Sunvault Energy Inc.
PINKSHEETS : SVLT

Sunvault Energy Inc.

July 21, 2014 11:30 ET

Sunvault Energy President's Message - July 21th, 2014

KELOWNA, BRITISH COLUMBIA--(Marketwired - July 21, 2014) -

To the Shareholders of Sunvault Energy;

Over the past number of months Sunvault Energy has been extremely active on a number of fronts. Since joining as CEO and President this January, the company has undertaken a number of initiatives, but none more prevalent than creating a solid foundation from which the company can operate and continue to gain success from.

It is true that the Sunvault Energy technology is significant, but these days and in these markets a solid technology vision is simply not enough. In the purest sense, it would be wonderful to simply develop our technology and not be involved in additional activities; however reality and honesty is always an excellent starting position. What makes a successful company in my opinion for investors, shareholders and stakeholders is revenue re-occurring in non cyclical businesses that have growth potential. So to that end, Sunvault began acquiring opportunities with the purpose of creating a solid base of operations from which our technology could be developed from, but not entirely relied upon, during its development as the only choice for revenue to be created.

In March 2014, Sunvault acquired 50% of CleanGen Inc. an Edmonton based company with a number of operating entities. These include Cutting Edge Tire Recycling LP, CleanGen Power Corp, Coole Immersive Inc., and CleanGen Aboriginal HR services. The Company in looking at the balance sheet of Cutting Edge and realizing how much was spent on transportation acquired Eco-West Transport and the assets of Werkman Transport, turning these expense line items into profit producing items for the company. Shortly after the CleanGen acquisition the company expanded its ownership to a majority position of 56%. The Company has recently finalized the purchase of the remaining 44% of CleanGen Inc. common shares.

Since January 2014, the companies acquired by Sunvault have earned estimated gross revenues (unaudited) of $3,335,562. The first two quarters have been historically the slowest for the companies and revenue is expected to rise for the rest of the year. The company strategy of building its non cyclical revenue stream from which to secure its foundation and strengthen its operations is in full swing.

The Company is also currently working on an acquisition project that will see Electrical Power production from Natural Gas Wells. Internal Gas production will be used as a hedge against power purchases and production, turning one revenue opportunity for gas sales into a higher valued revenue source at various peak electrical power demand times (electricity sales). We expect it will take about two quarters to get this business fully up and running.

The Company is partly owed by First Nation and Aboriginal groups so pursuing relationships with First Nations and other Aboriginal groups for business development opportunities is a natural fit and can create a win / win for both sides. It has been estimated that over the next decade, more than 600 major resource projects worth approximately $650 billion, are planned for Canada.

Sunvault Energy is playing a role is this developing market and has entered into a joint development agreement with Aboriginal Power Inc. to act as an incubating company for Sunvault Energy Inc. The role of Aboriginal Power Inc. is to seek out opportunities, move opportunities to fruition and while developing the opportunity to a more senior level, including all the heavy lifting of the audits required and the packaging that allows the company to easily accept these opportunities within the publicly trading entity of Sunvault Energy Inc., (SVLT)

The Company realizes that an incubation company is necessary as it has had some delays due to audits over the large CleanGen acquisition and that has lead to the company not being able to file the Super 8K and 10Q within the desired timeframe. The struggle comes to bear simply in the form of going through the auditing process, through each operating company to conclusion. The company is working diligently and has engaged several expert firms to assist so the audits required can come to a conclusion in a relatively shorter time frame.

The Company has also come to the conclusion that one of the operating companies, Coole Immersive Inc., a software company, does not fit into the companies' immediate growth plans and has entered into an agreement for the sale of the CleanGen Inc. interest in this company, has been approved by the board approval and awaiting closing due diligence. Sunvault has kept the ability to be able to utilize this software technology for its own internal training purposes at cost of development only.

As the company continues to develop its significant technology, our activities have been deliberate. To create a solid foundation from which to operate from, build strength in the form of revenue creation, to maximize the efficiencies and operating capabilities within the various operating entities and to continue to look for growth opportunities that will benefit our shareholders.

We are on an exciting track, there have been bumps, but once the current audit is behind us, looking at incubating opportunities as they occur and envelop into Sunvault at predetermined timelines will accelerate our success.

Best,

Gary Monaghan, President & CEO

Sunvault Energy Inc.

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