RETRANSMISSION: AEGIS and SEETEL Establish Cordelia BESS and submits proposal to Participate in IESO LT2 Capacity Stream Procurement

Rhea-AI Summary

Aegis (OTCQB: QESSF) and Seetel formed Cordelia BESS Inc. and submitted a proposal on December 18, 2025 to participate in the IESO LT2 Capacity Stream (C1).

The submission contemplates a battery energy storage system of approximately 90 MWh at a site adjacent to a Festival Hydro substation in Ontario. The project is at a development and procurement participation stage; no contract award, revenue, or commercial operation is assured and advancement is contingent on IESO evaluation, definitive agreements, and regulatory approvals.

Positive

• Proposal submitted to IESO LT2 on December 18, 2025
• Indicative project size of approximately 90 MWh
• Legally binding joint venture formation with Seetel via Cordelia BESS Inc.
• Site agreement for land adjacent to Festival Hydro substation

Negative

• No contract award, revenue, or commercial operation is assured
• Project advancement contingent on IESO selection and definitive agreements
• Subject to receipt of all required regulatory and commercial approvals
• Competitive and confidential IESO evaluation process may exclude the proposal

Vancouver, British Columbia--(Newsfile Corp. - December 22, 2025) - Aegis Critical Energy Defence Corp. (CSE: QESS) (OTCQB: QESSF) (FSE: JG6) ("Aegis" or the "Company") announces that it has entered into a legally binding agreement with Seetel New Energy Co. Ltd. (Taiwan) (7740.TW) through the formation of Cordelia BESS Inc., an Ontario-incorporated project company established for the purpose of participating in Ontario's grid-scale energy storage market.

Cordelia BESS Inc. has submitted a proposal Thursday, December 18, 2025 in response to the Independent Electricity System Operator's ("IESO") Long-Term 2 ("LT2") Request for Proposals - Capacity Stream (C1). The submission contemplates the potential development of a battery energy storage system ("BESS") project with an indicative size of approximately 90 MWh, subject to the outcomes of the IESO's evaluation process and the satisfaction of all applicable commercial, regulatory, and contractual conditions.

The proposed project site is subject to an agreement with the land holders; the site is located adjacent to an existing Festival Hydro substation in Ontario. The project remains at a development and procurement participation stage, and no contract award, revenue, or commercial operation is assured. Any advancement of the project is contingent upon the IESO's procurement process, the execution of definitive agreements, and receipt of all required approvals.

The LT2 Capacity Stream is part of the IESO's long-term electricity planning framework designed to secure additional dispatchable capacity to support system reliability and meet forecasted demand growth associated with electrification, population growth, and industrial development. Battery energy storage systems are among the resource types eligible to participate in the LT2 procurement, given their ability to provide flexible capacity and grid support services.

Publicly available IESO planning materials indicate that Ontario electricity demand is expected to grow significantly over the coming decades, with forecasts projecting material increases in peak demand and total system requirements by mid-century. The LT2 procurement process is intended to competitively evaluate eligible resources capable of contributing to system reliability under these long-term conditions.

AEGIS cautions that participation in the LT2 procurement does not imply selection, preference, or endorsement by the IESO. All proposals are subject to a confidential, competitive evaluation process conducted independently by the IESO in accordance with its published rules and procedures.

About the Independent Electricity System Operator (IESO)

The Independent Electricity System Operator (IESO) is the Crown corporation responsible for operating and planning the electricity system and wholesale electricity market in the Province of Ontario. Established under the Electricity Act, 1998, the IESO manages Ontario's bulk electricity system and ensures the reliable supply of electricity across the province.

About SEETEL New Energy

SEETEL New Energy Co. Ltd. (7740.TW) is a Taiwan-based manufacturer and systems integrator specializing in high-performance lithium battery modules and energy-storage systems for global industrial and grid applications.

About Aegis Critical Energy Defence Corp.

Aegis Critical Energy Defence Corp. (CSE: QESS) (OTCQB: QESSF) (FSE: JG6) develops and integrates advanced battery energy storage systems for defence, critical infrastructure, industrial, and AI data centre applications. Through strategic partnerships with Indigenous communities and global technology leaders, Aegis delivers rugged, intelligent, and secure energy systems designed for the next generation of mission-critical operations.

Contact Information

Paul Dickson
info@aegiscriticalenergy.com
(604) 283-1262

Forward-Looking Statements

This news release contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Aegis Critical Energy Defence Corp.'s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur.

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/278775

FAQ

What did Aegis (QESSF) and Seetel announce on December 22, 2025?

They announced formation of Cordelia BESS Inc. and a Dec 18, 2025 proposal to IESO LT2 for a ~90 MWh BESS project.

What size battery energy storage system did QESSF propose for the IESO LT2 C1 bid?

The proposal contemplates an indicative BESS size of approximately 90 MWh.

Where is the proposed Cordelia BESS project site located for QESSF's LT2 proposal?

The proposed site is adjacent to an existing Festival Hydro substation in Ontario under a site agreement.

Does QESSF have a guaranteed contract or revenue from the IESO LT2 submission?

No; the company states no contract award, revenue, or commercial operation is assured and advancement is contingent on selection and approvals.

What are the next steps after QESSF submitted the LT2 Capacity Stream proposal?

The proposal awaits the IESO's confidential evaluation followed by execution of definitive agreements and required regulatory approvals if selected.

How does the IESO LT2 process affect QESSF's Cordelia BESS proposal timeline?

Progress depends on the IESO procurement timetable and outcomes; selection and approvals are required before development proceeds.