Mr. Michel Letellier reports

INNERGEX REPORTS FIRST QUARTER 2013 RESULTS

Innergex Renewable Energy Inc. has released its operating and financial results for the first quarter ended March 31, 2013.

"Innergex continues to benefit from well-executed project development and strategic acquisitions that expand and diversify our operations, reducing risks and improving cash flows," declares Michel Letellier, president and chief executive officer of the corporation. "We remain focused on optimizing operating efficiencies, advancing projects under construction and under permit phase on time and on budget, and closing previously announced acquisitions," adds Mr. Letellier.

                               OPERATING RESULTS
      (amounts shown are in thousands of dollars except as noted otherwise)
                                                               
                                                 For the periods ended March 31,
                                                             2013          2012 
                                                                    Restated (3)
                                                                          
Power generated (MWh)                                     386,171        319,341
Long-term average (MWh)                                   461,529        394,532
Operating revenues                                       $ 35,688       $ 28,069
Adjusted EBITDA (1)                                        25,403         18,289
Net (loss) earnings                                          (178)         7,805
Net earnings per share (2)                                   0.01           0.10

(1) Adjusted EBITDA is defined as operating revenues less operating expenses, general and
    administrative expenses, and prospective project expenses.
(2) Net earnings (loss) per share are calculated as net earnings (loss) attributable to
    owners of the parent, less dividends declared on preferred shares, divided by the
    weighted average number of common shares outstanding.
(3) Two thousand results have been restated to reflect the application of international
    financial reporting standard 11.

First-quarter results

For the three-month period ended March 31, 2013, electricity production reached 386.2 gigawatt-hours, or 84 per cent of the long-term average, compared with 81 per cent in the corresponding quarter last year. Low water flows in British Columbia and in the United States were partly offset by better-than-anticipated water flows in Quebec and Ontario. Wind conditions were slightly lower than anticipated at all the wind farms except Carleton. The Stardale solar farm produced 6 per cent less than its long-term average due to the unusually large snowfalls followed by the extreme cold weather in January, which slowed down the removal of snow on the solar panels.

Operating revenues increased by 27 per cent for the quarter, due mainly to the contribution of the Stardale solar farm (which began commercial operations in May, 2012), additional capacity of the Gros-Morne wind farm (which began commercial operations in November, 2012), and the acquisition of the Brown Lake and Miller Creek hydroelectric facilities (which closed in October, 2012). Adjusted earnings before interest, taxes, depreciation and amortization increased by 39 per cent, mainly as a result of higher operating revenues, and relatively stable operating, general and administrative expenses.

For the first quarter of 2013, the corporation recorded a net loss of $200,000, compared with net earnings of $7.8-million in the corresponding quarter last year, due mainly to a much higher unrealized net gain on derivative financial instruments recorded in the first quarter of 2012. Excluding the unrealized net gain and the related deferred provision for income taxes, the loss would have been $5.0-million, compared with a loss of $17.5-million in 2012.

Cash flows from operating activities

For the first quarter of 2013, cash flows generated by operating activities totalled $12.2-million, compared with $9.4-million in 2012. Higher adjusted EBITDA and other net revenues were partly offset by a negative variation in non-cash operating working capital items.

New international financial reporting standards rules impacting results presentation

The application of IFRS 11 has changed the classification and subsequent accounting of the corporation's investments in Umbata Falls and Viger Denonville. These facilities were classified as jointly controlled entities under the previous standard and were accounted for using the proportionate consolidation method; under IFRS 11, they are treated as joint ventures, and the corporation's interests in these facilities are required to be accounted for using the equity method.

These changes have taken effect as of Jan. 1, 2013. As a result, all comparative figures for the year ended Dec. 31, 2012, were restated to reflect the presentation changes arising from application of IFRS 11.

Development projects

Kwoiek Creek hydroelectric facility

The construction of this facility began in the last quarter of 2011. During the first quarter of 2013, the clearing for the transmission line was completed, and 90 per cent of the poles were installed. The intake construction and penstock installation were still under way. Current activities also include assembly and installation of the turbines and generators, as well as work on the plant's electrical equipment. Construction of this 49.9-megawatt facility is progressing as scheduled and budgeted, and is expected to be completed in the last quarter of 2013.

