Sharc International Systems Inc. announced that it has received unanimous approval from the Massachusetts Board of State Examiners of Plumbers and Gas Fitters for ten PIRANHA pilot sites in the state. This pilot project aims to demonstrate the efficacy of WET across multiple sectors and building types. The Company's application to the Massachusetts Plumber and Gas Fitter Board garnered strong backing from the United Association of Journeymen and Apprentices ("UA") of Massachusetts, an influential union representing approximately 375,000 skilled plumbers, pipe fitters, and other industry professionals across the state.

The UA brings the immense promise of WET heat pump systems such as the PIRANHA and Thermal Energy Networks ("TENs") facilitated by SHARC WET systems in creating transitional job opportunities for these 375,000 tradespeople. As North America advances towards decarbonization and diminishes its reliance on fossil fuels, these innovative technologies are poised to play a pivotal role in reshaping the landscape of sustainable energy solutions. SHARC Energy is already collaborating with a real estate investment trust on a PIRANHA retrofit project, leveraging a 50% cost share from Eversource Energy for a PIRANHA feasibility study under the Massachusetts Save Technical Assistance Program.

The State of Massachusetts is an early adopter of decarbonization strategies and policy, making it an ideal state to expand SHARC Energy's growing footprint. The 2023 legislative session's Future of Clean Heat bill proposes several provisions to authorize, incentive, and finance the transition from gas to non-combusting renewable thermal energy. The bill would allow gas companies to sell thermal energy, install associated infrastructure, meet the "obligation to serve" with thermal energy, establish a thermal transition fund, disallow post-2050 depreciation of new gas infrastructure, and mandate gas utilities to create transition plans to non-combusting thermal energy.

Geo-exchange and WET systems are two technologies that stand to benefit the most from the development of non-combusting TENs. SHARC Energy's WET systems, either standalone or paired with geo-exchange systems, provide for cost-effective, fossil-fuel reducing, resilient, and sustainable solutions in the development of TENs across the state and continent. Moreover, SHARC Energy's systems can qualify for up to 40% in investment tax credits under the Inflation Reduction Act.

It is recommended to discuss potential projects with a tax professional to ensure eligibility. The Company believes these tailwinds will facilitate the widespread adoption of WET in the New England region, given the growing awareness of the Company's solutions among New England utilities. HTS New England, a leading HVAC (Heating, Ventilation, and Air Conditioning) representative in the New England market, is SHARC Energy's representative in the region, providing a strong partner to support the market.

As a pioneering force in the WET industry, SHARC Energy views these developments in Massachusetts as highly encouraging signs for the future growth and profitability of the Company. The Company remains committed to demonstrating its value to both prospective and existing investors as it capitalizes on the expanding opportunities in the WET sector.