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.” Strategic Partnership Agreement Framework 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.