/NOT FOR DISTRIBUTION TO UNITED STATES OF AMERICA WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES OF AMERICA/

TORONTO, May 17, 2022 /CNW/ - Intercap Equity Inc. ("Intercap") and its joint actors have purchased 1,125,000 common shares in E Automotive Inc. d/b/a E INC. ("E INC.") (TSX: EINC). This press release is being disseminated as required by National Instrument 62–103 – The Early Warning System and Related Take Over Bids and Insider Reporting Issuers in connection with the filing of an early warning report (the "Early Warning Report").

On May 16, 2022, Intercap purchased 1,125,000 common shares of E INC. The 1,125,000 common shares were acquired at a price of C$8.00 per common share, for total consideration of C$9,000,000. In acquiring the common shares Intercap relied on the exemption from the take-over bid rules contained in Section 4.1 – Take-Over Bids and Issuer Bids.

Prior to the acquisition, Intercap, together with its joint actors, beneficially owned, controlled or directed an aggregate of 30,997,318 common shares, 1,021,240 share purchase warrants and 6,644 deferred share units, representing approximately 64.5% of the outstanding common shares of E INC. on a non-diluted basis and approximately 65.2% on a partially diluted basis, assuming Intercap's exercise of its warrants and vesting of Jason Chapnik's deferred share units.

Following the acquisition, Intercap, together with its joint actors, beneficially owns, controls or directs an aggregate of 32,122,318 common shares, 1,021,240 share purchase warrants and 6,644 deferred share units, representing approximately 66.8% of the outstanding common shares of E INC. on a non-diluted basis and approximately 67.5% on a partially diluted basis, assuming Intercap's exercise of its warrants and vesting of Jason Chapnik's deferred share units.

The equity interests of Intercap are beneficially owned, controlled or directed, directly or indirectly, by Jason Chapnik, Chairman and Chief Executive Officer of Intercap, and accordingly Jason Chapnik is considered to be a joint actor. Intercap may, depending on market or other conditions, increase or decrease its beneficial ownership, control or direction over, or exercise its current rights to acquire, common shares through market transactions, private agreements or otherwise.

Intercap's head office is located at 261 Davenport Road, Suite 200, Toronto, Ontario, M5R 1K3. E INC.'s head office is located at 10 Lower Spadina Avenue, Suite 400 and Suite 500, Toronto, Ontario, M5V 2Z2.

An early warning report will be electronically filed by Intercap with the applicable securities commission in each jurisdiction where E INC. is reporting and will be available on SEDAR at www.SEDAR.com.

SOURCE Intercap Equity Inc.

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