Exro Announces Signing of Strategic Partnership MoU with European-Based Global Automotive Industry Supplier

The agreement provides the opportunity to significantly amplify Exro's market presence with access into the partner's global customer network for automotive and off-highway applications

• The strategic partner will remain unnamed under a non-disclosure agreement ("NDA") through phase one of the partnership (successful validation of partner motor-Exro L040 800V inverter proof-of-concept) anticipated in Q3 2023, after which the parties shall transition to definitive agreement announced with a joint press release.
• Headquartered in Europe with over 25,000 employees worldwide, the partner is a market leader in environmentally sustainable mobility for large-scale automotive OEM customers.
• The strategic partnership is intended to leverage Exro's Coil Driver™ technology and the partner's motor design capabilities to develop next-generation powertrain solutions that address the truck and bus electric commercial vehicle market and off-highway applications.
• Exro's L040 800V Coil Driver™ product has been de-risked through other projects, including the same L040 800V inverter validated in strategic partnership with Linamar, thereby demonstrating Exro's ability to scale the same inverter into multiple partners and applications.
• Exro and NDA partner's collaboration combines expertise in complementary core technologies to address long-term megatrends in electrification, targeting markets with high growth potential with co-developed innovative solutions for a safe, sustainable, and liveable future.

CALGARY, AB, Feb. 27, 2023 /PRNewswire/ - Exro Technologies Inc. (TSX: EXRO) (OTCQB: EXROF) (the "Company" or "Exro"), a leading clean technology company that has developed new generation power control electronics that expand the capabilities of electric motors and batteries, is pleased to announce that it has signed a Memorandum of Understanding ("MoU") for strategic partnership ("the partnership") with an undisclosed development partner ("NDA partner" or "partner"), a multi-national company that is a direct supplier to the global automotive industry. As is customary with such partnerships, following successful proof-of-concept co-development, which in this case consists of demonstrating performance of the partner's motor with Exro's standard L040 800V Coil Driver™ inverter product ("Coil Driver™"), the partnership will transition to definitive agreement. The partnership aligns directly with Exro's targeted go-to-market strategy for its patented Coil Driver™ technology, partnering with leading global tier-1 automotive suppliers that accelerate and amplify Exro's market presence.

"We are absolutely thrilled to welcome our next strategic partner," said Exro CEO Sue Ozdemir. "While we would love to disclose the identity of our new partner at this time, we are conscious of the industry conditions today with companies being sensitive of existing supply chains and protective of new relationships for competitive reasons. What we can disclose, however, is that our new partner has a strong reputation as a leading technology provider to the automotive industry as well as major off-highway applications, marking a tremendous validation of our technology and its potential to scale across multiple platforms. With both companies' core values directly aligned in a commitment to sustainability, we look forward to revealing our new partner in the near future and building a successful relationship that translates into significant value for our customers and our shareholders."

The strategic partnership is intended to leverage Exro's Coil Driver™ technology and the NDA partner's design, manufacturing, and supply capabilities to develop next-generation powertrain solutions for electric commercial vehicles and off-highway applications in Europe and North America. The relationship between the parties has developed under NDA over a period of many months and opens the door to a large addressable market in the electric truck and bus markets as well as mining and other major off-highway segments. Under phase one of the agreement, the partner's electric motors will be calibrated with Exro's L040 800V Coil Driver™ for prototype samples in Q3 2023. Upon successful completion of automotive dynamometer testing, including achievement of mutually agreed to performance targets, the parties shall transition to a definitive agreement for strategic partnership which will outline volume targets, sales and marketing plans, price and production targets, and compensation models. At such time, the parties anticipate issuing a joint news release to announce the definitive agreement, thereby revealing the identity of the unnamed partner. Dynamometer testing is anticipated to be completed by the end of Q3 2023.

Exro's L040 800V Coil Driver™ product has been de-risked through other projects, including the same L040 800V Coil Driver™ inverter validated with Linamar for use in an e-axle application. This latest strategic partner demonstrates Exro's ability to scale the same inverter into multiple partners and applications. Target customers for the partnership's motor-inverter powertrain solutions include large scale automotive original equipment manufacturers ("OEM's") in Europe and North America.

Exro designs, develops, and manufactures advanced power electronics controls for electric vehicles. The power controller inside every electric vehicle is called an inverter, which is essentially the brain between the battery and the electric motor. An electric motor is only as smart as the controller telling it how to behave. While advancements in components (ex. SiC) have improved inverter technology over the years, the core technology behind the standard 3-phase inverter inside of every electric vehicle today has remained unchanged – until now. Exro's patented Coil Driver™ takes the prior-art physics of coil-switching and provides the ability to control an electric motor at the individual coil level through the power electronics. This coil-level control provides the ability to switch motor profiles in real-time to deliver two separate speed-torque profiles from the same motor, effectively acting like an electronic gear to expand the operating range of the motor. This functionality is not offered by any other inverter on the market today. While the Coil Driver™ performs the same functions as every standard 3-phase inverter, our drive allows electric vehicle OEM suppliers the ability to offer its customers significant flexibility in design while providing differentiated vehicle performance:

1. Increased torque and power output. The Coil Driver™ increases powertrain performance by up to 50%. For electric commercial trucks and buses, this translates to improved gradeability, better performance on steep routes, and expansion of routes a vehicle is capable of travelling.
2. Improved efficiency. The Coil Driver™ delivers increased performance without sacrificing range. Improved efficiency translates into range of the vehicle, extending routes and lowering overall spend on charging.
3. System cost reduction. Implementation of Exro's technology can lower the vehicle powertrain cost by up to 20% by optimizing the system to reduce weight and complexity: reducing (or eliminating) components such as multiple motors, mechanical gearboxes, battery size, etc.
4. AC fast-charging. Native to Exro's high-voltage Coil Driver™ products is an ability to AC fast-charge, eliminating the need for an on-board charger (currently a standard component in all electric vehicles). The ability to fast charge using AC instead of DC power leads to potential cost savings of up to 90% on infrastructure.

For additional information on Exro's Coil Driver™ technology, please click here: Exro Coil Driver Product Catalogue

Shareholder Live Stream Event
On Wednesday, March 1st at 11:00 a.m. MST, join the discussion with Sue Ozdemir and Exro leaders for the company's next shareholder live webcast from Exro's world-class manufacturing center in Calgary, Alberta. See the link below to register for the event and to submit your questions in advance.

https://www.exro.com/investors/events

Exro Technologies Inc. is a leading clean technology company that has developed new generation power control electronics that change how the world optimizes energy by expanding the capabilities of electric motors and batteries. The company's innovative technologies serve to bridge the performance-cost gap in e-mobility (Coil Driver™) and stationary energy storage (Cell Driver™), and act to accelerate adoption towards a circular electrified economy by delivering more with less – minimum energy for maximum results.

For more information visit our website at www.exro.com.

To view our Corporate Presentation visit us at www.exro.com/investors

Visit us on social media @exrotech.

This news release contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements can be identified by the use of terminology such as "plans", "expects", "estimates", "intends", "anticipates", "believes" or variations of such words, or statements that certain actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved". 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, that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although the Company believes that the assumptions and factors used in preparing these forward-looking statements are reasonable based upon the information currently available to management as of the date hereof, actual results and developments may differ materially from those contemplated by these statements. Readers are therefore cautioned not to place undue reliance on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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