Cleantek Industries: 2022 Intellectual Property and Litigation Update Press Release


Calgary, Alberta – August 15, 2022 – Cleantek Industries Inc. (“Cleantek“or the”Company“) is pleased to provide an update regarding its work to secure intellectual property rights relating to its HALO™ lighting system and related litigation in the United States. Cleantek is an innovative provider of patented clean technology solutions focused on reducing both cost and carbon intensity in the wastewater management and industrial lighting sectors in North America Cleantek is a publicly traded company listed on the TSX Venture Exchange under the trading symbol “CTEK” .

United States Patent Office grants patent to Apollo Lighting Solutions, Inc.

Cleantek is pleased to announce that its wholly-owned U.S. subsidiary, Apollo Lighting Solutions, Inc. has received a newly issued patent, U.S. Patent No. 11,391,121 (“the ‘121 Patent”), which further complements its patent portfolio. Crown Lighting from the United States Patent and Trademark Office. The ‘121 patent covers the mounting of lights on the crown of a drilling rig for the purpose of illuminating the site. The Company believes that this development significantly strengthens its position in the ongoing litigation, summarized below.

Litigation Update

The litigation remains pending related to Cleantek’s alleged patent infringement on a small fraction of the HALO™ lighting units installed by the company in the United States. The Company has fully responded to the asserted claim and filed a counterclaim, with litigation to be adjudicated in October 2022. Cleantek continues to believe that it is well positioned to prevail in this litigation and looks forward to the opportunity to defend its position at trial after which it intends to vigorously pursue its counterclaim.

Apollo Lighting Solutions Inc. Files Infringement Complaint and Request for Preliminary Injunction

Cleantek’s wholly-owned subsidiary in the United States, Apollo Lighting Solutions, Inc. (“Apollo”), through its attorney, has filed a patent infringement complaint and a request for a preliminary injunction against the same above-mentioned competitor in the U.S. District Court for the Western District of Texas on July 19, 2022. This claim alleges material infringement of Apollo’s ‘121 patent. If successful, the competitor would be prevented from mobilizing units for new contracts in the United States. The Company expects a decision on the preliminary injunction to be rendered likely within the next six months.

Cleantek believes in the strength of its intellectual property portfolio and will continue to vigorously defend it on behalf of its shareholders.

“We are confident in our ability to defend the claims made against us and believe our latest filing will confirm Cleantek’s ability to successfully enforce our patent portfolio,” said Cleantek CEO Matt Gowanlock. “As we continue to vigorously defend this baseless patent infringement action and enforce our patents, Cleantek’s primary focus remains the execution of our business strategy and fulfilling our commitment to provide the market with equipment and cost-effective, low-carbon technologies.”

About Cleantech

Cleantek is a clean energy technology company focused on innovative on-site solutions that reduce the environmental footprint and operating costs of industrial operations in North America. Cleantek has developed and commercialized its patented wastewater dehydration technology, the ZeroE™, which it leases to customers for use in gas processing facilities and drilling rigs to significantly reduce waste volumes. wastewater and the cost and footprint of managing these volumes. Cleantek’s ZeroE™ technology separates wastewater into (i) clean water which is evaporated and returned to the natural hydrological cycle and (ii) concentrated brine which is disposed of by traditional means. ZeroE™ technology is powered by waste heat generated by engine exhaust from gasworks and drilling rigs. Cleantek’s ZeroE™ technology is complemented by a suite of low-carbon LED lighting and optics systems, including its patented solar-hybrid lighting systems and HALO™ crown-mounted lighting systems.

Forward-looking statements

This press release contains certain “forward-looking statements”, including, for example, statements relating to Cleantek’s expected revenue and margin growth, the expected deployment of assets and the Company’s financial condition. Such

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forward-looking statements involve known and unknown risks and uncertainties. The results or events described in these forward-looking statements may differ materially from actual results or events. In addition to other factors and assumptions that may be identified herein, assumptions have been made regarding and are implied by, among other things: the progress and outcome(s) of pending intellectual property litigation, the receipt of regulatory approvals, the state of the financial markets, the state of market fundamentals, the Company’s ability to successfully manage the risks inherent in pursuing business opportunities in the oil services industry, and the Company’s ability to obtain qualified personnel, equipment and services in a timely and cost effective manner to grow its business. Any forward-looking statement reflects information available to Cleantek as of the date of this press release and, except as required by applicable securities laws, Cleantek disclaims any intention or obligation to update any forward-looking statement, whether as a result of future or other new information, events or results.

Matt Gowanlock, President and CEO

E-mail: [email protected]

Orson Ross, Chief Financial Officer

E-mail: [email protected]

Cleantek Industries Inc.

Tel: 403-567-8700

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

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