Cleantek Industries Inc. Updates Intellectual Property Rights and Litigation Process

Calgary, Alberta–(Newsfile Corp. – August 15, 2022) – Cleantek Industries Inc. (TSXV: CTEK) (“Cleantek” or the “Company“) is pleased to provide an update with respect to 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 the operating cost and carbon intensity in the wastewater management and industrial lighting sectors across 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 report 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 compliments its Crown Lighting patent portfolio from the United States Patent and Trademark Office. The ‘121 Patent covers the mounting of lights to the crown of a drilling rig for the purpose of site lighting. The Company believes this development materially strengthens its position in the pending litigation, summarized below.

Litigation Update

Litigation remains ongoing related to alleged patent infringement by Cleantek on a small fraction of the Company’s installed HALO™ lighting units in the United States. The Company has fully responded to the asserted claim and filed a counterclaim, with the litigation expected to proceed to trial 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 Complaint for Infringement and Request For Preliminary Injunction

Cleantek’s wholly-owned subsidiary in the United States, Apollo Lighting Solutions, Inc. (“Apollo”), through its counsel, filed a Complaint for Patent Infringement and Request For Preliminary Injunction against the same competitor referenced above in the U.S. District Court for the Western District of Texas on July 19, 2022. This request alleges significant 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 that a ruling on the preliminary injunction would likely be handed down in the next six months.

Cleantek believes in the strength 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. “While we continue to vigorously defend this meritless patent infringement lawsuit and enforce our patents, Cleantek’s primary focus remains the execution of our business strategy and delivering on our commitment to provide cost-effective, low carbon intensity equipment and technology to the market.”

About Cleantek

Cleantek is a clean energy technology company focused on innovative site-based solutions that reduce the environmental footprint and operating cost of industrial operations across North America. Cleantek has developed and commercialized its patented wastewater dehydration technology, the ZeroE™, which it rents to its customers for use at gas processing facilities and drilling rigs to materially reduce wastewater volumes and the cost and footprint of managing those 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 using traditional means. The ZeroE™ technology is powered by the waste heat generated from the engine exhaust of gas plants and drilling rigs. Complimenting Cleantek’s ZeroE™ technology is a suite of low carbon LED Lighting & Optics systems including its patented Solar Hybrid lighting systems and HALO™ Crown mounted lighting systems.

Forward-Looking Statements

This news release contains certain “forward-looking statements” including, for example, statements relating to expected Cleantek’s revenue and margin growth, the expected deployment of the Company’s assets and financial position. Such forward-looking statements involve risks and uncertainties, both known and unknown. The results or events depicted in these forward-looking statements may differ materially from actual results or events. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding and are implicit in, among other things: progress and outcome(s) of the ongoing litigations relating to Intellectual Property, receipt of regulatory approvals, the state of the capital markets, the state of market fundamentals, the ability of the Company to successfully manage the risks inherent in pursuing business opportunities in the oilfield services industry, and the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner to develop its business. Any forward-looking statement reflects information available to Cleantek as of the date of this news release and, except as may be required by applicable securities laws, Cleantek disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

Matt Gowanlock, President & Chief Executive Officer

Orson Ross, Chief Financial Officer

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 news release.

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