Saskatchewan - HTC Purenergy Inc. dba HTC Extraction Systems (also the 'Corporation' and/or 'HTC') (HTC: TSX-V) (OTCQB: HTPRF) today announced its unaudited interim condensed consolidated financial results for the nine-month period ending September 30, 2020 (the 'Quarter' or the 'Period').

HTC Extraction Systems and its subsidiaries have developed proprietary extraction and purification systems, that have been designed to extract from biomass, liquids and gas, as well as for the distillation and purification of ethanol, ethanol and hydrocarbon-based solvents, used for this extraction in the Delta CleanTech energy busines sector and the Industrial Hemp-Cannabinoid/Biofibre/Protein business sector.

HTC'S - DELTA CLEANTECH DIVISION

CO2 Capture: Environmental Social Governance ('ESG') is driving Identity Preserved Waste ('IPWTM') Solutions. The advanced adoption and success of electric vehicle transportation refocuses the call for decarbonized electricity, which will be achieved through CO2 capture/utilization, while renewable energy such as wind and solar becomes a growing and larger part of the energy mix in the next 25 years. Hydrocarbon combustion for electricity production will dominate the electric grid and CO2 capture/utilization is required.

HTC's Delta CleanTech Division has developed an improved proprietary CO2 capture system that has been designed to significantly reduce the cost of CO2 capture. Brand named the Delta LCDesign, this proprietary system has been engineered to deliver superior performance while reducing energy usage, lowering emissions, and improving the quality and purity of CO2 product captured.

Delta Purification is a solvent, glycol and ethanol purification sub-division, focused on the field of purifying and reclaiming, recycling and reusing ethanol, solvents and glycols providing energy processors and heavy industry the option of not disposing of these waste materials in underground disposal wells.

Hydrogen Fuel Production and Related CO2 Capture: The efficiency and acceptance of electric drive vehicles, and the improvements in cost and efficiency of Hydrogen Fuel Cell technology, has created the opportunity for rapid growth in the Fuel Cell Electric Vehicles ('FCEV'). Heavy trucks and passenger busses will lead the way with commercial vehicle sales expected to grow to $7 billion annually in 8 years. Fuel stations are required for the production of hydrogen through methane (natural gas) reforming, which is the most cost effective and practical approach utilizing the natural gas (methane) pipeline network already serving gas stations. CO2 capture is required at these hydrogen reforming fuel stations to ensure the hydrogen is produced without a CO2 footprint.

Carbon Rx Inc. ('Carbon Rx'), a wholly owned subsidiary of HTC, is a 15-year old company engaged in the development, verification, and marketing of certified CO2 offset credits. The regulatory framework is multi-jurisdictional and has evolved over the past 10 years and of relevance is the knowledge of how the credits are established and how they are utilized or traded. Carbon Rx owns two business units leading the way in the development of aggregation and sale of carbon credits from; municipal landfills and from regenerative agricultural no tillage farming practices having historically traded over $30,000,000 of Carbon Credit units.

HTC'S HEMP - CANNABINOID/BIOFIBRE/PROTEIN DIVISION

HTC's business strategy includes the production contracting of broad acre industrial hemp for: Cannabinoid Extraction; Biofibre for Bioplastics, Biochar and Cellulose, as well as Hemp Seeds for Protein and Hemp Seed Oil. By implementing its historical skillsets, process design and standard operating procedures ('SOPs'), HTC will aim to become one of Canada's largest hemp biofibre suppliers, hemp seed sellers and oil processors and cannabinoid extractors and refiners. In order to accomplish its objectives, the Corporation intends to leverage its relationships with successful farming leaders and draw on SOPs, best practices in genetics, fertility, fibre processing, seed cleaning and processing including experience required in ingredient sales with multi-year contracts.

KF Hemp Corp. ('HempCo'), a wholly owned subsidiary of HTC, owns hemp shredding, handling, drying, sizing and sorting equipment, which have been installed in its hemp processing facility, located in Lajord, Saskatchewan, and boasts a agreements with local IPEliteTM growers, pursuant to which these growers will allocate up to 25,000 acres in future years, for the production of IPGrowTM (identity preserved) Industrial Hemp. The IPEliteTM growers will select ideal ground for hemp production and implement the optimal fertility package and crop protection program for high yielding biofibre, hemp seeds and high cannabinoid hemp flower biomass.