Northwest Stave River hydroelectric facility

The construction of this facility began in the last quarter of 2011. As planned, construction activities were halted for the winter period and resumed at the end of March, 2013. The fish habitat compensation channel and civil engineering work at the powerhouse have been completed, and the powerhouse superstructure is nearly complete. Current activities include penstock installation, as well as intake and switchyard construction. Construction of this 17.5-megawatt facility is progressing as scheduled and budgeted, and is expected to be completed in the last quarter of 2013.

Viger-Denonville wind farm

Construction activities began in the first quarter of 2013, and currently include wood clearing, road construction and concrete pouring of the substation foundation. In April, 2013, the Riviere-du-Loup regional county municipality and Innergex executed a term sheet for the construction and long-term non-recourse project financing of the wind farm. The partners expect the financing to close during the summer of 2013. Construction of this 24.6-megawatt facility is progressing as scheduled and budgeted, and is expected to be completed in the last quarter of 2013.

Boulder Creek, North Creek and Upper Lillooet hydroelectric facilities

In January, 2013, an important milestone was reached when these projects received their environmental assessment certificate from the province of British Columbia. Following receipt of the proposals from civil works contractors, and the corporation's decision to increase the installed capacity of the Upper Lillooet project and of the Boulder Creek project, a request for new pricing was made to some civil works contractors. The decision regarding the selection of turbine generator suppliers is pending. A limited notice to proceed was issued to the transmission line contractor to move forward with the detailed design and survey layout of the transmission line. Current activities include continuing consultation with stakeholders and applications for obtaining the relevant permits.

Discussions are continuing with BC Hydro to obtain its consent to amend the power purchasing agreements to increase the installed capacity of the Boulder Creek and Upper Lillooet projects, and to cancel the current version of the North Creek project. Construction of the 25.3-megawatt Boulder Creek facility is expected to start in 2013, and the project is expected to reach commercial operation in 2015. Construction of the 81.4-megawatt Upper Lillooet facility is expected to start in 2013, and the project is expected to reach commercial operation in 2016.

Tretheway Creek hydroelectric facility

The corporation is evaluating the proposals from civil works contractors, turbine and generator suppliers, and transmission line contractors. Current activities also include hydrometric monitoring, environmental studies, consultation with the various stakeholders and applications for obtaining the relevant permits. Discussions are continuing with BC Hydro to obtain the authorization to increase the installed capacity. The corporation is moving ahead with some aspects of the design and geotechnical studies. Construction of this 23.2-megawatt facility is expected to start in 2013, and the project is expected to reach commercial operation in 2015.

Big Silver Creek hydroelectric facility

Proposals from civil works contractors, turbine and generator suppliers, and transmission line contractors have been received, and the corporation is currently evaluating these proposals. Current activities also include hydrometric monitoring, consultation with the various stakeholders and applications for obtaining the relevant permits. Construction of this 40.6-megawatt facility is expected to start in 2013, and the project is expected to reach commercial operation in 2016.

Dividends declared

Dividends to preferred shareholders

On May 14, 2013, the corporation declared a dividend of 31.25 cents per Series A preferred share payable on July 15, 2013, to Series A preferred shareholders of record at the close of business on June 28, 2013.

On May 14, 2013, the corporation declared a dividend of 35.9375 cents per Series C preferred share payable on July 15, 2013, to Series C preferred shareholders of record at the close of business on June 28, 2013.

Dividends to common shareholders

On May 14, 2013, the corporation declared a dividend of 14.50 cents per common share payable on July 15, 2013, to common shareholders of record at the close of business on June 28, 2013.

Conference call reminder

The corporation will hold a conference call tomorrow, Wednesday, May 15, 2013, at 10 a.m. EDT. The first-quarter results will be presented by Michel Letellier, president and chief executive officer of Innergex, and by Jean Trudel, chief investment officer and senior vice-president, communications. Investors and financial analysts are invited to access the conference call by dialling 647-427-7450 or 1-888-231-8191. Media and the public may also access this conference call on a listen-only mode. A replay of the conference call will be available later the same day on the corporation's website.

We seek Safe Harbor.