AURORA SOLAR TECHNOLOGIES : MANAGEMENT DISCUSSION AND ANALYSIS

AURORA SOLAR TECHNOLOGIES INC.

MANAGEMENT DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED 30 JUNE 2022 AND 2021

Stated in Canadian Dollars

DATE: 26 AUGUST 2022

TABLE OF CONTENTS
To Our Shareholders......................................................................................................................................................	1
Forward-Looking Statements ........................................................................................................................................	1
General ..........................................................................................................................................................................	2
Market Position and Development and Impact of the Covid-19 Pandemic ..................................................................	2
Highlights, Significant Events And Transactions During The Period ..............................................................................	4
Significant Events and Transactions During the Period .................................................................................................	5
Significant Events and Transactions Subsequent to the Period End .............................................................................	5
Results of Operations ....................................................................................................................................................	6
Selected Annual Information.........................................................................................................................................	7
Financial Data for Last Eight Quarters ...........................................................................................................................	7
Outstanding Shares .......................................................................................................................................................	8
Liquidity and Financial Condition of the Company........................................................................................................	8
Capital Management .....................................................................................................................................................	8
Off-Balance Sheet Arrangements ..................................................................................................................................	8
Related Party Transactions ............................................................................................................................................	9
Financial Instruments and Risk Factors .........................................................................................................................	9
Other Risk Factors and Uncertainties ..........................................................................................................................	11
Investor Relations Activities ........................................................................................................................................	12
Management ...............................................................................................................................................................	12
Approval ......................................................................................................................................................................	12
A Cautionary Tale.........................................................................................................................................................	13

AURORA SOLAR TECHNOLOGIES INC.

Canadian Dollars

FOR THE THREE MONTHS ENDED 30 JUNE 2022 AND 2021

MANAGEMENT DISCUSSION AND ANALYSIS

TO OUR SHAREHOLDERS

The following information should be read in conjunction with the unaudited Condensed Interim Consolidated Financial Statements of Aurora Solar Technologies Inc. ("the Company", or "Aurora") for the three months ended 30 June 2022 and 2021, and the related notes attached thereto, which were prepared in accordance with International Financial Reporting Standards ("IFRS"). This discussion covers the three months ended 30 June 2022 and 2021 and the subsequent period up to the date of the issuance of this MD&A. All amounts are expressed in Canadian dollars, unless otherwise indicated.

Additional information about the Company, including the audited annual Consolidated Financial Statements, and the notes thereto, for the years ended 31 March 2022 and 2021, prepared in accordance with IFRS, can be found on SEDAR at www.sedar.com.

Discussion of the Company, its operations and associated risks are further described in the Company's filings, available for viewing at www.sedar.com. A copy of this Management Discussion and Analysis ("MD&A") will be provided to any applicant upon request.

FORWARD-LOOKINGSTATEMENTS

Certain statements contained in this MD&A may be deemed to be "forward-looking statements". All statements in this discussion other than statements of historical facts, that address future events or developments that the Company expects, are forward-looking statements. Forward-looking statements reflect current expectations of management regarding future events and operating performance as of the date of the MD&A. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, investors are cautioned that such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Such information involves significant risks and uncertainties and will not necessarily be accurate indications of whether such results will be achieved. Factors that could cause actual results to differ materially from those in forward-looking statements, including but not limited to market prices, regulatory approvals, continued availability of capital and financing, and the risks related to general economic, market or business conditions.

Forward-Looking

Key Assumptions

Most Relevant Risk Factors

Information

Future Funding for	The Company will be able to generate or
Ongoing Operations	raise these funds.

The Company will be unable to raise these funds, which will materially impact the Company's ability to continue as a going concern.

Favourable	The economy, including geopolitical	Economic	conditions,	including	the
Economic Conditions	tensions with tariffs and national	continued impact from the Covid-19
	government policies in Canada, the	pandemic, move in a negative direction
	United States, Europe, and China will	causing changes to supply and demand,
	move in a direction that will support the	affecting customer sales and future
	worldwide PV solar market.	production decisions.
Product Acceptance	The risk that the Company's current	Continued impact of Covid-19 pandemic
	products and next generation of	limiting access to customer sites,
	technology might not be successful.	commissioning	challenges	and/or
		incremental technical development may be
		required	before	customer	adoption	of its

products or customer specific risks for product acceptance.

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AURORA SOLAR TECHNOLOGIES INC.

Canadian Dollars

FOR THE THREE MONTHS ENDED 30 JUNE 2022 AND 2021

MANAGEMENT DISCUSSION AND ANALYSIS

GENERAL

The Company was incorporated under the laws of the Province of British Columbia, Canada on 26 October 2006 as Pulse Capital Corp, a capital pool company. On 7 November 2011, it acquired Aurora Control Technologies Inc. through a reverse takeover and initiated its current business operations. The Company, together with its subsidiary, develops and markets inline quality control systems for the solar cell manufacturing industry. These products measure and display the results of critical cell fabrication processes, revealing material properties and the performance of manufacturing tools and processes. They allow process engineers and production-line operators to rapidly detect and correct process excursions, material faults and optimize processes, with the goal to aid our customers' efforts to increase throughput, yield, and profit in their manufacturing operations.

Solar cells are the electricity-generating elements within solar panels, which are seen on rooftops, streetlights and large-scale "solar farms" throughout the world. The Company provides solar cell manufacturers with products to characterize, control and optimize the quality-critical steps in their manufacturing processes. Aurora directly markets these products to its customers.