KF Hemp Corp. ('HempCo'), a wholly owned subsidiary of HTC, owns hemp shredding, handling, drying, sizing and sorting equipment, which have been installed in its hemp processing facility, located in Lajord, Saskatchewan, and boasts a agreements with local IPEliteTM growers, pursuant to which these growers will allocate up to 25,000 acres in future years, for the production of IPGrowTM (identity preserved) Industrial Hemp. The IPEliteTM growers will select ideal ground for hemp production and implement the optimal fertility package and crop protection program for high yielding biofibre, hemp seeds and high cannabinoid hemp flower biomass.

Hemp Processing (Canada) - HTC has entered into a strategic business partnership and letter of intent with TruExtracts (Canada) Inc. ('TruE'), whereby HTC will own 49% of a subsidiary of TruE named TruExtracts (Regina) Inc ('TrueRegina'). TrueRegina will operate out of a 7,000 square foot, leased and previous Health Canada Licensed facility in Regina. The extraction, refining and formulation equipment will be provided by HTC, under a shareholder loan repayment arrangement. The agreement in place allows HTC the option to utilize 50% of the extraction, refining, formulating, and packaging capacity of the facility to toll process its own viable biomass.

Hemp Processing (California) - California based, Kase Farma Inc. ('Kase Farma'), a wholly owned subsidiary of HTC, has received and commissioned equipment that is capable of processing and distilling 10,000 lbs. per day of dried biomass at its 'IPEliteTM Extraction' operation in Ceres, California. Kase Farma has launched its Identity Preserved, or IPGrow, initiative, for the wholesale and retail markets, under the brand of 'Kase One - One Life; One Plant'. In addition, Kase Farma has aligned itself with highly regarded hemp growers in California's Central Valley who will provide high performance, IPGrow, superior, genetic specific production for its custom designed cannabinoid formulations.

Looking to the Future

HTC has received preliminary approval from its board of directors to determine and present a viable strategy that would involve the spinout of HTC's Delta CleanTech Division into a stand-alone entity, to be owned by the shareholders of HTC and strategic industry and financial partners. Management expects this strategy to be presented, approved, and adopted by HTC's board of directors and implemented, subject to regulatory approval, by December 31, 2020.

Contact:

Jeff Allison

Tel: (306) 352-6132

Fax: (306) 545-3262

Email: jallison@htcenergy.com

The information and opinions expressed herein that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that may cause the Corporation's actual results or outcomes to be materially different from those anticipated and discussed herein. In assessing forward-looking statements contained herein, readers are urged to read carefully all cautionary statements contained herein and accompanying MD&A and Financial Statements, and in those other filings with the Corporation's Canadian regulatory authorities as found at 'www.SEDAR.com' and to not put undue reliance on such forward-looking statements. Forward looking statements in this news release include statements with respect to: the expected performance of the Corporation's business and operations and the Corporation's intentions to expand its business and operations; the Corporation's expectations regarding revenue, expenses and anticipated cash needs; the Corporation's plans to expand its extraction capabilities; the ability of the Corporation to meet consumer demand; the ability of the Corporation to execute on its strategic priorities and objectives; the size of the market that the Corporation operates in; the Corporation's business strategy for the extraction and purification of hemp biomass; the receipt of all necessary regulatory and other third-party approvals to conduct its CBD extraction operations; future processing expectations; the Corporation's ability to enter into new hemp biomass tolling agreements; the Corporation's ability to create sales and distribution channels; expectations regarding the future operations and objectives of Kase Farma, Inc. Although HTC's management ('Management') believes that the expectations reflected in the forward-looking statements are reasonable, Management cannot guarantee future results, levels of activity, performance or achievements, or other future events. Forward-looking statements in this news release speak only as of the date on which they are made and Management is under no duty to update any of its forward-looking statements after the date of this news release, other than as required and governed by applicable securities laws.

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