Acceleware Ltd. Reports Second Quarter 2026 Financial and Operating Results

Calgary, Alberta--(Newsfile Corp. - August 28, 2026) - Acceleware® Ltd.(TSXV: AXE)("Acceleware" or the "Company"), today announced its financial and operating results for the three and six months ended June 30, 2026 (all figures are in Canadian dollars unless otherwise noted). This news release should be read in conjunction with the Company's unaudited interim condensed financial statements and the accompanying notes for the three and six months ended June 30, 2026, and management's discussion and analysis ("MD&A") thereto, together with the audited financial statements for the year ended December 31, 2025, notes and MD&A thereto, all of which are available on Acceleware's website at www.acceleware.com or on www.sedarplus.ca.

HIGHLIGHTS

• Acquired 35 net sections of heavy oil assets located in the Mannville Stack in Saskatchewan on June 1, 2026 including 16 barrels of oil per day ("bopd") of working interest production.

• Submitted two enhanced oil recovery applications with the Saskatchewan Ministry of Energy and Resources for the commercial deployment of RF XL 2.0.

• Completed a milestone in the Phase 3A IMII potash dryer prototype and received $65 thousand payment which is recorded as deferred revenue. Deferred revenue will be recognized when all contract performance obligations are met.

• Subsequent to June 30, 2026:

  • executed an agreement with Clean Resource Innovation Network ("CRIN") securing up to $2 million in non-dilutive funding for RF XL 2.0 demonstration in Saskatchewan.

  • completed a further milestone in the Phase 3A IMII potash dryer prototype and received a further $65 thousand payment.

  • signed a feasibility contract with a major international mining company applying RF heating to a critical mineral process. The contract amount is US$202 thousand, and the Company has received US$101 thousand to date.

Financial Highlights

Operating Highlights
Acceleware's goal is to enhance global resource development by helping producers increase production and reduce operating costs by using the Company's innovative electromagnetic RF heating applications. Global interest in critical minerals applications continues to grow, with international companies funding technology evaluations as they seek solutions that can improve process performance while reducing energy consumption and emissions.

Heavy Oil with RF XL 2.0
During Q2 2026 the Company materially added to its portfolio with the acquisition of 35 net sections of heavy oil assets located in the Mannville Stack in Saskatchewan from a private oil and gas company. The Company paid $100 thousand cash and granted a gross overriding royalty on future production. Included in the acquired assets were one horizontal well in the Rex zone producing 16 bopd working interest before royalties and another horizontal Rex well requiring a workover. Each well includes associated surface leases and infrastructure. The acquisition provides a low-cost, scalable entry point into a heavy oil resource base aligned with multi-well RF XL 2.0 development. In addition to the $100 thousand cash purchase price, the Company assumed decommissioning liabilities estimated by Management to have a present value of $48 thousand as at June 30, 2026.

The assets acquired provide Acceleware with a combination of existing production and undeveloped upside, enabling the Company to pursue a multi-pronged development approach. Initial plans include maintaining production from the Rex zone, while evaluating production enhancing opportunities in the existing wells. Next, the Company intends to advance subsurface and reservoir characterization across the stacked Mannville intervals, while completing necessary regulatory and environmental baseline work. Subsequent phases are expected to include drilling new wells using the latest cold-flow well designs including multilateral and single lined lateral high-rate circulation ("circ. string") while designing an RF XL 2.0 development plan targeting multiple zones. Based on reservoir characteristics identified to date, Acceleware believes select Mannville Stack intervals represent strong candidates for RF XL 2.0 recovery.

The acquisition is a strong complement to Acceleware's two signed Saskatchewan farm-in agreements. The Company is moving ahead with the RF XL 2.0 Pilot at one of two Saskatchewan farm-in locations and has begun the application process with the Saskatchewan Ministry of Energy and Resources at both locations. Detailed design of the surface lease and well planning has commenced.

The Company is also working in parallel to secure funding. Accordingly, the Company is in discussion with several potential industry and government funders. Acceleware has confirmed that the expected cost to complete the RF XL 2.0 Pilot would be approximately $5 million to $6 million including contingency. Subsequent to June 30, 2026, Acceleware and CRIN executed an Ultimate Recipient Agreement to finalize up to $2 million in grant funding for the RF XL 2.0 Pilot. Funding applies to eligible project costs from January 1, 2026 to September 30, 2027. The program is funded by Canada's Strategic Innovation Fund.