Solar cells are made from silicon wafers. Certain chemicals, applied to create layers in or on a silicon wafer during manufacturing, transform the wafer from an inert substrate to an energy-generating cell. The concentration, uniformity and other properties of these layers are critical to the finished cell's performance. To achieve their high electrical efficiencies, advanced solar cells require strict control of variations in these and other critical-to-quality treatments during manufacturing. Aurora's products provide the means to measure these variations, understand their impact on production yield and throughout, and control or optimize production processes to reduce negative effects.

Within the overall solar cell manufacturing industry, Aurora's customers are those who fabricate solar cells using mainstream Passivated Emitter and Rear Contact ("PERC") technology, and advanced designs such as Tunnel Oxide Passivated Contact ("TOPCon") and heterojunction technology (HJT) cells.

Control and optimization of solar cell production starts with measurement. Aurora's DMTM and TCMTM products use proprietary patented technology, based on the principles of infrared spectroscopy, to measure the properties of the afore-mentioned solar cell chemical layers as they are deposited and annealed.

Our VisualizeTM software then uses the real-time data provided by our DM and TCM measurement products to show the relationship between the per-wafer measurements and the changing spatial variations in chemical layer properties induced by variations in the behaviour of manufacturing equipment used to create these layers. This spatial view of process tool performance provides the means to perform diagnostics, control, and equipment optimization quickly and effectively.

Our newest product, InsightTM, is a "data science" package that extends our product portfolio, from measurement and characterization of equipment variation, to provide a deep understanding of the effects of these variations on finished cell efficiency. This proprietary product analyses the large volume of data available from the sequence of finished solar cells in a production line and reveals the links between unwanted variations in their efficiency and the causes in production. These analyses allow advanced cell manufacturers to know precisely when and how to control their production for optimal yield and throughput, allowing them to increase their profits.

The address of the Company's corporate and administrative office and principal place of business is #100 - 788 Harbourside Drive, North Vancouver, BC, V7P 3R7.

MARKET POSITION AND DEVELOPMENT AND IMPACT OF THE COVID-19PANDEMIC

Aurora focuses on top-tier solar cell manufacturers that value the benefits of the Company's in-line measurement and control systems and that have known capacity expansion plans. More than 80 percent of the world's solar cell manufacturing is conducted by Chinese companies. In fiscal 2019 Aurora therefore initiated actions to assertively

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AURORA SOLAR TECHNOLOGIES INC.

Canadian Dollars

FOR THE THREE MONTHS ENDED 30 JUNE 2022 AND 2021

MANAGEMENT DISCUSSION AND ANALYSIS

develop business in China. The Company established a sales and service facility in Shanghai, developed a variant of our DM measurement system that is focused on unique Chinese market needs, increased the number of field trials (a necessary precursor to sales), and recruited successful and respected market partners in China to increase order flow.

All but one of the orders received by the Company since fiscal 2019 are from large Chinese manufacturers or automation system providers, and most of them were for the new DM-110 series for China. These orders followed field trials initiated during fiscal 2019 and came from a mixture of sales developed directly by Aurora and in cooperation with our market partners in China, most notably Saratoga Technology International. In the fiscal years ended 2020 and 2021 the Company delivered a large quantity of DM measurement systems from these past orders to numerous different customers in China. During the three months ended 30 June 2022, there were no DM sales resulting in $Nil revenue generated.

On 11 March 2020, the coronavirus outbreak ("Covid-19") was declared a pandemic by the World Health Organization. Since then, global government measures to contain and prevent the further spread of the virus have evolved rapidly, resulting in strict international travel restrictions, stay-at-home advisories and quarantining of persons who may have been exposed to the virus. These measures have had a dramatic impact on the global economy.

In this context, Aurora places a high priority on the health and safety of its employees and their families. The Company follows the order of the provincial health officer and continues to modify the work environment to comply with all provincial and federal health authority regulations.

The international travel restrictions to contain the spread of Covid-19 have had, and continue to have, a material impact on the Company's operations including business development to secure new orders, and activities to complete the installation, commissioning and customer training for systems that have been delivered to its international customers. While Aurora has staff located in China, the Company has been prevented from sending senior technical staff to customer sites as required to complete installations, conduct diagnostic analysis for variable customer-specific operating issues and to commission DM systems. In addition, the Company has also been impacted with longer than normal lead times with its international supply chain due to the pandemic. This has hindered the ability to timely train and provide technical expertise to customers to identify and resolve operating issues across the scope of new installations, implement product enhancements as needed, and to introduce the Insight product. Aurora has final payment obligations associated with timely installation and commissioning of these systems, and these challenges may impact customer objectivity in the Company's efforts to achieve final acceptance.

Notwithstanding the above, the Company is taking a proactive and systematic approach to resolve these matters, including product performance refinements, operational enhancements, and customer education and training. Despite the pandemic-related travel and supply chain challenges, the performance of the DM products has steadily improved to accommodate the customer application challenges, providing a positive pathway to completing the commissioning processes. As a result of these efforts, 24 systems were conditionally accepted by one customer, with a portion of the final acceptance funds being received in the fiscal year ended 31 March 2022. In addition, the Company continues product development to provide further functionality in its DM and TCM products for existing customer applications and for future sales.

The Company's product development efforts also provide benefits by preparing the DM and TCM products for the next generation of solar cells, particularly Heterojunction Technology ("HJT") and Tunnel Oxide Passivated Contacts ("TOPCon") cells. These are the leading contenders for the next generation of solar cell designs for volume manufacturing and deployment. Each of these technologies promise a relative efficiency improvement of four percent (4%) or more over the established PERC technology. Pilot and/or full-scale production of HJT and TOPCon solar cells is already underway at leading solar cell manufacturers.

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