Update on Partnership with Potencia

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CALGARY, AB (August 5, 2020) – Exro Technologies Inc. (CSE:XRO; OTCQB: EXROF), a leading technology company which has developed a new class of power electronics for powertrains, is pleased to provide an update on our partnership with Potencia Industrial, S.A. DE C.V. (“Potencia”).

Exro and Potencia are working together to accelerate the transition to commercial electric vehicles with novel new powertrain technologies. The motor driver integration program is a multi-stage project where Exro is providing the Motor Driver to be tested and validated in Potencia’s world class facility in Mexico City.  The first stage of the project has now been delivered. The Exro Customized Driver will be used as the inverter for the Pronto Power Flexible Powertrain.  Once this phase is validated, Exro will then supply a Coil Switching Driver in November of this year that will enable maximum efficiency and powertrain performance for the application.  This Coil Driver supports Potencia’s growing position in the commercial fleet and government vehicle electrification programs.

The Customized Driver was delivered at the end of June and is now undergoing rigorous testing at Potencia. “We’re excited to confirm that the driver has been received and testing has begun on the unit. Our expectation is to complete testing by the end of October. Exro has delivered and we look forward to continuing to strengthen our relationship.” Tomas Gottfried, Technical Director at Potencia.  After Potencia’s internal testing is complete, the driver will be installed in a vehicle and road tested. This will provide the first on road application for Exro.

Potencia is dedicated to enabling Mexico’s transition to electric vehicles. They design and manufacture special application, high efficiency electrical motors and generators. Specializing in creative solutions and applications, the new Pronto Power division is a vertically integrated business unit supported by Potencia’s more then fifty years of manufacturing background.  With over one million miles of driving distance, the flexible powertrain is leading the transition of fleet and municipal vehicles in Latin America.

“This is a major milestone for Exro and we are excited to continue working with the team at Potencia to validate our technology.  Despite some delays, we are pleased to have delivered the Driver and to continue our development efforts.  Exro is just beginning to take our place in the power electronics market and is setting a new standard for inverter performance.  Working together, our joint technologies will transform the transition to electric vehicles.” commented Sue Ozdemir, CEO of Exro.

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About Exro Technologies Inc.

Exro is a Clean Tech company that has developed a new class of control technology for electric powertrains.  Exro’s advanced motor control technology, our “Coil Driver”, expands the capabilities of electric motors and powertrains. The Coil Driver enables two separate torque profiles within a given motor. The first is calibrated for low speed and high torque, while the second provides expanded operation at high speed. The ability to change configuration allows efficiency optimization for each operating mode, resulting in overall reductions in energy consumption. The controller automatically and seamlessly selects the appropriate configuration in real time so that torque demand and efficiency are optimized.

The limitations of traditional electric machines and power technology are becoming more evident. In many increasingly prominent applications, traditional methods cannot meet the required performance. This means either oversizing the equipment, adding additional motors, or implementing heavy mechanical geared solutions. Exro offers a new solution for system optimization through implementation of its technology which can yield the following results: increased drive cycle efficiency, reduced system volume, reduced weight, expanded torque and speed capabilities. Exro allows the application to achieve more with less energy consumed.

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

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ON BEHALF OF THE BOARD OF DIRECTORS

Sue Ozdemir, Chief Executive Officer

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CONTACT INFORMATION
Canada: Jake Bouma
VP of Investor Relations
604-317-3936

United States: Vic Allgeier
TTC Group Inc.
646-841-4220

Email: info@exro.com

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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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