In addition, the Company has received conditional approval from the Saskatchewan Petroleum Innovation Incentive ("SPII") program. The SPII program would provide a transferable royalty credit equal to 25 percent of eligible project costs (including capital costs and the first two years of operating costs) from a future RF XL 2.0 Pilot carried out in the province. Approval is conditional on entering into a project agreement with Saskatchewan Ministry of Energy and Resources within two years.*

The RF XL 2.0 design is complete and ready for manufacturing and deployment. RF XL 2.0 includes a new, fully sealed, continuous tubing based sub-surface design developed by Acceleware. It eliminates the possibility of water ingress through a robust leak-proof design, dramatically simplifies deployment, and reduces per well capital costs by an estimated 30 percent compared to RF XL 1.0 as deployed at the Marwayne pilot. Further benefits of RF XL 2.0 include reduced manufacturing costs; reduced well design and well completion costs; quicker well completion time; simpler and less costly wellhead design; and a safer wellhead operating environment.

Critical Minerals and Amine Regeneration
In Q2 2026, the Company continued to work with the International Minerals Innovation Institute (IMII) and its participating members on a Phase 3A project for the design, construction and testing of a new, larger-scale prototype dryer for potash and potash fines. IMII's minerals industry members include BHP, Cameco Corporation, Mosaic Company, Nutrien Ltd., Fission Uranium Corp., and The Uranium Corp. Acceleware also continued work on BHP mining projects with additional follow-on work expected in 2026. Subsequent to Q2 2026, Acceleware signed a new agreement for a new feasibility study for a mining application. In Amine regeneration, discussions on potential Canadian and European Union collaboration and partnerships to further develop the technology progressed meaningfully in Q2 2026.*

Financings
On April 7, 2026, the Company significantly improved its capital structure by restructuring outstanding debt owed to the 10% unsecured convertible debenture holders in the aggregate amount of $2,453,640, which amount represents the total principal outstanding plus accrued and unpaid interest. A portion of the debt was settled with units of the Company, through a shares-for-debt transaction, at a price of $0.10 per unit, and the remainder with new convertible debentures with substantially the same terms as the expiring.

Acceleware issued a total of 12,688,589 units. Each unit issued consists of one common share in the capital of the Company and one common share purchase warrant of the Company. Each warrant entitles the holder thereof to acquire one Common Share at $0.20 for a period of two years from the date of issuance of the warrant. In the event that the common shares trade at a closing price at or greater than $0.30 per common share for a period of thirty consecutive trading days, the Company may accelerate the expiry date of the warrants by giving notice to the holders thereof, and in such case, the warrants will expire on the 30th day after the date on which such notice is given.

Acceleware issued replacement convertible debentures in the principal amount of $1,184,781. Each replacement convertible debenture has a maturity date of April 7, 2030, and a conversion price of $0.15, subject to certain adjustments. Each replacement convertible debenture will be convertible into units consisting of one common share and one-half of one warrant. Each whole warrant will entitle the holder thereof to one common share at an exercise price of $0.30 per common share for a period of two years from the date of issuance, subject to certain adjustments. In addition, Acceleware has the right, at its sole discretion, to require the conversion of the replacement debentures into units if, at any time, the 30-day volume weighted-average trading price of the common shares equals or exceeds $0.195.

QUARTER IN REVIEW
Acceleware initiated crude oil sales starting in June of 2026. Overall spending in Q2 2026 remained conservative as the Company sourced demonstration sites and financing alternatives for the next phase of the RF XL 2.0 Pilot and continued design and procurement work on a new Phase 3A 200kg per hour potash fines drying prototype requested by IMII. In Q2 2026, the Company continued work on a copper heap leach feasibility study for BHP.

Revenue of $75 thousand was recorded in the three months ended June 30, 2026, compared to $202 thousand in the three months ended June 30, 2025 ("Q2 2025") and $116 thousand in the previous quarter ended March 31, 2026 ("Q1 2026").

Total comprehensive loss for Q2 2026 was $806 thousand compared to a comprehensive loss of $714 thousand for Q2 2025 and comprehensive loss of $730 thousand for Q1 2026. The increase in comprehensive loss in Q2 2026 compared to Q2 2025 was due to lower revenue despite a reduction in R&D expenses. Comprehensive loss in Q1 2026 was higher due to higher R&D spending.

R&D expenses incurred in Q2 2026 were $190 thousand compared to $267 thousand in Q2 2025 and $341 thousand in Q1 2026. The Company received an Alberta Innovation Employment Grant related to 2025 R&D spending of $91 thousand in Q2 2026, which offset gross R&D expenses of $281 thousand (government assistances was $Nil in Q2 2025 and Q1 2026). R&D spending in Q2 2026 and Q1 2026 was related to the IMII dryer for potash ore and included lab engineering, designing and testing, data analysis, and partner consultations, and to further engineering on the next iteration of the RF XL 2.0 Pilot.

