AXE Acceleware Ltd

Acceleware Ltd. (“Acceleware” or the “Company”) (TSX-V: AXE), a leading innovator of transformative technologies targeting the decarbonization of industrial heating, is pleased to announce that it has been awarded Phase 2 of a potash ore drying project by the International Minerals Innovation Institute (IMII). The new project phase will advance Phase 1 work and is intended to further validate the use of radio frequency (RF) energy from Acceleware’s Clean Tech Inverter (CTI) to dry potash ore and other minerals. IMII is a non-profit organization jointly funded by industry and government that is committed to developing and implementing innovative education, training, research and development partnerships for supporting a world-class minerals industry. IMII’s minerals industry members include BHP, Cameco Corporation, Fission Uranium Corp., The Mosaic Company and Nutrien Ltd..

Following a successful IMII Exploring Innovations Program project, which validated the potential for RF energy from the CTI to dry potash ore, Acceleware was invited to submit a subsequent proposal for additional project work. Phase 2 development includes the design, construction, and testing of prototype CTI-powered dryers at increasing scale. Objectives include validating the effectiveness of the technology and optimizing the dryer design. Subsequent phases will focus on increasing the scale of the systems to support commercial production levels. The initial stage of Phase 2 includes the construction and testing of a 100 kilogram per hour drying system, and the final stage involves the development and testing of a larger (maximum 5 tonnes per hour) dryer upon successful completion of the 100 kilogram per hour tests. The overall project is intended to confirm that RF energy from the CTI can effectively and efficiently dry potash ore.

Acceleware’s CTI drying platform is expected to lower operating costs while significantly reducing greenhouse gas (GHG) emissions levels. Upon successful completion of Phase 2, IMII may continue development into Phase 3, which could include construction and testing of a small commercial scale dryer with a 30 tonne per hour capacity. A subsequent Phase 4 could include the construction and testing of a full commercial scale dryer with a capacity of up to 130 tonnes per hour.

Published reports put the industrial dryer market at US$3.5 billion in 2022, growing to US$4.7 billion in 20261. Acceleware’s analysis of the dryer market for the mining sector indicates a US$1 billion opportunity for low emissions dryers over the next 10 years.

“The Acceleware team is excited to get to work on the next phase of this project, which will essentially prove out the concept of CTI electrification to decarbonize the drying of potash ore and other mineral commodities at large-scale,” said Geoff Clark, Chief Executive Officer of Acceleware. “We believe that we have cracked the code, so to speak, for the use of solid-state electromagnetic energy for industrial scale heating and drying applications and are looking forward to demonstrating the many benefits resulting from this game-changing decarbonization project. The CTI could make significant GHG emissions reductions, alongside economic benefits for the mining industry. We look forward to next steps and are specifically pleased to be working with IMII and its world-class potash members.”

“As a member of IMII, we are pleased to support Phase 2 of the pilot. Achieving net zero scope 1 emissions is one of the largest decarbonization challenges for conventional potash producers. The CTI technology being developed has the potential to play an exciting role in decarbonizing potash processing and could provide a pathway to reduced scope 1 emissions,” said Kathlene Jacobson, Principal Innovation, BHP. Added Al Shpyth, IMII’s executive director, “A CTI commercial-scale drying platform with lower operating costs could present an opportunity for a sustainability win for the minerals industry, reducing energy and improving economics, while lowering GHGs. As the minerals industry shifts focus to innovative solutions for a lower environmental footprint, we see economic benefits and sustainability going hand-in-hand in many instances and are actively seeking out those opportunities.”

Acceleware’s patented CTI is unique in its ability to economically decarbonize industrial heating applications even at very large scale. A commercial scale drying platform for mining will augment Acceleware’s portfolio of decarbonization applications. Currently, Acceleware is in final phases of testing at its commercial scale pilot for electrification of heavy oil production via RF XL, the first of several industrial heating applications that Acceleware is commercializing.

Additional work is underway at Acceleware for decarbonization of other heavy emitting industrial heating applications that will play a critical role in a successful energy transition, including agricultural drying and the production of hydrogen via methane pyrolysis.

About IMIIIMII is a non-profit organization jointly funded by industry and government and is committed to developing and implementing innovative education, training, research and development partnerships for supporting a world-class minerals industry.

IMII serves as an Innovation Steward to strengthen the Saskatchewan minerals industry’s competitiveness and growth through Research, Development & Demonstration and Education & Training to drive the future’s Qualified & Representative Workforce.

About AccelewareAcceleware is an advanced electromagnetic (EM) heating company with highly scalable EM solutions for large industrial applications. The Company’s solutions provide an opportunity to economically electrify and decarbonize industrial heating processes previously considered difficult to abate, which could have a significant impact on global GHG emissions.

Acceleware is piloting RF XL, its patented low-cost, low-carbon EM thermal production technology for heavy oil and oil sands that is materially different from any heavy oil recovery technique used today. The Company is also working with a consortium of world-class potash partners on a pilot project using its patented and field proven Clean Tech Inverter (CTI) to decarbonize drying of potash ore and other minerals. Acceleware is actively developing partnerships for EM heating of other industrial applications in mining, steel, agriculture, cement, hydrogen and other clean fuels.

Acceleware and Saa Dene Group (co-founded by Jim Boucher) have created Acceleware | Kisâstwêw to raise the profile, adoption, and value of Acceleware technologies. The partnership is intended to improve the environmental and economic performance of industry by supporting ideals that are important to Indigenous peoples, including respect for land, water, and clean air.

Acceleware is a public company listed on Canada’s TSX Venture Exchange under the trading symbol “AXE”.

Disclaimers

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, “anticipates”, “plans”, “continues”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations or negatives of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might”, “shall” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

In this news release, forward-looking statements relate to, among other things, statements relating to the benefits of CTI electrification, future development plans and timing, prospective applicability of CTI drying to mining and other industries, application and market potential of CTI, and market size. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Company. The material facts and assumptions include initial studies of applicability of CTI technology to mining applications are accurate, third party estimates of market size are correct, and the timeline estimates are reasonable. Actual results may vary from the forward-looking information in this news release due to certain material risk factors. The Company cautions the reader that the above list of risk factors is not exhaustive and additional risk factors risk factors are described in detail in Acceleware’s continuous disclosure documents, which are filed on SEDAR at www.sedar.com. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Due to the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

For further information:Geoff Clark, CEOTel: +1-403-249-9099geoff.clark@acceleware.com

Acceleware Ltd.435 10th Avenue SECalgary, AB, T2G 0W3 CanadaTel: +1-403-249-9099www.acceleware.com

1 Valuates Reports: “Global Industrial Driers Market Research Report 2023”