dynaCERT Provides Update on the Purchase Order for HydraGEN™ Units Destined for Guyana

TORONTO--(BUSINESS WIRE)--dynaCERT Inc. (TSX: DYA) (OTCMKTS: DYFSF) (FRA: DMJ) ("dynaCERT" or the "Company") provides an update regarding a purchase order of its HydraGEN™ Technology Units destined for Guyana (for details, see the Company's press release dated May 26, 2023 and the update dated July 31, 2023).The recipient of these HydraGEN™ Technology Units is a company located in Guyana (the “Recipient”). As announced on July 31, 2023, the Company previously delayed deliveries of HydraGEN™ Units under this order pending further notice by either the Recipient or its representatives, that certain outstanding issues were resolved to everyone’s satisfaction. Most notably, the Company was obliged to delay the delivery of all but two such HydraGEN™ Units and the Company was awaiting from the Recipient, through representatives, certain usual information regarding the specific electric voltage, engine information, On Board Diagnostic port types, and other data pertaining to the vehicles and equipment on which the HydraGEN™ Units of the Company are to be installed. Such information is necessary for the final assembly, packaging and shipping of the HydraGEN™ Units. The Company was also previously advised by representatives of the Recipient that the two HydraGEN™ Units that were delivered in 2023 are still awaiting clearing from Guyanese customs by an agent of the Recipient.

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Despite continued ongoing dialogue with representatives of the Recipient of these HydraGEN™ Units over past months, none of the aforementioned issues have been resolved to date. Further, the Company has been made aware of litigation that appears to involve the purchase order in question. This litigation consists of an initial claim requesting the return of the deposit that was received in May 2023, followed by a third-party claim among various extraneous parties claiming damages. These two matters have now been consolidated by the court. At a recent case conference the third party plaintiff’s counsel advised the court that he has agreed to give the Company a waiver of defence in respect of the third-party claim (such that the Company shall only require a defence to the deposit claim). The Company believes that this litigation has no merit against dynaCERT. Given the emergence of litigation and lack of progress in resolving delivery issues over past months, the Company has determined to suspend indefinitely this purchase order pending resolution by courts or clarification of the litigation issues in question.

About dynaCERT Inc.

dynaCERT Inc. manufactures and distributes Carbon Emission Reduction Technology along with its proprietary HydraLytica™ Telematics, a means of monitoring fuel consumption and calculating GHG emissions savings designed for the tracking of possible future Carbon Credits for use with internal combustion engines. As part of the growing global hydrogen economy, our patented technology creates hydrogen and oxygen on-demand through a unique electrolysis system and supplies these gases through the air intake to enhance combustion, which has shown to lower carbon emissions and improve fuel efficiency. Our technology is designed for use with many types and sizes of diesel engines used in on-road vehicles, reefer trailers, off-road construction, power generation, mining and forestry equipment. Website: www.dynaCERT.com.