Page 1

Lion logo EN NEWS RELEASE Lion Electric Announces Second Quarter 2021 Results 8/13/2021 MONTREAL , Aug. 13 , 2021 / CNW Telbec / - The Lion Electric Company ( NYSE : LEV ) ( TSX : LEV ) ( " Lion " or the " Company " ) , a leading manufacturer of all - electric medium and heavy - duty urban vehicles , today announced its financial and operating results for the second quarter of fiscal year 2021 , which ended on June 30 , 2021. Lion reports in U.S. dollars and in accordance with IFRS . Q2 2021 HIGHLIGHTS Delivery of 61 vehicles , a significant increase , as compared to the 22 delivered in the same period last year . Revenue of $ 16.7 million , up $ 10.6 million , as compared to $ 6.1 million in Q2 2020 . • Gross profit of $ 0.9 million , down $ 0.1 million , as compared to $ 1.0 million in Q2 2020 . Administrative expenses of $ 50.0 million , up $ 48.9 million as compared to $ 1.1 million in Q2 2020 , primarily as a result of significant increase in non - cash share - based compensation of $ 44.5 million , an increase in expenses reflecting Lion's transition to being a public company , and the expansion of Lion's head office capabilities in anticipation of an expected increase in business . Selling expenses of $ 13.3 million , up $ 12.5 million , as compared to $ 0.9 million in Q2 2020 , primarily as a result of significant increase in non - cash share - based compensation of $ 10.0 million , the expansion of Lion's salesforce , as well as an increase in expenses associated with Lion's Experience Centers . • Net Loss of $ 178.5 million in Q2 2021 as compared to a net loss of $ 1.3 million in Q2 2020. The net loss for Q2 2021 includes $ 167.7 million related to non - cash share - based compensation , non - cash increase in the fair value of share warrant obligations , and transaction costs . Adjusted EBITDA1 of negative $ 5.5 million , as compared to negative $ 0.1 million in Q2 2020 , after adjusting for certain non - cash and non - recurring items such as change in fair value of share warrant obligations , share based compensation , transaction costs and other non - recurring expenses . Acquisition of intangible assets , which mainly consist of R & D activities , amounted to $ 10.7 million , up $ 8.2 million , as compared to $ 2.5 million in Q2 2020 . • At June 30 , 2021 , Lion had $ 364.3 million in cash , with an additional borrowing capacity of up to $ 100 million ● ● ● ● ● ● 1