requirement and minority approval pursuant to subsection 5.5(a) and 5.7(a) of MI 61-101, respectively, as the securities do not represent more than 25% of the Company's market capitalization, as determined in accordance with MI 61-101.

The Company intends to use the proceeds of the Offering for technology and product development, commercialization and general administrative purposes.

All securities issued in connection with the Offering will be subject to a four-month and one day hold period from the closing date, in accordance with applicable 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 press 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.

Contact:

Investor

Don Currie

E: dcurrie@hillcrestenergy.tech

T: +1-604-609-0006

Toll-free: 1-855-609-0006

Walter Frank

Jennifer Belodeau

IMS Investor

E: hillcrest@imsinvestorrelations.com

T: +1 203-972-9200

Public

Scott Worden

E: sworden@lambert.com

T: +1 313.309.9500

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