G&A expenses incurred in Q2 2026 were $342 thousand compared to $327 thousand in Q2 2025 and $249 thousand in Q1 2026. There were higher professional fees in Q2 2026 related to acquisitions and other agreements. The Company continues to prioritize cost control given uncertain economic conditions.

YEAR TO DATE IN REVIEW
Revenue of $192 thousand was generated in the six months ended June 30, 2026, compared to $633 thousand for the six months ended June 30, 2025. Revenue for the six months ended June 30, 2026 was primarily services revenue related to mining feasibility studies, software and maintenance revenue, and one month of crude oil sales. Revenue for the six months ended 2025 was primarily services revenue related to the previous iteration of the potash dryer, RF XL simulations, and software and maintenance revenue.

Total comprehensive loss for the six months ended June 30, 2026, was $1.5 million compared to comprehensive loss of $1.1 million for the six months ended June 30, 2025. Comprehensive income was higher in the six months ended June 30, 2026, due to lower revenue and higher loss on derivative financial instruments related to the restructured convertible debentures.

R&D expenses for the six months ended June 30, 2026 were $531 thousand compared to $687 thousand incurred during the six months ended June 30, 2025. Government assistance of $91 thousand was recognized in the six months ended June 30, 2026 compared to $nil for the six months ended June 30, 2025. In both periods RF XL 2.0 redesign and testing and IMII potash dryer design and testing dominated R&D activities.

G&A expenses incurred during the six months ended June 30, 2026, were $591 thousand compared to $580 thousand for the six months ended June 30, 2025. The Company continues to prioritize cost management.

As at June 30, 2026, Acceleware had negative working capital of $4.9 million (December 31, 2025 - negative working capital of $6.0 million) including cash and cash equivalents of $75 thousand (December 31, 2025 - $248 thousand). The improvement in working capital is attributable to the restructured maturing convertible debentures.

In the interests of matching cash requirements with a combination of cash generated from operations, external funding, and capital raising activities, the Company actively manages its cash flow and investments in new products. Acceleware intends to maximize cash generated from operations through several initiatives which include continuing to focus on higher gross margin software products that are marketed through a combination of direct and reseller models; minimizing operating expenses where possible; and limiting capital expenditures. As the Company continues to develop its RF Heating technology, new R&D investments will be financed through a combination of internal cash flow from revenue generating products and services, project funding agreements, government assistance and external financing, when available.*

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ABOUT ACCELEWARE:
Acceleware is an advanced electromagnetic (EM) heating technology company offering proprietary radio frequency (RF) power-to-heat solutions that increase production, reduce energy consumption and lower operating costs in large-scale industrial heating.

Its core innovation, the Clean Tech Inverter (CTI), is field-proven through an initial commercial-scale pilot of RF XL, Acceleware's thermal enhanced oil recovery technology designed to increase heavy oil production.

Acceleware is leveraging CTI expertise across sectors to increase production and reduce energy consumption. Three mining projects are underway with major operators, while an amine regeneration project is also in progress.

Acceleware is publicly listed on the TSX Venture Exchange under the symbol "AXE".

NOTE REGARDING FORWARD-LOOKING INFORMATION AND OTHER ADVISORIES

This news release contains "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking information generally means information about an issuer's business, capital, or operations that are prospective in nature, and includes disclosure about the issuer's prospective financial performance or financial position.

The forward-looking information in this press release can be identified by terms such as "believes", "estimates", "plans", "potential", and "will", and includes information about, the expected commercialization of RF XL, the expected cost of the RF XL 2.0 Pilot, the timing of the execution of the RF XL 2.0 Pilot and the redeployment, expected financing required for the RF XL 2.0 Pilot, receipt of the non-dilutive funding from CRIN, completion of the mining feasibility study, delivery of the IMII phase 3A potash dryer prototype and recognition of associated deferred revenue, and the anticipated economic and societal benefits of the RF XL technology. Acceleware assumes that current cost estimates are accurate, current timelines will not be delayed by either internal or external causes, that research and development effort including the commercial-scale test plans will result in commercial-ready products, and that future capital raising efforts will be successful.

Actual results may vary from the forward-looking information in this press release due to certain material risk factors. These risk factors are described in detail in Acceleware's continuous disclosure documents, which are filed on SEDAR at www.sedarplus.ca.

Acceleware assumes no obligation to update or revise the forward-looking information in this press release, unless it is required to do so under Canadian securities legislation.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described in this release in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

DISCLAIMER

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 release.

* this paragraph contains forward looking information. Please refer to "Forward Looking Statements" and "Risk Factors and Uncertainties" for a discussion of the risks and uncertainties related to such information.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/312016

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