TekModo Provides Operational Update

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 10, 2017) - TekModo Industries Inc. (TSX VENTURE:TEK) ("TekModo" or the "Company") is pleased to provide the following operational update.

Large Laminator

At year end, the Company experienced an unexpected manufacturing equipment failure of its large laminator which resulted in substantially reduced sales and cash flow for the months of January and February 2017. The equipment was repaired and resumed operations in March 2017, with full production coming on in April 2017. Sales and cashflow were impacted in March and April as the business ramped up production.

The large laminator is important to the TekModo business as it produces the unique-to-market Fortis composite substrate (secondary layer). Fortis is a design-engineered composite substrate designed to replace luan (plywood) panels for a smooth, seamless sidewall that improves optics and reduces weight. Fortis panels are available in any length and in widths greater than eight feet. Fortis composites are currently incorporated into several lines of RVs and commercial buses throughout North America and China. The Fortis product line is offered in coils, large panels, or cut to size sheets. Additionally, Fortis serves as a substrate for RV OEM manufacturers to adhere to their exterior skins. The Fortis product line remains alone in the industry as the only continuous, seamless composite substrate system.

TekModo has upgraded and optimized the large laminator during the recent downtime, resulting in improved product quality, tighter tolerances and increased throughput speed. TekModo's clients have commented on the increased quality of the materials that are being produced.

GRP Line

TekModo commenced pre-production trials of lightweight, high gloss Spectralite™ from the GRP gel coat manufacturing line on April 24, 2017. Spectralite™ is a high-gloss seamless exterior wall panel with automotive-grade surface optics, significant weight reduction and increased durability.

TekModo will be conducting production runs designed to optimize the system parameters, processing conditions and product performance over the coming weeks. Client evaluations are expected to begin in June, which, if successful and orders are received, will result in commercialization in August 2017.

If product testing is successful, TekModo will integrate Spectralite™ with the Company's proprietary Fortis substrate in order to provide the most advanced seamless sidewall skin system in the marketplace.

Other Product Lines

Roll Coater

TekModo operates a continuous 10' wide roll coater, which remains extremely unique to the market. The roll coater allows for the continuous lightweight Fortis composite substrate to be bonded directly to client-provided FRP exterior skins to produce one-piece, composite sidewall, roof, and/or front wraps and rear walls. TekModo stands alone in the market place as the only company able to provide this unique to market solution. Market demand continues to remain strong and new customers and new opportunities continue to present themselves regularly.

Shear Line

A new 125" wide automated shear has been delivered and is being installed. This line will allow for the rapid production of sheets/or panels from coil stock. The shear has been designed to cut to size the vast array of composite materials produced, distributed, and processed by TekModo.

Lightweight Foam Panel Systems

TekModo has recently introduced an industry-first, design-engineered, lightweight polymer panel system. These panels serve as a direct replacement for plywood, adhesively laminated structures, and/or honeycomb composites. Targeted applications include roof, wall, slide-out floor, and main floor systems. Target markets include Commercial Vehicles, Marine, and RV applications. A wide array of surface options, panel thicknesses, and core densities will be offered to meet client-specific applications.

Benefits of this polymer panel system are:

• 10' width capability
• Seamless system construct
• Ubiquitous screw retention
• Extreme chemical, and moisture resistance
• Extreme weight reduction possibilities
• Extreme durability and environmental resiliency
• Decorative surface options available

Limited commercial programs have been initiated as part of a strategic rollout.

Activated Carbon

TekModo announced the delivery of its first shipment of distributed, pelletized activated carbon on December 8, 2016. Since then, two additional orders have been delivered. There are currently no additional orders for activated carbon.

On Behalf of the Board of TekModo Industries Inc.

Jacob Vogel, Executive Chairman

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Notes Regarding Forward-looking Statements

This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "will", "intends", "is expected to" and variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information the use of proceeds associated with the loans or the Rights Offering. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.